It's Time For The Cities To Restructure

Many Americans believe the cities need a helping hand. We agree. There are many federal initiatives that could carry a big economic payoff: an expanded Head Start program, welfare reform, and an increased income tax credit for the working poor. But to maintain political support for help to the cities, municipal governments are going to have to face the fact that they are perceived as unwieldy and inefficient. The blunt truth is that city governments in the 1990s, like corporations in the 1980s, need to restructure. Cut back on sclerotic bureaucracies. Streamline operations. Build accounting and information systems that show where and how taxpayer money is being spent. Free municipal employees from layers of stifling management. The potential payoff: Businesses will be more willing to invest in the cities, given a more dependable quality of urban life.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.