Why London Works

Business + London

In a recent column Ken Livingstone, the London Mayor, argued that London has now overtaken New York as the world's greatest centre of commerce. Before that, the extreme theory that the free market would solve all of London's problems had produced crisis after crisis - ranging from inner city riots to a transport system on the verge of collapse.

However, since London regained its own government seven years ago, the city has embarked on upon an entirely different course. Where competition is real and produces result it has the mayor's support. Where it fails and public sector leadership is necessary we have tried to provide that lead. Personally I agree with Ken Livingstone that London is becoming more enjoyable place to live, and the change has been huge in my 4 years here. Though I do question the comment that London has overtaken New York as the place of Commerce.

I think London still has a lot to work on balance within the employment sector. Currently the classifying between nation is massive and foreigners are still "foreigners". Same might be in New York, but still the city has more a "can do" attitude than a pumped up pill head in a rave. London has a pessimistic attitude on new businesses.

London's current success is in the public transport and in the finance sector. Public transport is very safe, efficient, relatively cheap and does give you the ability not to have a car. Result is an open city for pedestrians and not for the drivers. In comparison, LA lives within their cars and sometimes crashes into each others just to feel something. In London you definetely feel. On the other hand, massive finance sector produces massive profits as well, and this years bonuses are expected to be £14 billion, with 3000 bankers receiving more than £1 million in bonuses. That has a great windfall on the whole London as well.

The bottom line for the reason of London's success is the delicate balance between freedom and control. Up to a certain degree markets are totally free, but the London government will step in to balance to greedy attempts to reap anything of from the Londoners. Hopefully Ken Livingstone's legacy is the understanding of giving it back to the people, and how it will benefit the whole in a long run.