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Why Futuristic, Tech-Centered ‘Smart City’ Projects Are Destined To Fail

by Yves Smith
February 7, 2026
in Finance
Reading Time: 5 mins read
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Yves right here. The sensible metropolis vogue has been underneath means for some time. A few of this displays a perception that new have to be higher. Others appear to outcome from tech bro pet visions that always unwittingly expose their libertarian, laptop/surveillance bent. This text takes an unsparing take a look at a few of these experiments and discover there’s a lot to not like.

By Pascual Berrone, Head of Strategic Administration Division and Chair of Sustainability and Enterprise Technique, IESE Enterprise Faculty (Universidad de Navarra). Initially revealed at The Dialog

For residents of European cities – with their snarled site visitors, draughty outdated buildings, creaking public companies and gray winters – it’s straightforward to see the attraction of shifting to a brand-new, high-tech metropolis.

Enter Dunia Cyber Metropolis, a brand new particular financial zone in Zanzibar aimed toward attracting tech staff (actual and digital) and firms with its low taxes. Backed by former Apple govt Florian Fournier and the Zanzibar authorities, the proposed growth is impressed by so-called community states – autonomous, digitally crowdfunded micronations or metropolis states – and is supposed to deliver collectively like-minded people to give attention to technological experimentation and cryptocurrency.

Saudi Arabia, in the meantime, has just lately scaled again its personal huge and controversial experiment in sensible cities. The Line was envisioned as a metropolis for as much as 9 million individuals stretching in a straight, 170-kilometre line throughout the desert and mountains.

The Line idea. NEOM

Whereas these initiatives, and comparable previous makes an attempt equivalent to South Korea’s Songdo, differ in scale and ambition, one of many parts that hyperlinks them is the conviction that deploying know-how – the extra the higher – is the important thing to the cities of the longer term.

This isn’t a minor problem, because the world’s cities are its future – 55% of the worldwide inhabitants at the moment lives in a metropolis, a determine anticipated to develop to 68% by 2050.

City centres account for a rising portion of worldwide GDP and are drivers of innovation and creativity. However they’re additionally suffering from quality-of-life issues associated to crime, air pollution and revenue inequality, and a scarcity of social cohesion. World points equivalent to local weather change and migration – each inside and worldwide – additionally loom massive.

For some policymakers, turning to know-how and changing their cities into “sensible cities” can clear up their issues. However expertise and analysis present that this strategy is something however a common resolution.

What Is a Sensible Metropolis?

One of many issues surrounding sensible cities is that the idea is obscure and ill-defined. The record of the world’s cities that contemplate themselves sensible – from San Diego to Tel Aviv, Kochi and Bogota – is a testomony to how assorted the designation is.

A extra unified definition, one constructed round accountable governance quite than cutting-edge know-how, could be helpful. Frontier sensible metropolis initiatives like Dunia and The Line have failed on elementary governance points equivalent to legitimacy, inclusion, accountability, rights and long-term supply.

Tech Does Not Equal Liveability

In calculating our yearly Cities in Movement Index (CIMI) of sustainable and habitable cities, we’ve got discovered that cities with excessive scores in know-how don’t essentially carry out nicely in different areas, or within the total rating.

The CIMI ranks almost 200 world cities on 9 standards, together with know-how. For the know-how rating, we measure components equivalent to share of the inhabitants lined by 4G and 5G networks, households with web entry, and the variety of cell phones per 100 inhabitants.

Within the 2025 CIMI, it’s fascinating to notice that not one of the prime 5 in know-how – Hong Kong, Dubai, Singapore, Abu Dhabi and Seoul – appeared within the prime 5 of the general rating. Actually, they had been just about absent from the main cities in all the opposite eight dimensions: human capital, social cohesion, financial system, governance, atmosphere, mobility and transportation, city planning and worldwide profile, and even financial system.

For the general rating, the highest 5 had been London, New York, Paris, Tokyo and Berlin. Sure, these are cities with snarled site visitors and draughty buildings, however they’re additionally residence to numerous world expertise, cultural establishments and relative political stability. One other cluster of cities – locations equivalent to Amsterdam, Copenhagen and Zurich – not solely rank nicely total but in addition present a balanced strategy among the many completely different city dimensions.

Sensible Governance, Not Sensible Cities

Clearly, know-how will not be sufficient to make a metropolis habitable or sustainable. Our analysis has proven that as an alternative of specializing in sensible cities, the main focus ought to be on sensible governance. This requires:

  1. Strategic considering. Holistic, long-term insurance policies which incorporate components equivalent to sustainability and social cohesion. An goal analysis of a metropolis’s actual weaknesses is important earlier than leaping into marketing-friendly sensible metropolis initiatives.
  2. Seeing past know-how. Expertise is a method and never an finish. Sensible buildings, for instance, have little influence if the whole lot round them is decidedly unsmart. Entry have to be broad, and geared towards drawback fixing.
  3. Artistic native strategy. Every metropolis is exclusive and there are few one-size-fits-all solutions. Importing planning options from, say, the US could not work in different contexts. Policymakers mustn’t simply be taught finest practices from different cities – in addition they must adapt them to their very own actuality.
  4. Collaboration. It takes a village to make a metropolis. Stakeholder cooperation is essential. Public-private partnerships may be notably efficient in getting issues executed in cities, and may also assist to interrupt siloed mentalities that fail to answer residents’ wants.
  5. Folks-centred mindset. Each resolution should clear up an actual drawback that residents are dealing with, providing them worth. If not, initiatives could fall flat and create backlash towards change.
  6. Improvements to resolve the massive challenges. Policymakers might want to contemplate the most important challenges the world is dealing with, from local weather change to migration, and plan for the way it will influence their metropolis. These world points have native influence to various levels.

The benefit of sensible governance is that it fosters sustainable financial, social and environmental growth in a means that different governance approaches fail to do.

Dunia Cyber Metropolis and The Line promise technological utopias, however the world’s most habitable cities weren’t designed on clean canvases by tech visionaries. They advanced by a long time of messy, incremental governance that put individuals first. That’s the blueprint to be taught from.

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