Urban development remains one of the most pressing issues faced by both the Global North and South. According to UN Habitat, 96,000 new affordable housing units must be constructed per day to provide adequate housing for up to 3 billion people by 2030, currently without it. This target may seem daunting; however, it is one that must be accomplished to fulfil the United Nations Sustainable Development Goals (SDGs).

Yet the future of urban development cannot be solved without the application of systems thinking. Systems thinking involves a holistic approach to problem solving, by analysing all the components of a given structure that may influence the problem and deriving root causes, thus offering durable, long-term solutions.  The importance of systems thinking in developing solutions for the future of urban development was the topic of the Global Academy for Future Governance’s latest event, which involved a number of notable expert problem solvers including: former Chair of the African Union Commission, Moussa Faki Mahamat; Intl Rector of the President University Dr. Ing. John Scott Younger; Co-Founder and Vice-President of the World Creativity Organisation, Edna dos Santos-Duisenberg and the former UNCTAD Creative Industries head and its originator; Professor of architecture, Dr. Ian Banerjee as well as co-founders of Mission Future, Dr. Hubertus and Yvonne Hoffman, with the current Secretary General of the Organisation of American States, Albert Ramdin being invited too.

The Multifaceted Nature of Urban areas

Cities are considered some of the primary drivers behind economic, social and political development. Throughout history - stretching from the great centers of antiquity such as Babylon, Athens and Rome to modern-day metropolises like New York City, Tokyo and London - urban areas have served as locations attracting innovators, thinkers and entrepreneurs. Therefore, it is not surprising that historically urbanisation has been associated with increased economic prosperity. Indeed, with the onset of the industrial revolution what can be described as a second urban revolution occurred, with a fundamental shift toward urban living across the world.

In 2025, the World Bank reported that approximately 4 billion people lived in urban areas, the highest number ever recorded. These numbers can be considered a reflection of high intensity growth, specifically across the Global South. A discussion on the importance of cities as engines of growth was introduced by Moussa Faki Mahamat, and offered substantial insight into the role of urbanisation in pan-African development.

Despite bringing a multitude of benefits, urban development holds risks. The experience of urbanisation across the world has demonstrated that without proper management cities can become centers for disease and pollution. Furthermore, the stratification of cities can contribute to a rise in criminal activity and political violence. Unchecked, this can lead to a legacy of violence stunting local development. Finally, a lack of opportunities for self-expression and education can lead to an epidemic of substance abuse.

Perhaps the most pressing question in contemporary urban development, however, is a lack of affordable housing. Concerns about affordable housing have emerged in part to avoid historical errors. Initial urban growth in Europe, for example, was driven by free market dynamics accommodating for increased internal migration, with little oversight from municipal administrations. This led to the rise of irregular, low-quality housing, which was built without regard for social or ecological impact. Unfortunately, this tendency has been replicated across the Global South, making the provision of regular, affordable housing vital to avoid the further growth of irregular housing.

Areas in the Global North have remedied the lack of affordable housing through social housing initiatives. However, they have been unable to accommodate increased demand from a growing population, leaving younger generations with greater difficulty when acquiring housing. Meanwhile, building new housing has become difficult due to administrative barriers and local concerns. Therefore, urban planners across the world are faced with the need for innovative solutions for the provision of affordable housing.

Systems Thinking and Urban Development

By applying systems thinking to urban development, decision makers recognise the complex nature of urban areas as political and social constructs (eg. Selection of particular neighborhood that cumulatively impacts broader economic and political developments). The following logic even applies to what are often considered politically neutral decisions- such as the architectural style applied to new housing units- as the style applied can have significant impacts on the self-perception of citizens, as well as the cities culture.

Therefore, by treating cities as living organisms which are defined by their various component parts, as well as influenced by national and global trends, specific problems can be addressed comprehensively, rather than superficially. This idea was specifically brought up by Chancellor Dr. Scott Younger, who accentuated the importance of a holistic approach in modern urban development. Particularly, the building of new social housing initiatives without accompanying expansions in green areas, as well as improved access to healthcare, wouldn’t be a durable solution as the quality of new housing would likely be insufficient to break generational poverty cycles. Therefore, improvements in urban living conditions aren’t merely a process guided by technocratic reforms, but ones that require constant communication between citizens and local administrations. As cities grow larger, with an increasing number of “mega-cities” with upward of 10 million residents, creating spaces for such interactions becomes increasingly different.

One potential interlocutor between citizens and urban administrations can be the creative industry. The creative industry, as pointed out by Director Edna dos Santos-Duissenberg occupies a unique niche within urban spaces by providing an avenue for self-expression. Thus, through participation in the creative industry, residents can express their opinions on community issues in a peaceful and subtle way. However, the importance of the creative industry stretches beyond its role in enhancing political participation. It is further an important element in ensuring citizens health, by serving to relieve stress, build community ties and develop alternatives to non-socially beneficial activities such as substance abuse. Initiatives, such as World Creative Day, and companies like the World Creativity Organization, are an important node in giving visibility and organising creative industry workers especially across the global south, making their work vital toward the future of urban development.

Creativity, in general, is a skill that is vital for the proper applications of systems-thinking as illustrated by Dr. Ian Banerjee. His research has particularly focused on how urban planners can re-design spaces to create a better living environment. Architects in Tirana, for example, re-designed a pyramidal structure previously associated with the authoritarian regime into an educational space and meeting place for start-ups. In this way, a building previously used unproductively and heavily associated with historical trauma was re-conceptualized as a symbol of Tirana’s broader urban renewal. Therefore, buildings aren’t merely living spaces, but often carry deeper symbolism that helps frame the reputation of a city, and the ways in which residents conceive themselves.

Two other concrete case studies in the application of systems thinking toward issues associated with urban development were brought up by Dr. Hubertus Hoffman and Yvonne Hoffman: Vienna and Singapore. Both Singapore and Vienna implemented wide-ranging social housing initiatives, however their approach differed significantly. Vienna, being governed by a socialist municipal government, undertook a state-driven approach to urban development which aimed to limit the role of private operators. This approach proved successful in Vienna due to a broad political alignment between the municipal administration and the citizens. As a result, Vienna is a global leader in the amount of housing owned by the municipal administration, with at least 200,000 housing units being provided as a form of public housing. Singapore followed a different approach. The government created a separate institution for the construction of housing, known as the Housing and Development Board (HDB), which engaged in the construction of new affordable housing. However, unlike social housing initiatives in Vienna, the HDB continued to act within the framework of the market.  

Toward systems thinking

As useful as systems thinking is when approaching problems in contemporary urban development, its utilization can support both private and public leaders across business sectors. The event organized by the Global Academy for Future Governance focused on urban development as an illustration of a practical use-case of systems thinking in problem solving for a contemporary issue.

Yet, despite the widely accepted general benefits of a systems thinking approach, many organizations find it difficult to implement. For one, a proper application of systems thinking often requires problem solvers to utilize inter-disciplinary approaches to synthesize a methodology rooted in engineering with problems typically explored by social scientists. Additionally, it can be difficult to zoom out from a person’s own perspective, shaped by ideological beliefs, background and personal desires, to provide an unbiased analysis of structural faults. Most importantly, when faced with urgent problems providing a holistic overview can be time consuming and exhausting.  

As a truly global advisory, the Global Academy for Future Governance can offer significant support to leaders looking to apply systems thinking to find solutions. The Global Academy has a track record as a reliable and neutral partner, which has remained independent of global political developments. Additionally, and perhaps most importantly, the Global Academy can rely on a network of its global partners who provide fast-paced deployment, tailored to organizational needs. The ability of the GAFG to support in the integration of a systems thinking approach the public and corporate sector partners is attested to by the active discussions held by the speakers.

Whether leaders choose to move independently, or with the help of external support, applying systems thinking may prove to be one of the greatest factors behind durable success in the current geo-economic climate. As issues lose their localized character, and become increasingly complex, finding solutions must be based on tackling systems holistically. The Global Academy for Future Governance looks forward to exploring this topic further in our next event on Litigation and International Arbitration in the age of AI, held on 26 March.

Annelie Marchsteiner is an EU Junior Ambassador and active EYP Austria member dedicated to strengthening international relations and democratic dialogue, focusing her advocacy on the intersection of European cooperation and structural social reform.

Dmitriy Genchev is an Information Officer at the Global Academy for Future Governance (GAFG) and an active contributor to a number of policy think tanks. His research focuses on the political economy of the Balkan region, geo-politics in the Greater Horn of Africa and EU energy policy.