2. Institutional frameworks: an enabling condition for smart cities

Institutional maturity is key for the development of smart cities. It requires governance frameworks that are designed to promote the incorporation, use and management of technology by government institutions, companies and citizens. In order for this to be achieved, among other factors, an entity that can do the following is required to lead the process: (i) manage policies, standards and regulations; (ii) provide ongoing training to civil servants, so that they remain up-to-date on the latest technology, get the most out of technology trends and are able to implement them in a timely manner; (iii) coordinate with national digital policies in order to harmonize procedures; (iv) encourage the private sector to become an ally in developing solutions and (v) remain in constant contact with citizens and the private sector, through consultation, participation and cooperation mechanisms (Cabello, 2022).

Digital institutional frameworks have advanced in some cities in the region. In Buenos Aires, São Paulo, Mexico City and Bogotá, there is a one-stop agency or body that leads, designs and controls the implementation of technology solutions, defining the guidelines that orient development and monitoring. Among other features in common, these cities all have a smart city development policy, and, to a greater or lesser degree, all promote digital fluency for civil servants and citizen coordination mechanisms. Coordination with the national digital agenda and work with the private sector need to be strengthened (see table III.5).

Table III.5

Buenos Aires, Mexico City, São Paulo and Bogotá: digital institutional frameworks, 2022

How cities manage digital innovation

Authorities in charge of digital policy and innovation

Smart city development policies

Promoting civil servants’ digital capacity

Coordination with the national agenda

Coordination with the private sector (government technology initiatives)

Coordination with citizens

Buenos Aires Bogotá

Mexico City São Paulo

Source: Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of S. Cabello, “El camino de desarrollo de las ciudades inteligentes: una evaluación de Bogotá, Buenos Aires, Ciudad de México y São Paulo”, Project Documents (LC/TS.2022/86), Santiago, ECLAC, 2022.

Note: Although Buenos Aires has a smart city policy, it is not acknowledged by all relevant institutions. In São Paulo, promoting digital capacity is not a priority, nor is it monitored; coordination with citizens is limited.

To become smart, cities need a strategic plan that aligns with their development goals and is not simply based on implementing isolated technologies. Similarly, a systemic approach to project execution is key (with clearly defined decisions, milestones and responsibilities), as this enables optimized project execution and ensures that projects are aligned with the city’s goals. In Buenos Aires, São Paulo, Mexico City and Bogotá, there are normative frameworks that assign concrete tasks to the different departments of digital and innovation agencies, although there is no standardized template for project execution.

The main institutional challenges that cities face relate to budgets and to innovative projects being given low priority because of the risk they entail. The regulatory barriers relate to standards that have not been updated and to the lack of guidelines for innovation. There are also deficits in building the technical capacity of civil servants and in the governance models for project implementation. Lastly, obstacles also arise in transitions from one management approach to another when a new government is elected, mainly because processes are not systematized, which leads to a loss of institutional memory and knowledge.