2023-Public-Sector-Perspectives

5. Lifestyle To attract and retain talented and high-quality human capital, a good quality of life is essential. Lifestyle factors are often difficult to quantify but are critically important. Table 5 illustrates the most common factors. Table 5: Most common factors considered for a high quality of life in an IFC Factors What is included Personal welfare • Quality educational institutions, catering for the cultural and language needs of the expatriate communities • Healthcare services • Personal services, e.g., childcare • Security/safety • Quality of municipal services, e.g., libraries, refuse collection Cost of living • Affordability of basic commodities and services • Rent and property ownership • Personal taxation, e.g., income, consumption (VAT, GST) Leisure • Cultural and media, e.g., arts, museums • Historical attractions • Recreational facilities, e.g., malls, hotels and restaurants, green spaces Interaction with environment • Mobility, e.g., traffic, congestion, and commuting • Air quality • Aesthetic and cleanliness of urban environment • Local culture and openness All the above factors are important to varying degrees for a successful IFC. No IFC contains all the above in equal measure. However, a good mix of factors separates elite centers from others. It is interesting to note that despite the view of many officials, low taxes do not principally determine the success of an IFC , although they certainly play a role in helping to develop an IFC. New York and London, the two most important IFCs, have some of the highest marginal tax rates in the world, and have had these high marginal rates for decades. In addition, workers from the two largest economies in the world, the U.S. and China, pay taxes on their global income, so a low personal tax regime is not a primary consideration for citizens from the U.S. and China. Over the past 15 years, the IFC landscape has changed. According to Global Financial Centres Index (GFCI) reports, New York, London, Hong Kong and Singapore have consistently been the world’s top four IFCs given their well-rounded infrastructure and services. 16 What Makes a Successful IFC?