INTRODUCTION >>>

-A bite of the Big Apple-

Unparalleled for shopping, culture and entertainment, New York is the financial centre of America's economy - the money-making capital of the world

Invariably identified with its two most famous landmarks, the Statue of Liberty and the Empire State Building - one representing freedom, the other capitalism - New York epitomises the best the United States has to offer. The high-rise skyline is awesome, the Don't Walk signs grate on the British sense of politesse and the yellow cab drivers speak nothing resembling English. Immortalised in song by Frank Sinatra, the most exuberant metropolis in the US continues to exert its hold on the imagination of Britons and Americans alike.

The affection in which the city is held by New Yorkers has been rekindled in recent years since it has undergone a renaissance under the dynamic, if sometimes controversial, leadership of its mayor, Rudy Giuliani. More than anyone else, Mr Giuliani has redefined what New York means for the world, not merely for Americans. Crime has been reduced by nearly 50 per cent in the past seven years and the business environment has improved immeasurably. The results can be seen throughout all five boroughs, not just in the financial district of downtown Manhattan, although Bronx residents might say they haven't seen as many improvements as the Manhattanites.

Record numbers of tourists are taking a bite into the Big Apple and business travellers are arriving in droves. Even the air that New Yorkers breathe is cleaner than it has been for more than two decades. Data from the US Environmental Protection Agency reveals that the number of days during which air pollution exceeded federal standards has dropped from an average 26.3 days a year in the early 1980s to just five days a year today - an 81 per cent reduction. Fortune magazine says New York is America's top city for business and, for all the attention that Silicon Valley's hi-tech whiz kids have received, San Jose comes in fifth on its list.

The biggest stock market is in New York, trading more than a quarter of the world's shares. There are also some 380 international banks, representing almost every nation there is, plus most of America's major accounting firms, the largest US-based consultancies, and the world's biggest advertising and marketing agencies. New York is also the country's corporate headquarters, home to more leading US firms than any other city. Hi-tech firms have created new employment - new media-related jobs, for example, have tripled since 1995. With 12,000 industrial firms employing more than 250,000 workers, NYC has the largest concentration of manufacturing in the whole of the US. As style-setters, New Yorkers put their more laid-back West Coast cousins in the shade. The fashion industry generates more than $27 billion in revenue each year, and the catwalk shows gain as much attention on this side of the Atlantic as in the rest of America. In fact, the fashion industry is NYC's largest employer, with some 225,000 workers.

The city has undergone a renaissance under the dynamic
if controversial leadership of Mayor Giuliani

All of the nation's major television networks have their headquarters in New York, and employment in the film and TV production industry has increased at almost twice the rate of that in Los Angeles and the US as a whole. NYC is also the largest book publishing centre in the US. A burgeoning biotechnology and new media industry has sprung up in what has been dubbed Silicon Alley. The number of new media businesses has increased by 75 per cent since 1997. More than 1,700 companies have either relocated to or expanded their operations in New York State. Of those, 82 per cent are based in Manhattan. The new media sector has raised around $6 billion in venture capital and through initial public offerings over the last three years, according to the New York New Media Association. Executive director Alice O'Rourke says the transformation of the city has been a key factor in encouraging companies to open offices there. The primary goal of the New York City Economic Development Corporation (EDC) has been to attract investment.

The city's development arm, the EDC works closely with private business, public agencies and citizens' communities to encourage and facilitate business growth in all five boroughs through its economic incentive programmes. Action taken by the Regional Economic Development Assistance Corporation, the Lower Manhattan Revitalisation Plan and New York City Capital Access have all contributed to this regeneration. The NYC Industrial Development Agency (IDA) has played a key role in improving some of the poorer districts of the city. Through tax exemptions and other incentives, the IDA has managed to retain many of the old-established firms that were considering quitting the city, while encouraging others to start operations. More than 800 trade associations are located in New York, representing and promoting industry and commerce across the board. Every year sees more than 200 conventions and trade shows.

Mayor Giuliani's government has worked to attract new investment by reducing or eliminating more than 20 business taxes and there are numerous other incentives for investors. Measures include discounts on energy bills, low-cost loans, funding for start-up firms in hi-tech industries and financial assistance for equipment purchases. Mr Giuliani's proposals for his final year in office will leave his successor confronting a budget gap of $2.4 billion in 2003 and another $2.4 billion gap in 2004. His critics say that, with hard economic times looming, the city needs a more modest and targeted tax-cut plan which doesn't leave the next mayor with a large deficit.

New York is a robust city and analysts see no immediate threat
from a downturn in the American economy

Organisations like the Manhattan Chamber of Commerce (MCC) have played an active role in New York's investment drive. The Chamber has worked with the EDC to encourage new business growth in the city. "The goal is to promote economic development, particularly in the small business community," says Nancy Ploeger, the Chamber's executive director. "No matter how much it may appear that large companies are taking over, it is still true that the economy is run by the small businesses. There is more employment and more job development in that sector." The Chamber helps firms find new clients and business, and cuts their costs by organising discounts on supplies and services. The internet has given its work an international dimension and extended the reach of its network of contacts.

New York has no fewer than 57 chambers of commerce representing overseas trade, among them the British-American Chamber of Commerce (BACC), based in Vanderbilt Avenue. It has 1,300 members, from the UK and the US. BACC managing director Richard Fursland, who arrived in the city some 20 years ago, says: "Since New York and London will continue to be world leaders in terms of financial centres, communications and so on, the links will remain just as strong." He points to a change in the way firms from both cities view themselves in the increasingly international world of business. Companies, whether American or British, now describe themselves as global entities, which just happen to have their headquarters in New York or London. "That is a big, very positive cultural shift, particularly for US companies," he says.

It is said that when America sneezes, the rest of the world catches a cold, but New York is a robust city and analysts can see no immediate threat from a US economic downturn. Marc Goloven, senior regional econo-mist at the Chase Manhattan Bank, says: "The Big Apple economy has only been lightly touched by the national business slowdown currently under way." Stephen Kagann, chief economist at the office of the governor of New York, predicts: "New York will continue to outperform the rest of the country." The Federal Reserve notes that hiring is still brisk at New York internet and Wall Street companies, despite the huge drop in the value of dotcoms and hi-tech start-ups. Anecdotal evidence suggests that labour shortages were becoming acute across a broad range of industries, the organisation adds.