Summary of Last Year's Case:

Last year, we partnered with a development firm to create a city planning challenge. The city featured both rural areas with a high risk of fire—home to valuable forests—and urban areas with lower fire risk but higher population density and critical infrastructure. Students were asked to create a smart, balanced plan to use the available funds effectively and improve the city's fire department.

They had to make tough decisions. For example, should they prioritize reducing response times in densely populated areas, where fires are less frequent but potentially more destructive? Or should they distribute fire stations more evenly to ensure rural areas weren't overlooked, especially since those areas faced a higher likelihood of fires?

Students also had to choose between investing in rapid response systems or focusing on fire prevention strategies, such as public education campaigns. On a more practical level, they made hands-on decisions like which equipment to buy. For instance, tall ladder trucks were ideal for city fires involving high-rise buildings, but they had little use in forests or open parks.

Beyond logistics, students explored more 'macro-themed' questions. Should the government spend the entire budget now to build a stronger fire response system, making a one-time investment to avoid frequent repairs and costly upgrades later? Or should they spread spending over time to reduce the immediate financial burden and maintain flexibility in how resources are allocated? Additionally, should some of the budget be saved and go towards other important services like healthcare or education? Should a loan be taken to improve society today, even if it comes at the expense of future citizens' well-being?

To help guide their thinking, students received an information docket about the city and were expected to develop a tailored plan suited to its specific needs.

For their final submission, students could choose to present their solution as a video (up to 5 minutes), a short report (maximum 2 pages or 1,000 words), a slideshow (up to 10 slides), or a podcast (up to 10 minutes).

Overall, the Round 2 had many key economic concepts embedded throughout. However, it required no prior knowledge of economics.

Please scroll down to see the exact case that students worked on last year, as well as the information docket they received.

Registration deadline on March 10!

Case File 1229: Mid-Sized North Indian City Requires Upgraded Fire Department

Link to the informational docket here.

Note: this webpage is best viewed on a computer.

Background:

You and your teammates are consultants at a public capital projects consultancy firm.

For this case, your client is an undisclosed city administration in Northern India.

The city has experienced rapid development over the last decade, leading to increased fire hazards. The aging fire department fleet is insufficient to meet the current needs.

Fortunately, the city has received a grant from the Central Government specifically for upgrading the fire department. The Central Government’s grant is intended to cover all one-off investment expenses associated with this upgrade.

However, the future operational costs of this fire department must be covered by the city's budget. The city’s finance department has completed their calculations and determined that the city is able to allocate a budget to maintain this fire department.

Your Task:

As talented consultants, you must devise a strategic plan to use the allocated funds effectively to upgrade the fire department.

Your plan should aim to minimize the risk and damage from fires while effectively managing the city’s resources.

You must consider factors including, but not limited to, the:

Land costs
Fire department capital expenses
Operational expenses
Population density
Risk factors
Environmental impact

Key Economic Concepts to Explore:

Cost-Benefit Analysis: Evaluate the costs and benefits of different options for upgrading the fire department, including infrastructure, vehicles, and technologies.
Opportunity Cost: Discuss the trade-offs of allocating funds to this project versus other potential uses.
Supply and Demand: Consider how the demand for emergency services in a growing city impacts the supply of necessary resources and equipment.
Externalities: Analyze the social and environmental impacts of your recommendations, such as the choice between electric and diesel trucks.
Budget Constraints: Work within the given budgetary limitations to propose a feasible plan.

Submission:

Your project proposal can be in the form of a 5-minute video, a 10-slide presentation, a 10-minute podcast, or a 1000-word essay. Alongside your proposal, you should also separately share an appendix file which shows your worked out solutions and methodology.

Only 1 person from your team must submit your proposal by sending it to “contact@economicsworldcup.org” with the title “Final Project Proposal - [TEAM NAME]” by 11.59pm HST on the 31st of March. In that email, they should also include the names and email addresses of all team members. Any submissions after the deadline will NOT be considered.

Your project proposal should address the following:

Analysis of the Situation: Understand and describe the city's needs based on provided data and factors.

Strategic Recommendations: Offer clear, actionable advice on how to allocate the funds, including justifications based on economic principles.
Consideration of Alternatives: Discuss the pros and cons of different options considered, demonstrating understanding of opportunity costs and trade-offs.
Impact Assessment: Evaluate the potential outcomes of your recommendations, including environmental and financial impacts.

Judging Criteria:

Submissions will be judged based on the team’s ability to:

Economic Understanding: Demonstrate a grasp of economic concepts and apply them effectively to analyze the case.
Quantitative reasoning: Use mathematical analysis and clearly show the expected output.
Creativity and Innovation: Present unique solutions and approaches to addressing the challenges.
Feasibility: Provide recommendations that are realistic, well-reasoned, and practical within the given constraints.
Cost-effective: Provide a solution that is cost-effective given the budgets
Communication, Clarity and Organization: Present Information and appendix clearly and logically, with well-structured arguments and supporting evidence.
Impact Analysis: Provide thorough analysis and evaluation of the potential impacts of proposed solutions, including long-term sustainability.

This case study encourages participants to think critically about economic principles in a real-world context, fostering skills in analysis, problem-solving, and strategic planning.

Separately, you have been provided a docket of information with more details about the client city. Please refer to this information in your analysis. In case this docket does not contain a piece of information that you are looking for, you can use your own assumptions as long as you call them out.

This docket will include background data on the city's financial situation, demographic details, and specific costs related to upgrading the fire department.

Registration deadline on March 10!