Lecture by Professor Kingsley E. Haynes, Dean, School of Public Policy, George Mason University, Fairfax, Virginia. The theme of this Megacities Lecture 2006 is the financing of the development of the living space, concentrated on a regional level. Prof. Haynes speaks about hard, soft, and smart infrastructure, its governance, management, and financing for competitiveness and sustainability. He also discusses the role of different kinds of infrastructure in regional economic development, including the theory and practice of financing public goods investments, public-private partnerships, and public decision making. Finally he will use case studies from around the world to provide concrete examples.