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The Many Faces of Leadership in a Thriving City a Rethink of the Toronto Narrative

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The Many Faces of Leadership in a Thriving City a Rethink of the Toronto Narrative IMFG No. 8 / 2014 perspectives The Pre-Election Series The Many Faces of Leadership in a Thriving City A Rethink of the Toronto Narrative Alan Broadbent About IMFG The Institute on Municipal Finance and Governance (IMFG) is an academic research hub and non-partisan think tank based in the Munk School of Global Affairs at the University of Toronto. IMFG focuses on the fiscal health and governance challenges facing large cities and city-regions. Its objective is to spark and inform public debate, and to engage the academic and policy communities around important issues of municipal finance and governance. The Institute conducts original research on issues facing cities in Canada and around the world; promotes high-level discussion among Canada’s government, academic, corporate and community leaders through conferences and roundtables; and supports graduate and post-graduate students to build Canada’s cadre of municipal finance and governance experts. It is the only institute in Canada that focuses solely on municipal finance issues in large cities and city-regions. IMFG is funded by the Province of Ontario, the City of Toronto, Avana Capital Corporation, and TD Bank Group. Authors Alan Broadbent is chairman and CEO of Avana Capital Corporation and Maytree, chair and co-founder (with Enid Slack) of the IMFG, and author of Urban Nation: Why We Need to Give Power Back to the Cities to Make Canada Strong (2008). Acknowledgements The author would like to thank his colleagues Enid Slack and André Côté at the IMFG for their help in improving the paper. The author alone is responsible for the contents of the paper and the opinions expressed, which are not attributable to the IMFG or its funders. Institute on Municipal Finance & Governance Munk School of Global Affairs, University of Toronto 1 Devonshire Place Toronto, Ontario, Canada M5S 3K7 http://www.munkschool.utoronto.ca/imfg/ Series editor: André Côté © Copyright held by author, 2014 ISBN 0-7727-0930-0 IMFG Perspectives right and city hall is a “mess,” as Globe and Mail columnist The Many Jeffrey Simpson recently commented.1 Why do these perceptions seem so disconnected from Faces of reality? Over the last decade, Toronto has risen in world rankings, placing in the top ten consistently in measures of livability, prosperity, and business investment attractiveness. Leadership in a It is clearly the number-one city in Canada in financial power and cultural facilities, and as a media centre. For the last decade, Toronto has led North America in the construction Thriving City of tall buildings, sometimes outstripping all the other cities combined.2 It boasts major clusters in financial services, bio- A Rethink of the Toronto medical research, postsecondary education, and information and design. If you board a Toronto-bound flight in Los Narrative Angeles, London, Milan, New York, or Hong Kong on a Friday afternoon, you will the find business class filled with Torontonians working in film animation, stage or book For most of the last four years, Toronto has been fixated on design, financial product design, or fashion, returning home Mayor Rob Ford. Spurred by local media and U.S. late-night after a week of work abroad on behalf of their Toronto-based comedians like Jimmy Kimmel, a constant stream of stories firms. about misbehaviour and a series of bizarre statements by the man himself have created the impression that the city The fact is, Toronto is booming, and this hasn’t happened is failing, that it has fallen into deep dysfunction, that all by accident. While the frantic media coverage has given the is lost. The Toronto Star can’t stop writing about Rob Ford, impression that the City suffers from leadership paralysis, the trying to get everyone else to pile on, and other media can’t reality is very different. At City Hall, members of council and resist the latest personal stumble or political shenanigans. staff have done their utmost to fill the leadership vacuum. A This impression is being applied in a retroactive appraisal of less-recognized ingredient in Toronto’s success, however, has been the city-building and civic leadership that has emerged previous city leadership as well, as if nothing has ever gone from vibrant and innovative private firms, public institutions, – 1 – The Many Faces of Leadership in a Thriving City A Rethink of the Toronto Narrative non-profits, and cultural sector organizations in Toronto’s and services can stand. City Manager Joe Pennachetti and wider civil society. There are many faces of leadership in his senior staff clearly decided that they were not going a thriving city. This paper, the second in the IMFG’s Pre- to let the city fail because of the political turmoil, while Election series, profiles some of them and reflects on how, for avoiding pointing fingers and assigning blame. They have any great city, the whole is greater than the sum of its parts. found significant efficiencies in city finances, highlighted where new funding is necessary, and put out a strategy for Governing a Mayorless City the future management of the city – which Pennachetti has articulated annually in a public address at IMFG. One observer Residents have witnessed chaotic scenes in the council commented that the senior managers have pulled together chamber, broadcast nightly on the news. They have lamented almost like a “regency” to safeguard the city during a volatile the unproductive debates and sudden reversals of policy. period. Scandal and intrigue have become hot topics of water-cooler conversation. City Council has stripped the mayor of most But there is no question that without a well-functioning of his powers. It has left many with the impression that City mayor’s office, the city is playing with one hand tied behind Hall is broken. But this is not the full story. its back. The good mayors in Toronto’s history, as in most Across Canada, city councils have detractors who decry cities, all had two qualities: the ability to articulate a vision the endless and often volatile debates, the ad hominem of the city and the ability to bring people together to support barbs, and short attention spans of their elected officials. and implement that vision. They have been able to bring They compare them councillors and citizens unfavourably with along with them, provincial legislatures and The fact is, Toronto is booming, and this persuasively represented the federal parliament. the city to the region and But those parliaments are hasn’t happened by accident. While the frantic the world beyond, and worked with other levels dominated by political media coverage has given the impression that parties that pre-digest of government to martial issues so that what takes the City suffers from leadership paralysis, the the necessary resources. place on the floor of the reality is very different. So why is Toronto legislature is relatively thriving even as the tame. Most of the work is municipal government done out of sight. has one hand tied behind In Toronto’s non-partisan system, council has often its back? What makes cities succeed without signs of highly taken its lead from the mayor, either supporting or opposing effective political leadership? The answers lie in the very the mayor’s position on a given issue. In other cities like complexity that defines city-regions. Vancouver and Montreal, coalitions form under municipal Thriving and Visionary Businesses and Public party banners, but they lack the enforced discipline of Institutions provincial and national parties. There are few costs to the councillor who abandons the coalition on one vote or Jane Jacobs wrote about complexity and connectedness, another. The nature of council remains transactional on each suggesting that successful city-regions had many sources issue and vote. What we tend to see in municipal government of strength and that there were strong connections among is democracy in the raw. them.3 Robert Putnam, in Making Democracy Work, limned This system, while messy, has allowed Toronto’s city the dense web of relations that existed in northern Italian government to avoid paralysis resulting from the dysfunction cities that gave them economic vitality and social power, 4 in the office of the mayor. Faced with a leadership vacuum, connecting them in many ways. Both noted that it was the Council found an equilibrium on a wide range of issues from volume and variety of activity that contributed to vitality. transit to housing to electoral reform. It may be as simple When one enterprise or institution faltered, others carried on as a determination to unite against a perceived threat to the and still others flourished. And their strength contributed to well-being of the city. The situation has led a number of the recovery of the faltering ones through the contribution councillors to wonder aloud if we even need a mayor, when of capital, ideas, and talent. This has certainly been the case council can find its own way to make decisions. in Toronto, where many areas of strength have contributed to the City’s prosperity even as some aspects of municipal Meanwhile, city staff have risen to the occasion, finding government faltered, or as we faced crises such as SARS or the solid ground on which fiscal management, development, Great Recession. – 2 – IMFG Perspectives The business community has been a pillar of Toronto’s of suitable units for families; still others find fault with the economic strength, particularly during the Great Recession. quality of construction, or the speculative nature of the The stability of Toronto-headquartered big banks, for demand. instance, was critical in keeping the national economy and local firms from the kind of severe trouble that U.S.
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