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MILAN-2019/05/14 1 THE BROOKINGS INSTITUTION THE GLOBAL CITIES AGENDA AND LESSONS FROM MILAN: A CONVERSATION WITH MAYOR GIUSEPPE SALA Washington, D.C. Tuesday, May 14, 2019 Welcome and moderator: MAREK GOOTMAN, Fellow and Director of Strategic Partnerships and Global Initiative, Metropolitan Policy Program, The Brookings Institution Keynote Remarks: THE HONORABLE GIUSEPPE SALA, Mayor, Milan, Italy * * * * * ANDERSON COURT REPORTING 1800 Diagonal Road, Suite 600 Alexandria, VA 22314 Phone (703) 519-7180 Fax (703) 519-7190 MILAN-2019/05/14 2 P R O C E E D I N G S MR. GOOTMAN: Good afternoon everyone. Thank you all for coming. We are really excited to have today Mayor Giuseppe Sala from Milan, to share with us his experience and thoughts about Milan's evolution and future as a global city. I want to acknowledge our colleagues from the Italian Embassy, Paul Otowski, and all the excellent staff at the embassy, and with the city, who help to make this event possible. This is part of our ongoing work about how cities act and need to transform themselves in the globalized environment. We launched our Global Cities work in 2011, and it is designed to strengthen the international economic connections and competitiveness of city regions in response to a whole range of challenges that are being faced. That involves globalization, but also urbanization, rapid technological changes and demographic shifts. So, over those years we have been working with research, pilot projects, and a peer-network exchange, with approximately 45 city regions in 20 states in the United States, and 10 countries overseas, around solving these issues, finding codifying solutions to these objectives. The core lesson from all of this work, is that being a global city is not about London, and Paris, and Tokyo, and New York, every city in this changed environment needs to be a global city in its thinking and globally fluent about the way it interacts with the rest of the world. So, Milan is a perfect example of a mid-sized city that, after 26 centuries of significance has still had to transform itself to reinvent itself and ensure that it is projecting its relevance and distinctive asset into this increasingly complicated globalized economy, to attract mobile talent, to develop businesses and to secure capital. Milan is a perfect example for peers like Montreal and Minneapolis and Melbourne, which are dealing with these challenges. And we've seen Milan, over the past several years, address these questions and emerge as a post-industrial city, a renaissance - ANDERSON COURT REPORTING 1800 Diagonal Road, Suite 600 Alexandria, VA 22314 Phone (703) 519-7180 Fax (703) 519-7190 MILAN-2019/05/14 3 - to use and Italian term -- and post-industrial city and renaissance that has successfully transitioned into this new environment. Mayor Sala has been involved in all of these efforts in the evolution of Milan. He came from the private sector roles, the CEO of Pirelli Tire, and general director of Telecom Italia. He then transitioned into a civic role leading perhaps the most catalytic recent event for Milan in the World Expo 2015, which inspired so much of the new kinds of collaboration, confidence and competitiveness activities that have driven Milan's evolution today. And then he was elected Mayor in 2016. So he is here to share a little bit about his vision for Milan's future, as a connected metropolitan and global city. Then we'll sit down have a little conversation, welcome your questions, and we all hope that we visit Milan soon. So, Mayor Sala? (Applause) MAYOR SALA: Good afternoon everyone. Thank you, Marek. You could be a perfect marketing manager for Milan. You told them many, many things about Milan, and just to give the dimension of the city, the population is around 1.4 million inhabitants, and the metropolitan area around 3 million. But actually we are producing 10 percent of the Italian GDP. We are receiving -- we are getting 30 percent of all the investment from abroad, and 50 percent of all the investment in the real market in Italy. So now, this global visit is to present my city, and to present to you how it has evolved, and transformed itself in a post-industrial era, and the vision that prepared it into further advancement. I will try to signify the trajectory of a city that has overcome important challenges from an economic and social point of view, and that is currently -- experiences of Golden Age. I will also talk about the Milano 2030 Plan, and the next steps that the city ANDERSON COURT REPORTING 1800 Diagonal Road, Suite 600 Alexandria, VA 22314 Phone (703) 519-7180 Fax (703) 519-7190 MILAN-2019/05/14 4 intends to take to consolidate its transportation into a contemporary international city. But let me first set the stage with some consideration about cities. As you well know, in an increasingly urbanized world, cities play a major role and have the potential to take the great challenges of our time, from poverty and inequality to climate change, and the environmental degradation. Cities are and always have been the place where change is generated, for better or for worse. They naturally host contradictory phenomena, wealth and poverty, integration and exclusion, cooperation and competition, innovation and conservation. And cities play a key role as to the economic drivers, as they are at a meeting point for different cultures, and as such, a place of creativity and innovation in every field, from technology to culture. Cities are the engine of progress when they create suitable condition for the attraction and the (inaudible) of talents and skills, and that is the role of Milan in Italy now, which in turn stimulate innovation and economic, civil and cultural development. Yet cities also present critical issues, and I would like to go deep in that. Like unemployment, discrimination and poverty in cities, inequalities and economic contradiction are often amplified and exacerbated. The governance of global cities is therefore key, taking the example of the environmental sustainability cites can have a considerable impact by introducing innovative measures in their own trajectory and in doing so, by influencing national governance and global processes. The potential of a global city does not cancel out the difficulties that they faced and continue to face if the contradiction are not corrected or at least mitigated by politics they risk paving the way to turmoil and crisis even more severe than the ones we experienced lately. First, the demographic crisis in all its aspects, from an aging population, and that is our reality because we are -- our population is increasing, but precisely in two ANDERSON COURT REPORTING 1800 Diagonal Road, Suite 600 Alexandria, VA 22314 Phone (703) 519-7180 Fax (703) 519-7190 MILAN-2019/05/14 5 segments, the old people because they decide -- they cannot decide, they stay in Milan, their family, their life is in Milan, and the young generation for a very different point of view because they decide to come to Milan, so they choose Milan. Especially in the most developed countries to the population of some region, to the massive influx of immigrants. And then I will come back to immigration. Second, the decline of the industrial model, in recent years cities were profoundly hit by the post-industrial crisis, and some were not able to adapt and transform as well as others. Milan itself suffered for a long period of stagnation. Altogether these aspects led to the exacerbation of inequalities between -- first of all between center and peripheries, and in terms of income, opportunities and access to basic services. And finally, and notably, with respect to the deterioration of the environment in the absence of decisive and far-sighted governance, while cities represent only 3 percent of the planet's surface, they are responsible for two-thirds of energy consumption and 75 percent of carbon emissions. And such percentages were continuing to worsen as in the next decades 95 percent of the urban expansion is expected to take place in developing countries. Now, let me elaborate on what I believe is the starting point of the success of the contemporary Milan, which is being a city that works well, providing the services the citizen needs in a convenient and fitting manner. Whether we talk about public transportation, waste management, schooling or cleanness; for example, Milan is a city that achieves high standards and provides satisfactory services. This paves the way for a meaningful engagement of citizens that are motivated to make their contribution, and now the value of Milan is based on the Milanese, on the people, because they have seen where we are going, why we are taking some decisions. And so to follow the rules to be part of the common good, so first of all, ANDERSON COURT REPORTING 1800 Diagonal Road, Suite 600 Alexandria, VA 22314 Phone (703) 519-7180 Fax (703) 519-7190 MILAN-2019/05/14 6 recognizing what we are, let me say the general good functioning of the city and the commitment of its citizens, make it possible to envisage an ambition, yet realistic vision for the future. It makes it possible to work for the improvement and development of the city according to its specific needs and on the basis of its strength. And let me talk about Milan 2030. The city of tomorrow can only originate from the city of today from its social demographic characteristic, from its past failures and successes, from the legacy of those who came before us, and collectively steered the city on its development path.