How will the world’s leading cities reinvent themselves post Covid-19?
In the eyes of some a question mark hangs over the longevity of cities in the wake of Covid-19. The Wealth Report makes the case for their defence.
4 minutes to read
Empty streets, shuttered doors and boarded- up windows. At the height of the Covid-19 pandemic in April 2020, many of the world’s most populous cities were reminiscent of ghost towns.
With workers confined to their homes, and those who could decamping to greener pastures, some predicted that this could spell the end of the city.
Those pessimistic voices included author, comedy club owner and former hedge-fund manager James Altucher, who penned the essay “NYC is dead forever – here’s why”.
But, despite the undoubted impact of the pandemic on many of those living in the world’s urban hubs, I don’t agree that cities are on their last legs. In search of evidence, I contacted Saskia Sassen, Robert S. Lynd Professor of Sociology at Columbia University, and author of The Global City.
"Cities go through transformations – there are declines and then there are recoveries, there are epochs when cities lose ground and epochs when they gain ground. "
“Many cities have long histories, much longer histories than national states, something we often forget,” Sassen points out. “These long histories show us, with great clarity, that cities go through transformations – there are declines and then there are recoveries, there are epochs when cities lose ground and epochs when they gain ground.”
By way of example, she points out that US cities in the 1960s and 1970s were much poorer than they are today. “The queen of all cities in the US, New York, was officially bankrupt. Much was said about this being the end of cities… but that was wrong, and we saw a subsequent boom and the rise of global cities.”
A boom indeed. By 2020, well over half – the UN estimated 56% in 2019 – of the world’s population lived in urban areas. More than 80% of global GDP is generated in cities and by 2030 there will be ten new “megacities”, defined as having more than 10 million inhabitants, joining the 35 or so worldwide that have already achieved this status. Sassen tells me that “more and more young high-level financiers and lawyers need cities”.
Why? “Because, as I discuss in The Global City, the rise of globalisation demanded a whole new set of knowledge skills as to how to do business in many countries across the world,” she explains.
Then came a temporary pause: the Covid-19 pandemic. With swathes of the workforce, enabled by technology, seemingly operating perfectly well remotely, and in more spacious locations, what will revive the city and how will it adapt?
“This is an important issue,” Sassen says. “At the heart of the transformation lie two major factors, in my reading.” The first, she points out, is a challenge that could cause disparity geographically.
“Cities vary enormously in terms of the resources they can command. For example, European and Chinese cities receive far more support from their governments than do US cities. The US has a logic I find astoundingly, how shall I put it, ineffective.
"80% of global GDP is generated in cities."
“It has privileged the richer urban neighbourhoods and neglected many of the lower income areas. Let us recall the infamous case of the seriously contaminated water supply.
"A much-circulated photo of two brothers, one living in New York City and one in New Jersey, showed one much shorter than the other. Why? Because the water in New Jersey had become seriously contaminated with chemicals.”
The second factor is one at the forefront of many minds: climate change. “This is clearly a challenge for cities,” says Sassen. “Just think of all that concrete.” It is estimated that large cities’ traffic, transport infrastructure and buildings are responsible for more than 70% of global carbon emissions.
However, she continues: “A growing number of cities are already working hard at implementing innovations (see “The rhythm of the city”, right), both small and large.
"This represents a challenge, but also a significant opportunity, particularly to replace old infrastructures which are typically fairly destructive of climate and air, and often demand more and more costs as they decay and break down.”
Overall, 2020 could mark a turning point for cities – and a major opportunity. “The biggest opportunities for cities have to do, ultimately, with human talent: a broad range of types, knowledge and education in the urban workforce will enable innovative projects,” Sassen says.
After talking to Professor Sassen I’m more convinced than ever that now is a big moment for cities and for sustainability. Cities are hubs of innovation and can lead the way in a more sustainable future. As UN Secretary-General António Guterres says, cities are “where the climate battle will largely be won or lost”.
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