Moscow, which I had the good fortune of visiting last week, is a city of contrasts. From the window of my hotel I could look across at St. Basil’s Cathedral and the commercial skyline of Moscow. Transformed from the deadly dull gray of the Soviet era, Moscow is now home to a myriad of new skyscrapers and development. Globalization has arrived with a vengeance. Advertisements for global brands like Nokia, Nike, Samsung and IKEA are everywhere. The powerful combination of oil revenues and economic liberty are creating a new Russia.
But there is a flipside to this newly found prosperity. Mercer Research recently identified Moscow as the world’s most expensive city. Downtown flats are rented for astronomically high rates. Once outside of the commercial and business hubs, you encounter the Soviet-era apartment complexes where the majority of Moscow’s citizens still reside. While the overall standard of living in Russia has increased, the gaps between rich and poor, privileged and ordinary, have never been wider.
That gap is part and parcel of a tightly interconnected global economy, where capital and goods move more freely around the globe than ever before. One of the key policy challenges of our time is the importance of fostering a competitive business climate that ends up benefiting ordinary citizens. Governments which over- regulate or impose too great a tax burden find that capital can flow as fast as mercury to other markets and other investment opportunities. Stagnation sets in and everyone’s standard of living decreases. Efforts to “race to the bottom” to try to attract investment, while increasing the standard of living, can cause income gaps to grow wider and harm the environment.
As we commented on in a previous piece, the events surrounding Gaylord’s decision last month to halt efforts at developing a new convention center demonstrated some of the challenges our region faces. That company did not have to build on the Chula Vista waterfront, and when the demands imposed grew too burdensome, the managers of capital decided that it was their duty to abandon the contemplated project and seek opportunities elsewhere.
Helping to navigate our globalized economy to create widespread benefits is, ultimately, part of what political leadership is about. The unique opportunity afforded to political leaders is that they can help to create dialogues and negotiate spaces large enough where zero-sum conflicts can be transformed into opportunity for win-wins. They can also create spaces where rhetoric can be toned down and more civil discussions take place. While that can entail risks, the benefits can be widespread and can move the region forward.
We have seen that in the past. San Diegans can do it. Indeed, the transformation of eastern Chula Vista is testament to the genius of multiple species habitat planning efforts where political leaders encouraged builders and environmentalists to put down their weapons and seek mutually beneficial outcomes. The process was long and years of distrust and acrimony had to be chipped away. Even today, skirmishes continue to flare up. Nonetheless, finding a balance between development rights and wildlife protection resulted in comprehensive habitat preservation plans which, in turn, allowed eastern Chula Vista to be master planned as a cohesive and functioning whole. Thousands of permanent, good paying jobs have been created as the community has grown. Indeed, as of the press deadline for this opinion piece, there are hopeful signs that leadership in Chula Vista has made a difference and that Gaylord may be renewing its effort to forge a deal that works.
On one of my last days in Moscow, my guide and I talked about each of us practicing “duck and cover” drills when we were in elementary school. The end of the fearful days of the Cold War was the result of the triumph of liberty and skillful diplomacy. Helping San Diego move forward will require similar courage and creative solutions.
Reader Feedback
There are no comments yet for this article. Be the first to post!
Post a Comment
Feedback Rules:
Users may post more than one comment, but should not pose as multiple users. Multiple posts from the same IP address but with a different user name on each will be reviewed to determine whether abuse has occurred.
Posts with personal attacks or unsubstantiated allegations may be edited or deleted.
If you have not posted before, you will be required to verify your email address before your post is displayed.
