How cities can be successful in the post-pandemic world

The interconnectedness that global cities once prized risks being eroded and dismantled as Covid-19 lingers and new variants emerge
Success will depend on cities’ ability to balance openness with health protection, growth with better livelihoods, and diversity with local character that fosters a sense of belonging

Janet Pau

Published: 9:15am, 15 Dec 2021

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Topping the charts of the world’s most global cities has, until recently, been considered a huge achievement for any major metropolis. Global interconnectedness in trade and investment, diversity of human capital and freedom of travel and information are among the criteria of many such rankings.

Cities such as Hong Kong, Singapore, Tokyo, New York, London and Paris often find themselves front runners in these rankings, affirming their prestige as hubs for global capital and talent. This in turn promises higher economic growth, efficiency and living standards.

With almost two years of pandemic lockdowns and border restrictions affecting international travel and business operations, how realistic is it for cities to return to the “old normal” of being global?

As governments rush to enact stricter border and movement controls in reaction to the new infection surge generated by the Omicron variant of Covid-19, the interconnectedness that global cities once prized risks being eroded and dismantled.

There are signs that these shifts could become more permanent. Open and unfettered borders could be gone for longer than most had hoped. The bumpy path to reopening means borders might become more like revolving doors that open and close on command.

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While cross-border financial transactions and trade continue to a large extent, the free gathering and movement of people have already become more conditional, taking into account public health safeguards, forcing difficult policy choices for even the freest cities. These trade-offs generate immense frustration among residents and undermine popular trust in governments.

A great setback of globalisation following another pandemic took place about a century ago. The expansion in international merchandise trade in the decades following the Industrial Revolution was punctuated by the twin crises of World War I and the 1918 influenza pandemic.

After the pandemic, many countries experienced economic contraction, international economic cooperation was disrupted and strong voices advocated for a greater focus on the domestic economy. In the United States, the government ushered in an era of protectionism marked by high tariffs to shield domestic industries from global competition.

If history rhymes, the coming years could be marked by reduced global connectivity and greater insularity in the name of focusing on domestic progress and prosperity.

The economic impact of the pandemic will widen wealth and income disparities, and pressures for fiscal redistribution will increase. Some groups prefer closed borders, and their voices have become stronger.

As cities imagine their future in the aftermath of the Covid-19 pandemic, the most successful might no longer be global cities based on their external connectedness but, rather, adaptable cities that are flexible amid constant changes and uncertainty.

Success will depend on cities’ ability to balance openness with public health protection, economic growth with better livelihoods and quality of life for broader populations, and cultural diversity with local character that fosters a sense of belonging.

Some strategies to help cities adapt to new infection waves could include expanding the contactless economy and using immersive digital technologies that enhance productivity and customer experiences while maintaining distanced interactions between people.

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The rise of the metaverse, melding virtual and physical realities, could become a norm in the future of work and consumption. Measures and resources to help disadvantaged populations participate in the digital economy, as well as access essential social services virtually, will help bridge digital and economic disparities.

Cities will also need to expand offerings for activities to promote health and well-being that are not travel-dependent, including creating more outdoor spaces for recreation and public events. Entertainment and sports can make people feel more connected to others and less lonely.

Arts and culture, including dance, jazz and architecture, flourished in the Roaring Twenties as people craved social interaction and creative expression after prolonged periods of isolation.

For indoor spaces, retrofitting and constructing buildings incorporating better ventilation and air filtration with designs that enable social distancing should be a priority for urban development.

Ensuring goods and services move across borders smoothly even when people cannot will also remain important so residents continue to have easy access to the conveniences of city life. Economic interdependence is hard to undo and will continue to be key growth drivers for cities.

Turning inward economically, including policies aimed at self-sufficiency, could be costly, distortive and reduce the competition of innovative ideas, risking misallocation of investment. To attract and retain capital and talent, Hong Kong needs to become a more adaptable city, which will require greater flexibility for change amid uncertainties.

Ongoing difficulties in ending the pandemic are a real test of the city’s adaptability in this “new normal” in which Covid-19 might be with humanity for a long time. Implementing multipronged strategies that do not assume a return to the “old normal”, which might be gone forever, would be a good start.

Janet Pau is executive director of the Asia Business Council