After COVID-19, is it better to create smart cities? COVID-19 was a pandemic that shocked the world and for good reason. In late 2019, what began as a rumor on a small market in Wuhan in China quickly became the most serious threat of the 21st Century. In just a few months, there were thousands of deaths worldwide. The industries came to a screeching stop. The damage to the world economy cannot be quantified.
There are still lessons to learn despite the tragedy. The key lesson is the way pandemics spread through cities. These lessons will be crucial for the future success of smart cities. By 2050, the majority of people on earth will be living in urban areas. Urban planners need to have design and management skills in order to effectively prevent and manage disease outbreaks.
Lessons Learned from the COVID-19 Pandemic
COVID-19 is unique because it is transmitted by physical contact. In an increasingly interconnected world, this mode of transmission poses challenges to city dwellers. The virus spreads faster in urban areas than in smaller towns. It tends to spread more quickly in urban poor communities, where people are living close together.
Past pandemics have taught us that cities which eliminate disease and improve public sanitation can withstand pandemics. COVID-19 will be tested on these lessons. Has the administration articulated its knowledge and policies properly? Can the society respond effectively to similar situations in the future, and manage diseases before epidemics occur? It is important to do this because COVID-19 won’t be the last pandemic. There will be more pandemics. Six major threats have been experienced by the world in the past 20 years. Before COVID-19 the world avoided five bullets: SARS, MERS Ebola, Avian Influenza, and Swine Flu.
How Urban Life will Change
The impact of the pandemic on ordinary people is evident in many ways. The little things that we used to take for granted are changing.
Experts have painted a picture of daily routines changing. More people will work from home. Retailers will need to reduce staff in order to accommodate the new norm. Coresight estimates that 25,000 US retail stores will close. More than half of the stores in these malls are American. Even though the city centre will remain a center for entertainment, arts and culture, people will continue to maintain a social distance. Residents of the city are more aware of their personal space, and they know how important it is to practice good hygiene. They always carry a handkerchief or a bottle of hand sanitizer with them. They will become cultural norms and those who deviate will be frowned upon.
In the coming years, office space demand will also drop dramatically as more people choose to work at home. The pandemic showed that large offices are not required for productivity.
Restructuring is underway to improve sanitation, health and social services, as well as the overall quality of life.
Is this the End of Cities
One is tempted to think that cities are bad for people. We should all be moving back to the suburbs and countryside to avoid overcrowding. This is an utopian idea. It’s impractical, and almost impossible, to remove the city from its role as a financial, cultural and economic hub. Smart cities are the answer. How will smart cities prevent pandemics and reduce their effects? Technology is the answer.
Here are some examples of smart cities solutions that can improve public health and sanitation.
- Touchless check-in processes include apps and systems people can use to check into an event, and then navigate to the venue using the least congested routes. These devices can be used to unlock doors, elevators and other areas without having to press buttons or risk contacting germs.
- Air Quality Monitors In smart cities, air monitors will be installed in all buildings to continuously monitor pollutants, pathogens, and toxins. Residents will be notified immediately if danger levels exceed the benchmarks set by public health regulators.
- Safe Distance Robots Singapore has been crowned the IMD Smart City Index winner for two consecutive years, and it’s not without reason. The city is a pioneer in the implementation of cutting-edge smart city technologies. A robot dog, which senses distances between humans in its path, is one of the most recent examples. Sensors can detect when people get too close. The robot plays a recording to remind people to keep at least one meter between them.
- Disinfectant Spraying Drones When COVID-19 broke out in China, the Chinese government experimented to quickly and efficiently disinfect public areas. Drones were one of the most successful methods. Autonomous drones may be used to disinfect vehicles and public areas in the future. This will reduce pathogen transmission mechanisms.
- Remote Temperature Monitoring Systems In the future, AI-based systems that monitor temperature remotely will be able identify sick individuals on the streets and notify them to visit a hospital immediately or send out a community worker.
- Heatmaps of Overcrowding This technology has already been developed in Singapore by National Parks. Residents can view the Visitorship status of parks, recreation areas and open spaces in the city. Residents can avoid areas where there are a lot of people.
- Intelligent traffic control and information system: Traffic is the primary cause of congestion in most cities. Smart parking and bicycle lanes are two ways to reduce traffic congestion.
- Free Internet 5G: As 5G Internet grows, it will bring fast internet to the majority of people. The final step to moving most people towards a work from home model is to make the Internet a fundamental and free human right. Working from home can reduce overcrowding and contact, as well as interrupt the pathogen’s transmission chain.
Costs of Building an Intelligent City
It is crucial to create smart cities after a pandemic. Smart solutions are needed to solve a variety of issues in cities around the globe. There is a lack of innovative officials and many cities are strapped for money. Many smart city initiatives involve public-private partnership. What is the cost to build a smart city, then?
When deciding what types of investments are needed, decision makers should consider the three dimensions: situation, solution and sovereignty.
Creating Smart Cities The Situation
Smart cities are not created in the same way. Each city is unique and has different stages of development. The authors of a report on the Future of Mobility by Bloomberg New Energy Finance, McKinsey & Company and other companies demonstrate the differences between cities.
Density, wealth and level of development are the three factors that determine a city’s present situation. These should be used to guide policy.
- Cities in rapid development, such as Mumbai, New Delhi and Mexico City, are examples. These cities are marked by high traffic, a dilapidated and inadequate infrastructure, and severe air pollution.
- Low-density, high-income cities: Sydney or Houston are examples of low-density, sprawling cities that have high incomes in developed economies.
- Highly developed cities. Finally, there are scenarios such as Paris or Seoul. These cities have a dense population.
It is evident from the above situations that what might be a smart tool for changing lives in Mexico City, may not be suitable for Sydney. The decision-makers need to understand the unique circumstances of each city and find solutions that are appropriate.
Creating Smart Cities: The Solution
The circumstances will also determine the solutions. There is always a high-tech option as well as a low-budget one. Prioritizing certain things is also important. Is it more important to install a stormwater drainage system or offer free Wi-Fi? All depends on what the city prioritizes. In order to make the right decision, the decision makers must first ask two questions: what is the cost and why are city residents in need of this solution?
Sovereignty
Thirdly, it is important to consider who makes decisions and how they are made. Do key decisions come from public officials or are they shared with private partners and stakeholders? Public participation is mandatory or optional.
Some technologies take off and spread without regulatory approval. Uber and Airbnb provide two examples. It is impossible to deny that Uber and Airbnb are both transport infrastructure.
Other technologies need government approval, regulation, control and investment. For example, smart traffic systems, remote temperature monitors, and disinfectant-spraying drones. Private entities that want to run and develop such projects face serious challenges.
Smart City Payment
Various funding and financing methods can be explored once a decision has been made, plans have been drawn up, the costs have already calculated and value created by smart cities is understood.
The difference between financing and funding is crucial. The government (federal or state) will provide a certain amount of money for a specific purpose. This money is used at the government’s discretion. These funds have no interest and there is no expectation of payment. A financier will provide a certain amount of money for a project. The money is repayable at interest.
Public-private partnerships include elements of finance and funding. Public-private partnerships combine elements of finance and funding.
There are two major funding and financing models.
Public Funding
There are many public funding models. There are several public funding models.
- Exchequer funding: Use of taxpayer funds to finance a project.
- Debt Financing The government issues bonds to fund the creation of intelligent cities.
- Grants An international or regional organization such as the European Union offers a grant for smart city initiatives.
Private Finance
Private financing models can be categorized as follows:
- Traditional loan and lease: Payment is spread out over a period of time. Public sector can repay the loan or user fees/third-party fees may be used to settle the loan.
- Vendor Finance A vendor of equipment, such as an engineering firm, may be willing and able to finance a project. The money is used specifically to purchase equipment from the vendor.
- Revenue Share Financing: A project is financed in exchange for a portion of the revenues that it expects to collect from users.
- Equity Financing The project is financed by a strategic partner in private equity.
Cost Examples
It is important to consider how much money the most forward-thinking people are putting aside for smart cities. Over the next 20 year, it is estimated that smart city initiatives will cost cities over $41 trillion. Sidewalk Labs (an Alphabet Company) invested $50 million in a smart city neighbourhood in Toronto. Bill Gates also invested $80 million in Belmont, Arizona.