Monday, February 17, 2014

The Transformation Of Medellín, And The Surprising Company Behind It




Economic inequality is expected to be a major theme of President Obama’s upcoming State of the Union address. While policy discussions on this subject usually center on jobs, taxes and education, there is growing recognition of the value of urban design and public spaces in shaping the equitable development of a city.

One such example is seen in Medellín, Colombia, where a unique partnership between public utility company Empresas Publicas de Medellín (EPM) and the city has yielded economic opportunities in marginalized neighborhoods, fostered inclusive communities, and attracted international recognition and investment.

Public Architecture and Social Cohesion
Beginning in the early 2000s, EPM and the city collaborated to construct a series of libraries, parks, schools, and transportation infrastructure. A new public metro system and cable cars have reduced commute times and have integrated poorer neighborhoods previously cut-off by the city’s mountains. But the design and building of the new schools and public parks were perhaps the greatest achievement.  Sergio Fajardo, Mayor of Medellín from 2004-2007, made education a top priority – dedicating resources to both the pedagogy itself and to constructing beautiful physical spaces for learning. Fajardo and EPM ensured schools and library parks were built in marginalized parts of the city, ensuring more equal access to resources and education.

The neighborhood of Santo Domingo – once considered the most violent in a city that was at one time the most violent in Latin America – is now home to the Parque Biblioteca España, a destination for tourists and for locals, a source of free classes and Internet access, and a place for the community to gather. It is one of a network of libraries designed by local architects and recognized by the Gates Foundation for its use of technology for community development. It is a physical statement of support for a previously neglected area.

Medellin from the Metro Cable (Photo credit: szeke)
But these spaces hold deeper meaning for residents. “The symbol produces dignity,” said Colombian architect Giancarlo Mazzanti, who designed the Biblioteca España and many other structures for which the city is known.  “When I talk about Medellín’s libraries and projects, I always say that people today are proud of where they live, whereas in the 1980s they’d be terrified to admit they lived near Pablo Escobar’s [leader of an infamous drug cartel] compound. Today people love saying, ‘I live over there, where you can see that.’”

By connecting citizens, these spaces helped break down the physical divide between socioeconomic groups. It is a concept echoed in EPM’s objectives for its architectural projects: “take down the fence to become closer” or “tumbar la cerca para estar más cerca.” EPM has twenty new projects due for completion in 2015 that are being developed in partnership with the community to ensure the spaces meet their needs and contribute to inclusive urban development.

Fajardo initiated a process of community involvement in the planning and design of public architecture, as well as its participation in other decisions regarding municipal funds allocation. This has changed the community’s perceptions of the government. Indeed, “when collaborative networks are formed involving government, neighborhood-based organizations, and a variety of community-based organizations, and their actions are focused on a commonly held agenda [the public interest] there is the potential for…meaningful change,” wrote community development specialist Mark Glaser. “Citizens potentially become more willing taxpayers and co-producers of change.”

A Unique Public-Private Partnership
Since its creation in the 1950s, Empresas Publicas de Medellín has transferred roughly 30% of its annual profits to the municipality of Medellín for social investment projects. Structurally, EPM is an anomaly. It operates as a private company and pays taxes like any other corporate entity, and although it is owned by the city, the city pays for the utility services it receives just like any other customer. But according to a recent article from the Wharton School, it is precisely this structure that explains the company’s success: “This unique structure has allowed EPM to play a strong role in the city’s success and transformation… Yet, the company’s commercial position has not been compromised.”
Although EPM has been recognized as a powerful social enterprise, Oscar Dario Gómez Hoyos, Director of Sustainable Development at EPM, notes that it is just a piece of the larger sustainable ecosystem that must be in place. These changes were only part of the story of transformation for Medellín; federal and local anti-corruption and anti-violence efforts, together with large-scale education reform and investment, created an atmosphere in which these community development projects were able to bear fruit.

In addition, Gómez Hoyos says that, “We believe that social impact of the greatest magnitude is achieved through operations and business itself; our social and environmental actions are fueled by policies that seek to focus performance in the value chain. They are designed as one, immersed in our processes, and ethically managed through an entity that promotes human development together with business objectives.”

It is not surprising that Medellín was selected as the host city for the UN Habitat’s World Urban Forum in April. This year’s theme, Cities for Life, will focus on the ways in which urban design can boost social cohesion and equitable development, a topic that Medellín’s citizens, planners, architects, and business community know a lot about.

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