Making Preservation Relevant for the Next 50 Years

The annual conference of the National Trust for Historic Preservation is the largest gathering of preservationists in the United States each year. One of the events at the conference is called the Forum Luncheon. This is a subset of the National Trust's membership that is largely practicing professionals. This year I had the privilege of giving the presentation at that event and it is copied below.

While it was obviously written for an American audience, parts of it may have relevance to heritage conservation professionals elsewhere. Comments, questions, and dissents are all welcome.



Making Historic Preservation Relevant for the Next 50 Years
Forum Luncheon
Nashville, Tennessee
October 17, 2009

Thank you.

I am particularly pleased to have been invited to make this presentation. As you all know this will be the last National Trust conference where Peter Brink is in command. There are probably some people who care as much about historic preservation as Peter, including my long time friends Myrick Howard, David Brown, Randy Shepard and Amy MacDonell and many of you in this room. But I don't think anyone cares more about preservationists - personally and professionally - than does Peter.

Many of you have individually benefited from Peter's leadership, his guidance, and most importantly his friendship. I certainly have, and I want to thank you for that, Peter.

More than any other individual, Peter has given me numerous opportunities over the last two decades to broaden how I think about historic preservation, and has given me the forum - no pun intended - to think out loud about this movement. It was Peter's idea for me to write The Economics of Historic Preservation. It was Peter who got me engaged in the debate about preserving the recent past. It was Peter who a few years ago who gave me the platform of this luncheon to give what I've come to think of as my "historic preservation as foreign policy" speech...and my having been given the opportunity to think about those issues lead directly to the expansion of my professional practice to an international level.

And it was Peter who called me 7 or 8 months ago and asked if I would think about what the historic preservation movement is going to have to do to be relevant fifty years from now, and then deliver those thoughts here today.

The good news is that I'll certainly be dead 50 years from now so won't be around to be held accountable for whatever I might spout off about today.

But I have been thinking, and scribbling notes, and talking to others about this presentation for months now. And I would hope that at least a few pieces of it are worthy of discussion, debate and particularly dissent both here today and perhaps in the months ahead. But, candidly, I've tried to be particularly careful with the ideas I'm going to present, and the words I use to present them. And this is the reason: Forum Journal - which, as you know, is by far the best publication for the practicing professional in preservation today - typically prints the texts of the major presentations at the Trust Conference and may do that with my comments today.

Therefore I have a very important caveat for anyone who listens to or later reads these remarks - nothing whatsoever that I say should be interpreted as a criticism of today's preservation commissions, the National Park Service, Preservation Action, ICOMOS or my fellow preservationists. I want to make that clear, because the last thing I want is for my comments to be taken out of context and used by opponents of historic preservation as an argument against what we are all trying to do by saying, "See, even this guy who spoke at the National Trust conference thinks that.....whatever." I repeat - nothing I say from here on out is a critique of today's historic preservation.

And I want to make doubly clear that this is not a critique of the National Trust. When someone writes the history of the Trust under Dick Moe, a central theme will be how he spent his time making the National Trust specifically, but by extension, the preservation movement more relevant - Smart Growth, the Trust's collection of properties, the sustainable development program, the support for state and local preservation organizations - every one of those initiatives was about the relevancy.

So I certainly do not believe that in the last fifty years preservation has not been relevant - it certainly has. But I have taken seriously Peter's charge to think about what the preservation movement is going to have to do to be relevant fifty years from now, and everything I say is in that context.

I often tell clients that one of the few ways I'm useful to them is that I'm always candid...sometimes with the car running to get me out of town. And I'll be candid today. If most of you aren't mad at me for something or other I say I probably haven't done the job Peter asked me to do. And I'll move among the theoretical, the linguistic, the political and the practical.

One last caveat - if there is anything I've learned from working with Main Street communities for the last 25 years, it is the importance of incrementalism. So even if some of the perspectives I offer today have merit, should they be implemented tomorrow? No. Peter's time frame was 50 years, not 15 minutes...change should happen incrementally over time, not be instantly imposed.

But here is why the discussion of relevancy is relevant today - the passage of the $787 Billion dollar stimulus plan last February. This was a statement of Congressional priorities affecting two generations. I say two generations, because no one in this room will still be in the workforce when this bill is finally paid off. And every single thing that was included in that bill was deemed by Congress to be more relevant than historic preservation.

Don't get me wrong, this was not a failure on the part of the National Trust or Preservation Action to effectively lobby to be included. The haste, the complexity, and the secrecy with which this bill was put together meant that unless you were a Democratic member of an appropriations committee, the chance of influencing the final package was virtually non-existent.

Instead it represents how much we as a preservation movement need to do in the next 50 years to be as relevant as we ought to be. And it is not that preservation doesn't have friends in Congress. The introduction and bipartisan support for The Community Restoration and Revitalization Act is evidence of that.

But the stimulus bill was about jobs, about economic development, about sustainable development - three things that historic preservation does better than almost any other activity and should have been an obvious priority. And yet we didn't make the short list; we didn't make the long list; we didn't even make the footnotes.

I'm mistaken there. In the first draft there was $55 million for historic preservation, but that was one of the few things that got cut. Even had it been left in, it was a statistically meaningless amount. The interest accrued on the stimulus spending between when you went to bed last night and right now is more than the $55 million that was designated for preservation.

After the preservation allocation was cut, here is what I found posted on the website of a financial institution: Previously, the bill contained an item that would give a big payday to historic preservation. A $55 million payday to be exact. I can't say that I know what the money was going to fund, exactly. Much historic preservation mostly involves leaving things alone. But I can say that there isn't a correlation between historic preservation and improving the economy.

If we know something and someone else doesn't know it - that's not their fault, that's our fault. And obviously we have not made our case.

But it's not like nobody gets it. The European Heads of Heritage Forum spent their spring meeting talking about heritage stimulus during an economic recession. Norway, France, Slovakia, the Netherlands, Luxembourg, Canada, Australia, Hong Kong - every one of them had specific funding for historic preservation in their own stimulus plans.

Why? Heritage conservation creates jobs. It creates jobs in the sector most seriously impacted by this recession. It creates jobs where there is a significant shortage of skills. It has extraordinary impact on local economies. And it invests in assets that are both sustainable and long term.

Here was part of the EHHF statement: All the evidence demonstrates that investment in heritage is an inherently sustainable, long term, and measurably successful solution to economic recession.

The European Parliament even held a hearing in March about the role of heritage conservation in economic downturns. The equivalent hearing in the US Congress? Well, I guess I missed that notice in the Congressional Record.

So it is certainly relevant that we talk about relevancy.

If historic preservation is going to be relevant in fifty years, we need to revisit the basic question - what do we want to preserve and why? Now I know this debate takes place in graduate school classrooms and rather arcane academic conferences, but we need to engage the discussion to help define our roles as practicing preservationists.

Think about the beginnings of historic preservation in America. It began with saving Mount Vernon, which was not only the home of our first president, but also a mansion of a wealthy landowner. And then preservation moved to landmarks, monuments, and the gems of architecture as art. We saved buildings that were most important in our national history and we saved buildings of great beauty. And I would argue that was the appropriate starting point. Even when the National Historic Preservation Act was passed the primary focus was on architecture as art and on the associative importance of buildings to our history.

As a consequence our framework for the treatment of buildings we decided were worthy of historic designation - local design guidelines, the Secretary's Standards, preservation ordinances - responded to that thinking about what was historic. And in the minds of many, historic preservation was simply a subset of architecture.

But how is historic preservation different today? Here is my test - look at what made the list of the National Trust's "This Place Matters" program. Virtually none of the finalists met the test of either being an architectural masterpiece or of particular significance to our national history. Those places were nominated because they mattered to the local community and in many cases not on architectural grounds. I for one think that is a wonderful way for historic preservation to have evolved.

These are places that matter to the local community, therefore, by definition, they are places that are relevant to the local community. But our regulatory environment, our preservation philosophy, and our preservation education is still largely stuck in the past.

We need to reestablish the relationship between why something is deemed worthy of historic designation, and the rules we have in place to maintain its significance. If, for example, materials were in no way part of what creates the significance of the building, why are we being rabid about what materials are used in rehabilitation? English Heritage is currently revisiting their listing documents, not to make things more demanding, but to add flexibility for the treatment of building elements that weren't part of why a building was listed in the first place.

On the philosophical side, we have these endless debates about authenticity. In the case of Montpelier, for example, that was a very important debate to have - whether to go back to the Madison building or also preserve the later DuPont additions. But Montpelier is the type of monument - a mansion with architectural and associative importance - for which the philosophy of authenticity was developed. But is that still germane for the types of places identified today as places that matter? If we are honest with ourselves, the sheer act of designation and placing significant constraints on what can happen to a property in the future does far more to remove the authenticity of the building than does some minor materials substitution. Except for grand monuments, almost all buildings were built to be able to evolve over time. And in most cases we are either precluding or severely restricting the ability for the building to do that in the name of authenticity.

Does that mean I think we should remove the restrictions on what can happen to historically designated buildings? Absolutely not. What I think we should remove is our more than hypocritical concept of authenticity for the majority of properties we deem worthy of protection.

Today we are designating properties, not for their architectural grandeur or associative significance, but for their importance to the local community and, in many cases, as a tool to help a neighborhood have a say in how it changes over time. But our understanding of those issues is far more reliant on sociology, political science, psychology, urban planning, economics, and anthropology than it is on architectural history, materials conservation, or knowing the difference between Queen Anne and High Victorian.

So if the nature of what kinds of places matter is naturally evolving to become more relevant, then our regulatory structure, our philosophy and our education need to evolve as well.

Which brings up a related issue - the role of the preservation elites. Those of us with technical training and education in historic preservation believe we should have more say in what is historic and what should be preserved and how, than the guy on the street. So the Park Service doesn't have auto mechanics reviewing tax credit projects, they have architectural historians. And chances are your local preservation ordinance spells out the qualifications for serving on the commission, and that will be people with particular expertise in historic preservation.

But, again as the This Place Matters program amply demonstrates, we are rapidly democratizing what constitutes those places worthy of preservation - moving that decision beyond those with specific preservation expertise. If that's the right thing to do to make historic preservation relevant, it has important implications for the role of the expert.

In the mid 1960s, when today's framework for preservation policy was being established, there was a conscious decision that we shouldn't have a graded system of historic resources. There was the fear that if we had, for example, Class A, Class B and Class C buildings, that would be handing demolition permits to developers and local governments who would argue, 'It can't be that important. It's a Class C building." I both understand and concur with the reasoning at that time. When even the best of our built heritage was being lost through rampant urban renewal and misguided development decisions, it was necessary to yell "STOP!".

But in half a century we have matured as a country and as a movement. We lack credibility, and therefore relevance, when we claim every historically designated building is equally important. A few years ago a good friend and well regarded preservationist said to me, "To young people today, the first McDonalds is more important than Mount Vernon." I don't know if young people believe that. But if they do, they are wrong! They are not equally important. I'm not against designating the first McDonalds. But if an upcoming generation of preservationists thinks there is equivalence between Mount Vernon and McDonalds, I'm burning my National Trust membership card.

And the trouble of not identifying relative importance means we are terrible about setting priorities. Historic resources, like natural resources, need to be managed over time. It is impossible to have good management if you're unable or unwilling to establish priorities.

Priorities are also necessary when we decide which battles to fight. We will never have enough financial, human, or political resources to fight and win every preservation battle. So we need to have some process to decide which battles we are going to be fully engaged in. And we cannot do that if we are unwilling to establish priorities.

One of the lessons of relevance that the preservation movement has learned in recent years is that all preservation, like all politics, is local. And there is much positive about that - it is consistent with historic American land use policy, and it is local people who are best able to identify what is important locally. But there is a drawback. If we are going to have valuable, high quality, livable, sustainable cities fifty years from now, our vision cannot be bound by municipal boundaries. We need to think on a regional basis, often crossing state lines. This is going to be a herculean effort that is going to require advocacy and expertise from many disciplines, but historic preservation needs to be at the forefront.

Another area where preservationists need to use our creativity and to join with others is the invention of new land use tools. In American planning and zoning law there are very few tools available to allow citizens to influence the character and quality of their neighborhoods. Historic designation is one of the few that exist. And when there is only one tool, that tool is used whether or not it is appropriate. Preservationists are the ones with more experience than anyone in using local legislation to protect and enhance the quality and character of neighborhoods. We need to use that experience to help develop additional tools beyond historic designation.

If preservation is going to be relevant we cannot ignore the demographics of this country. The young preservation activists of fifty years from now aren't even born yet, and won't be born for another twenty or twenty-five years. And when they are born, less than half of them will be non-Hispanic white. So the ongoing efforts to racially and ethnically diversity the preservation movement need not only to be continued, but to be stepped up, not out of some drive for political correctness, but as an imperative if preservation is to be relevant fifty years from now.

The issue of sustainability is not one more fad that will fade in a year or two. Sustainable development is central to environmental, cultural, and economic survival. And there is no element of society that more broadly adds to all three of the components of sustainability than does historic preservation. And if we get bogged down in arguing for a couple of more points on some LEED scoring system we will have lost the battle. Green buildings are not a synonym for sustainable development. The Trust's sustainability initiative was begun as "Beyond Green Buildings". If we are to be relevant in fifty years, now is the time to move beyond green buildings.

Some of you may have been involved in the rather esoteric discussions over the last year on the phrase historic urban landscape. Sometime in the next year UNESCO is going to adopt a protocol on historic urban landscapes. What are historic urban landscapes? Historic cities. Why don"t they just say, "historic cities"? There's some obtuse reason dealing with the fact that the phrase "historic cities" is not found in the World Heritage Convention. But there is a more subtle concept here. Think about the natural landscape - it inherently changes over time. The conservation of the natural landscape means to manage its evolution over time, not its preservation at a fixed point in time.

To be relevant that's how we should approach our cities - to manage their change over time, not fix them at a point in time. I chose two definitions from my American Heritage Dictionary: preserve: to keep in perfect or unaltered condition; and conserve: to protect from loss or depletion. For our relative handful of national monuments, to preserve is probably what we should strive for. But for the vast majority of the historic buildings in America, for the Places that Matter, I think we want to conserve them.

That's why to be relevant, I think our movement should join most of the rest of the world and be about heritage conservation, rather than historic preservation.

Two final recommendations for relevancy in the coming years. First, historic preservation is too important on too many levels to be buried in the bureaucratic basement of the Department of the Interior. It should become a key element of a new cabinet level Department of Sustainable Development.

Second, I hope there is no doubt about my admiration for Dick Moe. He is by far the best president the National Trust has ever had and I hope he stays in that position for years to come. But when he does decide to retire, I think it's time that we acknowledge a reality in the American preservation movement - that it overwhelmingly owes its existence and success to the efforts of women. The next National Trust president should be a woman.

Those of us you've heard from here today - Dick and Peter, Myrick, Valecia and I - have all done our best to make historic preservation relevant, and will continue to do so for years into the future. Years into the future, but not fifty years into the future.

The opportunity exists for heritage conservation not just to become more relevant, but to increase its relevance a hundred fold. That's the challenge that will be left to others in this room. It won't happen without you. But America will be not just a more sustainable country, but a better country because of what you will do.

Thank you for that, and thank you for having me here today.

@ Donovan D. Rypkema, 2009
PlaceEconomics
1785 Massachusetts Avenue, NW
Washington, DC 20036
202-588-6258
DRypkema@PlaceEconomics.com
www.PlaceEconomics.com

Rypkema Testimony at European Parliament Hearing

On March 5th, I had the honor of testifying at a European Parliament hearing on the Economic Role of Heritage in a Time of Financial Crisis. Below is my testimony.

Thank you Dr. Gutiérrez-Cortines for inviting me here for this important hearing.

Europeans generally understand the components of sustainable development: environmental responsibility, economic responsibility, and social/cultural responsibility.

We have known for some time that unless we make significant changes quickly, our environment is not sustainable. What we have learned in the last 120 days is that we have built our economy on foundations and assumptions that are also not sustainable.

So governments have two simultaneous challenges: how to get the economy rolling again, and how to restructure our economies so that they become sustainable. Heritage conservation has a central role in responding to both of those challenges.

Counter-cyclical economic strategies should be both efficient and effective. Heritage conservation meets that test with projects ready all over Europe the funding of which would put people immediately to work. Heritage conservation strategies target the construction trades – one of the industries most affected by this recession. Simultaneously, there is a shortage of craftsmen in a variety of restoration skills. So job training, job creation, and a life time profession can be encompassed within the same strategy.

Those aren’t just jobs. They are good, well-paying jobs, particularly for those without formal advanced education. They are not make-work jobs; they are real, productive jobs.

Counter-cyclical strategies should target long term capital improvement projects. Heritage buildings are certainly capital assets but also, almost by definition, are long term in perspective – how long they have lasted already and how long they can last into the future if we protect them.

Counter-cyclical strategies should create jobs and generate personal income. Heritage conservation is a labor intensive activity with 60 to 70 percent of the total expenditure on labor rather than materials. This has a significantly greater initial impact on a local economy than does new construction, but also much larger secondary impacts. Once installed, materials don’t spend any more money. But the carpenter, plumber, and electrician each spend their paycheck locally on a haircut, groceries, and paying local taxes.

Since this recession is world-wide, counter-cyclical strategies should have widely dispersed benefits. Because heritage buildings are spread throughout Europe and are located in both the largest cities and the smallest villages, a heritage-based strategy automatically has wide-spread benefits.

Counter-cyclical strategies should be directed toward projects that are catalytic to other economic activity and leverage public funds with private investment. One of the most impressive economic characteristics of heritage conservation is how the investment in one building tends to spur investment in nearby buildings. Further, many European countries have developed incentive programs through which public investment is matched two and three and four to one by private investment, effectively leveraging scarce public resources.

Counter-cyclical strategies should advance specific public policy initiatives. At the European Union level and in virtually every country there are dozens of policy declarations supporting heritage conservation, not just for economic development, but for social and cultural advancement, poverty alleviation, housing, environmental considerations, education, and others.
In recessions a variety of factors affect the implementation of large scale plans. Financial constraints, political conflicts, and environmental concerns are all reasons that large projects are often delayed or shelved. Heritage conservation, however, can be done at virtually every scale, from the smallest shop building to massive revitalization of large urban areas. Smaller projects can proceed while larger ones are still on the drawing board, thus providing a measure of employment and income stability to a local economy.

Finally counter-cyclical strategies should advance sustainable development.

If we return to the graphic representation of sustainable development, we are today in an environmental crisis, and economic crisis, and in many countries if the social and cultural assets aren’t in crisis they are at least in jeopardy.

As we restructure our economies to be sustainable, heritage conservation should play a major role.

What would a sustainable economy look like? I would suggest it would have seven characteristics.

First, a sustainable economy would be based on using local assets.

Second, sustainable economic development would depend primarily on the private sector, particularly small business.

Third, a sustainable economy would participate in economic globalization but mitigate cultural globalization.

Fourth, sustainable economic development strategies would acknowledge the contribution of quality of life to economic competitiveness.

Fifth, sustainable economic development would not be a zero sum game where for one city to win another has to lose.

Sixth, a sustainable economy would advance the cause of environmental responsibility.

Finally, a sustainable economy would advance the cause of the social/cultural responsibility.

How does heritage conservation fit the criteria for a sustainable economy?

Start with local assets. Obviously, the historic buildings themselves are local assets, but it doesn’t stop there. Heritage buildings are invariably where millions of Euros of infrastructure investment has already been made by previous generations. All too often that infrastructure is left unrepaired and underutilized as we substitute peripheral development for neighborhood reinvestment.

One of the great success stories for cities and for heritage conservation has been center city revitalization. In every European city I have visited that has experienced an economic rebirth of its core, heritage conservation was a key component of the success.

Next a sustainable economy is orientated toward the private sector, particularly small business. The next panel will discuss opportunities for SMEs so I needn’t say much here other than this: 70% of the jobs and nearly 70% of the European GDP comes from small business.
The heritage industry itself is largely made up of small businesses – contractors, architects, conservationists, historians, consultants. Unlike building highways or skyscrapers where the bid winners are invariably giant, multi-national firms, on heritage projects the expertise is usually in small firms who spend their profits at home.

Number three on my list was globalization.

What neither the supporters nor the critics of globalization understand is that there is not one globalization but two – economic globalization and cultural globalization. For those few who recognize the difference, there is an unchallenged assumption that the second is an inevitable outgrowth of the first.

I would suggest those are two different phenomenon, which while interrelated, are not inexorably linked.

While there are sometimes painful disruptions, on a composite basis economic globalization has far more advantages than disadvantages. But cultural globalization has few if any benefits but has significant adverse social and political consequences in the short term and negative economic consequences in the long term.

If cities are to succeed in the challenge of globalization, they will have to be competitive not only with other cities in their region, but worldwide. However, their success will be measured not just by their ability to foster economic globalization, but equally in their ability to mitigate cultural globalization. In both cases, a city’s historic built environment can play a central role.

Globalization means change — change at a pace that can be disruptive politically, economically, socially, and psychologically. Adaptive reuse of the historic built environment can provide a touchstone, a sense of continuity that helps counteract the disruption which economic globalization tends to exacerbate.

Next, sustainable economic development strategies would recognize that quality of life is a major component of economic competitiveness and that knowledge workers in particular place a high value on quality of life criteria in their choice of where to live and work.

When we finally recover from this economic chaos, the European economy will resume a sizable shift in its economic base and the nature of doing business.

Much of the “product” produced by European workers is knowledge and information. And those commodities can be produced virtually anywhere and can be transported for nearly no cost. This means that more businesses and their employees will be locationally indifferent.

I don’t know the numbers in Europe, but today in America perhaps 20 percent of American businesses and a third of American workers can literally be located anywhere. How will that choice be made? On the quality of life the city provides.

What constitutes “quality of life”? There are many possible variables including good schools, public safety, the weather. But when the physical attributes of a place are measured, the historic built environment is a significant quality of life contributor.

From a European perspective, economic development should not be a zero sum game. But that’s how most economic development in the past has been. For Barcelona to recruit an industry Belgrade had to lose it. When for every winner there has to be a loser is the definition of a zero sum game. But from a European perspective, what’s the sense of that? There is no net economic benefit, just a shifting from point A to point B.

But a heritage conservation based economic development strategy is not that way. For one community to effectively use its heritage resources in no way precludes another city from doing the same. To the extent that they both use heritage buildings, both are advancing sustainable economic development.

So far I’ve only focused on sustainable economic development. But sustainable economic development has to advance the cause of the environmental component of sustainable development. How does heritage conservation do that?

We could begin with solid waste disposal which is increasingly expensive in Euros and in environmental impacts.

Let me put this in context. We all diligently recycle our aluminum cans because we’re told it’s good for the environment. Here is a typical North America commercial building – 25 feet wide and 120 feet deep. Let’s say that today we tear down one small building like this. We have now wiped out the entire environmental benefit from the last 1,344,000 aluminum cans that were recycled. We’ve not only wasted an historic building, we’ve wasted months of diligent recycling. And that calculation only considers the impact on the landfill, not any of the other sustainable development calculations like embodied energy.

Embodied energy is defined as the total expenditure of energy involved in the creation of the building and its constituent materials. When we throw away an historic building, we are simultaneously throwing away the embodied energy incorporated into that building. So we start with the energy embodied in the building then add the energy expended tearing it down and hauling it to the landfill. What have we wasted? Over 212,000 liters of gasoline.

Much of the “green building” movement focuses on the annual energy use of a building. But the energy embodied in the construction of a building is 15 to 30 times the annual energy use.

Razing historic buildings results in a triple hit on scarce resources. First, we throwing away thousands of Euros of embodied energy. Second, we are replacing it with materials vastly more consumptive of energy. Third, recurring embodied energy savings increase dramatically as a building life stretches over fifty years. You’re a fool or a fraud if you claim to be an environmentally conscious builder and yet are throwing away historic buildings, and their components.

A heritage building is a renewable resource when it is rehabilitated; it is nothing but landfill when it is razed.

Finally sustainable economic development would advance the cause of the social/cultural component of sustainable development. My professional practice is in the economic side of heritage conservation. But I truly believe that of all of the values of heritage conservation in the long run the economic value is the least important. The educational, aesthetic, cultural, and social values are far more important.

Heritage conservation’s role in helping us understand who we are, where we have been and where we are going is central to the social/cultural component of sustainable development.

Historic buildings are the physical manifestation of memory.

Now if we go back to the graphic representation of sustainable development I would suggest that heritage conservation is, in fact, the only strategy that is simultaneously environmental responsibility, economic responsibility, and social/cultural responsibility.

You cannot have sustainable development without a major role for heritage conservation, period.
The established definition of sustainable development is “…the ability to meet our own needs without prejudicing the ability of future generations to meet their own needs.”
The loss of historic buildings is the polar opposite of sustainable development; once they are gone they cannot possibly be available to meet the needs of future generations.

These are not normal times. We have a crisis in the economy and we have a crisis in the environment. Heritage conservation is certainly not the only strategy for reestablishing economic, environmental or cultural responsibility. But in all three areas heritage conservation is the one indispensible strategy.

Thank you for the opportunity to appear here today.

Heritage in a Time of Financial Crisis

This morning's New York Times had a story about plans in Texas to spend $181 million in stimulus funds to build a sprawl inducing highway outside of Houston. The Times headline is "Stimulus Ideals in Conflict on the Texas Prairie." And as evidence they quote President Obama as saying "The days where we're just building sprawl forever, those days are over."

But the Times is wrong. The problem is not that there are principles that are in conflict. The problem (as I've written before) is that there is no underlying set of principles whatsoever...or at least other than having a member of the House Ways and Means Committee thinking "oh, that sounds like an idea that would get me some votes."

So while today the US Congress is spending their three day workweek holding hearings on establishing the National Bank for Bad Loans, other legislative bodies are trying to learn what actually works as economic stimulus.

On March 5th in Brussels there was a European Union hearing on The Role of Heritage in a Time of Financial Crisis.

The hearing was organized and chaired by a Spanish member of the European Parliament Dr. Cristina Gutierrez-Cortines and opened by Portuguese MEP Vasco Graca Moura.

Witnesses included academic economists Xavier Greffe, Professor at the University of Paris I - Sorbonne and Dr. Romilda Rizzo of the Department of Economics and Quantitative Methods at the University of Catania in Italy. Professor Rizzo's new book The Heritage Game: Economics, Policy and Practice will quickly become the basic text for explaining cultural economics to non-economists.

Extraordinarily important was the testimony of Dr. Edmundo Werna of the UN's International Labour Organization (ILO). Among his comments were the following:

The restoration of buildings, roads and other elements of the built environment with heritage value is a labour-intensive type of activity. Therefore, it has high employment content. According to the ILO, experience has shown that for the same level of investment in local construction, the use of labour-based technologies can create between two and four times more employment.

In addition, the use of labour-intensive methods promotes small and medium enterprises, causes the drop of foreign exchange requirements by 50% to 60%, decreases overall cost by 10 to 30%, and reduces environmental impacts.

It also implies the increased use of associated local resources. These may include locally available materials, tools and equipment, skills and knowledge, as well as finance. This reinforces the percentage of investment that remains in the country and often in the locality of the works, reduces the dependence on costly imports, and stimulates the local economy.

Unlike the United States, Norway actually had a set of principles upon which their stimulus plan was based. I've written about the Norwegian approach earlier. At the hearing Dr. Terje Nypan of the Royal Ministry of the Environment explained both the what's and the how's of that country's strategy that in the end represented nearly 8% of the whole stimulus package. Why did the Norwegians give such a high priority to heritage? Here was Nypan's explanation:

• Labour intensive, more than new construction
• High multiplier effect; 1 direct job creates many indirect; more than most economic activities
• Most of the funding goes to salaries, little investment in machinery.
• Most materials are of local origin and are processed locally.
• The invested money remains in the local economy.
• Projects are planned and can be started immediately.
• Demonstrated broader income base for small and medium sized enterprises when
  economy turns
• Serves to upgrade artisan skills and secure the future for tradition based crafts and techniques.

Finally, three superb examples were presented from Germany, Cape Verde and Spain on how investment in the historic built environment was used as an economic development tool.

I had the great honor for being the opening witness at these hearings and will post my testimony in a subsequent blog.

But the lessons from this blog are threefold:

1. During this time of economic chaos there is a need for government action throughout the world.
2. Some countries are smart enough to actually ask "how should we be spending the taxpayers' money to provide an effective stimulus?"
3. When that question is answered, investment in heritage resources merits a high priority.

Not only are the French smarter, so are the Norwegians

(The blog below was written for an American readership and appeared on February 11th on my blog at www.PlaceEconomics.com. Because it deals with international comparisons, however, I've repeated it here.)

Earlier this week I wrote about the incorporation of $132 million a year for the next four years for the restoration of historic buildings in France. That was a specific part of President Sarkozy's economic stimulus plan for France. Like the US, France is suffering its most severe recession since the end of World War II.

This morning I get an email from my friend Terje Nypan who is in the Culture Ministry of Norway. Much of the national budget in Norway is dependent on oil. So when the oil price drops from $140 per barrel to $40, it obviously has a big impact.So the Norwegian government has adopted what they call their "Crisis Package" in the amount of about $685 million dollars. (If that number seems low compared to the $780 Billion stimulus package here, remember that the population of Norway is around 4.6 million versus 304 million for the US. )

But unlike the United States where the only criteria to make the bill seems to be having a friend on the House Appropriations Committee, in Norway they actually had a set of principles upon which their decisions were based. And here they are:

• The measures must have a speedy effect on the labor market
• The measures must have specific target objectives
• The measures must be limited in time
• The measures shall strengthen the Government in its policies for the environment and income distribution.

I happen to think this is an excellent set of principles. But others could have a different list. The trouble in the US is that there is no set of principles upon which we are encumbering 3 generations to repay.

And how did Norway commit their stimulus money to be consistent with these principles?

• Measures for increased energy efficiency $183,529,000
  
• Repair and development of railway system $198,976,000
  
• CO2 cleaning $147,129,000
  
• Footpaths/sidewalks and bicycle roads $ 76,471,000
  
• Nature management and Cultural Heritage $ 52,000,000
  
• Environment research on sea wind turbines $ 11,471,000
  
• Charging stations for electric cars $ 7,647,000
  
• Bio Energy $ 7,647,000
  

The Cultural Heritage portion of that was around $34,000,000 and was divided as follows:

• Rehabilitation and maintenance of privately owned, protected property $11.6 Million
  
• Technical and industrial heritage, vessels and centers $6.9 Million
  
• Rock art, archeology, and universal access $3.8 Million
  
• Fire safety for historic wood buildings, medieval and important churches $11.8 Million
  

Why did they do this? Because they learned in the last recession that: a) it worked putting people back to work and training workers for the future; and b) it met the principles they established.

Virtually all the line items in the Norwegian stimulus package are long term investments. Almost none in the US stimulus package are.

One more blog about the stimulus package then I'll let it go. What the hell, I'll never live long enough to have to repay any of it.

Why the French are Smarter than us Americans

(The blog below was written for an American audience and first appeared on February 9 on my blog at www.PlaceEconomics.com. But because it is international in nature, I've also posted it here)

Yeah, we have to have a stimulus plan. And one will pass this week. The latest iteration is the one crafted by a moderate Republican (Susan Collins of Maine) and a moderate Democrat (Ben Nelson of Nebraska). And as a militant moderate myself, I have to commend them for at least making some adjustments to the bottomless barrel of pork written by the Democrats in the House and the equally irresponsible "just say no" or "just say more tax cuts" approach by the Republicans.

In this morning's Washington Post Senator Arlen Specter, one of the three Republicans likely to vote for this latest version, said that the $780 Billion Dollar package would create or save 4 million jobs. (As an aside "create or save" used by both Specter and President Obama is bullshit...why? It means you have already defined success for yourself. If not a single new job is created you can still say, "Yeah, but I saved 4 million jobs" and it's impossible to disprove that.)

But bullshit aside, make the calculation. $780 Billion divided by 4 million jobs equals $195,000 per job.

Now France has as big a case of economic chaos as we do. Their economy shrunk last year the most since World War II and their unemployment is expected to reach nearly 11%.So, of course, President Sarkozy had to introduce his own economic stimulus plan. But here's a big piece of his approach - committing 100 million extra Euros per year ($130 million) for the restoration of historic monuments in France for the next 4 years. So about 1.5% of his stimulus package is going toward heritage conservation.

By the way Sarkozy isn't the only one. In March there is going to be a hearing in Brussels of the European Union on using heritage conservation as a counter-cyclical economic development strategy.

So what if we took this approach as part of our stimulus plan? Of course in the US we are much more likely to use tax incentives to attract private investment rather than direct public funding. And we've done this effectively with the Historic Rehabilitation Tax Credit.

So let's double the tax credit for the next 4 years (from 20% to 40%) and let's assume that costs the US taxpayers the annual equivalent of $130 million per year. What would that mean? Nearly 20,000 jobs per year for each of the next 4 years. (Also, by the way, when economists and politicians say "job" they mean one full time job for one year. So if a stimulus package creates one job in the highway building business, for example, that lasts for the next four years, that will be counted as 4 jobs).

The cost to the US taxpayer of historic preservation as stimulus? $6875 dollars per job...for the same amount of money that is required to create 1 job in the rest of the stimulus package, 28 jobs would be created. And this would represent less than 1/10 of 1% of the stimulus spending, not France's 1.5%.

Furthermore, this is Sustainable Economic Development! A tax credit to encourage Americans to buy even more cars isn't.

France might not produce the best armies, but they are better at wine, better at cheese, and sure as hell better at figuring out a stimulus plan than we are.

World Monuments Fund, Time Honored, and John Stubbs

In 1965 a new historic preservation organization was founded - the World Monuments Fund. In the 40+ years since its founding, few organizations have had as large an impact internationally on our built cultural heritage as has the WMF.

While the WMF has numerous programs and projects, its largest and best known is the biennial World Monuments Watch. Every two years since 1996 WMF publishes and broadly publicizes its list calling "international attention to cultural heritage around the world that is threatened by neglect, vandalism, conflict or disaster."

Since this program began, nearly 550 sites in 79 different countries, on every continent (yes, including Antarctica) have made an appearance on the list...a few more than once. While the primary purpose of the list is to bring to the fore imminent risks to the built heritage of our world, the WMF does more than point out the problems. Nearly half of the listed sites have received funding which over the years has totaled more than $50 million in WMF grants which have leveraged investment by others of over $150 million.

Reflecting the incredible diversity of the world's cultural heritage, listings have ranged from such international icons as the Taj Majal and Angkor Wat to far less known sites such as Levuka Township in Fiji and the Humberstone and Santa Laura Industrial Complex in Chile. To get a sense of the range of sites one only needs to look at the 2008 World Monuments Watch list of Most Endangered Sites.

Because of the magnitude of this effort, WMF begins soliciting nominations for the next listing nearly two years in advance. Already accessible are guidelines for nomination for sites for the 2010 list, which are available in English, Arabic, French, Italian, Spanish, and Chinese. Anyone - government, NGO, private person, local organization - can nominate a site, but now is the time to act. The deadline for submission of the nomination and related materials is March 15, 2009, so get moving!

Why has the World Monuments Fund become so successful? I think there are four reasons; 1) they have a fundamentally good idea; 2) they know how to partner; 3) they bring significant resources (both human and financial) to the table; and 4) they have a superb staff.

Although it is a non-profit organization (NGO) the World Monuments Fund operates like a great entrepreneurial private sector company. And they have identified this "niche" in the market that no one else is as comprehensively filling.

The partner list of the WMF is extensive and varied and ranges from American Express, the Aga Khan Trust for Culture, the World Bank, and the Getty Conservation Institute on the international level and hundreds of national, regional and local governments and organizations around the world.

I noted earlier the direct grants WMF has made and the additional dollars those grants have catalyzed. But on other projects they also bring expert technical skills to address the specific issues of a particular site.

But of the four reasons for success perhaps the most important is the people of the WMF. President Bonnie Burnham is the personification of the adjective indefatigable. Executive Vice President Lisa Ackerman came to the World Monuments Fund from the Kress Foundation, is well known in historic preservation circles and was the first recipient of the Ann Webster Smith Award for International Heritage Achievement given by US/ICOMOS. Recently joining WMF as Director of Research and Education is Erica Avrami about to finish her PhD at Rutgers University and with previous experience at the Getty Conservation Institute, as a preservation consultant, and as an adjunct faculty member at Pratt and the University of Pennsylvania.

But also at the WMF (and here's the disclaimer - he's a long time friend) is John Stubbs. I highly doubt that there is another person on the planet who has physically been to as many sites of international cultural importance as has John. I don't know if there are any of the sites that have been listed on the Monument Watch that John has not visited, but if there are any, damn few.

So John has put this incredible hands-on experience into a new book - Time Honored: A Global View of Architectural Conservation. If, anywhere in the world, you are teaching a course on international heritage conservation, this should be your core text. If you are a student in historic preservation and have an interest in international issues, buy this book. If you are a professional, a civil servant, an interested amateur, or an advocate for cultural heritage in your own country, but want to understand your efforts in an international context, this book should be your next read.

The book ranges from the academic (Nomenclature Used in International Conservation Practice) to the theoretical (Who Owns the Past?) to the history of conservation (The Forging of a Discipline: The Late Eighteenth to Early Twentieth Century) to the very practical (Options for Involvement).

There is one downside to reading the book, however. Looking at the photos of places John has visited and sites that have been assisted by the World Monuments Fund, you'll wish you had his job.

Celebrating our Urban Heritage

Seven years ago Marc Weiss, former college professor and official in the Clinton adminstration, founded Global Urban Development (GUD). The organization describes itself as a worldwide network of expert thinkers and practioners. The accomplishments of GUD over this relatively short period are impressive.

GUD has a Board of Directors composed of men and women from 25 countries as well as a 200 member Advisory Board where no less than 50 countries are represented. Outside of the United Nations structure, there can't be many international NGOs with this broad a base geographically.

The GUD network is organized around seven major issue areas: Building Gender Equality in Urban Life, Treating People and Community as Assets, Facing the Environmental Challenge, Global Urban Development, Improving Public Health, Metropolitan Economic Strategy, and Celebrating Our Urban Heritage.

This last committee I am most pleased to co-chair with Luigi Fusco Girard of the University of Naples and Belinda Yuen of the National University of Singapore. Through these associations I have been fortunate to have participated in events at both of those institutions in the last few years.

One of the products of GUD is Global Urban Development Magazine, an online magazine that is published periodically. Just out is the most recent special issue which focuses on Urban Heritage. Included are articles on successful heritage strategies in Tunisia, Spain, Laos, the US, Russia, China, Lithuania, Morroco and projects focused on the aboriginal peoples of Australia and New Zealand.

There are innovative programs taking place in heritage conservation around the world, and Global Urban Development has spotlighted several worthy of celebration.