Secretary General of the Nordic Council of Ministers Mr. Dagfinn Høybråten Nordic Edge Expo, Stavanger 27 September 2017

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1 Secretary General of the Nordic Council of Ministers Mr. Dagfinn Høybråten Nordic Edge Expo, Stavanger 27 September 2017 The Nordic Model - A Starting Point for Smart Cities I have been looking forward to coming to Stavanger today to talk about the Nordic model as a starting point for smart cities. Now, evidently this title was given to me by the organizers. But I actually believe this is a very good place to start looking at the Nordic model when trying to determine why the Nordic countries have been so successful in developing societies which top many international rankings on welfare, equality, innovation, environmental protection and even happiness. In fact I had some of my staff look into how the Nordics as a whole would do in these international rankings if we entered as a region and not as individual countries. Their answer was clear: our region would be within Top10 in all the rankings we looked at even within Top3 in more than half of them. Now, such rankings should always be looked at with a grain of salt. But what they illustrate is what we know to be true: the Nordic region is a good place to live. On this background we must ask ourselves: Why is this so? What can we learn from this? And what can we do better? Here I believe the Nordic model holds many answers. Because societies which function well are a good starting point maybe even a prerequisite for developing smart cities. Nordic cooperation But before I go further into this, let me just say a few words about the organization I represent here today. As secretary general of the Nordic Council of Ministers I represent the official cooperation between the governments of Sweden, Finland, Norway, Denmark, Iceland, Greenland, Faeroe Islands and the Åland Islands. The Nordic cooperation is quite unique. It is one of the oldest and most comprehensive regional partnerships in the world. It was established in the aftermath of World War II. And early on, the cooperation resulted in ambitious decisions creating a common passport union, a common Nordic labor market, a common market for education and a convention on social security. Since then, Nordic citizens and companies have moved freely between the Nordic countries living, working, studying and doing business wherever they want in the Nordic region. The Nordic model The decision to cooperate was bold. It was based on a vision of an integrated Nordic region. On an understanding that together we are stronger. And on the fundamental values which the Nordic countries

2 share: democracy, trust, openness, tolerance, equality, sustainability, creativity and not least the unique value of each individual human being. These values are also the foundation of the Nordic model. The essence of this model is somewhat debated but my understanding of this concept is welfare societies which balance market mechanism and public intervention. Societies characterized by both flexible and secure labor markets, large investment in human capital, extensive work oriented public safety nets, relatively high taxes and efficient public sectors. Over a long period of time the Nordic governments have delivered relative economic equality, low levels of corruption, and a well-functioning public administration that enjoys the legitimacy of its citizens. These are some of the ingredients in the recipe for the Nordic Model. This Nordic way of organizing society has shown itself to be very rational. It has led to strong and innovative economies as well as affluent and relatively equal societies. I noticed that last year the OECD committed itself to redefine the growth narrative to put people s wellbeing at the center of governments efforts. This is what Nordic governments have been doing for many years now. Realizing that growth is not just a number. Quality of growth is essential. This line of thinking has led to green growth in the Nordic countries growing our economies and at the same time reducing our greenhouse gas emission. This line of thinking has led to some of the most gender equal societies in the world - where men and women contribute and benefit on an increasingly equal footing. And this line of thinking has led to societies characterized by high levels of social trust for the individual and within society. Trust the Nordic Gold The Nordic societies benefit in many ways from this high levels of social trust. A society with a high level of social trust has fewer formalities, conflicts and legal processes. In economic terms, social trust reduces transaction costs in the economy. This is an evident advantage. But the effects of trust extend far beyond purely economic aspects. It also has a positive impact on several social matters. For example, people with greater levels of social trust are more inclined to perceive that they have better control over their lives. Trust is also regarded as an important component in promoting involvement in society, while at the same time reducing crime and increasing individual happiness. A hundred years ago Lenin, the Russian revolutionary, said: trust is good, but control is better. From a Nordic perspective we beg to differ: trust is much better than control. So in many ways, I believe trust is a valuable asset to the Nordic societies. An asset we should be eager to protect. I would go so far as to call it the Nordic Gold. 1 Also when we talk about Smart Happiness trust 1 Nordic Council of Ministers, Ulf Andreason: Trust the Nordic Gold (2017)

3 is an important ingredient. Trust fosters happiness and wellbeing. And it lays a foundation for development and innovation. Nordic Solutions to Global Challenges When we talk about these positive characteristics of the Nordic societies at times it ends sounding like a fairy tale. Obviously that is not true. Also the Nordic countries have challenges and problems to address. But we have found some good solutions. In light of the immense challenges we all face not least when it comes to climate change and sustainability we should share the good solutions with the rest of the world. In order to reach the 17 Sustainable Development Goals defined by the UN Agenda 2030 we need visionary leadership on a global scale. This is why the Nordic prime ministers have decided to launch a common initiative: Nordic Solutions to Global Challenges. With this initiative, the Nordic prime ministers want to invite the world to share knowledge on three priority themes: Nordic Green, Nordic Gender Effect and Nordic Food and Welfare. The five Nordic prime ministers launched this initiative at their common meeting in Bergen in May this year. Over the next three years we will work to realize their vision in a number of concrete cooperation projects with countries and regions around the globe including North America, India, East Africa and China. The demand for Nordic solutions is vast. I had the opportunity to see this for myself when visiting China earlier this year. During this visit I met with vice foreign minister Wang Chao and we agreed on a basis for a strengthened Sino-Nordic cooperation. Also on this background I am very pleased to see that so many Chinese delegates participate in this year s Nordic Edge Expo. I really hope that many good contacts will be made during this conference to the benefit of both China and the Nordic region. Having visited some of the fast-growing cities in China I am well aware that knowledge sharing should go both ways. Nordic Sustainable Cities In light of the focus on smart cities let me conclude by saying a bit more about one of the elements in the prime ministers initiative: the flagship called Nordic Sustainable Cities. This flagship is led by Nordic Innovation which is an institution under the Nordic Council of Ministers and one of the partners of this conference. Based on the UN Sustainable Development Goal #11 the Nordic Sustainable Cities initiative focuses on how the Nordic region can contribute to developing more sustainable, smart and liveable cities in the world and at the same time boost our own competitiveness and export. With this initiative we want to connect Nordic companies with cities in North America, India and China to the benefit of both. The cities get good solutions to for instance water, energy and transportation issues. And new markets open to Nordic companies.

4 When talking about smart and sustainable cities, we must remember that cities are not just hubs for commerce, culture, and social development. They are also homes to people. To me this is front and center when debating urban development and smart cities. Focus should be on the impact this has on our citizens the people who have their homes and everyday lives in the cities. Yesterday Nordic Innovation had an event at this conference under the headline When smart meets human. Now, it is too late to invite you all to participate in the event of yesterday but I would encourage you to look at the White Paper on Nordic Sustainable Cities 2 which was launched by Nordic Innovation and another Nordic institution NordRegio at the event yesterday. This whitepaper looks at the values, tools and practices behind Nordic sustainable cities. Realizing that the Nordic way of building sustainable cities is in fact founded in the values of democracy, trust, openness, tolerance, equality, sustainability, creativity and not least the unique value of each individual human being the exact same values which the Nordic model of society grew out of. The whitepaper calls upon leaders to shift our understanding about cities from merely consequences of growth to opportunities to respond to and resolve environmental and social challenges. And it demonstrates that efforts to meet sustainability push technological developments, increase social awareness and lead to many alternative solutions to urban challenges. This is the Nordic experience. And this is the kind of approach we need not just in the Nordic region but also on a global scale. One concrete example of this is my current home, Copenhagen. Since 1990 the population of Copenhagen has grown by 50% - but over the same period of time carbon dioxide emissions have been reduced by 40%. This impressive development has been achieved among other by getting more people to use their bikes, increasing public transportation and providing environmentally friendly street lightening. This is the kind of concrete solutions which put the citizens at the center which we may share with the rest of the world. Like the American-Canadian author Jane Jacobs has said: cities have the capability of providing something for everybody, only because, and only when, they are created by everybody. Conclusion In the Nordic region we have faced many of the challenges which face rapidly urbanizing societies today. We have not always solved them perfectly. But along the way we have made valuable experiences. And we have developed concrete tools and solutions which have yielded sustainable results: - strong local democracies and strong municipalities - intense public-private cooperation, - and not least a Nordic population that sees the value of sustainable solutions. 2

5 This has led to quite smart, sustainable and not least attractive cities. This is the Nordic model in practice. Now we would like to share this experience with the world. Nordic companies can take the lead here. And if we do that together, we will be stronger. We can reach further and broader with our solutions. And we can become a more interesting partner a region than as individual countries or cities. The Nordic experiences to ensure innovative solutions for smart, livable and sustainable cities are at high demand across the globe. We stand ready to deliver. Thank you.