WorldCity Business Magazine

X Roads; Miami: World city or Third World Country?

by Suzy Valentine

The Third World lost credibility as the term to describe the poorer nations on earth years ago, but that didnt stop Rep. Tom Tancredo from using it as a
pejorative term for Miami when he visited Palm Beach in November.

But what the Colorado Republican, famous for his strong opposition to illegal immigration, sees as a disadvantage the 66 percent Hispanic contingent in the city others see as a bankable asset.

A developing city rather than a developing nation, Miami takes its multiculturalism and creates a delicious melting pot, an ollapodriga (Spanish stew) or pot pourri whatever your preference or native tongue, according to our commentators.

One of our experts, George Yoss, the Managing Partner of Coral Gables-based Adorno & Yoss, explains how his firm has turned this into an advantage. It is now the most diverse law firm in the United States.

The New Yorker stands with another legal transplant from the Northeast and business leaders who have lived in Africa, Asia, Europe and the Middle East, all of whom say that Miami has welcomed them with open arms.

That feeling may be at odds with those of Tancredo.

In November, he said of Miami: “It has become a Third World country. You just pick it up and take it and move it someplace. You would never know youre in the United States of America. You would certainly say you’re in a Third World country.”

At the time, Miami Republican Rep. Ileana Ros-Lehtinen took issue with Tancredo, saying he was “flat out wrong” and extending the following hospitality.

“Come on down, Tom, the waters fine.”

There are many in our midst who, like Ros-Lehtinen, believe that Miami offers at least as much as any other world city, maybe more. Diversity for them is part of its appeal.

If anything business leaders here say we need to add some more diversity, become more cosmopolitan, even add some Asian accents. WC

Jean-Michel Caffin, regional cheif executive north america, inspecion, aerospace & transport/logistic services, Bureau Veritas

“We are relocating our division’s global headquarters to the United States, to Miami.”

These were the fateful words of my American boss, in 1998 when I worked at British multinational, Intertek (formerly Inchcape) Testing Services Group.

This is how I arrived in Miami, with my family nine years ago, to take up the position of Executive Vice President & Head of Global Business Development of ITS’s Foreign Trade Supervision.

During that time, I have seen Miami (and Florida) stake claim to world-class status.

Numerous global corporations followed.

Miami has conducted a spirited campaign to attract the secretariat of the FTAA.

Our business schools (including FIU’s College of Business Administration) are gaining credibility in global education.

Art Basel Miami Beach has placed us on the world’s arts and culture map. High-profile international conferences routinely take place here. Major announcements are made here by U.S. or foreign political leaders.

To Latin America, we have become a beacon, a base for trade and banking.

Every day, I conduct business in English, Spanish and French, transitioning between languages and business cultures.

I have lived in seven other countries and worked in cosmopolitan cities including Paris and London.

In these places, I felt (or was made to feel) a stranger in a foreign land; always aware I was in someone elses country.

The magic of Miami is that my family and I felt at home here, not alien.

I am still amazed at social events by the casual mix of “non-American” accents, names, corporations.

Miami is a place where my nationality and place of birth are more the object of interest than a cause for concern

Although an exceptionally diverse U.S. city, Miami could be more cosmopolitan.

By that, I mean that it needs to attract a greater number of European, Asian, perhaps Middle Eastern and African (as well as other North American businesses).

That way we can ape Dubai with its rich mosaic of cultures and ethnic groups, to become the heart of a monolithic region.

Miami may not be Dubai or Hong Kong, nor even Singapore yet, but I believe it is on its way to the extra-territorial regional hub status those cities enjoy.

Vincent Daniels, Executive Director of Executive Education, H. Wayne Huizenga School of Business and Entrepreneurship, Nova Southeastern University

Miami, and by extension South Florida, is a crossroads for business between South and Central America and the rest of the world.

Companies in the United States and Europe are very aware of this role and are taking advantage of this gateway
to house Latin American headquarters.

Probably because of the Pacific Basin commonality, the high-growth countries of South and East Asia still (erroneously) view Los Angeles as the gateway to Latin America. We need to be more effective at bringing in students from Asia to learn business in our universities.

They should be enticed to come here not only to learn U. S. business theory and practices, but also to become familiar with the markets and languages of Latin America. These students will be the advance guard to educate Asian companies of the great value South Florida plays in this crossroads role.

As more Asian companies set up Latin American headquarters in this region, we will add greatly to the diversity of business, and spread our economic risk more widely, as trade is often a two-way street.

The economy of South Florida can be less susceptible to the economic vicissitudes of Latin America by having a diverse base of business activity present.

Claudio Stivelman, Principal, Shefaor Development

With a median age of 39, Miami continues to be the number one location anywhere in the world for second homes.

The city is home to such a slew of cultures, creeds, races and religions in a recent survey by The Economist magazine it was second only to Dubai as the most diverse metropolitan area in the world.

More than half a million people have moved into the tri-county area since the turn of the millennium and demand for housing has risen 42 percent.

The accessibility to Central and South America and Europe from two major portals, Miami and Fort Lauderdale Hollywood international airports, enhances Miami’s allure.

Ramiro Ortiz, President and Chief Operating Officer, BankUnited

Having grown up in South Florida, I am amazed and inspired by the growth and the status Miami has garnered over the past five decades to become an international business hub.

Where there were once empty fields, there are today residential and retail developments, office buildings, condominiums and cultural attractions.

New residents, foreign investors and national businesses lured to the area’s rich opportunities help to fuel the local economy.

For the banking sector, there is no better market than South Florida. Every day, more than 1,000 individuals move to Florida yet the state’s unemployment rate is traditionally lower than the rest of the nation’s.

In addition, entrepreneurial business creation and growth is significantly higher than in the rest of the country. It is inspiring and rewarding to see our clients many of whom started with a basic checking account evolve and flourish over the years from single-location mom-and-pop companies to large thriving operations.

What distinguishes South Florida is the convergence of multiple cultures in one rather small geographic area. No one community, from Miami-Dade County stretching north to the state capital, is identical to another.

Each neighborhood reflects the influences of the very distinct cultures and passions of its residents and local businesses. Yet, the vast array of ethnic backgrounds blends beautifully to create a region rich in culture and opportunities.

Kimberly Palmer, Regional Managing Director South Florida Region, Merrill Lynch

More than 25 years of global financial services experience have afforded me opportunities to live throughout the United States and Europe (most recently London), as well as to travel extensively in Latin America and Asia. I can say, without hesitation, that South Florida is among the most cosmopolitan regions I have had the pleasure to serve. In fact, according to U.S. Census figures, no major U.S. metropolitan area has a larger foreign-born population than does South Florida. Many visitors or temporary residents in South Florida also come from outside Florida, be they snowbirds from Canada and the northern United States, Latin Americans from as far away as Argentina, or the increasing number of Europeans who have established residence or set up companies here. This makes for a mix of people as diverse as are found in the cities of my previous posts.

Mark Zelek, miami Managing Partner, philadelphia-based law firm Morgan Lewis bockius

A Connecticut native transplanted here, I have seen Miami’s global profile grow tremendously over the past 20 years. One way in which this can be measured is by looking at the burgeoning membership of the South Florida Group of Regional Counsel the association of in-house lawyers for multinationals operating here.

More recently, one of our attorneys, Salvador Juncadella, spearheaded a joint venture between the American Arbitration Association and the Inter-American Bar to make Miami a headquarters for international commercial arbitration.

Trade and multinational business are what make Miami a world city. Of course, geography dictates our destiny as a crossroads of the United States, the Caribbean and Latin America.

Another driving force is the multiculturalism. Several major North American cultural groups blend in the melting pot here, and over the past few decades, they have been joined by representatives from most Latin American and Caribbean nations.

I grew up on Cape Cod in a typical American household. After graduating from Yale and Columbia Law School, I married Alicia Castilla, a Cuban American and, within a few years, we had moved to Miami. Soon, I became fluent in Spanish and Latin American labor law.

Our four children did not speak English until they went to school, and now they take with them into the broader, U.S. marketplace a unique, multicultural skill set. The same is true of hundreds of thousands of other families in South Florida. And, what makes Miami’s hemispheric multiculturalism especially advantageous is that it coincides with a much larger trend impacting the United States. We haven’t just seen the future; we are the future profile of the United States.

As someone who went to law school in New York City and started my legal career there, I know Miamis hemispheric identity is stronger than New York’s.

Yes, our ethnic diversity is more regional, not representative of every sliver of the world’s ethnic pie as is New York. But, equally, we are not tied to a single Latin nation such as gateway cities in Texas or California.

The chief risk for Miami, as with any world city, is fragmentation. There are too many disparate interests without a common goal. Yet I am confident fragmentation will be manageable as we continue to grow. Free enterprise the free flow of human and financial capital is the ultimate integrator.

George Yoss, Managing Partner, Adorno & Yoss

Years ago, being a good lawyer was enough to set you apart from the rest, but that is no longer the case. The practice of law has changed.

Today’s environment is a very competitive one, from the standpoint of attracting clients to developing the internal infrastructure to serve them. Then there is recruiting, growing and retaining talent. These pressures have forced law firms to focus on what distinguishes them. Nowhere is this more pertinent than in Miami.

About 10 years ago, as a result of a strategic planning exercise, we realized that being a minority-owned law firm was not only part of our fabric but a competitive advantage. Although it was not fashionable back then, we made hiring decisions that emphasized and led to the creation of what is the largest minority-owned law firm in the United States.

It shaped our growth but it is also a reflection of how Miami has developed.

It shows what law firms and other businesses must do to accurately reflect the communities in which they operate.

In 10 years, we have grown from a 70-member to a 250-member law firm and from five Florida offices to 16 nationwide. In diversity terms, we are 20.3 percent Hispanic, 15.4 percent African American and 26 percent women.

Miami has been at the forefront of diversity issues for years because the city is so culturally diverse. I joined the firm in 1987 from New York. We live and breathe diversity in this town and even for a refugee from the Northeast like me this is refreshing and inspiring.

How Miami is seen by Europe, South America and the rest of the United States also counts for a lot. Business comes to Miami as an entry point to this country, regardless of its final destination. Much like New York, we are perceived of as a go-to city for trade and investment.

However, Miami faces strong and growing competition from metropolitan centers in California, from cities in Texas, and from Atlanta. To remain competitive, we need to resolve some critical issues. We need to improve on the quality of education, particularly at the K-12 level, in terms of quality and cost.

We need to finalize the expansion of the Port of the Miami and Miami International Airport without any additional budget overruns.

We must tackle property taxes because if we do not do something about this, it will have a negative impact on who is considering Miami as a place to live or invest.

Alan becker, co-founder, and Peter Quinter, shareholder, Becker & Poliakoff

A big part of Miami’s allure is the atmosphere which is conducive to doing international business and a multicultural and multilingual workforce.?We have a transparent?court system, a superb international banking system, world-renowned medical centers,?numerous institutions of higher learning and a stable local, state and national government. We have desirable residential and commercial real estate.

A world city is one that people want to visit for business and pleasure and which is accessible for both.?Miami International Airport and the Port of Miami are among the busiest in the country for cargo and passengers. We are the cruise capital of the world. We have many more flights from MIA to cities in the?Americas than any other airport and that includes airports in Houston and Atlanta. Broward Countys Port Everglades and Fort Lauderdale Hollywood International Airport significantly strengthen Miami.?

Whether Miami is or remains a world city depends in great part on the national policies coming out of Washington, D.C. Whether from Capitol Hill or the White House, the anti-immigrant, anti-terrorism, anti-privacy?obsession?since the tragic events of 9/11?has significantly and negatively affected the perception of the United States. Although homeland security is important, it must be reasonably balanced with the efficient transportation of people and cargo into and out of the United States. If it is not, the big losers will be international trade centers such as Miami.