Michael Milken, Chairman, Milken Institute; Chairman, FasterCures / The Center for Accelerating Medical Solutions
Gov. Arnold Schwarzenegger tells Global Conference attendees that funding infrastructure projects is vital to the health of state and national economies.
Michael Milken introduced him as "governor of the planet" because of his dedication to green technology and infrastructure. Gov. Arnold Schwarzenegger explained that California, the world's sixth-largest economy, has fallen behind the rest of the world in terms of infrastructure. No building has taken place in the state during the last four years, while the state's population has continued to grow. "We need $500 billion to rebuild California in the next 20 years," said Schwarzenegger, adding that this cannot be done solely with the use of bonds. He stressed the importance of expanding public-private partnerships throughout the panel.
When asked whether a committee similar to the United Kingdom's newly created Infrastructure Planning Committee can be instituted in California, Schwarzenegger replied that it would be very difficult to accomplish because of bureaucratic and ideological obstacles that exist in California and throughout the United States. For instance, legislators in Sacramento would fight against it, believing that it would harm unions. Schwarzenegger wants to take the legislators to British Columbia, where such an entity has been successfully established.
The governor also spoke about his partnership with Gov. Ed Rendell of Pennsylvania, a Democrat, and Mayor Michael Bloomberg of New York City, an Independent.
Recalling recent catastrophes in the United States that have resulted from a lack of maintenance, Schwarzenegger warned that there may be future tragedies unless something is done to improve our country's infrastructure. Milken then discussed America's lack of investment in infrastructure as compared to other countries, especially emerging nations like China. When asked whether California can lead other states on this issue, the governor replied that the state has had a great deal of influence nationally and even internationally, and it can wield influence in the area of infrastructure as well.
Schwarzenegger stressed the importance of speaking to the public in terms that they will understand when encouraging them to vote on propositions. For instance, instead of using the term "infrastructure," politicians should talk about roads, traffic, and the benefits of their improvement on people's day-to-day lives. Concepts like "public-private partnerships" should be explained in comprehensible ways as well.
Milken brought up the speed of building, which is slower in California than in other countries. For instance, it took 15 years to construct the Getty Center in Los Angeles. When asked if it would be possible to reduce the time it takes to build in California, Schwarzenegger replied that because of over-regulation, we have become less competitive in this respect. He recommended streamlining regulations, while reiterating that he favors the use of bonds for financing rather than raising taxes. The governor also called for Republicans and Democrats to work together toward the goal of enhancing business growth, which is hampered by an aging and insufficient infrastructure. He believes that building infrastructure will directly improve the economy.
The governor is also an advocate of environmentally friendly technologies, such as solar and geothermal energy. He believes they are a natural fit in California, mentioning that The Wall Street Journal called green, clean technology "the new Gold Rush in California" When considering nuclear plants, he said that we must ask whether they are financially sound investments, and whether renewable energy may be the better way to go. He reiterated his commitment to expanding the role of green energy and eliminating coal plants. "Technology will save us all," Schwarzenegger said. While touting the potential of the electric car, he also expressed worry about Detroit falling behind in the automotive industry. And he praised all three presidential candidates as being "good on the environment," while he personally endorses John McCain.
Milken mentioned the fact that much of the American public — and even many in Congress — do not own passports and do not travel abroad. Schwarzenegger talked about the importance of global travel. "The world is my classroom," he said. Seeing high-speed trains in France traveling at 350 km/hour or a new airport erected in Shanghai in record time motivates the governor when he returns to California. "We can copy," he said, because there is so much innovation going on the world that California should learn from and replicate. He encouraged legislators in Sacramento to travel globally as well.
In terms of higher education in California, Schwarzenegger stated that we should "change the visa system to keep international students here, especially in the high-tech and biotech industries." Likewise, he emphasized that the U.S. immigration system must be reformed once and for all, so that necessary work force can enter this country legally and formally.
Global Conference 2013
Former Prime Minister Tony Blair, philanthropist Bill Gates and Strive Masiyiwa of Econet Wireless discuss advancing prosperity in Africa.
