The following summary from the Managing Asian Cities (MAC) Report is intended as an introduction to the Discussion Forums that cover the key components and issues contained in the report. Download the full MAC Report here
Asia’s cities are growing at a pace unseen before in human history. They are the engines of the region’s economic development. But as cities expand rapidly into the hinterlands and merge with neighboring city regions, coordination across agencies and jurisdictions becomes more complex, and vital services are at risk. Economic and environmental infrastructure is already inadequate in Asian cities, and now growing demand is greatly outstripping growth in supply.
Anticipating and planning for future spatial growth holds the key to successful development and management of cities and their environment. Special attention must be paid to the development of fringes of urban area, which are expected to accommodate much of city growth. Aligning transport and urban land use planning is probably the most important action required for sustainable and liveable development of Asian cities.
Cities are the largest contributors to climate change and also highly vulnerable to it. The future battle against climate change is likely to be largely won or lost in Asian cities, which are expected to contribute over half the increment in GHGs over the next 20 years. Energy savings are also critical to the sustainability of cities. Tested techniques of utility pricing and energy efficiency can change energy consumption patterns profoundly but Asian cities have been slow to adopt them.
Raising productivity and wages in the informal sector, which provides employment for 60% of the urban population, is important for expanding the opportunities of the poor in the cities. Rising poverty and inequality can lead to social stress, especially if basic services are not available to everyone. City governments need to ensure that the poor have access to basic services. At the core of the poverty and vulnerability in cities is the poor asset base of many citizens, a problem that centers on housing and lack of security of tenure. Enabling the markets to deliver low-income housing solutions and to resolve land tenure issues is essential for poverty reduction and inclusive devleopment in the cities.
The institutional structures for managing the cities in the region are weak, even though the technologies are well known and abundant finance is available. The core capacities required for city management fall into three interdependent groups: planning and policy formulation, program and project formulation, and management of service delivery.
Coordination structures based on an unchallenged mandate of government are not always effective in times of rapid change. New coordination structures are needed to reach out to diverse stakeholders, including the private sector and civil society.
Infrastructure funding requirements are enormous and unlikely to be met without mobilizing large amounts of private funds. Local governments need to improve their creditworthiness and ability to borrow to increase their financing options. This requires financially sound entities, improving revenue streams, and more commercially viable investment projects. Capital-market financing for urban infrastructure is critical. Special purpose vehicles and appropriate financial structuring are needed to achieve it. You may access chapters of the report through this link: Managing Asian Cities Report
Economic – the following discussion offers an introduction to the ‘Sustaining Economic Growth’ section of the Forum
The Challenges: Managing Cities as Drivers of the Economy
Structural weaknesses and poor infrastructure endanger growth in economies that can be vulnerable to shocks. There is a need to better manage risks that threaten economic growth and lead to poverty traps for many citizens. Achieving effective urban management is the challenge to address this unparalleled growth. Its lack is resulting in worsening pollution, no ready drinking water for over 50% of urban residents, the half a billion people forced to live in slums and crippling traffic congestion. Although cities on average provide 80% of the national economic base, large disparities have emerged as poverty has urbanized. More than 200 million impoverished people live in Asia’s cities and many more are vulnerable to economic and environmental shocks. Managing cities in this context requires a new approach and involves greater integration and coordination of plicy making and implementation across the public and private sectors, and across social, economic, and environmental policy issues. It involves partnerships between central government, local government, private business, financing agencies and civil society, and must recognize the bifurcated economy of formal export-driven growth and the large informal sector. Current practice is manifestly unsustainable – economically, environmentally and socially. Link to Part I Chapter 2: Managing Cities as Drivers of the Economy
The Response: Promoting Sustainable Economic Growth
Major cities are key elements of the global economy, which today is very different from previous “world economies.” We are now, perhaps, in the third era of globalization, which represents a radical departure from the past. There is a need to prepare and implement a city-region economic development plan that involves all government, business, and community stakeholders; build on strengths and opportunities; and plan to overcome technical, competitive, environmental and disaster risks. Link to Part II Chapter 5: Promoting Sustainable Economic Growth
Topics open for discussion and comments:
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Environment -the following discussion offers an introduction to the ‘Improving Urban Environment’ section of the Forum
The Challenges: The Broad Environment Footprint of Asian Cities.
Despite improvements in some areas, Asian cities have large environmental footprints which endanger both their economic base and the global environment. Cities occupy only 2% of the world’s land, but consume 75% of its resources. They generate a similar percentage of the earth’s wastes. Rapid urban growth has wrought massive environemtnal problems that are also felt, sometimes even more painfully, in smaller cities with less capacity to cope. Link to Part I Chapter 3: The Broad Environmental Footprint of Asian Cities
The Response: Working Towards a Sustainable Environment.
Roadmaps for promoting a sustainable environment need to be formulated. Consensus is needed on the type of city people want to live and work in, one that recognizes the interrelationship between current and future land use and transport needs. A new approach is required involving taking sustainable policy choices that identify a realistic development path and are able to tackle complex movement issues, effective management that makes a strategy happen; and raising the necessary funds for implementation. Link to Part II Chapter 6: Working Towards a Sustainable Environment
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Social – the following discussion offers an introduction to the ‘Inclusive Social Development’ section of the Forum
The Challenges: Opportunity culture and innovation
Cities have been a focus for innovation and culture but unthinking development is alienating the poor, driving away innovators and destroying cultural heritage. Despite productivity-boosted incomes, poverty still persists. Understanding the needs and priorities of people, and the social context, is essential to social development. Understanding four key areas of society is crucial for urban management. They are poverty, shelter, cultrue and innovation and they overlap and influence each other in sometimes suprising ways. Link to Part I Chapter 4: Opportunity, Culture, and Innovation
The Response: Ensuring a sustainable society
Cities should become sustainable societies, places where people want to live in safe, secure and affordable houses and neighborhoods, appropriately serviced and with adequate access to social services. Social development needs to focus on three aspects. First, it must link local facilities and systems to those of cities and the nation. Second, it must develop local infrastructure – such as schools and health facilities – efficiently and target subsidies on the poor. Third, based on the interdependency of the three elements of sustainable development, it must incorporate social development into investments in environmental and economic infrastructure and in projects that support the preservation of cultural heritage and promote innovation. Link to Part II Chapter 7: Ensuring a Sustainable Society
Topics open for discussion and comments:
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Coordination – the following discussion offers an introduction to the ‘Improving Coordination’ section of the Forum
The Challenges: Visions are Lacking
Think positively and strategically. The challenge…is change. The challenge is how to maximize the benefits of urban development ensure their equitable distribution in a sustainable manner. Asian cities are not as efficient as they can and need to be. Many show serious financial, administrative and coordination weaknesses in the face of unprecedented and often overwhelming growth and change. Coordinating development and services is a major problem in the rapidly growing cities of Asia. Urban growth is constantly expanding beyond local administrative boundaries and rapidly encroaching on rural land. Link to Part I Chapter 7: Visions are Lacking
The Response: Appropriate Coordinating Structures
It must be recognized that city life can be improved and that the challenges are not insurmoutable. Improving coordination covers key elements of good metropolitan management, which comprise participation and consultation, clear functions and delineation of roles and responsibilities and accountabilities, competent management, financial sustainability, and positive leadership. Better coordination requires more effective planning at the strategic level and it is recommended that national urban road maps be prepared to support this goal. At the local level, city development strategies, including road maps, are needed to set the context for a new approach to planning. There must be a clear vision of the future and what is to be attained at both levels. Link to Part II Chapter 2: Appropriate Coordinating Structures
Topics open for discussion and comments:
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Finance – the following discussion offers an introduction to the ‘Finance’ section of the Forum
The Challenges: Financial Challenges
Financial management is lacking in several dimensions: local governments don’t collect the taxes they should; national governments don’t match local government resource transfers to their responsibilities; and local capital markets often have private capital in abundance, but funds are not invested in infrastructure. Improving economic, environmental and social outcomes will depend on the sustainable provision of infrastructure that also fosters sustainability of outcomes. Many would argue that improving governance outcomes requires investment in “soft” infrastructure, such as e-governance systems to enhance transparency and accountability as well as encourage changes in mind-set. Financing this kind of infrastructure within the context of rapid urban gowth, decentralization and developing capital markets is a challenge. Link to Part I Chapter 5: Financing Challenges
The Response: Effective Financing Responses
A lack of sufficient finance to invest in the development of infrastructure is a major constraint on city governments everywhere. To improve living conditions, cities need to invest in infrastructure and in people. Some have more resources than others since they are better able to access funds, either through improving own source revenues or by raising money from higher levels of government, the private sector or through borrowing. Link to Part II Chapter 3: Effective Financing Responses
Topics open for discussion and comments:
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Capacity Development – the following discussion offers an introduction to the ‘Capacity Development’ section of the Forum
The Challenges: Capacity Development
If Asia’s cities are to enhance their urban management, they will need to build better systems for their institutions and improve the skills and cpacities of their staff. As Asian cities grow, they must take on more diverse, difficult and comples tasks – functions that demand the participation of multiple stakeholders and require more highly qualified personnel. Capacities are deficient in three interdependent areas of urban management, planning and policy formulation, program and project formulation and structuring, and managing service delivery. Structures to develop and sustain these capacities are also weak. National urban institutes, local government training institutions, and incentives for local civil servants to acquire needed skills are lacking. Link to Part I Chapter 6: Capacity Development
The Response: A new focus for capacity development and institutional strengthening
New directions and actions are needed at all levels. National and local governments need to formulate sustainable capacity development strategies and prepare action plans within the context of institutional and organizational reform programs. This reuires a commitment of funds by national and local governments and support from multi- and bilateral funding agencies. In addition, there is a need to establish an operational network linking local, national and international education and training institutions. Such a network would provide institutional and professional support to all levels of capacity development through the exchange of information and good practice, focusing on training, education, and the introduction of innovative management. Link to Part II Chapter 4: A New Focus for Capacity Development and Institutional Strengthening
Topics open for discussion and comments:
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