How can cities access, leverage, and manage the fiscal and financial resources required to implement the New Urban Agenda and meet the growing needs of local populations?
To explore this issue, World Bank Senior Director Ede Ijjasz-Vasquez discussed the UN Habitat III policy paper on municipal finance and local fiscal systems with Mac McCarthy, President and CEO of the Lincoln Institute of Land Policy.
These are some of the views and reports relevant to our readers that caught our attention this week.
Culture gives cities social and economic power, shows UNESCO report
Culture has the power to make cities more prosperous, safer, and sustainable, according to UNESCO’s Global Report, Culture: Urban Future to be launched in Quito (Ecuador) on 18 October. The Global Report presents evidence on how development policies in line with UNESCO’s conventions on the protection and promotion of culture and heritage can benefit cities. Current trends show that urbanization will continue to increase in scale and speed, particularly in Africa and Asia, which are set to be 54 and 64 percent urban by 2050. The world is projected to have 41 mega cities by 2030, each home to at least 10 million people. Massive and rapid urbanization can often exacerbate challenges for cities creating more slums and poor access to public spaces as well as having a negative impact on the environment. This process often leads to a rise in unemployment, social inequality, discrimination and violence.
Sustainable Cities: 3 Ways Cities Can Contribute to a Renewable Energy Future
This week, global policy makers gather in Quito for the Habitat III Conference to reinvigorate the global commitment to the sustainable development of cities. Meeting every 20 years, the Habitat Conference will this year focus on setting a new Urban Agenda. Within this context and for the first time ever, the Conference will also discuss the rapid deployment of renewable energy as a means to achieve a sustainable urban future. This could not be timelier. Dramatic cost declines and technological innovations, present cities with an unprecedented opportunity to transform and decarbonise their energy supply on the basis of a positive economic case - an option that did not exist when the Habitat Conference last convened in 1996. This is great news, considering cities are home to 54% of the global population and generate 70% of global emissions.
Over half the world lives in cities, and those cities are responsible for over 80% of global GDP. However, the high density of people, jobs, and assets which make cities so successful, also makes them vulnerable to the wide range of natural and manmade shocks and stresses increasingly affecting them today. Read more about how the World Bank is investing in urban reslience.
Since the ensuing signing of the Paris Agreement, these countries have shifted gear to focus on turning their climate plans into actions. What if, as many of us may wonder, we could find a cost-effective and efficient way to help put cities—in developing and developed countries alike—onto a low-carbon path of growth?
What CURB can do for cities owes very much to the inspiration and stories we have taken from them in developing the tool. It was a fortuitous few hours in early 2014 at the C40 Cities Climate Leadership Summit in Johannesburg, South Africa that really got the ball rolling on the development of CURB.
Cities over the past century have become the driving force of the global economy. Accounting for over half the world’s population and generating around 80% of global GDP, cities provide numerous opportunities for development and growth. Cities however bring about risks and challenges to people and the environment. By 2050, demand for water is projected to increase by 55% mainly due to increased demand from urban populations. At the same time demand for energy in providing water and wastewater treatment services will increase.
Many developing economies have experienced fast growth in recent years. With such growth comes an increasing spatial concentration of economic activity—as documented in the World Development Report—leading to rapid urbanization in those economies.
While some cities have grown, others still lag behind. Such inequalities in development are usually characterized by weak economic performance, low human development indicators, and high concentration of poverty. For example, Mexico achieved incredible growth as a nation, yet per capita income in the northern states is two or three times higher than in the southern states. Disparities in other social and infrastructure metrics are even more dramatic.
The Summit is a biannual event that is one of the premier showcases of the state of urban development around the world. The fact that it is being hosted by Singapore – a city-state that epitomizes livability, inclusion and sustainability – is particularly fitting. The World Bank’s Infrastructure and Urban Development Hub team is proud to partner with the Center for Livable Cities in participating in several events during the World Cities Summit, such as the Mayors Forum, an ADB learning event on Cities and Middle Income Countries, and thematic sessions on culture, municipal finance, and innovation. One of the benefits of large global events such as the World Cities Summit is the opportunity to meet city leaders, counterparts, partner agencies, and colleagues from across the world to discuss ways and means on how the World Bank Group can continue to support them in their development objectives.
With almost half of its population living in urban areas, Senegal is ahead of Sub-Saharan Africa’s average urbanization rate of 40%. Senegal’s urban population has almost doubled in the last few decades, rising from 23% in 1960 to 43% in 2013, and is projected to reach 60% by 2030. This growth comes with immense challenges, but also constitutes an opportunity for Senegalese policymakers to structurally transform the Senegalese economy.
A comparison of costs of living across major cities in the world regularly intrigues people. The latest annual report by the Economist Intelligence Unit (EIU), for example, points to Singapore as the most expensive city to live in. The cheapest city in the ranking of 133 cities is Lusaka in Zambia, followed by two Indian cities Bangalore and Mumbai.
Public transport is an important mode of transport, especially for low-income populations. Cities, however, struggle to provide public transport services for fares that are both affordable and financially sustainable. Since meeting both goals is quite difficult, transport systems either end up relying on high levels of subsidies or charging transit fares that are too expensive for the city’s poor.
To tackle this challenge, the World Bank in 2013 supported the city authorities of Bogotá, Colombia, in designing a pro-poor transport subsidy scheme that would help low-income populations have access to more affordable public transport. In Bogotá fares for its new public transit system are set higher -closer to cost-recovery levels-, than in other cities that provide greater public subsidies to their operators. Despite having more sustainable fares, Bogotá risks excluding people from its transport services—in fact, households in the poorest areas of the city spend a greater percentage of their income on transport, between 16% to 27%, compared to a maximum of 4% in areas that are relatively richer.