Over the last 5 years, the World Bank has conducted a number of in-depth, systematic analyses to zero in on the specifics of urbanization in its client countries. These so-called “Urbanization Reviews” pay special attention to the linkages between urban geography and economy: Where do people live within cities? Where are the jobs? How do residents move around cities? How do they move between cities? How does this affect cities’ economy as well as their country’s overall development?
In this video, Marisela Montoliu Muñoz, World Bank Director for Urban Development and Disaster Risk Management, provides a sweeping overview of the Bank’s Urbanization Reviews, and explains why a better understanding of the urbanization process is critical to helping countries grow sustainably and maximize their economic potential.
Click here to view a list of Urbanization Reviews that have been completed so far.
One walks into a doctor’s office knowing what hurts but with little knowledge of what should be done to fix it. Identifying proper treatment requires sophisticated tests, participation of experts and, often, second opinions.
Cities, arguably, are as complicated as human bodies. Our knowledge of diagnosing cities, however, is far less advanced than in human biology and medicine. Most mayors know very clearly what they want for their cities – jobs, economic growth, high incomes and a good quality of life for the people. But it is very difficult to identify what prevents private-sector firms, the agents that create jobs and provide incomes, from growing and delivering these benefits to a city. And we have no X-ray machine to aid in the effort.
As a part of the World Bank Group's Competitive Cities project, we thought hard about ways to help cities identify the roots of their problems and design interventions to address them. We set out on a journey to put together methodologies and guidelines for cities that want to figure out what they can do to help firms thrive and create jobs. We learned from our own experience of working with cities, and from other urban practitioners. We reviewed many methodological and appraisal materials, and we trial-tested our ideas.
So what have we achieved? We certainly didn’t invent an X-ray machine, but we have developed “Growth Pathways” – a methodology and a decision-support system to help guide cities and practitioners through diagnostic exercises.
Modern business facilities, tourist attractions, and an expanding skyline: Bucaramanga, Colombia.
When the World Bank’s Competitive Cities team set out to analyze what some of the world’s most successful cities have done to spur economic growth and job creation, the first one we visited was Bucaramanga, capital of Colombia’s Santander Department. Nestled in the country’s rugged Eastern Cordillera, landlocked and without railroad links, this metropolitan area of just over 1 million people has consistently had one of Latin America’s best-performing economies. Bucaramanga, with Colombia’s lowest unemployment rate and with per capita income at 170 percent of the national average, is on the threshold of attaining high-income status as defined by the World Bank.
Bucaramanga and its surrounding region are rife with contrasts. On the one hand, it has a relatively less export-intensive economy and higher rates of informal business establishments and workers than Colombia as a whole. Indeed, informality has often been cited as a key constraint to firms’ ability to access support programs and to scale up. On the other, Santander’s rates of poverty and income inequality, and its gender gap in labor-force participation, are all better than the national average, and it has consistently led the country on a number of measures of economic growth, including aggregate output, job creation and consumption.
But the numbers tell only part of the story. A qualitative transformation of Bucaramanga’s economy is under way. Once dominated by lower-value-added industries like clothing, footwear and poultry production, the city is now home to knowledge-intensive activities such as precision manufacturing, logistics, biomedical, R&D labs and business process outsourcing, as well as an ascendant tourism sector. Meanwhile, Santander’s oil industry, long a major employer in the region, has been a catalyst for developing and commercializing innovative technologies, rather than just drilling for, refining and shipping petroleum.
All these achievements are neither random nor accidental: They are the result of local stakeholders successfully working together to respond to the challenges of globalization and external competitive pressures.
Sri Lanka is in many ways a development success story.
Growth of income per person in Sri Lanka has averaged a little more than 7 percent a year over the past five years. That follows average growth of just over 5 percent a year in the preceding nine years. Among the six largest South Asian countries, Sri Lanka has the highest level of economic output per person. With sustained high growth, Sri Lanka has largely eradicated extreme poverty.
All this success has helped propel the country towards middle-income status. Going forward, how successfully Sri Lanka manages its cities will determine how quickly and efficiently the country moves to higher middle-income status and beyond. Every high-income economy has achieved this status through urbanization.
Cities are created for human experiences and not for satellites in the sky. So why are there so many cities that while look impressive on a map, exclude so many of their residents from enjoying the full extent of their benefits? The key may be that details matter for inclusion of cities.
Inclusion means that all people and communities have access to rights, opportunities, and resources. Urbanization provides cities the potential to increase prosperity and livability. However, many suffer from poor environments, social instability, inequality, and concentrated pockets of poverty that create exclusion. In South Asia, as in other regions, segregation within cities cause poorer areas to suffer from the lack of access to facilities and services that exacerbate misery and crime.
Medellin, Colombia was once the most dangerous city on the planet with astounding gaps between the wealthy and the poor, vastly different access to services, and the highest homicide rate in the world. Its turnaround has been impressive. Much of the progress has been attributed to the thoughtfulness of its planning to ensure greater inclusion. What can South Asian cities learn from this South American city?
Planning policies and action have often been concentrated on the broad structures and functions of cities. However, drilling down the details can realize an inclusive urban environment that improves life for all in public spaces. In our definition, inclusive cities provide:
Mobility: A high level of movement between different neighborhoods that provide opportunities for jobs, education, and culture;
Services: All neighborhoods have a basic level of facilities and affordable necesities such as housing, water, and sanitation;
Accessibility: Urban spaces are designed so that everyone can easily and safety enjoy public spaces.
What happened in Medellin, Colombia? Medellin offers an inspiring example of how improved planning and sound implementation can increase social inclusion. Two decades ago, Medellin was the homicide capital of the world. Illicit drugs were a major export and hillside slums were particularly affected by violence. In response, the government created public facilities inclusive of libraries and schools, public transportation links, and recreational spaces in the poorest neighborhoods; and connecting them with the city’s commercial and industrial centers. As a result of a planning model that seeks to serve all residents, the city has become safer, healthier, more educated and equitable.
The United Nations has designated 31 October as World Cities Day to highlight the many challenges and opportunities of global urbanization.
In his new video blog series, Ede Ijjasz-Vasquez, Senior Director of the World Bank’s Social, Urban, Rural and Resilience Global Practice (GPSURR), speaks with urban development specialists about what it takes to build sustainable cities – communities that are environmentally-friendly, competitive, inclusive, and resilient to disasters of today and disasters of tomorrow.
Building low-carbon, climate-resilient cities requires large infrastructure investment that often exceeds the financial capacity of cities in the developing world. In this video, Roland White, World Bank Global Lead for City Management, Finance and Governance, elaborates on some of the practical steps cities can take to put their financial house in order and mobilize the funds they need to finance greener urban development.
Cities are the future. They are where people live and work. They are where growth happens and where innovation takes place. But they are also poles of poverty and, much too often, centers of unemployment.
How can we unleash the potential of cities? How do we make them more competitive? These are urgent questions. Questions, as it turns out, with complex answers – that could potentially have huge returns for job creation and poverty reduction.
Cities vary enormously when it comes to their economic performance. While 72 percent of cities grow faster than their countries, these benefits do not happen uniformly across all cities. The top 10 percent of cities increase GDP almost three times more than the remaining 90 percent. They create jobs four to five times faster. Their residents enjoy higher incomes and productivity, and they are magnets for external investment.
We’re not just talking about the “household names”among global cities: Competitive cities are often secondary cities, many of them exhibiting success amidst adversity – some landlocked and in lagging regions within their countries. For instance, Saltillo (Mexico), Meknes (Morocco), Coimbatore (India), Gaziantep (Turkey), Bucaramanga (Colombia), and Onitsha (Nigeria) are a few examples of cities that have been competitive in the last decade.
So how do cities become competitive? We define competitive cities as those that successfully help firms and industries create jobs, raise productivity and increase the incomes of citizens. A team at the World Bank Group spent the last 18 months investigating, creating and updating our knowledge base for the benefit of WBG’s clients. In our forthcoming report, “Competitive Cities for Jobs and Growth,”* we find that the recipe includes several basic ingredients.
In the long term, cities moving up the income ladder will transform their economies, changing from “market towns” to “production centers” to “financial and creative centers,” increasing efficiencies and productivity at each stage. But economic data clearly shows there are large gains to be had even without full-scale economic transformation: Cities can move from $2,500 to $20,000 in per capita income while still remaining a “production center.” In such cases, cities become more competitive at what they already do, finding niche products and markets in tradable goods and services. Competitive cities are those that manage to attract new firms and investors, while still nurturing established businesses and longtime residents.
What sort of policies do competitive cities use? We find that leading cities focus their energies on leveraging both economy-wide and sector-specific policies. In practice, we see how successful cities create a favorable business climate and target individual sectors for pro-active economic development initiatives. They use a combination of policies focused on cross-cutting issues such as land, capital markets and infrastructure, while not losing focus on the needs of different industries and firms. The crucial factor is consultation, collaboration and partnerships with the private sector. In fact, success also involves building coalitions for growth with neighbors and other tiers of government.
With most of the global population and capital goods now concentrated in urban areas, cities are key to social development and economic prosperity. Urbanization, globalization, and climate change are interacting in a way that is unprecedented, and urban service delivery systems are becoming increasingly interlinked.
The event will be livestreamed in five languages and live tweeted and live blogged. We’ll have English and Spanish-speaking urban specialists joining our live blog to address your comments and answer your questions as the session progresses –and the panel in Lima will take a few questions from our online audience.
Cities are a puzzle for some and inspiration for others. As engines of economic growth, they are also hubs of rapid urbanization, a rising middle class, and a growing population. These three mega-trends drive global environmental degradation yet are only part of the important challenge facing cities today.
While consuming over two-thirds of global energy supply and emitting 70% of all carbon dioxide, cities are also uniquely vulnerable to climate change. Fourteen of the world’s 19 largest cities are located in port areas. With sea level rise and increased storm activity, these areas are likely to face coastal flooding, damage to infrastructure, and compromised water and food security. Under these conditions, meeting urban population’s growing production and consumption needs for food, energy, water, and infrastructure will overload rural and urban ecosystems.