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Urban Development

Africa’s urban population growth: trends and projections

Leila Rafei's picture
On the periphery of Lagos, Nigeria, lies Makoko, a burgeoning slum community perched on a lagoon. Residents live in makeshift homes on stilts made of collected wood and tarp, and get around primarily by canoe.  Once a small fishing village, Makoko now draws migrants from neighboring countries, who flock to Nigeria for low-paying, unskilled jobs.

Urbanization is Narrowing India’s Rural-Urban Wage Gap

Viktoria Hnatkovska's picture

Busy market area in Chennai, India. Credit: flickr@mckaysavage. https://flic.kr/p/5EmDUf

The inequality between rural and urban locations is one of the largest contributing factors to the overall economic inequality in a country. Yet there are a lot of unanswered questions about the sources of this inequality, such as how structural transformation – namely the movement of labor from low productivity sectors like agriculture to higher productivity sectors like industry – affects the rural-urban divide. To shed light on this question, Amartya Lahiri (University of British Columbia) and I recently wrote a paper on what occurred in India between 1983 and 2010. Our findings highlight that over the past three decades, there has been a rapid wage convergence between urban and rural areas – with the fast growth of the urban labor force playing a major role.

Mind the (funding) gap, next stop: Making some extra money

Daniel Pulido's picture
Follow the authors on Twitter: @danpulido and @IrenePortabales
 

A branded metro station in Madrid
Most metro systems around the world are unable to cover their operating costs with fare box revenues, let alone fund capital expenditures. According to data from international benchmarking programs CoMET and Nova, tariff revenues cover an average 75% of operating costs, while other commercial revenues provide about 15%, resulting in an operating deficit of 10%. Similarly, a back of the envelope exercise that we conducted for Latin American metro companies showed that these had an average operating deficit of 10% in 2012. When including capital expenditures, this deficit grew to 30%. There are of course examples of metro systems that do recoup their operating costs, such as Santiago de Chile and Hong Kong, but others like the Mexico City Metro only cover half of their operating expenses with fare revenues. We should all mind this funding gap as it is a significant impediment to maintaining service quality and addressing growing urban mobility needs.

Unfortunately, the underfunding of transit systems can become chronic as public budgets are under growing pressure and the most direct solutions for increasing revenues are hard to implement: increasing fares, for instance, has proved to be politically difficult and disproportionately affects the poor, who use public transport the most; and charging a price that fully covers the social cost of private vehicle usage (i.e., congestion charges) as a way to fund transit is also politically sensitive.

In that context, transit operators are increasingly looking at new ways to tap additional sources of commercial revenue and make up for funding shortfalls, often through agreements with the private sector. Although most examples are concentrated in developed countries, some metro systems in Latin America and the developing world are looking at ways to increase non-tariff revenues:

Nine Lessons for Bridging the Gap between Cities and Citizens

Soren Gigler's picture

 Jerry Kurniawan / World Bank

Recently, the lack of economic and social opportunities in many urban areas have triggered that the urban poor express a greater demand for a voice in local decision-making that affect their lives. An increasing number of city governments are realizing that open and responsive public institutions are imperative to achieving better and more sustained development results.
 
Important questions however remain: What is the impact of open government approaches to improving public services to poor communities? What are some examples of where the emerging Open Government approach has made a difference in the lives of the urban poor?

In Search of India’s Smart Cities

Jon Kher Kaw's picture


“Smart city” has become a buzzword in India ever since Prime Minister Narendra Modi outlined his vision for creating a series (a hundred, to be exact) of them. Since then, there have been many debates to unpack, understand and define the smart city. “Smart cities” joins the long list of many other often overused city descriptors such as “creative cities”, “sustainable cities”, “eco-cities”, “resilient cities” and “livable cities”.

Rural jobs allow people to escape poverty; urban jobs are a ticket to the middle class

Yue Li's picture
South Asia is sometimes known as the land of extremes with opulence surrounded by poverty.

How much social mobility is there in South Asia? The intuitive answer is: very little. South Asia is home to the biggest number of poor in the world and key development outcomes – from child mortality to malnutrition – suggest that poverty is entrenched. Absence of mobility is arguably what defines the caste system, in which occupations are essentially set for individuals at birth. Not surprisingly, the prospects for people from disadvantaged backgrounds to prosper are believed to be gloomier in this part of the world.

And yet, our analysis in Addressing Inequality in South Asia, reveals that economic and occupational mobility has become substantial in the region in recent decades. In fact, it could even be comparable to that of very dynamic societies such as the United States and Vietnam. The analysis also suggests that cities support greater mobility than rural areas, and that wage employment – both formal and informal – is one of its main drivers. 

​When splitting the population into three groups—poor, vulnerable, and middle class—upward mobility within the same generation was considerable for both the poor and the vulnerable. In both Bangladesh and India, a considerable fraction of households moved above the poverty line between 2005 and 2010. Meanwhile, a sizable proportion of the poor and the vulnerable moved into the middle class. In India, households from Scheduled Castes and Scheduled Tribes – considered together – experienced upward mobility comparable to that of the rest of the population.  

A Public-Private Push for Infrastructure and ‘Inclusive Growth’

Donna Barne's picture

Swiss Re Group Chief Investment Officer Guido Fürer, European Investment Bank President Werner Hoyer, World Bank Group President Jim Yong Kim, and Australian Treasurer and Chair of the G20 Finance Track Joe Hockey at the signing ceremony for the Global Infrastructure Facility. © Simone D. McCourtie/World Bank

The idea of “Inclusive growth” and how to achieve it was talked about a lot in the days ahead of the 2014 World Bank-IMF Annual Meetings. Among the solutions on the table was a new initiative that could help unlock billions of dollars for infrastructure and improve the lives of many.

About 1.2 billion people live without electricity and 2.5 billion people don’t have toilets. Some 748 million people lack access to safe drinking water. The Global Infrastructure Facility (GIF) announced by World Bank Group President Jim Yong Kim this week hopes to lower these numbers by developing a pipeline of economically viable and sustainable infrastructure projects that can attract financing.


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