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Urban Development

Urbanization in India: Stronger Cities through Better Institutions

Mabruk Kabir's picture

For centuries, cities have been the beacon for economic prosperity. Drawn by the promise of economic, social and political opportunity, more than half the world’s population live in cities today. In India alone, 90 million people migrated from farms to cities in the last decade. The prospect of higher wages and better living standards is expected to draw 250 million more by 2030.

Urban success is based on economies of agglomeration -- where density increases the ease of moving goods, people, and ideas – increasing productivity. However, compared to other emerging economies, Indian cities do not appear to have captured gains from economic concentration. While the service sector and high-tech manufacturing have benefitted from agglomeration more than other sectors, overall urban productivity has not kept pace with India’s economic growth. In fact, the urban share of national employment has not increased between 1993 and 2006.

Are the costs of density overwhelming the benefits from clustering?

Managing Disaster Risk in South Asia

Marc Forni's picture

Losses due to disasters to human and physical capital are on the rise across the world.  Over the past 30 years, total losses have tripled, amounting to $3.5 trillion. While the majority of these losses were experienced in OECD countries, the trend is increasingly moving towards losses in rapidly growing states. 
 
In a sense, increasing risk and losses caused by disaster are the byproduct of a positive trend - strong development gains and economic growth. This is because disaster loss is a function of the amount of human and physical assets exposed to seismic or hydrometeorological hazards, and the level of vulnerability of the assets. The richer a country gets, the more assets it builds or acquires, and therefore the more losses it potentially faces.
 
Rapid development across South Asia signals the need to commit greater efforts to increase resilience to disaster and climate risk. It also requires governments to develop a strategy to both protect against events today and to develop strategies to address the losses of the future.  This is a challenge somewhat unique to South Asia. The losses of today, predominantly rural flooding that impacts wide swaths of vulnerable populations, will begin to diminish in relative importance to the losses of the future.

Is Upgrading Informal Housing a Step in the Right Direction?

Parul Agarwala's picture

Within the next 30 years, urban populations in developing countries will double and UN-Habitat estimates that around 3 billion people will need housing and basic infrastructure. Already, 70% of existing housing in developing countries is built informally without appropriate structural standards. Thus, the challenge lies in reconciling informal settlements with existing and future planned environments.

In light of these challenges, the South Asia urban team at the World Bank, as part of its urbanization webinar series, organized a discussion on “Upgrading Housing in Informal Settlements.” This webinar highlighted the challenges of upgrading housing in informal settlements, and shared lessons from around the globe where targeted policy interventions and grassroots movements have mobilized resources to create success stories. Guest speakers and experts around the world joined the discussion on informal settlements.

Is Urban Planning Necessary?

Chyi-Yun Huang's picture
During the South Asia Region workshop on "Promoting Access to Land and Housing", one underlying thread that ran through the discussions was on effective urban planning. Often, we encounter doubts on the usefulness of urban planning. While urban planning manifests in various forms, perhaps the most questionable one is comprehensive long term planning.

The Development of Secondary Cities in South Asia

Judy Deng's picture

On the second day of the three day regional workshop on affordable land and housing in Thimphu, Bhutan, country representatives continued to share policies and projects that their countries have devised and implemented and with that, the ideas that have or have not worked. One common theme was the interest in the development of secondary cities either around the periphery of rapidly urbanizing growth centers or as growth nodes strategically located along infrastructure such as regional transportation networks to create a ‘system of cities’. These growth centers often present a wealth of opportunities for the poor who flock to the cities from villages with the aspirations of a better life. However, this influx often strains the city’s services and infrastructure at an unsustainable rate.

Urbanization and Affordable Housing

Judy Deng's picture

Many regions and countries face urbanization challenges, South Asia is no exception. Although the region is currently the least urbanized region in the world, its urbanization rate is on par with Africa and East Asia with a projected influx of 315 million into urban areas by 2030. As such, the World Bank flagship program on urbanization strives to link key policymakers and practitioners to promote a more efficient urbanization process in South Asia through the exchange of experiences and ideas. The 3rd workshop in this series gathered over 80 professionals from 7 South Asian countries, the World Bank and the Korea Research Institute for Human Settlements in the beautiful city of Thimphu, Bhutan.

How to Upgrade Housing in Informal Settlements?

Parul Agarwala's picture

According to recent estimates, South Asia is facing a shortage of 38 million housing units, largely affecting low and middle-income households. It comes as no surprise that informal settlements, slums and squatters are growing in all major urban centers across Asia to supplement the demand from urban poor. India alone has 52,000 slums inhabited by 14 percent of its total urban population. Almost, 50 percent of total population in Karachi, i.e. 7.6 million persons, lives in Katchi-Abadis. Bangladesh has 2,100 slums and more than 2 million slum dwellers in Dhaka. Even in Afghanistan, 80 percent of residents in capital city, Kabul, live in informal settlements.

They Will Move If Services Are Available

Zahid Hussain's picture

In the World Bank, we recently did a report titled Bangladesh:  Towards Accelerated, Inclusive and Sustainable Growth—Opportunities and Challenges.  For this study, we did a survey of 1,000 garment firms to get their perspectives on the drivers and obstacles to urban competitiveness.  I report below some key findings from the survey presented in the growth report.          
 
Dhaka City is still the most productive location for garment firms in Bangladesh.  Access to markets and a relatively better quality of power supply are Dhaka city’s main comparative advantages. Dhaka has the best-performing city locations for access to skilled labor and power supply––the two factors garment firms’ value most when deciding on location––proximity to suppliers, sub-contractors, machine-repair technicians and support businesses.

Dhaka is falling behind other locations in accessibility and, for some firms, Dhaka city’s costs have started outweighing opportunities. Dhaka is the worst-performing location for urban mobility and access to the highway. Firms in the city also are disadvantaged in access to the port and airport, compared to those located in Chittagong city. Both firms and workers located in Dhaka also struggle with limited availability and high prices of land and housing.

In Bangladesh, the Alternative to Urbanization is Urbanization

Zahid Hussain's picture

There is little empirical regularity that is as universal as the following: no matter what the path of economic development a country has followed, urbanization has been an inevitable consequence across the world. Already half the world’s population is urban. Currently, Asia and Africa are the least urbanized regions, but they are expected to reach their respective tipping points–that is when their urban populations will exceed the rural population–in 2023 and 2030. While the urban transition occurs with diverse growth patterns at different times, the real challenge for governments is to take actions that allow residents to make the most of living in cities.

The relationship between urbanization and economic development has long been a popular issue of debate. Should a developing country encourage urbanization? While this is a real dilemma in Bangladesh, because of a highly unfavorable land-population balance, the only alternative Bangladesh has to urbanization is urbanization. The question is not whether Bangladesh should urbanize; the question is how Bangladesh will handle the challenges of urbanization.

Connecting Cities for Growth

Parul Agarwala's picture

The emergence of mega-regions, as metropolitan areas merge to form a system of cities, has demonstrably contributed to growth in the developed countries. With South Asia experiencing one of the highest urbanization rates, connecting cities presents opportunity to mobilize people, goods and services, and develop supply chains over larger spatial areas. However, this also implies unraveling overlapping commuting patterns, economic linkages, social networks, multiple jurisdictional boundaries- which add to the complexity of decision-making for policymakers and practitioners.

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