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Cities of Opportunities Thoughts on Asian Cities in the 21 st Century. Keshav Varma Director, East Asia & Pacific Urban Sector The World Bank. Globalization, Urbanization and Decentralization. Globalization Intense pace of Urbanization Devolution to local government

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Cities of Opportunities

Thoughts on Asian Cities in the 21st Century

Keshav Varma

Director, East Asia & Pacific Urban Sector

The World Bank

globalization urbanization and decentralization
Globalization, Urbanization and Decentralization
  • Globalization
  • Intense pace of Urbanization
  • Devolution to local government
  • Empowerment of people in democratic choice-making
east asia pacific urbanizing rapidly

500 million more people move into Asian cities

East Asia Pacific Urbanizing Rapidly

…with 500 million People Moving into Cities over the next 20 years

Urban population (% total population) Growth in # of cities over one million inhabitants

Source: World Development Indicators, 2004; United Nations World Urbanization Prospects, 2003

Source: United Nations World Urbanization Prospects, 2003

changing governance increasing decentralization
Changing Governance - Increasing Decentralization

Expenditure decentralization – sub-national expenditure

(% total national expenditure)

Source: East Asia Decentralizes—Making Local Government Work, The World Bank

shifting importance of cities local and global
Shifting Importance of Cities – Local and Global
  • Half the world’s population will be in cities by 2010 – and half of them will be poor
  • Urban leaders are playing important roles in the national arena
  • Cities are the locus of growth, jobs & wealth
  • Cities – regions as fundamental spatial units for global economy
challenges of urban management
Challenges of Urban Management
  • Population pressures – poverty & slums
  • Urban infrastructure service provision
    • Water & sanitation
    • Solid waste management
    • Transport & traffic management
  • Unacceptably low levels of investment in basic infrastructure
  • (In)efficiency of investments
east asia s increasing infrastructure needs
East Asia, estimated infrastructure expenditure, actual and projected, 1996 – 2010 ($ billion / year)East Asia’s Increasing Infrastructure Needs

all, excluding China

$165* bil

rail

$147 bil

water and sanitation

$123 bil

telecoms

Maintenance

roads

China

Investment

electricity

* Based on econometric simulations consistent with projected regional growth, and efficiency prices. Due to data limitations, the simulation excludes a number of key infrastructure services, notably ports and airports, and all but major roads

Source: JBIC/ ADB/ Worldbank Flagship Study: Connecting East Asia

challenges of urban management contd
Challenges of Urban Management (Contd…)
  • Urbanization of Poverty
    • Urban poverty and growing affluence
    • Urban slums, land markets and shelter
  • Shape of cities – expected significant increase in build-up areas
  • Antiquated laws and insufficient frameworks
  • Small solutions to challenges of urban management – enormous problems upscaling
slums growing numbers unequal access to services
Slums – Growing Numbers & Unequal Access to Services
  • The Growth of Slums

Source: World Development Indicators

  • Unequal Access to Basic Services

Source: JBIC/ ADB/ Worldbank Flagship Study: Connecting East Asia

urban shape large increase in build up areas
Urban Shape—Large Increase in Build Up Areas

Source: Prof. Shlomo Angel, Dynamics of Global Urban Expansion

inside city halls good governance
Inside City Halls – Good Governance
  • Sustainable Governance as a long-term goal
  • Professionalism, and citizen friendly city-employees
  • Transparency & accountability
  • Continuous capacity building and training
  • Use of private sector advisors and contractors
inside city halls contd
Inside City Halls (Contd…)
  • Update urban systems, legislation and laws
  • Raise civic awareness & respect for city laws
  • Enforce transparency & accountability
  • Welcome press and criticism
livability
Livability
  • City and land use planning
  • Improved use of green spaces and urban agriculture
  • Optimization of present assets of utilities
  • Energy conservation
  • Urban water and sanitation, solid waste management
  • Reduction of the ecological footprints of cities
competitiveness
Competitiveness
  • Globalization and global city regions – the need to enhance competitiveness
  • Excellence and quality of human resources; attracting talent
    • Examples of Bangalore in India and its connection to the Silicon Valley
  • Cultural heritage and urban renewal
  • Competitiveness on multiple dimensions
bankability
Bankability
  • Scarcity of resources – per capita investment in infrastructure unacceptably low
  • Credit rate cities
  • Access to capital markets – municipal bonds
  • Bankability and Bonds – seen as an aspect of civil pride, empowerment and partnership
solutions revisited
Solutions Revisited
  • Exceptional leadership – visionary, creative, firm, responsive and compassionate
  • New paradigm for city management and governance
  • Foster true citizenship – bring people into the business of city management
  • Concentrate on building sustainable institutions
  • Build morale and external alliance
  • Include the poor