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municipal finances

Of tigers and elephants: The rise of cities in Asia

Judy Baker's picture
Rush hour traffic in Mumbai, India. Photo: Adam Cohn/Flickr
Over the next decade and a half the world will add a staggering 1.1 billion people to its towns and cities. About one half of this urbanization will happen in the regions of East and South Asia.
 
If history is any guide, this growth in urban population will provide tremendous opportunities for increasing prosperity and livability. One can look at the successes of a few Asian cities such as Tokyo, Seoul, and Singapore to demonstrate how, with the assistance of good policies, urbanization and economic development go hand-in-hand. More generally, no major country has ever reached middle-income status without also experiencing substantial urbanization.
 
Yet cities can grow in different ways that will affect their competitiveness, livability, and sustainability. The more successful cities of Asia have been effective at creating opportunities, increasing productivity, fostering innovation, providing efficient and affordable services for residents, and enhancing public spaces to create vibrant and attractive places to live. But many, many, more cities have neglected fundamental investments in critical infrastructure and basic services, and have mismanaged land, environmental and social policies. This has resulted in traffic congestion, sprawl, slums, pollution, and crime.
 
Among the many complexities of urban development that have contributed to success, two critical factors stand out – investing in strategic urban planning, and in good urban governance.

To grow sustainably, cities first need to get their finances right

Ede Ijjasz-Vasquez's picture
Local and municipal governments often operate with limited financial resources, yet they are responsible for delivering an ever-expanding range of infrastructure and services. In many countries, decentralization also tends to put additional pressure on municipal finances, as cities and towns are increasingly expected to take the lead in implementing national policies locally. Yet, this transfer of responsibilities from the national to the local level often does not come with an adequate transfer of resources.
 
In other words, cities are expected to "do more with less"... This can only happen if local government practitioners have the right tools and knowledge to manage their resources as strategically and efficiently as possible. To help cities get their financial house in order, the World Bank has developed the Municipal Finances Handbook (available in English and Spanish), which provides government officials with extensive guidance on controlling expenditures, strengthening revenues, mobilizing external funds, achieving creditworthiness, and adopting good borrowing practices.
 
Lead Urban Specialist Catherine Farvacque-Vitkovic tells us more about the handbook and the associated e-learning course: “Municipal Finances - A Learning Program for Local Governments”.
 
Please note the next edition of our online course will run from March 30 - May 23, 2016. Click here to learn more and sign up (registration ends March 30).

Cities: the best place to strive for sustainability

Xiaomei Tan's picture

Also available in: Español | Français | العربية

 
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.

To tackle these issues, the Global Environment Facility (GEF), in collaboration with the World Bank Group (WBG), launched the Sustainable Cities Program to engage 23 cities in 11 developing countries. Hailing from one of such countries, two urban development specialists working on each side of the Program explain why making cities more sustainable appeals to them.