Keshav Varma Director, East Asia & Pacific Urban Sector The World Bank Cities of Opportunities Thoughts on Asian Cities in the 21 st Century

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 Urban population (% total population) Growth in # of cities over one million inhabitants 500 million more people move into Asian cities …with 500 million People Moving into Cities over the next 20 years Source : World Development Indicators, 2004; United Nations World Urbanization Prospects, 2003 Source : United Nations World Urbanization Prospects, 2003

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 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 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

* 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 East Asia’s Increasing Infrastructure Needs East Asia, estimated infrastructure expenditure, actual and projected, 1996 – 2010 ($ billion / year ) $123 bil $147 bil $165* bil electricity roads telecoms water and sanitation rail China all, excluding China Investment Maintenance Source : JBIC/ ADB/ Worldbank Flagship Study: Connecting East Asia

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 Unequal Access to Basic Services The Growth of Slums Source : JBIC/ ADB/ Worldbank Flagship Study: Connecting East Asia Source : World Development Indicators

Urban Shape—Large Increase in Build Up Areas Source : Prof. Shlomo Angel, Dynamics of Global Urban Expansion

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…) Update urban systems, legislation and laws Raise civic awareness & respect for city laws Enforce transparency & accountability Welcome press and criticism

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 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 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 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