The financial, economic and social future of developing countries
depends primarily on the future of their rapidly growing cities,
the World Bank says in a new report to be presented at the United
Nations conference on cities (Habitat II) in Istanbul, Turkey,
June 3-14.
 The report,
Livable Cities for the 21st Century, says that despite the staggering
problems faced by cities in developing countries, more than half
of all GDP now originates in urban areas, and solutions to urban
problems do exist.
The problems caused by rapid urban growth in the cities of the
developing world can be cheaper and easier to fix than many people
imagine: the solutions lie in the cities themselves and in their
own human and investment capital.
The scale and speed of urbanization has created new political,
economic and social realities that have fundamentally changed
the role of cities, the World Bank says.
In 1960, less than 22 percent of the developing world's population
lived in cities; these numbers increased to 34 percent in 1990
and will exceed 50 percent by 2020.
Cities that become productive and efficient will become centers
of surging economic activity, while inefficient cities will be
unable to compete. The economic prospects of various cities will
also depend on how well they connect to the global economy by
offering efficient power, clean water, environmentally safe sanitation,
secure streets and reliable transportation.
Cities that manage services responsibly will be able to attract
the financing-especially foreign capital-needed to modernize.
Their infrastructure needs can then become attractive investment
opportunities.
The World Bank is urging cities to deliver services that people
want and for which they are willing to pay, and makes four recommendations:
- Charge realistic fees for water, electricity and public transportation,
instead of subsidizing the rich and the middle class;
- Make better use of local sources of financing for neighborhood
improvement programs, such as property taxes and special levies;
- Bring the private sector into areas where they are more efficient
in managing and financing infrastructure; and
- Improve city management of budgets and capital investment
plans.
In order to remain livable in the 21st century, cities must include
the poor, safeguard the environment and define an institutional
framework to mobilize their resources. They must build an infrastructure
that delivers reliable services, allow their citizens to spend
more time producing and less time dealing with the bureaucracy,
and create effective local institutions.
No single formula exists to do this, but many different local
solutions are needed, the World Bank says.The World Bank has invested
$25 billion in more than 5,000 cities and towns since 1972. Over
the next five years, the Bank plans to invest an additional $15
billion in urban programs.For more information, call Sarwat Hussain
(202) 473-5690, fax 473-3112, e-mail shussain@worldbank.org. |
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