H U~~~~~~~'nw ;a ['i 0~~~~~~e 4 ~~I~~iI~~E -.Au C0) )o j6Y4w C~CY) I~~~F 19~~~~~~~~~~ 1j*i A,~~ ~ k9 a raii'7. 4 - - - -- Pt -4 'V - ir i*' 2 '4- __ - - .,' .4 ___ J!fl.tJi)C'ASX4I rt. 4 __ -- .. 44 C. I tfI>'K. I:KU  - r -It  . - I I  * 4-- 494 I 4 F - A 4 0 'A 4. .. ii... *14.1l t4t*? t A '4 4. .- 4. -4--. S '.4. .4. 0e '1 1 *'*1 Al, - ---4' 1' -4 4' 4' - I- ---- r ( .- '* *A *. .4 E'7 *J(iw:b4 -- 40 1'¶- '4., r . CLi,tktes Whlhcuc Slums U-~~~~~~~~~w .ge " l *- i,Kts ; e . 41 iF~~~ 4 ,.4 _ .4r J& ¢ .~~~~~, ' ' 3 g ~~~~IAlItb .wM1¾, A. . . | l l [ .'' " '." ' . ' '.~~~~~~~~~~ik 2 ~ t~ 'e w ~ x. ~ ~ This scenario calls into question policies and iwo ijon ~~~ ~ strategies of both the developed and the develojping worlds. To begin with, according to the'developrnent theories of the 19 50s, . this wasn't supposed to happen. Rural 1, Ci.' lI:Jca I development was going to'keep these people '-'1~~~~~~~~~~~~- in the countryside. The fact, that so many ..~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~ ~ ~~ ~ ~~ ~ ~~ ~ ~~ ~~ ~~~ ~~ ~~ ~ . ~~~~~ ~~~ ~governments still adhere to these theories seriously limits their ability to take advantage of the~ potential benefits and opportunities - ~~~~~~~presented by urbanisation - benefits for the So4 I I anc! SOnI I tIa environiment, for agriculture, foe~ off-farm ,. -. * In te nextI ~ vt~i's. v employment and, overall, to the national cides iin Asia. ziic ~ "VI I economy and the prospects of increased nearly (ionl)Ie tiieir .'income for the poor. The result of these approaches has no real It is a paradox that the greatest global imnpact on the pace and scale of urbanisation, challenge - the growth of poverty - is but it does have two disastrous increasingly being managed at the local level. cons~quences. The first is to trap the urban Even in those parts of the developing world poor i an informal and illegal world - in which are already substantially urbanised, slumrs~ that are not reflected on maps, where cities of all sizes are faced with demands and waste is not collected, where taxes are not responsibilities for which they are often ill paid aind where public services are not equipped and ill resourced. Not only will provided. Officially, they do not exist. land, water and services have to be provided, so too will political leadership and The second consequence is to limit the managerial capacity. Policy and legal impact, of both national and international frameworks, regulatory authority, planning effort to reduce poverty, since the sectoral authority, human skills, revenue base, fragmentation of policy, analytical and accounting and accountability will be as institutional frameworks fails to capture the much in demand as raw land. The nuts and urbani-rural and cross-sectoral dynamics bolts of urban governance have become a which are critical both to sustainable central issue of development, economic growth and'the distribution of its opportunities. C.i.. j U ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ -: . i. _ ~~~~~~~W. Figure 1 Figure 2 4.000- E Addis Ababa- 2 , 3,500- Antananarivo- 3.000- i Bamako- 1.1 2.1 2 2~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~. 2,500- < Dhaka-23 = 1.1 O I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~' 0 2 000- (DC t ,.. Hdha ra b d o a 1 5l1- --i ° Jakarta- 11 L 1000- A 3. ro Lagos2 z 00 - - NdJamena- 1.9 O- I 0 In 0 UI 0 a I u 1' 1 0 1S 0 1S 0 Ut U b (0 r 01 II G1 01 0 0 ° - N N (t 0 5 10 15 20 25 0 0 0 0 0 0 0 0 0 0 0' 0 0 0 0 …N_ _ __- _ ON:N N N N N N Population in Millions Year - 0 N 6 Year 2000| 0 0U,b,n: M-..D_,t pd]Z,go.- 1111 J,11111Ub-n D,1.pD, R,op - ReIo Year 2015 | . . _ . Rural Mtre D,.elp. ROglos _ Rorl: L^ Dl,I,p,d Re | Source: United Natirx World UrbanisaUon Prospects, 1999 Source: United Nations World Urbanisatfon Prospects, 1999 Urbarn Policy Challenges Who are these new urban residents?Where will they live?Which land should they use?Which schools will their children go to? Where will they get their water? How will their rubbish be collected?Where should they vote?Who will protect them?The developing world is facing a crisis, not because there are no answers, but because too few politicians and policy-makers in both the developed and developing worlds are even asking these questions. More than half of these new urban residents will be born in cities, some of the fastest growing of which now have relatively small populations; the balance will be poor migrants in search of a better life. Based on current trends, they will live in overcrowded and unserviced slums, often situated on marginal and dangerous land. They will struggle for access to clean water, for which they will pay a premium. Their waste will not only remain untreated, it will surround them and their daily activities and affect the health of their children. Disputes will be resolved not through the courts, but through informal local mechanisms, often arbitrary and sometimes violent. Although they may reside within the administrative boundary of a town or city, their local authority may well be a slumlord or mafia leader, rather than city council staff, who will often no longer attempt to assert their jurisdiction or even enter the slums. As illegal or unrecognised residents, these slum dwellers will have no property rights, nor security of tenure, but will instead make whatever arrangements they can in an informal, unregulated and expensive parallel market. This scenario is not only certain, it is already the reality in urban areas in many developing and transition countries, as weak urban governance meets the impact of growing inequality, corruption and imbalances in resource allocation. Ignoring this policy challenge risks condemning hundreds of millions of people to an urban future of misery, insecurity and environmental degradation on a truly awesome scale. it.itcs Allianc -.: ' .1.i i.)ri Fortunately this status quo is changing, as it 3) national governrrmernts that have, in is simultaneously being challenged by new increasing numbers, pursued policies of approaches from four principal decentralisation and democratisation, constituencies: devolving decisions to the spheres of government closest to the citizens 1) the urban poor who have affected; and demonstrated enormous resilience and ingenuity in mobilising and organising 4) bi-lateral and rutjlti-lateral themselves when formal institutions developmrentt agencies that have have failed to serve them, and are produced new urban strategies over the increasingly positioning themselves both last several years with a clear focus on as active participants in development the central role that well-managed cities and as an electoral force influencing can play in reducing poverty and urban policies and public investments; improving the quality of life for all of their citizens. 2) local authorities and their associations, which have organised While sharing a positive vision of the themselves to contribute to the opportunities of urbanisation, each of these development policy dialogue from their constituencies has also recognised that this unique perspective as the level of requires a collective effort. No one can do government most directly accountable this alone. The unprecedented scale and pace for the provision of services and of this urban transition also make it support to citizens, and which are imperative to move beyond pilot projects to increasingly responsive and accountable city-wide and nation-wide scales of action. It to their citizens; is this challenge that led to the creation of the Cities Alliance. Citi( Anance ---|w ...ou I -. The Alliance was conceived in 1999 as a By focusing on the city and its region rather coalition of cities and their development than on sectors, and by scaling up solutions partners, committed to address urban promoted by local authorities and the urban poverty reduction as a global public policy poor themselves, the Alliance is promoting a issue. In creating the Cities Alliance, multi- framework to improve the coherence and lateral and bi-lateral development agencies impact of external support to local joined forces with development banks and authorities. And by engaging potential the world s major global associations of local investment partners from the outset, the authorities with the objective of advancing Alliance is encouraging the development of their collective know-how to improve the new public and private sector lending and quality and impact of urban development investment instruments to expand the level cooperation. of resources reaching local authorities and the urban poor, enabling them to build their Building on the common elements of their assets and income. respective urban strategies, Alliance partners agreed to pool their resources and This is the first annual report of the Cities experience to focus on two key interrelated Alliance, covering the one and a half years priorities to promote a more comprehensive since its launch. This period has seen rapid approach to urban poverty reduction: progress in establishing the Alliance s governance and organisational structure, u city development strategies (CDS) developing its strategy, launching its which link the process of how local activities and putting in place its stakeholders define their vision for their accountability mechanisms. While it may be city with clear priorities for action and premature to measure results in some areas, investments, and it is clear that the Alliance has already established a strong foundation on which to u city-wide and nation-wide slum achieve its ambitious goals. upgrading to improve the living conditions of at least 100 million slum dwellers by 2020 in accordance with the CitiesWithout Slums action plan. Cities Alliance Organisational Structure My-M See charter at Cities Alliance website, - -- - I bhttp://vww.citiesalliance.org Thle Consultative Group The Consultative Group - the Alliance s Sector Development and Infrastructure, the board of directors - is responsible for setting World Bank; and the Executive Director, the Alliance's long-term strategy, approving United Nations Centre for Human its annual work programme and budget and Settlements (Habitat). reviewing achievements. The Consultative Group is composed of fnancial contributors Consultative Group meetings are held to the Cities Alliance Trust Fund and the annually in connection with a global Public political heads of the major global Policy Forum designed to share the lessons organisations of local authorities who have learned from experience and agree on pledged their commitment to achieving policy orientations and standards of practice Alliance goals. Prospective financial in areas related to the Alliance's goals. The contributors may serve as Associate Consultative Group has also formed a five- Members for a period agreed to by the member Steering Committee, made up of a Consultative Group. The Consultative Group subset of its members, to provide guidance is co-chaired by theVice President, Private to the Secretariat. Consultative Group Meetings e Berlin, December 1999: inaugural meeting, launch of Cities Without Slums action plan, and approval of Charter and 2000 work programme. e Montreal, June 2000: first Public Policy Forum, review of application guidelines and approval of Cities Alliance Vision statement. a Rome, December 2000: approval of Charter amendments, 2001 work programme and procedures to establish Policy Advisory Board and Steering Committee. Consultative Group Members - June 2001* Local Authorities f International Union of Local Authorities o Metropolis a World Federation of United Cities e World Associations of Cities and Local Authorities Coordination Governments * Canada * Japan * United Kingdom * France * The Netherlands * United States a Germany * Norway * Italy * Sweden Multi-lateral organisations u UNCHS e World Bank ' Associate members that have attended meetings of the Consultative Group include: the African Development Bank, Austria, Denmark, the European Commission, Finland, Spain, the United Nations Development Programme, UNICEF and the International Labour Organization. The Policy Advisoiry Board members will be nominated by the Consultative Group from the Arab States The Alliance's Policy Advisory Board is and Eastern Europe. composed of eminent urban experts from each region. They provide guidance to the The Policy Advisory Board held its first Consultative Group on key strategic, policy meeting June 1 1-12, 2001, at the United and regional issues and support the Nations headquarters in NewYork, on the implementation of Alliance activities. At its occasion of the General Assembly's special meeting in December 2000, the session on Istanbul+5. During this meeting, Consultative Group approved the initial the board members familiarised themselves composition, terms of office and operating with the strategic issues facing the Alliance procedures for the Policy Advisory Board. and organised their work around immediate The board meets twice a year and is and longer term goals. This included composed of eight members who serve elaborating their role in organising the two-year terms on a rotational basis. Six conceptual content and outreach of Public members were nominated initially (two Policy Forums so as to help build strategic from Africa, two from Asia, one from Latin alliances in each region to further the Cities American and the Caribbean and one from Alliance vision and agenda. the North) . The board's two remaining ( llf upF -,6F Y~~~~~~~~~~~~~~~4 -: c -_ , ,, , , K ^ ^~~~~~~~~~~~~~~~~~~~~~~~~~~1 :t f f ? j~~~~~~~~~~~- ,' I 11 The Cities Without Slums InitiatLive is * _t ~~~a creative and daring response to urban ! powrty. Poverty reduction and - . X AA ~~~~ 2 ~upgrading of informal settlements wilD -- not be possible unless cities are jG;- *'*- jf;> ~productive and efficient, and capable of ^ 0|0 7 tq 6¢ ~pnviding the poor with economic u : opportunities to build their assets and ' ,t, { -Incomes said Presdint heison; Mandela, Cities Without Slums Patron. Building political commitment requires a We resolve further: shared vision around which a consensus can be built and support mobilised. The Cities By 2020, to have achieved Without Slums action plan, which was a significant improvement launched at the inaugural meeting of the in the lives of at least 100 million launhes Aliathes Conagultaleetg Group te slum dwellers as proposed in the Cities Alliance's Consultative Group in "Cities Without Slums" initiative. Berlin in December 1999, conveys such a Millennium Declaration UntdNtosMillennium Declaration, vision. The remarkable success of this United Nations Millennium Deciaration, initiative in mobilising political support is A/RES/55/2 18 September 2000. largely due to the fact that the patron of the Cities Without Slums action plan is one of the most powerful symbols of political will A number of Cities Alliance partners are of the 20" century, Nelson Mandela. leading the way to make sure that this new The Cities Without Slums action plan has international development goal moves been endorsed at the highest political level beyond the conference halls: internationally as a challenging vision with The Commonwealth Heads of specific actions and a concrete target to Government meeting held in South improve the living conditions of the most Africa in November 1999 adopted as a vulnerable and marginalised urban residents. In his vision for the world organisation in the aretrate d progressttoward adequate shelter for all with secure 21" century which set the agenda for the tenure and access to essential services in September 2000 Millennium Summit, the every community by 2015'. Secretary General of the United Nations, Kofi Annan, strongly supported the Cities * The Global Campaign for Secure Tenure Without Slums action plan and asked all UN launched by UNCHS in Mumbai, India, member states to endorse and act on it.' in July 2000 has established a powerful normative mechanism to spearhead The unique capacity of the United Nations actions in support of this goal. to set global norms is reflected in the international development goals that have a In its new urban strategy, Meeting the been adopted over the past decade. These Challenge of Poverty in Urban Areas, goals, which establish measurable targets for the Government of the United poverty reduction and sustainable Kingdom has strongly supported the development, have been agreed to by the Cities Alliance as a global partnership to entire UN membership and will justifiably achieve this goal.z dominate the development agenda for the * TheWorld Bank has proposed that next decades. Isecure tenure be used as a key At the UN Millennium Summit, which indicator to measure progress in brought together 150 heads of state and achieving the Cities Without Slums government, the CitiesWithout Slums action plan. initiative was endorsed as a new international development target: I We the Peoples: The Role of the United Nations in the Twenty-first Century Report of the Secretary General to the Millennium summit, (A/54/2000, section IIID 'Upgrading the Slums', paragraphs 134-138) A, 2 DFID, ?Meeting the Challenge of Poverty in Urban Areas' (April 2001) Joc,kn Arputham, Pesident of the National Slum Dwellers Federation (of India) speaking at the Launch of the UNCHS Gobal Campaign for Seurne Tenune. a . -e, Mumbal 16July 2000. The untapped potential of the urban poor as developmental agents rather than recipients of ... we as citizens have to develop a new assistance is clearly articulated in Hernando relationship with the city our state de Soto's The Mystery of Capital (Basic Books, government and business sectors... de Soto s The Mystery of Capital (Basic Books, Our governments are no longer the only 2000). It is their illegality and, in particular, actors in development, and that means their lack of property rights, which acts as a that both the state and civil society have brake on their economic ability: to change the manner in which they relate to each other ... the entrepreneurial ingenuity of the Sheela Patel, at the 15th anniversary of the Society for the poor has created weaith on a vast scale - Promotion of Area Resoure Centrs, Mumbai. The Society Is an wealth that also constitutes by far the NGO http://www.sparcindia. org in aliance with Mahila largest source of potential capital for Milan and the National Slum Dwellers Federation. development These assets not only far exceed the holdings of the government, Instead of focusing their energies on the local stock exchanges, and foreign challenging the state through protest and direct investment; they are many times demands for rights, organisations of the greater than al the aid from advanced urban poor and their allies can achieve nations and all the loans extended by better results by initiating a grassroots- the World Bank. driven, non-hierarchical process of reclaiming the latent power of poor H de Soto, The Mystery of Capital, p34 households and communities and using The interrelated objectives of unlocking the this to identify options and strategies to potential of the urban poor and achieving address their self-identified priority needs. the CitiesWithout Slums goal require The Brighter the light, the Da.ier the Shadow:Backyard F, national leadership and clear national policy electronic newsletter of the Peopies Dialogue http://www.dlalogue.org.za, and legal frameworks, but ultimately depend Cape Town, South Africa, June 2001. on actions at the local level - by slum The Cities Alliance has been inspired by dwellers and local authorities working in partnership. ~~~~~~~civic leaders in all regions who are partnership. demonstrating the political will to invest This new reality is well understood by both in these opportunities. mayors and organisations of the urban poor in all regions: ...policies aimed at social inclusion need to go beyond mere sectoral approaches: the right to the city, based on the access to minimum social standards, requires the implementation of a set of integrated policies aimed at social inclusion. Ceiso Daniel, Mayor of Santo Andre, Bril,,t descibing Santo Andres City Development Strategy, UN Chrnnicle No. 1, 2001. liS w ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~J Local Governments Rtespondinig to the Challenge of Globalisationl by joan Cios, President, World Assoiations of Cities and LocaikAthorities Coordination One of the more important, yet less visible, outcomes of the globalisation process is the emergence of local government as an increasingly coberent actor on the stage of world development. To close observers, however, this comes not as a surprise but as a logical outcome of two complementary trends -global moves towards democratisation and decentralisation, and the commitmnent of the international associations representing local authorities to develop a unified global voice for local government. Although the decentralisation pr-ocess continues to be uneven in some countries and regions, the global tr-end giving local governments more responsibility, along with more authority, has become very significant over the past two decades. The world has entered the urban mnillennium, and cities are on the front line of development. It is not only the size and number of cities that have changed, but also the natur-e and complexity of the issues which they confront. For centuries past, towns and cities have essentially dealt with local issues, the priorities of a local community. Global issues are now also local issues. Issues of the environment, economic growth, health care, the scourge of AIDS, poverty -all the major global issues are managed at the local level, as they are by other spheres of government. Towns and cities work within the framework of national policies but are the level of government most directly accountable for the provision of service and support to citizens. Cities are also the incubators of innovation, and advances in information technologies are expanding their ability to learn from each other's experiences, good and bad. In different parts of the world, local governments have taken the lead in forging new ways of doing business - new ways of addressing the challenge of inclusion, of reaching out to the urban poor and of involving ordinary people in deciding city priorities. Distorted allocations of resources, the rapid grovwth of poverty and the growing gap between the rich and poor are most visible at the local level. Most urban areas in Africa and throughout Asia, already struggling to manage their existing developmental challenges, are going to double in size within the next two decades. Yet, while most directly affected by the negative consequences of globalisation, local governments have traditionally been marginalised in the international developmental debate. Over the last several years, the world's major international associations of local authorities have engaged in an elaborate and comprehensive process to strengthen their contribution to this global debate. Byjoining forces at theWorld Assembly of Cities and Local Authorities on the occasion of the UN Habitat II Conference in 1996, for the first time local authority associations acted and spoke with one voice with their global development partners. This process of unification was further strengthened during the local authority congresses in Barcelona in 1999, and again in Rio' de Janeiro earlier this year. The World Assembly of Cities and Local Authorities ...AnIls, 1 . 3 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~* A~~~~~~ ~~ ~ ~ ~ Local Govermnents continued... declaration that was adopted in Rio and presented to Kofi Annan at the Istanbul+5 meeting in NewYork, was a significant step in the United Nations recognising local authorities as indispensable partners. The Community Agenda which was adopted at the IULA-FMCU Unity Congress in Rio reflects another important outcome of this process - local authorities are now speaking with much greater clarity and unity of purpose about their role, and demonstrating a firm determination to take forward their responsibilities with the communities they represent. As part of this wider process, the political heads of the world's major international associations of local authorities therefore welcomed the invitation of UNCHS and theWorld Bank in 1999 to create a new global alliance of cities with their development partners. We also welcomed the opportunity to work together, along with the 10 governments which helped establish the Cities Alliance, to negotiate and adopt its charter and governance structure. The Cities Alliance Consultative Group is providing us with a good opportunity to improve the impact of urban development cooperation. For the first time, local authority representatives are working as full partners with the representatives of the major bi-lateral and multi-lateral agencies that manage international urban development assistance. The Alliance is helping to set a new standard in development cooperation. Local authorities have also pledged their strong commitment to and engagement in achieving the goals of the Alliance as reflected in its charter. By linking efforts to make unprecedented improvements in the living conditions of the urban poor and to achieve the promise of well- managed cities, the Alliance is sharply focusing global support on two of the most critical issues facing local authorities. There are three specific aspects of the Alliance's strategy that particularly appeal to cities. First, the approach to city development strategies which the Alliance is promoting is filling a critical gap in the ability of many cities to develop a shared vision and long-term strategy for their economic growth and the well-being of their citizens. The priorities for action which are established in this process also provide a framework for improving the coherence of investments and external support. Second, the Alliance's Cities Without Slums action plan is providing Alliance partners with the opportunity to move beyond pilot projects to reduce urpan poverty and tackle social exclusion on a city-wide scale. Successful cities have recognised that they must work with the urban poor in this process, and that scaling up is imperative if they are to have a realistic chance of meeting existing and future needs. Third, we welcome the emphasis that the Cities Alliance puts on linking investments and investment partners to its activities. Civic leaders do not have the time or resources to engage in endless rounds of studies and discussions, and are committed to improving the efficiency of investing in the future of our cities. Cities and their associations intend to play an increasingly active role in helping the Alliance achieve these objectives. THE COMMUNITY AGENDA DECLARATION ADOPTED AT THE IULA-FMCU UNITY CONGRESS RIO DE JANEIRO 6 MAY, 2001 We proclaim this Community Agenda as universal guidelines for men, women and all local governments, and commit ourselves to promoting these principles and to guaranteeing their implementation. Article 1 Local Government should be adequately recognised in the legislation on the All citizens have the right, and should governmental structures of the country, and be able, to access information and relations with other spheres of government participate in decisions on issues should be based on partnership, mutual concerning the management and respect and understanding. Local affairs development of their communities. should be managed by local governments, in the interest of their population. The strength and foundation of local Cthintution fraeorksashoub Constitutional frameworks should be government is our proximity to the citizens supported by commensurate resources that we serve. Public administration should be allow local governments to take initiatives in responsive to the priorities of the citizens. local issues. Local institutions should be led by authorities representing the interests of the Article 4 majority of the citizens. It is the obligation of local Article 2 representatives to be responsive and accountable for their actions, and All citizens have the right to elect, citizens must be given the possibility through a secret ballot, their local - to hold their local representatives to government representatives. account. Appropriate means must be developed and Local government power must be legally made available to all citizens to ensure and ethically based. Decision-making should proper representation. Local and regional be transparent and to this end consultation governments must ensure a secure and feedback mechanisms should be atmosphere for citizens to express their developed. Public officials must submit opinion. themselves to whatever scrutiny is Article 3 appropriate to their office and take decisions solely in terms of the public interest. Legally elected local representatives have the right and the duty to govern their communities within the mandate given to them by the community. U l, . - @ -@ --F- riN: ~~~~~~~~~~~i Article 5 Sustainable development calls for an integrated approach linking environmental, Decisions should be taken in the economic, social and cultural aspects. Local sphere of government which is as government should develop partnerships close as practical to the citizens within the framework of environmentally affected. friendly policies and universal access to all services. All local governments committed Local issues, and issues that will have to achieve reductions of greenhouse gas consequences at local level, should be dealt emissions should appeal to their national with by, or in partnership with, Local . governments to ratify the Kyoto Protocol. Government and involving all community actors. Decision-making processes should be Article 8 efficient and timely. All citizens, men and women, should Article 6 work to overcome all kinds of discrimination and arbitrary A priority objecftve of local inequalities of treatment within the governents ust bethe otimalstructures, processes and services of provision of high quality services at locagoernment. al gernies reasonable costs guaranteeing the soul almetomensr that ther should aim to ensure that their broadest access possible. workforce reflects the ethnic and Local governments commit themselves to cultural balances of the populations high standards of public service, whether they serve. delivered directly, by contract, or through Democracy cannot be realised without the innovative public and private partnerships. adequate representation, participation and Local governments must consistently inclusion of all citizens, men and women, in improve their own capacity in planning and the local governance process. Local delivering services, taking into account the governments are committed to ensure that interests ~ ~ ~ ~~ goermet are comite todeensurelthat interests of the underprivileged, all children have a good start in life, Article 7 complete a basic education of good quality and have the opportunity to develop their Local governments' work should aim individual capacities in a safe and supportive to increase people's capacities and environment. Equal access to decision- choices through the development of making and services should be ensured for social capital as a way to ensure the all, as well as equal treatment in these well being of the present generation services. Working for changes of attitudes by without jeopardising that of the awareness-raising in the education system future generations. and within the political and administrative structure have proven to be a vital tool in integration and participation. Citics Allianr -- -s ...ou I -.. -~~w Ar ticle 8bis have not only proven to be effective, but have also led to sustainable improvements in Local Governments should be able to the practices of the institutions involved. ensure, in liaison with other legally Regular channels of communications competent authorities, the security of between authorities are becoming those who live in their territory, increasingly important in this globalised world. Within the competences recognised by the laws of their respective countries, Local We call upon the International Governments should be closely involved in Community to support Local the conception and implementation of crime Government in the values stated prevention and control policies, above, and we call upon local Article 9 governments to develop this Agenda for the well-being of our Local governments have the right to communities, and to unite their unite in order to help each other in strengths and work towards a united meeting their obligations towards voice of local government. local communities and to improve Both IULA and UTO are contributing the representation and safeguarding to this development through their of their interests at national, regional Unification process.This is why we and international level, call upon local governments of the Local, regional and international cooperation world to support and join us to build between local governments is of vital a strong and unified World importance. Local governments all over the Organisation of Local Government. world basically share the same mandate. This Ls an excerpt of the declaration adopted at the IUL4-FMCU Partnerships based on a common Unity Congres on May 6,2001, in Rio deaJaneiro. The full tex institutional understanding and experience may be fond on the IULA website at http://wwwjula.ozg/. Citcs Anane A L i..., -- Alliance i t14: , ' C~ j t - , A ....... r ' . je , t8s,, * The second Public Policy Forum held in pl(Al:;.£.'V 117 {llaT it ' ' ' ' Rome (December 2000) focused on the role of partnerships between local 8 1, . . , f l:Ows. authorities and community-based Xvo1'IdS .s csv ies -it, ci .> I (lial(XI.lt lset a Y n'lSi #Ot iv ' held in Calcutta in December 2001 and I. eU3 iXn 1 heBi''' ]ll,)f.rS t. f.A will focus on lessons from pro-poor city hA * 1yt~-K-- s;,i'; ielt'.n their strategies in relation to local economic development, poverty reduction, and municipal governance and expenditure. 1(.> '2:'.' /iL % &'r-gtii and t i'f a ' . } , i8 ei tffi^ a| Sw4. The Alliance's Policy Advisory Board, which *, , held its first meeting in June 2001, will in the future organise the conceptual content and outreach of these Public Policy Forums to help build strategic alliances in each Advancing collective know-how in working to Build megi l also each with cities is therefore a central objective of reion B embers willralso dao the Alliance. The vision is simple. Local their own networks to strengthen the constituencies participating in knowledge- authorities and their associations, the private sector and community-based organisations- s making a long-term commitment with the While the Secretariat is helping establish a support of their national and international framework for systematic information development partners - to share lessons gathering and learning in the Alliance s two foster new tools and agree on policy areas of focus, as is illustrated in the following orientations and standards of practice in section, most of these activities are very much areas related to the Alliance's goals. driven by Alliance partners in the regions. At the global level, the Alliance hosts a Public Policy Forum in conjunction with the annual meetings of the Consultative Group. * The first Public Policy Forum in Montreal Uune 2000) focused on the political dimensions of pro-poor urban policies and related institutional and financial reforms, reviewing lessons from experience in Africa, Asia and Latin America. - :- -. ~ A~iw (A Le;w > . I L -. ~~~~~~~Database analyses of successful scaling up slum '.1 -. -. Urban Upgradung aan bDS of egiona ed. The Alliance has created a ugaigadCSeprecs ~~----~~~~loal database on urban upradinig on its website to begin to Upgrading Tools and Lessons better understand the scale and extent of from Experience ongoing slum upgrading activities world- Under the leadership of the World Bank's wide, including who to contact for more Thematic Group for Services to the Urban information. The process of developing this Poor and the Massachusetts Institute of database is helping to strengthen learning Technology, an informal community of slum networks at the country and regional levels, ur from d ongoig slm upradig aciviteswrld-Upgrdernth pradershionr fom developmeBnt and is building on existing initiatives, both of agencies came together during a global video which are prerequisites for scaling up. This is conference series which included UNCHS work in progress and is being developed in from Nairobi, GTZ from Frankfurt, DFID collaboration with a wide range of partners from New Delhi, and the U.S. Agency for including NGOs, community-based International Development and the Inter- organisations, local authority associations, American Development Bank from universities, development agencies and Washington, D.C. Co-sponsored by the development banks. So far, 15 Alliance WAshntn D..C-pnsrdbh Alliance, this video conference series took partners have contributed information on place from February to April 2000 and began over 160 slum upgrading programmes. to structure a global effort which also included an electronic discussion As an integral part of these efforts to build a more comprehensive picture of urban between sessions to share perspectives, tools ^ ~~and experiences on scalin up slum upgrading at the country level, the Alliance is g u engaging in partnerships with universities upgrading. A well-structured interactive and other learning institutions in countries website was established where it is active. The first of these http://web.mit.edu/urbanupgrading partnerships was established with the which is maintained by the Massachusetts University of Sao Paulo. The university is not Institute ofTechnology to serve as a primary only providing office space for the Alliance s regional advisor (funded by Italy), but is also engaged in the learning and monitoring aspects of scaling up slum upgrading in 1 - Brazil. These activities serve both to build its curriculum as well as create a national cadre r of expertise. Future Alliance efforts in this . ,. > - regard will focus on working with existing - networks of learning institutions, as well as , with regional urban development institutes I (such as the Arab Urban Development Institute), to strengthen capacity to sustain ' national and regional upgrading databases WI' '20 ~ V I~ ~ ~ ~ resource for urban upgrading practitioners urban poor. This was seen as a first step in and to disseminate this extensive knowledge helping to establish a community of base to a wider audience. Two CD-ROMs upgrading practitioners in Africa. have been widely disseminated with Alliance support. The Cities Alliance has similarly sponsored the analysis of opportunities for city-wide and nation-wide slum upgrading in Central Regional Strategies America. The initial findings of this The Alliance has also supported efforts to assessment were discussed with most of the build communities of practice at the bi-lateral and multi-lateral development regional level. The first of these was the agencies active in the region, including both Regional Roundtable on Upgrading the IDB and the World Bank, at a meeting in Low-Income Settlements in Africa NewYork in June 2001. On the basis of this which was held in Johannesburg in October and further analysis currently under way, a 2000 to foster interest and commitment series of follow-up actions have been agreed among African practitioners and decision- upon which are likely to lead both to new makers. This meeting examined urban investments and a greater coherence of effort upgrading as a cost-effective development in scaling up slum upgrading in the region. programme that can have an immediate impact on improving the conditions of the Learning from Slum-Dwellers Over the past decade, organisations of the urban poor have become a national force in a number of countries and are increasingly sharing their experiences internationally. In Asia and Africa this process has been consolidated through the formation of Slum Dwellers International, a network of national federations in 12 countries that build organisational strength and procedures through savings and credit activities. A defining feature of these organisations is their willingness and capacity to enter into developmental partnerships that will advance the interests of their members. Globally, it is clear that the urban poor are the single most important resource in achieving urban development at scale. The importance of involving their representative organisations in planning and executing large urban upgrading programmes has not been well understood by many governments. The Cities Alliance is supporting an ambitious joint proposal from UNCHS and SDI that builds upon SDI's existing activities in three countries - India, South Africa and the Philippines. In each of these cases, SDI has created a network of urban practitioners able to engage with local and national political leaders. The objective of this initiative is to support the interaction of these organisations with city managers and higher levels of government to identify and address the institutional, legal and policy obstacles to scaling up slum upgrading The anticipated outcomes include a combination of policy and regulatory reforms designed to facilitate local partnerships with organisations of the urban poor in scaling up slum upgrading CDS Resource Cities strengthen and expand existing local knowledge resources, allowing the cities to The Alliance is supporting city development sleimdaepolm hog strategies in all regions, but it is the cities of Asia which have led the way in knowledge communities of municipal practitioners with Asia which have led the way in knowledge mdr nomto ehooy sharing and tool development. Japan is co-sponsoring a number of these initiatives in the region; these are also increasingly benefiting from the strong support of national associations of cities as well as the - national authorities responsible for finance and local government, especially in the Philippines, Indonesia and China. - - Civic leaders in the Philippines are leading - several of these efforts. While the Cities Alliance is providing support to the League - - of Cities of the Philippines to - institutionalise and expand poverty-focused - city development strategies from seven pilot cities to an additional 10 cities, the original - seven cities have formed a support group of resource cities and launched a website http://www.cdsea.org in order to Asian CDS Netwvorking \Vir,h 23 ciices fromn 13Asian countries participatirg. mayors, agencies and donors gathered mn Fukuoka. japani. July 1 1 and 12. 2000, for a conference to re port1 progress on CDS implementation The Asian City Development Strategies Conrerence 2000. sponsored bN the \4,rld Bank. LINC HS, the CitiesAlliance, the Ministry of Conscrucuion of Japan, Fukuoka Civ.. Fukuoka Prefecture and the Development Banlk of Japan, was [he second Asian CDS conference It wsas structured around the theme of implementing CDS in an urbanising and deceniralising Asia. The participaring ma\ors de% eloped [he Fukuoka Declaration 2000, which clarifies and strengthens [LIe mutuallI supportive role of cen[ral arid local go%ernnlenis. and promotes instItutionalisatconi of C DS apprcoaches so that they would be susainmed tiesond [he Eerms oF ofrice of currenc policical leadership. It recognises CDS as a tool for good urban governance %% here the %ision and course of action for future urban development are guided by the norms of parnicipation. responsiseness. transparenc'. accountabilitN. equity, securitL and sustainabilirv. Arid the cities pledged to share information and lessons on Lheir C DS e.xperiences s ith each o[her and wiLth fu[Lre generations of CDS cities. Ciyies Anance. Guiding the Process and learning agenda. The consensus of these task Identifying CDS Knowledge managers was that more guidance on the Gaps CDS process would be useful. Globally, theWorld Bank, UNCHS and the Accordingly, a draft discussion paper was Urban Management Programme initially widely disseminated in May 2001. It outlines took the lead by producing a draft CDS the strategic focus and key elements of city action plan, guidelines and progress reports s ~~~~~development strategies frorm the Alliance s which were presented to the Cities Alliance i Consultative Group. DFID, UMP and the perspective. The next step in this process will World Bank's Development Grant Faciiity be the development of a CDS resource Worl Ban's DvelomentGran Faclity framework, modelled after the above-cited are also supporting efforts to draw lessons upgrading resource website, to provide a from the experience of the first round of platform for the exchange of CDS ideas and CDS, particularly with regard to urban experiences and facilitate further CDS tool poverty reduction. development. The primary source of this n . . . . ~~~~~~~knowledge will continue to emerge from Given the fact that these initiatives are beimg cities themselves, and the task of the Alliance developed by so many different partners in will be to maintain the framework in which each region, the Secretariat organised a two- day worksho in March2001,bringingthese lessons can be captured and shared. This CDS website and CD will be developed together the task managers in order to refine the framework used to guide the CDS with local authority organisations so as to process, identify the issues that require generate and disseminate this information further thinking and structure a related through their networks. InstitULtionalising CDS iri the Phflippine; Despite relauel'E, fa%ourable economic grovth in recent %ears. pocerv\ - and. in partCcu]ar. urban poserm - remains a serici:us problem in [he Philippines This is a l-rov: ine challenge to local go%ernniernt: unILs %.hich. fo1loming the decenrtralisation proccss begun '.%ith the Local Gcvernment Code of 1991 to prornote local democrac% and go%ernance. ire responsible for deliv ering basic ser% Ices arid alles Hating urban poxerm. 'c-e [he! need support to build capacities to govern eflecciselk in partnership ss ith local ci% ii societs and to have a %ehicle to accc;s and dissemninae knovdledge oin effectie and pro.en Innoatiorc, in urban governance and pomertm reducuon from cither experiences The C.DS prograniile vill deselcip a toolkit based on local and international C.DS experietnce;: Lraining piogranmies fr local go%ernnicrt officials and trainers to expand axid susiain the Lnaiat'e. 10 ne%% cii% deelopmcnt strategies inclusi%e of acucon and in',estment plans. niecharitsms for sharing knov. ledge and the latest thiiikiig on C DS: and a small coordtnatng teani to drise the prcicess. In addition. nauonal polic% instiutions such as the Mlunicipal Deseloprneni Fund Office. the Housing and Urban De%elopnien[ Coordination Council. the DeparLment of the Interior and Local Go%ernnieit and the Asian Institute of N Ianagcment -. ill join to isiLtutionalise the process at ri national level New Knowledge Frontiers institutions with a long history of commitment to and experience and success in delivering sustainable financial services to Alliance has launched several initiatives the poor. This will be a learning exercise, which are designed to identify and fill with the different institutions working knowledge gaps that are central to achieving together to learn from each other's models its goals. Several examples follow as illusgoations, Severalexamplesfollowasand experiences and applying these lessons throughout their networks. The three Sustainable Housing Finance for the networks of financial institutions engaged as Poor - Innovations and Good partners in this exercise collectively Practices. Access to credit for the poor is a represent over 100 of the leading financial global policy challenge, which has a direct institutions involved in micro- and shelter impact on incremental shelter delivery as finance provision to the urban poor. Over 60 well as local economic development. per cent of their clients are women. Innovations in providing sustainable financial and other services to poor people for shelter are emerging from different practice cases from among their member institutions for field analysis and quarters, particularly in micro-finance. T Several organisations have focused on documentation on innovations. Lessons from Several organisations have focused on .. this initiative will be widely disseminated to gaining tenure and property rights for the inspire replication, adaptation and further poor and are also innovating with financial etyit hsae ycmeca iaca services for communities. To date, many of entin to th erci institutions. In addition to the three these experiences have not been implementing partners, Consultative Group documented, or at least analysed according to Assist the Poorest, International Finance to a common framework. Many commercial Corporation, Plan International, USAID and financial institutions, including those that UMP are co-sponsors and participants in this started as micro-finance institutions, are initiative. interested in learning from other experiences in order to improve their own Building Latin American and product offerings to poor clientele. Caribbean Capacities in Urban Governments and their funding partners are Knowledge Management. Renewed also interested in learning from successful interest in the urban development agenda and efficient housing finance schemes to has prompted new questioning on how best improve their own models of support. to support cities as engines of growth and of The Cities Alliance has launched a primary poverty alleviation. Although rich documentation on urban development analysis on this topic, initially through experiences have been produced, the results assessing innovations from field of all these efforts are not strictly programmes. The Alliance is partnering with Accion International, the Cooperative comparal dueroathe diversi FoTato and FoTie Fiane conceptual approaches, as well as the diverse Housing Fouridation and Frontier F'mance, statistical indicators used for analysis. each of which is a network of financial Accordingly, there is the need to build a knowledge base on urban development CIVIS Notes Series strategies and processes to which municipal As a learning alliance, one of the Cities authorities and urban stakeholders can have A lliance' is o t asia easy access - a base where comparable Alliarnces objectives is to act as a indicators can be found as well as clearinghouse to distil, disseminate and documented best practices. expand knowledge of CDS and scaling up slum upgrading Cities Alliance launched the The Cities Alliance is supporting an initiative short note series - CIVIS - as a forum for launched by UMP and IULA to develop such sharing practical experiences and successful information in Latin America and the examples among policy-makers and Caribbean. This project intends to contribute practitioners. The focus is on practical cases to the building of a knowledge base on and examples of what has worked and why, urban development strategies that can as well as on policy issues. The first two become a tool for policy decisions. A issues published are The Cities Alliance Vision comparative study and analysis will be and How Swaziland Is Upgrading Its Slums. carried out in 8 to 10 cities that have CMS is published in English, French and achieved economic growth and significant Spanish. Future topics will be solicited from poverty reduction, on the basis of a common Alliance members and partners, and methodology. The study will involve work by feedback and additional topics will be sought various urban development partners (cities, systematically from the readership (via national city associations and NGOs email-based surveys, website-based specialised in urban management), which feedback, etc.). CIVIS is distributed via print will contribute to the production of copies and the Cities Alliance website. knowledge - and, at the same time, benefit All Cities Alliance materials are available from training activities. All its Allite at from its website at http://www.citiesallianc:e.org. 215 Cities A' ic *. Iu,si are ct zt'ivtic. * Coherence of effort - promotes | | arCe seedi fu11'ndltS Ilsed({ tot help cross-sectoral coordination and inter- f\I I Iati{.4e pan: vie rs hgui hi stl rng agency collaboration; *+r; |f .x d for . v vry-i e amnI * Scaling up - moves beyond pilot riai.l l<:aln-shvrit1e s .Sluml ' , projects to city-wide and nation-wide scales of action; ~ni f (tv t.jtsi fr,aStettt< a Institutionalisation and otvlfil>.' rlfilfJ h : ' Sg8&^ an.I 64yg replication - helps cities and their national associations institutionalise city int stiuS,l, irn 's e P re-a'' t development strategies and city-wide Since its inception, slum upgrading; the Cities Alliance has invested US$15 million in 22 countries and in 15 regional and global * Positive impact on environment - learning activities. The Alliance is selective in achieves significant environmental the initiatives it funds. All proposals are improvements, especially in the living evaluated against the 10 core criteria that are conditions of the urban poor; and reflected in its charter: * Duration - achieves deliverables within well-defined time frames, * Targeting the objective -city preferably within 24 months. development strategies and/or scaling up slum upgrading; Cities Alliance activities are designed and carried out by Alliance partners, enabling * Government commitment and them to marshal their resources to improve approval - approved by local and the quality and coherence of urban national authorities; development cooperation and the poverty * Linkage to investment follow-up reduction impacts of their urban - potential investment partners are investments. involved from the design phase; The following sections illustrate initial * Partnerships - conceived in a Alliance activities in each region, their participatory process with local linkages to investments and how these stakeholders, including private sector activities fit within the regional context. and community organisations; * Co-financing - combines seed funding from the Alliance with co- financing from cities as well as other sources; CidaeS Aiiiane. w _'t-'f_ a 4 - iN w~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~, a p~~~~~~~~~A p. I;.e _ _ --- 5_9 L$i-'-"''''"--i . . ---1_. ' - 2~~~~~~~~~~~~~~~~~~~VI Sub-Saharan Africa Urban Population Growth: 1950-2030 1,400,000 1,200,000 1 o. o,e,i __ _ _____ :|l) __ ___ _- Sub-Saharan Africa, currently the least r10(1,) [_ _ _ __ E,.* urbanised region in the world, is . _ ^ ^ ~experiencing an extraordinary 29: ;|:j -- -------- n () _2030 demographic shift. Its urban population L____*____*_________ tripled over the last 25 years and is projected to 1950 1970 1 90 2010 2030 ~~~triple again by 2030.Yet Africa has the lowest Ura -oplto per capita GDP growth and is the only region in the world where the urbanisation process has Source: Adapted from Population Th-vision of the Department of Economic not been accompanied by economic and Social Affairs of the United Nations Secietariat (1998). World Urbanization transformation and growth. Prosperts:The 1999 Revision. Many African cities are characterised by weak systems of urban governance, poorly maintained infrastructure, poor service delivery and stagnant or declining rates of economic growth. Sustained urbanisation of poor people has led to the rapid expansion of slums and shanty towns, often on marginal land and on the urban periphery. Insecure tenure, informal and unregulated land and housing markets, and a lack of formal service provision especially affect the urban poor and undermine the ability of cities to provide secure environments for their populations -and for growth. Africa's urban areas produce around two-thirds of GNP, yet local governments have access to around 1 per cent of GDP in fiscal and financial resources. Democratisation and decentralisation policies, however, are creating opportunities to improve urban management and service delivery, and urban citizens are demanding improved accountability. Financially, local governments in Africa still have a very limited fiscal capacity to attract the capital to make necessary investments.3 Average local government revenue per capita per year (averaged over 1994-97) ranged from a low of US$15.21 inAfrica compared with $78 in Asia, $252 in Latin America and $2,764 in industrialised countries. Annual per capita expenditures ranged from I~ ~ OXli (1i1M i; ^ 1; Madagascar: Slum upgrading and community development through CDS in four secondary cities CDS for Antananarivo focused on infrastructure development, urban services improvement and city poverty strategy Mauritania: Nationwide slum upgrading and urban poverty alleviation Nigeria: Scaling up upgrading through a CDS approach in Karu Regional: Regional roundtable on upgrading low-income settlements in Africa Rwanda: Kigali economic development strategy South Africa: Johannesburg city level comprehensive development framework Preparation of a Southern Africa Cities Alliance 3. Akin Mabogunje, 'Access to Credit for Local Governments: The African Experience,' keynote address at the Afrocities 2000 Summit (15-20 May 2000. Namibia). 4. Urban Indicators Programme, UNCHS (Habitat), Nairobi. Reported in Urban Age, 'How Much Do Cities Earn and Spend?' (Autumn 1998). st o u $10.23 in Africa to $100 in Latin America and $1,133 in industrialised countries; only Asia, at $7, had a lower level of expenditures.4 The Alliance s Policy Advisory Board has identified not only the poor in cities but also the issue of poor cities as a critical area for Cities Alliance focus. Working with strongly committed local and national leaders, Alliance activities in Africa reinforce locally driven participatory initiatives. Through support to slum upgrading efforts in Madagascar and Mauritania, the Alliance is aiming to expand access to urban infrastructure and services for the urban poor, and promote participatory approaches that empower governments and communities to make better investment decisions for the poor. By supporting CDS efforts in Antananarivo and four secondary cities in Madagascar, Johannesburg, Kigali and Karu, the Alliance aims to reinforce and strengthen the decentralisation wave spreading across Africa, assist in the financial and institutional reforms necessary for sound cities, promote local economic development, and engage the private sector in making urban investments. In several cases, such as in Madagascar and Nigeria, the Alliance is assisting CDS initiatives which are incorporating slum upgrading as a priority emerging from these exercises. The Alliance is also developing partnerships in the region with the Municipal Development Programme which will focus on secondary cities and their regions, as well as with other regional programmes such as MELISSA. Madagascar - Slum Upgrading and Community Development in Four Major Cities and CDS for Antananarivo. Madagascar's primary challenge is rapidly deepening poverty. Chronic malnutrition, weak health and education facilities, and cholera epidemics are aggravated by an annual growth rate of 3 per cent and an urbanisation rate of as high as 6 per cent. Madagascar has recently experienced extremely strong urbanisation, partly driven by urban economic growth. As a result, some 70 per cent of national annual demographic growth is urban. Much of this has concentrated in and around the capital of Antananarivo, and has resulted in very high levels of urban poverty, with severe overcrowding and urban environmental degradation amidst dilapidated physical infrastructure.The functioning of Antananarivo has a direct and significant impact on the national economy. The Alliance is supporting the development of pro-poor CDS in Antananarivo, as well as in four secondary cities - Antsirabe, Antsiranana, Mahajanga and Toamasina. These CDS use a participatory approach to empower both communities and local governments and to identify priority areas for investment in under-serviced urban areas. Since a broad range of Alliance partners - notably the World Bank, the French and German development agencies, the Region of lie de France, USAID, Japan and the European Union - as well as the domestic private sector are supporting related programmes in Madagascar, these city development strategies are helping strengthen the coherence of these efforts. Already, strong investment linkages have emerged as a direct result of the coordinated CDS process: Citk5 Aii * France's AfD has coordinated a transport study it is financing to link with the CDS process and may help finance the resulting transport investment priorities. * Madagascar is expected to include an urban transport component, which would otherwise not have been included, in an upcomingWorld Bank transport project, as well as in a forthcoming urban project. * CDS outcomes, particularly work on the development strategy and capacity building of local authorities and their civil society partners, will be used in the design and preparation of a forthcomingWorld Bank municipal capacity-building project with an estimated value of US$30 million. Mauritania - Slum Upgrading and Urban Poverty Alleviation. Although it is slowing down, the rate of growth of Mauritania's urban population since 1950 has been extraordinary - its current rate of 5 per cent per annum is half the rate of the 1950s, yet still more than double the total growth rate. In 1950 there were 19,000 people classified as urban in the whole country. This had reached 1.5 million by 2000 and will double again in the next 20 years. One of the most obvious consequences of this growth has been a concurrent rise in urban poverty, as well as the inability of local governments to keep pace with critical infrastructure and institutional changes. Mauritania is a good example of the sort of challenges current in West Africa - challenges which will continue to affect the entire continent over the next two decades. The Government of Mauritania is refining its urban development strategy, which includes a thorough reform of regulatory and institutional frameworks. Mauritania has initiated a comprehensive and national approach to urban upgrading, building upon the priorities that have been identified through participatory processes. The prominent role given to the extension of secure tenure, the role of the affected communities and the private sector, economic development, affordable housing and credit for the poor comprise a model approach to nation-wide slum upgrading The government's urban development programme emerging from this strategy and related activities supported by the Alliance's grant will be funded by the government, the World Bank, the African Development Bank, AfD and KfW in the amount of US$97 million, beginning in 2002. Rwanda - Kigali Economic Development Strategy. The city of Kigali plans to undertake an economic assessment in order to develop a strategy for economic growth and poverty reduction for its estimated 600,000 inhabitants. This economic strategy will complement a master plan detailing land use and infrastructure recommendations for Kigali being conducted with UNDP assistance. The assessment will also permit Kigali to provide solid data on its potential revenue base so as to better understand the potential benefits of the 4 ' -,g: i...)z Government of Rwanda's decentralisation reforms, including restructuring of the public finance system to provide sub-national governments greater autonomy and accountability. The participatory economic assessment is being done under the guidance of an advisory group made up of small and large businesses, private and quasi-private financial institutions, poor communities, civic associations and national departments including local government and revenue and local authorities. USAID and the Cities Alliance are jointly supporting this effort. The primary output will be an action plan for public and private leaders within the Kigali community to strengthen the city's economic future. Lessons on the Kigali model will be disseminated to other Rwandan cities through a case study and capacity-building workshops. Johannesburg City Level Comprehensive Development Framework. In 1998, Johannesburg was financially bankrupt, with a wide variety of services being provided inefficiently by an administration noted for duplication of staff and overlap of functions. Moreover, although greater Johannesburg is the financial and services hub of the national economy, the HIV/AIDS epidemic is taking a terrible human toll, reducing life expectancy to 44 years by 2010. Unemployment and poverty are rising, and significant numbers of people lack access to basic housing, services and skills. In response to these myriad problems, the city of Johannesburg initiated a process of major fiscal, financial and institutional reform. The reforms enacted include an upgrading programme of one of the largest urban informal settlements in South Africa, the creation of metropolitan utilities, a programme of local economic development, inner city reform, the implementation of an urban safety net programme, the creation of a metropolitan health district, the establishment of a metropolitan police system, a unified fiscal management system and a strategy for restructuring the city s financial debt. Support from the Cities Alliance, the World Bank, the UMP and a number of other partners augmented the Greater Johannesburg Metropolitan Council s own investment of about US$3 million to produce the strategic plan, known as iGoli 2010.The council has engineered a comprehensive - and, at times - controversial restructuring process and has regained its creditworthy status. The council is implementing about R500 million in capital investments during 2001-02. The iGoli 2010 model has been widely disseminated and is considered a world-class initiative. Business Day credits Johannesburg's operating surplus of R153 million in 2001, up from a capital budget deficit of R259 million in 1999 to its iGoli restructuring plan, which saw non- core assets sold off, corporatisation and the creation of utilities to be run by the private sector.5 TheWorld Bank, USAID and DFID are working in partnership in response to a request from South Africa's major cities to establish a Southern African Cities Alliance to help promote the CDS experience more widely. 5. Business Day (21 June 2001). 'o-7 !'SX~~~~~~~~~~~~~~~~~~ '4 W k - : .2 fhIki 'i*=- L__~1* -I :" _@1 IL |XWtt'- -~i A 1ff, a -|, aA ' : j @- ° >> rj '" 4 j \ Asia Urban Populaton Growth: 1950-2030 4,500,000 .'l:______ _.._.._4,_ _000,00__ 3,500,000' 3,000,000 2,S00,000 ,, 2.OD000.0 WE __. Asia's urban population is projected to 1,500,000 _ _ ___. double over the next 30 years. By 2015, 17 of 1.000.00- - the world's 30 largest cities will be in Asia and will have an average population of 15.9 million. The sco,oii region s urban areas are critical to national economic 19so 19=0 1990 10 30 competitiveness and growth, accounting for 80 per UTotal Population D Urban Population cent of incremental economic growth. Souce: Adapted fnom Population Division of the Department of Economic Asia's urban transformation is producing a number and Social Affairs of the United Nations Secretanat (1998). Worid of innovations. Several countries in the region have Uruzaton Prspects. The 1999 Revion. launched supportive national policy frameworks. China, for example, has a national policy to promote the growth of secondary cities as an integral part of its environmental and agricultural policies to promote off-farm employment and take population pressures off rural areas. The region has also pioneered large-scale micro- finance and slum upgrading programmes, and is home to some of the largest NGOs and community-based organisations in the world. Organisations of the urban poor - many led by women - have created city-wide networks, some of which have already expanded state-wide and across national boundaries. Examples include the National Slum Dwellers Federation of India, India's SEWA Bank and the Payatas Scavengers Association in the Philippines. Many Asian cities are capitalizing on these reforms and institutional frameworks to conduct holistic and poverty-focused CDS, and are also building learning networks using information technology both within and across nations. Regional: Asian CDS Workshop 2000 Bangladesh: Khulna: Options for sustainable urban upgrading Cambodia: Scaling up community-driven development processes for slum upgrading in Phnom Penh China: Metropolitan-level CDS in Changsa/Zhouzhou/Xiangtan city-region, CDS in Giuyang, and CDS - urban indicators in Giuyang and Shengyan India: Hyderabad - poverty-focused CDS Gujarat state urban slum policy Indonesia: Institutionalising poverty-focused CDS in 10 cities Nepal: Kathmandu CDS and informal settlements study Pakistan: CDS and slum upgrading initiative for Peshawar Philippines: Scaling up poverty-focused CDS Vietnam: Enhancing access of the urban poor and vulnerable groups to basic infrastructure and housing The Alliance's Asian initiatives respond to regional priorities and innovations. Examples include support to the state of Gujarat in India to frame a state-wide slum upgrading policy and in China to develop CDS for city-regions; and support to poverty-focused CDS in seven cities in the Philippines, poverty-focused CDS in 10 cities in Indonesia and others in Peshawar, Hyderabad and Kathmandu. The Alliance is responding to the existing rich institutional frameworks and demand for lateral learning from its partners through support to networks of the urban poor and of local authorities. It provides support via UNCHS to the Slum Dwellers International network to assess legal and regulatory barriers to slum upgrading across three countries; and it also supported the Asian City Development Strategies Conference in Fukuoka which, with Japan's support, brought together 23 cities in the region to share their CDS experiences. The Alliance is also supporting a regional initiative with CityNet working through existing networks of local governments in the region to strengthen local capacity to institutionalise the CDS process. Given the challenge of urban poverty in South Asia, the Cities Alliance placed a regional advisor in India to help build on innovations in the region and its enormous human and institutional capacity to move slum upgrading to scale, with a special focus on India. DFID is funding this position. China - Metropolitan Level CDS and Urban Indicators. The pace of economic growth and urbanisation in China over the past 20 years has resulted in the emergence of a number of metropolitan regions centred around one or several large cities. These city-regions have been playing a leading role in national economic growth and are likely to remain the main engines of growth for the country. Despite their unprecedented growth, serious difficulties exist that will hinder their efficient and sustainable growth in the future and prevent the spread of economic prosperity to a larger population. These difficulties include economic inefficiency from trade barriers, local monopoly and restrictions on mobility, duplicative and wasteful investment in urban infrastructure, over-exploitation of natural resources such as land and water, and institutional and policy weaknesses regarding urban governance and planning, with no framework for stakeholder involvement and consensus building for essential cross-boundary issues. Since May 1999, the district of Fuling has been preparing its CDS with assistance from the World Bank to address these issues. The Alliance is providing support to extend this pilot CDS to the city of Guyiang in Guizhou Province, as well as at a broader metropolitan level to the Changsa/Zhuzhou/Xiangtan region in Hunan Province, an effort involving the participatory formulation of regional development strategies. Ci.e Aw,iis, One key interim outcome of the ongoing China CDS activity is the proposal by Hunan Province to theWorld Bank to finance an urban development project for the three cities included in the CZT region exercise. The CDS provided the opportunity to link financial support from the World Bank to the cities' overall development strategy as well as lay the foundation for participatory strategy formulation, linkages between economic development strategies and physical plans, and the financial viability of investments, leading to strengthened plans to address the city-region's infrastructure needs. The total project cost is preliminarily estimated at US$250 million, with a proposed loan from the International Bank for Reconstruction and Development of $100 million. Linked to this activity, policy-makers and managers at the central and local levels in China have agreed to participate in a pilot exercise to develop performance indicators for CDS. The participating city-regions include the CZT region, Guiyang and Shenyang City in Liaoning Province where a similar exercise is being carried out under the UMP aegis. This pilot initiative will set a standard of practice and guidelines for CDS performance indicators in China and more generally. India - Preparation of Gujarat State Urban Slum Policy. The State of Gujarat is undertaking a participatory process to develop a state-wide urban upgrading policy. This would be the first state slum policy in India, with demonstration effects for other states considering similar initiatives. The activity is designed to create the policy platform upon which slum upgrading will be brought to scale in Gujarat, building on the state's long experience in slum upgrading and on partnerships between local urban bodies such as the Ahmedebad Municipal Corporation and SEWA Bank, a cooperative bank of poor women. The slum policy intends to address issues of tenure, resettlement and rehabilitation, and increasing poor slum dwellers' access to financial, social and environmental services, among other issues raised in the consultation process. Indonesia - Institutionalising Poverty-Focused CDS. While legislation enacted in 1999 empowers local governments with new roles, capacities and accountabilities towards their local citizenry, the mechanisms and capacity necessary to manage cities in a newly decentralized system are not in place. The success of this decentralization is critically dependent upon the creation of a framework for effective and inclusive city management, as cities move to control their own destinies. Three parallel developments are influencing the evolution of a city management framework. Since the Asian economic crisis, urban poverty has risen to the forefront as one of the major urban challenges; good governance - transparency, accountability, inclusion - tops the governments and donors' development agenda; and a nascent but strong civil society which wants an active role in determining the future of cities. In response, the Government of Indonesia wants to build inclusive and poverty-focused city management capacity. The Alliance is supporting an effort spearheaded by the Indonesian government to institutionalise poverty-focused CDS as part of the country s overall national urban policy. This initiative will work with 10 cities selected on a demand-driven basis to develop workable CDS processes for opening up local decision-making processes and improving the accountability of local governments to their citizenry; these techniques will then be mainstreamed to all local governments in Indonesia. UNCHS, theWorld Bank and UNDP are supporting these efforts, as is GTZ in a parallel initiative. These actions should improve the quality and impact of urban investments, including follow-on investment to be provided by the World Bank, through a US$150 million community-driven urban development project and a proposed $300 million urban local governance reform project. Vietnam - Enhancing Access of the Urban Poor and Vulnerable Groups to Basic Infrastructure and Housing. The severe impact of decades of under-investment in housing and infrastructure is being compounded by high urbanisation rates throughout Vietnam. Notwithstanding recent strong economic growth, urban poverty is extensive and deepened by exclusion and marginalisation. Urban infrastructure is in very poor condition, whilst the housing situation is characterised by severe overcrowding and dilapidated stock. In order to meet agreed national targets, an additional 300 million units of housing stock needs to be produced by 2010 and the worst housing stock renovated. The Vietnamese Ministry of Construction has used the Cities Alliance with the support of the World Bank, UNDP, UNCHS and other partners to formulate a national urban upgrading programme targeted at the poorest urban residents. This work will build upon the CDS activities already completed in Haiphong and Ho Chi Minh City, and strengthen recent reforms in the housing sector undertaken by the Vietnamese Government. These activities complement and support the Government's preparation of a large-scale urban upgrading project focused on basic infrastructure and low-cost housing improvements, to be financed by theWorld Bank in 2003, as well as a joint Swiss-UNDP project in seven provincial cities. 5- - 4 -4 I 5, 11' 57 I ., *1 4 i4' U. 4 ---- '5 a. 4 -4 - !uuE¶ At t - ,jfr)j .5- , p.. - 4. El.,. '9W '¼ *5 37 Europe and Central Asia * Urban Population Growth: 1950-2030 500,000 i 400,000 . _______ 3040,000 _ _ _-- 300,000 The countries of Eastern Europe and E H - __ Ia Central Asia face unique challenges. Already z 200,000 _ .. >; -s | | _-s - highly urbanised, 300 million of the region's 450 100 - -~ - million total population reside in cities and towns. 00,000 __1 1 _ . - - The political transition following the collapse of the socialist bloc led to severe economic shock o throughout the region - of the 27 countries that had 1950 1970 1990 2010 2030 output declines for the entire decade of the 1990s, OTotal Population furban Population 21 were in the Eastern Europe and Central Asia Soume: Adapted from Population Division of the Department of Economic region. This has most dramatically affected urban and Social Affairs of the United Nations Secretariat (1998). Worid areas as large-scale enterprises failed, exposing the Urbanization Prospects: The 1999 Revision. structural weakness of the urbanisation that fed post-war forced industrialisation. Policies which led to higher rates of industrialisation and urbanisation were not matched by higher productivity or an adequate services sector. For example, Russia, which has a per capita income one-tenth that of the United States, has the same level of urbanisation - 74 per cent.6 In Eastern Europe and Central Asia, the urban poor are twice as numerous as the rural poor. However, the incidence of urban poverty is highest in the region's secondary cities, as they have often been most exposed to the effects of economic decline. More recently, conflicts in the Balkans have created further migration into urban areas. Throughout the region, cities are reconstructing and re-inventing They are having to deal with issues of resource efficiency - with distorted land markets, collapsed social services, the over- production and mismanagement of urban assets and infrastructure, inappropriate institutional frameworks and a lack of skills and accountability. Decentralisation, democratisation and fiscal devolution are taking hold in parts of the region, and local initiatives are showing promise. a - - - * Bosnia-Herzegovina: Mostar - local economic development strategy Bulgaria: Sophia CDS The Alliance is supporting two dynamic local leaders in this region in their efforts to establish a participatory vision for their cities. The principles embodied in the Alliance's approach to CDS are being applied in these two cities, in a sharp departure from the 'master planning' model of the past, and are already creating ripple effects across the region. 6. This material draws extensively on From Commissars to Mayors: Cities in the Transition Economies, a report prepared for the World Bank-International Monetary Fund Annual Meetings, Prague, September 2000, by Robert Buckley and Federico Mini. citic5s Ailtlsre Bosnia-Herzegovina - Preparation of Mostar's Local Economic Development - Capacity Building and Business Improvement Programme. Prior to the war, Mostar had been the economic centre of the Herzegovina region and beyond, and was one of the most developed regions in the formerYugoslavia. Its wealth was based on essentially government- controlled and -owned factories. Six years after the end of the war, Mostar continues to suffer from critical economic, social, environmental and physical damage - damage caused by the war and resulting from the former centrally planned and controlled environment. For example, it is estimated that the current economic output of the city is between 10 and 20 per cent of 1991 levels and unemployment levels are at at least 50 per cent. What industry remains is very traditional, much of it still in the public sector, much of it retrenching in the face of increasing global competition and lack of investment. The city of Mostar is working with a wide range of local and international partners to help meet the severe economic, social, physical and cultural challenges it currently faces. The Alliance is providing support for a preparatory grant to enable Mostar to develop and implement a comprehensive CDS that will focus on alleviating the high unemployment and resulting poverty in the city. In addition to local partners, international partners have been mobilised in this effort - the European Union through CARE International, the World Bank, DFID and the Konrad Adenauer Foundation. Bulgaria - Sofia CDS. The city of Sofia is formulating a CDS in a broad-based consultative process with key stakeholders and is developing institutional capacity to ensure its implementation. The aim of this CDS process is to enhance the development of a democratic and self-reliant municipal management system to generate sustainable, long-term benefits for its residents. To this end, the city's mayor has engaged in a broad and very successful participatory process to elicit stakeholder feedback on development priorities. At the consultations, citizens and experts from the public and private sectors reviewed impediments to local development and brought new perspectives on infrastructure and social needs and opportunities. The experience of this process and the outcomes of the strategy formulation will be shared with other municipalities in the country. The CDS process financed by the Alliance and supported by the World Bank has also helped to integrate fragmented donor assistance in the urban sector and generated positive synergies; USAID co-financed the consultation process with contributions from both a Canadian and European trust fund. Sofia has initiated discussions with the European Bank for Reconstruction and Development and the Japanese government to secure financing for its transport, infrastructure, energy retrofits and improvement of panel housing Sustained dialogue with UNDP, GTZ, DFID and the European Union has served to better position Sofia in future technical assistance programmes. The process has provided much-needed input into the ongoing effort to define and implement regional plans in Bulgaria and disseminate learning experiences throughout the country. Plovdiv, Bulgaria's second largest city, has requested that the World Bank support its development activities through a CDS process. - r --+ TV S ~~,s -~r lf - I ___I__ D , Y's' w<' .,- u le -aJs U* 'a-.^ rr g;g >~~~~~~~~~~~~~A Latin America and the Carribean Urban Population Growth: 1950-2030 800,000 700,000 _ _ - E Latin America and the Caribbean is a Z 300,0o0--- __=_ highly urbanised region: 75 per cent of its _ - * population is urban, 81 per cent - or 540 million 200,000 - ___ of its projected population - will be urban in 100,000 _ _ __3 2020, and 83 per cent by 2030. This urbanisation _ ;* has been the normal outcome of economic 1950 1970 1990 2010 2030 transformation and growth. Total Population Urban Population Several countries in the region have dramatic Source: Adapted from Population Theision of the Department of Economic urbanisation rates. For example, by 2030, and Social Affairs of the United Nations Secretariat (1998). World Urbanization ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Prospects:The 1999 Revisi-on. Argentina, Chile, Venezuela and Uruguay are projected to have populations exceeding 90 per cent urban; Brazil will follow closely at 88 per cent urban. Poverty in the region is urbanising - and so is Latin America and the Carribean extreme poverty. Up to 25 per cent of the urban Urbanisation and Economic Growth: 1965-1999 population, or 90 million people, live in slums. Nowhere else in the world is the urbanisation of Urban population (% of total) poverty more evident, and the increasing inequity 65 Un and disparity threaten stability and sustainable development profoundly. For example, 85 per 55 cent of the population ofTegucigalpa, Honduras, , has access to safe water, but in the poorer neighbourhoods there is water for one hour every & 35 _ l four days; and the poverty incidence varies from 1.7 per cent to 77.3 per cent across 25 - _ . _ neighbourhoods of Sao Paolo, Brazil. 15 There is growing recognition in the region of the 5_*___*___*_v_*___*___*_*______ need to address urban poverty as the basis for 1965 1970 1975 1980 1985 1990 1995 1999 sustainable economic growth and environmental management. Major innovations in the region are Li Labor force in agriculture EAgriculture. value added fuelled by this recognition. Examples include the pioneering work led by Hernando de Soto on Source: Danny M. eipziger and Marianne Fay LCSFB World Bank 2001 property rights and land titling in Peru, the emergence of an industry of financial institutions specialised in profitable service delivery to the urban poor, large-scale integrated slum upgrading programmes in several of Brazil s major cities, and the increasingly active role of the private sector in urban upgrading and low-income housing delivery in El Salvador. gir Ml I * * 0 Brazil: Developing a national enabling strategy for housing and urban upgrading Scaling up slum upgrading in Salvador, Bahia Recife metropolitan region development strategy Central America: Regional strategy for sustainable city-wide upgrading El Salvador: Strengthening capacity for city-wide slum upgrading in the metropolitan area of San Salvador LAC Regional: Building a knowledge base of city development strategies in LAC Mexico: Scaling up upgrading and managing informal urban growth in the metropolitan area of Mexico City Alliance activities in Latin America are focused on innovations in the region to develop city- wide strategies and to scale up slum upgrading to metropolitan and national levels. These activities include support to Brazil to establish a national enabling strategy for housing and upgrading, and for a major slum upgrading initiative in Salvador, Bahia; strengthening capacity for slum upgrading with 14 municipalities in the San Salvador metropolitan area in El Salvador, and in the metropolitan Mexico City area; and promoting lateral learning and knowledge-building efforts on successful city strategies that have led to poverty reduction and economic growth. The Alliance has a regional advisor located in Brazil (funded by Italy) to support the Alliance s major upgrading initiatives in that country as well as related initiatives in the region in order to help achieve the targets established in the CitiesWithout Slums action plan. Brazil - Building an Enabling Strategy for Moving to Scale. Already substantially urbanised (80 per cent) and with a long history of urban upgrading, Brazil is in a unique position to tackle urban upgrading on a national basis. However, market failures and a lack of systematic learning from previous innovations and city-level projects will need to be resolved in order to create the ponditions necessary for a national approach. Brazil can serve as a role model for developing countries wishing to implement a decentralised national upgrading programme. Its government is, with World Bank and UNCHS support, developing partnerships with a wide array of local, national and international players to extract lessons from Brazil s rich experience in upgrading to date and channel those lessons into a national upgrading strategy and plan. This is the first phase of a multi-year effort of urban upgrading and decentralisation strategy in Brazil.The partnerships for this phase will be developed around five themes: a critical retrospective assessment of Brazilian upgrading experience from which lessons can be drawn for future application, urban land markets and access to secure tenure by the poor, increasing the private sector's role in upgrading, market-based financial mechanisms and cost recovery for scaling up, and generating employment and income opportunities for the urban poor. Cit.' A...nc Brazil - Salvador, Bahia, Technical and Social Assistance Project. In Salvador, the capital city of the state of Bahia, Ribeira Azul is the city's highest risk area, where in four square kilometres, around 40,000 households live in informal subdivisions and squatter settlements. Ribeira Azul is highly polluted by household and industrial wastes, is low-lying and flood- prone, and has the worst social indicators (income, literacy, health) in Salvador. Nearly half the people of working age earn no income, and almost 60 per cent of the households live on about US$45 a month. Working with the Metropolitan Planning Authority (CONDER) and other state and local authorities, the Italian Development Cooperation has supported slum upgrading here since the early 1990s. Part of this support has entailed a partnership between an Italian NGO (AVSI), the government of the state of Bahia and the municipality of Salvador to implement the successful Novos Alagados pilot project, which has addressed infrastructure, land tenure, housing and social development issues for a population of 15,000. The government of Bahia, with Italian support of US$5 million in grant funding through the Cities Alliance, plans to extend the Novos Algados programme on a much larger scale to Ribeira Azul. The programme features extensive community participation and consultation from inception, land titles to be given predominantly to women to ensure that they are consulted in any property decisions, and an emphasis on cost-recovery in order to be able to sustain slum upgrading programmes citywide. Alliance support will help ensure sound use of the entire US$60 million programme budget, as well as support the development of a city-wide upgrading strategy with Salvador. Numerous institutions from all levels of government are involved in the effort, working with AVSI and the residents of Novos Algados, with support from regional and international development banks, universities, urban think tanks and local NGOs. El Salvador - Improving Execution Capacity for Urban Upgrading Programme in Metropolitan Area of San Salvador. The 14 municipalities that comprise the Metropolitan Area of San Salvador have combined forces to outline a visionary urban development strategy. The mayors involved see slum upgrading as their biggest challenge for their current term in office which end in 2004 and are coordinating efforts to implement urban upgrading in the entire metropolitan area. Their strategy involves building the institutional capacity of a central technical agency, the San Salvador Metropolitan Planning Office (OPAMSS), to carry out city-wide upgrading With UNCHS, the World Bank and Cities Citkj Acii Alliance support, OPAMSS will incorporate best practices, including community participation and cost recovery methods in upgrading The upgrading programme aims to reach 140,000 people and will initially create a proper storm drainage system to prevent flooding in slums, grant land title to residents and connect every house to water, sewerage, drainage, electricity and waste collection services. OPAMSS will also aim to provide better roads and public transportation links in and across slums; and create employment opportunities through vocational programmes, hiring slum dwellers as construction workers, and through micro- finance programmes aimed at self-employment. The planning and execution of this ambitious scheme will occur in different communities across greater San Salvador, with all decisions and actions coordinated through the Mayors' Council. This programme is geared towards long- term impact, with a 30-year time horizon and a clear strategy for investment. Mexico - Scaling up Upgrading and Managing Informal Urban Growth in the Metropolitan Mexico City Area. Mexico City is the third largest city in the world, home to 24 per cent of the Mexican population and responsible for 23 per cent of the country s GDP. Nearly half of the population is poor, living in informal settlements with insecure tenure, inadequate services and poorly constructed housing, Informal land and housing markets have emerged, particularly on the urban periphery, through the inability of the public authorities to keep pace with demands for regularisation and service provision. The urban poor have demonstrated an ability to improvise in the face of government constraints, resulting in informal processes predominating in the release of land. The Cities Alliance is supporting work being undertaken by the state of Mexico with the World Bank and Metropolis to develop a model for scaling up slum upgrading and managing the growth of new informal settlements. A key policy issue is how best to manage the relationship between informal delivery systems and statutory authority. This initiative should provide the basic components for a state-wide programme for urban upgrading to include an institutional and financial model for infrastructure and service planning and delivery, and a set of tools for facilitating access to urban lands and shelter finance, particularly for low-income populations. It is also expected that these activities will provide a key learning experience for Cities Alliance partners, as policy issues that have proven difficult in many other cities and countries are raised. a *43 I 4 - ,-- -- I. -Si iqg I t 1' It-, >14 1- a 2* 11 K tVm ii 4- ;' P - it- - 4 - #4 -  #---r4, a -- - 4$ I .11 "5 4 Zr -ES. a 4, j1  fl-k - .5- etl' .Ais$fl' 7 -'I iL ii eJZ5a V -.  yfl) *j .*'4 It . '7-. V - 'SI-- Middle East North Africa (ji'ti(:s Aii8] 14ice Urban Population Growth: 1950-2030 600,0C A : xooo0o _- __ -_ _ _ _ ____ __ _ i 4; 0 0W ; _- - - __ _ _ _ _ __ _ _ _ _ .- _____ m__________ ______ ___ -- In 1970, only 42 per cent of this region s 220t__l_population lived in cities, by 2030, an estimated 72 per cent of the region's population o l;L Lwill be urban. 1950 1970 1990 2010 2030 Urbanisation in this region has tended to Total Population Urban Population accompany and spur economic growth. While urban residents currently number slightly over Source: Adapted from Popuiation Division of the Department of Economic half of the population, urban areas are the and SocialAffairs of the United Nations Secretariat (1998).Worid Urbanization location of a disproportionate share of economic Prospects:The 1999 Revision. activity i.e., manufacturing and services. Cities and towns in the region are not only the location of a significant share of economic activity, but also reflect a rich cultural heritage and include numerous archaeological sites. While overall poverty as measured by income levels tends to be low, urban poverty in the Middle East and North Africa, as elsewhere in the world, is multi-dimensional. It is expressed not only in terms of income, but also in terms of access to basic infrastructure and shelter, spatial segregation and social exclusion. These circumstances are often the result of poorly managed urbanisation and inappropriate policy and regulation. Compounding these problems are the highly centralised systems of urban governance, with limited autonomy and accountability at the local level for core basic services, and urban management. In recent years, the overall regional outlook seems to have grown more favourable to some form of devolution of responsibility for the delivery of services to the municipal level and reform of the local finance system. The agenda of decentralisation reform is in its initial stages in most countries, and much needs to be done to strengthen the local revenue base and clarify expenditure responsibilities. Morocco: Upgrading project for the Koraat Shaa neighbourhood in Tetouan Egypt: Upgrading informal areas in Ismailia Governate The Alliance is supporting two programmes in the region. Key elements of the Alliance s strategy are prevention of slums and scaling up slum upgrading, promoting participatory CDS in support of growing decentralisation trends, and supporting lateral learning linkages, including engaging the private sector in these processes. The Alliance is also working in partnership with the Arab Urban Development Institute in building awareness around these issues. Cities Aliaare. (._,R -A.- a l-ce inl A(- cm Morocco - Upgrading Project for the Koraat Shaa Neighbourhood inTetouan. Morocco is currently implementing a host of reforms addressing various issues related to local development and management, including decentralisation, land management, housing development and urban upgrading, In many medium-sized Moroccan cities, access to water, electricity and solid waste management is limited. There is no sewage system, no road facilities, no street lighting; and vast areas are subject to an informal land tenure system. In Thtouan, more than 40 per cent of the population lives in such informal settlements. Cities Alliance support toTetouan was designed to develop an innovative methodological framework for participatory upgrading, management and prevention of informal settlements. The initiative was developed as a joint effort by the municipalities of Al Azhar, Barcelona and Rio de Janeiro, with support from the United Towns Organisation and MEDCITIES. The integrated approach adopted (social, economic, urban planning and infrastructure) in the Koraat Sbaa neighbourhood will also build local capacities to develop participatory tools for investment prioritisation in infrastructure, basic social services and poverty reduction. The approach aims to strengthen the capacities of local governments and their partners in developing city-wide strategies and frameworks for neighbourhood upgrading, including security of land tenure. CitiPl Ali. C/" Ani.l.an.( '1.' , Ac-t-io.).i Egypt - Upgrading Informal Areas in Ismailia Governorate. UNCHS is supporting the Governor of Ismailia's efforts to upgrade the informal urban areas in the governorate's five main cities, starting with two areas, El Hallous and El Bahtini. El Hallous, an 18-hectare development with a population of 4,000 inhabitants, comprises some 600 dwelling units. Most of these are built in mud-brick with some two- to four-story reinforced concrete skeleton structures. Infrastructure networks are practically non-existent. El Bahtini, a 10-hectare settlement located north of the lake, is only 300 metres away from the centre of Ismailia City. It houses 5,000 inhabitants at a density of 500 persons per hectare, mostly residing in one- story mud-brick load-bearing structures. Only about 50 per cent of El Bahtini s residents have access to potable water and sewage services. Sewage from unconnected units is dumped in the lake, polluting the water that is the livelihood for this fishing community. UNCHS is providing technical inputs to local authorities to strengthen their capacity to undertake the management of both the physical and financial aspects of upgrading. The Alliance is supporting these inputs, and all investments for the upgrading effort are being provided from local and national sources. Citir Aiance Setting Targets... The CitiesWithout Slums action plan sets a target of improving the lives of 100 million slum dwellers by the year 2020 and an interim target of improving 5-10 million lives by 2005. The action plan also sets a target of mobilizing US$295 million in grant assistance, with a target of US$115 million by 2005. These grants will help develop citywide and nationwide upgrading and city development strategies and help mobilize the private and public investment funds for implementation. ...and Achieving Results The Cities Alliance, committed to achieving the results called for in the action plan, set an initial fundraising target of US$40 million during FYOO-FY03. We are half way to the target at the end of FY01. The Alliance must continue to scale up these efforts by pooling core resources in the Cities Alliance core Trust Fund, making use of strategic non-core resources earmarked for specific purposes, and improving linkages with private sector investments. With the strong endorsement of the United Nations Secretary-General, the 150 Heads of State and Government who participated in the Millennium Summit pledged to achieve the goal of the Cities Without Slums action plan. We must now build on this political commitment to mobilize the resources required. Progress in Meeting Cities Without Slums Grant Assistance Targets $150- $100. $50 $0- I l I 2000 2001 2002 2003 2004 2005 MO CWS action plan 6-Yea-Target Cities Alliance Initial 4-YearTarget CitiesAlliance Commitments tO Date US$1 15 nilliorn in granit assistance uiS$40 mllijon US$21.6 mnllhon * Includes Italy's US$5.0 miliion non-core contribution to the Salvador, Bahia, Brazil slum upgrading initiative. Summary of Cities Without Slums Action Plan 2000 2001 - 2005 2006 - 2020 Actions Mobilize global political and 20 citywide and/or nation- 50 nation-wide programmes financial commitments to wide programmes under- launched with slum improve- slum upgrading and gear up way in five regions ments as a central element of the capacity to support changing the lives of five urban development strategies large-scale actions million urban poor in most countries: 100 million slum residents with basic services; and slum formation stopped Support in Grants ' $4 million $111 million $180 million Urban Budget $3.5 million $35 million $100 million Increment 2 Upgrading $200 million $2,300 million $47,500 million Investments I Accomplish Mobilise Capacity 5 Million Lives Changed 100 Million Lives Changed I Grants for country capacity-building and programme preparation. 2 Proposed increase in World Bank's urban budget to strengthen upgrading capacity and ensure phased implementation of complementary components of Bank's new urban strategy. 3 Total cost of upgrading, funded by governments, private sources, and upgraded community; supported by development bank lending and bilateral cofinancing. World Bank share estimated to be about 25 percent of total. Cies AI,b' SOURCES OF FUNDS FYOO-FY01 (U.S. do1lars of 30 J.ne 2001) Sunimary Pledges Paid-In Core Funding 11,150,000 6,388,940 Non-Core Funding 6,725,000 1,652,846 Secretariat Funding 3,760,000 2,481,500 Total Funding 21,635,000 10,523,286 Core Fundin-g Pledges Duration Paid In' Canada 500,000 2000-2001 502, 717 France 250,000 2000 243,184 Germany 1,000,000 2000-2003 373,233 Italy 700,000 2000-2001 316,644 Japan ** 1,500,000 2000-20Q1 1,000,000 The Netherlands 2,250,000 2000-2001 2,250,000 Norway 250,000 2000 249,512 Sweden 500,000 2000-2001 252,016 United Kingdom 3,000,000 2000-2002 1,067,041 United States 500,000 2000-2001 134,593 World Bank 700,000 2002 0 Total Core 11,150,000 6,388,940 Non Core Funding... Italy 5,475,000 2001-2003 952,846 Japan 500,000 2000-2001 0 United Kingdom**** 2001-2002 World Bank 750,000 2001-2002 700,000 Total Non-Core 6,725,000 1,652,846 Secretariat Funding ' . ' Cash In-Kind Total World Bank 2,950,000 0 2,950,000 Habitat 310,000 500,000 810,000 Totai 3,260,000 500,000 3,760,000 * Amounts may vary from amount pledged due to exchange rate fluctuation. ** Japan's FY00 included $750,000 earmarked for Asian CDS activities, but this contribution is reflected here as part of Core Funding since the funds were programmed as part of the regular Core Work Programme development. ***'~ Non-Core funding is earmarked for specific region or type of activity. Italian funds earmarked $5,000,000 for Salvador, Bahia, Brazil slum upgrading programme (including $2,500,000 for technical assistance) and $475,000 for Latin America and Caribbean activities; Japan for Asian CDS networking activities; and World Bank $700,000 (FYOI) for United Nations partnership activities and $50,000 (FY02) for independent evaluation. ****~"' In-kind contribution of staff secondment for South Asia region for FYO1-FY02. **** Includes amount paid-in for FYOO-FYOI and amount pledged for FY02. Citief .. USES OF FUNDS FYOO-FY01 (U.S. dollars as of 30 June 2001) Surmnary (FY00-FY0l) Approved Allocations Actual Disbursements Grants from Core Funds 8,785,000 2,157,000 Grants from Non-Core Funds 6,175,000 1,129,000 Budget from Secretariat Funds Operations 2,013,000 1,894,000 Administration 505,000 455,000 Total Uses of Funds 17,478,000 5,635,000 Grant Approvals byType orActivity Core Funds Non-Core Funds City Development Strategies 2,220,000 700,000 Scaling Up Upgrading 3,124,000 5,000,000 Both CDS and Upgrading 3,441,000 475,000 Total Approved Grants 8,785,000 6,175,000 Grant Approvals by Region Core Funds Non-Core Funds Sub-Saharan Africa 1,565,000 Asia 3,103,000 250,000 Eastern Europe and Central Asia 400,000 Latin America andThe Caribbean 1,698,000 5,475,000 Middle East and North Africa 425,000 Global/ Multi-Regional 1,594,000 450,000 Total Approved Grants 8,785,000 6,175,000 Secretariat Expenditures FY00 FY01 Operational: Secretariat Staff 286,000 585,000 Consultants, Other Labour Costs 219,000 104,000 Travel 121,000 117,000 Other Costs 390,000 72,000 Sub-Total 1,016,000 878,000 Administrative: Secretariat Staff 207,000 221,000 Overheads, Other Costs 20,000 7,000 Sub-Total 227,000 228,000 Total Secretariat Expenses 1,243,000 1,106,000 Citii Anqw-Pr APPROVED GRANTS (U.S. dollars as of 30 June 2001) Grant Amount Start Date Country Activity itle (USS) SUB-SAHARAN AFRICA REGION 143,000 (1) Kenya Nairobi CDS and Upgrading of Informal Settlements 152,000 Sep-00 Madagascar Slum Upgrading and Community Development in Four Major Cities: Antsirabe, Antsiranana, Mahajanga andToamasina 286,000 Jun-01 Madagascar CDS forAntananarivo - Infrastructure Development, Urban Services Improvement and City Poverty Strategy 75,000 Oct-00 Mauritania Slum Upgrading and Urban Poverty Alleviation 254,000 Nov-00 Nigeria Scaling Up UpgradingThrough a CDS Approach in Karu 100,000 Sep-00 Regional Regional Roundtable on Upgrading Low- Income Settlements in Africa 165,000 Apr-01 Rwanda Kigali Economic Development Strategy 350,000 Sep-00 South Africa Johannesburg City Level Comprehensive Development Framework 40,000 Jan-01 South Africa Preparation of Southern Africa Cities Alliance ASIA REGION 150,000 Apr-00 Asia Regional Asian CDSWorkshop 2000 75,000 Jan-01 Bangladesh Khulna: Options for Sustainable Upgrading 185,000 Mar-01 Cambodia Scaling up Community-Driven Development Process in Phnom Penh 500,000 Oct-00 China Metropolitan Level CDS in One Major City Region and One Provincial Capital 250,000 Jun-01 China Changsha City Region, Giuyang and Shengyan City Development Strategies: Urban Indicators Project 226,000 Jun-01 India Local Partnership for Poverty-Focused CDS in Hyderabad 67,000 May-01 India Preparation of Gujarat State Urban Slum Policy 30,000 Apr-00 Indonesia Proposal Preparation: Poverty-focused CDSs 600,000 Mar-01 Indonesia Institutionalizing Poverty-focused CDSs 53 ASIA REGION (continued...) 160,000 Sep-00 Nepal Katmandu CDS and Informal Settlement Study 30,000 Apr-00 Pakistan Proposal Preparation: Peshawar CDS and City Assistance Programme 150,000 Apr-01 Pakistan CDS and CitiesWithout Slums Initiative for Peshawar 30,000 Apr-00 Philippines Proposal Preparation: Expansion of the CDS Programme 600,000 May-01 Philippines Upscaling Poverty-Focused CDSs 300,000 Apr-01 Vietnam Enhancing Access of the Urban Poor and Vulnerable Groups to Basic Infrastructure and Housing EASTERN EUROPE and CENTRAL ASIA REGION 75,000 Jun-01 Bosnia- Preparation of Mostar's Local Economic Herzegovina Development - Capacity Building and Business Improvement Programme 75,000 Sep-00 Bulgaria Sophia CDS - Phase I 249,800 Jun-01 Bulgaria Sophia CDS - Phase II LATIN AMERICA and CARIBBEAN REGION 180,000 Jan-01 Brazil Recife Metropolitan Region Development Strategy 560,000 Apr-01 Brazil Building an Enabling Strategy for Moving to Scale in Brazil 5,000,000 Jun-01 Brazil Salvador, Bahia,Technical and Social Assistance Project 96,000 Aug-00 Central America Urban Review 84,000 Sep-00 Central America Regional CoordinationTowards a Sustained Programme for Upgrading 320,000 Mar-01 Ei Salvador Improving Execution Capacity for Urban Upgrading Programme in Metropolitan Area of San Salvador 475,000 Apr-01 LAC Region Moving to Scale in Latin America and the Caribbean 213,500 Jun-01 Latin America Build LAC Capacities in Urban Knowledge Management 245,000 Jun-01 Mexico Scaling up Upgrading and Managing Informal Urban Growth in the Metropolitan Mexico City Area T~~~~~~ Grant Amount Start Date Countiry Activity litle (USS) MIDDLE EAST and NORTH AFRICA REGION 130,000 Sep-00 Egypt Upgrading Informal Areas in Ismailia Governorate 295,000 Jul-01 Morocco Upgrading Project for the Koraat Sbaa Neighborhood in Tetouan GLOBAL and MULTI-REGIONAL ACTIVITIES 50,000 Mar-00 Global Urban Indicators Linkages 150,000 Mar-00 Global Preparatory Assistance Fund 49,000 Mar-00 Global Cities Alliance Website 50,000 Mar-00 Global Public Policy Forum - June 2000 60,000 Mar-00 Global Urban Upgrading: A Resource Framework 75,000 Jul-01 Global CDS Action Plan 70,000 Jun-00 Global CG/PPF meeting - Dec. 2000 30,000 May-01 Global Policy Advisory Board Meetings 20,000 Jun-00 Global Building Political Commitment 5,000 Sep-00 Global Millennium Summit Product/Activity 20,000 Jun-00 Global Short Note Series 5,000 Jun-00 Global Technical Peer Reviews 500,000 (2) Global Pro-Poor Slum Upgrading Frameworks in India, the Philippines and South Africa 210,000 Jun-01 Global Housing Finance for the Poor -- Innovations and Good Practices from the Field 450,000 May-01 Global Consolidation of the Experience from Seven City Development Strategies of the UMP 300,000 Mar-01 Regional Regional Action Plans 14,960,300 TOTAL GRANT APPROVALS (1) - Activity is on hold pending compliance with conditions of approval. (2) - Activity has not commenced; implementation arrangements are being finalised. Acronyms AfD Agence francaise de developpement MEDCITIES Mediterranean Cities [French Development Agency] MELISSA Managing the Environment Locally in AVSI AssociazioneVolontari per il Servizio Sub-Saharan Africa Internazionale [Association of NGO non-governmental organisation Volunteers in International Service] OPAMSS Oficina de Planificaci6n delArea CDS city development strategies Metropolitana de San Salvador [San CONDER Companhia de Desenvolvimento Salvador Metropolitan Planning Urbano do Estado da Bahia [Bahia Office] Metropolitan Planning Authority] SDI Slum Dwellers International CZT Changsa/Zhuzhou/Xiangtan SEWA Self-Employed Women s Association DFID Department for International UMP Urban Management Programme Development [UK] UN United Nations FMCU Federation Mondiale des Cites Unies UNCHS United Nations Centre for Human [World Federation of United Cities, Settlements (Habitat) formerly United Towns Organisation. UTO] UNEP United Nations Environment GTZ Gesellschaft furTechnische Programme Zusammenarbeit IGerman Agency for UNDP United Nations Development Technical Co-operation] Programme IDB Inter-American Development Bank UNICEF United Nations Children's Fund ILO International Labour Organisation USAID U.S. Agency for International IULA International Union of Local Development Authorities KfW Kreditanstalt furWiederaufbau [German Development Bank] Photo Credits Cover: David Frazier/Stone Page 13: City of Barcelona Inside Covers: Christianna Johnnides Page 26: Christianna Johnnides Page 8: Mohini Malhotra Page 31: Sarine Rajagukguk Page 10: Fabrizio Bensch/Reuters Page 36:Ahmed Eiweida Page 11: Mandela staff Page 39:AVSI/CDM Archives Page 12: Sheela Patel Page 44:Ahmed Eiweida Contributors Margaret Bergen: Editor Randy Cook: Designer 56 .... 'r 71, I citic.sAliana, -I.. -.. 5.~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~Y *0X Af"-r4 -. , ;2fd :4 .A'z-: w g C i .--5R%>.t 2 '- $ 4 - n N - 0 sig - C 8 .