99715
Livable Cities for the 21st Century: The Post Habitat II Agenda for the
World Bank




by
James D. Wolfensohn
President
The World Bank Group
April 6, 1997

Habitat II, the Second United Nations Conference on Human Settlements,
also known as the “City Summit,� concluded its work on June 14, 1996, in
Istanbul, Turkey. Habitat II indelibly marked the increasingly urban
nature of the world and the urgency, extent, and increasing size of
problems facing people in cities, especially the poor.

The conference developed consensus around the need to achieve sustainable
development in urban areas, with special emphasis on the provision of
basic services and shelter for the poor. To the maximum feasible extent,
the private sector and individual initiatives should be relied upon.
Decentralization and the consequently heightened role of local government
in determining the future of cities is recognized as a significant global
phenomenon. This framework is sound. The policy and programs of the World
Bank are consistent with this approach.

A key achievement of Habitat II was to underscore the role of
partnerships among the many actors that have a stake in making cities
livable: nongovernmental organizations (NGOs), local governments,
parliamentarians, community-based organizations (CBOs), the private
sector, researchers, and foundations, to name a few. I have highlighted
partnerships as one of the key thrusts of all our work at the World Bank,
and we will be a strong partner in the implementation of the Habitat
Agenda.

The World Bank has a long history of involvement with the urban sector.
It has approved loans amounting to about $25 billion for urban
development, urban environment, water, and sanitation projects in the
quarter century since it established a specifically urban lending
program. Our assistance reaches thousands of cities and towns. The Bank’s
urban work has focused strongly on improving the living environment of
the urban poor. It has developed new client relationships, established
links with local governments, and worked directly with communities—
backwaters at the time—at the forefront today in the wake of
decentralization and democratization. There have been significant
successes; although they give no reason for complacency, they should give
rise to optimism. Many have argued that cities are “basket cases� without
potential for improvement. After nearly a quarter century of experience
of working with our partners worldwide, we know that tangible progress is
possible.

Looking to the future, the Bank identified three key priorities for
action to make cities livable today:
Bringing basic services to the poor. It is intolerable that so many
millions of people still live in urban slums without basic services like
clean water and sanitation, basic roadways, and drainage. The burden of
these service failures in terms of the impacts on human health and
productivity is heavy. Yet the costs of correcting the problem are
affordable. Some countries have already tackled the problem successfully.
Much more can and should be done now.

A healthier urban environment. The three main urban environmental
problems affecting human health—lead, dust and soot, and microbial
diseases—all lend themselves to solutions with modest costs. We need
focus and action now. Efforts to phase out lead in gasoline should be
accelerated. As noted above, clean water and basic sanitation must be
provided to all city dwellers. Many investments to reduce dust, soot, and
smoke from industry and power plants have high returns. They should be
made.

Finance for people in cities. The way cities are financed needs to be
revamped if we are to meet the challenge of making cities livable.
Intergovernmental finances need to become more transparent, predictable
and more closely related to the financial and managerial performance of
local governments. Cities need to manage the resources at hand more
effectively by pricing services better, building partnerships with the
private sector to manage and finance urban infrastructure, and
strengthening the nuts and bolts of city management. Finally, local
governments need to forge stronger links with those who ultimately pay
for the services provided—the people in cities. Without clearer links
between expenditures and community improvements, urban finance cannot be
made to work better.

To support this agenda for action, we made important commitments at
Istanbul to those partners prepared to respond to the urban challenge.
The Bank announced that it has the capacity to increase its support to
urban development. The challenge to the developing world is to frame
policies and develop programs and people-centered approaches to use our
support effectively. The Bank is committed to provide support consistent
with the quality and strength of country commitments to solving these
problems.

I am directing the Bank’s staff to focus on the commitments the Bank has
made and to bring the best available and timely knowledge to bear in
meeting country-specific needs. We intend to deliver the very best
services to our clients. Our goal is a major improvement in the lives of
poor people in cities. The needs are very great. The challenge is
daunting. But we have learned, working together with our partners in
developing countries, that with pragmatism and commitment, it is possible
to make a difference.