63628 2009 Annual Report: Building Cities and Citizenship [1] ANNUAL REPORT 2009 The Cities Alliance is a global coalition of cities and their development partners committed to scaling up successful approaches to poverty reduction. OUR MEMBERS Slum Dwellers: Slum Dwellers International (SDI) Local Authorities: United Cities and Local Governments (UCLG) \ Metropolis Governments: Australia \ Brazil \ Canada \ Chile \ Ethiopia \ France \ Germany \ Italy \ Japan \ The Netherlands \ Nigeria \ Norway \ Philippines \ South Africa \ Spain \ Sweden \ United Kingdom \ United States of America \ Multilateral Develpment Organisations: Asian Development Bank \ European Union \ UNEP \ UN-HABITAT The World Bank \ Associate Members: International Labour Organization (ILO) \ UNDP Cover Photo: The skyline of Mumbai as seen from atop a tower of Bandra-Worli Sea Link. © Arko Datta/Reuters/Corbis CONTENTS Foreword Introduction: Of Cities and Citizenship 2 Cities Alliance in Action 14 Land, Services and Citizenship for the Urban Poor 15 City Development Strategy: An Inclusive City Management Process that Promotes More Effective Urban Governance 23 City Financing: A Landscape of Devastation and of Policies in Need of Reform 35 Reports from the Regions: South Asia 39 Southern Africa 42 East Africa 45 Brazil 47 Cities Alliance Members’ Reports 50 Strenghthening the Learning Alliance 104 Cities Alliance Organisation 118 Financials 124 Abbreviations and Acronyms 136 The 10th Anniversary of the Cities Alliance provides a timely opportunity for the organisation and its members to learn from past failures and successes and to re-emphasise those principles, policies, and practices that are essential for developmental progress. It has become increasingly clear that national policy frameworks that accept the inevitability and even the desirability of urbanisation are more likely to create the conditions for economic growth on a national scale, and ultimately reduce both urban and rural poverty. 2009 ANNUAL REPORT Foreword Since its launch in Paris in May 2004, United Cit- ies and Local Governments has constituted the global platform for the promotion of the projects of local and regional authorities. Its members, cities, regions, and local government associa- tions from 136 countries, today constitute more than half the world’s population. UCLG PRESIDENT BERTRAND DELANOË In our increasingly urban world, the ef�ciency of cities, the quality of their management, and the vision and dynamism of their leaders are es- sential. Cities not only have the capacity to drive national economies: they can also be pioneers in social and political innovation, promoting the role and the position of women, �ghting for the inclusion of minorities, strengthening democ- racy, encouraging arts and culture, and—most importantly—supporting truly sustainable devel- opment. It is therefore more frequently at the local level that the world’s most signi�cant challenges will be identi�ed. As the World Bank noted in its 2009 World Development Report, no country has achieved a level of advanced development with- out competitive cities. Today, the challenge of climate change will re- quire unprecedented cooperation between na- tional and local governments. Local authorities can be effective partners, capable of envisaging and creating original and sustainable solutions. This is why global cities should be able to sit at the international negotiating table. UCLG values highly its partnership with Cities Alliance and its members. Ten years after the founding of the Alliance in Berlin, our partnership has become a true reference on urban issues and particularly when it comes to �nding solu- tions for our most vulnerable citizens. Together, we have fought to see the issue of slums includ- ed in the Millennium Development Goals. On the eve of the review of the Millennium Development Goals by the United Nations General Assembly, the cities, local and regional authorities of the world want to see local governance at the heart of the new goals. 1 2009 ANNUAL REPORT INTRODUCTION: OF CITIES AND CITIZENSHIP Heidemarie Wieczorek-Zeul, the German Minister for Economic Cooperation and Development, President Nelson Mandela, Patron of the Cities Without Slums action plan and World Bank President, Jim Wolfensohn at the launch of the action plan, Berlin, December 1999. Of Cities and Citizenship The Cities Alliance was launched in Berlin in December Cities in developing countries certainly face daunting 1999. Two concerns were uppermost in the minds of demographic, managerial, and resource challenges. those who saw the need for the new organisation: (i) the Between now and the middle of the 21st century, the failure of national governments to respond adequate- world’s total population is projected to grow by about ly to the challenges of urbanisation at an appropriate 2.4 billion, while the urban population is expected to scale, and (ii) the related failure of the international de- grow by 3.0 billion—meaning that rural populations velopment community to provide consistent and coor- will actually fall by 0.6 billion. Asia’s urban population dinated support to developing cities and countries. By alone is projected to grow by 1.8 billion, and Africa’s by early 2009, membership in the Cities Alliance had risen 0.8 billion. This implies that by 2050, Asia’s cities (and to 26. urban towns) are expected to accommodate twice as many people as they do now, and Africa’s cities and This short essay does not attempt to quantify or anal- towns three times as many. yse the impacts of the Cities Alliance and its members. Rather, this essay—a joint effort of the Cities Alliance Many of these cities are already unable to provide suf�- Secretariat and the International Institute for Environ- cient infrastructure and essential services for their exist- ment and Development (IIED),1 assisted by a meeting ing populations. It is perhaps not surprising, then, that of international experts held in Berlin in June 20092 — a common response to such projections has not been re-examines the key policy challenges facing develop- to plan for this growth but rather to try to slow it down. ing cities and countries over the next 10 years and con- Survey results indicate that anti-urban perceptions and siders how international developmental assistance can policies to curb urbanisation are on the increase. In respond to this changing agenda. 1996, 42 percent of all governments responding to a United Nations questionnaire indicated a concern that Getting Urbanisation Right: A Central Challenge for their countries were becoming too urban too quickly. the 21st Century This �gure rose to 51 percent in 2007. African govern- ments displayed the most disquiet: 63 percent were The world has reached a turning point in its history: it concerned in 1996 and 74 percent in 2007. Over this is more urban than rural. This fact has been regularly same period, there has been an even sharper increase announced every year since 1999, when Nelson Man- in the share of governments claiming to have introduced dela analysed the urban challenge in his address to the policies to reduce migration to urban agglomerations— founding meeting of the Cities Alliance. Nonetheless, from 45 percent to 65 percent for the world generally, there remains empirical and anecdotal evidence that and from 54 percent to 78 percent for Africa. the signi�cance of urbanisation has been inadequately grasped by many developing countries and develop- The rhetoric and policies of the international develop- ment agencies alike. ment community have often reinforced this tendency to plan against urbanisation. Fears of excessive rural-ur- 1 ban migration are evoked in descriptions of mushroom- This section was written by Gordon McGranahan of IIED and William Cobbett of the Cities Alliance ing and exploding cities in Africa, Asia, and Latin Amer- 2 Much inspiration came from the meeting convened by the Cities Alliance in ica. These cities are often presented as overcrowded Berlin in June 2009. In addition to the two authors, participants included Annette Baehring (GTZ), Somsook Boonyabancha (ACHR), Elisabeth Gateau (UCLG), In- sites of environmental distress, surrounded by expand- dermit Gill (World Bank), Mark Hildebrand (ex-Cities Alliance Manager), Stephen ing slums. In terms of aid policies, many development Karam (World Bank), Manfred Konukievitz (BMZ), Prof Akin Mabogunje (Nigeria), Franz Marre (BMZ), Eduardo Moreno (UN-HABITAT), Sheela Patel (SPARC), Clare agencies have long been concerned that urban areas Short (Member of Parliament, UK) and Keshav Varma (World Bank). already get a disproportionate share of investments. Bangladesh; crowded street with several rickshaws. © Ron Giling / Still Pictures 3 2009 ANNUAL REPORT Particularly when it comes to environmental and poverty While navigating these urban transitions can be dif�cult, issues, development agencies are inclined to focus on urbanisation nonetheless can present enormous op- rural areas, where most low-income people and sensi- portunities in a responsive policy environment. For ex- tive natural environments are located. ample, notwithstanding a somewhat ambiguous policy approach, until very recently, to the growth of China’s The debate over the relative importance, depth, or size cities, the urbanisation of some 150 million Chinese3 of either rural or urban poverty has become as stale as has played a very signi�cant role in that country’s re- it has counterproductive. The key message is that urban markable economic transformation and the extraordi- growth is essential for rural poverty reduction—indeed, nary growth of its exporting eastern cities, leading to only sustained urban growth has the capacity to lift both unprecedented reductions in the number of people liv- rural and urban populations out of poverty. ing in poverty. In the past few years, the government of India has been showing an increasingly vibrant re- sponse to an urbanisation process of immense scale, The key message is that urban growth is focusing on the need to encourage the reform of Indian cities and their management. At the same time, Indian essential for rural poverty reduction—in- of�cials have demonstrated a keen willingness to bet- deed, only sustained urban growth has ter understand some of the lessons from Latin America the capacity to lift both rural and urban and, particularly, from Brazil. The response in Sub- populations out of poverty. Saharan Africa has been mixed, with many countries continuing to exhibit a slow and negative response to urbanisation, but with some important national and city Of course, continued investment in rural areas, and in exceptions emerging in the past few years. agriculture, is an essential component of any national economic strategy and poverty alleviation. Such invest- ments need to focus on increasing agricultural produc- tivity, ensuring food security, boosting agricultural ex- ports, preventing deserti�cation, and preserving vital environmental assets, among other things. At the same time, it needs to be understood that boosting agricultur- al productivity typically results in rural labour migrating into towns and cities, further increasing urban demand for rural production as well as swelling the ranks of ur- ban slum dwellers. By and large, it is small and secondary cities that are being forced to manage this rapid increase of urbanis- ing poor. Small towns, which are normally not prominent in national development frameworks, are often sorely underresourced in personnel, skills, and budget. The importance of secondary cities has also been consis- tently neglected in development assistance; capitals and mega-cities have captured what little attention there has been on urban and local government issues. Nanjing, the central shopping mile at the old Central District at night. © sinopictures/Brigitte Hiss/Still Pictures 3 World Development Report 2009: Reshaping Economic Geography, World Bank Group, Washington D.C., 2009; Overview Edition, p17. 4 CITIES ALLIANCE As illustrated in �gure 1, the urban growth trajectories of Figure 1: Africa, and Asia are similar. Contrary to the crisis rheto- Past and projected urban growth rates in Africa and ric, urban growth rates are now falling in every region Asia and the contribution of population growth and and are projected to continue to do so – though these urbanisation, 1950–2050 rates will also continue to exceed rural rates for the fore- seeable future. Moreover, Africa’s urban growth is not being driven primarily by migration or the transforma- Africa tion of rural areas into urban settlements: most of it is 6 the result of high overall population growth rates in the region. Asia is urbanising faster, and it is the only region 5 Urban growth (%/year) where about half of urban growth could be the result of 4 migration. 3 Contrary to many assertions, the current pace of urbani- 2 sation in African and Asian countries is not historically 1 unprecedented. However, it would be unprecedented for them to achieve economic success without urbani- 0 1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 sation. 1955 1965 1975 1985 1995 2005 2015 2025 2035 2045 The World Development Report (2009) makes a com- pelling economic case for cities, arguing that three spa- Asia tial transformations are necessary for economic growth: 6 higher densities, shorter (economic) distances, and 5 fewer divisions. The move to cities embodies the �rst of Urban growth (%/year) 4 these transformations and enables the other two. 3 By concentrating people and economic activities, cities 2 provide a range of economic advantages, not only to their residents, but to those who trade with them. The 1 enterprises and facilities in cities achieve a scale un- 0 imaginable in rural areas, allowing bene�ts to spread 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 rapidly and costs to be greatly reduced. Both buyers and sellers access larger and more diverse markets in Source: UN Population Division, 2007 revision. cities. Both people and enterprises in cities learn from Note: The rate of urbanisation is the annual increase in the percentage of the each other and combine their ideas, creating innova- region’s population that is urban. A country or region’s urban population growth rate is approximately equal to the sum of its population growth rate and its tions and increasing productivity. In short, the shift to urbanisation rate. cities, successfully handled, doesn’t just result in a step shift in productivity; successful cities provide the cru- cibles for long-term social and technological progress. For cities to play this role in economic growth, they need appropriate infrastructure and spatially blind institutions and policies, extending basic services to everyone. Spatially focused policies are needed to provide the connective infrastructure, such as roads and telecom- 5 2009 ANNUAL REPORT munications, which plays a critical role linking cities and The Consequences of Informality, Illegality, and their markets to rural production, to their hinterlands, Invisibility and out towards the global economy—thereby reduc- The future of world poverty and inequality is being influ- ing (economic) distances and strengthening those cit- enced to a signi�cant degree by what is now happening ies’ ability to take advantage of the resulting market op- in cities. Yet, even with the clear evidence that well-run portunities. cities hold the potential to vastly reduce poverty, the economic bene�ts that urbanisation can provide are As markets exploit the economic potential of cities, the only rarely seized, particularly in low-income countries. resulting economic growth is inevitably uneven: it oc- Resisting urbanisation, rather than helping deprived ru- curs �rst in the cities, creating disparities between urban ral dwellers, more often ampli�es rural-urban disparities and rural areas. While this can bring social problems, and reinforces a broader hostility of social elites to the favouring rural investment simply to support lagging urban poor. It is this whole self-reinforcing process of regions is economically wasteful and historically unsuc- decline that needs to be turned around. cessful. From an economic perspective, rural invest- ments should be justi�ed in terms of their productive This resistance to urbanisation most commonly takes bene�ts, and not as a means of reducing rural-urban the form of of�cial apathy, and even hostility, to the imbalances. plight and the needs of the urban and urbanising poor. This is most obviously manifested in the lack of essential People migrate to cities not to live in or create slums, but services, leaving the city’s poorest residents to procure because they believe the move will improve their social land, shelter, water, sanitation, and energy on informal and economic opportunities in the medium term, if not and parallel markets, generally at a price premium. immediately. As a general rule, they are right. Over time, the consequences of this of�cial neglect may People migrate to cities not to live in or promote parallel systems of governance and the emer- create slums, but because they believe gence of gangsters and slumlords, often protected by the move will improve their social and useful political connections. In short, ignoring the needs of the poor gives rise to the very conditions that cause economic opportunities in the medium term, if not immediately. As a general rule, they are right. Yemen, Sana’a. Market in the old city. © Glen Christian/Still Pictures 6 CITIES ALLIANCE slums to emerge and grow and to often become dif�cult lin, and the programme to recover previously excluded and dangerous places, particularly for the residents of neighbourhoods in Chilean cities are attempts to over- the slums themselves. Presented in such stark terms, come decades of social exclusion. The economic in- this is a cold indictment of what passes for urban policy vestment and administrative tasks involved in formalis- in too many cities and countries. ing these settlements are immense. This is only a small part of the challenge, however. The central message for those governments that be- lieve they have the ability to inhibit urbanisation: such Past failures have contributed to high levels of crime and policies tend to have pernicious side effects and rarely violence, which have not been contained in the favelas reduce the growth of urban populations—and they do but have extended across entire cities and countries. real and costly damage to the economy and to social The power politics of informal settlements also extend relations. Conversely, national policy frameworks that well beyond the settlements themselves and cannot be accept the inevitability, and even the desirability, of ur- administered away by changing the formal land regis- banisation are more likely to create the conditions for tration systems and regulations or giving out land titles. economic growth on a national scale and, ultimately, Existing inequalities in Latin America today reflect the reduce both urban and rural poverty. past failure to get urbanisation right, and the problems will continue well into the future. In Latin America, which has largely completed its ur- ban transition, new democratic regimes are belatedly The same urban transition is now occurring in Sub-Sa- trying to incorporate their favelas into the social fabric haran Africa as well as South and Southeast Asia, but, of the cities. The unprecedented public investments of with few exceptions, there is little evidence that the right the current Brazilian administration, the innovation be- lessons are being drawn from the mistakes made else- ing shown in Colombian cities like Bogota and Medel- where. Upgrading in the Santo Domingo neighbourhood of Medellin, Colombia provides space for children to learn about the environment. © Andrea Merrick/Cities Alliance 7 2009 ANNUAL REPORT Rather than actively planning for rapid growth, govern- ments tend still to plan against it, often in the misguided belief that forward planning will encourage new growth. Such absence of planning merely leads to unplanned Box 1: Slum Dwellers as Developers and inef�cient growth, with the poorest residents being left to fend for themselves and the city itself beginning In the face of consistent inaction by city and a cycle of decline. national governments, the residents themselves are driving efforts to improve conditions, and a close A New Challenge: Climate Change look at most informal settlements or other deprived neighbourhoods reveals an immense variety of Most of the challenges described above have a long innovative practices. Yet, in too many cases, history. More recently, the challenge of climate change progress is made in the face of local government has come to the top of the international agenda, with apathy or outright opposition. urbanisation often being blamed for increasing green- house gas emissions. Indeed, uncontrolled urban de- Possibly the most glaring example of this velopment created climate change in somewhat the paradox is in the constant production of basic same way that uncontrolled urban development created shelter. Although accurate �gures are very the sanitary crisis in the 19th century. In both cases, the dif�cult to obtain, all the evidence suggests that perceived exigencies of markets were allowed to over- overwhelmingly, new shelter for slum dwellers ride environmental concerns, and the environmental is built by the urban poor themselves. And this opportunities that cities provide were largely ignored— production is undertaken despite concerted attempts by public authorities to hamper or actively that is, the reduced transport distances, the scope for prevent it. A sensible and pragmatic approach shifting to public transport, and the potential to reduce would not only recognise this important contribution built-over land area per capita. of the urban poor, but actually encourage and support the process. Indeed, government and It is now widely recognised that adequate water and private sector support for incremental housing sanitation services and energy are far easier and less processes should ideally be incorporated as a costly to provide in cities than in the countryside. Even- mainstream of any national housing policy, so that tually, it may well be recognised that climate change a shack eventually becomes a house, and a slum mitigation, too, is less costly when people live in cities. gradually transforms into a city’s suburb. A prejudice against cities is evident in the common In short, completely different outcomes and progress would be possible if local governments claim that urban areas emit 75 percent or more of started viewing the urban poor as citizens—with greenhouse gases. Recent studies have shown this to rights, responsibilities, and resources. Local exaggerate the urban contribution by at least 10 to 20 governments have the capacity to create the percent. Moreover, in the wealthy countries where most political, institutional, and legal basis for nurturing of the gases are emitted, urban living is already less local successes and tapping the opportunities that burdensome than more dispersed suburban and rural urban density and the energy of the urban poor can living. New York City, for example, is considerably less and should provide. What is needed is leadership greenhouse gas–intensive than the United States aver- bold enough to introduce a wholly new mind-set, age. Indeed, from a climate perspective, the worrying supporting and encouraging entrepreneurial settlement transition is not the movement to cities in the behaviour by all citizens, rather than defending the low- and middle-income countries, but the movement interests of part of the city or of the elites. out of cities in the high-income countries. Housing construction for the poor in Lima, Peru. Courtesy, World Bank Photo Library. 8 CITIES ALLIANCE New Models of Learning If urbanisation and cities are at the centre of the de- velopment challenges of the 21st century, it should be self-evident that they should also be at the centre of de- velopment assistance. Unfortunately, conventional de- velopment assistance is ill-suited to supporting urban innovation, and the principal alternatives being touted are not much better. To get urbanisation right in the 21st century, both national governments and international agencies will need to �nd better ways of recognising and nurturing urban opportunities and engaging with local governments. Conventional development assistance is built on agree- ments between national governments or between na- tional governments and international agencies. Most development assistance has been devoted to large A slum in Cebu City, Philippines. © Mark Edwards / Still Pictures projects or programmes with long delivery chains, a heavy reliance on expensive foreign expertise, and Anti-urban prejudice can actually prevent national and strong government involvement. Although civil organi- international pressures on cities to take action to miti- sations have also received development assistance gate climate change, as well as make it less likely that in recent decades, the principal interaction has been city-based pressures will emerge. This is an especially between markets and governments, as in the world at important de�ciency in high-income countries, where large. For cities, this narrow focus on governments and current emissions per capita are extremely high, and planning on the one hand and private enterprises and the momentum towards more transport and land-inten- markets on the other has been problematic, since one sive settlement forms needs to be reversed. In economi- of the key roles of cities is as the places where civil soci- cally growing middle-income settlements, it is yet an- ety, and ordinary people, can play a leading role. other compelling and urgent reason to get urbanisation right to avoid increasing emissions. To get urbanisation right in the 21st century, both national governments and Once again, forward planning is an essential compo- nent of a sustainable approach to urbanisation, particu- international agencies will need to find larly in rapidly urbanising low-income countries. While better ways of recognising and nurturing their urban settlements currently make negligible contri- urban opportunities and engaging with butions to climate change, it is important not to lock into local governments. place climate-unfriendly settlement patterns. This ap- plies to both mitigation, where ef�cient compact settle- ment patterns need to be encouraged, and adaptation, Conventional development projects tailored to speci�c where protective measures and settlement away from cities are dif�cult to support. Local governments rarely the more vulnerable locations need encouragement. have much influence over the allocation of develop- ment assistance. A large share of the funds tends to Again, the message should be clear: it is important to be expended high up on the delivery chain, often on plan where future urban growth should be located, not foreign assistance or by central ministries. This form of to ignore urban growth and hope it won’t happen. assistance is particularly ill-suited to supporting large 9 2009 ANNUAL REPORT numbers of small, affordable projects—the sort particu- national development assistance is commencing, with larly relevant to low-income urban dwellers. Overhead greater emphasis on sharing appropriate knowledge tends to be excessive, of�cial standards too exacting, and experience, and less on grants and implementing selected technologies too expensive, local participation projects. largely cosmetic, and actual outcomes disappointing. Within this framework, new questions will certainly need The Paris Declaration on Aid Effectiveness (2005) ad- to be asked of universities, research entities, and poli- vocated a shift from fragmented project-based support cy units in developed and developing countries alike. towards a greater reliance on national �nancial man- Many of the students attending developing-country in- agement through, for example, direct budget support. stitutions are leaving ill-prepared to assist and lead re- This shift was meant to focus attention on improving the sponses to the development challenges that their coun- national budgetary process and national governance, tries will face in the next decades, particularly in such rather than on parallel structures of development assis- critical �elds as urban planning. The major bene�t of a tance. more active relationship between institutions of higher learning and local and national governments would be An obvious question to pose of any new model of ur- the building of long-term capacity so essential to the ban development assistance is whether it strengthens future of any country. downward accountability and genuine local leadership. While the principles of direct budgetary support are still Looking Ahead widely favoured among donors, there is concern that The 10th anniversary of the Cities Alliance provides a the incentive and capacity of many national govern- timely opportunity for the organisation and its members ments to be accountable to their citizens is lacking and to learn from past failures and successes and to re-em- unlikely to be strengthened by having an appreciable phasise those principles, policies, and practices that part of their budget funded externally. are essential for developmental progress. While none of these should cause any real surprise, what is too often Urban development assistance has the potential to missing is their consistent application over time, beyond build accountability and improve relations between the next election or budget cycle in the city, govern- local governments and their citizens. This will require ment, or donor country. a change of strategy, however. Rather than simply al- lowing cities to become the site of new development Yet the most important policy decisions for success- projects, urban development assistance will need to ful and sustainable development can only be taken work explicitly to create more successful cities, not just by the national governments of developing countries economically, but socially and environmentally as well. themselves, which is where the primary responsibility Such assistance will also be more effective if it recog- belongs. These policies can certainly be reinforced by nises the importance of simultaneously engaging both organisations such as the Cities Alliance. Following are national and local governments. some of the most important policies: The past few years have witnessed the emergence of • Strengthen local governments and local accountability. new forms of development assistance, less reliant on the traditional, vertical modes of engagement. Emerg- The success of national social and economic pro- ing countries such as China, Brazil, Chile, Colombia, In- grammes and policies is greatly enhanced through the dia, and South Africa have demonstrated an eagerness active involvement of, and partnership with, local gov- to forge new methods of technical assistance, based on ernment. However, in too many countries, the local is common experiences with donor agencies as well as viewed as an inferior level of government rather than as common development challenges. There is little doubt an essential component of a system of governance and that a signi�cant realignment and adjustment in inter- accountability. 10 CITIES ALLIANCE Over the past two decades, a process of decentralisa- • Actively promote the role of women. tion has taken root in most parts of the world, leading to a gradual—but asymmetrical—recognition of the role As a key vector for successful develop- of local governments. In the best cases, this process ment, support for the role of women needs has been augmented by an increase in local govern- to move well beyond political correctness; ment powers—the ability to bene�t from stable �nancial it needs to be consistently promoted as transfers from the central government and also to raise their own sources of revenue. However, in too many essential to good social and development cases, local government is treated merely as an admin- policy. istrative arm of higher tiers of government, required to implement policies and decisions made at some distant Although women constitute half the world’s population, capital city or administrative centre. and their indispensable contribution to social, econom- ic, and political development has long been understood Bringing local government more fully onto the interna- and recognised, their role continues to be systematical- tional development agenda is a vital step to improve lo- ly marginalised. In urban development, women invari- cal accountability and build the skills and human capital ably provide leadership in the management of savings- necessary to respond to urgent developmental issues, driven delivery mechanisms, for example, but they are such as urbanisation, the impacts of climate change, routinely excluded from the management of economic and the policies needed to support local economic assets and from local and national political leadership growth. Parallel policy and developmental support positions. Yet simple procedures—such as record- should also be provided to national associations of lo- ing property rights equally between men and women cal governments, improving their capacity to facilitate or allocating them to women alone—have repeatedly learning between cities, as well as representing the in- demonstrated signi�cant, long-term bene�ts. As a key terests of local government on a national stage. Vibrant, vector for successful development, support for the role well-run cities of all sizes are an essential ingredient for of women needs to move well beyond political correct- national development, and the key to well-run cities is ness; it needs to be consistently promoted as essential local accountability. to good social and development policy. Women at an adult literacy class funded by Paraspara Trust. © John Isaac/ World Bank 11 2009 ANNUAL REPORT • Promote learning between cities and countries, ing the intended bene�ciaries more control over the pro- and between communities. cess. The networks can be local, national, or even inter- national. Ideally, the networks should be dominated by organisations that can legitimately claim to represent the The Cities Alliance has identi�ed a growing demand intended bene�ciaries, and they should be capable of from developing countries for access to the lessons handling �nance and reporting on its use. Such criteria from cities and countries that have already had to tackle are ambitious, if somewhat ambiguous, and may seem similar problems, such as dealing with slum backlogs unrealistic when applied to large, variegated groups of or rethinking models of city governance. Latin American intended bene�ciaries such as the urban poor. countries, such as Brazil, Chile, and Colombia, or Asian countries, such as the Republic of Korea, Indonesia, However, some of the most successful of such net- China, and the Philippines, have been identi�ed as hav- works have linked up organisations of the urban poor. ing a range of positive and negative experience on is- In Thailand, the government’s Community Organization sues of urbanisation, slum upgrading, city governance, Development Institute (CODI) has based its acclaimed social exclusion, and social inclusion. The relevance urban upgrading programme on this sort of networked and applicability of these experiences are being recog- approach. Slum/Shack Dwellers International (SDI), a nised in India, Egypt, Uganda, Syria, Ghana, and other network of organisations of the urban poor and a recent countries, and by reforming cities such as Lagos and member of the Cities Alliance, is now active in more than Lilongwe. The Cities Alliance can expand its role in sup- 20 countries. It has not only been very successful in porting its members by capturing, analysing, and dis- achieving improvements on the ground, it has changed seminating these experiences, as well as in facilitating the ways many local governments engage with their direct horizontal exchanges. more deprived citizens. It recently set up a fund that channels international �nancial support directly to or- For communities, recent initiatives have provided sup- ganisations of the urban poor. port directly to networks of organisations working close to the ground, circumventing the delivery chain and giv- An upgrading project underway in Bangkok, Thailand. © William Cobbett/Cities Alliance 12 CITIES ALLIANCE • Provide multiyear, programmatic support. An alternative approach is to build on what is work- ing locally. From this perspective, the challenge is not While the limitations of supply-driven, sectoral projects to design and scale up best practices, but to identify have long been recognised, they still occupy a signi�- good practices and help people to improve upon them. cant place on the international development agenda. This cannot be done by experts and government of�- Through its members, the Cities Alliance is well posi- cials alone. It is local residents and entrepreneurs who tioned to provide multiyear programmatic support to a know best what is working and what is not, and signals limited number of countries, which should be largely se- of success are more likely to be more reliable if they lected on the basis of their own imperatives of reform. come from markets and the actions and opinions of the Such programmes should be driven by local partners bene�ciaries and their organisations than from project and provide both the opportunity and the framework for evaluations co-ordinated national and international assistance. . This also suggests that the time is right to move beyond • Build on what already works. the concept of community consultation, which is often In conventional development assistance, there are reduced to a formalistic process disconnected from powerful pressures that claim to have found solutions real decision making, and insist on local governments to development problems and then promote them ev- recognising the urban citizenship of all residents. erywhere (claiming, of course, to adapt them to local circumstances). This applies not only to technologies, For its part, the Cities Alliance needs to keep constant- but also to policies and practices. Local speci�cities ly reviewing its policies and practices to ensure that it and complexities do not get the attention they deserve. maximises its impact. As a small organisation with a Decisions that should be made locally, within the cut modest budget, the organisation realises that it needs and thrust of local politics, end up being discussed and to become even more selective and strategic in its work. often made hundreds or even thousands of kilometres However, the fact that its members maintain an ongoing away. This tends to drive realistic solutions into the in- and extremely vibrant debate about the direction of the formal sector, where they are dif�cult to support through organisation is a sign of good health after the �rst 10 conventional assistance. years. Bangkok: canal upgrading as part of Baan Mangkong Programme. © William Cobbett/Cities Alliance 13 2009 ANNUAL REPORT CITIES ALLIANCE IN ACTION Land, Services, and Citizenship for the Urban Poor While some developing countries have shown political • Government investments in infrastructure without commitment to dealing with the issues of urban growth, meaningful community involvement seldom are sus- the majority of countries are not actively planning for this tainable and may even become part of the problem. growth, nor are they effectively incorporating the exist- Equally, community-driven projects without active gov- ing urban poor into their cities. Indeed, far too many de- ernment involvement rarely have an impact at scale or veloping countries continue to adopt a hostile approach lead to a programmatic approach to upgrading. to the urban poor, forcing them to obtain land and es- sential services informally, expensively, and inef�ciently. • Isolated projects disconnected to a broader city development strategy too frequently result in the poor Over the past three or more decades, the international being displaced, often through economic displace- development community has supported a wide range of ment. slum-upgrading projects with both notable successes and failures. Overall, however, technical assistance is • Planning systems focused on structure and an in- still dominated by a sectoral, project-based approach flexible regulatory environment lead to plans that bear that fails to deal with the underlying policy failures that little resemblance to actual settlement patterns and are the main causes of slum growth. Through its mem- practices on the ground. bership and accumulated years of global experience, the Cities Alliance is well positioned to identify both suc- • Isolated and hierarchical urban management sys- cessful and less-effective approaches to slum upgrad- tems are slow in releasing land and delivering services, ing. Consistent support over many years to a diverse and they are therefore incapable of effectively respond- range of cities and countries in Latin America, Asia, ing to the rate and scale of urban growth. Africa, and the Middle East has highlighted useful ex- periences. A number of developing countries—Angola, Ghana, Liberia, Malawi, Sierra Leone, Tanzania, Uganda, Viet- Every country or city has its own local context, but cer- nam, and Yemen, for example—have begun to explore tain broad lessons are universally applicable: policy changes that anticipate an urban future. It is be- coming increasingly clear that to provide the kind of • Attempts to stop, limit, or manipulate urbanisation support these countries are demanding, organisations have always ultimately failed, even when backed by vio- such as the Cities Alliance need to provide longer-term, lence and repression. programmatic support, operating at both the local and the national levels. • Slum clearance, mass evictions, or relocating the poor to the urban periphery destroys livelihoods, embit- As stated in its Medium-Term Strategy (2008-2010), ters residents, and merely displaces the problem. the Cities Alliance must use objective criteria to identify countries where maximum impacts are possible, given • Insecurity of tenure inhibits household investment the �nite �nancial and other resources available. These in private housing, creating the social conditions for ex- criteria should include the following: ploitation by slumlords. • Sustained political commitment at national and • Lack of recognition of the rights of the urban poor subnational levels for slum-upgrading activities. In the leads to systematic underinvestment in urban services, case of Brazil, for example, President Luiz Inácio Lula resulting in a downward slide in environmental health da Silva (himself a former slum dweller) has led and and the spread of disease. championed the rights of the urban poor. Slum area in the city centre in Kampala, Uganda. © Achim Pohl/Das Fotoarchiv/Still Pictures 15 2009 ANNUAL REPORT • Placing constructive engagement between service providers and citizens at the centre of project design and implementation. • Enhancing tenure rights through mapping and de- veloping clear databases on slum communities. Too many mayors do not know their whole city. • Building human capital and institutional systems at both the local government and community levels. • Achieving service expansion and sustainabil- ity through public community partnerships based on shared responsibilities and the mobilisation of local re- sources. • Reform of the regulatory environment, emphasising decentralised community land protection and develop- Environmental degradation in one of Mumbai’s slums. Photo courtesy: UNEP ment facilitation. Programming Citywide to Link Slum Upgrading to The Challenge Broader City Development Strategies Both national and local governments need to introduce Central to successful slum upgrading programmes— strategies that deal with the current—and future—re- and to Cities Alliance support—is recognition of the alities of urbanisation. The experience of Latin America urban poor as part of the solution and facilitating their points to the importance of anticipating and proactively participation in all aspects of urban planning and set- planning for this enormous demographic and social tlement, including land use control. In an increasing transformation, rather than ignoring and resisting it and number of developing countries, the urban poor are then spending three decades and huge public resourc- demanding greater involvement in decisions that affect es trying to mitigate the consequences of dysfunctional them. Their organisations are demanding signi�cantly cities and societies. The fundamental objective should more than merely participating in capacity-building be to lay the groundwork that will facilitate the involve- workshops; they want a far more active role in local ment of residents themselves in constant upgrading planning processes. over time, with the support of the public authority. The most advanced of these organisations are mobil- While policies aimed at the mass delivery of public ised into international networks, engaging with local housing always appear impressive, there are extremely and national governments and, increasingly, interna- few examples of success. Such programmes seldom tional donors. They are proactively involved in �nding respond to the required scale of the challenge and often solutions to the challenges facing the urban poor. Ex- create a new set of problems for the next administra- tending real and meaningful citizenship to the urban— tion to resolve. Over time, the housing stock may �lter and urbanising—poor is, in many ways, the single most through to the middle classes, with the urban poor be- important policy decision of local and national govern- ing squeezed back into shacks on the periphery. Cre- ments. The most tangible expression of this decision ative housing �nance models rarely enable the poor to often is the recognition of the permanence of the urban access housing at any meaningful scale. poor through the rapid and decisive recognition of their urban land rights. 16 CITIES ALLIANCE Even in 2009 few housing policies have resulted in the most effective and ef�cient housing stock. Most devel- oping countries are far too poor to ensure the provision of shelter for the entire population within a reasonable time frame, and there is little or no prospect of the for- mal private sector �lling this gap. Therefore, incremental Box 2: Project Design and Approach production of housing should constitute the centrepiece of national housing policy in most developing coun- On the basis of the international experience and tries—an approach that makes suf�cient quantities of lessons learned, the Land, Services, and Citizenship well-located land available for poor people to settle and for the Urban Poor programme has been designed progressively build their homes, and where services can around �ve broad conceptual pillars: be provided incrementally. Incremental development • Strengthening meaningful urban citizenship also enables effective public community partnerships, rights of the poor by formally acknowledging the where clear rights and responsibilities are de�ned. permanence of slum dwellers and their settlements, and building community organisations that facilitate The Land, Services, and Citizenship (LSC) for the Urban the role of slum dwellers in citywide slum upgrading. Poor programme, which was unveiled by the Cities Al- liance in 2009,4 aims to build upon these lessons and • Creating a platform for improved urban work with local and national governments in a number governance through the establishment of citywide of least-developed countries to halt the downward ur- forums to facilitate partnerships between the local ban spiral—promoting incremental development and government and the community, recognising an inclusive urban citizenship to transform slums of de- reciprocal rights and responsibilities. spair into settlements of transformation. A settlement in • Systematically improving formal access to transformation might manifest slumlike conditions, but municipal services. it is on an upward trajectory, where communities are organised and working in partnership with local gov- • The active participation of community ernment to maximise the value of the limited resources stakeholders and service providers in the creation available. This reversal of the downward spiral is the of city development strategies and local community fundamental objective of the LSC programme. upgrading plans. Achieving such an approach to development in the con- • Developing policies to extend secure tenure, text of scarce resources poses a number of challenges, improve planning and urban management, and enable local government to respond to the current not least of which are quality leadership, pragmatism, and future demands of urban growth and the needs and compromise. The approach requires institutional of the urban poor. space where different community stakeholders and ser- vice providers can engage in open dialogue on the stra- The underlying philosophy of the prgramme is based tegic vision and direction of the city and smaller-scale on respecting both the rights and responsibilities of all neighborhood development plans. The most successful parties. Such an approach requires clear distinctions and durable public community partnerships are crafted about the provision of public goods—such as land, through regular and structured engagements. services, and citizenship—as well as private goods, such as shelter. A family �nishing their own home in Bangkok, Thailand. © William Cobbett/Cities Alliance 4 The LSC Programme is �nanced through a combination of funds received from the Bill and Melinda Gates Foundation and core funds provided by all Cities Al- liance members. 17 2009 ANNUAL REPORT To this end, the project promotes the establishment of Post-conflict Countries Make Slum Upgrading a Priority citywide development forums as a component of the Monrovia and Freetown are the national capitals and core business of the local government. The forums are primary cities of neighbouring Liberia and Sierra Leone, designed to ensure that regular engagement between both of which have recently emerged from sustained the government and citizens produces pragmatic so- periods of political turmoil and civil war that largely de- lutions that are endorsed and upheld by all key par- stroyed their institutional and physical infrastructure. ticipants. The forums also provide assurance that all Years of conflict saw the migration of large numbers of parties to agreements are held accountable for their people from the provinces to the relative safety of the commitments, building a culture of public accountability cities. The majority of the people moved to the burgeon- and transparency. ing slums and informal settlements that now house and provide the survival environment for more than half the Not all problems can be solved at the local level, nor population of both cities. is it desirable to have different rights in different areas. Such issues as the vexing question of urban land re- Signi�cantly, both countries’ Poverty Reduction Strategy quire state or national policy intervention. Therefore, Papers (PRSPs) have placed slum upgrading �rmly on the programme promotes a national urban dialogue the development agenda. Liberia’s PRSP speci�cally that directly links to the issues raised at the local level, identi�es the upgrading of �ve large and dense slums bridging the institutional gap between national and sub- in Monrovia among its strategic priorities for poverty re- national governments, and between government as a duction. Sierra Leone’s PRSP also recognises slums as whole and its citizens. an area of particular concern for its capital, Freetown. Although many of the issues affecting the cities of the While decentralisation policies in both countries are developing world require long-term approaches, vis- increasing the pressure on new mayors and city ad- ible, short-term progress can be delivered if the cor- ministrations, they are simultaneously opening new op- rect partnerships are cemented and modest resources portunities for urban reform and development. Charged made available. To ensure early delivery of tangible re- with the task of improving the living conditions of their sults, up to 50 percent of the funding can be budgeted sizeable slum populations, the Monrovia City Corpora- for direct investment in slums and their community insti- tion and the Freetown City Council, in partnership with tutions. These funds will not �nance large-scale munici- the World Bank and UN-HABITAT and with support from pal infrastructure projects, but rather will help capitalise the Cities Alliance, have each taken the important �rst local municipal development funds, enabling local-level steps in preparing a large-scale citywide slum upgrad- responses to smaller-scale, immediate service needs. ing initiative. Ultimately the programme aims to support govern- To date, neither city has had the appropriate policy ments through demonstrating workable solutions to the frameworks or technical resources to address the chal- complex governance problems associated with rapid lenge of slum upgrading or formulate measures to limit urban growth, including citywide approaches to the up- their further growth. Public sector intervention in Free- grading of slums. The vision of success would be bold town has been con�ned to sporadic slum clearance changes in policy and practice in a number of develop- or as part of wider sectoral improvement projects or in ing countries, resulting in a more inclusive approach to response to speci�c local crises such as landslides, the urban poor and proactive preparations for an urban flooding, and �re. In Monrovia, a belief that the “slum future. Speci�cally, this would result in signi�cant and problem� can be solved only by relocating slum dwell- visible progress in extending citizenship to the urban ers to periurban areas or the rural land of the provinces poor and ensuring their access to land and services, has been a widespread, albeit unsubstantiated, tenet of as well as support for the constant improvement of their government at all levels. condition over time. 18 CITIES ALLIANCE Support from the Cities Alliance, provided through a For Freetown, a signi�cant outcome of its prepara- small preparatory grant designed to help begin the pro- tory initiative has been a Slum Strategic Management cess of developing a comprehensive slum-upgrading Agreement, endorsed by the mayor and four key na- programme, enabled both cities to identify and anal- tional government ministers, which lays out a progres- yse the systemic causes of slum formation and growth sive set of policy principles that embrace: and, for the �rst time, provided the basis for exploring strategy alternatives. Both cities actively involved slum • The integration of slums into the fabric and dwellers and their community representatives through- development imperatives of the city. out the process. For Monrovia, an exchange between • The delivery of urban services to all slums. community-based organisations (CBOs) and city of- • The importance of households and community �cials with their counterparts in Accra, made possible participation in the management of those services; with the active support of Slum Dwellers International, • The right to inalienable tenure to property; and proved invaluable in terms of introducing and discuss- • Slum community engagement in the planning, ing alternative approaches to local and citywide action. management, and �nancing of local development, while maintaining residents’ cultural identities. Slum dwellers in a settlement in Freetown, Sierra Leone. © Andrea Merrick/Cities Alliance 19 2009 ANNUAL REPORT Some extracts from the agreement are noteworthy, as Cities Alliance promote local ownership in LDCs, which much for their tenor as for their articulation of citizen- is likely to require greater support for building institu- ship: tional, technical, and managerial capacity? Above all, the Cities Alliance’s �rst phase of assistance to Sierra Slum residents as citizens of Sierra Leone are to be Leone and Liberia has underscored the signi�cance of given full rights as provided under the Constitution.... its commitment to longer and more programmatic en- The slum areas are an integral part of the overall Free- gagements in the countries and cities it supports. town urban area. The approach to their development/ improvement should as such be taken from a compre- hensive perspective.… The involvement of the local residents in the urban service delivery will maximize the potential for inclusion of their citizenry in the pro- cess of urban governance and could make the service itself more efficient and cost-effective.… The inclusion of slum residents in the development and financial mechanism and monitoring systems is not only a local resident right but also a guarantee of a successful urban development. The document goes on to enumerate a set of activities based on participatory governance, transparency, and accountability. The Freetown agreement is an outstand- ing document, providing a solid foundation for a com- prehensive citywide slum-upgrading strategy for Free- town. While the political commitment for slum upgrading has yet to be solidi�ed in such a concrete manner in Mon- rovia, there is every indication that the Monrovia City Corporation’s slum upgrading initiative will gain traction. A steering committee is being constituted, chaired by the mayor and with representatives of the key national ministries and corporations, municipal authorities and technical of�cers, NGOs, slum-based CBOs, and en- gaged members of the donor community. For the Cities Alliance’s members, the preparatory initia- tives in Sierra Leone and Liberia raised some important issues about the operating environment in Least Devel- oped Countries (LDCs). For example, how should the Cities Alliance respond to a committed national or local government wishing to develop a meaningful slum up- grading programme when donor funding priorities may not be aligned to support the agenda? How should the Freetown City Council takes important �rst steps in preparing a citywide slum upgrading initiative. © Andrea Merrick/Cities Alliance 20 CITIES ALLIANCE Box 3: Lessons from the Evaluation The initiatives of both Freetown and Monrovia were the slum dwellers to learn from each other’s experiences, subject of the Cities Alliance’s annual �eld evaluation. relationships with authorities, and approaches to Beyond the substantive lessons that the Alliance garnered negotiation. They enable local authorities to compare and from the cities’ experiences, the evaluation allowed learn from each other’s preoccupations and approaches. the Alliance to reflect on both the relevance of its small preparatory grants and, more broadly, on the approaches • Public of�cials and slum and leaders of community to supporting least-developed countries (LDCs) with based organistions (CBOs) travelling together and jointly particularly complex development challenges. Among the representing their city also provides a unique opportunity for �ndings: all parties to develop mutual understanding of each other’s positions, capacities, and limitations. • Inclusion of slum upgrading in a national PRSP can be a real force in motivating government to respond to • Slum CBOs and savings groups are likely to be the needs of the urban poor. Its impact may be tempered, numerous and active. Coordination rather than mobilisation however, when the upgrading agenda is poorly resourced. is important to maximising individual group efforts and negotiating strengths. • While supporting countries emerging from conflict may present signi�cant operational challenges, the timing of • A distinct preparatory phase focused on mobilising engagement is critical to harnessing the opportunities for stakeholders, building consensus, and developing plans national and municipal development policy formulation and for a slum upgrading programme should occur prior to the political will and enthusiasm for change that may exist. the development of a full slum-upgrading policy and implementing strategy. • Where approaches to slum upgrading are under discussion, exchanges with cities with comparable situations are particularly relevant and valuable. Such A vibrant market in Monrovia’s Sonewein slum community. (Liberia) exchanges provide an opportunity for peer groups of © Andrea Merrick/Cities Alliance 21 2009 ANNUAL REPORT Box 4: Highlighting Gender Issues in Slum Upgrading Although gender is a term widely used within development in general, settings are seldom included on land and structure titles and do not few speci�c measures and activities are systematically put in place to normally inherit land. There is a need to ensure that such land claims address the gender dimensions of slum upgrading. are not just legally, but also socially recognised and enforceable by an external legitimising authority. Why Focus on Gender? Gender is one of the variables (along with ethnicity, age, and class) Women’s access to land can be enhanced by: used in the distribution of privilege, prestige, power, labour, and a • Securing joint land titles; range of social and economic resources. Women and men differ in • Raising awareness of women’s land rights that are secured their roles, needs, and perceptions of urban development. However, in different laws and policies; reports show that conscious efforts to address their views lead to • Providing access to legal aid on land right issues. better project design and performance. • Hygiene and Sanitation Gender Includes Men Having access to private safe spaces for sanitation is an issue of dignity, Gender has in some contexts been reduced to mean “women�. Such culture and safety, and is often ranked as a high priority by women. an approach disregards the gender-speci�c needs of men and the relations between men and women that affect women’s empowerment. • Insecurity Crime, violence and rape have a high frequency in many slum areas. Some Important Gender issues In Slum Upgrading Young girls and boys that work as street vendors late at night are While gender issues vary according to culture and context, below particularly at risk. An emphasis on safe, well-lit passages for spaces are some common issues experienced within slum upgrading across of living and spaces of work should be included in urban planning and several countries. slum upgrading. • Lack of sex disaggregated data in urban areas • Economic empowerment Access to reliable data and analysis is essential to identifying gender Saving groups have in many settings proved successful in economical issues and being able to prioritise, make decisions, and advocate on and organisational empowerment of both women and men. There is the basis of gender. Most data are collected at household units from however a need to follow up on what happens within households with the head of the household, and important intrahousehold differences regards to women’s real control over the money they access through are not recorded. Slum upgrading can bene�t from a gender analysis the saving groups. that focuses on how the interventions affect men and women differently, and how gender-speci�c issues can be addressed. • Vulnerable groups Female headed households and other vulnerable groups can have • Participation in decision making processes dif�culties in providing the labur often required from households to In many countries women and youth representatives are included at all participate in projects. It is important to make sure Female headed levels of government. However, they rarely have leadership positions households and other vulnerable groups are not excluded from slum and traditional perceptions and structures can make it dif�cult for upgrading projects by identifying the vulnerable household and them to be heard. There is a need to go beyond symbolic participation provide special measures to facilitate their participation. of women and youth and to focus on their actual impact in decision making processes. For slum upgrading programmes to be more effective gender needs to be considered in all stages and at all levels of a slum upgrading • Land rights process. Access to land is important in several ways. In addition to a place for shelter and protection you often need land to access credit. Even Yemen: Local woman who received a small loan to buy a pool table now rents though laws and policies frequently provide for it, women in many the table to the residents of her town. © Scott Wallace/World Bank 22 CITIES ALLIANCE City Development Strategy: An Inclusive City Management Process that Promotes More Effective Urban Governance The process through which local stakeholders and citi- zens meet, deliberate, argue, and bargain over a com- mon, collective vision for their city is unique to that city or town and, yet, at the same time, would be very famil- iar to other cities. For this reason, the Cities Alliance has resisted both the temptation and the call to create tem- plates for the process through which cities rethink how they perform and improve their core functions. Rather, Cities Alliance and its members see their role as en- couraging city leaders to learn from the experience of other cities that have been successful in tackling seem- ingly intractable problems and transforming parts or all of the city. This is not the stuff of handbooks, or toolkits. The very concept of citizens meeting to discuss their common, long-term future is as old as cities themselves. Although Cities Alliance provided a measure of guid- ance through its 2006 publication, Guide to City Devel- opment Strategies: Improving Urban Performance, the reality is that a city’s long-term development strategy should emerge from the needs of the city itself and the collective analysis of the city’s major stakeholders. But external technical assistance is often both necessary and extremely useful—and would ideally come from the experience of another city that has, itself, undertaken a similar process. From its experience of providing resources to fund city development strategies (CDSs) over the past decade, the Cities Alliance can point to a number of conditions that seem instrumental to the success of the process: • The need for, and the decision to undertake, a CDS should emerge from within the city itself. The main driver can be the city administration—as in the case of Johannesburg or Lagos—or from the private sector concerned about the long-term prospects for the city, its effectiveness, and its competitiveness—as in the case of Mumbai. Yemen, Sana’a. Market in the old city. © Glen Christian/Still Pictures 23 2009 ANNUAL REPORT • Conducive national frameworks are vital for suc- In all cases, the transformation of a city is a long-term cessful city transformations. In some cases, it is a high- process that requires consistent action over time. In er tier of government that identi�es the need for whole- its most successful programmes of support, as in the sale reforms in urban management and incentivises city of São Paulo or the state of Bahia in Brazil, Cit- cities through a combination of �nancial rewards and ies Alliance activities have survived changes in politi- penalties. The most striking example of this is the set of cal leadership and government, even if activities may reforms initiated by the government of India through the have slowed down or been suspended for a period. Jaharawal Nehru Urban Renewal Mission. Overall, the Cities Alliance has adopted an increasingly • Clear, decisive, and consistent political leadership flexible approach to CDSs, allowing cities to interpret from within the city can, in some cases, be suf�cient to the process in manners most suited to their speci�c drive a city’s transformation, as in the cases of Barce- needs or approaches to urban governance. This flex- lona and Bogota. ibility and absence of prescription is, we believe, key to the success of the CDS and has allowed it to be used • City strategies are often derailed (or even prevent- as an effective instrument in tackling services for the ed) through the narrow interests of local politicians, or urban poor and, increasingly, the challenges of climate political parties—for example, through the decision of change. new politicians to jettison the policies of a previous ad- ministration. The challenge for any city, or government, is to rise above short-term political considerations. Street scene in Dakar, Senegal. © Ron Giling / Peter Arnold Inc. 24 CITIES ALLIANCE City Development Strategies: Experiences in 2009 in extreme institutional fragmentation. There, the CDS process is struggling to bring together 47 local bod- The following section highlights a number of themes ies, 13 intermediary bodies, and the regional authori- that have emerged in recent CDSs supported by the ties. The CDS under preparation established innova- Cities Alliance. These include a range of issues, both re- tive mechanisms to achieve intermunicipal cooperation. lated and disparate, that further underline the flexibility However, in the absence of a clear political leader, it is of the CDS as a vehicle for improved urban governance. dif�cult to come up with a strong common vision and to plan the future of Dakar—especially because the cen- Metropolitan Governance: Comparing Three CDSs in tral government intervenes with important urban proj- West Africa ects in the capital city territory without consulting the The complexity of preparing a long-term CDS can be local authorities. exacerbated by the institutional arrangements of the city, particularly in larger metropolitan areas. A series In Cotonou, the agglomeration is divided into three mu- of gradual jurisdictional amendments to a growing city, nicipalities: Cotonou, Abomey-Calavi, and Seme-Podji. or poorly thought-through decentralisation processes, The CDS is prepared jointly under the leadership of the often results in the creation of a large number of mu- three mayors, who have come together to create a steer- nicipal entities with relative autonomy and overlapping ing committee. The fact that these mayors come from authority. This phenomenon is found, in different forms different political parties, each with a strong leadership and with different features, in all parts of the world. style and not necessarily sharing the same priorities, makes cooperation among them challenging. Notwith- The minimum role of a metropolitan authority is gener- standing these constraints, the three mayors recognise ally to provide some overarching coherence to services that they have to coordinate their efforts to jointly ad- affecting the entire metropolitan area, such as transport, dress some of the key issues faced by the agglomera- solid waste disposal, energy, and the supply and treat- tion. Setting up a long-term intermunicipal mechanism ment of water. Fragmented metropolitan governance is probably will be one of the major results of the CDS. common in developed and developing countries, an issue that has been addressed in a number of CDSs The preparation of a CDS for an agglomeration offers a supported by the Cities Alliance. Although the most unique opportunity for fragmented subnational govern- challenging forms of metropolitan governance can be ments to work together in addressing issues of com- found in Latin American, complicated institutional ar- mon interest. Because of the flexible nature of a CDS rangements also occur in Africa. exercise, a more relevant de�nition of the territory to be targeted—beyond the usual administrative boundaries In West Africa, for example, the Cities Alliance is sup- and responsibilities—can be agreed upon among con- porting the preparation of CDSs in Dakar, Senegal; cerned local authorities. CDSs allow pioneer mecha- Ouagadougou, Burkina Faso; and Cotonou, Benin. nisms for intermunicipal cooperation with the ultimate These three capitals exemplify the challenges of met- objective of eventual institutionalisation. ropolitan governance and offer an interesting range of institutional arrangements. For instance, Ouagadougou Lessons from the Field: Alexandria CDS for Sustainable has a metropolitan mayor who has authority over a city Development – Phase II composed of �ve districts (each with a district mayor), Located on the Mediterranean Sea, with some 4 mil- and each district is divided into sectors (30 in total). In lion inhabitants, Alexandria, Egypt, occupies a unique addition, 17 villages are attached to the city. This insti- place in history as a cosmopolitan city and a cultural tutional model has proved to be very ef�cient in facilitat- landmark. It is one of the oldest cities in the world, at ing a coherent citywide development strategy that also the crossroads of Western and Arab cultures and of encompasses the periurban areas experiencing rapid commercial exchange. With the support of the Cities urban expansion.In Dakar, decentralisation has resulted Alliance, Alexandria prepared a CDS to address some 25 2009 ANNUAL REPORT of the key challenges it faces today, including creating plication to Cities Alliance and led the implementation jobs amid spiralling unemployment; improving living of Phase I. The CDS certainly bene�ted powerfully from conditions in squatter settlements; and reducing pollu- this leadership, both in raising the pro�le of the project tion of one of the city’s key environmental assets, Lake and in ensuring active participation from the bureaucra- Marriout. cy and local stakeholders. The governor used the CDS project to further drive his reform agenda for Alexandria, Alexandria was selected as the focus of the Secretari- and this close association led to a general perception, at’s 2009 CDS �eld evaluation, and, as expected, it of- in Alexandria and throughout Egypt, that the CDS proj- fered a wide range of lessons for the Cities Alliance. ect was not only a success, but an important part of the The CDS project was originally supposed to complete reform momentum being built up in the governorate. its activities between 2003 and 2005 (Phase I), but a second grant extended the project into Phase II (No- Notwithstanding these positive outcomes, there were vember 2005–October 2007) to allow for completion also some disadvantages to this strong leadership of and consolidation of the work. However, because of the governor and close personal involvement of the changes in political leadership during 2006 and the ab- secretary-general. Because of the active role of these sence of the project’s previous champions, the nature of high-pro�le of�cials, the project did not bring on board the project changed signi�cantly. In broad terms, dur- all of the relevant stakeholders to enable extended own- ing Phase I the activities and outputs of the CDS project ership of the strategy. Consequently, the CDS project were widely perceived as energetic, innovative, and ef- failed to establish a clear implementation structure or a fective; in Phase II, it lost momentum. �rm institutional base. The experience of the Alexandria CDS illustrates a Shortly after Phase II began, the governor was brought dilemma of the “champion-led� project. Alexandria’s to Cairo to be the Minister for Local Government, and governor and the secretary-general were a powerful the secretary-general left soon afterwards. The new reform-oriented team; they championed the original ap- governor showed little interest in continuing the Alexan- A street market in Cairo, Egypt. © Andrea Haer/Cities Alliance 26 CITIES ALLIANCE Box 5: The Alexandria CDS Helps to Leverage Resources and Investment Despite these drawbacks, the Alexandria CDS process, The CDS also leveraged support from the joint World Bank even during Phase II, did successfully mobilise a variety Group’s Foreign Investment Advisory Service (FIAS) to of actors and resources towards achieving some of the build on the general local economic development study key goals articulated in Alexandria’s CDS. Perhaps most carried out in Phase I of the CDS project. FIAS conducted signi�cant has been the substantial national government a prefeasibility study for the establishment of a model investment (LE 700 million or approximately US$1.28 million) industrial estates program in Alexandria. in improved wastewater treatment to reduce pollution in Lake Marriout. During Phase I of the CDS, an analysis For the slum-upgrading component of Alexandria’s strategy, of the lake showed the signi�cant levels of pollution and the expertise of GTZ and the Social Fund for Development environmental damage. The CDS helped immensely in were leveraged by the CDS project. The World Bank and placing the environmental challenges of Lake Marriout at the Alexandria governorate collaborated with GTZ to conduct highest level of local and central government priorities. participatory rapid appraisals (PRAs) in 20 informal settlements during Phase I and to develop a citywide Another key component of Alexandria’s CDS relates to upgrading strategy during Phase II. investments in local economic development. The World Bank task manager tapped into the work of the International In Phase II, three pilot communities were selected for Finance Corporation (IFC) on improving business-enabling more detailed analysis and planning. Urban structure environments and mobilised US$900,000 to conduct a and land use plans were prepared to serve as the legal technical study. The resulting guidance on simplifying basis for land regularisation and servicing the areas. The administrative procedures for business start-up in government of Egypt’s social fund carried out large-scale Alexandria served as a model for replication elsewhere in household surveys in the three settlements to validate the Egypt. The successful re-engineering of procedures at the needs identi�ed during the PRA process. The social fund One-Stop Shop in Alexandria is considered a flagship by then assisted the governorate of Alexandria with designing the government of Egypt and IFC and has been scaled up the required investment projects and provided capital to to other governorates. implement some small works, including the construction of commercial shops and a pedestrian bridge. A �sherman hauls in his catch in Alexandria’s Lake Marriout. © Andrea Haer/Cities Alliance 27 2009 ANNUAL REPORT dria CDS. It soon became apparent that the whole ex- Alexandria at this time. The CDS project both contrib- ercise had limited institutional strength, and its activities uted to and bene�ted from this broad reform movement. visibly diminished as it quickly lost momentum. Most disturbing, the participatory approach and the strategy At the time of the Alexandria CDS, the General Organi- process were not consolidated or carried forward. The zation of Physical Planning (GOPP) had begun to roll out project could not survive the loss of its original cham- strategic planning in small towns and villages and was pions. interested in applying the new planning methodology in cities. Alexandria was the �rst example of strategic A key lesson from the Alexandria CDS experience is planning in a large city, and it was viewed favourably the importance of the initial project set-up—in particu- as an experience to be replicated. The management of lar, the importance of establishing both a clear project the relationship with GOPP during the CDS project most management structure and a broad-based participatory likely helped to create a level of buy-in and assurance mechanism. Time and energy must be devoted to this that strategic planning was possible in Egyptian cities. initial institutionalisation—even if there is a strong local champion anxious to move ahead—to ensure that the In 2008 the government passed new urban planning key features of the CDS process can survive a change legislation that makes participatory, strategic planning in leadership and carry on into the future. mandatory for all cities. GOPP is currently in the pro- cess of rolling out CDS to cities nationwide. While the The mobilisation of technical and �nancial resources Alexandria CDSs did not catalyse these reforms, it has was made possible, in part, through the signi�cant ef- contributed to the debate. forts of the World Bank task manager and project team to keep key national stakeholders engaged in the CDS State of Cities Reports: Promoting Informed Debate and process and to reach out to other partners to leverage Analysis of a Country’s System of Cities their collaboration and contributions. The activity pro- vides a positive example for the Cities Alliance of maxi- In the 10 years of its existence, the Cities Alliance has mising coherence of effort of members and partners been struck by how many cities—and countries—con- through a CDS. tinue managing their jurisdictions with outdated infor- mation and with limited analysis of major trends affect- That positive engagement also increased the pro�le of ing their cities, such as signi�cant demographic shifts the Alexandria CDS and helped it to feed into the plan- associated with urbanisation. Without this data and this ning reform process that was underway at the national analysis, cities are not in a position to understand why level. For generations, the Egyptian governmental sys- some cities prosper, while others within the same na- tem has been highly centralised, top-down, and rigidly tional framework decline. In addition, the process of bureaucratic. In recent years, however, there has been producing and analysing this information encourages signi�cant progress in reform, especially in relation to cities to compare different approaches to similar prob- urban development planning, local government, and lems, whether within the same country, between coun- citizen participation. Despite the weight of bureaucratic tries, or—ideally—both. tradition, there is increasing opportunity for innovation, helped by the general—although gradual and uneven— The Cities Alliance offers support to those countries spread of new ways of thinking about governance. that wish to overcome this very fundamental handicap with assistance producing a State of the Cities Report The experience of the Alexandria CDS reflects this (SoCR). The process itself of actually producing the speci�c context. Its considerable success (especially report has enormous direct bene�ts, such as building Phase I) was due largely to it being viewed as part of internal capacity, and it also begins the process of rais- the new ideas and initiatives developing in Egypt and in ing the national pro�le of the issue. The 2004 and 2006 28 CITIES ALLIANCE SoCRs produced in South Africa set a very high stan- dard of data presentation and analysis, and they have spurred a number of other countries to follow suit. Ideal- ly, the Cities Alliance would like to see these reports pro- duced in as many countries as possible and at regular intervals, to allow for progress (or the lack thereof) to be regularly reviewed. These reports are also an excellent vehicle for improving accountability for the use of public resources and assessing the positive and negative ef- fects of different policy options. In 2009, the Cities Alliance witnessed an increase in requests for SoCRs. Requests came from national gov- ernments as well as members of the Cities Alliance. There is increasing recognition that these reports in- form policy and decision-making processes and have the potential to bring about systemic change by link- ing knowledge, policy, and institutional development on the urban agenda. Similarly, the increasing demand for SoCRs from members demonstrates the need for solid and up-to-date information by city administrators and public of�cials. The Cities Alliance has been promoting SoCRs in Sub-Saharan Africa in particular. This increasing demand for SoCRs signals that local governments are acknowledging the innovations that can be derived from city-to-city information sharing and partnerships throughout the development process of SoCRs, helping them to face complex challenges and improve urban governance. Because urban economies and social dynamics play a fundamental role in national planning and economic development, cities’ stakehold- ers are progressively acknowledging the relevance of studying, understanding, and setting metrics for cities. Ongoing support by the Cities Alliance for the devel- opment of SoCRs includes those being undertaken by Brazil, Mozambique, and Syria (country focus) and Latin America, the Caribbean (regional focus). Box 6 (on p.30) presents a brief summary of each of these projects.5 5 A preparatory phase grant was awarded to the Alliance of Mayors in Tanzania (TACINE). This grant allowed TACINE to set the basis, both institutional and data- related, for the development and production of a Tanzania SoCR, Manila, Philippines. Photo courtesy: Asian Development Bank (ADB) 29 2009 ANNUAL REPORT Box 6: Sample of Proposed and Ongoing SoCRs With a country focus Brazil SoCR The Brazil SoCR will present an analysis that focuses on human living Mozambique SoCR conditions in cities mainly since the 1980s, when the resurgence of The Mozambican SoCR will provide an information baseline to inform democracy had an impact in the political, economic, and territorial rela- and influence national policies and strategies and enhance the dialogue tions throughout the nation. In particular, the report will establish the among local authorities, national entities, and development partners. links between such conditions and the development of city infrastructure, This report will examine 23 cities, focusing on livelihoods, environment, provision of public services, local economic development, distribution service delivery, spatial form and infrastructure, �nancial resources, and of wealth, and more generally, with city management policies. Also, governance. Both the national government and municipalities have this report will identify progress made in participatory management to expressed their commitment to undertaking this activity. shed light on democratic policies and the new relations among federal authorities. The report will explore the relevant social, environmental, and At the core of the conception of this report is the need to improve city economic interdependencies between cities and regions, and it will be a management so it can contribute to viable long-term growth while �ght- fundamental input to building a national urban development policy. ing poverty. The development process of this report will build municipal capacity by enhancing coordination and participation from local actors, This report will provide a typology of Brazilian cities and illustrate the in particular those advocating for the poor. In the long run, the report existing interrelations between city and regional development across will also contribute to the development of a CDS focusing on responses the country. It will de�ne multiple quantitative urban indicators (for to HIV/AIDS, local economic development, city infrastructure, and inter- example, population trends, migration dynamics, occupation trends, governmental �scal performance. Additionally, the process will provide a �scal performance) and evaluate public policies and �nancing condi- forum for participating cities to interact and exchange experiences and tions for urban development. Finally, it will motivate a constant dialogue, best practices. through mobilising a diverse group of stakeholders, to promote social equity and political inclusion. Partners involved in this endeavour include the National Mayor’s Front, the Brazilian Association of Municipalities, With a regional focus the National Confederation of Municipalities, the Ministry of Cities, Caixa, IPEA (Instituto de Pesquisa Econômica Aplicada, or the Institute for Ap- SoCR for Latin America and the Caribbean (LAC) plied Economic Research), the World Bank, the Inter-American Develop- This will be the �rst issue of the Regional Report on the State of LAC Cit- ment Bank, and UN-HABITAT. ies, which will be initially introduced during the Fifth Session of the World Urban Forum in March 2010 in Rio de Janeiro, Brazil. The document Syria SoCR will provide signi�cant data to inform national and local governments to better formulate urban policies that are aligned with the Millennium The Syria SoCR’s overall goal is to improve urban management through Development Goals. Additionally, this project will make possible the analytical work and participatory processes and to establish bases for establishment of a Regional Urban Observatory to collect data in a sys- more solid city development strategies that include poverty reduction tematic way and to enable future preparation and development of these and irregular settlements management. This will be the �rst report of its reports in LAC. Some of the partners involved in this project include kind in the country, and therefore it establishes a milestone for continu- UN-HABITAT, the governments of Chile and Brazil, the Ministries of Hous- ous urban reporting and helps city governments to determine bench- ing and Urban Development, members of MINURVI (General Assembly marks to measure progress. For the preparation of this activity, commit- of Ministers and High Level Authorities on Housing and Urbanisation in ments have been made by the Ministry of Local Administration and the Latin America and the Caribbean) , and local government associations State Planning Commission. represented through FLACMA(Federación Latinoamericana de Ciu- dades, Municipios y Asociaciones de Gobiernos Locales). Additionally, 16 city mayors have already been engaged in the prepara- tory phase of this effort. International partners include GTZ through the The project hopes to involve ECLAC (Economic Commission for Latin Sustainable Urban Development Programme, the South African Cities America and the Caribbean) and other subregional partners. Habitat Network, and the Arab Urban Development Institute. An innovative International Coalition (HIC), representing civil society, will be part of the outcome expected from this effort is the urban e-platform, which is the Steering Committee. information-sharing component of the proposal that enhances its broad- er dissemination and communication between local and international Uganda; People walking along an open sewer in a poor neighborhood of Kampala. actors. In addition, the process for developing the report incorporates © Ron Giling/Still Pictures several mechanisms to promote participation and regional collaboration. 30 CITIES ALLIANCE Joint Work Programme on Cities and Climate Change The World Bank is currently expanding its work on cit- ies and climate change and developing new partner- In cities, weather changes caused by climate change ships with donors and agencies. At the same time, the primarily affects the urban poor, particularly in devel- Bank has launched its new Urban and Local Govern- oping countries, where the risks can be extremely high ment Strategy, to raise the pro�le of this issue. Follow- and the levels of protection and rapid response very ing on from the landmark 2009 Report titled, Reshaping low. Climate risks and vulnerabilities of cities can have Economic Geography, which made a compelling case a greater impact in communities living in marginal or for cities, the 2010 World Development Report focused irregular settlements because they are often located on on climate change itself. UNEP is building strategic unstable soil, in areas at risk for flooding, and in steep partnerships on cities and climate change through the zones susceptible to landslides. City and municipal Cities Alliance to capitalise on 10 years of work on this governments must work together when addressing both relevant area and bringing cities into the debate on adaptation and mitigation measures because these climate change. UN-HABITAT is emphasising its work are interconnected and affect the development and on cities and climate change through the recent Gen- poverty-alleviation agenda. Consequently, the climate eral Assembly Resolution A/63/415 and UN-HABITAT change agenda in cities must involve a concerted effort Governing Council Resolution HSP/GC/22/CRP.3/Rev. of development partners and focus on city governance, Furthermore, the scope of these three partners is suf- slum upgrading, and improved municipal service de- �ciently large to help facilitate support from other key livery. partners, particularly United Cities and Local Govern- ments (UCLG). In this context, Cities Alliance facilitated the establish- ment of a joint programme among its multilateral mem- By mobilising key members, the Cities Alliance is ac- bers, all of whom have a primary interest in this issue. tively encouraging these three relevant institutions to These members—including the World Bank, UN-HAB- approach the climate change challenge from an innova- ITAT, and the United Nations Environment Programme tive and collaborative perspective. The Cities Alliance (UNEP)—have come together to fashion a coordinated plans to assemble a global platform that addresses the and focused response to climate-related impacts on cit- emerging topic of cities and climate change, given the ies, especially those in developing countries. Air pollution in Santiago de Chile. © Julio Etchart/Peter Arnold Inc. 31 2009 ANNUAL REPORT rapid development of knowledge and practices from a Joint Work Programme on Mainstreaming the Environ- variety of stakeholders. ment in Cities Alliance UNEP’s decision to join Cities Alliance and the debate In the context of this joint work programme, other Cities on the environment during the Consultative Group Alliance members and development partners will be in- meeting in Morocco in 2005 have led to concerted calls volved based on their interest, mandate, and compara- from Alliance members to strengthen the environmental tive advantages. For instance, both the government of dimension in its activities. Integrating the environment the Philippines and the League of Cities of the Philip- in CDSs and slum upgrading programmes is essential pines will be valuable partners in mainstreaming climate to ensuring continued availability of environmental re- change into their CDS programme, which is, arguably, sources for urban development and to limit the impact the most dynamic of any national programme. UCLG of environmental hazards on hard-won development can crystallise the perspectives and needs of local achievements. It is also clear that environmental degra- authorities on climate change while providing support dation primarily affects the urban poor and that proper through decentralised cooperation. The International urban environmental management contributes signi�- Council for Local Environmental Initiatives (ICLEI) will cantly to urban poverty reduction. contribute to the sharing, dissemination, and transfer of relevant knowledge and practices through its network To respond to these requests, the Cities Alliance Sec- of 700 cities involved in the Cities for Climate Change retariat and UNEP developed a joint work programme Campaign. on mainstreaming the environment in the Cities Alliance activities. This joint work programme builds on previous The joint work programme on cities and climate Cities Alliance support to UNEP through the prepara- change was of�cially launched at the World Bank’s Ur- tion of the Liveable Cities publication. This joint work ban Research Symposium held in Marseille, France, programme will: (i) identify tools and practices that can in June 2009. Cities Alliance has secured funding of contribute to integrating the environment in Cities Alli- US$500,000 for this effort, which has a total three-year ance activities in general and in CDS in particular; (ii) budget, including co�nancing from its three key part- provide support to cities to integrate environment into ners, of US$5.5 million. Some of the main outputs ex- their development strategies; (iii) mobilise support from pected from the programme include analytical products, UNEP to Cities Alliance clients; and (iv), look for syn- such as a clearinghouse related to cities and climate ergy with Cities Alliance partners and other develop- change, and a joint position paper on the topic. Practi- ment partners to support cities and governments on cal products include actual cases of CDSs integrating urban environment activities, speci�cally those on cities climate change as a key component, a city greenhouse and climate change. Development of the joint work pro- gas inventory, a city vulnerability assessment tool, and gramme began during the �rst half of 2009; implemen- a handbook for mayors. tation will commence in 2010. All of these can be informative and instrumental for city and government of�cials as well as other urban stake- Joint Work Programme with UCLG on CDS holders who are engaged in responding to the climate agenda. Overall, the programme foresees improved To help local governments respond to a range of chal- degrees of coordination among the participating institu- lenges, from urbanisation to the decentralisation of au- tions and coherence of efforts in their approaches and thority, the Cities Alliance has developed a joint work activities. programme with the member representing the voice of local governments: United Cities and Local Govern- 32 CITIES ALLIANCE ments. This joint work programme aims to help local au- thorities strengthen their capacity and engage in strate- gic urban planning to reduce poverty and contribute to sustainable urbanisation. With its access to cities, networks, and local govern- ment associations, UCLG is uniquely positioned to tap into the experiences and needs of local authori- ties with regard to strategic urban planning. Moreover, UCLG has already created a Committee on Strategic Urban Planning that provides local authorities with a fo- rum to discuss the issues involved. Headed by Mayor Miguel Lifschitz of Rosario, Argentina, this committee has been grappling with strategic urban planning from Chinese Vice President Xi Jinping addresses the opening ceremony the perspective of different institutions, including local at the UCLG World Council in Guangzhou, China, 13 November and national governments, as well as the private sector 2009. Photo Courtesy: UCLG and international development agencies. The joint work programme will support UCLG’s Committee on Strate- gic Urban Planning by producing a policy paper that Rede�ning the CDS Framework: The CDS Subgroup establishes the position of local governments and their Following an internal review of the CDS portfolio re- associations on related issues. A global debate on the view and the launch of its Medium-Term Strategy (MTS) position paper among UCLG’s members will consider 2008–11 the Cities Alliance Secretariat proposed a CDS the policy and recommendations at UCLG’s World Con- Conceptual Framework, which incorporates a platform gress in 2010. for its members to strengthen collective knowledge and exchange of information on the CDS. The joint work programme also focuses on promoting city networks to encourage the exchange of knowledge The portfolio review pointed to a number of areas of con- and learning among local authorities and local govern- cern and also highlighted some key areas for improvement. ment associations (LGAs). City-to-city and LGA-to-LGA Preliminary analyses suggest that some of the city devel- mentoring processes will be established, monitored, opment strategies supported by Cities Alliance members: and evaluated to determine their effectiveness as a mo- dality of Cities Alliance support for CDS. • Tend not to be truly strategic; • Often fail to translate into action; Finally, the joint work programme seeks to facilitate • Do not often establish priorities, nor effectively UCLG’s participation in the CDSs subgroup, which was mobilise �nancing for investments; established by the Cities Alliance to increase collective • Often fail to take into consideration spatial and know-how on city development strategies. UCLG will territorial dimensions; and contribute to the subgroup by assessing the demands • Most importantly, do not always have a clear pro- and knowledge gaps of cities, as well as identifying cit- poor focus. ies´ good practices and tools in preparing and imple- menting CDSs to enrich the Cities Alliance knowledge on the process. 33 2009 ANNUAL REPORT These preliminary �ndings, while troubling, presented The CDS Conceptual Framework will also serve as a the opportunity to build on the comparative advantages structure to identify tools and city practices for incor- and core mandate of the Cities Alliance to provide “a porating cross-cutting issues in CDS, such as the en- global partnership [that] aims to: provide a structured vironment, climate change, gender, and ensuring that vehicle for advancing collective know-how� and to “im- CDSs have a clear pro-poor focus. The information col- prove the quality of urban development cooperation lected will eventually be organised and made available and urban lending.� through a CDS One-Stop Shop on the Cities Alliance Web site in January 2010. This CDS Web page will tar- The �rst step was the formation of the CDS Subgroup get urban practitioners at national, local, and interna- in March 2009, which is designed to host meetings of tional levels and will help: Cities Alliance members to debate different approaches and outcomes, and strengthen the organisation’s col- • Local practitioners to choose from among a menu lective know-how on CDS. Moderated by the Cities Al- of approaches, tools, and experiences; liance Secretariat, the subgroup is tasked with jointly • Local and national authorities to choose the most developing the CDS Conceptual Framework, to help appropriate combination of support modalities capture and share all the existing knowledge and expe- from the Cities Alliance members; and, rience on CDS, including the several CDS publications, • Cities Alliance members to access each other’s tools, and case studies available. tools and experience. The framework will incorporate the building blocks of a CDS—for example, mobilising the actors, diagnos- ing the existing situation, agreeing on a vision, and so forth. These building blocks will provide a structure to collect, store, and access CDS-related information. For each of the CDS building blocks, (i) available tools will be identi�ed and captured, including all the different tools used by Cities Alliance members (for example, city consultations; analyses of strength, weakness, op- portunities, and threats; stakeholders analyses; urban pacts); and (ii), city practices in applying these tools will be documented. In addition, a taxonomy of CDS support available from the Cities Alliance members will be established for local governments and other clients to know at a glance which members to turn to for what types of support. These will include UCLG for network- ing and decentralisation cooperation; U.S. Agency for International Development, UN-HABITAT, and GTZ for technical cooperation; and the World Bank, Asian De- velopment Bank, and Agence Française de Développe- ment for capital investments. 34 CITIES ALLIANCE City Financing: A Landscape of Devastation and of Policies in Need of Reform Local Authorities Victimised by the Global Financial Crisis The origins of the �nancial crisis that erupted in Octo- ber 2008 can largely be traced to inadequate public policies on �nancing arrangements for housing in the United States (see Box No. 7). Since budgets of local authorities in the United States rely heavily on taxes on real property, when the real estate bubble burst it be- came clear that local authorities would soon �nd them- selves in dire straits. However, the magnitude of the cri- sis resulting from securitisation of real estate loans—for �nancial sectors and ultimately for entire economies worldwide—meant that local authorities were faced with a number of other challenges. These included a drastic decline in their own revenues and in government trans- fers, a spike in social spending as a result of the reces- sion, and great dif�culties accessing �nancing through borrowing. It is now clear that all urban local authorities of the world were affected by these threefold pressures, and they all felt them in different and uneven ways, depending on geographic groupings and speci�c contexts. Least de- veloped countries (LDCs), which at the beginning of the crisis looked as though they would remain more or less shielded from it by the relatively limited integration of their �nancial systems, have in fact, not been spared by the economic recession and the constraints on �nanc- ing. African countries in particular have seen �nancing Above: © Jeff Turner The World Heritage Site Shibam of Hadramout, Yemen. Photo courtesy: BMZ 35 2009 ANNUAL REPORT Box 7: A few lessons from the real estate crisis in the United States The U.S. real estate crisis is the result of flawed public �nancial status found themselves in positions of negative policy. The Department of Housing and Urban Development equity, where the amount of remaining debt exceeded the (HUD) traditionally relied on two large government- value of the asset, their home. sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, to promote access to home ownership for the middle Many such individuals went into personal bankruptcy, their classes. For the poor, responsibility for facilitating access homes were seized, and a snowball effect on prices took to home ownership was vested in the Federal Housing hold. Others remained tied to their devalued properties Authority (FHA), which was to insure speci�c loans with while waiting for prices to rebound, thereby losing all no down payment. In the mid-1990s, HUD steered Fannie professional mobility, which further exacerbated the Mae and Freddie Mac towards �nancing aimed at greater employment situation. (There is now a correlation between access for the very poor not covered by FHA, then the unemployment rate and the home ownership rate in gradually raised the objectives assigned to these GSEs. some parts of the country.) To achieve the objectives, both GSEs launched ambitious The unfolding of these events draws attention to a number programmes with suggestive names (“American Dream of fundamental issues. On the one hand, there is no miracle Commitment� and “Catch the Dream� ), designed �nancial machinery for overcoming insolvency: in the to facilitate home ownership for some of the most absence of social provisions to make home owners more underprivileged households. These programmes were secure, a policy of “home ownership for all� cannot function essentially based on new �nancial products: a very small sustainably. On the other hand, such “home ownership for down payment or none at all; 30-year term with an attractive all� policies are rooted more in cultural schemes than in rate for the �rst years (loans referred to as 2/28, 3/27, economic reality. There is no correlation between a high and so forth); even the possibility of repaying each month percentage of home owners and the wealth of a country or an amount below the interest alone, with the balance to population. In the case of Europe, for example, the countries be repaid when due along with the principal (known as where home ownership rates are the highest (Greece, “negative amortisation�). Bulgaria, Romania, the Baltic states) also have the highest poverty indices; conversely, the countries with very low The architecture of these mechanisms is actually based on levels of home ownership (Sweden, Germany, Switzerland, the possibility of re�nancing with a new, larger loan after a the Netherlands) are among the world’s wealthiest and have few years (a cash-out system) or else with a home equity some of the world’s lowest levels of poverty and exclusion. line of credit, which takes into account the updated price of the asset to replenish the purchaser’s loan, thus allowing the In developing countries’ cities, the existence of rental stock, purchaser to pay the interest due. These two mechanisms which may be in the private sector and which is regulated are in the nature of rechargeable mortgage �nancing, which and secure for both tenant and owner, is a new approach works as long as prices climb; as such, they contributed to housing the underprivileged, recent migrants, and so to the increase and to the bubble. When the bubble burst forth; ensuring a degree of market fluidity; and collecting and the market faltered, it took with it many more than just local savings. An organised rental sector appears to be the underprivileged who were arti�cially able to afford home an integral part of a balanced housing policy and thus ownership. Solvent borrowers who had made the customary deserves active donor support. down payments and taken on loans appropriate to their 36 CITIES ALLIANCE sources and external investments dwindle, along with scope and suspend its strategy of expanding into the export earnings. In these countries, cities are and will markets of emerging countries. continue to be heavily impacted by the crisis. Moreover, the post crisis recovery is likely to take longer in these Sooner or later, developing countries will face dif�cul- countries than elsewhere because of the already limited ties in �nancing local and national investments similar resources of their local authorities, greater dif�culties in to those the developed countries are experiencing. accessing borrowing, and their high urban growth rates. The level of public-private partnership in infrastructure has dropped off substantially everywhere; in develop- ing countries, total volume has fallen by more than 40 A Major Impact on Financing Mechanisms and Tools percent for the year. This collapse is a direct result of Market-based �nancing and �nancing by specialised the �nancial crisis. As resources have become scarc- �nancial institutions—the two main �nancing systems er and more costly, the impact has been greatest on on which local authorities rely—have been affected by geographic sectors where the perception of risks was the economic meltdown to different degrees. Overall, greatest and where projects have been cancelled or municipal bond markets have been ravaged. Not only rejected. No sign of recovery of the market for private has the volume of �nancing been cut, but the cost of investment in infrastructure is yet in view, and this situ- borrowing has risen dramatically. The decline of credit ation—so harmful to critical sectors such as transporta- enhancers in the United States (themselves considered tion, energy, and telecommunications—is likely to drag responsible for part of the crisis, and only 30 percent on, especially in the least developed countries. of whom have maintained a rating that allows them to continue to practice their profession) has resulted in a The Search for Appropriate Responses in Speci�c substantial increase in the cost of money for local au- Contexts thorities, at the very moment when they need it the most. In general terms, the economic and �nancial crisis calls The credit enhancement crisis is so structural in nature into question the very nature of the relationship between that some experts have raised questions about the fu- governments and local authorities almost everywhere, ture of this activity. and there are many countries where the need for drastic reforms is evident. Outside the American continent, in Europe for example, where �nancing by specialised institutions or banks The local authorities of wealthy countries hit hardest is more widespread than market-based �nancing, the by the crisis—those of the United States in particular— conditions for borrowing faced by local authorities is have been forced to make drastic cuts in their capital relatively less compromised. However, most banks expenditure and operating costs. Most of them have run have had to restrict their lending activities, and some into problems with re�nancing. To ease the municipal have run into serious dif�culties. Dexia, the worldwide bond and credit enhancement crisis, various solutions leader among specialised institutions serving local are being considered. The �rst, tried and tested, would authorities—signi�cantly handicapped by the perfor- be to get the federal treasury to guarantee on a tempo- mance of an American credit enhancement af�liate and rary basis municipal bond issues under the special pro- weakened by unbridled promotion of exotic �nancial visions adopted for �ghting the effects of the crisis (for products—has technically been placed in bankruptcy. example, the Emergency Economic Stabilization Act of The Belgian and French governments, aware of the in- 2008 in the United States). A second solution—more in- stitution’s outstanding balances with their local authori- novative and perhaps offering the advantage of becom- ties, have ultimately decided to recapitalise Dexia and ing permanent—would be to create a Mutual Guarantee guarantee its borrowings. This rescue recapitalisation Fund, set up to insure new �xed-rate bonds, general in means Dexia (which has now temporarily reverted to nature or tied to income-generating services (revenue semi-public status) must refocus its original geographic bonds). 37 2009 ANNUAL REPORT Box 8: Towards a speci�c initiative for the cities of the LDCs LDCs are indeed affected by the crisis, especially by the services, donors, regional development banks, and wealthy drop in their export earnings, dwindling foreign investment, cities. The role of the latter would focus on institution and the decline of public-private partnerships. Cities in building, with which they are experienced, within the these countries already face a number of challenges: the framework of a multiyear commitment. However, given the need for basic investments is enormous, implementation wealth of these large cities and their power of signature, capacities are weak, and both solvency and access to they could also mobilise funding, especially through borrowing are very limited, if they exist at all. Management guarantees for bond issues of an ethical nature, similar to and governance problems exacerbate private investors’ lack the green bonds that were successfully issued by the World of appetite, and to some extent, the same can be said of Bank recently. This method of �nancing by borrowing in donors. the markets on the basis of future commitments is already practiced in the health sector by the International Finance In any case, donors, like governments, �nd themselves Facility for Immunization, the entity created for this purpose facing a number of urgent imperatives, such as food security by the GAVI Alliance. and health. As a result, many LDC cities see their economic, social, and environmental situation deteriorating from year This LDC Cities Initiative would not be designed to reconvey to year while their population continues to grow. They are all its funding in the form of grants to bene�ciary cities, but caught in a downward spiral and a poverty trap from which it rather to leverage and facilitate the collection of savings is very dif�cult to escape without external support. This dire as a way to promote local investment, particularly through situation has catalysed calls for the creation of a speci�c guarantee instruments. initiative to support these local authorities. Source: Thierry Paulais and Juliana Pigey, Adaptation and Mitigation: What Fi- nancing Is Available for Local Government Investments in Developing Countries? This initiative could take the form of a public-private Presentation at the Urban Research Symposium, 2009, Marseille. Available from partnership involving businesses that provide market www.citiesalliance.org. This guarantee instrument would be set in place at the most striking is probably the decision made by China national level, managed by local authorities themselves, to proceed in 2009 with a bond issue of US$30 billion, and not for pro�t. The support of the federal government issued by the government itself but earmarked solely for capitalisation of this fund would, however, be essen- for local authorities. These funds are supposed to be tial. In Europe, where �nancing through bank borrow- divided up locally in accordance with a distribution key ing is predominant and �nancial institutions have been through the Urban Development and Investment Corpo- heavily supported by governments, local authorities rations, which already function as the local authorities’ face comparatively fewer problems with �nancing or �nancial operator. re�nancing, although the volume is down and the cost of money has risen. The situation varies from one coun- This example could serve as a model for some of the try to the next, but in many cases governments have LDCs, especially those with export earnings, which taken �scal measures (for example, by speeding up the could redirect and leverage these earnings locally to process of paying back the share of value added tax support economic activity and employment. Most local owed to local authorities, or by increasing their share) or authorities in these countries pin their hopes on of�cial made special transfers to support the current �nances development assistance and emergency programs, but of local authorities. there are many priorities for development assistance, and the proportion of funds that can be earmarked for For their part, some emerging countries have devel- cities is likely to be limited. In view of the ongoing dete- oped speci�c and relatively innovative approaches to rioration of cities in some of the LDCs (particularly those support local authorities and local investment, consid- in a postwar situation, so-called fragile states, and so ered an indispensable element of any strategy to sup- forth), the matter of creating a special initiative for local port the economy and, in particular, employment. The authorities warrants attention (see Box No. 8). 38 CITIES ALLIANCE © Arne Hoel/The World Bank Reports From the Regions: South Asia The South Asia region offers the challenge of address- ing the urbanisation of poverty, while taking the opportu- nity of learning from the experiences of highly urbanised developing countries, particularly those in Latin Ameri- ca. from this perspective, the Cities Alliance South Asia Regional Of�ce is deepening and widening the engage- ment with its members to develop long term partner- ships with governments in the region for knowledge support to achieve sustainable urban development. Presently, the focus of its activities is in India, which is witnessing high economic growth and fast urbanisation, and is pushing for urban reforms and large infrastruc- ture investments to sustain the high growth rates. From the perspective of the objectives of the Cities Alliance Medium term Strategy, India offers an excellent oppor- tunity to provide knowledge and programmatic support to national, state and local governments in their initia- tives on urban reforms and city governance. India is witnessing an urban transition. Its urbanisation rate is expected to reach 50 percent over the next three decades, up from 28 percent in 2001, and the urban population is projected to grow to 473 million from 284 million in 2001. Further densi�cation is expected, with an increase in the number of cities from 35 in 2001 to 61 in 2021. Global experiences reveal a direct correla- tion between urbanisation levels and per capita gross domestic product, but are the Indian cities ready to ex- ploit the economic potential offered by the rapid urban growth? Most urban local bodies in India do not have the capacity to promote cities as engines of growth. Most have weak institutional capacity to plan spatial, social, and economic development; unstable revenue streams; and low capacity to mobilise �nances for infra- structure investments and to plan and implement infra- structure projects. Recognising the need to strengthen the municipalities and improve urban infrastructure, the Government of India (GoI) launched the Jawaharlal Nehru National Ur- ban Renewal Mission (JNNURM) in 2005 to encourage urban reforms and fast-track planned development in the 65 mission cities. JNNURM has two submissions: Mumbai, India: Washing clothes in outflow pipe. © Mark Edwards / Still Pictures 39 2009 ANNUAL REPORT Urban Infrastructure and Governance (UIG) and Basic At the national level, a partnership agreement is pro- Services to the Urban Poor (BSUP). These programmes posed with MoHUPA under the BSUP component to are being implemented by Ministries of Urban Devel- give the ministry access to global good practices on opment (MoUD) and Housing and Urban Poverty Alle- key policy issues relating to urban poverty. Cities Alli- viation (MoHUPA), respectively. Cities Alliance pipeline ance knowledge support is also proposed for the Peer activities in India are to support the two Mission compo- Experience and Reflective Learning (PEARL) network, nents, at the national, state and city levels. launched by MoUD under JNNURM, to provide knowl- edge support to the mission cities for implementation Figure 2: Decadenal population growth in India of urban infrastructure projects, urban reforms, and city governance. Support from the Cities Alliance, UN- 50.0 HABITAT, and the World Bank has also been proposed 40.0 to MoUD for preparing the India State of Cities Report. The report would provide inputs for the Twelfth Five-Year 30.0 Plan and JNNURM Phase II. 20.0 10.0 The Cities Alliance also proposes to dovetail its support at national and city levels to achieve policy action. Cities 0.0 1951-61 1961-71 1971-81 1981-91 1991-2001 Alliance support was earlier provided to MoUD, in part- nership with the Water and Sanitation Program – South Urban Population Growth Rate% Asia (WSP-SA), to scale up community-level projects to National Population Growth Rate% provide sanitation facilities to the urban poor. The efforts Source: Census of India, 2003 Train station in Mumbai, India. © Simone D. McCourtie/The World Bank 40 CITIES ALLIANCE culminated in the formulation of the National Urban San- At the city level, Cities Alliance support is being pro- itation Policy. Under the policy, GoI has recommended posed to the Municipal Corporation of Agra for the prep- formulation of state strategies and city plans for univer- aration of a reform-linked citywide slum upgrading plan sal access to sanitation facilities in urban areas. Within in an inclusive and integrated manner. This will facilitate this framework, Cities Alliance support is proposed to urban poverty reduction and sector reforms that would coordinate the efforts at national, state, and city levels contribute to slum upgrading on a citywide basis. It will as well as capacity building of state and city of�cials for also strengthen local institutions and their capacities to preparation of their strategies and plans. design and implement participatory slum upgrading projects. Under JNNURM and the recently announced Rajiv Awas Yojana (RAY), Cities Alliance support is being proposed The Regional Of�ce is supporting MoHUPA in develop- to support a few select cities to develop citywide slum ment and dissemination of knowledge products for in- upgrading plans as model plans under RAY, and these stitutional strengthening at state and local levels. In the would guide city governments on the key components perspective of RAY and slum upgrading efforts across of the Plan, and methodology and process of prepar- the country and at the request of MoHUPA, Cities Alli- ing such multi-stakeholder driven plans. The city plans ance supported the translation and printing of a Hindi would also incorporate the lessons from good global version of “Quick Guides for Policy Makers: Housing the practices such as slum upgrading programmes being Poor in Asian Cities�.6 implemented in Brazil. At the state level, Cities Alliance support is also being proposed to the governments of Madhya Pradesh and Orissa. The Government of Madhya Pradesh has taken the initiative of supporting preparation of City Develop- ment Plans for nine large cities and 92 secondary towns in the state. In view of the limited capacity of the cities to lead the process and to control the quality of the plans to be prepared by facilitating organisations, Cities Al- liance support is being proposed to the state govern- ment to help build the capacity of Urban Local Bodies (ULBs) through a handholding facility. In Orissa, Cities Alliance support is being proposed to the state govern- ment for the preparation of an urban poverty reduction strategy, based on city-level plans for select ULBs. This is in addition to support for the formulation of a �nancing strategy for urban infrastructure in the state, focusing on raising revenues from own municipal sources. Potential sources include property taxes and innovative The Savda Ghevra community on the outskirts of Delhi. © Cities land-based taxes and levies, ef�cient use of state de- Alliance volution, more effective tapping and strategic utilisation of central grants under ongoing programmes such as JNNURM, using local revenue streams to leverage do- mestic capital, and support from international develop- ment agencies. 6 The English versions of the “Quick Guides for Policy Makers: Housing the Poor in Asian Cities� was produced in partnership with the ACHR, UNESCAP and UN- HABITAT. 41 2009 ANNUAL REPORT Reports from the Regions: Southern Africa Although Africa is the least urbanised continent, it is experiencing the highest rates of urbanisation in the world and its cities rank amongst the poorest across the globe. Local and national governments in Africa are increasingly acknowledging that cities present the loci of opportunity for development and participation in the global economy. Since 1999, a range of Cities Alliance support interventions have emerged in the Southern and African region. These interventions have promoted the City Develop- ment Strategy (CDS) philosophy; informal settlement upgrading; urban renewal; local government transfor- mation and the exchange of best practice and knowl- edge dissemination. In the process, the interventions have forged greater political commitment and buy-in for urban programmes and raised the pro�le of the urban agenda at a national level, leveraged local �nancial re- sources and begun to unleash potential latent in many cities in the region. Over the past years, the region has demonstrated, of- ten in innovative ways, its commitment to urban poverty reduction and development through a range of Cities Alliance–supported interventions at both national and city scales. Apart from demonstrating innovation, these activities also show adaptation of best practice to local conditions. There have been a series of regional �rsts which are outlined on the next page: A woman walks through the street of an African slum with a child on her back. © Alex Ricardo Jimenez/Cities Alliance 42 CITIES ALLIANCE Summary of Current Grant Activities • Tshwane Comprehensive Sustainable Human Settlement Strategy (TCSHSS) – Tshwane is the �rst city to develop a citywide strategy for creating sustain- able human settlements at scale. Tshwane will also be Box 9: A Snapshot of Regional Innovation the �rst in South Africa to apply this unique and ground- breaking methodology in an attempt to restructure its With Cities Alliance support, the Southern and Eastern urban form and address the spatial legacy of apartheid. Africa region is credited with a number of “�rsts�: By consolidating sector plans, the city of Tshwane will have a foundation to respond to the needs of informal • Recognition for the urban sector is increasing at settlement communities in the form of the Tshwane Sus- national and city levels. tainable Human Settlement Strategy. The �rst phase of the grant focused on the development a citywide com- • Successful restructuring of Johannesburg, prehensive sustainable human settlement strategy. The Africa’s �rst truly global city for world-class service delivery. TSCHSS includes four aspects: i) a de�nition of what is meant by sustainable human settlements; ii) a focused • The formation of the South African Cities Network strategy, tailor-made for the City of Tshwane Metropoli- (SACN) provides a learning platform for nine tan Municipality; iii) an application of the strategy in a South African cities and promotes winning proposed flagship project, and iv), recommendations solutions through communities-in-practice. for institutionalising the strategy beyond the immediate publication of the document itself. In its second phase • Africa’s �rst Global City-Region is located in the Tshwane Sustainable Human Settlement project in- Gauteng Province, South Africa and incorporates volves two main activities: i) integration of the Sustain- the conurbation of Johannesburg, Ekurhuleni and able Human Settlement methodology into Tshwane’s Tshwane. The idea is to promote greater internal mainstream planning and implementation practices, cooperation for improved external competitiveness to enhance social and economic development in and ii) packaging of a major Sustainable Human Settle- the province. ment activity spine project. • The �rst twinning of two of Africa’s cities has seen • National Upgrading Support Program (NUSP) – the formation of the Johannesburg-Addis Ababa To support the National Department of Housing (NDoH) Partnership which seeks to promote practical to design the implementation plan for the “Breaking assistance largely as a result of the success of New Ground� housing policy and provide a practical Johannesburg’s restructuring experience. plan for the design and multi-year roll out for the NUSP. Outcomes of the pilot project assessment were pre- There has been a major shift in South Africa from sented at a national workshop to national and provincial housing delivery focused on quantitative delivery to a housing of�cials. The workshop con�rmed the need for more holistic approach that integrates livelihoods with the location of people’s homes and a focus on quality a national upgrading support programme as well as un- by delivering sustainable human settlements. The derscored the need for a national housing practitioners’ national housing subsidy can now be used for in-situ forum which was launched by the newly created De- informal settlement upgrading. partment of Human Settlements in October 2009. The policy review concluded that the current “Breaking New South Africa. © Cities Alliance Ground� policy on informal settlement upgrade certain- ly reflects international best practice. 43 2009 ANNUAL REPORT • Upgrading for Growth (U4G) - Ekurhuleni Met- will enable Ekurhuleni Metropolitan Municipality to test ropolitan Municipality.–The objective of Upgrading new approaches to informal settlement upgrading and for Growth is to harness the upgrading process as the provide evidence-based methodologies for ensuring driver for sustainable development – at the household that housing delivery contributes to the development of level – through macro/micro linkages to the existing la- sustainable communities. bor market and investment in growth opportunities. The last twelve months has seen the successful comple- • Supporting the design of a CDS-based system tion of extensive consultations, technical studies and of local government in Swaziland – Section 219 of design of a high level upgrading programme plan and the Swaziland Constitution urges that government be business plans for three priority settlements. A key out- brought “closer to the people so that the people at sub- put of the implementation phase is to produce imple- national or local community level progressively take mentable and costed business plans. It is intended that control of their own affairs and govern themselves�. The these plans and the lessons learned in the assignment CDS project supports the key government departments process will provide a replicable model for the roll-out in de�ning a system of local government that fully in- at scale of the U4G approach across the municipality. corporates the CDS principles of productivity, inclusion, Ward Committees have responded enthusiastically to sustainability, and good governance. Together the team the consultation process, and are keen to provide in- of governance, �nance, GIS, infrastructure, economists puts into individual project proposals and the overall and demographic experts has been performing a range development. The Department of Housing is conclud- of activities including extensive consultations with the ing signi�cant partnership agreements, crowding in in- Swazi Government, data collection and analysis. The vestment as well as developing innovative approaches team is preparing a consolidated report and spatial in the development of the business plans. These in- viewer to reflect alternative local government models. clude establishing partnerships to improve energy ef- The models will be peer reviewed before being pre- �ciency, improving layouts and densities, supporting sented for discussion to the Government of Swaziland communal food production, focusing on business train- in early 2010. ing, particularly amongst women’s groups, and promot- ing micro-lending. It is anticipated that these activities Centre of Mbabane, the main city and capital of Swaziland. A bus station and a shopping centre are in the middle of town. © Ron Giling/Still Pictures 44 CITIES ALLIANCE Reports from the Regions: East Africa Increasingly, the Cities Alliance is focusing its urban poverty-reduction activities in Sub-Saharan Africa, of- fering support to improve the living conditions of the urban poor. This report presents the highlights of Cities Alliance activities in Ethiopia and Uganda. Ethiopia The establishment of the Ethiopian Cities Network is an ongoing project implemented by German Technical Cooperation (GTZ) in partnership with the Ministry of Works and Urban Development. The Network, of�cial- ly launched in October 2009, will address information sharing and exchange as well as co-ordination among cities and development actors. It will also serve as a link to the global network of cities. The launch event brought together cities through city-to-city interactive programmes; presented an exhibit of innovations for cities, such as developing city-university partnerships; and conducted photo exhibitions and a best practices award event. The occasion was also be marked by the publication of the �rst cities catalogue as part of a city marketing initiative. In the pipeline is an integrated urban database. The ma- jor objective is to develop a national strategy for collect- ing, organising, and making available up-to-date and accurate information on urban development at the city, regional, and federal government levels. The National Ministry of Works and Urban Development, Bureau of Policy Research and Planning, submitted the project proposal to the Secretariat for funding consideration. The project to prepare the Ethiopian State of Cities Re- port will be led locally by the Ministry of Works and Ur- ban Development, and implemented by the Ethiopian Civil Service College in collaboration with the African Centre for Cities and African Planning Schools Associa- tion. A cobble stone promotion held in Addis Ababa to mark Ethiopian Cities Day, 23 October, 2009. © Tewodros Tigabu/Cities Alliance 45 2009 ANNUAL REPORT Under discussion are the following activities: effective management of the expected urban growth. The Strategic Urban Development Plan will include a • Pro-Poor Inner City Redevelopment Strategy for national vision and provide speci�c actionable direc- Addis Ababa; tions for the urban sector. • Bishoftu City Development Strategy (CDS); • Evaluation and Reformulation project; The Land, Services, and Citizenship for the Urban Poor • Nekemte Land Information System; project is being coordinated by the Ministry of Lands, • CDS to Small and Emerging Towns in Tigray Housing, and Urban Development and will be imple- Regional State. mented in partnership with development partners, with local governments and communities assuming the Uganda greater role. The objective is to support domestic ur- ban initiatives of the government of Uganda to upgrade The National Urban Policy and National Urban Devel- slums and proactively deal with urban growth. The proj- opment Strategic Plan project, which is being spear- ect is currently under development with the support of headed by the Ministry of Lands, Housing, and Urban the Cities Alliance Slum Upgrading Team and has been Development in partnership with the Ministry of Local given more in-depth treatment in the Land Services and Governments of Uganda, supports an inclusive and Citizenship section of this report. participatory process to formulate a national urban pol- icy and a Strategic Urban Development Plan for 2010– 25. This will provide the necessary framework for guid- ing and managing the urbanisation process to ensure Marantochloa leaves are widely traded by women for use in wrapping cooked food at roadside stalls. They are harvested from the rainforest understorey, then transported by truck to large local markets.. © Tony Cunningham / Still Pictures 46 CITIES ALLIANCE Reports from the Regions: Brazil The Cities Alliance has had a presence in Brazil since 2001, working very closely with city and national policy makers on the design and implementation of important urban planning and knowledge dissemination tools as well as on social housing and slum upgrading. This partnership was further strengthened after 2003, when the Ministry of Cities was created and Brazil formally joined the Cities Alliance, and through CAIXA, Brazil’s housing and urban development bank. The partnership became a fundamental element in the strengthening of national slum upgrading approaches and pro-poor housing policies all over the country. (left to right) Mariana Jose, CA; Andre Herzog, WBI; Rohit Mathur, Ministry of Finance, GoI; Harish Chandra, Planning Commission, GoI; P. K. Mohanty, Ministry of Housing and Urban Poverty Alleviation, GoI; Ines Magalhaes, National Housing Secretary, Ministry of Cities; Sitaram Kunte, Housing Department, Government of Maharashtra; S. Aparna, Commissioner, Municipal Corporation of Surat; R. K. Vats, Ministry of Housing and Urban Poverty Alleviation, GoI; Sarada Muraleedharan, LSG Department, Government of Kerala; and Ajay Suri, CA. The Alliance has a regional of�ce in São Paulo, which is �nanced by the Italian government. In addition to work- ing closely with the federal government, Cities Alliance partnership activities at the city and state government levels, such as the municipality of São Paulo and the state of Bahia, have become interesting laboratories showcasing good practice models of scaling up plan- ning and urban development through national policies and programmes. Panoramic view of São Paulo, Brazil, from the highest point in the city, Parque Estadual do Jaragua. © Sean Sprague/Still Pictures 47 2009 ANNUAL REPORT Alliance partnerships have recently been initiated with In the past year, the Alliance of�ce in Brazil facilitated the municipalities of Diadema and Salvador. Both aim visits to the country by international delegations from at covering gaps in national slum upgrading actions in Morocco, South Africa, India, and Mozambique. These Brazil: the regulation of special social interest zones and visits enhanced knowledge sharing between Brazil and the operation of municipal housing funds. Metropolitan each of these countries, with special focus on national management is the subject of the ongoing partnership and local policies for slum upgrading programmes. with the state of Minas Gerais, and the city development International missions and knowledge-exchange pro- strategy for the metropolitan region of Belo Horizonte is grammes are a very effective way of creating awareness focused on reducing poverty. and improving global knowledge around urban poverty, since they enable practitioners to see �rsthand what is In addition to the dialogue with central and local govern- happening on the ground and to better understand the ments, the Cities Alliance has provided innovative sup- context and background of government policies and port for tripartite cooperation on slum upgrading. The programmes. During such exchanges, both visitors and cooperation between the governments of Mozambique, host have an opportunity to reflect on their respective Brazil, and Italy is generating positive interaction in all policies, potentials, and bottlenecks, identifying areas spheres among the governments of the three countries. for improvement and the development of new policies. Moreover, together with the World Bank Institute, the Cit- ies Alliance is contributing to the dialogue among the Other highlights for 2009 include the development of governments of India, Brazil, and South Africa within the a distance learning course, support for the National framework of India-Brazil-South Africa (IBSA), a trilateral Housing Plan, and preparation of the Brazil – State of free trade agreement, in the area of human settlements. the Cities Report. This effort is creating important opportunities for learn- ing and improving policies. Giorgio Romano Schutte, former Cities Alliance Regional Advisor for Brazil explaining all about the Cities Alliance to delegation visitors. © Cities Alliance 48 CITIES ALLIANCE In partnership with the federal government and the objective is to collect lessons that can be used to im- University of São Paulo, the Cities Alliance supported prove the design and management of slum upgrading the design and implementation of a distance learning programmes and policies. course, ‘Integrated Slum Upgrading Actions’, to re- inforce the institutional capacity of local authorities to These are some of the ways the Cities Alliance has been scale up their projects in this area. This activity was criti- working in Brazil through partnerships at the three levels cal to improving the technical capacity of municipalities of government to help strengthen pro-poor urban poli- in the northeastern region of the country in a context cies in the country and create opportunities for interna- of robust investments for slum upgrading through the tional knowledge sharing and dissemination of lessons Growth Acceleration Program (PAC). Based on this suc- learned. cessful experience, the Alliance is now supporting the federal government’s efforts to scale up the offering to a Cities Alliance Brazil Publications for 2009 broader range of municipalities in Brazil, as well as con- • Social Housing in São Paulo: Challenges and tributing to the World Bank Institute for the preparation New Management Tools of a global initiative. The publication highlights the second phase of the part- nership between the Cities Alliance and the São Paulo The Cities Alliance also played an important role in sup- Municipal Housing Secretariat (SEHAB), which is re- porting the �rst National Housing Plan, with goals and sponsible for housing policy in the city. The goal during targets for a 16-year programme centred on meeting this phase was to establish a set of management tools the housing needs of a selected target population in that would facilitate strategic, systematic planning for the lowest income brackets and the emerging middle social housing in the municipality of São Paulo. One of class. The National Housing Plan was the �rst step for a the most signi�cant results was the creation of HABISP, new subsidies model implemented through the launch an innovative information system that has become a of the 1 million houses programme, Minha Casa, Minha valuable tool for urban development in São Paulo. Vida, a benchmark for the Brazilian housing policy. The programme signi�cantly scales up the level of individual • Alagados – The Story of Integrated Slum Up- subsidies and availability of funding for subsidies and grading in Salvador (Bahia), Brazil �nance. This publication tells the story of the slum upgrading project supported by the Cities Alliance and the state Brazil – State of the Cities Report will provide an analy- government of Bahia (Brazil) from 2001 to 2006, and sis of the living conditions of a sample of 600 Brazil- captures the lessons learned. The Bahia Project was ian municipalities out of a total of more than 5,500. The one of the �rst activities undertaken by the Cities Alli- preparation of the report is being closely coordinated ance following its formation in 1999. A broad coalition by a Steering Committee composed of the Brazilian na- of partners were mobilised in the area of Alagados, a tional associations of cities, CAIXA, the Brazilian Min- well-known slum in the city of Salvador. The coalition in- istry of Cities, the World Bank, UN-HABITAT, and the cluded the state of Bahia, the Cities Alliance, the World Inter-American Development Bank (IADB). The project Bank, the government of Italy, AVSI (an international execution is being coordinated by the Polis Institute, development nongovernmental organisation), and more based in São Paulo, and other urban research and sup- than 70 local community-based associations. To make port institutions have been invited to join the initiative. a real difference in the lives of the slum dwellers, a par- ticipatory and integrated approach was used. Through Regarding knowledge production, in partnership with this project, the process of scaling up was successfully the IADB and the Brazilian Ministry of Cities and CAIXA set in motion. the Cities Alliance is supporting a study of slum upgrad- ing programmes in precarious settlements in Brazil. The 49 2009 ANNUAL REPORT CITIES ALLIANCE MEMBERS’ REPORTS A giant pipe runs through the middle of the slum of Bandra, the largest in Asia. © Catherine Karnow/CORBIS 51 2009 ANNUAL REPORT CITIES ALLIANCE 52 AGENCE FRANÇAISE DE DÉVELOPPEMENT AGENCE FRANÇAISE DE DÉVELOPPEMENT www.afd.fr Since its creation in 2007, the Local Authorities and ies to reduce their carbon footprint and limit their green- Urban Development (LAUD) Division of the (AFD) has house gas emissions. AFD also helps to �nance pub- been actively working with both overseas French and lic transport systems, energy ef�ciency programmes, foreign countries, putting great emphasis on strength- waste management systems, and urban biodiversity ening local autonomy and placing local authorities at conservation; it also encourages cities to integrate en- the heart of the decision-making processes. Between vironmental concerns into general urban planning poli- 2007 and 2008, AFD tripled its �nancial commitments cies at the earliest stages. towards local authorities and the wider urban develop- ment sector, with total expenditure reaching the €500 AFD’s strategic thrust focused on building the capacity million mark. Of this total, which included a mix of loans of local authorities is fully compliant with Cities Alliance and grants, €315 million were directed towards foreign efforts to promote client execution and local ownership. countries: less developed countries, emerging coun- In addition, AFD pays particular attention to working in tries, and countries with intermediary levels of revenue. close collaboration with other stakeholders at all stages, namely, other donors, cities from the north through city- Within the growing context of decentralisation, AFD con- to-city cooperation frameworks, nongovernmental or- siders local authorities as essential political actors that ganisations, local associations, and civil society. need strengthening. Some of the urban projects carried out by the LAUD Division focused on increasing local autonomy by means of training, capacity building, and �nancing. For instance, within the projects it supports, AFD encourages local ownership by transferring project management to the local level as quickly as possible. The division also supports comprehensive, mid-to long- term visions of local authorities, essential to mastering future urban growth. AFD also pays particular attention to local development through interventions to improve the living conditions of the urban poor. These interventions include increasing the level of access of the urban poor to essential servic- es and public amenities and reducing exclusion of the urban poor from the rest of the population. To achieve these objectives, AFD allocates grants and soft loans either directly to local authorities or through existing na- tional structures. AFD adopts a comprehensive environmental approach to urban planning. By promoting compact urban growth and working against urban sprawl, AFD encourages cit- The Istanbul Underground. Photo courtesy: AFD Left: Cotonou, Benin: Heavy traf�c beside the Dantopka market, the largest in West Africa. © Henning Christoph/Das Fotoarchiv/Still Pictures 53 2009 ANNUAL REPORT AFD and Cities Alliance. AFD, as both a sponsor and a tem to the north and south, building tramway lines and co�nancer, is a stakeholder in several CDSs—including consolidating tramway-underground connections. It will those for Tripoli, Douala, Lomé, Dakar, and Cotonou– result in a major modi�cation of the metropolitan trans- and slum upgrading programmes—such as those in port network. Morocco and Senegal. In Cotonou, AFD has co�nanced the CDS and promoted the creation of a single gover- • AFD is currently �nancing a €5.5 million project of nance body to oversee both the CDS and the AFD-fund- social development and urban planning within the Bal- ed Greater Cotonou Urban Project. AFD plays an active bala area of Djibouti City. In partnership with the Devel- role in CDS monitoring and will base future investment opment Bank of Southern Africa, AFD, along with other programming on its results. donors, is also �nancing a €100 million project that aims at �nancing infrastructure and essential services Highlights of the year under review. AFD continues to in municipalities with low levels of capacity through a �nance overseas municipalities and progressive urban re�nancing credit facility. planning projects. • In Senegal, AFD helped modest low-income fami- • AFD allocated a €120 million direct loan to the Met- lies gain access to mortgages to buy a home or a plot ropolitan Municipality of Istanbul to support the imple- of land. The €15 million intermediation funding scheme mentation of its urban public transport programme. The was disbursed through Senegal Social Housing Bank. project objective is to extend the underground rail sys- Overview of slum in Durban, South Africa. Courtesy: AFD Right: Houses of urban poor built along Basac river bank in Phnom Penh. Courtesy: AusAID 54 CITIES ALLIANCE AUSTRALIAN AGENCY FOR INTERNATIONAL DEVELOPMENT (AUSAID) 2009 ANNUAL REPORT 55 AUSTRALIAN AGENCY FOR INTERNATIONAL DEVELOPMENT (AUSAID) www.ausaid.gov.au/ The Australian Agency for International Development Asia, East Asia, and the Paci�c through two single- (AusAID) works to reduce urban poverty and support donor trust funds with the World Bank. The overarch- urban development in its partner countries through bi- ing goal of these trust funds is to contribute to reduced lateral programs and assistance to multilateral partner- poverty and sustainable development by accelerating ships. economic growth through improved infrastructure. Sev- eral urban sector activities are supported through these Since joining the Cities Alliance in 2008, Australia has partnerships, including urban infrastructure �nance pol- increased its focus on supporting urban development icy development in Vietnam and across the East Asia by forming partnerships that are speci�cally designed Region; development of environmentally and economi- to promote sustainability within city environments. These organisations include the Clinton Foundation’s Clinton Climate Initiative, the World Bank, and Austra- lia’s national science agency, the Commonwealth Sci- enti�c and Industrial Research Organisation (CSIRO). Partnership activities. The partnership with the Clinton Climate Initiative supports sustainable urban develop- ment in Southeast Asia by assisting cities to reduce their energy consumption and greenhouse gas emis- sions. The initial focus of this partnership has been on solid waste management activities in Vietnam and In- donesia, and assistance to enable practical measures to reduce and prevent greenhouse gas emissions from municipal solid waste. As part of a �ve-year strategic partnership between AusAID and the CSIRO, which commenced in the sec- ond half of 2008, Australia is supporting environmental research for development, focusing on water and sani- tation, climate change adaptation, and sustainable cit- ies. The sustainable cities component has focused on a number of areas, including identifying urbanisation drivers, impacts, and trends; assessing the sustain- ability of selected cities; and identifying investment priorities to promote sustainability in Asian cities. Many AusAID urban sector activities are supported through infrastructure and climate change programme. AusAID supports urban infrastructure activities in South Woman carrying baskets on bicycle in Hanoi, Vietnam. © Sean Sprague/Still Pictures 56 CITIES ALLIANCE cally sustainable urban frameworks across the East Asia Region; knowledge sharing in urban issues across the East Asia Region; urban upgrading in Papua New Guinea, Vietnam, and Indonesia; disaster management in urban planning across the East Asia Region; poverty analysis and policy response in the Philippines; and city plans and strategies in Indonesia. Pacific Land Programme. AusAID has also taken an active role in supporting urban development in the Pa- ci�c. During 2008–09, AusAID commenced implemen- tation of the Paci�c Land Programme, a $A54 million ini- tiative over four years, which aims to protect customary land rights, promote economic and social development, and reduce the potential for land-related conflict. The urban component of the programme aims to improve the standard of planning and governance of Paci�c ur- ban areas to enable improvements in the living condi- tions of Paci�c urban dwellers. This means confronting issues such as limited access to land; poor housing; inadequate basic infrastructure; increasing hardship for vulnerable groups such as youth, women, and people with disabilities; and increasing numbers of informal settlements. Rather than attempt to reverse or prevent rural-urban migration, which has failed in all parts of the world where it has been tried, this programme seeks to take advantage of the positive impacts of urbanisa- tion when helping to meet the challenges faced in the Paci�c. Contribution to Cities Alliance coherence of effort. Australia is also seeking to achieve coherence by work- ing with and assisting other major donors that are ac- tively supporting urban development in the Paci�c, such as the government of New Zealand, which has been working with the government of Kiribati on its Town Development Strategies for its three urban areas. Aus- tralia supports this work and has sponsored the recent application the government of Kiribati has made to the Cities Alliance in association with these strategies. Manila, Philippines. Photo courtesy: Asian Development Bank. 57 2009 ANNUAL REPORT BRAZIL 58 CITIES ALLIANCE BRAZIL www.cidades.gov.br The favelas. Brazil’s slums, the favelas, impress by their Developing a National Housing Plan necessitated a extent and presence throughout the country’s cities: concerted effort of governmental bodies, social move- more than 12 million Brazilians are slum dwellers. As in ments, and other representative of civil society. This so many developing countries, rapid urbanisation ac- process enabled the generation and dissemination of companied by inadequate job opportunities and preda- knowledge at the national level. It also intensi�ed local tory land markets led to a huge urban poor population in and regional planning initiatives that had already been Brazil. Unable to access formal markets, many of these launched as part of the Ministry of Cities’ nationwide urban poor have no other option than to squat. campaign encouraging cities to develop master plans under the City Statute. At least 1,170 local housing plans Since the legal framework of the City Statute (Estatuto are underway with �nancial support from the federal da Cidade) in 2001 and the establishment of the Min- government, and many more are under development.. istry of Cities (2003), the reduction of urban inequality Having a proper housing plan is a basic condition for a has gained priority at the national level. This is partly local government to access national funds and be inte- because the economic development model adopted by grated into the National Social Interest Housing System President Lula links growth to income distribution and (Sistema Nacional de Habitação de Interesse Social). social inclusion. The launch of the Growth Acceleration Programme (PAC) in 2007, with unprecedented invest- Housing as a way out of economic crisis. With up- ments of around $8.7 billion for slum upgrading through grading projects underway all over the country and with 2010, consolidated the concept of slum upgrading as a new focus on housing and urban challenges gener- part of the overall housing solution in Brazil. ated by the National Housing Plan, the federal govern- ment formulated a positive strategy to address the glob- Long-term planning. Throughout 2007 and 2008, the al economic crisis: a $17 billion programme of 1 million Ministry of Cities and the National Cities Council—with houses called “My House, My Life�. The programme is support from the Cities Alliance—discussed a long- based on the idea that expanding access to housing term planning instrument for the housing sector: the �nance and infrastructure leads to employment creation National Housing Plan (Plano Nacional de Habitação, and growing business opportunities. or PlanHab). One of the plan’s main goals over the next 15 years is to enable affordable housing for the entire To achieve that goal, the Brazilian government will guar- population, based on a 6.2 million-unit housing de�cit antee subsidies for low-income families and lower in- and the future need for 27 million units resulting from terest rates for the emerging middle class. It will also demographic growth. The plan has developed strate- create a Guarantee Fund that will cover the costs of 36 gies for the following: months of payments for families that face a loss of in- come as well as enabling them to re�nance mortgage • Subsidies and �nancing policies/models; contracts. The main goal is to build an environment of • Institutional development; trust in the economy and stimulate the development of • Productive sector; formal housing markets with government subsidies for • Urban land for housing. low-income and emerging middle-class families. The new programme also reduces taxation for housing con- struction and establishes parameters for the use of sus- Panoramic view of the São Paulo city centre. © Ron Giling/Still Pictures 59 2009 ANNUAL REPORT tainable building materials, environmental licenses, and tenure regularisation procedures. Consolidation of investments and priorities. The main challenge for Brazilian policy makers is to main- tain the current high level of investment in housing and infrastructure and the targeting of subsidies for the low- est income brackets. Although regulation of urban land markets has been a focus of Brazil’s urban reform policy since the establishment of the City Statute, providing land for low-income housing still remains a major chal- lenge. Contributions to the coherence of efforts of the Cit- ies Alliance. The support of the Cities Alliance for the National Housing Plan and other projects—such as a distance learning course for slum upgrading—was cru- cial to making the inclusion and consolidation of slum upgrading and housing policies for the poor a priority in the government agenda, thus paving the way for a wider, long-term urban development strategy based on social inclusion. Cities Alliance support has also helped increase the federal government’s capacity to stimulate and scale up local policies and programmes in order to leverage investments and other forms of local efforts that enable housing and upgrading projects. In addition, cooperation is bene�cial to the consolida- tion of knowledge and the dissemination of innovative, successful practices. It also helps strengthen the insti- tutional framework for housing through a continuous knowledge exchange process among different coun- tries that face similar challenges on the housing �eld. Finally, the development of a national and international network of actors and practitioners in the urban and housing �elds was crucial to the consolidation and expansion of technical knowledge and to political ap- proaches aiming to guarantee affordable housing for the poor. Above: The business centre of São Paulo. © Ron Giling/Still Pictures Middle: Housing units in Brazil. Bottom: Brazil: A community organised collective construction with �nanced funds. (Credito Solidario Programme) Right: Plaza de Armas in Santiago de Chile. © Ron Giling/Still Pictures 60 CITIES ALLIANCE REPUBLIC OF CHILE 61 2009 ANNUAL REPORT REPUBLIC OF CHILE www.minvu.cl Neighbourhoods Recovery Programme product of consultations, discussions, referenda, as- semblies, and so forth. The “I Love My Neighbourhood Programme,� framed within the New Urban Housing Policy, addresses so- A neighbour says: cial and urban problems on a neighbourhood scale People were incredulous, tired of being promised through participation, coproduction, and comanage- things that were not acomplished. But little by little, ment throughout the recovery process. The programme the programme has been materialising and I see that was introduced into 200 neighbourhoods three years people feel calmer, more integrated. This is a neigh- ago and now aims to become a permanent policy of the bourhood of working people, and it was becoming a Ministry of Housing and Urban Development. ghetto. The programme has taken us out of that and has allowed us to bring our people back. It’s like recov- The diversity of the neighborhood as a public policy ering the pride of living here. opportunity. We have generated a flexible model that understands the neighbourhood as living spaces where (CVD Barrio San Hernán, O’Higgins Region). residents have different access to goods and services, have particular values and interests in the territory, and The transforming potential of empowered commu- have their own dreams and expectations of the neigh- nities. We work with the organisational capital of the bourhood. This diversity also means assuming there neighbourhoods, their installed capacities, the opportu- will be conflict on the uses and expectations of public nities they offer, and their history as a platform for a new spaces. stage of development. Example: Example: Neighbours in Villa Santa Teresa in La Florida de- The neighbours of the “30 de marzo� in San Antonio termined that one of the main problems was young had to eradicate a squat to build their field. The neigh- people gathering on street corners to smoke and bours decided to negotiate with the people living in the drink. The neighbours felt that public space should squat and reached an agreement that allowed them to be devoted to help the youth use their free time in a develop their field and meet the needs of the people in healthy way. The neighbours, mainly elderly, sup- the squat. A neighbourhood organisation led an open ported the construction of a skate park, something and informed dialogue that recognised the shared the elderly residents would not use. They thought of history of the neighbours and the squatters, resulting in their neighbourhood as a collective. this transforming project. Rebuilding trust between the state and citizens. Multidimensionality in the diagnosis and response. Many urban problems—violence and inequality, for ex- On national, regional, and local levels, we favoured ample—are symptoms of the disintegration of joint proj- the generation of joint work between various actors. ects and the breakdown of trust between the state and The focus is not on achieving a diagnosis shared by its citizens. Therefore, we shifted from individual dreams all, but on the need to work together with shared meth- to the construction of collective projects based on par- odologies. Instead of offering a standardised solution, ticipatory processes. Decisions regarding the improve- the programme changed to approaches that reflect the ment of the neighbourhood and its environment are the particularities of each territory, allowing better results in impact and coverage. 62 CITIES ALLIANCE Outcomes of the Programme Projects that reflect the diversity of the territory. More than 1,400 projects are operating. We have built green Concrete results. A satisfaction survey of the residents areas and pedestrian walkways with excellent lighting was distributed in 20 districts within seven regions. Of that have improved the perception neighbours have of the 3,400 respondents, more than half said the “I Love their own neighbourhood, creating greater use, mainte- My Neighbourhood Programme� has helped, especially nance, and appropriation of public spaces. in the perception of improvement in neighbourhood image and identity, quality and use of public spaces, Empowerment of the neighbours. Recently, three resi- neighbourhood participation and coexistence, and dents of our neighbouring districts represented Chile at quality of life. the Congress Ciudad Viva of Ecuador, a key conference on urban issues. These neighbours presented to a de- A neighbour says: manding audience the best experiences of the recovery The integration of all the neighbors had a radical of neighbourhoods. favourable change, because now we are all united, struggling, paddling for the same side. The warmth, affection, and all other things are being seen in all vari- ous activities. (CVD, Balmaceda Neighbourhood, Antofagasta Region) Visiting the neighbourhood works. Photo courtesy: MINVU 63 2009 ANNUAL REPORT CITIES ALLIANCE CITIES ALLIANCE 64 64 GERMAN FEDERAL MINISTRY FOR ECONOMIC COOPERATION AND DEVELOPMENT GERMAN FEDERAL MINISTRY FOR ECONOMIC COOPERATION AND DEVELOPMENT The past 10 years have witnessed a paradigm shift in Apart from the bilateral implementation of urban pro- perceptions of cities and urban development. There is grammes, disseminating good practices and fostering now talk of an “urban millennium�, with the majority of the dialogue on urbanisation have become a crucial the world’s population now residing in urban agglomer- part of the collaboration with partners of the Cities Al- ations. The old debate on preventing rural-urban migra- liance. On this note, the BMZ supported the Cities Al- tion has become obsolete, as demographic processes liance in hosting an international expert forum in Berlin are now seen as the major determinants for urban in July 2009 to identify new trends, strategies, and pri- growth. Cities now embody the social, economic, and orities confronting cities in developing countries, and to environmental challenges of modern civilisation as well thus examine the changing context within which the Cit- as being the valued repositories of longer-term develop- ies Alliance works. To broaden the discussion and raise ment sustainability. The potential bene�ts of urbanisa- the awareness of the importance of the urban agenda tion far outweigh the disadvantages; the challenge is in in Germany, the GTZ on behalf of BMZ, subsequently learning how to exploit its possibilities. Unleashing the invited the international experts and German politicians, potential of urban growth has been and will therefore academics, and practitioners to a discussion on new still be the goal of the German Development Coopera- urban challenges and opportunities. tion as a proactive partner with the Cities Alliance for implementing and disseminating successful approach- To further raise public attention for the issue of urban es in this regard. poverty, international conferences—for example, the World Urban Forum (WUF) and the Urban Research Implementation and dissemination. The German De- Symposium—play a crucial role for a dialogue between velopment Cooperation has been consolidating its ur- development partners. Against this background, Ger- ban portfolio primarily in Asia, the Middle East, and the many was also represented at WUF 4 in Nanjing (Chi- southern and eastern Mediterranean region. These ur- na), where a pavilion in the exhibition area was used to ban programmes usually respond to crosscutting issues foster dialogue and exchange good practices around such as the promotion of democracy and civil society, �ve core themes: urban governance, cultural heritage water and sanitation, economic development, and the and slum upgrading, city and climate, social inclusion, environment. Together with our development partners, and �nancing urban development. Additionally, the Ger- we focus on two main approaches: (i) to improve urban, man Development Cooperation organised a networking poverty-oriented services by increasing local and na- event on the issue of �nancing urban infrastructure. tional management capacities; and (ii) to develop and to fund new facilities for �nancing urban infrastructure We are also encouraging our programme partners to and services. We further support cities in combating cli- proactively join in these multilateral dialogues through mate change as well as cultural heritage preservation the promotion of instruments provided by the Cities Al- and social inclusion in urban areas. To foster local self- liance, such as city development strategies or through government we support cities and local government as- the organisation of exchange networks. sociations at national, regional, and global levels. Cur- rently, around 215 urban programmes are implementing Thus Germany continues to support the Cities Develop- these approaches on behalf of the Federal Ministry for ment Initiative for Asia (CDIA), which was founded by Economic Cooperation and Development (BMZ). the Asian Development Bank and the BMZ in October Manila, Philippines: Slum dwellers on water pipeline with lock and meter. © Joerg Boethling/Still Pictures 65 2009 ANNUAL REPORT 2007. To contribute to the promotion of sustainable and equitable urban development, leading to improved en- vironmental and living conditions for all in Asian cities, this regional initiative is welcoming other partners and strengthening its relation to the Cities Alliance. Another example of networks and partnerships is the Participatory Development Programme in Cairo which welcomed more than 230 guests last year at the inter- national symposium, “Exchanging Global and Egyptian Experiences in Dealing with Informal Areas within the Wider Urban Management Context�. The main focus of the symposium was to exchange experiences in the �eld of scaling up strategies. Moreover, Germany is encouraging its development partners to make use of the support that the Cities Al- liance is providing. Since 1999, the German Develop- ment Cooperation has been promoting about 24 proj- ects of partner countries and cities implementing either a city development or upgrading strategy funded by the Cities Alliance. Outlook. Since the Cities Alliance was founded in Ber- lin, Germany has been and continues to be a reliable partner. We recognise the need for enhanced and inten- si�ed partnerships to make an impact on urban poverty. We acknowledge this principle in our global, regional, and local activities. Thus we remain committed to the strong partnership with the Cities Alliance and will con- tinue to support the organisation in strengthening the access of poor countries and cities to Cities Alliance cooperation and assisting the Cities Alliance in strategy and governance reforms. Additionally, Germany is fos- tering its partnerships with other networks, such as the City Development Initiative for Asia (CDIA) and ICLEI, which Germany supports in their important work in the �eld of cities and climate change. Against this back- ground, Germany will enhance its collaboration with the Cities Alliance and is looking forward to the next 10 years of a fruitful partnership. A neighbourhood in Alexandria, Egypt. © Andrea Haer/Cities Alliance Right: Bustling market of Antananarivo, Madagascar. © Martin Harvey/Peter Arnold Inc. 66 CITIES ALLIANCE I S T E D : INSTITUT DES SCIENCES ET DES TECHNIQUES DE L’EQUIPEMENT ET DE L’ENVIRONNEMENT POUR LE DÉVELOPPEMENT 2009 ANNUAL REPORT 67 ISTED: INSTITUT DES SCIENCES ET DES TECHNIQUES DE L’EQUIPEMENT ET DE L’ENVIRONNEMENT POUR LE DÉVELOPPEMENT www.isted.com/pole-ville/pole-ville-presentation.htm The Cities Department of the Institut des Sciences et Supporting the local governance in Priority Soli- des Techniques de l’Equipement et de l’Environnement darity Zone countries. Launched in July 2007 by the pour le Développement (ISTED) coordinates and under- French Ministry of Foreign and European Affairs, the takes activities to build the collective know-how of its Priority Solidarity Zone programme aims to strengthen partners in development, promote the exchange of ex- local governance and development in Africa and in perience among northern and southern countries, and some countries that are part of France’s Priority Solidar- support the international activities of its members. ity Zone. ISTED’s activities are most often implemented in coop- The programme emphasises three components that are eration with other public or private organisations—local, implemented by the following three organisations: national, or international—and focus on the following areas: • Supporting African actions, implemented by the Municipal Development Partnership; • Creating knowledge opportunities, such as • Supporting decentralisation policies and studies, thematic think tanks, and missions of sustainable development in western and central expertise; Africa, implemented by the United Cities and • Strengthening skills, such as training, research Local Governments of Africa; programmes, and seminars; • Supporting urban governance, implemented by • Facilitating networks and partnerships; ISTED. • Disseminating knowledge via conferences, publications, and similar vehicles. The theme of supporting urban governance is rein- forced through three types of activities: (i) supporting Emerging Cities, keys to understanding and acting. the planning of urban governance strategies (within ISTED launched the Chinese version of its publication this framework, ISTED leads a workshop that brings Emerging Cities at the fourth World Urban Forum (WUF together all concerned French stakeholders, including 4) in Nanjing, China, in November 2008. Attendees at researchers who have provided a general report on ur- the launch included Yves Dauge, senator for Indre-et- ban governance); (ii) helping to establish urban gover- Loire; Professor Zhou Jian, director of the Shanghai nance strategies in some developing countries; and (iii) Tongji Urban Planning and Design Institute; and Xavier improving the worldwide availability and dissemination Crépin, chief executive of�cer of ISTED. At WUF 4, the of information and publications related to urban gover- publication was disseminated at the French booth, and nance. the English version was available at the Cities Alliance booth. Publications connected with the Cities Alliance. A special English-language issue of Villes en développe- Numerous additional publications were also distributed ment magazine that focused on local economic devel- at an event held at the French booth that brought to- opment was produced with Cities Alliance in June 2008. gether the French Ministry for Energy, Ecology, Sustain- The issue was translated into both French and Spanish. able Development, and Spatial Planning; the Ministry of Foreign and European Affairs; and the Agence Fran- çaise de Développement. Zocalo Square, Mexico City. © Mark Edwards / Peter Arnold Inc. 68 CITIES ALLIANCE MINISTRY OF FOREIGN AND EUROPEAN AFFAIRS (MAEE) 2009 ANNUAL REPORT 69 MINISTRY OF FOREIGN AND EUROPEAN AFFAIRS (MAEE) www.diplomatie.gouv.fr Developing a policy vision for French aid in urban governance. In July 2007, the MAEE established an urban working group to spearhead a discussion on the issues and challenges posed by the magnitude of present-day urbanisation at the global level. This was undertaken in close collaboration with French actors providing urban assistance, urban researchers, and key �gures and experts in the North and South. The urban working group was cochaired by the MAEE and the senator for Indre-et-Loire, Yves Dauge, who is recognised for his commitment to urban issues in France and internationally. The Institut des Sciences et des Techniques de l’Equipement et de l’Environnement pour le Développement (ISTED) serves as the group’s secretariat. The working group initiative has facilitated greater French involvement in a dynamic process surrounding the concerns generated by urbanisation issues as well as emerging expectations in the areas of sustainable development, energy expenditure control, land use control, and combating climate change. The initiative seeks to link these global issues to improved living con- Mumbai: Elderly woman in a slum in Bhandra with new high rise ditions and poverty reduction. To this end, and with a buildings in the background.© Julio Etchart/ Peter Arnold Inc. shared assessment of urbanisation issues as a starting point, the working group produced a document on stra- France at the Cities Alliance. France is jointly repre- tegic orientations that lays out a policy vision and identi- sented at the Cities Alliance by the Ministry of Foreign �es the key areas of French aid in urban governance. and European Affairs (MAEE) and Agence Française de Développement (AFD). Since 2004, managing co- An approach that combines a long-term vision with herence of effort expertise on urban issues—a top con- short-term actions, links spatial planning with invest- cern of the Cities Alliance—has resided in France within ment, and mobilises all the relevant urban development these two institutions. The MAEE determines overall actors has trouble gaining traction in developing coun- strategic policies related to support for democratic, tries. Recognising this, the urban working group recom- local, urban, and land-related governance processes, mended an aid effort to prepare and implement urban decentralisation processes, and land management strategies by strengthening local governance and ca- policies. AFD provides urban development assistance pacity to achieve sustainable urban development. through sectoral programmes as well as investment as- sistance, in particular to local authorities. 70 CITIES ALLIANCE This effort entails helping cities prepare and implement In that context, one of the �rst tasks assigned to the their management and sustainable development poli- partnership is to prepare for France’s participation in the cies and strategies for urban and periurban zones. Pri- World Urban Forum slated for Rio de Janeiro, Brazil, in ority is given to developing a comprehensive and cross- 2010 with the theme of “The Right to the City-Bridging cutting approach to the city structure and land; building the Urban Divide�. This participation could be organ- the capacity of actors by providing institutional support ised around priority topics in partnership with other bi- in the public policy sphere; developing research and lateral or multilateral assistance agencies. training; and supporting networks that pool skills and expertise, as well as share experiences. Multipartner projects. In addition to the activities of the urban working group, the MAEE has initiated other mul- These principles are linked to our urban development tipartner projects that have been or are on the verge of assistance priorities: support for policies aimed at the being launched: rehabilitation and development of old urban centres, land law reforms and policies, universal access to es- • The European cooperation charter in support of lo- sential services and decent housing, and economic de- cal governance, issued in November 2008 during the velopment policies for cities. European [Sustainable] Development Days event in Strasbourg. A follow-up mechanism to this charter is A partnership to enhance coordination among currently under review, French urban development actors. The urban working group also recommended establishing a French part- • A white paper on French actors working in the nership for the city structure and land, with secretariat areas of governance and land security in developing services provided by ISTED. Designed as a forum for countries prepared by the land development commit- holding discussions, exchanging knowledge, sharing tee, which has been cochaired by AFD and the MAEE information, and building synergies, this partnership for more than 10 years. The paper serves as a frame of seeks to enhance the effectiveness of French actors reference for the preparation of strategic orientations in working in urban assistance. those two areas, which should be tackled in the near future. Given the number of these actors, better coordination and complementarity of their assistance are necessary, These initiatives are all linked, with their results comple- including their work with other bilateral or multilateral menting and drawing on each other. As a result of this development entities such as the Cities Alliance and interconnection, our positions and actions are consis- its members. This entails greater coordination of assis- tent and mutually reinforcing. tance efforts to tackle global urbanisation challenges, enhancing the consistency and visibility of French as- sistance activities, and enabling France to make a greater contribution to ideas discussed at international forums. Enhanced coordination was already evident in France’s delegation to the World Urban Forum (WUF 4) in Nan- jing, China, in November 2008. The MAEE tapped into the urban working group to form a delegation to the event, thereby ensuring that France had a coordinated, visible representation that had been lacking at previous forums. 71 2009 ANNUAL REPORT METROPOLIS 72 CITIES ALLIANCE METROPOLIS www. metropolis-server.com/metropolis/en Overview of the Metropolis Action Plan for 2009–11. • Bank of Cities (Global Fund for Cities Develop- In October 2008, Metropolis organised its triennial Con- ment). Presidency: Paris Ile-de-France; gress and approved an Action Plan for 2009 –11. The • Metropolis Women International Network. Presi- Action Plan addresses three key challenges for the fu- dency: Montreal. ture of cities: (i) managing urban growth; (ii) bridging territorial, economic, social, environmental, and cultural In addition, the Metropolis Training Institute in Mon- sustainability gaps; and (iii) fostering metropolitan inno- treal approved its action plan and the creation of new vation and governance. The Action Plan also emphasis- branches in Mashhad, Iran; Seoul, South Korea; Cairo, es the need to establish a global alliance between met- Egypt; and Moscow, Russia. The plan highlighted the ropolitan governments and their partners (stakeholders) role of Metropolis in representing metropolitan interests to foster urban sustainability. before international institutions—especially UN agen- cies via ECOSOC, UN-HABITAT, and the United Nations The main objectives of the Action Plan 2009 –11 are: Advisory Committee of Local Authorities (UNACLA) as well as Cities Alliance, the World Bank, the U.S. Con- • Enhancing mutual learning, training, and capacity ference of Mayors, and ICLEI—and participating in in- building; ternational activities and meetings in close cooperation • Accelerating innovative practices to �nd solutions with United Cities and Local Governments. to metropolitan problems; • Fostering metropolitan governance to reduce met- Cooperation with the Cities Alliance: The Global ropolitan gaps; Fund for Cities Development. The key cooperation • Fostering �nancial and technical assistance to met- project between Metropolis and the Cities Alliance is the ropolitan areas of developing countries; Bank of Cities project, now approved by the Metropo- • Representing and giving political visibility to metro- lis Board as the Global Fund for Cities Development. politan interests at national and international levels; and, The Cities Alliance has supported the project since its • Encouraging debate on the evolution and trends in preliminary stages, and Metropolis has invited the Cities metropolises and metropolitan policies. Alliance to become a founding member of the Global Fund. At its 2008 Congress, Metropolis also approved the fol- lowing standing commissions and projects for 2009 –11: With the development of the project, Metropolis is seek- ing to go further than merely making the usual demands • Eco-Regions and Food Safety. Presidency: Paris of the international community by proposing practical Ile-de-France; action. Metropolis aims to set up a facilitating instrument • Managing Urban Growth. Presidency: Melbourne; to pool the know-how and resources of local authorities • Governance Concepts in Integrated Urban Socio- with the �nancial capacities of �nancial backers and to Economic Development Activities. Presidency: Berlin; channel all of these resources towards local authorities. • Megacities. Presidency: Mexico City; • Partnership for Urban Innovation. Presidency: Bar- The facilitating instrument is designed to complement celona; existing systems at the service of local authorities by offering them both the technical assistance needed to Shanghai cityscape in the Pudong district.© Laszlo Zsivin / Peter Arnold Inc. 73 2009 ANNUAL REPORT formulate their projects and the �nancial engineering essential to their funding. For example, it would comple- ment Cities Alliance projects in slum upgrading and strategic planning. The Global Fund for Cities Development is an initiative that seeks to amplify the scope of efforts in favour of new urban policies at the global level under the United Nations Habitat Agenda. It calls for a reaction from the international community. In particular, the World Bank and the International Monetary Fund have been invited by the members of the G20 to provide considerably in- creased resources to developing countries. With the ini- tiative, Metropolis is proposing a technical and �nancial instrument that is exclusively dedicated to urban devel- opment. It is a practical proposal made to the World Bank at a time when that institution is reviewing its urban action strategy. The Global Fund would take the form of an association (a nongovernmental organisation) managing institution- al support and technical assistance. It would also act as a �nancial service provider and as a mediator in seek- ing funding. If necessary, it could manage a �nancing fund as well. The structure of the Global Fund will mobilise the tech- nical know-how of its members, who will offer admin- istrative and technical human resources, optionally accompanied by �nancial resources. The structure will mobilise its own capital and raise capital from multilat- eral and bilateral agencies. Overview of slum housing in Mumbai. © Mark Edwards / Peter Arnold Inc. Right: Children en route to school in Hanoi, Vietnam. © Thomas Schlegel / transit / Still Pictures 74 CITIES ALLIANCE G OVER N M EN T OF N OR WAY 2009 ANNUAL REPORT 75 GOVERNMENT OF NORWAY, MINISTRY OF FOREIGN AFFAIRS www.regjeringen.no/ In October 2007 the Ministry of Foreign Affairs launched The implications and follow-up of these reports are its policy document, “Cities – Hopes and Challenges: presently being discussed in practical terms with UN- Urban Development and International Co-operation�. HABITAT and the World Bank in the context of new pro- The document outlines what Norway could do during gramme agreements and new urban strategies. As a the coming years within the �eld of urban development. new urban world is unfolding, promotion of innovative Five priority areas are identi�ed: good governance, en- knowledge and practices in the form of well-coordi- vironment, gender equality, humanitarian disasters, and nated university research and institutional cooperation peace and reconciliation. becomes particularly important. Norwegian institutions of higher learning such as the Norwegian University of These areas also are reflected in the Norwegian govern- Science and Technology and the Oslo School of Archi- ment’s and the Ministry of Foreign Affairs’ recent policy tecture and Design are actively involved in competency work. The government’s white paper No. 13 (2008–09), and capacity building in East and Northeast Africa with titled “Climate, Conflict, and Capital�, sees global pov- government of Norway support. erty as a result of unjust global power structures. It explicitly points out that a democratic culture must be The Ministry of Foreign Affairs has also introduced anchored at the local level. Decentralisation and local competence-building measures for an increasing num- self-government often contribute to more ef�cient re- ber of young professionals in its cooperation with UN- source use and constitute a basis for popular participa- HABITAT and the Cities Alliance. We are also trying to tion in politics locally and nationally. build knowledge networks on urbanisation within both Norway’s government administration and our civil soci- Government white paper No. 9 (2007–08) on Norway’s ety environment. policies for prevention of humanitarian disasters explic- itly identi�es changes in settlement patterns in the forms Most governments in low-income countries do little to of migration, urbanisation, and increased slum growth address the problem of emerging new slums. These as contributing to increased risks for disasters. This is in new communities are hardly “on the radar screen�. This addition to the effects of climate change. Action plans has created a vacuum that increasingly is being �lled for follow-up are presently being developed by the Min- by nongovernmental and community-based organisa- istry of Foreign Affairs in the wake of the white papers. tions. They commonly share the view that most of the funding to support the urban poor has to come from the In-depth knowledge about the many aspects of ur- poor themselves, from municipalities and local �nancial banisation is a prerequisite for taking the right action. markets. This is a major challenge for bilateral and mul- Knowledge development is therefore a sine qua non in tilateral donors that, in the years to come, will have to Norway’s urban policies and practices. During the last play a catalytic role to strengthen the voice of the urban two years Norway has contributed �nancially to the pro- poor, building their capacity to solve their own problems duction of Worldwatch Institute’s 2007 State of the World and mobilise their own resources. The present interna- – Our Urban Future Report, to UN-HABITAT’s State of tional development architecture is not meeting this chal- the World’s Cities 2008/2009, and to the World Bank’s lenge adequately. World Development Report 2009: Reshaping Economic Geography. 76 CITIES ALLIANCE The Cities Alliance has a major role to play in bringing the leading urban development players—donors as well as bene�ciaries—together in dialogue to develop inno- vative and effective policies and practical measures to unleash urban development potential. Norway is pre- pared to support both the continuous discourse and its effective follow-up. Settlement on the outskirts of Lilongwe, Malawi. © William Cobbett/ Cities Alliance 77 2009 ANNUAL REPORT CITIES ALLIANCE 78 REPUBLIC OF THE PHILIPPINES REPUBLIC OF THE PHILIPPINES www.hudcc.gov.ph/ Background. As in many developing countries around Organisational urban policy. To promote urban de- the world, the rapid pace of urbanisation in the Philip- velopment in the country, the national government for- pines continues to drive demand for basic urban servic- mulated and updated various plans that would provide es and infrastructure. Rural-to-urban migration and the an overall framework and guide for urban development natural increase in the urban populace have resulted and housing in the Philippines. in an acute supply-demand imbalance for basic urban services and infrastructure, thus fuelling urban poverty. • The National Urban Development and Housing Framework, which was updated with the support of In the Philippines, many urban households perceive the United Nations Development Programme (UNDP), themselves as poor because they lack security of provided policy statements and strategies intended to tenure, making them vulnerable to eviction from their guide the Philippine government’s efforts towards im- homes. They do not have access to basic urban servic- proving the performance and ef�ciency of the country’s es and consequently suffer from economic and physical urban system. immobility, in addition to social and health risks. They have no shelter and live in makeshift houses. They have • The Housing and Urban Development Sector Road no stable jobs, and they cannot access the �nancing Map was formulated under the Metro Manila Urban Ser- required to enable them to pursue their livelihood or en- vices for the Poor Project, with preparatory technical as- trepreneurial endeavours. sistance provided by the Cities Alliance. This road map provides the blueprint for how Metro Manila, the centre The impact of climate change in the country is expected and the most congested part of the country, can re- to signi�cantly increase risks from climate-related haz- spond to the urban development challenges. It focuses ards and puts the vulnerable sectors at greater risk. Cli- on how slums and informal settlements can be reduced, mate change will adversely affect the country’s water if not totally eradicated, over a 15-year period. supply, watersheds, and forests. Flooding is expected to increase as a result of accelerated sea-level rise and • The Philippine Urban Infrastructure Sector Road increasing frequencies of typhoons, which would wreak Map was produced through the preparatory technical havoc on our coastal areas. assistance provided by the Asian Development Bank (ADB) under the proposed Philippine Basic Urban Ser- The recent typhoon Ketsana is an example. Ketsana vices Sector Project (PBUSSP). This road map is aimed struck with unusual force. In a matter of hours, wide- at supporting strategic decisions relative to investment spread flooding devastated metropolitan Manila and priorities of the government and the ADB and grant the nearby provinces of Bulacan, Rizal, Laguna, and funding for pilot projects through mechanisms such as the island of Southern Luzon. Metro Manila and at least the Japan Fund for Poverty Reduction. 23 provinces were placed under a “state of calamity�. The number of people affected by the typhoon stood The PBUSSP comprises five subsectors: water and at 4,119,658—some 838,103 families. More than 10,000 sanitation; solid waste management; urban transport; homes were partially or totally destroyed. urban renewal; and basic services for the poor, includ- ing housing and multisector initiatives. Manila, Philippines. Courtesy: Asian Development Bank. 79 2009 ANNUAL REPORT Programme Initiatives and Activities convert government-owned idle or vacant lands into housing sites that bene�t quali�ed bene�ciaries; and a Institutional capacity building to adapt to climate resettlement programme, which involves the acquisition change. Climate change is a very real challenge, which and development of large tracts of raw land into ser- should be in the forefront of the country’s agenda. In viced home lots or core housing units for families dis- a global assessment report by the United Nations, the placed from sites earmarked for government infrastruc- Philippines is considered one of the countries at high ture projects and dangerous areas such as waterways, risk of effects from climate change. The study, Risk esteros, and railroad tracks. and Poverty in a Changing Climate, places the Philip- pines with a medium-to-high mortality risk from climate To make housing more affordable to the lowest 30 per- change, with a 6.5 rating on a scale of 1 to 10. cent of the income decile, the national government, through the Home Development Mutual Fund, further Recognising the risk, the Philippine government en- lowered its interest rate from nine percent to six percent tered into a partnership with the United Nations for a for its socialised housing package and extended its re- Joint Programme on Strengthening the Philippines’ In- payment period from 25 to 30 years. This undertaking stitutional Capacity to Adapt to Climate Change. The aims to provide wider access to housing to the segment programme seeks to enhance Philippine capacity by of the formal sector not catered to by the banks. mainstreaming climate risk reduction into national and selected local development plans and processes; en- To mitigate the effects of the global �nancial crisis on hancing national and local capacity to develop, man- the poor, the Philippines enacted a law that provides age, and administer plans, programme, and projects relief to households that have delinquent accounts with addressing climate change risks; and improving coping shelter �nancing agencies and government �nancial mechanisms through tested pilot schemes with national institutions. Under the Socialised and Low-Cost Hous- up-scaling potential. ing Loan Restructuring and Condonation Programme, all penalties and surcharges as well as a reasonable The Housing and Urban Development Coordinating portion of the interest of all accounts not exceeding PHP Council (HUDCC), which is the primary agency tasked 2.5 million (or about US$52,000) that are in arrears for at with formulating and coordinating the implementation of least three months as of 16 March 2009, will be settled. policies on housing and urban development, is in the forefront of implementing a climate change adaptabil- To raise the liquidity of the housing sector and ensure ity project in Sorsogon City. The project, in coordination sustainable funds for housing, the government issued with UN-HABITAT, aims to �nd ways of minimising the its �rst residential mortgage-backed securities amount- impact of climate change by increasing the capabili- ing to PHP2.1 billion or approximately US$45 million. ties of the local government and coming up with climate change–resilient communities. City Development Strategy (CDS) 3. To enhance the strategic planning, governance, and resource-mobilisa- Secure tenure and shelter programme. The national tion capabilities of Philippine cities as well as consoli- government continues to implement programmes that date and expand the previous successful CDS experi- would regularise the tenure and provide shelter to infor- ences (CDS1 and CDS2), the Philippines embarked on mal settlers and low-income members of the formal sec- a CDS3 project with 15 cities participating. Adopting the tor. Among the programmes implemented are the Com- CDS process and using the urban karte indicator, these munity Mortgage Programmes, which assists informal cities began the assessment of their present conditions settler-families in land acquisition, site development, in relation to their liveability, bankability, competitive- house construction, and home improvement through ness, and governance. concessional loans; presidential proclamations, which 80 CITIES ALLIANCE To institutionalise CDS in the National Planning Frame- it resulted in recommendations to institutionalise trans- work, a list of recommendations was developed, in- port impact assessment in planning, adopt longer-term cluding building on the current strength and core links transport planning, and establish capacity-building pro- of CDS with the larger system, and strengthening the gramme at the national level. horizontal (within the city planning and development process) and vertical (interaction with the rest of the Recognising the need to enhance local governments’ planning system at the provincial, regional, and national capability to access �nancing from other sources or levels) influences of CDS. A Harmonisation Workshop through their own measures, as well as to improve their compared three planning processes: the Comprehen- expenditure management and budgeting processes, sive Development Plan of the Department of Interior and workshops on capital budgeting and project prepara- Local Government; the Comprehensive Land Use Plan tion and packaging were undertaken, using the detailed of the Housing and Land Use Regulatory Board, and project description method. the CDS Process. The workshop also identi�ed areas for collaboration and common tools that may be ap- Representations were also made for the participation plicable to all three processes, as a �rst step towards of the League of Cities of the Philippines (LCP) in vari- harmonising them. ous decision and policy-making bodies that involve lo- cal governance. Subsequently the LCP was allowed to Capacity-building activities were enhanced through participate in the meetings of the governing boards or partnerships with the leading academic institutions in committees of the Municipal Development Finance Of- the country for a CDS Learning Centre, which integrat- �ce and the National Land Use Committee. ed CDS into its training courses, offered a study tour in the People’s Republic of China on resource mobilisation Through the CDS, the country continued its outreach and sewerage treatment, and used the technical as- activities, such as participating in the Fourth World sistance provided by the Japan Consultant Trust Fund Urban Forum, in Nanjing, where it showcased CDS in administered by the World Bank for transport planning the Philippines, and improving its CDS Web site and and traf�c management. This technical assistance cov- information, education, and communication materials. ered training to address traf�c hot spots in cities, and A real neighbourhood in Valenzuela, Manila, Philippines. © Farouk Tebbal/Cities Alliance 81 2009 ANNUAL REPORT CITIES ALLIANCE 82 SHACK/SLUM DWELLERS INTERNATIONAL SHACK/SLUM DWELLERS INTERNATIONAL www.sdinet.co.za Activities for the year under review. Between 2008 Contribution to Cities Alliance coherence of effort. and 2009, Shack/Slum Dwellers International (SDI) ex- Over the past year, SDI has been directly involved with panded its footprint to include three new countries: Li- the Cities Alliance on several fronts. SDI worked with beria, Bolivia, and Haiti. There are now women’s savings the Cities Alliance to secure a $15 million grant from the collectives in the major slums of Monrovia, Cochabam- Bill and Melinda Gates Foundation. The Cities Alliance ba, and Port-au-Prince, and formal arrangements with will use grant funds to enable further access to land, local authorities are already in place in both Monrovia citizenship, and inclusion for slum dwellers in cities and and Port-au-Prince towns of several low-income countries in the South. SDI . has also worked directly on Cities Alliance–linked proj- In the area of enumerations large-scale information- ects in Swaziland, Liberia, Sierra Leone, Angola, and, gathering drives are underway in Cape Town, South more recently, Uganda. Africa; Dharavi, India; Nairobi, Kenya; Recife, Brazil; and in large cities in Zimbabwe, Zambia, and Namibia. This close cooperation is expected to continue. In Sep- These community-based enumerations have become tember 2009, SDI leadership visited the Cities Alliance increasingly important for city authorities who are seek- Secretariat in Washington, D.C., to develop a joint work ing pro-poor, participatory solutions to their upgrading plan for the years ahead. challenges. In 2009, SDI’s international �nance facility—Urban Poor Fund International (UPFI)—continued to grow. It provided seed capital for grassroots-driven upgrad- ing projects in cities including Lilongwe, Malawi; Kitwe, Zambia; Harare, Zimbabwe; Kroonstad, South Africa; Morotuwa, Sri Lanka; and Iloilo, the Philippines. UPFI has followed the demands of SDI af�liates, which are increasingly being drawn into activities in small- and medium-size towns. The intention in all of these cases—as with SDI projects in larger cities—is primarily to provide for tenure secu- rity, basic services, and incremental housing opportu- nities to communities that are not only vulnerable and marginalised, but also organised and ready to engage other actors in development, especially local authori- ties. As a result, these projects aim to leverage resourc- es from other institutions, principally governments, to affect policy so that the projects can be scaled up to the citywide level. Larger projects are underway in Kenya, South Africa, and India, and other projects are in the pipeline in Brazil, Uganda, and Tanzania. A slum in Mumbai, India. © Mark Edwards / Peter Arnold Inc. Left: Family living in a slum in Jakarta, Indonesia. © Ron Giling/Still Pictures 83 2009 ANNUAL REPORT CITIES ALLIANCE 84 GOVERNMENT OF SWEDEN, SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY GOVERNMENT OF SWEDEN, SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY www.sida.se/urban Organisational urban policy. Urban development has The pro�le of urban development within Sida, however, a high pro�le in Swedish foreign policy. Swedish policy became less visible through the reorganisation that took for global development aims at coherence in all policy place during 2008. Urban development is now part of sectors, and it highlights sustainable urban develop- one of eight policy areas that are the main focus of Sida ment as one of its priority areas. As Swedish Minister development cooperation—lumped together with water of Environment, Andreas Carlgren put it at the Fourth and energy and environment and climate change—the World Urban Forum (WUF 4) in Nanjing, China, “Our ur- objective being to seek synergies between the areas. ban development policy aims at combating exclusion Urban development projects, however, remain limited in urban areas and placing cities in a better position to to country assistance programme partly because of the contribute to reducing global climate change and im- low expressed demands in PRSPs (Poverty Reduction proving our global environment�. Strategy Papers) and similar documents. This again harps back to the weakness of local governments in ne- During the year under review, the Swedish government gotiating a platform in international development. took several initiatives to highlight these key issues: Activities for the year under review. Highlights from • Climate change and the environment is one of the the year under review include the following: government’s three main priorities in its policy on devel- opment cooperation. • During fall 2008, DFID (UK Department for Interna- tional Development) and Sida sponsored an evaluation • The Swedish International Development Coopera- of the Community-Led Infrastructure Funding Facility tion Agency (Sida) has been tasked with the elaboration (CLIFF). The overall conclusion of the evaluation is that of a government policy framework focusing on environ- “CLIFF is an innovative model, with undoubted suc- ment and climate change where energy, water, and ur- cesses in assisting organisations of the urban poor to ban development will play important roles. �nance and undertake community-driven infrastructure, housing and urban services initiatives�. The evaluation The Swedish Government also launched an Internation- also concluded, “CLIFF has piloted an interesting and al Commission on Climate Change and Development potentially widely replicable approach to housing and chaired by the Swedish Minister for International Devel- services for the urban poor and it is recommended that opment Cooperation, Gunilla Carlsson. In the commis- donor funds should be made available to support scal- sion’s report, Closing the Gaps: Disaster Risk Reduction ing up to include new organisations and locations�. and Adaptation to Climate Change in Developing Coun- tries: Report of the Commission on Climate Change and • State Secretary, Dan Ericsson from the Ministry of Development, the following was said about urban de- Finance was appointed to the board for the Urban Poor velopment: “The vulnerability of poor urban dwellers to Fund, a self-governed, self-managed, ongoing, and ex- climate change is often ascribed to their poverty, but it panding �nancial facility that provides capital to mem- is far more the result of failed policies on the local and ber national urban poor funds that are members of Slum national level and international agencies to support ur- Dwellers International. ban policies and governance systems that ensure that needed infrastructure is in place along with prepared- • The Swedish Royal University College of Fine Arts ness for extreme weather conditions�. organised a workshop facilitating dialogue between An electricity project in Doutou City, Benin. © Jorgen Schytte / Still Pictures 85 2009 ANNUAL REPORT slum dwellers and representatives from all Swedish po- • The Swedish foundation for environmental strate- litical parties represented in Parliament. gic research, MISTRA has been selected to establish a Centre of Excellence for Sustainable Urban Futures • Sida’s experiences in the �eld of urban cultural in Gothenburg. The decision came after a competitive heritage formed the basis for an exchange between the process between different consortiums consisting of Swedish National Board of Antiquities, Japanese aid universities, private companies, cities, and think tanks in and the World Bank. Sweden. The winning consortium comprises Chalmers University of Technology, the University of Gothenburg, • Sida has also been working on the report, The the Swedish Environmental Research Institute, the City Sustainable City Concept: Building on Swedish Experi- of Gothenburg, the Gothenburg Region Association of ences, a guidance brief and documentation of Swedish Local Authorities, the Country Administration of Västra experiences domestically and internationally on inte- Götalands Län, with international interaction platforms grated sustainable urban planning. Sida �rst presented in Kisumu, Kenya, Manchester, U.K., and Shanghai, the Sustainable City concept at the World Summit for China. Sustainable Development in Johannesburg in 2002. During the year under review, Sida developed the initial The Centre of Excellence aims at becoming an inter- examples into a guidance brief that can serve as a tool national player focusing on issues of urban sustainabil- for local governments in developing countries and can ity and transdisciplinary research. Activities will centre be used by different stakeholders such as twinning cit- on Urban Liveability and Health, Urban Structures and ies and international organisations. The guidance brief Growth, and Urban Environment and Climate Change. may also be useful in the promotion of sustainable urban The Centre of Excellence is likely to be resourced with development for international courses on sustainable US$20 million, with another US$20 million in co�nanc- cities. The guide will be launched at WUF 5 in Rio de ing over a 10-year period. It will be formally launched Janeiro to create broader awareness of the concept and in January 2010. Sida will add additional resources for to establish partnerships. The lessons and outcomes the establishment of local urban knowledge platforms in from Sida’s session on planning at WUF 4 in Nanjing, low-income countries and other dissemination activities. where India, South Africa, and Sweden compared ex- periences, were also incorporated into the Sustainable Cities process. A street in Mbale, Uganda. © Hilde Refstie/Cities Alliance. 86 CITIES ALLIANCE Cities Initiatives Eco2 Cities – Economic and environmentally sus- tainable cities. In response to the climate change chal- lenge, the World Bank, in collaboration with Sida and AusAid, launched the initiative Eco² Cities: Ecological Cities as Economic Cities. The initiative will promote an integrated approach for environmentally and eco- nomically sustainable urban development, as well as develop an analytical framework that can be used by decision makers to put together a set of programme ele- ments for their cities. The Eco2 Cities concept has been applied in the city of Tianjin, China, where Stockholm City and other partners are involved in the structural plan and developing an environmental load pro�le. The Cities Development Initiative for Asia (CDIA). CDIA is a partnership between the Asian Development Bank (ADB) and the governments of Germany, Spain, and Sweden, established to assist medium-size Asian cities to bridge the gap between their development planning and the implementation of their infrastructure investments. CDIA projects link strategic city develop- ment plans to the implementation of infrastructural proj- ects by carrying out pre-feasibility studies and capacity building, thus closing the gap that has been identi�ed by the Cities Alliance. The operational objectives are to improve urban infrastructure services through techni- cal assistance, to bring priority infrastructure projects to a stage where they are able to be �nanced, and to strengthen institutional dialogue and cooperation on ur- ban management. City twinning. The Swedish government has estab- lished an International Centre for Local Development (ICLD) to promote local democracy by �nancing twin- ning between Swedish cities and their partners in de- veloping countries. The cooperation builds on the ex- perience and know-how of Swedish municipalities and regions, promoting research and knowledge develop- ment with a focus on local democracy and local self- government. ICLD’s operations are �nanced by Sida and cover three main areas: knowledge and capacity development, municipal partnership, and international training. 87 2009 ANNUAL REPORT CITIES ALLIANCE 88 U N I T ED C I T I ES A N D L OC A L G OVER N M E N T S UNITED CITIES AND LOCAL GOVERNMENTS www.citieslocalgovernments.org/uclg/index.asp The international �nancial crisis, the climate change ne- developed by the UCLG Capacity and Institution Build- gotiations, and the debate on aid effectiveness topped ing Working Group. The �rst draft of this document was the work programme agenda for United Cities and Lo- presented in Barcelona at the Cities Alliance annual cal Governments (UCLG) in 2009, with the world organi- meeting and discussed over 2009 at the UCLG statu- sation working with its members to ensure that the local tory meetings. voice is heard in the formation of responses to these issues. It has become increasingly dif�cult to ignore this UCLG is concerned at the overly national orientation of local voice and the importance of ef�cient decentralisa- the alignment principle set out in the Paris Agenda. As tion, thanks to the growing acknowledgement that cities the worldwide representative of local and regional au- are part of the solution to these global challenges. thorities in more than 136 countries, UCLG has been invited to participate as a member of both the Organi- UCLG also hosted the Cities Alliance Annual Public sation for Economic Co-operation and Development Policy Forum and Consultative Group Meetings, which Working Party on Aid Effectiveness and the Advisory were held in Barcelona in January 2009. The Public Board of the UN Development Cooperation Forum. The Policy Forum focused on aid effectiveness. The meet- debates concerning the implementation of the Cities ings bene�ted from the participation of a large number Alliance Mid-Term Strategy have contributed greatly to of local government practitioners from across the world, enriching exchanges with donors. making for a stimulating debate with the World Bank, nongovernmental organisations, and government of�- Climate change. All UCLG members are affected by cials on how development aid can make a lasting differ- climate change to varying, even dangerous, extents. ence to local people. Approaches to climate change also vary accordingly in the cities around the world. Local and regional govern- Local Action Internationally ments agree, however, that local solutions must be de- veloped if we are to meet the international commitments Aid-effectiveness. Greater support to local and re- required to safeguard the future of humanity. Local gional authorities is necessary for aid to be effective. leaders emphasise the need to ground the international UCLG, as a member of the Cities Alliance, is opening discussions and to go from a sector-based approach the dialogue with donors and multilateral institutions on to an integrated approach, which requires ef�cient the need to consider the Paris Agenda from a broader governance as its cornerstone. UCLG and its partners perspective, which includes all stakeholders in de- have worked to ensure a united voice of local and re- velopment. The Cities Alliance Public Policy Forum in gional governments through their inclusion, in concrete Barcelona was a good example of the kind of policy amendments, in the complex architecture of the United dialogue between donors and the organised voices of Nations Conference of the Parties, to be held in Copen- local governments that will be instrumental to improving hagen in December 2009. international aid ef�ciency. A positive view of urbanisation. Acknowledgement of Recipients of development aid require capacity build- well-managed, dense, urban centres as instruments for ing to increase ownership of development and mutual a sustainable future has been a main feature of the in- accountability. These key issues are the focus of intense ternational action of UCLG, particularly within the frame- scrutiny in UCLG’s Policy Paper on Aid Effectiveness, Environmental refugees from the countryside in the process of squatting land on the outskirts of Buenos Aires, Argentina. © Mark Edwards/ Still Pictures 89 2009 ANNUAL REPORT work of our collaboration with the chairs of the Cities Al- liance. This focus can also be seen in our contributions to the new urban and local government strategy of the World Bank and in the UN-HABITAT through our contri- bution to the establishment of the World Campaign on Sustainable Urbanisation. Additional international human and �nancial resources will be needed to enable cities to prepare for the numer- ous challenges ahead. With the support of Cities Alli- ance members, UCLG has targeted capacity building in medium-size and small cities and their associations. The newly established Committee on Urban Strategic Planning gathers cities that are keen to evaluate and innovate their City Development Strategy processes through city-to-city exchange. The multiple and cata- lytic roles of local government associations deserve special attention in the initiative, which is led by cities in the South. Local finance. In the area of local �nance, UCLG has continued to promote the 25 recommendations put for- ward in its Policy Paper on Local Finance. During the an- nual meeting of the African Development Bank (AFDB), held in Maputo in 2008, the UCLG Committee on Local Finance presented these recommendations and called for more direct support mechanisms to �nance urban development. In 2009, the committee has followed up on these developments to ensure the representation of local government interests in the urban strategy of the AFDB. The World Bank has responded by inviting UCLG to participate in meetings to develop its urban and local government strategy. Although it may only be over the coming year that we are able to assess the true consequences of the �nancial crisis for local and regional authorities, the importance of analysing the nature of local �nance—its hurdles and constraints as well as its opportunities—cannot be over- estimated, as this will be part of the solution. Following the publication of the �rst Global Report on Decentral- ization and Local Democracy (GOLD) in collaboration with the World Bank and the Cities Alliance, an inter- national team has already been set up to work on the second edition. The second GOLD Report will focus on Top: A family newly arrived from the country living on the outskirts of Mexico City. © Mark Edwards/ Still Pictures local �nance, building on the work developed within the Botom: The Ninth Cities Alliance Public Policy Forum in Barcelona, UCLG committee. Spain. © Chii Akporji/Cities Alliance Rght: Chickalane, Mozambique: Water taps at a camp for people displaced by floods. © Heldur Netocny/Still Pictures 90 CITIES ALLIANCE UN-HABITAT 91 2009 ANNUAL REPORT UN-HABITAT www.unhabitat.org One of the major lessons the United Nations Human participatory planning, management, and governance; Settlements Programme (UN-HABITAT) learned during (3) the promotion of pro-poor land and housing; (4) en- the year under review was that climate disruption and vironmentally sound basic infrastructure and services; energy depletion highlight all of the factors and forces— (5) strengthened human settlements �nance systems individual, national, global—that make our 21st century and an institutional component; and (6) excellence in cities so complex and so vibrant. Within that context, management. UN-HABITAT demonstrated once again that it is particu- larly well placed as both an observatory and a catalyst The year 2008 was pivotal in establishing the new plan of the forces at play in a rapidly urbanising world, one in and guiding its implementation. In the latter part of the which cities are the �rst victims of climate disasters and year, a new series of UN-HABITAT regional surveys be- arguably the greatest contributors to greenhouse gas gan with the �rst State of African Cities Report, under- emissions that cause many of the problems. taken in cooperation with the UN Economic Commis- sion for Africa. (UNECA). Also, cooperation between As of the fourth quarter of 2008, UN-HABITAT had co- UN-HABITAT and Russia’s Ministry of Regional Devel- operation programmes and projects in 50 countries, the opment resulted in a State of Russian Cities Report. In majority in the least developed countries. More than 20 addition, plans are underway to publish other regional other countries bene�tted from the support of UN-HAB- flagship reports. ITAT’s global programmes, many in collaboration with our partner, the Cities Alliance. UN-HABITAT’s country- As in previous years, UN-HABITAT was also able to influ- level activities were and remain focused on supporting ence national government policies and help align them governments in the formulation of policies and strate- with the international agenda as de�ned at a series of gies to create and strengthen a self-reliant management major meetings, from the 16th Session of the Commis- capacity. sion on Sustainable Development in New York in May to the UN-sponsored climate change negotiations in The agency’s multiple partnerships continued through Poznan, Poland, in December. the year to act as channels for constant two-way dia- logue, especially with municipal authorities, grassroots In November 2008, the fourth session of the World Ur- civil society organisations, and business �rms. These ban Forum (WUF) in Nanjing, China, made its mark as partners kept UN-HABITAT alert to emerging concerns the world’s premier conference on cities. At WUF, UN- and best practices. HABITAT launched its new flagship quarterly magazine, Urban World, which replaces Habitat Debate. The importance of partnerships is why UN-HABITAT’s Medium-Term Strategic and Institutional Plan (2008–13) Implementation of the One UN programme further re- is anchored in the principle of partnerships, rather than inforced UN-HABITAT’s operational links with other UN in the capacities of the United Nations or of UN-HABITAT agencies. In 2008, the programme was piloted in eight alone. As agreed by the 58 member states of the Gov- countries. erning Council that oversees our work programme and budget, the plan has six components: (1) effective advo- The agency also worked diligently over the course of the cacy, monitoring, and partnerships; (2) the promotion of year to help central and local governments strengthen 92 CITIES ALLIANCE their abilities in every aspect of urban life—legislation, policy making and decentralisation, and the building of administrative, managerial, operational, and �nancial capacity. For example, UN-HABITAT provided train- ing in transparency in land administration for the �rst time. In addition, the Global Land Tool Network, which promotes poverty reduction through land reform, bet- ter land management, and security of tenure, grew to include 36 global partners, 58 member organisations, and more than 600 individuals. UN-HABITAT was also active in the area of disaster man- agement in 2008. The agency helped rebuild homes in Lebanon, Afghanistan, Indonesia, and Peru that were destroyed as a result of natural disaster or conflict. In sum, throughout the year under review UN-HABITAT demonstrated that it is uniquely placed to strengthen local capacities and leverage all available public or pri- vate resources and energies in favour of positive urban change. From new youth guidance centres in African cities and a new gender plan, the agency sought to pave the way for vibrant, rights-based civil societies as well as sustained social and economic stabilisation. UN-HABITAT providing aid in southern Lebanon. Courtesy: UN- HABITAT 93 2009 ANNUAL REPORT CITIES ALLIANCE 94 UNITED NATIONS ENVIRONMENT PROGRAMME UNITED NATIONS ENVIRONMENT PROGRAMME www.unep.org/ During the year under review, the United Nations En- completed by early 2010. Stakeholder consultations will vironment Programme (UNEP) has concentrated on be carried out at each stage of the plan’s preparation. two environmental issues affecting cities, especially in The outcomes will be disseminated at the regional and developing countries: climate change and sustainable national levels to support replication of the plan. urban planning and management. UNEP activities in climate change, 2008–09. Cities UNEP activities in sustainable urban planning and in developing countries are facing the challenge of re- management, 2008–09. In most developing countries, sponding to the impacts of climate change, and poor development is slowed by environmental degradation. urban dwellers are most at risk. At the same time, cities The contribution of environment to social and economic in developing countries are the fastest growing urban development is often poorly understood. To address areas in the world. Energy consumption, increasing these challenges, UNEP is developing a range of activi- transport, and building activities will all lead to escalat- ties aiming at integrating environment with long-term de- ing amounts of carbon dioxide emissions. velopment. For instance, since 2008, UNEP and the FIA Foundation for the Automobile and Society have been To make the voices of local governments heard in the developing a campaign, “Road Design and Finance for global debate, UNEP actively supports the Local Gov- Safety, Sustainability, and Accessibility�, to strengthen ernment Climate Roadmap to Copenhagen. This pro- the links between environmentally sustainable modes of cess, led by ICLEI and the main local government asso- road transport and safer roads in developing and tran- ciations, aims at recognising cities and local authorities sitional countries. as key actors in the post-Kyoto climate regime to be adopted during the United Nations Climate Change The collaboration between UNEP and UN-HABITAT and Conference in Copenhagen (COP 15) UNFCCC COP15 the development of the joint Partnership Framework climate negotiations in Copenhagen in December 2009. 2008–13 also aims at improved integration of the urban environment in the formulation of national policies and In addition, UNEP is supporting ICLEI in the develop- strategies. ment of better mechanisms for reporting greenhouse gas emissions from and for cities. For instance, one activity under this Partnership Frame- work involves improving solid waste management in Contribution to the coherence of efforts of the Cities Nairobi. UNEP, in close coordination with UN-HABITAT, Alliance. The environment is the biggest asset of the is assisting the City Council of Nairobi to prepare an poor, and it is this premise that underlies UNEP’s work integrated solid waste management plan for Nairobi. with cities and national governments. UNEP promotes The plan will provide for the scienti�c assessment of urban planning that allows cities to develop on the basis the character and quantity of the city’s waste, provide of the continued availability of environmental resourc- projections on future waste, and assess the current es. Sustainable urban development will also minimise waste management system. It will also recommend health risks and reduce environmental impacts at local appropriate environmentally sound technologies and and global levels. a policy framework for each component of integrated solid waste management. The project is expected to be The “Smokey Mountain� rubbish dump outside Manila, Philippines. © Nigel Dickinson / Still Pictures 95 2009 ANNUAL REPORT The primary objective of UNEP’s engagement in the Cities Alliance has been to improve the environmen- tal dimension in Cities Alliance projects with the goal of achieving sustainable urban development. Several activities have been undertaken under the Environment Initiative, started by UNEP in late 2005. In 2008, one of the major activities under the Environ- ment Initiative was the development of a Joint Work Programme. This three-year programme, started in mid- 2009, aims at better addressing the environmental is- sues faced by cities, especially in developing countries. To achieve this overall objective, the project will provide support to cities and Cities Alliance members in better integrating the environmental dimension in the design and implementation of city development strategies and will provide a body of knowledge that is useful to cities in their long-term strategic planning. In addition, the Joint Work Programme will mobilise dif- ferent UNEP divisions for supporting the environmental work of the Cities Alliance. Further, the programme will strengthen cooperation between UNEP and other de- velopment partners on the particular issue of cities and climate change. Linked to the latter, a second phase of the Joint Work Programme is currently being developed that will em- phasise cities and climate change and bringing on board UN-HABITAT and the World Bank. Water pollution in China. © Zhao Weiming/UNEP / Still Pictures Air pollution in Mexico City, Mexico. On most days a brownish haze composed of 11,000 tons of pollutants hangs over the city. © Mark Edwards / Still Pictures Left: UGA, City view with a construction site in Kampala, Uganda.© Achim Pohl/Das Fotoarchiv / Still Pictures 96 CITIES ALLIANCE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT 2009 ANNUAL REPORT 97 UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT www.usaid.gov/our_work/economic_growth_and_ trade/urban_programs/index.html In 2008, the United States Agency for International De- velopment (USAID) initiated a new hiring process de- signed to double the agency’s foreign service of�cers corps and ramp up its technical capacity in areas such as environmental protection, engineering, and gover- nance. This initiative will greatly increase USAID’s ability to operate in dif�cult urban environments and will build upon the work the agency has also been conducting on critical urban development issues. Activities for the year under review. USAID has been conceptualising and creating innovative partnership models that create linkages between the private sector, government, and civil society organisations to improve Stone walls totaling approximately 500 metres aimed to reduce service delivery and economic growth opportunities for the number of serious accidents was constructed on a highway in the urban poor. The new Leadership with Associates Bazarak city which is in the Panjshir province. The safety wall has award signed with the International Youth Foundation already prevented numerous accidents and lives have been saved. Courtesy: USAID (IYF) is one example of these efforts; the IYF model involves creating alliances with businesses, govern- ments, and nongovernmental organisations to improve Another piece of USAID’s urban development portfo- both short-term results and long-term sustainability. lio is the agency’s ongoing partnership with Evensen Dodge International, which promotes innovative �nanc- USAID has also continued to implement its successful ing for municipal development in Mexico and is piloting Making Cities Work strategy, which strives to assess, initiatives in Paraguay, Morocco, Vietnam, and South design, and implement activities that improve local Africa. governance, delivery of basic services, municipal infra- structure �nance, and urban environmental and health Contribution to Cities Alliance coherence of effort. issues. A key component of this strategy has been the USAID’s membership in the Cities Alliance has strength- CityLinks Program, which establishes partnerships be- ened the work of both organisations and magni�ed their tween U.S. municipal of�cials and their counterparts ability to respond to pressing urban development chal- in developing-country cities. The knowledge sharing lenges around the globe. which results helps improve local government manage- ment and service delivery in the host countries and in- For example, as a Cities Alliance member, USAID has troduces U.S. democratic practices to local of�cials and been able to grant proposals for slum upgrading and citizens. In 2008, partnerships were forged between city-development strategies that have resulted in fund- U.S. of�cials and of�cials in Afghanistan and Ethiopia, ing for more than 20 projects in Asia, Sub-Saharan Af- among other countries. rica, Latin America, and Northern Africa. These projects 98 CITIES ALLIANCE have received more than US$8 million in grant funding from the Cities Alliance and have leveraged more than US$32 million in additional contributions to bene�t the urban poor. Most recently, USAID partnered with the Cities Alliance and the World Bank to sponsor the presentation of the photo exhibit, “The Places We Live� at the National Building Museum in Washington, D.C. The exhibit was positioned as part of World Habitat Day celebrations, which were held for the �rst time in the United States on October 5, 2009. USAID worked with the U.S. Depart- ment of Housing and Urban Development in addition to a coalition of national stakeholders in urban devel- opment, such as the International Housing Coalition, the American Planning Association, and the National Association of Realtors, to ensure a highly successful American outing for the World Habitat Day celebrations. Left: Courtesy: UNEP Top: The AMSP Charikar team provided a computer training center focused on building the technical capacity of local females. The centre is equipped with seven computer stations and trains 21 students during each three-month term. Courtesy: USAID Bottom: Work is being done on the Khost water supply system to improve the city water and provide potable and healthy water to wider range of people. © Courtesy: USAID 99 2009 ANNUAL REPORT THE WORLD BANK 100 CITIES ALLIANCE THE WORLD BANK www.worldbank.org Portfolio Update. World Bank lending approvals for ur- ban operations in �scal year 2009 amounted to US$2.1 billion, a �ve percent increase from the past �scal year. Among the 25 new urban operations in the 2009 �scal year are the following noteworthy projects: • Indonesia: National Program for Community Em- powerment in Urban Areas supports the government’s efforts to ensure that the urban poor bene�t from im- proved socioeconomic and local governance condi- tions; • Morocco: Solid Waste Sector Development Policy Loan supports the government in implementing reforms aimed at improving the performance of the municipal solid waste sector; • China: Wenchuan Earthquake Recovery Project supports the government in restoring essential servic- es, building capacity of local governments to manage the recovery programme, and creating a recovery and reconstruction strategy; • Montenegro: Land Administration and Manage- ment Project works to improve the ef�ciency of permit- ting and the property registration system; • Burundi: Public Works and Urban Management Project seeks to increase access to sustainable infra- structure services and generate short-term jobs through public works programmes; • Brazil: Ceara Regional Economic Development: Cidades do Ceara project promotes economic devel- opment, improves urban infrastructure, and enhances regional management capacity. Jakarta, Indonesia. Woman in a slum collects water from a polluted river. © Ron Giling / Still Pictures Left: Traf�c in New Delhi, India. © ullstein - Unkel / Still Pictures 101 2009 ANNUAL REPORT New World Bank urban and local government strat- highlighted empirical work from cities around the globe. egy. It has been nearly a decade since the World Bank More than 600 people from 85 countries attended the last issued an urban strategy. Recent developments symposium, including more than 150 authors working in and topics of urban debate, including rapid urbanisa- 44 countries who presented in 35 parallel sessions, 10 tion, climate change, decentralisation, and the various plenary sessions, and four side events. approaches to city economic growth and urban pov- erty, frame the agenda of the new strategy. Increasing All of the symposium research papers are available for recognition of the importance of cities to national gov- download at www.urs2009.net. ernments in stimulating economic growth has been un- derscored by the World Development Report 2009 (Re- Cities and Climate Change. The Bank has scaled up shaping Economic Geography) and the Commission on its focus on climate change and cities. In addition to the Growth and Development (Urbanization and Growth). Urban Research Symposium, the Bank has increased resources on analytical work on sustainability and cli- The new strategy focuses on ways of harnessing urban- mate change in the urban sector: work on the impact isation to deliver on the growth agenda, while address- on coastal cities is being undertaken by a number of ing the challenges of urban slums, housing, and land regions, including East Asia, the Middle East, and North administration reforms. The “Urbanization Review�, a Africa; a Mayors Handbook on Climate Change is being major new knowledge product launched in the strategy, prepared; and urban projects are increasingly under- provides an analytical framework that helps countries taking work on climate change aspects of urban devel- and cities better understand and respond to urbanisa- opment. The Bank’s cities and climate change efforts tion pressures. The climate change agenda also �gures are spread across the Bank’s urban regions (operations prominently in the new strategy. A major thrust of the departments) and the central urban anchor. strategy is on new approaches to urban development that enable countries, cities, and their donor partners World Bank Urban Forum. The theme for this year’s to scale up their impact through broader-based pro- Urban Forum was “Innovations in Urban Space�. Many grammes using wholesaling techniques that empower of the sessions were structured around key topics of the cities and other regional development actors while stra- new urban strategy. The forum also paid special atten- tegically engaging with countries at the national level. tion to the ongoing global �nancial crisis. As the crisis Global consultations took place across all of the six re- unfolds, it is becoming clearer that cities will play an gions where the Bank is engaged, including local and important role in preserving jobs and creating new ones national government of�cials, donor and development and providing social safety nets to those most harmed. partners, nongovernmental organisations, and the pri- Participants included 150 World Bank staff and del- vate sector. egations from UN-HABITAT, United Cities and Local Governments, Metropolis, Agence Française de Dével- For more information, visit the new World Bank Urban oppement, German Technical Cooperation (GTZ), and Strategy Web site at www.wburbanstrategy.org. the Rockefeller Foundation. The Fifth Urban Research Symposium. This gather- Global City Indicators Programme. This programme ing in Marseille, France, focused on cities and climate is designed to establish comparative indicators and change, dealing with both adaptation and mitigation benchmarks that can be linked to the Millennium De- strategies. Participants included the French Ministries velopment Goals and national-level development strate- of Sustainable Development and Foreign Affairs; the gies. Key stakeholders reviewed a summary document French Agency for Development; and a host of insti- with a proposed rollout strategy, which was presented in tutional, strategic, and private sector organisations. It Nanjing at the Fourth World Urban Forum in November featured commissioned research on relevant topics and 2008. The Bank is an active board member and active 102 CITIES ALLIANCE champion of the Global City Indicators Facility. (There are 12 board members, including seven city represen- tatives.) New publications. The Bank’s urban unit published Pri- vate Sector Initiatives in Slum Upgrading and Exploring Urban Growth Management: Insights from Three Cities. A new notes series, titled Directions in Urban Develop- ment, was initiated; the �rst notes were City Regions: Emerging Lessons from England; Impacts of Financial, Food, and Fuel Crisis on the Urban Poor; and Infra- structure and Heritage Conservation: Opportunities for Urban Revitalization and Economic Development. All of these can be found on the web site at www.worldbank. org/urban Ursulutan Province, San Francisco Javier, El Salvador. A father and his children walking through the wreckage after an earthquake destroyed 90 per cent of the village. © Jorgen Schytte / Still Pictures 103 2009 ANNUAL REPORT STRENGTHENING THE LEARNING ALLIANCE Strengthening the Learning Alliance Beyond its role as a grant-making facility, the Cities Alli- tion�, followed by the “Financial� report. Nine years later ance was also conceived as a learning alliance seeking and showing a progression in production values from to advance the collective know-how of local authorities an initial black and white product to a full colour product and their international development partners on ways beginning in 2004, the Annual Reports have remained and means to reducing urban poverty and of improv- the Alliance’s flagship for capturing and sharing sub- ing the quality and impact of urban development coop- stantive knowledge on its activities, and of advocacy on eration. The Cities Alliance has developed a range of key urban messages or trends. different methods to promote learning and knowledge sharing, including the Annual Reports, Public Policy Fo- The Public Policy Forums (PPF) were, as the name im- rums, Knowledge Partnerships, the CIVIS Notes series, plies designed to bring together local and national city and Policy dialogues. stakeholders, development partners, private sector, slum dwellers, and media around a speci�ed theme From the outset, the Annual Reports were viewed as in urban development. The �rst of these was held in having a function far beyond the reporting of organisa- Montreal in June 2000, and focused on pro-poor urban tional activities for the year under review for the bene�t policies and related institutional and �nancial reforms, of shareholders. They were rather designed to be plat- reviewing lessons from experience in Africa, Asia and forms for capturing and disseminating knowledge and Latin America. Since then PPFs have been held every learning from the Alliance’s activities in CDS and slum year as an integral curtain-raiser to the Consultative upgrading, consciously targetting not only the Alliance’s Group (CG) meetings, allowing CG members to learn own members, but also local government of�cials, na- �rst-hand something of the city hosting the event. tional government counterparts, other urban develop- ment practitioners, and experts. At the same time, the The Alliance also deliberately pursued a strategy of Reports aimed to be accessible to the general public. creating knowledge partnerships with members or part- ners it identi�ed as having comparative advantages in Cities Alliance issued its �rst Annual Report in 2001, two speci�c areas of work relevant to its mandate. Some of years after its founding, where it basically set the stage the earliest versions of these partnerships were with uni- for the urban debate in the face of rapid urbanisation, versities, including the University of São Paulo in 2001, and the challenges and opportunities these imply for which also provided of�ce space for the of�ce of the developing countries. The structure and organisation Alliance’s regional advisor for Brazil, a position then of the �rst report set the standard, and provided the funded by the government of Italy but also served as template: An Introductory chapter taking a broad and an observatory for the Alliance’s monitoring of scaling analytical perspective on a pertinent urban develop- up of slum upgrading activities in Brazil. Another early ment issue or trend, and discussing approaches, ex- University partner of the Cities Alliance was the Mas- periences and policy recommendations on the way for- sachusetts Institute of Technology (MIT), with which the ward. This is followed by a traditional “Cities Alliance in Alliance created an urban upgrading database and CD, Action� chapter outlining the Alliance’ activities in CDS supported by an interactive website to serve as a meet- and slum upgrading for the year under review, followed ing space for practitioners wishing to share lessons and by sections on “Communications and Knowledge Shar- experience. ing activities�, a review of the “Cities Alliance Organisa- Dharavi, Mumbai. © Jonas Bendiksen 105 2009 ANNUAL REPORT The Alliance also provided seed funding for the estab- In 2007, following the recommendations of the 2006 lishment of communities of practitioners in its cities of independent evaluation that the Alliance deepen the activities. Support to the League of Philippine Cities organisation’s knowledge base, a monitoring and evalu- enabled the institutionalisation and expansion of pov- ation unit was established within the Secretariat to sup- erty-focused city development strategies throughout port a results-based approach to knowledge gathering the country. The Alliance also partnered with subsidiar- and sharing. The process Is being led by Günter Mei- ies of member organisations with speci�c services to nert, a senior staff member on secondment from GTZ. provide. Its long standing partnership with ISTED led to A preliminary framework was presented to the Alliance’ major outputs such as the Guide to Working with Cities executive committee in Trondheim, Norway in April Alliance in several languages and the special edition of 2008, and a �nal strategy document has been revised Villes en developpement, the Institute’s quarterly news- to meet the evolving demands of the CG and to support letter, dedicated to a subject matter of special interest the MTS. to the Cities Alliance. These knowledge partnerships were later consolidated into joint work programmes on To strengthen its learning brand the Alliance has also or- de�ned urban issues with members such as UCLG, ganised and participated in series of policy dialogues, UN-HABITAT, UNEP, the World Bank, and with bilateral in addition to leveraging a number of knowledge shar- members such as AfD, Brazil and India. ing events as platforms for sharing knowledge and ex- periences. Mention of a few will suf�ce here. In partner- The CIVIS Notes series was �rst launched in 2001 to ship with its CDS partners in Asia it has organised a serve as a forum for sharing practical experiences and series of CDS workshops, including the high pro�le con- successful examples of city development strategies ference in Hanoi in December 2004; these have helped and slum upgrading among policy makers and practi- the process of knowledge and institutionalisation of the tioners, with a focus on what has worked, and why, as process in several countries in the region. The Alliance well as on wider policy issues. It published a landmark participated in the second Africities summit in Yaoun- series on “Shelter Finance for the Poor�, the results of dé, Cameroun where it organised a half-day summit an initiative designed to respond to both client demand on the participation of African cities in the Cities Alli- and to the growing capacity of private sector �nancial ance, laying the groundwork for increased collaboration institutions with experience in serving the urban poor. between the Alliance and African cities. The Alliance broadened its participation signi�cantly during the 2006 To formalise its knowledge sharing strategy Cities Alli- Africities Conference in Nairobi, where it hosted a major ance enunciated a communications and dissemination exhibition booth plus major, well-attended workshops. strategy in its 2003 Annual Report. Its communications strategy supports a learning process among all its part- Alliance managers and staff have also been proactive ners and includes sharing lessons and fostering the use participants at several meetings and policy dialogues of more effective tools, policy options and standards organised by members and partners. In 2008 the Alli- of practice. It advocated for a dissemination strategy ance organised a highly successful south-south knowl- which depended not only on the quality and appropri- edge exchange on slum upgrading, in partnership ateness of the outputs, but also on ensuring that these with the municipality of São Paulo. The �ve-day event outputs reach those who can make the best use of brought together representatives of the mega cities of them. The elaboration of this strategy set the stage for the south such as Cairo, Ekurhuleni, Lagos, Manila, the hiring of a Communications Of�cer, Chii Akporji in Mumbai, their counterparts from the host city of São 2004, and the eventual setting up of a communications Paulo and from a third group of observers namely, La and knowledge unit within the Secretariat. Paz, Bolivia; Santiago, Chile; Sekondi-Takoradi in   Gha- na to share their experiences on the challenges of slum upgrading. These were joined also by representatives 106 CITIES ALLIANCE of development organisations such as the World Bank, • Will partner cities and Cities Alliance sponsors be the Asian Development Bank, United Cities and Local in condition to apply the enhanced M+E Governments (UCLG), Metropolis, and UN-HABITAT. mechanisms? • Will the additional effort for M+E be well justi�ed With implementation of the Medium Term Strategy now by better results orientation and learning? gathering momentum, the Secretariat plans to signi�- • Will the results produced by M+E ful�ll adequately cantly strengthen learning and knowledge amongst both, learning as well as accountability purposes? Cities Alliance members, and improve impacts beyond its membership. In particular, developing country cities M+E of the project portfolio are increasingly interested in bene�tting from the expe- A review of the CDS and slum upgrading project port- rience of other cities that have already grappled with folio was presented by the secretariat for the �rst time. similar development challenges. It provides concise information on the composition of the portfolio, thus accounting for the use of funds by Monitoring and Evaluation reporting on the regional distribution of projects, imple- menting partners, types of recipients, and other. The The overall conceptual approach to monitoring and report draws on project data contained in the newly evaluation (M+E) in the Cities Alliance, as approved by established project database in the secretariat. Once the Consultative Group, aims to motivate and facilitate the M+E system for projects mentioned above is fully learning, to support results-based management, and to operational, the portfolio review will provide data on the increase accountability. The M+E system targets three quality of project outputs and outcomes. levels, the individual CDS and slum upgrading projects, the project portfolio as a whole and the institutional per- Figure 3: M+E of the Project Portfolio formance of the Cities Alliance. M+E for individual CDS and SU projects D Impact The Secretariat developed a set of new tools, which A include revised formats for project proposals, assess- ments and reports. A midterm review helps to keep T Outcome projects on track towards achieving its objectives. The A Future ] evaluation workshop at project completion focuses at B Portfolio outputs and outcomes. Both, midterm review and com- Output Analyses pletion workshop will be conducted by the respective A project teams with the participation of stakeholders S Present wherever sensible. The M+E process at project level is Portfolio designed to provoke a deeper understanding of how E Analyses projects work and what results they achieve. By doing Input so, the Cities Alliance will be in better condition to iden- tify the lessons learnt and worth sharing with other cit- ies. They will also increase their accountability to project One of the principal challenges for the design and the stakeholders and to development partners. management of projects, subsequently for M+E, will be to emphasise the outcomes. for example, change This M+E approach will be gradually made effective in work routines, enhanced participation) and impacts starting in �scal year 2010. The �eld experience will of projects (for example bene�ts for the urban poor), provide some �rst answers to concerns raised, such as; against the input (money spent), activities or output level (workshops, plans, studies). 107 2009 ANNUAL REPORT The portfolio review contributed to the reflection on the These levels are speci�es for main areas of action strategic orientation of the Cities Alliance and different for the Cities Alliance (CDS and SU project support, modes of delivery. Proposals were made regarding the knowledge sharing and learning, advocacy, and part- desirable composition of the portfolio in terms of grants nerships.) The draft results framework is still under re- allocated to LDCs and to secondary cities. Future port- vision, as it strongly correlates with discussions of priori- folio reviews will report on the achievements of these ties, approaches and governance of the Cities Alliance. targets. However, setting targets for the portfolio com- position are likely to include additional criteria for the se- M+E of the institutional performance should balance the lection of project proposals, indicating the need for cor- effort for obtaining the required monitoring data with the responding modi�cations to the Cities Alliance Charter. bene�t for correspondent decision making. This con- sideration relates M+E to the ongoing discussion in the The review also raised awareness regarding the involve- Cities Alliance about its governance structure: What is ment of Cities Alliance members in the implementation the nature of decisions to be taken by the Consultative of projects, as only relatively few Cities Alliance mem- Group, by the Executive Committee and by the Secre- bers have the operational capacity in the �eld to pro- tariat? Consequently, what type of information and what vide effective and comprehensive support. There is an level of detail is needed at each level? obvious need to rely more on existing, even if not fully suf�cient, capacities of Cities Alliance partner cities. An Adjustments of the objectives of the Cities Alliance, its external evaluation of client and of member executed modes of project implementation and of its governance projects has been commissioned to identify means of structure might be evolving with corresponding reper- adjusting Cities Alliance instruments and modes of proj- cussions on the results framework. ect implementation. The results, expected in FY 2010, will provide guidance on how Cities Alliance can sup- port ownership and capacity development, as well as Communications and Knowledge Sharing Activities how to make its procedures more client friendly. Cities Alliance at the Fourth World Urban Forum, Nanjing, China, November 2008 M+E of the institutional performance For the �rst time Cities Alliance provided a platform for Assessing institutional performance is the most chal- its members to co-exhibit at the fourth edition of the bi- lenging task. The Cities Alliance Charter contains sev- annual World Urban Forum in Nanjing, China. Organ- eral objectives and goals, but not in a way easily ac- ised by UN-HABITAT and the Chinese Ministry of Hous- cessible for M+E. Some of them are on a very abstract ing and Urban-Rural Construction the event had as its level, to which the contribution of theAlliance cannot be theme, �Harmonious Urbanisation�. Seven partners easily established, while others are more like guiding participated at the co-exhibition, namely; the League principles. The Medium Term Strategy 2008-2011 de- of Cities of the Philippines (LCP), the International La- �nes additional objectives at a more operational level. bour Organisation (ILO), the South African Department of Housing, the South African Cities Network (SACN), The secretariat presented a draft results framework Slum/Shack Dwellers International (SDI), the United as the reference for monitoring the institutional per- States Agency for International Development (USAID), formance. The results framework follows the logic of and ISTED. a result chain: activities undertaken by Cities Alliance secretariat and Cities Alliance members; outputs and In collaboration with the Brazilian government, Cities services generated through these activities; usage of Alliance also hosted a high level networking session these services; bene�ts. on “Land Markets, Poverty and the Right to the City�. The networking event was a great success. Speakers 108 CITIES ALLIANCE included representatives from the governments of Bra- zil, India, South Africa, and Spain, as well as the UN Special Rapporteur on the Right to Adequate Housing, Raquel Rolnick. The event provoked a lively debate on recent policy initiatives to integrate the poor into cities. With the success of the Nanjing event, the World Urban Forum once again proved its worth as the pre-eminent meeting place for vibrant exchanges and excellent net- working amongst urban practitioners. The 2010 WUF being organised by UN-HABITAT and the government of Brazil will be hosted by the city of Rio de Janeiro. Cities Alliance at the UCLG World Council meetings in Street scene in Istanbul, Turkey, with the New Mosque (Yeni Camii) at Istanbul, Turkey, November 2008 the background. © Ron Giling / Still Pictures Mayors, city of�cials, various local/regional authori- Ninth Public Policy Forum and Consultative Group Meet- ties and experts from some 50 countries attended the ings – Barcelona, Spain, January 2009 United Cities and Local Governments Executive Bureau The city of Barcelona in partnership with the world or- and World Council meetings in Istanbul, Turkey from ganisation of United Cities and Local Governments November 27-30, 2008. The Cities Alliance Secretariat (UCLG) hosted the ninth Cities Alliance Public Policy was represented by Urban Specialist, Jean-Christophe Forum from January 20-21, 2009. The Forum  focused Adrian. Discussions centred on three key topics: the on ways to improve the effectiveness of global devel- global �nancial crisis and its consequences, the poli- opment aid from the perspective of local government. cies of social inclusion, and the prevention of disaster Participants included Cities Alliance members, repre- risks. Local and regional leaders at the conference ex- sentatives of various donor agencies, local and regional pressed concern about the direct impact of the �nancial governments, development institutions, and members crisis on their cities and regions. of the Cities Alliance Secretariat. Climate change and UCLG’s increasing pro�le in the At the opening of the Forum, the mayor of Barcelona, international community also took centre stage. Partici- Jordi Hereu, declared, “Cities are ready to ful�ll their pants discussed the preparation of the second Global responsibilities to the most disadvantaged among their Report on Decentralization and Local Democracy citizens. We cannot, however, be truly effective unless (GOLD) which will focus on local �nance strategies and, we reinforce joint plans and strategies with all the actors like the �rst report, will be prepared with the support involved in development, and for this there needs to be of the Cities Alliance. At the strategic urban planning an agreement between local and national governments meeting, a number of cities made presentations high- and multilateral organisations.� lighting their experiences in conducting urban planning exercises. Presenters included Durban, South Africa; Hartwig Schafer, Director of Strategy and Operations Rosario, Argentina; Bilbao, Spain; Cologne, Germany; at the World Bank’s Sustainable Development Network Moscow, Russia; and Daewu, South Korea. Cases of Vice Presidency, reinforced the fact that one of the most decentralised cooperation in support of City Develop- effective ways to reach the poor was through local au- ment Strategies (CDS) were also presented including thorities. Mr. Schafer reiterated the World Bank’s ongo- Johannesburg-Lilongwe and Marseille/Barcelona-Trip- ing commitment to urban development cooperation, oli. and to its partnership with the Cities Alliance. 109 2009 ANNUAL REPORT Billy Cobbett, Manager of the Cities Alliance Secretar- iat, thanked both the city of Barcelona and UCLG for hosting the PPF, made more signi�cant by the fact that Spain is one of the newest members of the Cities Alli- ance. “The focus on development effectiveness in the PPF goes back to our founding mandate as captured in the Alliance charter, to help enhance coherence of effort,� said Mr. Cobbett. In a press release issued after the conclusion of the Fo- rum, participants highlighted the need for coordination at all levels—local, national and supranational—in order to combat poverty globally. They also stressed the im- portance of bringing in local authorities as real partners in urban development. In addition, Cities Alliance mem- bers announced their commitment to convening a bian- nual stakeholders forum to discuss urban policy devel- opment. The event will be organised jointly by UCLG and the Cities Alliance. Bangladesh: Using a raft made of trunks of banana tree, a family transports pots of drinking water after a flood near Mymensingh. © Shehzad Noorani / Peter Arnold Inc. Focus on Cities and Climate Change at Fifth Urban Research Symposium, Marseilles, June 2009. Cities Alliance Senior Urban Finance Specialist, Thierry Paulais and Juliana Pigey of the Urban Institute co-au- Over 600 participants from 82 countries came together thored one such paper titled, Adaptation and Mitigation: to present their work, share experiences, and debate What Financing Is Available for Local Government In- various aspects of climate change as they relate to cit- vestments in Developing Countries? The paper looks at ies at the Fifth Urban Research Symposium which held speci�c sources of funding available for climate change from June 28-30 in Marseilles, France. Sponsored by adaptation and mitigation investments of cities. It ar- the World Bank with the support of a wide range of gues that these funding sources are insuf�cient, highly partners, the symposium, under the theme, “Cities and fragmented and not really tailored to local governments. Climate Change: Responding to an Urgent Agenda,� The authors also point out the mismatch between the underscored the international community’s willingness needs of the recipients and the �nancing tools available to tackle this urgent global challenge.  to them. Topics discussed included the impacts of city and urban The Cities Alliance-supported Joint Work Programme growth on climate change; how to effectively measure on Cities and Climate Change was presented during a the effects of climate change on urban quality of life, city plenary session of the symposium. This partnership be- assets, and local and national economies; alternatives tween the Cities Alliance, UN-HABITAT, United Nations to increasing the resilience of cities; and related costs Environment Programme, and the World Bank provides and incentives required for successful implementation. a conducive space for these key development partners Participants called for new tools to �nance adaptation for deliberating upon and for advancing results based and mitigation policies, tools which are accessible to recommendations on how to address the urgent imper- local governments and which take into account the ative. Please see the CDS section of the Cities Alliance uniqueness of the territories they will be used in. in Action chapter for further details on this innovative Joint Work Programme. 110 CITIES ALLIANCE “The Places We Live�: Major Multimedia Exhibit Spon- sored by the Cities Alliance, USAID and the World Bank, September to November, 2009 In partnership with USAID and the World Bank the Cit- ies Alliance sponsored the presentation of a major in- teractive photo exhibit on slums called, “The Places We Live�, at the National Building Museum in Washington D.C. The sponsorship was part of the Alliance’ grow- ing advocacy efforts as well as to immediately support the hosting of the 2009 World Habitat Day celebrations in the home city for the World Bank, USAID and Cities Alliance. In the context of a growing interest by US policy mak- ers and general audiences in slums, and a concerted effort afoot in the US Congress to broaden the frontiers of the US Foreign Assistance Act to include increased funding for urban development, the highly successful exhibit provided US audiences with a �rst-hand look at slums and how slum dwellers live in the densely popu- lated cities of the developing world. Created by the Nor- wegian photographer, Jonas Bendiksen, and produced by Canon and Magnum Photos of Paris, “The Places We Live� is a multimedia photo documentary showcasing what it means to be an urban citizen in the develop- ing countries of the world in the 21st century. Visitors to “The Places We Live� ‘virtually’ visit about 20 families living in slum shacks in four major cities of the south: in the ‘barrios’ of Caracas, Venezuela; in the depths of Kibera, Africa’s largest slum settlement in Nairobi, Ke- nya; in Dharavi, one of Asia’s largest slum in Mumbai, India; and in the ‘kampongs’ of Jakarta, Indonesia.  Inside each room, the visitor sees a family in their home, hears them talk about daily life in the slums, the dangers of the environment in which they live, their work,  their joys, sorrows, hopes and fears. Bendiksen also cap- tures the enterprise and hard-work, hope and humour, and love and compassion that occur in these homes, found in some of the world’s most dif�cult environments. “The neighborhoods pictured in the exhibition are some of the densest and poorest places on earth. My goal was to capture the vast range of ways their inhabitants experience their surroundings—from the destitute to the ambitious and surprising,� said Bendiksen. © Jonas Bendiksen 111 2009 ANNUAL REPORT For Katherine Sierra, Vice President of Sustainable De- sation are growing stronger, paving the way for commu- velopment of The World Bank, “The Places We Live� nity participation and local-level decision-making. As vividly captures the diversity of slums and the resilience home to essential workers and the producers of goods of the people living in them….  The exhibit serves to in- and services, slums are starting to be recognised as spire us, but also increases our resolve to work as part- productive players in the urban economy. At the same ners with governments, slum dwellers, and concerned time, greater awareness of disparities is compelling the people everywhere.  Together, we must do all we can media, policy makers and citizens alike to take action. to eliminate the conditions that deny health, education, civil protection, and economic prosperity to the poorest Publications Review citizens among us.� USAID’s then Acting Administrator, Alonzo Fulgham re- Decentralisation and Local Democ- marked: “For the �rst time in history, more people live racy in the World: First Global Report in cities than in rural areas, and this shift will have a by United Cities and Local Govern- marked impact on international development efforts… ments 2008, UCLG, World Bank, Cit- We hope that the powerful images in the ‘The Places ies Alliance, Washington D.C., 2008. We Live’ exhibit will draw attention to this fact, and help Also known as the GOLD report highlight the unique development challenges facing the this is a global reference on de- hundreds of millions of urban poor in the developing centralisation, and presents the world.� contemporary situation of local governments in all regions of the world regardless of Cities Alliance, USAID, and The World Bank also lev- their size. Particular attention is paid to fast-urbanising eraged the opportunity of the exhibit in the US market countries of the South and the challenges they face. to sponsor a number of outreach and education ac- tivities on slums. It not only formed the backdrop for The report analyses local authorities in each continent World Habitat Day celebrations in the city held under under three main themes: (i) The evolution of territo- the auspices of the US Department of Housing and rial structures; (ii) Responsibilities and power; and (iii) Urban Development but also the backdrop for a World Management, �nances and local democracy. An addi- Bank sponsored discussion titled, “Is there New Hope tional chapter is dedicated to the governance of large for Slum Dwellers? Reflections from 30 years of Experi- metropolises, where rapid growth presents major chal- ence�. Per former World Bank urban planner and archi- lenges, in particular in the fast-developing countries of tect, Roberto Chavez, in a word, “Yes.� As he reflected the South. over the experience of past 30 years—both his own and that of the World Bank and other development institu- The report also offers a comparative overview of the dif- tions—Chavez noted that the issues slum dwellers face ferent realities concerning the state of decentralisation, are formidable. and how the basic indispensable mechanisms for local democracy do, or do not exist in some countries. Re- These include declining access to land and water on the lationships between the state and local authorities are one hand and increasing vulnerability to climate change evolving toward innovative forms of cooperation. In this and disasters on the other. Urban pathologies such as context, the role of local authorities in the development crime and violence are on the rise, especially in times of of global policies is increasingly recognised. The GOLD economic downturn. Yet, there are reasons for hope, for Report is the �rst of what will be a triennial publication. optimism: The forces of decentralisation and democrati- 112 CITIES ALLIANCE World Development Report 2009 to encourage concentration and promote convergence - Reshaping Economic Geog- in living standards between villages, towns and cities. raphy, Washington, D.C. World According to the report, it is the most important dimen- Bank, 2009 sion of development at the local scale. For the year under review a Distance – Migrating to reduce distance to economic benchmark year that saw half opportunity of the world’s population living in cities, the focus of the World Mobility is essential to economic growth of places; gov- Bank’s annual flagship report, ernments need to encourage the migration of people World Development Report was from rural to urban concentrations. Countries do not on cities as geographic spaces. Subtitled, Reshap- prosper without mobile people. In fact, people’s mobil- ing Economic Geography, the report argues that some ity may be the best gauge of their economic potential, countries are well-performing because they have pro- and their willingness to migrate to reduce their distance moted transformations along the three dimensions of to economic density a good measure of their desire for economic geography: advancement. • Higher densities, as seen in the growth of cities; • Shorter distances, as workers and businesses mi- The city of Guangzhou in China is what it is today be- grate closer to density; and cause of the late Deng Xiaoping’s understanding that • Fewer divisions, as countries thin their economic economic activity would be best concentrated close to borders and enter world markets to take advantage of the coast, and near Hong Kong, an established heavy- scale and specialisation. weight. China has lifted over 300 million people out of poverty and become the world’s fastest growing econ- Density – drawing people into cities omy. The Industrial Revolution drew people into cities like Division – Thinning economic borders to access re- London, Paris, and New York in the 19th century, often gional and global markets into big slums. But these people eventually escaped poverty; without cities, they might never have done so. But not everyone can move. In Africa, a third or more of Today, in places like Rio’s favelas, life can be dangerous the population lives in landlocked countries. The conti- and dif�cult. But virtually invisible from outside, there nent is divided by international boundaries. Here, divi- are scores of small businesses operating within. And sion is part of the legacy of colonialism—a tragic distor- while everyone is a squatter with no legal right to their tion of human, political and economic geography. land, hundreds of houses are being built. World Development Report makes it clear that the role Twenty-�ve years ago in an increasingly crowded Mum- of government remains important—not to spread out bai city, authorities tried to keep out more migrants and economic activity but to encourage mobility toward it, stopped building infrastructure. But people came any- and to ensure universal access to basic services such way, and Mumbai now has 16.5 million people, more as health and education. Higher densities, shorter dis- than half of whom live in slums. tances, and lower divisions will remain essential for eco- nomic success in the foreseeable future. They should “It would have been far better to anticipate this dynamic be encouraged. With them will come unbalanced pull of the city that helps people connect with economic growth. When accompanied by policies for integration opportunities and which serves as connector to the out- calibrated to the economic geography of places, these side world,� said Indermit Gill, lead author of the report. changes will also bring inclusive development. Getting density right requires harnessing market forces 113 2009 ANNUAL REPORT State of the World’s Cities An interesting new departure highlighted by the report 2008/2009: Harmonious Cities, is the phenomenon of shrinking societies and cities. UN-HABITAT, London, Earthscan, The populations of 46 countries, including Germany, 2008 Italy, Japan, most of the former Soviet states, and sev- eral small island states, are expected to be smaller in Released to coincide with the 2050 than they are now. These demographic trends are World Urban Forum, the re- reflected at the city level, as well. In the last 30 years, port examines the challenges more cities in the developed world shrank than grew. posed by the fact that some Negative growth trends are largely associated with cit- 3 million people are added ies in North America and Europe, where the number of to cities of developing world shrinking cities has increased faster in the last 50 years per week.  Half of humanity is now living in cities, but than the number of expanding cities. this dramatic transition is far from over. It asserts that globally, urbanisation levels will rise steadily over the Confronted by the global challenge of growing and next 40 years, to reach 70 percent by 2050. As cit- shrinking cities, Anna Tibaijuka, Executive Director of ies grow in size and population, harmony among the UN-HABITAT, points out in her introduction that, “Many spatial, social and environmental aspects of a city and cities and countries are addressing these challenges between its inhabitants becomes of paramount impor- and opportunities by adopting innovative approaches tance. The report identi�es equity and sustainability as to urban planning and management that are inclusive, the two key elements towards achieving this harmony. pro-poor and responsive to threats posed by environ- mental degradation and global warming.� She contin-  In planning for harmonious cities, the report highlights ues: “City and regional planning requires new methods some of the signi�cant changes in the exponential and techniques that respond to urban development, ex- growth of cities around the world. The main cause of ur- pansion and growth management, but also new meth- ban growth in most countries is not rural to urban migra- ods and techniques that respond to decline or outmi- tion, but natural increase – when births in cities outpace gration.� deaths. In countries with low levels of urbanisation, mi- gration is often the primary engine driving city growth, Transforming Mumbai as is the case in various countries in Africa and Asia. into a World Class City, In many countries, the largest movements of population Mumbai Transformation are taking place between cities and not from rural to Support Unit, Mumbai, urban areas. 2008   The report �nds that some of the fastest growing cities The city of Mumbai lies in the world are in China, where growth rates can be at the core of the larger higher than 10 per cent per year; this includes the cities Mumbai Metropolitan Region, which comprises seven of Chongqing, Xiamen and Shenzhen. This rapid shift municipal corporations and 13 municipal councils and has been brought about by the adoption of a pro-urban has a population of around 20 million. The per capita approach to economic development by the government GDP of the metropolitan region (Rs 62,000 [Indian ru- of China. In the case of Africa, the report notes that the pees]) is more than double that of the rest of Maharash- capitals and primary cities on the continent have the tra (Rs 28, 000). The Government of the state of Ma- highest growth rate. For example, Niamey, Niger; Dar harashtra, where Mumbai is located has embarked on es Salaam, Tanzania; and Lomé, Togo, all grew at an an ambitious programme of transformation of the city, annual rate of 4 per cent or more, while Kigali, the capi- focused primarily on providing improved infrastructure tal of Rwanda, experienced a soaring annual population services to its citizens. Cities Alliance has contributed to growth of 8.6 per cent from 2000 to 2005.  these tremendous efforts by funding a number of World 114 CITIES ALLIANCE Bank studies for the Government of Maharashtra and, Social Housing in São Paulo: more importantly, by funding the Mumbai Transforma- Challenges and New Manage- tion Support Unit (MTSU) in 2004, in collaboration with ment Tools, São Paulo: Mu- USAID, and the Government of Maharashtra under the nicipality of São Paulo, Cities aegis of the All India Institute of Local Self-Government Alliance and World Bank, 2009. (AIILSG). In June 2009, the Cities Alli- ance published the English- This unit provides dedicated and high-quality support language version of Social to the Government of Maharashtra and, in particular, to Housing in São Paulo: Chal- the Director of Special Projects, a post the city created lenges and New management Tools. The publication speci�cally to oversee the transformation. The Mumbai highlights Cities Alliance’s on-going technical coopera- report details the �rst phase of the transformation pro- tion with the São Paulo Municipal Housing Secretariat cess, In the Foreword to the well designed publication, (SEHAB) on urban projects dating from 2001. It pres- UPS Madan, Project Manager, MTSU called it “a report ents the results of the second phase of the partnership, card of sorts, seeking to showcase and share with all developed between 2005 and 2008. The goal in this lat- the efforts made by the MTSU over the past two years; est phase was to establish a set of management tools it is also indicative of what we could have in store. Here to facilitate the continuation of strategic planning with is a much bigger body of work behind us than we have respect to municipal housing. covered in this document.� It documents the more than 40 projects undertaken to improve economic growth Social Housing is based largely on the development of in Mumbai, reduce poverty and enhance quality of life HABISP – a leading-edge central database containing for residents, especially slum dwellers. These focus on detailed information about São Paulo’s precarious settle- physical and social infrastructure, environment, hous- ments, informal land subdivisions and slum tenements. ing, governance, strategic planning and economic A central feature of HABISP is its ability to provide moni- growth, ranging from slum rehabilitation to rent controls toring indicators and ranking of neighbourhoods based to the construction of a new international airport at Navi on a set of pre-de�ned priority criteria. Mumbai. São Paulo has become an important model for Cities Al- Tangible results during Phase I include: liance in its support for cities around the world. São Pau- lo is also recognised as having invested in sustainable • The formulation of a housing policy for the state slum upgrading programmes and for legitimising land of Maharashtra (declared in 2007). tenure in subdivisions on a city wide scale by appropri- • The repeal of an obsolete act that put a ceiling ating substantial budgets, a key component of munici- on urban land holding. pal administration from year to year. Continuous support • The beauti�cation and upkeep of historic and funding from all three levels of government – local neighborhoods and buildings. state and federal - demonstrate the priority given to com- bating urban poverty and promoting economic growth. 115 2009 ANNUAL REPORT • How to adapt to the changes that global warming is bringing or will bring — for instance, increased storms, flooding, landslides, heat waves and possibly water scarcity • How to reduce greenhouse gas emissions (miti- gation) in order to slow and eventually stop human in- duced global warming, and • The framework of external support from higher lev- els of government and international agencies that will help city governments to respond. It also spells out various climate change-related steps that can be taken by city governments, both in terms of adaptation and mitigation.   The second issue titled, “Can adapting to climate change also meet development goals in cities in de- veloping countries?� looks at the multiple links between good development policies, adaptation, and most di- CIVIS Notes Series relaunched saster risk reduction. It avers that realising these re- quires competent city governments being able to work The year under review also saw the relaunch of a re- with low-income groups and their organisations. A city designed CIVIS Notes series. The notes series shares with its citizens living in good quality housing, served knowledge and learning arising from Cities Alliance by piped water, sewers, drains, all-weather roads, and projects and other activities in slum upgrading and city emergency services is inherently resilient to most cli- development strategies. It also serves as a platform for mate change impacts. policy dialogue and debate among city development stakeholders, including national and local governments, donors and slum dwellers to impact change in the lives of the urban poor and advance the urban development agenda. The relaunch was executed with a four-issue series on climate change prepared in partnership with the Hu- man Settlements Group at the International Institute for Environment and Development (IIED).  Climate change is dealt with from a very simple, layman’s perspective easily understandable by city stakeholders and practi- tioners not readily familiar with the subject matter. The �rst issue, “What does this mean for your city?� dis- cusses three critical issues for cities as far as climate change is concerned; 116 CITIES ALLIANCE Other exciting features of the new website include: • A new “Our Members� section that highlights Cities Alliance’ members • A Media Centre with news, features, multimedia, is- sue briefs, press releases, events and that will host our photo gallery; • Expanded information about Cities Alliance’s two key business lines, CDS and slum upgrading, including Fact Sheets, Case Studies and Project Pro�les; • A searchable Database of our publications (knowl- edge resources to follow shortly); • Improved search functionality site-wide, with both a simple keyword search and an advanced search; • Top menu navigation so that users can quickly ac- cess any page from anywhere on the site. Consultative Group members can now access the Launch of Redesigned Cities Alliance Website Members Pages with their own unique passwords. This section also includes a dynamic new homepage that features a “From the Manager’s Desk� section, recently Cities Alliance also launched its newly redesigned web- approved projects and new additions to our publica- site under the open content management system during tions and resources database. the year under review. Repositioned as a knowledge- driven website, the new website has a fresh look, ex- The plan is to keep expanding the site and make it as panded content increasingly tied directly to speci�c the dynamic and interactive as possible. Users are encour- Alliance activities and events, all presented in a more aged to visit www.citiesalliance.org to explore some of user-friendly manner. the new features in detail, and provide their feedback by clicking on the link, tell us what you think. One of the most exciting additions to the new site is the searchable Project Database, the outcome of sustained work by the Secretariat’s Erika Puspa. Users can ac- cess Cities Alliance project portfolio either through a search function or with the clickable Project Maps. A mini version of the Project Map is available on the home page while the more navigable version is available from the Projects page at www.citiesalliance.org/ca/project_ database 117 2009 ANNUAL REPORT CITIES ALLIANCE ORGANISATION Cities Alliance Organisation Policy Advisory Board members meeting in Tunis, 2007. Since its establishment in 1999, the governance and or- Other notable changes within the governance and or- ganisational structure of the Cities Alliance has increas- ganisational structure of the Alliance for the period un- ingly reflected the changing dynamics of the urban de- der review include revisions to the role and composition velopment debate. As at 2001 for example, only the two of the Policy Advisory Board (PAB), in addition to that founding members represented multilateral develop- of the Steering Committee. Comprising world renowned ment organisations on the Cities Alliance Consultative urban experts the Policy Advisory Board had been Board. Local authorities were represented by the then charged with providing guidance to the Consultative separate associations of local authorities: International Group on key strategic, policy and regional issues and Union of Local Authorities (IULA); Metropolis; World to support the implementation of Alliance’s activities. Federation of United Cities (FMCU-UTO) and World These, its well-pedigreed members discharged credit- Association of Cities and Local Authorities Coordina- ably, raising the bar to the highest levels on the debate tion (WACLAC). Bilateral government members com- and approaches to urban development challenges and prised primarily of the G7 countries—Canada, France, opportunities to the highest levels both within the Cit- Germany, Italy, Japan, United Kingdom and the United ies Alliance and without. The Board met twice a year States—plus the Netherlands, Norway and Sweden. and comprised eight members who individually served two-year terms on a rotational basis. Past PAB mem- Roll forward to the year 2004 and we had local authori- bers included: Juanita D. Amatong of the Philippines, ties now being represented on the Consultative Board Somsook Boonyabancha of Thailand, Jose Forjaz of by the United Cities and Local Governments (UCLG), Mozambique, Yousef Hiasat of Jordan, Mary Houghton the newly formed amalgamation of the existing local of the United States, Akin L. Mabogunje of Nigeria, Jean bodies, and by Metropolis. The Asian Development Pierre Elong Mbassi of Cameroun, Sheela Patel of India, Bank and United Nations Environment Programme Clare Short, MP of the United Kingdom, Paulo Texeira joined UN-HABITAT and the World Bank as representa- of Brazil, Ana Vasilache of Romania, and Richard Webb tives of multilateral development organisations. Howev- of Peru. er, the landmark membership was that of Brazil, which became the �rst developing country to join the Cities Al- With the adoption of the Alliance’ Medium Term Strategy liance in 2003, a signal and tacit recognition of the fact 2008 – 2011 at the Manila Consultative Group meetings that it would take the proactive involvement of the devel- however, the consensus was not to renew the rotation of oping regions of Asia, Latin America and Sub-Saharan the PAB membership and to rather redirect its focus to Africa, the loci of the most rapid urbanisation rates and more of an advocacy than a policy or advisory function. a consequent urbanisation of poverty to engender more The Advocacy Panel currently has one member, Clare meaningful and sustainable interventions on the issue. Short, MP. Nigeria became the �rst African country to join 2005, At the same meeting the role and composition of the followed by South Africa and Ethiopia in 2006, as well Steering Committee was enhanced through its trans- as the Philippines and Chile. Another seismic member- formation into an Executive Committee, now to provide ship was that of the Slum/Shack Dwellers International policy guidance to the Secretariat, as well as review in 2007, representing this key constituency of the urban and approve the Secretariat’s budget, and staf�ng. The poor on the Cities Alliance Consultative Board. Executive Committee is currently chaired by Elisabeth Gateau, Secretary General of UCLG. Above: Policy Advisory Board members meeting in Tunis Left: The Duamnuen Saduak floating market in Thailand. © JTB / Peter Arnold Inc 119 2009 ANNUAL REPORT On this the 10th anniversary of its founding the Cities Group approval of amendments to the Cities Alliance Alliance’s governance and organisational structure Charter, the 2001 work programme, and procedures to comprises a 26-member Consultative Board, an Execu- establish the Policy Advisory Board and the Steering tive Committee, an embryonic Advocacy Panel, and the Committee. Secretariat that manages the day-to-day functions of the Alliance. Kolkata, December 2001—Third Public Policy Forum (“Sustainable Partnerships for City Development�), The Consultative Group Consultative Group review of procedures for the �rst independent evaluation of the Cities Alliance and ap- The Consultative Group(CG)—the Cities Alliance’s proval of the 2002 work programme. board of directors—remains responsible for setting the Alliance’s long-term strategy, approving its annual work Brussels, October 2002—Panel discussion at the programme and budget, and reviewing its achieve- European Commission (“Achieving the Millennium De- ments. The Consultative Group consists of �nancial velopment Goal of Cities without Slums�), Consultative contributors to the Cities Alliance Trust Fund and the Group review of the independent evaluation of the Cities political heads of United Cities and Local Governments Alliance and approval of the 2003 work programme. and Metropolis who have pledged their commitment to achieving Cities Alliance goals. Representatives of São Paulo, October 2003—Fourth Public Policy Forum the co-founders of the Cities Alliance, the World Bank (“Sustainable Financing Strategies for Cities and Finan- and UN-HABITAT continue to co-chair the Consulta- cial Services for the Urban Poor�), Consultative Group tive Group who meet yearly at selected destinations, approval of procedures for developing country mem- with Mumbai selected as the venue for the anniversary bership in the Consultative Group and approval of the meeting of the CG. 2004 work programme. Meetings eThekwini (Durban), November 2004—Fifth Public Policy Forum (“Making City Development Strategies Consultative Group meetings are held annually in con- Come Alive in South Africa�), Consultative Group ap- junction with a public policy forum designed to share proval of new Policy Advisory Board members and the the lessons learned from experience and inform policy 2005 work programme. orientations and standards of practice in areas related to the Alliance’s goals. Following is a list of Consultative Marrakech, November 2005—Sixth Public Policy Fo- Group meetings held since 1999: rum (“Morocco’s Cities Without Slums Programme�), Consultative Group review of procedures for the sec- Berlin, December 1999—Inaugural meeting, at which ond independent evaluation of the Cities Alliance and the Cities without Slums action plan was launched un- approval of the 2006 work programme. der the patronage of President Nelson Mandela, and the Charter of the Cities Alliance and its 2000 work pro- Washington, D.C., November 2006—Seventh Public gramme were approved. Policy Forum (“Environment, Poverty and Development in an Urbanising World�), Consultative Group discus- Montréal, June 2000—First Public Policy Forum (“Po- sion and approval of the �ndings of the second inde- litical Dimensions of Support for Cities�), Consultative pendent evaluation. Group review of application guidelines and approval of the Cities Alliance Vision Statement. Manila, Philippines, November 2007 – Eighth Public Policy Forum ( “Leveraging Resources for Liveable Cit- Rome, December 2000—Second Public Policy Forum ies�), Consultative Group review and discussion of New (“Local Partnerships: Moving to Scale�), Consultative Medium Term Strategy 2008 – 2010. Steering Commit- 120 CITIES ALLIANCE tee was restructured as the Executive Committee while • Sweden it was also decided to rede�ne and restructure the Pol- • United Kingdom icy Advisory Board. • United States Barcelona, Spain, January 2009 – Ninth Public Policy Forum (“Local Government Perspectives on the Effec- tiveness of Development Aid�), Participants highlighted Multilateral organisations the need for coordination at all levels—local, national • Asian Development Bank and supranational—in order to combat urban poverty • The European Union globally. They also stressed the importance of bringing in local authorities as real partners in urban develop- • UNEP ment. • UN-HABITAT • World Bank Consultative Group Members as of June 2009 Local authorities The Executive Committee • United Cities and Local Governments Set up by the Consultative Group the strengthened Ex- • Metropolis ecutive Committee is to provide guidance to the work programme of the Secretariat. The �rst meeting of the The Urban Poor Committee was held in Trondheim, Norway where it for- mally approved amendments to the MTS. • Slum/Shack Dwellers International Executive Committee Members as of June 2009 com- prised UCLG (Chair), Brazil, France, Norway, South Af- Governments rica, UN-Habitat, World Bank. • Brazil • Commonwealth of Australia The Secretariat • Canada As with the Consultative Group, the Cities Alliance Sec- • Chile retariat has witnessed growth and staf�ng changes re- • Ethiopia flective of the increasing pro�le of urban and the con- comitant increase in the volume of activities. Staff have • France joined and left over the years with the most noteworthy • Germany being the retirement of the founding programme man- ager, Mark Hildebrand in 2006 and the appointment • Italy of William (Billy) Cobbett as programme manager. The • Japan year 2009 probably saw the highest increase in new • Netherlands staff, in line with the objective to implement the Medium Term Strategy 2008 - 10. Julian Baskin joined in January • Nigeria 2009 to the newly created permanent position of Senior • Norway Urban Specialist (Slum Upgrading), to oversee the Cit- • Philippines ies Alliance slum upgrading work programme and co- ordinate and monitor the portfolio, in addition to work- • South Africa ing with members and prospective partners to develop • Spain strategic upgrading programmes. 121 2009 ANNUAL REPORT The Communications team was strengthened with the Cities Alliance Secretariat Teams as at June 30, 2009: recruitment of Iraj Hettiarachchi as Communications As- sociate and Juliet Bunch as Web Editor. Two Research Front of�ce Analyst positions funded by the government of Norway, William Cobbett Manager one with a focus on Gender and Youth in urban and the Sid Henderson Sr. Programme Assistant other on cities and the Environment were �lled by Hilde Neelam Tuteja Programme Assistant Refstie and Alex Ricardo Jimenez respectively. Rodolfo Gaspar Jr. joined as Information Management Assistant while Phyllis Kibui joined the Programme Operations Programme Operations Team team as Operations Coordinator. Kevin Milroy Sr. Operations Of�cer/ Deputy Manager Cities Alliance regional operations were also beefed up dur- Madhavan Balachandran Financial Management Specialist ing 2009, in recognition of the need for more direct response Françoise Aubry-Kendall Resource Management Analyst to clients on the ground and the increasing signi�cance of Erika Puspa Information Management Analyst Sub Saharan African operations. Tewodros Tigabu joined as Rodolfo Gaspar, Jr. Information Management regional advisor for east and Central Africa, based in Addis Assistant Ababa while Mamadou Diagne was appointed regional ad- Viorica Revutchi Programme Assistant visor for West Africa, located in Abidjan, Côte d’Ivoire. Both Ildiko Csorba Programme Assistant join Adele Hosken in Pretoria as regional advisor for south- Phyllis Kibui Consultant ern Africa and Dhiraj Ajay Suri as advisor for South Asia. (Programme Operations) Berta Sarria Temporary (Resource Mgmt.) The year 2009 also saw some sad departures from Cit- ies Alliance, including that of Giorgio Romano Schutte, Slum Upgrading Team formerly regional Advisor for Brazil who played a key Julian Baskin Sr. Urban Specialist role in a number of high pro�le projects; and that of Ste- Andrea Merrick Urban Specialist fan Agersborg who served as a Consultant supporting Hilde Refstie Research Analyst the Programme Operations Team with document collec- Celine D’Cruz Urban Specialist tion and data input. CDS Team Jean-Christophe Adrian Urban Specialist Andrea Haer Urban Specialist Ricardo Jimenez Research Analyst Communications Chii Akporji Communications Of�cer Juliet Bunch Web Editor Iraj Hettiarachchi Communications Associate Monitoring and Evaluation Team Günter Meinert Sr. Urban Specialist Financing for Africa Special Programme (with AfD) Thierry Paulais Sr. Urban Finance Specialist 122 CITIES ALLIANCE Cities Alliance Secretariat Teams as at June 30, 2009: Regional Of�ces São Paulo, Brazil Ana Claudia Rossbach Regional Advisor Mariana Kara Jose Research Analyst Regianne Bertolassi Programme Assistant Addis Ababa, Ethiopia Tewodros Tigabu Regional Advisor Abidjan, Cote d’ lvoire Mamadou Diagne Regional Advisor New Delhi, India Dhiraj Ajay Suri Regional Advisor Pretoria, South Africa Adele Hosken Regional Advisor Mobile food vendor, Bangkok, Thailand. © William Cobbett/Cities Alliance 123 2009 ANNUAL REPORT FINANCIALS Ten Years of Cities Alliance Finances From its inception, the Cities Alliance has received A prominent feature of the Cities Alliance has been the strong support from the main international development participation of developing country governments, which agencies that give priority to city and urban develop- are allowed full membership for a minimum annual con- ment issues. Ten donor governments pledged at least tribution of $50,000. Six governments have made this �- the minimum $250,000 membership contribution during nancial commitment: Brazil, Chile, Ethiopia, Nigeria, the the inaugural meeting of the Cities Alliance Consultative Philippines, and South Africa. Starting in 2007, Brazil Group (Berlin, 1999) or in the immediate months after- voluntarily increased its annual contribution to $75,000. wards. All of the G-7 nations plus the Netherlands, Nor- way, and Sweden joined the World Bank, UN-HABITAT, The leading international network of slum dweller or- and the organised representatives of cities and local ganisations, Shack/Slum Dwellers International (SDI), governments as founding members of the Alliance. joined the Alliance in 2007, with its annual membership contribution funded by the government of Norway. United Cities and Local Governments (UCLG) and Metropolis currently represent cities on the governing Most of Cities Alliance funding has been used for a board, holding four seats with no annual membership grant facility for slum upgrading and city development contribution required. strategy projects, serving all developing regions. The main business line of the Alliance is administration of The initial budget taken to Berlin in December 1999 the grant facility, complemented by a small portfolio of called for mobilising $40 million during the �rst three learning, knowledge sharing, and communication ac- years (2000–02). Although it took four years for Cities tivities implemented by the Cities Alliance Secretariat. Alliance members to meet that target, the Alliance’s �nancial picture has remained strong. The Alliance’s During the early years of the Alliance, most grant facil- founding members committed more than $120 million ity projects were executed by the World Bank and UN- during its �rst 10 years. HABITAT on behalf of the bene�ciary cities and coun- tries. In recent years, an increasing share of projects is Additional commitments of more than $6 million have executed directly by country-level recipients, following been made by new development agencies joining the an alignment of Cities Alliance policy with the aid ef- Alliance, including three new multilaterals UNEP, the fectiveness agenda. During �scal 2009, the funding for Asian Development Bank [ADB], the European Union nearly 60 percent of approved projects went to national [EU]) and the governments of Australia and Spain. and local governments or their civil society partners. The Khan el Khalili shopping district in Cairo, Egypt. © Diana Haertrich / transit / Still Pictures 125 2009 ANNUAL REPORT Fiscal Year 2009 Highlights Cities Alliance members sponsored 17 new city devel- opment strategies (CDSs) and slum-upgrading projects as part of the $11.6 million work programme approved during �scal year 2009, including $9 million approved from core funds. The core fund approvals were 17 per- cent higher than in �scal year (FY) 08, and disburse- ments were up 5 percent. Projects in Latin America and the Caribbean were the largest regional recipients of grants in FY09, receiv- ing US$2.1 million in allocations, 18 percent of the to- tal approved. Projects in Sub-Saharan Africa and Asia received 16 percent of grant funding. More than 50 percent of funding was allocated for global and multire- gional activities, including funding of the Cities Alliance Secretariat. Also included was nearly $1.4 million in joint work programme activities with Alliance members, most focused on learning and knowledge activities, such as environment, climate change, and municipal �nance. The �nancial highlight of FY09 was a commitment of $15 million to the Cities Alliance from the Bill and Melinda Gates Foundation for of the Land, Services and Citi- zenship programme. The project will be implemented in �ve low-income countries, working programmatically to facilitate a partnership between area-based organi- sations of slum dwellers with all levels of government. The project is supported by Cities Alliance members to develop citywide strategies to upgrade existing slums and to help cities and their citizens plan and implement strategies for future growth. Jankara Market in Lagos, Nigeria. © Mark Shenley/ Still Pictures 126 CITIES ALLIANCE Grant Recipients for Country-Speci�c Projects (Fiscal Years 2007, 2008 and 2009) (11) (14) 60% 55% 56% 50% (7) 41% 40% (4) 30% (4) (5) 24% 20% (3) 20% 20% (3) (2) (2) (2) 15% (5) 12% 10% 12% 12% (1) (1) 10% 8% (1) 4% 6% 6% 0 FY 2007 FY 2008 FY 2009 Development Co-operation/International/Regional Organisations National Government Municipal /Sub-National Network/Association/Foundation Academia/research Institutes NGOs/Civil Society Note: Projects do not include (1) Secretariat budget managed allocations, (2) Land, Services and Citizenship for the Urban Poor global activities (Gates Foundation) and (3) Regional and global projects. Cancelled projects were included in the calculation. 127 2009 ANNUAL REPORT SOURCES OF FUNDS FY00--FY09 (Unaudited) (US$ as of 30 June 2009) SUMMARY Type of funding Pledges Paid-in Core funding 67,618,880 60,958,699 Non-core funding 70,047,947 68,697,744 Non-core Secretariat funding 9,901,079 8,735,481 Total Funding 147,567,906 138,391,924 Paid In (a) Donor Pledges Duration FY09 Cumulative Core funding ADB 1,250,000 2002-2003, 2005-2007 0 1,250,000 Australia 750,000 2008-2010 750,000 750,000 Brazil 450,000 2004-2010 225,000 375,000 Canada 1,500,000 2000-2001, 2003-2006 0 1,585,293 Chile 50,000 2008 50,000 50,000 Ethiopia 250,000 2006-2010 49,975 149,975 European Commission 1,000,000 2009-2011 0 0 France 2,100,000 2000, 2002-2008 101,158 2,003,387 Germany 2,950,000 2000-2009 333,600 2,762,027 Italy 4,140,000 2000-2008 562,320 4,266,225 Japan 2,000,000 2000-2006 0 1,750,000 Netherlands 3,500,000 2000-2004, 2006-2008 249,970 3,499,940 Nigeria 50,000 2005 0 50,000 Norway 5,905,000 2000-2008 1,089,666 6,014,175 Philippines 50,000 2008 0 50,000 Shack Dweller Int’l 100,000 2008-2009 50,000 100,000 South Africa 250,000 2006-2010 50,000 150,000 Spain 2,250,000 2008-2010 0 2,321,400 Sweden 6,125,000 2000-2012 800,993 5,085,397 UNEP 1,100,000 2003-2007 0 1,100,000 UN-HABITAT 400,000 2004-2007 0 400,000 United Kingdom 7,100,000 2000-2007 (6,675) 7,500,148 United States 3,498,880 2000-2010 0 2,461,053 World Bank 20,850,000 2002-2010 2,694,945 17,284,679 Total core 67,618,880 7,000,952 60,958,699 Non-core funding(b) Canada 75,000 2004 0 73,608 France 375,000 2008-2009 128,620 207,420 Gates Foundation 15,000,000 2009-2012 14,999,980 14,999,980 Italy 13,135,000 2001-2008 421,740 12,700,518 Japan 5,000,000 2000-2006 0 4,250,000 Netherlands 350,000 2003-2004 0 350,000 Norway 3,200,000 2002-2007 0 3,272,992 Sweden 8,734,000 2003-201 237,996 9,083,649 UNEP 15,000 2007 0 15,000 United Kingdom 22,620,000 2001-2008 1,843,596 22,200,630 United States 843,947 2003-2008 843,947 World Bank 700,000 2001 0 700,000 Total non-core 70,047,943 17,631,932 68,697,744 Non-core Secretariat funding(c) World Bank 3,086,079 2000-2002, 2006-2009 6,844 3,086,079 UN-HABITAT 2,523,000 2000-2011 180,000 2,163,000 Sweden 685,000 2005-2008 0 729,402 Other 3,607,000 2001-2012 400,000 2,757,000 Total 9,901,079 586,844 8,735,481 Note: Fiscal year covers the period July 1, 2008 through June 30, 2009. (a) Amounts may vary from amounts pledged because of exchange rate fluctuation. (b)Non-core funding is earmarked for a specific facility, region, or activity. The facilities include the Community-Led Infrastructure Finance Facility, the Cities Without Slums Facility for Sub-Saharan Africa, the Slum Upgrading Facility, and the Land, Services and Citizenship project. (c) Secretariat funding includes in-kind funding for staff secondments from UN-HABITAT, Germany, France and Sweden. 128 CITIES ALLIANCE USES OF FUNDS, FY00--FY09 (Unaudited) (US$ as of 30 June 2009) SUMMARY FY09 Cumulative Funding source Allocations Disbursements Allocations Disbursements Core activities 8,983,359 7,419,772 62,319,234 48,100,935 Non-core activities 2,576,844 4,874,270 63,060,900 53,060,982 Total Uses of Funds 11,560,203 12,294,042 125,380,134 101,161,917 APPROVALS BY TYPE OF ACTIVITY FY09 Cumulative Type of activity Core Funds Non-core funds Core funds Non-core funds City development strategies 3,858,289 240,000 19,117,013 3,559,495 Scaling up upgrading 1,715,070 100,000 16,112,156 41,096,117 CDS and upgrading 810,000 1,650,000 15,380,065 8,961.709 Secretariat 2,600,000 586,844 11,710,000 9,443,579 Total approved grants 8.983,359 2,576,844 62,319,234 63,060,900 APPROVALS BY REGION FY09 Cumulative Region Core funds Non-core funds Core funds Non-core funds Sub-Saharan Africa 1,419,000 415,000 11,775,896 4,322,695 Asia 325,000 0 12,011,220 3,396,775 Eastern Europe & Central Asia 621,000 0 2,990,327 0 Latin America & the Caribbean 1,738,976 375,000 10,207,816 14,752,475 Middle East & North Africa 134,833 0 4,522,564 0 Global/Multiregional 2,144,550 1,200,000 9,101,411 31,145,376 Secretariat 2,600,000 586,844 11,710,000 9,443,579 Total approved grants 8,983,359 2,576,844 62,319,234 63,060,900 SECRETARIAT EXPENDITURES Expense FY09 FY08 Y07 Cumulative Operational: Secretariat staff* 1,402,440 1,326,223 1,040,371 7,881,605 Consultants, other labour 205,829 255,704 104,053 1,032,502 Travel 400,721 385,894 332,892 2,724,971 Other costs 21,373 50,093 35,374 805,250 Subtotal 2,030,363 2,017,914 1,512,690 12,444,328 Management and administration Secretariat staff 974,668 848,151 859,494 6,793,100 Rent, computing, other costs 338,324 335,662 259,544 2,025,400 Subtotal 1,312,992 1,183,813 1,119,038 8,818,500 Total 3,343,355 3,201,727 2,631,728 21,262,829 *Includes an in-kind Project Staff for the Financing of African Cities: Stakes, Issues & Tools Project. 129 2009 ANNUAL REPORT NEW and ON-GOING ALLOCATIONS as of 30 June 2009 FY (appr.) Grant Amount (US$) Start Date Country Activity SUB-SAHARAN AFRICA REGION FY06 330,000 Apr-06 Benin Development Strategy for Greater Cotonou FY08 250,000 Benin Urban development and rehabilitation strategy for the city of Abomey FY06 330,000 Apr-06 BurkinaFaso Strategy for Developing Greater Ouagadougou and Improving Basic Infrastructure and City Services in Underprivileged Areas FY06 500,000 Feb-07 Cameroon Urban Development and Poverty Reduction Strategy: City of Douala and its Greater Urban Area FY08 74,000 Dec-07 Ethiopia Establishment of Ethiopian Cities Network (ECN) FY09 75,000 Aug-08 Ghana Preparatory Grant Request Towards Ghana’s New Direction In Support Of Sub National Government Infrastructure Development And Service Delivery FY08 71,000 Jun-08 Liberia Preparation of Monrovia Slum Upgrading Initiative FY08 71,375 Jun-08 Malawi Preparatory Grant for Development of Lilongwe CDS FY08 360,000 Apr-08 Mali National program for slum upgrading and reduction of substandard settlements in the cities of Mali - Cities of Mali without Slums FY06 75,000 Oct-05 Mozambique Slum Improvement Demonstration Project for Maputo City FY09 52,500 Jan-09 Mozambique Preparatory Grant for the Development of a State of Mozambican Cities Report FY09 353,000 Jun-09 Mozambique Slum Upgrading and City Development Strategy for Nampula City FY08 250,000 Nigeria Preparation of State of the Cities Report FY09 240,000 Mar-09 Regional Building Partnerships for Cities Without Slums in Western Africa FY09 193,500 Feb-09 Regional Development and Adaptation of Quick Guides for Policy Makers on Housing the Poor in African Cities FY06 380,000 Apr-06 Senegal Greater Dakar Urban Development Strategy FY06 430,000 Feb-07 Senegal National Programme for Slum Improvement and Slum Upgrading in Senegal’s Cities: “Senegalese Cities without Slums� FY06 500,000 Jun-06 South Africa Upgrading for Growth: Implementing the Breaking New Ground Policy within Ekurhuleni’s City Development Strategy FY06 535,000 Jun-06 South Africa The Tshwane Sustainable Human Settlement Strategy and Financing Plan FY08 500,000 Mar-08 South Africa Strengthening the South African National Upgrading Support Programme FY09 100,000 Mar-08 South Africa Strengthening the South African National Upgrading Support Programme- USAID Co�nancing FY08 240,000 Mar-08 Swaziland Supporting the Design of a CDS-based Local Government System in Swaziland FY05 360,000 Sep-04 Tanzania Action Plan to Upgrade All Informal Settlements in Dar Es Salaam by 2015 FY07 73,956 Dec-07 Tanzania Establishment of Tanzania State of the Cities Report (Preparatory Phase) FY09 370,000 Apr-09 Togo Greater Lomé Urban Development Strategy FY09 450,000 Uganda Development of the National Urban Policy and Strategic Urban Development Plan 130 CITIES ALLIANCE NEW and ON-GOING ALLOCATIONS as of 30 June 2009 FY (appr.) Grant Amount (US$) Start Date Country Activity ASIA REGION FY05 215,000 Nov-05 Bhutan Bhutan National Urban Development Strategy and Thimphu City Development Strategy FY07 14,775 Dec-06 Bhutan UNEP Co�nancing of Bhutan National Urban Development Strategy and Thimphu CDS FY08 180,000 Cancelled Cambodia Improvement of Living Environment in Flood Prone Slum Areas in Cambodia through Community-based Waste Management Strategies FY06 250,000 Sep-06 China Shanghai Development Strategy in Regional Context FY04 182,600 Jul-04 India Community-Led Sangli Toilet Construction Activity FY08 500,000 Jul-08 India Transformation of Mumbai into a World Class City - Phase II FY05 180,700 Feb-05 India Hyderabad City-Wide Slum Upgrading Action Plan FY05 154,700 Mar-05 India Visakhapatnam City Development Strategy and Slum Upgrading Action Plan FY06 184,268 Dec-05 India City Development Strategy for Hubli-Dharwad FY07 75,000 Jan-07 India Urban Institutional Strengthening and Capacity Enhancement Project FY07 75,000 Mar-07 India Urban Strategy for India 2025 and Mega Cities Strategy FY07 74,419 Apr-07 India Bruhat Bangalore comprehensive development and slum upgradation strategy FY08 75,000 Apr-08 Indonesia Making Urban Investment Planning Work. Building on the Indonesian CDS Process FY06 500,000 Nov-05 Mongolia Citywide Pro-poor “Ger Upgrading Strategy and Investment Plan� (GUSIP) FY07 75,000 May-07 Nepal Preparation of a Proposal - Nepal: Slum Upgrading Strategies and Investment Program� FY06 541,100 Oct-05 Philippines City Development Strategies in the Philippines: An Enabling Platform for Good Governance and Improving Service Delivery FY06 500,000 Jul-06 Philippines A Metro Manila ‘Cities Without Slums’ Strategy FY08 196,500 Oct-08 Philippines Review of the Cities Development Strategy Program in the Philippines and Preparation and Publication of the State of Philippine Cities Report FY09 250,000 Mar-09 Philippines Towards a Local Economic Development Strategy in Quezon City FY08 100,000 Jun-08 Regional South Asia Regional Adviser FY09 75,000 Jan-09 Regional South Asia Regional Adviser - increase FY09 75,000 Jan-09 Multi-country Preparatory Proposal to Support Fiji Islands, Samoa and Papua New Guinea Implement their Commitments under the Paci�c Urban Agenda (PUA) through the Preparation of CDS/Settlements Upgrading Strategies FY08 500,000 Nov-07 Sri Lanka Pro-poor Partnerships for Participatory Settlement Upgrading in Sri Lanka FY07 357,225 Cancelled Vietnam City Development Strategy focusing on Urban Environment Management in Haiphong City FY07 75,000 Apr-07 Vietnam Urban Planning in a Rapidly Urbanizing Setting - Danang 131 2009 ANNUAL REPORT NEW and ON-GOING ALLOCATIONS as of 30 June 2009 FY (appr.) Grant Amount (US$) Start Date Country Activity EASTERN EUROPE AND CENTRAL ASIA REGION FY09 250,000 Jun-09 Albania Albania Tirana City Development Strategy FY08 210,100 Cancelled Azerbaijan Municipal Development Strategies – Azerbaijan FY09 300,000 Nov-08 Georgia Tbilisi City Development Strategy for Sustainable Development FY09 71,000 Oct-08 Tajikistan City Development Strategy Elaboration of a Full-Scale Project Document LATIN AMERICA AND THE CARIBBEAN REGION FY09 499,006   Argentina A Way Forward – Argentina City Development Strategies for Three Municipalities in the Province of Buenos Aires FY06 450,000 Oct-05 Brazil Strategies for the Sustainable Planning, Financing, and Implementation of Low-Income Housing and Urban Development Policy (Municipality of São Paulo) FY06 7,208,280 Dec-05 Brazil Bahia Integrated Urban Development Program – Viver Melhor/BIRD: Technical and Methodological Assistance Project FY07 500,000 Apr-07 Brazil Poverty-Focused City Development Strategy for the Metropolitan Region of Belo Horizonte FY08 114,479 Dec-08 Brazil Establishment of a management structure for the Municipal Fund for the Support of Social Interest Housing (FUMAPIS) of the Municipality of Diadema FY08 211,496 Aug-08 Brazil Building institutional capacity for scaling up slum upgrading – Distance Learning Course for Integrated Slum-Upgrading Actions FY09 490,000 Jun-09 Brazil Regulation of ZEIS – Special Social Interest Zones in the Municipality of Salvador FY09 500,000 Jun-09 Brazil State of the Cities Report – Brazil FY09 75,000 Jul-09 Brazil Technical Assistance and Guidance in the Implementation of the Brazil National Housing Plan (PlanHab) FY07 498,200 Oct-07 Chile Support for the implementation of the programme to recover 200 neighbourhoods through capacity building and strengthening among local actors and public services FY09 74,970 Jun-09 Chile Chile Recovering Neighborhoods Program: Lessons learned in Mes del barrio experience among local actors and public services FY08 500,000 Feb-09 Costa Rica Towards a Neighbourhood Improvement Policy: Home, Community, City, and Quality of Life FY06 500,000 Apr-06 El Salvador Preparation of an Urban Development Strategy for the Region La Paz in the Department of La Paz and San Vicente FY05 879,195 Jul-04 Regional Scaling Up Successful Methodologies in the Latin America and Caribbean Region (Italy) FY09 475,000 Jul-08 Regional São Paulo Cities Alliance Support Of�ce 132 CITIES ALLIANCE NEW and ON-GOING ALLOCATIONS as of 30 June 2009 FY (appr.) Grant Amount (US$) Start Date Country Activity MIDDLE EAST AND NORTH AFRICA REGION FY06 350,000 Dec-05 Egypt Alexandria City Development Strategy for Sustainable Development: Phase II FY08 75,000 Nov-07 Egypt Preparatory Grant Assistance for Greater Cairo Metropolitan Development Strategy and Citywide Upgrading FY06 379,231 Oct-06 Lebanon Al-Fayhaa Sustainable Development Strategy FY05 490,000 Sep-05 Morocco Partnership Framework Agreement for Ministry of Housing and Supporting and Monitoring of the Program Urban Development Cities Without Slums FY05 250,000 Feb-05 Regional Establishing a Regional City Development Strategy Facility at the Arab Urban Development Institute (AUDI), Riyadh, Saudi Arabia FY08 380,000 Mar-08 Syria Aleppo City Development Strategy FY09 74,833 Cancelled Syria Preparation of Syria State of Cities Report FY09 60,000 Mar-09 Syria Upgrading Informal Settlements in Rief Damascus – Preparatory Grant Assistance FY07 245,000 Jun-07 Tunisia Greater Sfax Development Strategy – Phase 2 FY06 250,000 Nov-06 Yemen Sana’a City: Medium- to Long-Term City Development Strategy for Sustainable Development FY08 74,500 Jun-08 Yemen Sana'a City Development Strategy Climate Change Incremental Activity GLOBAL AND MULTIREGIONAL ACTIVITIES FY08 125,000 Feb-08 Global Learning and Knowledge Sharing – MTS Supplemental FY09 100,000 Jan-09 Global Learning and Knowledge Sharing – increase FY08 25,000 Feb-08 Global Communications and Advocacy – MTS Supplemental FY09 100,000 Jan-09 Global Consultative Group and Public Policy Forum meetings – increase (Barcelona) FY09 50,000 Jan-09 Global Cities Alliance Advocacy Panel (Restructured Policy Advisory Board) FY09 10,000 Jan-09 Global Technical Peer Reviews – increase FY07 2,364,000 Feb-07 Global Development of the Community-Led Infrastructure Finance Facility (CLIFF) – Sida continuation funding FY08 116,040 Jul-07 Global Development of the Community-Led Infrastructure Finance Facility (CLIFF) – USAID co�nancing for Design of Urban Poor Fund FY08 647,550 Dec-07 Global Support for Priorities of CA Medium-Term Strategy – Norway noncore FY08 160,000 Feb-08 Global Implementation of Medium-Term Strategy – Secretariat Costs FY08 25,000 Feb-08 Global Monitoring and Evaluation – MTS supplemental FY09 100,000 Jan-09 Global Monitoring and Evaluation – increase FY05 250,000 Feb-06 Global Developing MDG-based CDSs FY05 250,000 Feb-06 Global UCLG Committee on Local Finance and Development (formerly Municipal Finance Commission) 133 2009 ANNUAL REPORT NEW and ON-GOING ALLOCATIONS as of 30 June 2009 FY (appr.) Grant Amount (US$) Start Date Country Activity GLOBAL AND MULTIREGIONAL ACTIVITIES FY06 517,000 Apr-06 Global Mainstreaming Cities Alliance Engagement with UCLG FY06 10,000,000 Jul-05 Multiregional Slum-Upgrading Facility (SUF) – Pilot Programme FY05 242,500 Mar-05 Global Incubating Local Economic Development (LED) Partnerships FY05 525,000 Mar-05 Global Advancing the Cities Alliance Knowledge Generation and Dissemination Agenda (DFID) – including MFTF and Urban Finance co�nancing FY08 50,000 Feb-08 Global Urban Finance Initiative, including Municipal Finance Task Force (MFTF) – MTS suppl. FY06 610,000 Oct-05 Global Enhancing Urban Development in National Policy Dialogues FY06 100,000 Jan-06 Global CA Urban Environment Initiative FY08 50,000 Feb-08 Global CA Urban Environment Initiative – MTS supplemental FY08 370,000 Jan-08 Global Financing of African Cities: Stakes, Issues & Tools (France Noncore) FY08 75,000 Jun-08 Global Cities with Jobs: Integrating Productive Employment into City Development and Slum-Upgrading Strategies FY09 50,000 Jan-09 Global Gender and Youth FY09 150,000 Aug-09 Global Evaluation of Project Implementation Modalities of the Cities Alliance FY09 68,600   Global Making the Case for Incremental Housing FY09 1,200,000 Mar-09 Global Land, Services and Citizenship – Gates Foundation– funded programme FY09 75,000 May-09 Global Establishing the University Urban Research Initiative FY09 400,950   Global Joint Work Programme: Mainstreaming the Environment in the Cities Alliance Activities FY09 250,000 Jul-09 Global Joint Work Programme: Successful Approaches to National Slum Upgrading and Prevention FY09 75,000 Aug-09 Global Joint Work Programme: Lessons and Policy Recommendations from Urbanisation Programmes of Precarious Settlements in Brazil FY09 65,000   Global Joint Work Programme: Cities and Climate Change ($435,000 additional from Norway noncore for MTS) FY09 250,000 Jun-09 Global Joint Work Programme: UCLG Municipal Finance Commission – Second Phase FY09 75,000 Jul-09 Global Joint Work Programme: Enhancing Enumeration as a Tool FY09 250,000   Global Joint Work Programme: UCLG City Future CDS – Second Phase ACTIVITIES CLOSED or CANCELLED DURING FY09 as of 30 June 2009 FY (appr.) Grant Amount (US$) Completion Date Country Activity SUB-SAHARAN AFRICA REGION FY02 380,640 Jan-08 Burkina Faso CDSs and local Poverty Reduction Strategy Papers for the local governments of Bobo-Dioulasso, Banfora, and Ouahigouya 134 CITIES ALLIANCE ACTIVITIES CLOSED or CANCELLED DURING FY09 as of 30 June 2009 FY (appr.) Grant Amount (US$) Completion Date Country Activity FY07 75,000 Aug-09 Kenya Preparation of CDS and State of the Cities Report (SCR) Programme for Kenyan Urban Local Authorities FY06 500,000 Dec-08 Mozambique Improving Water and Sanitation in Quelimane City FY07 42,000 Jun-09 Mozambique Preparatory Grant for the Development of a CDS and Slum-Upgrading Strategy for Chimoio FY07 42,000 Jun-09 Mozambique Preparatory Grant for the Development of a CDS for Vilankulo FY07 89,325 Dec-07 Namibia Preparatory Study: Participatory City Development Strategies in Namibia FY07 270,000 Dec-08 Regional Cities Without Slums: towards implementing a support program for countries and cities of western and central French-speaking Africa – increase FY06 240,000 Jun-09 Rwanda Financial Management Modernization and Development Strategy for Kigali FY08 71,000 Jun-09 Sierra Leone Preparation of Slum Initiative, Freetown ASIA REGION FY06 237,933 Jul-09 India City Development Strategy for Pro-Poor Economic Growth for the Heritage City of Agra FY07 75,000 Mar-09 Vietnam Preparation of a Proposal on Viet Nam: City Development Strategy for Thanh Hoa City in a Regional Development Context EASTERN EUROPE AND CENTRAL ASIA REGION FY06 71,000 Oct-08 Moldova Moldova – City Development Strategy FY05 230,000 Aug-09 Russian Federation Vologda Development Strategy Alliance LATIN AMERICA AND THE CARIBBEAN REGION FY08 55,000 Mar-09 Brazil Support of National Housing Plan and National Housing Subsidy Policy MIDDLE EAST AND NORTH AFRICA REGION FY03 245,000 Jul-09 Morocco Metropolitan Cooperation in the Tetouan Region: the Role of the CDS FY09 74,833   Syria Preparation of Syria State of Cities Report FY05 200,000 Jun-09 Yemen Medium- to Long-Term City Development Strategy for Local Economic Development for Hodeidah and Mukalla Cities GLOBAL AND MULTIREGIONAL ACTIVITES FY08 125,000 Dec-08 Global Knowledge Dissemination – increase (Web site, publications, etc.) (Part of Learning and Knowledge Sharing) FY08 125,000 Dec-08 Global Knowledge Generation and Learning – increase (Part of Learning and Knowledge Sharing) FY08 150,000 Dec-08 Global Consultative Group and Public Policy Forum meetings – increase (Manila) FY08 100,000 Dec-08 Global Policy Advisory Board Semiannual Meeting – increase FY07 15,000 Dec-08 Global Technical Peer Reviews – increase FY03 2,300,000 Jun-09 Global Development of the Community-Led Infrastructure Finance Facility (CLIFF) – Sida FY08 90,000 Dec-08 Global Final Project Evaluations – increase-(Part of Monitoring and Evaluation) 135 2009 ANNUAL REPORT Abbreviations and Acronyms ADB Asian Development Bank AFD Agence Française de Développement (French Development Agency) AFDB African Development Bank AVSI Association of Volunteers in International Service (Italy) AusAID Australian Agency for International Development BMZ Bundesministerium für wirtschaftliche Zusammenrbeit und Entwicklung (German Federal Ministry for Economic Cooperation and Development) CDIA Cities Development Initiative for Asia CDS City Development Strategy CLIFF Community-Led Infrastructure Financing Facility CSIRO Commonwealth Scienti�c and Industrial Research Organisation (Australia) DFID Department for International Development (United Kingdom) FIA Fédération Internationale de l’Automobile (FIA Foundation for the Automobile and Society), FLACMA Federación Latinoamericana de Cuidades, Municipios y Asociaciones FMCU-UTO World Federation of United Cities GOLD Global Report on Decentralization and Local Democracy (UCLG) GTZ Gesellschaft für Technische Zusamenarbeit (German Agency for Technical Cooperation) HUDCC Housing and Urban Development Coordinating Council (Republic of the Philippines) IADB Inter-American Development Bank IBSA India-Brazil-South Africa ICLD International Centre for Local Development ICLEI International Council for Local Environment Initiatives IFC International Finance Corporation (World Bank Group) IIED International Institute for Environment and Development ISTED Institut des Sciences et des Techniques de l’Equipement et de l’Environnement pour le Développement (France) IULA International Union of Local Authorities IYF International Youth Foundation JNNURM Jawaharlal Nehru National Urban Renewal Mission (India) KfW KfW Bankengruppe (Germany) LAUD Local Authorities and Urban Development (France) LCP League of Cities of the Philippines LDC Least Developed Countries MAEE Ministry of Foreign and European Affairs (France) MINURVI Assembly of Ministers of Housing and Urban Development of Latin America and the Caribbean Region MISTRA Foundation for Strategic Environmental Research (Sweden) MoHUPA Ministry of Housing and Urban Poverty Alleviation (India) MoUD Ministry of Urban Development (India) MTS Medium Term Strategy MTSU Mumbai Transformation Support Unit PAC Programade Aceleraçãodo Crescimento (Growth Acceleration Programme Brazil) PEARL Peer Experience and Reflective Learning Network (India) PNH Brazil’s National Housing Plan (Plano Nacional de Habitação). 136 CITIES ALLIANCE Abbreviations and Acronyms PASDEP Plan for Accelerated Development to End Poverty PRSP Poverty Reduction Strategy Papers RAY Rajiv Awas Yojana (India) SDI Shack/Slum Dwellers International SEHAB São Paulo Municipal Housing Secretariat Sida Swedish International Development Cooperation Agency SUF Slum Upgrading Facility UCLG United Cities and Local Governments ULBs Urban Local Bodies (India) UNACLA United Nations Advisory Committee of Local Authorities UNECA United Nations Economic Commission for Africa UNDP United Nations Development Programme UNEP United Nations Environment Programme UNFCCC COP 15 United Nations Climate Change Conference in Copenhagen (COP 15) UN-HABITAT United Nations Human Settlements Programme UPFI Urban Poor Fund International USAID United States Agency for International Development WUF World Urban Forum WACLAC World Association of Cities and Local Authorities Coordination 137 2009 ANNUAL REPORT 138 CITIES ALLIANCE 2009 ANNUAL REPORT TEAM Chii Akporji - Team Lead Juliet Bunch Iraj Hettiarachchi DESIGN Marti Betz Design PRINTING MOSAIC Left: Slum housing in Nairobi, Kenya. © William Cobbett/Cities Alliance 1818 H Street, NW • Washington, DC • 20433 • USA TEL: 202.473.9233 FAX: 202.522.3224 info@citiesalliance.org www.citiesalliance.org