Keshav Varma Director, East Asia & Pacific Urban Sector The World Bank

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

2. Globalization, Urbanization and Decentralization • Globalization • Intense pace of Urbanization • Devolution to local government • Empowerment of people in democratic choice-making

3. 500 million more people move into Asian cities East Asia Pacific Urbanizing Rapidly …with 500 million People Moving into Cities over the next 20 years Urban population (% total population) Growth in # of cities over one million inhabitants Source: World Development Indicators, 2004; United Nations World Urbanization Prospects, 2003 Source: United Nations World Urbanization Prospects, 2003

4. Changing Governance - Increasing Decentralization Expenditure decentralization – sub-national expenditure (% total national expenditure) Source: East Asia Decentralizes—Making Local Government Work, The World Bank

5. Shifting Importance of Cities – Local and Global • Half the world’s population will be in cities by 2010 – and half of them will be poor • Urban leaders are playing important roles in the national arena • Cities are the locus of growth, jobs & wealth • Cities – regions as fundamental spatial units for global economy

6. Challenges of Urban Management • Population pressures – poverty & slums • Urban infrastructure service provision • Water & sanitation • Solid waste management • Transport & traffic management • Unacceptably low levels of investment in basic infrastructure • (In)efficiency of investments

7. East Asia, estimated infrastructure expenditure, actual and projected, 1996 – 2010 ($ billion / year) East Asia’s Increasing Infrastructure Needs all, excluding China $165* bil rail $147 bil water and sanitation $123 bil telecoms Maintenance roads China Investment electricity * Based on econometric simulations consistent with projected regional growth, and efficiency prices. Due to data limitations, the simulation excludes a number of key infrastructure services, notably ports and airports, and all but major roads Source: JBIC/ ADB/ Worldbank Flagship Study: Connecting East Asia

8. Challenges of Urban Management (Contd…) • Urbanization of Poverty • Urban poverty and growing affluence • Urban slums, land markets and shelter • Shape of cities – expected significant increase in build-up areas • Antiquated laws and insufficient frameworks • Small solutions to challenges of urban management – enormous problems upscaling

9. Slums – Growing Numbers & Unequal Access to Services • The Growth of Slums Source: World Development Indicators • Unequal Access to Basic Services Source: JBIC/ ADB/ Worldbank Flagship Study: Connecting East Asia

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

11. Inside City Halls – Good Governance • Sustainable Governance as a long-term goal • Professionalism, and citizen friendly city-employees • Transparency & accountability • Continuous capacity building and training • Use of private sector advisors and contractors

12. Inside City Halls (Contd…) • Update urban systems, legislation and laws • Raise civic awareness & respect for city laws • Enforce transparency & accountability • Welcome press and criticism

13. Livability • City and land use planning • Improved use of green spaces and urban agriculture • Optimization of present assets of utilities • Energy conservation • Urban water and sanitation, solid waste management • Reduction of the ecological footprints of cities

14. Competitiveness • Globalization and global city regions – the need to enhance competitiveness • Excellence and quality of human resources; attracting talent • Examples of Bangalore in India and its connection to the Silicon Valley • Cultural heritage and urban renewal • Competitiveness on multiple dimensions

15. Bankability • Scarcity of resources – per capita investment in infrastructure unacceptably low • Credit rate cities • Access to capital markets – municipal bonds • Bankability and Bonds – seen as an aspect of civil pride, empowerment and partnership

16. Solutions Revisited • Exceptional leadership – visionary, creative, firm, responsive and compassionate • New paradigm for city management and governance • Foster true citizenship – bring people into the business of city management • Concentrate on building sustainable institutions • Build morale and external alliance • Include the poor