Cities, Water and Development Insigths from World Bank

Experience

Zaragoza, Water Tribune 2008

Mila Freire

The World Bank

OutlineCities in Development – shifting paradigms

Urbanization: from burden to opportunityThe role of public policy – easying the processThe challenges of servicing fast growing citiesCities and global goods – climate change

World Bank ExperienceSupport to cities – urban strategySupport to water sector – water programsSupport to learning and networks

City Networks – the value of colaborationSector issues, policy concernsReaching the less able; sharing the fruits of knowledge

1. Cities in DevelopmentOld paradigm

Too rapid urbanization; too large cities;Increasing slums and povertyDiscourage migration to cities

New paradigmEconomic growth and change in structure happens with concentration of people in townsDensity is needed for productivity growthThe challenge: how to ease urbanization process, while minimizing congestion costs City population expected to double in 30 years Climate change – the new urgent agenda

Richer countries have higher urbanization and density rates

Richer countries are denser

GDP per capita grows with urbanization Non-linear relation

More rapid in the beginningSlower at higher levels of development

Belize

China

Botswana

IndiaBrazil

EgyptKorea

Germany

Japan

Norway

USA

South Africa

Ethiopia0

.2.4

.6.8

1Ag

glom

erat

ion

Inde

x

0 10 20 30 40GDP per capita (thousands, PPP, 2000 constant US$)

Economic growth brings changeSecondary sector increases its share in GDP; tertiary sector even more. Dispersed activities (i.e. agricultura) are replaced by more concentrated activities –manufacturingServices become a predominant sectorChange is common in developped and developing countries

Cities: engines of growth and service providers

Within the uneveness of development some basic rules to help urbanization process

Basic services need to be provided to everyone regardless whether in lagging or leading regionsLack of services (access to water, education, health) should not be the determinant for migration; but differences in productivity and income. Provision of water - part of the poverty-alleviation and part of the ammenity and business climate agenda

As urbanization continues, investment in connectivity (urban transport) is requiredTargetted policies to promote inclusion (slums or informality) become the main policies.

Again, availability of water and sanitation is the most effecive way to improve well-being at lower income levels,

2. Preparing for the future:Cities expansion: Sprawl? Density?

Between 2005 and 2035 built land is supposed to tripple; urban populaton to double. Increased demand for land?

Future needs of infrastructure, including water?Is water availability a variable in the way our cities are and will be growing?Is water being priced correctly?

Lessons from Los Angeles or PhoenixWater disputes in West California; shortages in North Africa and South Europa; Northern China

The big challenge: A billion in slums

3. Sustainable CitiesCities contribute for 60-70% of C02 emmissions

The relation of C02 (per capita) grows at first but then declines as consumers become more aware of th need to be energy efficient

Industrialzed cities have initiated very important initiatives to curb influence of cities in CO2 emissions:

Urban transportBuilding codesEncouragement to density (against sprawl)

Adaptation: the challenge for cities in poored countries

Arid cities – lack of waterCoastal cities – possible flooding and loss of assets

The challenge: knowledge and governance

Urban vulnerability to climate change

DIRECT IMPACTSSea level riseFlooding and landslidesHeat waves Water scarcityDecreasing water qualityWorsening air qualityGround ozone formation Djibouti-Ville flooded in April 2004

Urban vulnerability to climate change

INDIRECT IMPACTSFrequency, intensity of natural disastersAccelerated urbanizationEnvironmental refugeesIncreased energy demand for heating or coolingEpidemics, worsening public healthAvailability and pricing of foodstuff

Environmental refugees Djibouti, October 2004

Cities and Climate change programs

5th International Urban Symposium, 2009Knowledge and analytical tools Governance and urban planningEconomics and financeSocial aspects of climate changeInfrastructure, design and local governments

Regional programs to help nations/citiesNorth AfricaAsia (China); South Asia

Carbon Trade financingCity NetworksLinking with disaster management and mitigation

4. World Bank Experience and Lessons: Cities

Urban programs total around $7 billion a year, or 11% of Bank portfolioFocus on

Slum upgradingHousing and Land marketsMunicipal FinanceCrime and ViolenceMunicipal services (including water and sewerage)Cities and economic development

Analytical work, lending, knowledge sharingLessons: cities must be creative and competitive, credithworthy, geared to the poor, well managed and able to partner

WB experiences: Water & city

Bank has long experience in water sector, from resource management to water utilities and complex river basin systemsComparative advantage of Bank

Multi-sector approachConvening powerSteady presence and work with borrowers

Object. # 1: Water policies targeted to affect poverty

Water and the poorSlum upgrading and water improvements

Most slums projects are water and sanitaion projects. Often accompanied by social componentsCleaning of water sources and rivers or lakes (Sao Paulo, Brasilia, Bolivia, etc,)Helping create and improve managemente of water utilitiesHelp design and negotiation of private-public partnershipsHelp design economic and rational incentives for subsidy allocation and price systems

Lessons:1. Water resources management and development are

central to sustainable growth and poverty reduction2. Most developing countries need to be active in both

management and development of water resources infrastructure.

3. The main management challenge is to adopt a “pragmatic but principled” approach that respects principles of efficiency, equity and sustainability while recognizing that water resources management is intensely political

4. Any type of assistance need to be tailored to the conditions of each country

5. City Networks City networks emerge from the need and “joy” to share knowlege, experiences and successes.Can be national, regional and global.At present one has more than

20 global city networksMore than 30 Regional networksMore than 100 National NetowrksWith webb pages, publication and regular stream of information.

Probably thousand of twin-cities arrangements, ad-hoc meetings and exchange programs.Excludes networks focused on specific sectors

Types of City Networks

Global networks

13%

Regional networks

12%

National networks

75%

Global NetworksAre organized by themes

Eclei, C-40 for environmentCA for urban upgrading and city development strategyUCLG to represent a whole range of matters of concern to municipalities, probably the most representative of the global networks

Have increasing political voiceOften associated with UNFinanced by bilateral and multilateral donorsTechnically important

Sector City NetworksGHG abatement initiatives

ICLEI “Cities for Climate Change” programC40 cities partnershipClinton FoundationWorld Economic ForumCarbon financing, carbon trading markets DOE “Clean Cities”EU incentives system for local governments

Regional Networks

Important to share issues typical of each regionSpecial important in

Europe including EurocitiesLatin AmericaAsia Africa has a continental progrqam (MDP)

UCLG has chapters in each Region

Country NetworksParticular active in Asia (37)

Philipines (4), Indonesia (5), Japan (9), India, Australia (3), South Korea

Latin America (16)Brazil (3), Argentina (3), Mexico (2), El Salvador, Chile (2), Bolivia

Europe and Central Asia (21)Bulgaria (3), Poland (2)

Europe (24)North America; USA (3), Mexico (1), Canada (1)Africa

South Africa has two active associationsMost African countries have municipal associationsVery important role played in the Rwanda reconciliation process

Country networks (cont.)National networks are particularly important in matters of decentralization, tax policy and policy reformBrazil municipal associations were fundamental to give municipalities full power as federative entity during 1988 constitutional reformHonduras and Philipines associations have major role in discussing revenue share, and progressive decentralization of responsibilities

City Networks will continue to be key in knowledge sharing

In first phases of urbanization or city management, emphasis is probably on governance issues, decentralization, budget and participatory communicationAs urbanization and city development happens, cities and networks need to pay attention to the technical details of managing infrastructure and services, manage investment climate, amenities and economic developmentCities need to sit at the table of regional development decisions that have a structural impact in terms of trunk infrastructure and transport hubsNetworking helps share experiences, knowledge and increase the visisibility and presence of cities.

Thanks