INFRASTRUCTURE IN EAST ASIA AND THE PACIFIC THE WAY FORWARD
INFRASTRUCTURE DEVELOPMENT AND SERVICE PROVISION IN THE PROCESS OF
URBANIZATION Final Report UTCE Ltd. ALMEC Corporation Study on
Urbanization
JBIC/ADB/WorldBankJointStudyInfrastructureinEastAsia:TheWayForward
FinalReport ThispaperwascommissionedfortheADB-J
BIC-WorldBankEastAsiaPacificInfrastructure Flagship Study. The
views expressed are those of the author only. StudyonUrbanization
JBIC/ADB/WorldBankJointStudyInfrastructureinEastAsia:TheWayForward
FinalReport TABLE OF CONTENTS
1.Introduction..........................................................................................................1
1.1Background and
Objectives............................................................................................1
1.2Coverage of the Paper
...................................................................................................1
2.Urbanization Trends in the EAP
Region...............................................................3
2.1Urbanization Trends in the EAP
Region.........................................................................4
1) Rapid Increase in Urban
Populations.............................................................................4
2) Urbanization vs. Economic Growth in the EAP
Region..................................................5
2.2Changes in National Land Structure along with
Urbanization.........................................7 1)
Concentration or Diversification of
Cities........................................................................7
2) Widening of
Disparity...................................................................................................10
2.3Urbanization in Metropolitan
Areas...............................................................................13
1) Emerging Huge
Metropolises.......................................................................................13
2) Densification of Core Urban
Areas...............................................................................13
3) Extension of Urban Areas beyond J urisdictional Boundaries
.......................................14 2.4Changing Environments
Surrounding
Urbanization......................................................16
1) Globalization as a Dynamo for
Urbanization................................................................16
2) Changing Urban Functions with Technical
Innovation..................................................18
3.Impact of Urbanization on Infrastructure in the EAP
Region..............................20 3.1Increasing Needs for
Urban
Infrastructure....................................................................20
3.2Implications of National Spatial
Development...............................................................21
1) Increasing Needs for Infrastructure to form efficient National
Land Structures.............21 2) Expansion of Disparities in
Infrastructure Service
Levels.............................................21 3.3Impact on
Infrastructure Development in Emerging Huge
Metropolises.......................23 1) Expansion of Urban
Areas............................................................................................23
2) Impact on Livability of
Cities.........................................................................................25
3.4Impact of Urbanization on Emerging Surrounding Environments
.................................28 3.5Summary of Urbanization
Impacts on Infrastructure in EAP
Countries.........................29 4.Key Issues and Strategies
for Infrastructure Development and Service
Provision...........................................................................................................................31
4.1Financial Resources for Sustainable Infrastructure
Development................................31 1) Infrastructure
Investment in the EAP Countries
...........................................................31 2)
Financial Resource Development
................................................................................32
4.2Balanced National Land Development
.........................................................................36
1) Impact of Infrastructure on Regional Spatial
Structure.................................................36 2)
Roles of National Urban
Policy.....................................................................................36
3) InfrastructureDevelopmentinCompliancewithNationalLandDevelopment
Strategies
.....................................................................................................................39
4.3Growth Management of Urbanization in Metropolitan
Areas.........................................46 Study on
Urbanization
JBIC/ADB/WorldBankJointStudyInfrastructureinEastAsia:TheWayForward
FinalReport 1) Interaction of the Expansion of Urban Area with
Trunk Infrastructures.........................46 2) Long-term
Perspective and Comprehensive Approaches
............................................47 3) Land-use
Management
................................................................................................48
4) Efficient Operation of Existing Infrastructures
..............................................................49 5)
Comprehensive Infrastructure
Development................................................................52
6) Infrastructure Provision for Urban
Poor........................................................................53
7) Governance Improvement and Capacity
Development................................................55
4.4Infrastructure Development Strategy in response to Globalization
and IT Innovation...56 1) Balanced Development under
Globalization................................................................56
2) Strategic Infrastructure Development Targeting IT
Industry..........................................58 5.Summary of
Recommendations.........................................................................59
Appendix A.J apanese Experience of National Land Development
B.Growth Management and Urban Transport Infrastructure Development
C.Experience of Developed Countries on Financing Urban Transport
Infrastructure D.Basic Data of EAP Countries StudyonUrbanization
JBIC/ADB/WorldBankJointStudyInfrastructureinEastAsia:TheWayForward
FinalReport LIST OF FIGURES Table 2.1.1Scale and Speed of
Urbanization of EAP
Countries................................................. 5 Table
2.1.2Average Annual Growth rate of GDP and Urban Population,and
Poverty Index by
Region......................................................................................................................
6 Table 2.2.1Regional Disparities in the EAP Countries,
2000.................................................... 12 Table
2.3.1Cities with more than 8 Million Population,
1950-2000........................................... 13 Table
3.2.1Regional Disparities in Infrastructure and Social Service
Levels, Thailand in 199922 Table 3.2.2Regional Disparities in
Infrastructure and Social Service Levels, Malaysia in 199922 Table
3.3.1Access to Infrastructure (Citywide and Informal Settlements)
(% of households with
connection).............................................................................................................
27 Table 4.2.1National Urbanization Policies in the EAP
Countries.............................................. 37 Table
4.3.1Traffic Situation Changes in Namsan Tunnel
Corridors.......................................... 50 Table
4.3.2Motorcycle and Car Ownership and GDP per capita,
2002.................................... 51 LIST OF TABLES Figure
2.1.1Urbanization in the
World..........................................................................................
4 Figure
2.1.2UrbanizationTrendsandEconomicDevelopmentinDevelopingCountriesby
Region,
1960-2000...................................................................................................
5 Figure 2.1.3Urbanization and GDP per Capita of Selected Countries
(1960-2000).................... 7 Figure 2.2.1Population in Largest
and Second-largest Cities,
2000............................................ 7 Figure
2.2.2Share of Primary Cities (agglomeration) and Urbanization Rate,
1950-2000.......... 8 Figure 2.2.3Share of Primacy Cities
(agglomeration) and Urban Populations, 1950-2000......... 9 Figure
2.2.4Population Distribution in the EAP Countries,
2000................................................. 9 Figure
2.2.5Urban Population Ratios and Gini Indices of Selected
Countries, 2000.................11 Figure
2.2.6EconomicDevelopmentandRegionalDisparities1),Thailand,Malaysia,and
J
apan......................................................................................................................
12 Figure 2.3.1Expansion of Urban Areas in Metro
Manila............................................................
15 Figure 2.3.2Urbanization Pattern, Metro
Manila........................................................................
15 Figure 2.3.3Expansion of Urban Area in HCM Metropolitan
Area.............................................. 16 Figure
3.1.1Historical Changes in Vehicle Ownership and Road Lengths
................................ 20 Figure 3.2.1GRDP and
Infrastructure Service Levels by Region,
Philippines........................... 22 Figure 3.3.1Population
Growth Rates, South of Metro Manila,
1980-2000............................... 24 Figure 3.3.2Industrial
Areas in
CALA.........................................................................................
24 Figure 3.3.3Expansion of Urban Area in J akarta Metropolitan
Area, 2002................................ 24 Figure 3.3.4Expansion
of Urbanized Areas in Ho Chi Minh
City............................................... 25 Figure
3.3.5RelationshipsamongPopulationDensity,RoadDensity,AverageHousehold
Income, and Average Length of Stay in Metro
Manila........................................... 28 Figure
4.2.1Economic Development and Regional Disparity, J
apan......................................... 39 Figure 4.2.2Public
Investment Distribution among Regions, J
apan.......................................... 43 Figure
4.2.3Public Investment Allocation by
Sector...................................................................
44 Figure 4.3.1Expansion of Urbanized Area,
1952-1985..............................................................
46 Study on Urbanization
JBIC/ADB/WorldBankJointStudyInfrastructureinEastAsia:TheWayForward
FinalReport ABBREVIATIONS ADBAsian Development Bank EAPEast Asia
and Pacific FDIForeign Direct Investment HICHigh Income Country J
BICJ apan Bank for International Cooperation J ICAJ apan
International Cooperation Agency HDIHuman Development Index
UNUnited Nations WBWorld Bank GDPGross Domestic Product GRDPGross
Regional Domestic Product BMABangkok Metropolitan Administration
EBMRThe Extended Bangkok Metropolitan Region ITInformation
Technology MSCMultimedia Super Corridor CALACavite and Laguna
Region QOLQuality of Life ODAOfficial Development Assistance
FLIPFinancial Loan and Investment Program (in J apan) ESDEastern
Seaboard Development TDMTransport Demand Management KIPKampung
Improvement Program NGONon Government Organization Study on
Urbanization
JBIC/ADB/WorldBankJointStudyInfrastructureinEastAsia:TheWayForward
FinalReport 11.Introduction 1.1Background and Objectives
Infrastructure gaps and bottlenecks have been a constant problem in
the economic growth and poverty reduction efforts in many
developing countries in East Asia and the Pacific (EAP) region.
Properly addressing this basic constraint provides the rationale
for this joint studybytheAsianDevelopmentBank(ADB),theJ
apanBankforInternational Cooperation (J BIC), and the World Bank
(WB). This study aims to formulate and develop
soundpolicybasisfortheprovisionofeffectiveandsustainableinfrastructureservices
across the EAP region. Addressing this issue, however, has become
more complex due to a number of external and internal factors that
vary per country. External factors include accelerating
urbanization, globalization of economies, increasing competition,
as well as
growingdemocratization,anddecentralization.Meanwhile,internalfactorscould
encompass the lack of resources, inadequate institutions, lack of
administrative capacities,
geographiccharacteristics,andmanyothers,.TheADB,theJ
BIC,andtheWBhave delineated the main themes of this umbrella study
along these issues and constraints. The main objective of the study
is to review and identify the likely impacts of urbanization on
infrastructure development in the EAP region. Its specific
objectives are: (a) Review the trend of urbanization from various
aspects and identify the characteristics in the region, (b)
Reviewtheimpactsofurbanizationoninfrastructuredevelopmentandservice
provision. (c)
Assessthekeyconcernsthathavetypicallyarisenundervarioustypesof
infrastructures within a city and across cities under the process
of urbanization. (d) Provide a general framework to address
urbanization in infrastructure project design and implementation
with complementary institutional mechanisms. 1.2Coverage of the
Paper Urbanization trends and the forces that drive them have
already been discussed in many research papers and institutes,
including the Stanford Asia/ Pacific Research Center, the United
Nations University, as well as international organizations such as
the ADB and the
WorldBank1).However,theseexistingliteratureandcentersonlylistthekeyissuesin
infrastructuredevelopmentanddonotcomprehensivelydescribeimplicationsfor
infrastructuredevelopment,alongwithpoliciesandstrategies,includinginstitutionsand
development strategies This report analyzes key issues of
infrastructure development under urbanization as well as detailed
urbanization policies and strategies. Trends and characteristics of
urbanization
aresummarizedbasedmainlyontheexistingreferences.Thisreportisorganizedas
follows:
1)ReviewofUrbanizationTrends:Trendsandcharacteristicsofurbanizationinthe
1) Main references regarding East Asian urbanization are listed
in World Bank website.
(http://wbln0018.worldbank.org/External/Urban/UrbanDev.nsf/0/478FD26E057A42F48525694D000F5D9E?OpenDocument
Study on Urbanization
JBIC/ADB/WorldBankJointStudyInfrastructureinEastAsia:TheWayForward
FinalReport 2EAP region is reviewed and compared at the global,
regional, and city levels. Recent
changesofrolesandfunctionsofcitiesinemergingnewenvironmentarealso
described. 2)Impacts of Urbanization on Infrastructures: This
chapter summarizes the impact of
urbanizationoninfrastructure,includingtheincreasingneedforinfrastructure,
implications from national land structures, impacts on urban
livability. Impact of urban
infrastructuretoenhanceurbanagglomerationeffectsandencourageinnovationsis
also discussed.
3)IssuesandStrategiesinInfrastructureDevelopment:Issuesandstrategiesare
analyzed based on experiences in J apan and the subject countries
in the EAP based on responses to impacts of urbanization (as
summarized in Chapter 3) and in order to
maximizethepositiveonesandminimizenegativeones.Keyissuesarelistedand
further discussed in the Appendix.
4)SummaryofRecommendations:FollowingtheanalysisinChapter4,
recommendations on the key issues for future infrastructure
development in the EAP countries are summarized. Study on
Urbanization
JBIC/ADB/WorldBankJointStudyInfrastructureinEastAsia:TheWayForward
FinalReport 32.Urbanization Trends in the EAP Region Urbanization
refers to a process in which an increasing proportion of an entire
population
livesincitiesandsuburbsofcities.Historically,ithasbeencloselyconnectedwith
industrialization (Fairfield Faculty, The Urbanization of the
World). Likewise, urbanization encompasses changes in form and
social character that illuminate larger changes in socio
economicconditions.Changesintheeconomyandinthescaleofcitiesalteredthe
organizationofsociallifeandthespacewithinthem.Thusurbanizationhasvastand
multifaceted impact, which significantly vary by country and by
city. Urbanization in the EAP region started in the 1970s with an
overwhelming magnitude and speed compared to trends in the
developed countries. In general, urban population growth is a
result of the high population growth rate and the constant
in-migration from the rural to urban areas.2) While speed and scale
are diversified per country and region, urbanization trends are
expected to continue in the future. By 2030, the urban population
ratio in Asia is expected to reach 54.5%, which is 67% of the
current level in the developed countries. Urbanization is
integrated with changes in industrial structure and the lifestyles
of urban
residents.Itisalsocloselyrelatedwitheconomicdevelopment.Ithascommonlybeen
observedthatthereisastrongcorrelationbetweenurbanizationandeconomic
development. The World Bank stated that cities are sources of
productivity and innovation and it is necessary to get the best
from the cities (WB. 2003a). However, urbanization without growth
has been observed in some African countries (Fay and Opal. 2000).
Considering that urbanization is an irreversible trend, the key
agenda on urbanization is its
impactonsocial,economic,andenvironmentalaspects.Specifically,thekeyissuesof
urbanization are as follows: 1) Whether it contributes to economic
growth, 2) Whether it achieves poverty reduction.
3)Whetheritleadstothereductionofdisparitiesinlivingenvironment,socialwelfare,
security, and environment. 4) How to respond to urbanization in
order to maximize the above-mentioned impacts.
Urbanizationhascausedseveralproblems,butitalsohascontributedtonational
developmentinmanycountries.Thelatterdependsonacountryspolicyresponsesto
urbanization as well as the countrys social, political, and
geographical background.
2) In the 1960s and 1970s, the major factor for urbanization was
natural population growth in urban areas rather than in-migration.
Since the 1980s, the share of in-migration has exceeded natural
growth, which is especially
trueinAsia.Thecontributionofmigrationinthe1960sand1980swas40.4%and54.3%onaveragefor
developingcountries,and40.4%and63.6%inAsia,respectively.Reclassificationofcities,whichaffects
statistics, also contributes to the increase in urban population.
(Kato. 2001) Study on Urbanization
JBIC/ADB/WorldBankJointStudyInfrastructureinEastAsia:TheWayForward
FinalReport 42.1Urbanization Trends in the EAP Region 1)Rapid
Increase in Urban Populations Ongoing Urbanization and Increases in
Urban Populations Although urbanization in the EAP region has gone
full scale since the 1970s, its share of urban population is still
small compared with other regions. In 2000, while the urbanization
rates for the developed and developing countries were 74% and 41%,
respectively, that of the EAP region was only 36.5%.
ItisexpectedthaturbanizationintheEAPregionwillcontinueinthefuture.Urban
populations in Eastern and Southeastern Asia will grow to 1,470
million in 2030 and their share of the population pie in the entire
region will equal to 62% of the total (60% of these will be in
China). The total urban population in this region shall account for
30% of the worlds total urban population in 2030. During the next
three decades (from 2000 to 2030)
urbanpopulationsareestimatedtoincreaseby1.9billion,ofwhich0.66billionwillbe
those in Eastern and Southeastern Asia. (UN. 2002b) Figure
2.1.1Urbanization in the World 0600,0001,200,0001,800,000Eastern
and SouthEastern AsiaWestern andSouth-Central AsiaLatin America
andthe CaribbeanAfrica1950197520002030(62.1)(47.4)(84.6)(53.5)
(40.2)(33.5)(75.5) (37.1) Note:The number between parentheses
indicates the share of urban population in 2000 and 2030.
EasternandSoutheasternAsiaincludeChina,DemocraticPeoplesRepublicofKorea,J
apan, Mongolia, Republic of Korea, Brunei Darussalam, Cambodia,
Democratic Republic of Timor-Leste,
Indonesia,LaoPeoplesDemocraticRepublic,Malaysia,Myanmar,Philippines,Singapore,
Thailand, Vietnam. Source: UN. 2002b. Scale and Speed of
Urbanization in the Developing EAP CountriesThe characteristics of
urbanization in the Asian region (including South Asia) are
diverse. The region includes Singapore and Hong Kong, which both
have a 100% urban population, as well as Nepal and Bhutan, which
both have a 90% rural population (Kato. et al.) The
regionsrelativelylowurbanizationlevelsalsoresultfromthelowurbanizationofhuge
countries, such as China and India, and other smaller ones, like
Bangladesh. This applies even among EAP region. Table 2.1.1 shows
the basic urbanization typology in the EAP countries based on size
of urban population and their growth rates. In Indonesia and the
Philippines with high urbanization level, urbanization is still
under way. Cambodia and Laos are, which are in the beginning stages
of urbanization, have a low urbanization level and a high growth
rate. Study on Urbanization
JBIC/ADB/WorldBankJointStudyInfrastructureinEastAsia:TheWayForward
FinalReport 5Table 2.1.1Scale and Speed of Urbanization of EAP
Countries Urbanization Level LowMiddleHigh High Cambodia Laos
Indonesia Philippines Middle China Vietnam Myanmar Malaysia
Urbanization Speed LowThailandMongolia Note:Urbanization level
(share of urban population in 2000): High >40, 20
