ECONOMICS UNIQUENESS

OVERVIEW ■ xxvii
Urban development funds. Th ere has been a signifi cant rise in the number
of urban development funds (UDF). Th ese funds have provided the vehicles
for a range of investors to gain exposure to real estate markets by committing
incremental investment. Th e funds focus on all forms of urban investment; they
operate in diverse geographic areas and have diff erent maturity dates that off er
considerable choice to investors.
Impact investment funds. In recent years, a new form of investment,
known as impact investment funds, has emerged in the market. Th e impact
investment funds are designed as a socially responsible investment not driven
exclusively by profi t and generally targeted toward addressing heritage, environmental,
and social issues. Impact investment is defi ned as actively placing
capital in businesses and funds that generate social or environmental good and
a range of returns to the investor.
What Has the World Bank Done?
Th e World Bank fi nances an increasing number of heritage projects 6
and has developed a three-pillar approach to ensure sustainable results.
Th e World Bank’s support for heritage began with the reconstruction of postwar
Europe. It included investment to conserve individual war-damaged heritage
assets and landmarks in cities and signifi cant natural heritage sites. As the
rebuilding of Europe was completed, the Bank turned its attention to the needs
of developing countries and the severe problems of poverty. Subsequently, investment
in heritage was driven by the need to conserve and upgrade specifi c endangered
assets in the phase of rapid urbanization, and to prevent and mitigate the
possible adverse impacts of large infrastructural projects.
More recently, the Bank developed a new approach to heritage investment
as part of its agenda for inclusive green growth and sustainable development.
Heritage investment promotes an effi cient use of built assets and land, maximizing
the benefi ts of adaptively reusing assets that would otherwise be neglected
or underutilized. It also encourages housing in dense, historic urban neighborhoods,
walkability, and in general a low carbon development model. Th e threepillar
approach to heritage investment is explained with practical examples
from Bank-supported projects (illustrated in boxes throughout the book). Th is
approach consists of investing in:
1. Heritage asset conservation and management;
2. Housing (including security of tenure and access to fi nance), infrastructure,
and service delivery to involve local communities living in the surroundings
of heritage assets; and