rural-urban dynamics_report.pdf - Khazar University

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160 URBANIZATION AND THE MDGS GLOBAL MONITORING REPORT 2013 authority to exercise those decisions. These determine, to some degree, if and how costs and revenue can be shared within and across jurisdictions. Institutional and governance arrangements reflect a country’s political decisions, often based on its particular social, geographic, or political context. Subnational governments and their authorities can be elected or delegated; in some cases, parallel or dual authorities exist. Whatever the arrangement, as a guiding principle, a minimum level of accountability, vertically across levels and horizontally across the different territorial units, needs to be in place for MDG-relevant policies to be fully effective. Human resources are a critical, yet often overlooked element of accountability. They establish institutional capacity, a necessary condition to addressing service delivery challenges. They define the “fine dividing line” in responsibilities among levels of government, which is key for accountability. And they are a significant cost driver that can impact fiscal responsibility. Three areas of institutional capacity are critical because they establish a basic level of transparency: financial management, procurement, and human resources. Efforts are under way to create integrated financial management systems in many countries, including Russia (as a centralized solution), and some Latin American countries (Guatemala, Peru). Given deeply entrenched political economy factors, the risk of disjointed decision making is high. Hiring and firing decisions, along with salary policies, need to be made in a coordinated fashion. The example of Mexico underscores some of the challenges: because of political resistance, federal teachers were not decentralized to the states, resulting in a parallel hiring process at the state level that blurred the lines of accountability. In Colombia, the early decentralization process established central pay levels, while SNGs were supposed to cover the increased cost, which was shifted back to the center through higher transfers. With growing interdependencies, human resources management needs to be strengthened in an intergovernmental fashion. Because these capacities are often “invisible” to citizens, which limits any demand-based reform, they need particularly strong incentives to be sustainable. These examples underscore the fact that human resources reform constitutes a challenging area that can often progress only in limited, narrowly defined service delivery areas where sufficient demand for reform exists. In contrast, Kenya’s ambitious territorial and devolution reform has forced it to engage in large-scale human resources reform, but the reform is still too new to evaluate the results. Planning first, followed by financing As urban centers continue their inexorable growth over the next decades, a strategy is needed to better manage the urbanization process through a coordinated, prioritized, and sequenced approach to the planningconnecting-financing formula of urbanization. Unplanned and uncoordinated urban development can pose risks, trading the hopes of those who migrate in search of a better life for unsanitary living conditions, joblessness, and high exposure to natural disasters. Public policy makers must act now to get this rapidly paced urbanization “right” by improving access to affordable and reliable basic services such as education, housing, transport, and health care for all, and by promoting effective land use management to influence the spatial structure of cities. Isolated efforts are unlikely to help. Experience in managing urban growth has varied considerably across countries (see box 3.10 for policies in the BRICS), but policy makers going forward will need to focus on getting land management “right” and integrating the intensity of land use with the placement of infrastructure, housing, mobility, and environmental amenities. Of course, financing rapid urban growth is challenging, because large up-front capital investments are needed to build systems for transport and water, solid waste management, and sewage removal and treatment. Financing, however, needs to be closely tied to how urban areas are planned and connected. Often, getting the planning in place will allow cities to leverage land and credit
GLOBAL MONITORING REPORT 2013 URBANIZATION AND THE MDGS 161 BOX 3.10 Learning from urbanization in the BRICS The economic motors of development are shifting from the urbanized developed world toward the rapidly urbanizing developing world, and most famously those of Brazil, Russia, India, China, and South Africa (the BRICS). The BRICS provide some inspiring examples of how to seize the opportunities that urbanization can provide. Their governments all went through difficult periods when they tried to resist the predictable movement of people into cities, or steered people or enterprises to inappropriate urban locations. Several of the BRICS bear heavy burdens from past failures to accommodate urban population growth equitably and efficiently. To avoid such burdens, cities and nations need to plan proactively for urban growth, making use of both markets and planning tools, and engaging with all sectors of society, including the economically and politically weakest. Rapid urbanization in the BRICS has generally accompanied economic growth and a shift out of agriculture. Nevertheless, governments have been ambivalent about urbanization, even causing some of the economic and social disruption that has attended this march toward urbanization; examples are China during the Cultural Revolution and South Africa during Apartheid. Each country illustrates different lessons about the opportunities and risks associated with urbanization. Brazil’s reluctant urbanization and the emergence of favelas. Brazil’s world-famous slums or shanty towns also called favelas show how the failure to accommodate growing urban populations can lead to enduring social inequalities. Fearing that urban planning would encourage poor rural migrants, the Brazilian government did little to plan for rapid urban growth. Inaction did not slow the pace of urbanization, but poor planning did contribute to a very unequal urbanization, with large segments of the population inhabiting poorly located and ill-served informal settlements. Many inhabitants have done surprisingly well under the circumstances, but hazardous locations, enormous barriers to service delivery, bad relations with local authorities, and the like persisted. In recent decades, pioneering approaches have emerged: participatory budgeting in Porto Alegre, sustainable travel in Curitiba, and condominial sewerage in various cities. These and other innovations have gained international renown. The national government has introduced some of the most inclusive urban legislation, as exemplified by its ambitious City Statute. Nevertheless, the problems of the divided city, stemming from past urban policies, remain a huge challenge. In retrospect, a more inclusive and proactive approach to rural-urban migration and urban growth from the start would have been more equitable at the time and very beneficial in the long run. China’s ardent urbanization and rapid economic growth. China’s economic transformation, which began as a rural experiment, soon became urban, involving first a string of coastal cities, then larger urban regions, then inland cities. These innovative cities soon brought vast quantities of capital from around the world together with low-wage workers from China’s agricultural regions. The central government progressively loosened controls on private investment within cities and on temporary rural migration into the cities. Economic powerhouses arose incrementally from locally driven but centrally sanctioned urban experimentation. City governments were given increasing powers and put under enormous pressure to raise economic production. A dominant model emerged of entrepreneurial city bureaucrats taking lead roles in land conversions. They oversaw the transformation of low-value urban or rural land into serviced plots whose long-term leases were sold at near-market prices to real estate developers, or at lower prices to investors promising industrial or commercial establishments. China’s stunning economic success highlights the importance of achieving moderately efficient urbanization for economic growth, but it is based on policies other countries would struggle to replicate and has brought unenviable environmental costs and social inequalities. China has recently tried to reduce these detractions while maintaining rapid economic growth, but it has been difficult to challenge the existing model, whose success is based on closely aligning local authorities’ official and unofficial interests with market pressures, even when that causes environmental damage or amplifies inequalities. Urban experimentation could still hold the key to progress on social and environmental agendas, but local alliances of entrepreneurial bureaucrats and developers are unlikely to drive these agendas. (box continues next page)
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Global Monitoring Report 2013 Rural
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© 2013 International Bank for Reco
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vi CONTENTS GLOBAL MONITORING REPOR
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viii CONTENTS GLOBAL MONITORING REP
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Foreword Global Monitoring Report (
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Acknowledgments This report has bee
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Abbreviations and Acronyms ADB Asia
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GMR 2013 Rural-Urban Dynamics and t
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4 OVERVIEW GLOBAL MONITORING REPORT
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10 OVERVIEW GLOBAL MONITORING REPOR
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Goals and Targets from the Millenni
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Progress toward the MDGs Only two y
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primary completion, and access to s
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FIGURE 1a Poverty rates (living on
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MDG 2 Achieve universal primary edu
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MDG 3 Promote gender equality and e
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MDG 4 Reduce child mortality In mos
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MDG 5 Reduce maternal mortality MDG
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MDG 6 Combat HIV/AIDS, malaria, and
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FIGURE 6e Children under age 5 who
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FIGURE 7b Access to sanitation by r
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Improving the measurement of develo
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1 Macroeconomic, Trade, and Aid Dev
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2 Rural-Urban Disparities and Dynam
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