state of the world's cities 2012/2013 - United Nations Sustainable ...

From Comparative Advantage to Urban ProsperityUrban planning can contribute to the prosperity of citiesin various ways.While there is growing recognition of the benefits,positive contribution and potential opportunities associatedwith cities, urban planners and policymakers in somedeveloping countries are still ambivalent about theimportance of urbanization and some cases, show aversionto the urbanization process. This should not be the case,because cities generate the bulk of GDP; they are theengines of growth and centres of innovation.There at least two ways to achieve this. The first isto nurture the growth of high-productivity activities –particularly manufacturing and services, which benefit fromagglomeration economies. The second entails managingthe negative externalities associated with the economicgrowth and success of cities – congestion, inequality, crimeand violence, and soaring cost of land and housing, amongothers. 5 Neglecting cities even in countries with low levelsof urbanization can impose significant costs. 6The positive nature of urbanization can be beneficialto the poor if the common deprivations that affecttheir daily existence are adequately addressed. Suchdeprivations include limited access to income andpolicyManaging urbanization is essential to nurturing theprosperity of cities. Cities that want to grow andbe prosperous in all five dimensions must make urbanizationwork well.policyWhen urbanization is planned and well-managed, anddistributive mechanisms of prosperity are put in place,it can contribute to poverty reduction.employment; inadequateliving conditions; poorinfrastructure andservices; risks associatedwith living in slums;spatial issues which inhibitmobility and transport;and inequality associatedwith exclusion.Effective urbanplanning, together withpolicyAnother wayurban planningcan bring about moreliveable cities consists intackling slums and informalsettlements, as no city canclaim to be prosperouswhen large segments ofthe population live in slumconditions.Figure 3.1.1Factors underlying urban prosperityper cent of respondents35Efficient urban planning &managementDecentralization policies &appropriate institutionsPolicies that promote participation Elected local officialsof civil societyAccess to basic amenities including public transportSystem that creates equalopportunities for allSound business environment &entrepreneurial culture302520151050Africa Asia LAC Arab States All regionsSource: UN-Habitat City Monitoring Policy Survey, 201193