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

From Comparative Advantage to Urban Prosperityproviding adequate infrastructure and urban services,improving the quality of life, making society more equitable,and ensuring environment sustainability.Of course, there are instances where non-democraticleadership is associated with a degree of economicprosperity, but this is the exception rather than the rule.Indeed, non-democratic regimes are coterminous withpathologies such as predation and expropriation, and inthe long-run undermine the institutions underlying thatprosperity. 18 It has been noted that autocratic governmentsoften distribute benefits to an elite group, while democraticgovernments distribute benefits more widely to gain thesupport of the general public. 19Favourable business environmentA business-conducive environment is needed for a vibrantprivate sector, attracting and retaining investment (includingforeign direct), creating jobs and improving productivity –all of which are important for the promotion of growth andfor expanded opportunities for the poor. 20Cities such as Singapore, Hong Kong, Seoul, Busan,Kuala Lumpur, Tokyo, Yokohama and Osaka all featurefavourable business environments, with beneficial effects onprosperity. In Africa, it is easier to do business in St Louis(Mauritius), Johannesburg, Kigali, Tunis and Gaboronethan in Kinshasa, Conakry, Asmara, N’Djamena or Bangui,which are located in countries that rank low in businessenvironment. Generally, cities in the former group ofcountries tend to be more prosperous than those in the latter.Rwanda has consciously deployed a business-friendlyenvironment, in the process bringing a higher degree ofprosperity to its capital, Kigali. In recent years, Rwandahas undertaken reforms to streamline business procedures,create a favourable legal framework, reduce bureaucracy,and improve service delivery in order to promote bothdomestic and foreign investment. For instance, in Kigali,registering a business takes only three days and costs lessthan five per cent of the average income in an environmentdevoid of corruption, making the city “a very easy place fora global firm to operate”. 21Access to basic amenitiesAn efficient mass transit system is essential for the seamlessmovement of people and goods within and between cities,which in turn is vital for the prosperity of cities. In Lagos,the bus rapid transport (BRT) system has attracted newpatronage, lowered average fares, creating 1,000 jobs aswell as indirect employment for over 500,000 people. 22factA system that ensures that local officials are electedis ranked by local experts as the fifth most importantpolicy-related factor that enhances urban prosperity. The electionof local or city officials presupposes the existence of stabledemocracy through which citizens are empowered to elect andremove their leaders through an open, free and fair ballot.policyPolitical institutions like democracy are essentialif the conditions for prosperity are to be laid outand nurtured.factAcross the four developing regions surveyed by UN-Habitat, a favourable business environment is perceivedto be most important in Asia – possibly pinpointing the role playedby cities in the region, creating an enabling environment forbusinesses and attracting foreign direct investment.factIn South Africa, theAccess to basicGautrain is expectedamenities andto reduce road trafficinfrastructure, includingbetween Johannesburgimproved public transportand Pretoria by 25,000-and ICT, is a factor that30,000 cars per day; this is will enhance the prosperityof any city. This factorone of the busiest roads inis considered as mostSouth Africa where trafficimportant in African andincreases an average seven Asian cities.per cent every year. 23 InBogotá, the BRT providesfast and reliable transportfor over 1.4 millionCities with apassengers per day, in thepolicy favourablebusiness environment andprocess reducing trafficentrepreneurial culturecongestion and enhancing are more likely to beenvironmental quality. 24prosperous.In addition to theforegoing, access to basicamenities can deliver majorprosperity-enhancing benefits such as: supporting economicgrowth; contributing to achievement of MillenniumDevelopment Goals through improved health and education;improving quality of life especially for youth and women;enhancing environmental quality through improved accessto water and sanitation, which in turn reduces morbidity andmortality, and fosters greater productivity.97