SHAPING THE FUTURE HOW CHANGING DEMOGRAPHICS CAN POWER HUMAN DEVELOPMENT

Municipal governments
in Asia-Pacific are
among the weakest
in the world
168
MANAGING THE REGION’S CITIES 41
As Asia-Pacific’s cities grow, they confront vast
demands for land, housing, jobs, infrastructure,
water, energy and social services. Many are
already operating at nearly full capacity, and
lack the necessary institutions, policies and
investments to provide additional services and
infrastructure for growing populations. In terms
of governance, cities and urban governments in
Asia-Pacific are among the weakest in the world.
If urbanization is not well managed and soon,
however, Asia-Pacific will likely not sustain
the momentum of economic growth or human
development, and it will lose much of its demographic
dividend. The most serious impediments
include weak public administration and limited
authority, inadequate capacity, financial deficits,
TABLE 5.3:
Most countries have multiple tiers
of government
Source: Smoke 2013.
and public policies biased towards the middle
and upper classes. These are not new issues, but
unprecedented urban growth will increasingly
complicate the ability of policy makers to respond
effectively, underlining the need to tackle
persistent challenges earlier rather than later.
Asia-Pacific currently has diverse administrative
and political systems to manage its cities,
ranging from those that are more centralized
and top down, as in China and the Republic
of Korea, to those that are more decentralized,
for example, in Indonesia and the Philippines.
Customary and traditional laws and governance
systems prevail in some places, often coexisting
with modern state institutions, as in Malaysia
and many Pacific island states.
Most governance systems are plural and
multitiered (Table 5.3), spanning central governments,
state/provincial governments, local
governments, and an array of autonomous municipal
corporations and metropolitan bodies. 42
The composition, powers and practices of local
governments vary, typically deriving from
legislation or directives from higher levels of
government. In towns and smaller cities, the
governance structure generally includes a policy-making
body such as a town or city council,
and an executive arm such as a mayor. But
these bodies are often vested with only limited
authority. Central governments usually remain
responsible for raising most tax revenue, spending
the largest share of the public budget, and
defining rules for how subnational governments
operate, even if the latter are charged with local
service delivery.
The Philippines has three levels of local
government: province, city and municipality,
and barangay. While all chartered cities 43 have
their own corporate and administrative entities
governed by specific municipal charters, the
national government has strong influence over
local governments, which have limited authority
to collect taxes and largely rely on central revenue
allotments. In Malaysia, by contrast, local
governments collect assessment taxes, create
by-laws, and grant licenses and permits. They
provide basic amenities, collect and manage
waste and garbage, and plan and develop the area
under their jurisdiction. The Federal Ministry
of Housing and Local Government coordinates
and standardizes practices across the country.