SHAPING THE FUTURE HOW CHANGING DEMOGRAPHICS CAN POWER HUMAN DEVELOPMENT

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Investing in essential infrastructure propels growth and human development 174 Consider alternative instruments of finance to increase fiscal self-reliance. These could include user fees, real estate taxes, municipal bonds, land-based financing instruments, development impact fees, 55 tax increment financing, special tax districts, business improvement districts within cities, and redistribution of property tax base growth within a metropolitan area. 56 Options should be considered based on a sound assessment of local capacities for management. Municipal bonds are increasingly used to raise capital, where bond markets have begun to emerge. In Viet Nam, Ho Chi Minh City issued the country’s first municipal bond in 2003 to supplement capital for infrastructure investment. Principal and interest payments came from the city’s budget. This opened a new fundraising channel and was replicated in other Vietnamese cities. 57 Similar instruments have been used in Bangladesh, Indonesia and the Philippines. User fees and charges are another option for funding. In many Asia-Pacific countries, user fees cover substantial parts of urban services such as electricity, water and public transport. They can be beneficial both for containing excessive demand and increasing the supply of public services. Appropriate user fees for environmentally sensitive services such as waste collection, water treatment and transportation can help contain environmental degradation. A congestion charge or parking fee can be an effective instrument for regulating traffic and decreasing air pollution, while funding urban infrastructure. Explore new partnerships to finance infrastructure. In the Philippines, Mandaluyong City used a public-private partnership to rebuild its public market. In China, India and Indonesia, public-private partnerships have been used to stimulate affordable housing construction for the poor. 58 Careful consideration needs to be given to these partnerships to ensure they provide a public benefit and minimize public risk, however, including through a clear initial process of assessment, and sound project design and management. Ensure resources reach the most vulnerable. Raising sufficient resources only serves human development goals if they are used to promote balanced growth and reach underserved or disconnected populations. Fair and effective resource allocation has always been a challenge in Asia-Pacific, both at the local and national levels. Allocations in urban areas need to prioritize providing services to vulnerable communities and reaching all people at all stages of life. Intergovernmental transfers should aim to equalize economic and income disparities among local governments, recognizing that the dominance of primary cities in Asia-Pacific has often resulted in skewed regional development. One approach is to compensate for inequalities through income transfer mechanisms and targeted investments in disadvantaged areas, such as in infrastructure and public education. Effectiveness depends on long-term strategic planning to allocate resources appropriately, ensuring they reach first the poorest and most vulnerable communities. IMPROVE INFRASTRUCTURE TO MAKE CITIES MORE COMPETITIVE A substantial infrastructure gap exists across the region, with cities plagued by power cuts, poor quality roads, inefficient ports, inadequate schools and insufficient transit systems, among other issues. While some progress has been made in narrowing the deficit over the past few decades, much more needs to be done to remove bottlenecks and upgrade systems that make cities competitive and positioned to sustain economic growth. Close the infrastructure deficit. To make cities more liveable, governments need to provide high-quality infrastructure—physical and social. Asia-Pacific’s ability to continue growing at current rates and advance its human development will largely depend on adequate transport, energy, water, waste management, banking services, telecommunications, drainage, flood control and preparation for the adverse effects of climate change, among other issues. Infrastructure provision needs to be inclusive, reaching all citizens—including through targeted investments to reach the most marginalized people. It should also be environmentally sustainable. Integrated transport infrastructure, for instance, can link people to jobs, convey products, connect economic centres, stimulate business development and reduce air pollution.
BOX 5.7: How competitive are Asia-Pacific’s cities? The Economist Intelligence Unit developed the 2025 City Competitiveness Index to rank the competitiveness of 120 cities across the world based on their ability to attract capital, businesses, talent and visitors today and in 2025. The index includes 27 qualitative and 5 quantitative indicators. North American, European and Asia-Pacific cities— namely New York; London; Singapore; Hong Kong, China (SAR); Tokyo; Sydney; Paris; Stockholm; Chicago and Toronto—are the top 10 most competitive cities today and are likely to retain their advantages until 2025, despite concerns over ageing populations and infrastructure. Many cities in China and the Republic of Korea have already made it into the top 50, while a number of Indian cities are expected to soon catch up with East Asian ones. Mumbai is among the top three in terms of rapidly improving competitiveness. The quality of a city’s infrastructure and institutions along with easy maritime access help them rapidly ascend in the overall rankings. Cities of all sizes can be competitive. For example, in 2025, the top 10 most competitive cities are expected to range from the world’s biggest (Tokyo, with an estimated population of 37 million) to some of the smallest (Zurich, estimated population 1.4 million). Source: The Economist Intelligence Unit Limited 2013. Build competitiveness: Many factors that affect countries’ competitiveness, such as infrastructure, the presence of educational and research institutions, and the quality of public administration, are directly linked to urbanization. While some Asia-Pacific cities are successful in attracting talent and investment, and ensuring prosperity and good public services for their citizens, others are struggling to cope with challenges such as the large-scale influx of people from rural areas or the inability to provide decent jobs or housing. Currently, North American and European cities, along with some in Asia-Pacific, namely, Singapore; Hong Kong, China (SAR); Tokyo and Sydney, are among the world’s most competitive, an advantage they will likely retain until around 2025, despite ageing populations and infrastructure (box 5.7). Developing cities in Asia-Pacific countries need to reinvent themselves and build their competitiveness, including to leapfrog rivals in other parts of the world. Some key priorities are to increase institutional effectiveness, establish mature and well-recognized financial systems, improve quality of life, bolster appealing urban social elements, maintain a safe and clean environment, and aim for global appeal. One important aspect of physical infrastructure is citywide high-speed wireless networking, which can eliminate the need to lay cables, improve communications, and help draw new talent and investment. INTEGRATING CITIZENS INTO URBAN ECONOMIES, SOCIETIES AND POLITICAL PROCESSES Since exclusion is a critical impediment to human development in urban areas, every effort needs to be made to integrate marginalized populations and new arrivals. Beyond targeted spending on infrastructure and services, this includes support for finding decent work, and encouraging greater citizen participation in governance. Open doors to migrants. Carefully crafted policies for rural-urban migrants should aim at protecting their rights and well-being, including by ensuring access to justice, health-care, education and other essential services. This can enhance development outcomes in both urban and rural communities. Urban migration registration systems and unemployment insurance, access to finance and job training are among the tools to help migrants gain a foothold in the urban economy. Initiatives targeting young people should promote skills development, employment opportunities, and social and political participation, since youth who migrate to cities often have limited means and low levels of education, and are at high risk of exploitation. Take special measures related to age, gender and disability. Cities will need to adapt their structures to accommodate a growing number of older people—a process already underway The rights of all citizens should be protected, including rural-urban migrants 175
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ASIA-PACIFIC HUMAN DEVELOPMENT REPO
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ASIA-PACIFIC HUMAN DEVELOPMENT REPO
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FOREWORD We live in times of great
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ACKNOWLEDGEMENTS The Asia-Pacific H
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Table of Contents Foreword iii Pref
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1.15 Population age-composition is
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Acronyms ADB Asian Development Bank
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Overview SHAPING THE FUTURE: HOW CH
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HUMAN DEVELOPMENT IN ASIA-PACIFIC:
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FIGURE 2: Wealthier countries tend
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a strong emphasis on protecting wor
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could provide job matching assistan
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Asia-Pacific leave the workforce at
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WHAT’S AHEAD IN THIS REPORT This
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Chapter 1 HOW CHANGING DEMOGRAPHICS
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sustainable, reaching everyone whil
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FIGURE 1.1: The Human Development I
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TABLE 1.1: Asia-Pacific still has l
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married couples to have children, a
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FIGURE 1.5: Population pyramids in
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FIGURE 1.8: The median age is high
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FIGURE 1.10: Disparities in fertili
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Improved overall human development
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TABLE 1.5: Countries in Asia-Pacifi
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“When relatively large generation
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38 Having fewer dependents on worki
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40 In developed Asia- Pacific, the
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TABLE 1.6: Demographic dividends fl
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44
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2. MORE PEOPLE AT WORK: THE FOUNDAT
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encouraged labour-intensive industr
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FIGURE 2.3: Peaks within subregions
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A DEMOGRAPHIC RETURN FOR HUMAN DEVE
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BOX 2.1: Women bear a larger burden
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FIGURE 2.8: Growth in labour produc
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WHAT’S BEEN LEARNED IN CHINA, JAP
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FIGURE 2.13: Japan is past its work
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FIGURE 2.15: Thailand still has tim
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make this a key aim of national dev
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investment climate, as well as enco
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TABLE 2.4: Shares of workers in the
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Even before leaving home, migrant w
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Promote health and safety at work:
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BOX 2.8: Malaysia transforms an ind
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of resilient infrastructure are joi
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Chapter 3 NURTURING CHILDREN, UNLOC
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Asia-Pacific is home to 1.7 billion
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Commendable progress in education m
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Quality primary education mitigates
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In most Asia-Pacific countries, sec
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Strong tertiary education is a buil
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FIGURE 3.3: Access to tertiary educ
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94 TABLE 3.9: Youth illiteracy has
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TABLE 3.11: Child mortality rates b
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BOX 3.7: Malnutrition and disabilit
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Despite social and economic progres
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FIGURE 3.8: The share of youth who
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104 Young migrants are highly vulne
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as an important challenge. But they
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TABLE 3.15: Some countries with lar
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Immunization saves children’s liv
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BOX 3.10: Germany’s vocational tr
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BOX 3.12: Partnering with youth in
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116
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4. AGEING SOCIETIES: NEW OPPORTUNIT
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FIGURE 4.1: Asia-Pacific is one of
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Page 141 and 142: BOX 4.3: A plan of action for older
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Page 147 and 148: TABLE 4.3: Social pensions are an i
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Page 151 and 152: BOX 4.7: Increasing links between p
Page 153 and 154: cupy space in some public buildings
Page 155 and 156: ment bodies, encourage regular inte
Page 157 and 158: BOX 4.9: Ageing countries begin enc
Page 159 and 160: help coordinate the work of other g
Page 161 and 162: for older people. Many advanced cou
Page 163 and 164: action. Free public transport, and
Page 165: Chapter 5 TAPPING THE HUMAN DYNAMIS
Page 168 and 169: In the last 30 years, Asia-Pacific
Page 170 and 171: FIGURE 5.3: Even countries with few
Page 172 and 173: FIGURE 5.6: Most people will contin
Page 174 and 175: 160 Social, cultural and economic i
Page 176 and 177: The benefits of urbanization have n
Page 178 and 179: BOX 5.2: Pioneering urban poverty r
Page 180 and 181: vehicles on the road. Beijing issue
Page 182 and 183: Municipal governments in Asia-Pacif
Page 184 and 185: TABLE 5.4: Revenue mobilization opt
Page 186 and 187: 172 City governments need to have t
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Page 192 and 193: BOX 5.9: The Republic of Korea emba
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Page 197 and 198: 6. AN AGENDA FOR ACTION: SHAPING TH
Page 199 and 200: Development Report argues, decent w
Page 201 and 202: with ministries overseeing youth, e
Page 203 and 204: This is an urgent priority in a reg
Page 205 and 206: SUSTAINING HUMAN DEVELOPMENT ACROSS
Page 207 and 208: plan automatically enrols people in
Page 209 and 210: BOX 6.3: Developing Delhi’s metro
Page 213 and 214: End Notes CHAPTER 1 1. UNFPA 2014b.
Page 215 and 216: 63. WHO 2014b. 64. UNFPA 2012. 65.
Page 217: produces 40 percent of total econom
Page 220 and 221: 206 The Asia Foundation. 2013. “T
Page 222 and 223: 208 CODI (Community Organizations D
Page 224 and 225: 210 Global Migration Group. 2014.
Page 226 and 227: 212 Janwani. 2010. “Annual Report
Page 228 and 229: 214 ———. 2012a. OECD Employme
Page 230 and 231: 216 ———. 2011. “Follow-up t
Page 232 and 233: 218 York. [www.unfpa.org/sites/defa
Page 234 and 235: ———. 2012c. Malaysia Economic
Page 236 and 237: tables include the Caribbean countr
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TABLE 2: Trends in the Human Develo
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TABLE 4: Gender Inequality Index 22
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TABLE 6: Trends in income poverty,
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TABLE 8: Fertility rate and crude d
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TABLE 10: Trends and share of child
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TABLE 12: Trends and share of young
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TABLE 14: Trends and share of older
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TABLE 16: Education indicators and
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TABLE 17: Health indicators 242
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TABLE 18: Employment and unemployme
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TABLE 19: International trade, fina
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ABOUT ASIA-PACIFIC HUMAN DEVELOPMEN
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