SHAPING THE FUTURE HOW CHANGING DEMOGRAPHICS CAN POWER HUMAN DEVELOPMENT

local authorities to provide public services and
develop resource allocation plans. These cities
could in many cases rely more heavily on their
own financing rather than transfers from higher
levels of government, perhaps freeing resources
for smaller cities in greater need. New laws and
appropriate wealth transfer mechanisms could
back strategic resource planning to equitably
distribute resources among all municipalities
and peri-urban areas within the megacity and
its adjoining areas.
By contrast, smaller cities face critical problems
with poor infrastructure, limited technical
capacity and constrained resources. Their
priorities may need to include capacity-building
initiatives that hone urban planning and
management skills, enhanced infrastructure
and essential services, and collaboration with
neighbouring cities to define competitive niches
to take advantage of economies of scale, such
as through joint service delivery.
Realize the potential of small and medium cities.
In recent years, small and medium cities have
grown rapidly in many Asia-Pacific countries.
They act as economic growth centres and are
important as bridges between rural and large
urban areas. Their potential has not yet been
fully exploited, however. An increased focus on
them could bring about not only higher economic
growth but also greater efficiency, as they often
do not face constraints such as serious traffic
congestion and rental costs. Booming and dynamic
small and medium cities could also play
a key part in reducing income inequality and
promoting balanced spatial development.
THE REGION’S FUTURE
DEPENDS ON CITIES
The unprecedented speed of Asia-Pacific urban
transition has left many of the systems and institutions
that manage cities behind. But countries
should not view urbanization as a problem. It
is in fact a powerful tool to unlock human development
and capture historic demographic
dividends offering enormous impetus to progress.
City and national planners need to act now
to catch up, because urbanization will only
accelerate. Long-range strategies should capture
the scale of the coming changes, adopting
investments and reforms aimed at development
goals that extend beyond short-term political
cycles. Governments at all levels must be committed
to social inclusiveness, environmental
sustainability, and improved quality of life for
all citizens, rather than economic growth and
efficiency alone. City planners must take up
the imperative of designing specific strategies
for young people, working-age people and the
elderly, both as an issue of equity and to tap
demographic benefits.
Across the Asia-Pacific region, urban areas
are already taking actions and adopting innovations
to achieve sustainable and inclusive cities.
Reform can be a difficult and fragile process,
dependent on sustained political support and
commitment. It must remain closely attuned
to diverse needs. But given the impact of urbanization
on people’s lives, and the potentially
greater dividends for development over the long
term, the region’s future depends very much on
better managing its cities.
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