STATE OF THE WORLD'S CITIES 2012/2013 Prosperity

urban poor, particularly in slums and squatter settlements.
Deficient infrastructure can drive up the costs of doing
business in urban areas and reduce firm productivity by
as much as 40 per cent30 , and its impact can be as large
as those of crime, bureaucracy, corruption or financial
market constraints. 31 Deficient infrastructure is also a
major impediment to trade and competitiveness in many
developing countries, particularly landlocked and small
island states. In the case of Africa, the proportion of paved
roads in is about five times less than in high income OECD
countries; the end-result of this infrastructure bottleneck
is that transport costs are 63% higher in African countries
compared with developed countries. 32 This has major
implications for competitiveness of African cities on local
and international markets.
High incidence of slums and poverty
Slums feature the most deplorable living and environmental
conditions and are characterized by inadequate water
supply, poor sanitation, overcrowded and dilapidated
housing, hazardous locations, insecurity of tenure and
vulnerability to serious health risks – all of which have
major implications for quality of life. Slums are also known
for their atmosphere of fear and the social and economic
exclusion of their residents. 33 Slum dwellers are often
Figure 3.1.2
Perceived impediments to the prosperity of cities
per cent of respondents
45
40
35
30
25
20
15
10
5
0
99
From Comparative Advantage to Urban Prosperity
stigmatized on account of
Cities with large
their location and are often
proportions of their
discriminated against in
populations living in slum
conditions are less likely to
terms of access to public
be prosperous.
and social services, as well
as employment.
Slum prevalence
is highest in Sub-Saharan Africa (62 per cent), where
basic services are lacking not only in informal, but
formal settlements, too. North Africa features the lowest
prevalence (13 per cent). In Asia, the average proportion
of urban populations living in slums ranges from 25 per
cent in Western Asia to 35 per cent in South Asia. In Latin
America and the Caribbean, average slum prevalence is
24 per cent. To a large extent, regional patterns of slum
prevalence reflect degrees of access to basic services such
as water and sanitation, as well as the nature of urban
development policies.
Poor governance & weak institutions Corruption Inadequate infrastructure
High incidence of slums and poverty
High levels of crime
High cost of doing business Low levels of human capital
Africa Asia LAC Arab States All regions
Source: UN-Habitat City Monitoring Policy Survey, 2011
FACT
Inadequate infrastructure is a major impediment to the
prosperity of cities. The impacts of deficient infrastructure
appear to be more pronounced in Asian and African cities and less
so in Arab States.
FACT