STATE OF THE WORLD'S CITIES 2012/2013 Prosperity

uilding codes to support urban reforms, not to mention
squatter regulation and slum upgrading. On top of that,
cities today must provide accommodative measures, allowing
for progressive construction, smaller plot sizes and multiple
variants of land tenure. Similarly, utility standards must be
adjusted, and new development financing channels devised,
in the face of inequity and exclusion.
INSTITUTIONAL TRANSFORMATION
Some of the real-life experiences outlined in this chapter
suggest that when it comes to structuring the urban power
functions that form the hub of the ‘prosperity wheel’, it
is for every city to make its own choices. Indeed, many
choices have already been made; but common to all is the
adaptation and consolidation of key institutions which
harness the energy and engagement of all stakeholders in
a city. Major stakeholders, such as business, professionals,
civic organisations, besides neighbourhood associations,
must be provided with an institutional avenue for effective
engagement with urban prosperity – how it is generated
and how it is shared. Such engagement transcends the
traditional participatory practices of forums and consultative
Box 3.2.4
Law, institutions and the public interest
Urban space is shaped by laws, rules and institutions (or lack
thereof) in response to the needs and requirements of varying
numbers of stakeholders. In this sense, the prosperity of a city
is also a legal and institutional construct, and the past has some
lessons for early 21st century central and municipal governments.
Major legal systems around the world have long recognised that
far from being just an abstract norm, law and institutions have the
capacity to shape up a variety of interests across ethnic, cultural
and other divides. They do so within the spatial confines of their
jurisdictions, and with a long-term view. 61
This is the background against which the state has historically
emerged as the apex body of an interdependent network of
powerful repositories of different kinds of power – legal, religious,
bureaucratic, economic, etc. 62 In this role, the state has gradually
built a monopoly over universality. This went hand in hand with the
constitution of bureaucratic functions independent of particular
interests – family, religion, the economy – with agents that were
mandated to embody the public interest. Along with this came the
constitution of a new, “public” kind of resources that embodied
universality, or at any rate a degree of universality that was superior
to that of previously existing resources. This public realm gradually
stood out against particular interests, and also against private
appropriation of public functions through patronage or nepotism.
Innovating to Support the Transition to the City of the 21st Century
119
FACT
POLICy
As some cities have found out, shared prosperity involves
a serious review of regulatory frameworks.
As some cities have come to realise, shared and
integrated prosperity is a socio-political project,
involving a commitment by all stakeholders and entailing a
re-examination of laws, regulations, and the corresponding
institutional framework.
mechanisms; it turns socioeconomic conditions into levers
of enhanced prosperity, with every household and business
considered as an asset to be safeguarded, optimized and
promoted – empowered – for the benefit of all
An exemplary case of institutional innovation for shared
prosperity is that of Medellín. During the past decade,
the Colombian city’s prosperity has experienced major
turnaround, as it endeavoured to overcome the combined
challenges of poverty, inequality, exclusion and informality,
besides rampant violence, through a whole new social
As the state evolved into “the geometric focal point of all
perspectives” and a principle of public order, it established a
unified space – imposing spatial over social, genealogical or other
types of proximity. In the process, public authority has gained
more recognition from the various segments of society, which
further consolidates both its privileged position and its efficiency.
As a result, the notion of “public interest” can pave the way for
consensus and mobilization; at any rate, it sheds light on reality
and becomes a shared evaluation criterion.
Historically, in China as in Europe, the city has served as the
privileged locus of the emergence of the state and the public
interest as we know them today. In 11th century Western
Europe 63 , it fell to municipal authorities to control violence as
well as economic and political relations. Although the poor were
effectively left out of some functions, they were equal members
of the assemblies in charge of endorsing municipal officials and
laws (including those on economic activities). Moreover, purchase,
sale and mortgaging of land and buildings were open to all. At the
time, the protections and safeguards provided by cities also aimed
at preserving their prosperity from heavy-handed monarchs or
emperors.