STATE OF THE WORLD'S CITIES 2012/2013 Prosperity

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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.
State of the World’s Cities 2012/2013 dispensation. Conditions have been put in place for civic mobilisation, bringing together politicians, the private sector, professionals and communities, with the aim of building a future that benefits everyone. The collective energy behind this compact reconstructs the foundations of shared prosperity in all socioeconomic spheres. Helsinki, a city that features prominently in the UN-Habitat City Prosperity Index, has invested in human capital, promoted innovation and developed strong institutions, using a multi-prong approach to enhanced prosperity. 60 POLICy Legal and institutional transformation for the sake of prosperity is not confined to the cities of the developed world. Despite the formidable challenges facing them, a number of Asian and African cities are taking significant steps, with some already achieving visibly higher degrees of prosperity. Cities such as Bangalore and Hyderabad, South Africa’s Gauteng urban region, Nairobi, Dakar and Dar es Salaam are all engaged in the pursuit of shared, sustainable prosperity through effective legal, regulatory and institutional frameworks. Bangalore clearly demonstrates the challenges of higher prosperity path against a developing country background; but the city benefits from strong institutional synergies, with investment Shared prosperity is not accidental, nor is it an automatic outcome of economic growth or market forces. It is a human, collective construct which requires vision, leadership and a coherent programme of action. In Helsinki, the FACT enabling potential of legal and regulatory instruments is used to build a dynamic institutional framework which enhances shared prosperity. Shared and POLICy integrated prosperity in cities is about the reclaiming of a sense of community and sustainability through urban power functions. Endnotes 1 Oyelaran-Oyeyinka, B. and P.G. Sampath (2010) Latecomer Development: Innovation and Knowledge for Economic Growth, Routledge, London and New York. 2 Kratke, S. (2011) The Creative Capital of Cities: Interactive Knowledge Creation and The Urbanization Economies of Innovation, Wiley-Blackwell ,Chichester 3 Oyelaran-Oyeyinka, B. and P.G. Sampath (2010) op. cit. 4 Kratke, S. (2011) op. cit. 5 Landry, C. (2000) The Creative City, Earthscan, London. 120 by national, state and local government, including Greater Bangalore authority. The private-public partnership model seems to be the driving factor behind the city’s enhanced prosperity, together with a well-adapted regulatory framework for Information Technology Parks, an attractive environment for highly skilled labour, and facilitating the establishment of training and research institutions. A pedestrian footbridge at night in the modern city of Shenzhen, China. © Fuyu Liu/Shutterstock.com 6 Landry, C. (2000) The Creative City, Earthscan, London. 7 Ibid. 8 Landry, C. (2000) op. cit. 9 ‘Urbanization economies’ refer to the advantages gained from a specific urban location: proximity to markets, available labour force, communications, and auxiliary business services.
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PRODUCTIVITY ENVIRONMENTAL SUSTAINA
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Foreword This is a time of crises.
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Acknowledgements CORE TEAM Director
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Chapter 1.1 Conceptualizing Urban P
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State of the World’s Cities 2012/
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Part Two
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STATE OF THE WORLD'S CITIES 2012/2013 Prosperity

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