STATE OF THE WORLD'S CITIES 2012/2013 Prosperity

Urban planning can contribute to the prosperity of cities
in various ways.
While there is growing recognition of the benefits,
positive contribution and potential opportunities associated
with cities, urban planners and policymakers in some
developing countries are still ambivalent about the
importance of urbanization and some cases, show aversion
to the urbanization process. This should not be the case,
because cities generate the bulk of GDP; they are the
engines of growth and centres of innovation.
There at least two ways to achieve this. The first is
to nurture the growth of high-productivity activities –
particularly manufacturing and services, which benefit from
agglomeration economies. The second entails managing
the negative externalities associated with the economic
growth and success of cities – congestion, inequality, crime
and violence, and soaring cost of land and housing, among
others. 5 Neglecting cities even in countries with low levels
of urbanization can impose significant costs. 6
The positive nature of urbanization can be beneficial
to the poor if the common deprivations that affect
their daily existence are adequately addressed. Such
deprivations include limited access to income and
Figure 3.1.1
Factors underlying urban prosperity
per cent of respondents
35
30
25
20
15
10
5
0
Ef�cient urban planning &
management
Policies that promote participation
of civil society
93
From Comparative Advantage to Urban Prosperity
employment; inadequate
living conditions; poor
infrastructure and
services; risks associated
with living in slums;
spatial issues which inhibit
mobility and transport;
and inequality associated
with exclusion.
Effective urban
planning, together with
Access to basic amenities including public transport
Decentralization policies &
appropriate institutions
System that creates equal
opportunities for all
Elected local of�cials Sound business environment &
entrepreneurial culture
Africa Asia LAC Arab States All regions
Source: UN-Habitat City Monitoring Policy Survey, 2011
POLICy
Managing urbanization is essential to nurturing the
prosperity of cities. Cities that want to grow and
be prosperous in all five dimensions must make urbanization
work well.
POLICy
When urbanization is planned and well-managed, and
distributive mechanisms of prosperity are put in place,
it can contribute to poverty reduction.
POLICy
Another way
urban planning
can bring about more
liveable cities consists in
tackling slums and informal
settlements, as no city can
claim to be prosperous
when large segments of
the population live in slum
conditions.