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Industry Agenda Inspiring Future Cities & Urban Services ...

Industry AgendaInspiring Future Cities & Urban Services shaping the Future of Urban development & Services InitiativeApril 2016 Contents3 Foreword6 Executive Summary9 1. The Future of Cities9 It s an Urban World10 Challenges Due to Urbanization13 The Future of Cities15 The Business of Running Cities : Urban Services18 2. Enablers for Adopting New Models for Urban Services18 Challenges19 Enablers26 3. Accelerating Public-Private Partnerships for Urban Services26 The Need for Collaboration27 Risks in Public-Private Partnerships28 Addressing Risks (Government-Initiated Actions)29 Addressing Risks (Private-Sector-Initiated Actions)30 Attracting Private Players34 4.

Industry Agenda Inspiring Future Cities & Urban Services Shaping the Future of Urban Development & Services Initiative. April 2016

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Transcription of Industry Agenda Inspiring Future Cities & Urban Services ...

1 Industry AgendaInspiring Future Cities & Urban Services shaping the Future of Urban development & Services InitiativeApril 2016 Contents3 Foreword6 Executive Summary9 1. The Future of Cities9 It s an Urban World10 Challenges Due to Urbanization13 The Future of Cities15 The Business of Running Cities : Urban Services18 2. Enablers for Adopting New Models for Urban Services18 Challenges19 Enablers26 3. Accelerating Public-Private Partnerships for Urban Services26 The Need for Collaboration27 Risks in Public-Private Partnerships28 Addressing Risks (Government-Initiated Actions)29 Addressing Risks (Private-Sector-Initiated Actions)30 Attracting Private Players34 4.

2 Roadmap for Urban Transformation34 Approaches35 Call for Action: The 10-Step Action Plan35 Conclusion37 Annex38 Endnotes40 Acknowledgements WORLD ECONOMIC FORUM, 2015 All rights part of this publication may be reproduced ortransmitted in any form or by any means, includingphotocopying and recording, or by any informationstorage and retrieval 250815 Prepared in collaboration with PwC3 Inspiring Future Cities & Urban Services : shaping the Future of Urban development and Services InitiativeForewordThroughout history, no country has ever achieved economic prosperity without urbanizing.

3 On its surface, then, the urbanization trend dominating the 21st century should be good news - not only for the countries experiencing this growth, but the global economy. Upon closer analysis, however, we can see that current urbanization patterns are largely unsustainable -- socially, economically, and , now home to 55 per cent of the global population, now account for 70 per cent of global GDP. But they also account for an increasing share of greenhouse gas emissions and widening levels of inequality. The current urbanization model that largely favours low-density arrangements and an over-reliance on industrialized forms of transport is contributing to pollution and sprawl, and diminishing economies of agglomeration UN-Habitat s research shows that the absolute number of the world s slum population has actually been rising over the past 25 years, from 650 million in 1990 to nearly 1 billion today.

4 In Africa, which has the highest rate of urbanization globally, 62 per cent of people live in slum conditions without access to clean water, sanitation, and other basic human Services . However, as this report rightly observes, although the pace of urbanization brings numerous challenges, it also presents a generational opportunity to re-define the social, economic and environmental fabric of our Cities , as well as re-think the private sector s role in Urban investment and service delivery. This report s emphasis on innovation, good governance, planning, and the efficient and equitable provision of Urban Services all are core to the work of UN-Habitat.

5 But it is the discussion on the correlation between Urban growth and transformation (p. 9) that most closely aligns with our vision of the the UN s specialized agency in sustainable Urban development , UN-Habitat approaches urbanization not as a risk, but rather as a transformative source of prosperity and sustainable development of all human settlements. When thoughtfully arranged and managed, the process of urbanization itself can be a form of disruptive innovation that provides solutions to the most significant global challenges of our age from poverty and inequality, to climate change and security.

6 For many Cities , though, the pace of urbanization is overwhelming both national and local capacities to capitalize on the opportunities before them. The most common challenges include unplanned Urban expansion, ineffectual governance and legal frameworks, and a dearth of local-level revenue generation mechanisms. Cities with the greatest infrastructure needs often lack the capacity and knowledge to develop bankable projects. This is exacerbated by limited access to credit and an insufficient ability to take advantage of endogenous sources of finance, which, for example, could be used to invest in core infrastructure such water, drainage, and energy.

7 In response, UN-Habitat and the international community are initiating a set of strategies embodied in what we refer to as the New Urban Agenda (NUA), which is being prepared within the framework of the UN Conference on Housing and Sustainable Urban development (Habitat III), taking place in Quito, Ecuador in October this year. The NUA offers a frame of five strategies centred on: (1) national Urban policies; (2) Urban governance and legislation; (3) Urban planning and design; (4) financial designs of Urban operations, and; (5) planned city extensions and planned city in-fills.

8 All components act in concert to empower governments at all levels to adequately plan for, design, and manage sustainable Urban expansion and growth. Joan ClosExecutive Director and Under Secretary-General, UN-Habitat4 Inspiring Future Cities & Urban Services : shaping the Future of Urban development and Services InitiativeCore to the NUA is the promotion of mixed used space, which combines residential, commercial, industrial, office, or other land-use, with adequate space reserved for public use. Mixed configurations contribute to Urban productivity by making efficient use of a city s resources, which, in turn, drive economic growth (locally and nationally), ultimately contributing to improved living standards and prosperity.

9 Mixed-use space also fosters local-level revenue generation, by adding value to public property and facilitating the establishment and sustainability of small and medium-sized businesses. This is especially important for small and informal sector enterprises, which dominate developing country economies. The greatest opportunity to apply the NUA model is in countries where the form of a city is not yet locked in . Globally, some 60 per cent of the area expected to be Urban by 2030 remains to be built. The World Economic Forum estimates the corresponding infrastructure investment needed stands at USD trillion per year until 2050.

10 What is still not counted is the quantity of Urban value that can be generated by such partnerships (PPPs) are a requirement for feasible solutions to address forthcoming Urban demands. PPPs are an increasing source of finance for large-scale infrastructure projects across energy, transport and other sectors. But, clearly, the value generated should be far greater than the costs. Therefore, a system of value sharing is needed to address the investment project designs frequently overlook the basics of Urban financing.


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