International workshop Venice - March 11-12 1999 Concepts and Paradigms of Urban Management in the Context of Developing Countries
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Patrick Wakley (DPU, London)

"The Urbanising Multi-laterals"

There is a hopeful sign of renewed interest in support to urban development by the major multi-lateral aid agencies: the World Bank is discussing a newly proposed Urban and Local Government Strategy to be presented to the Executive Directors of the Bank in the Spring of 1999; the United Nations Centre for Human Settlements (UNCHS) is discussing a draft new Strategic Vision for the agency, to be presented to the UN Commission on Human Settlements in April 1999; and, as reported elsewhere in this issue, the European Commission is formulating its first Urban Development Policy for Co-operation.

The UNCHS Strategic Vision sets out to give Habitat a clear identity as the United Nations Agency for Cities, with an independent organisational structure within the UN system of agencies (i.e. not linked to UNEP or the UNCSD or absorbed into UNDP as various recent rumours have suggested). It will narrow its focus to become an international advocacy agency committed to the reduction of urban poverty globally through the promotion of equity and social justice, giving emphasis to the role and opportunities of women and support to gender sensitive development policies and strategies in partnership with local authorities.

The first draft of the Strategic Vision sees the new Habitat operating through two Global Campaigns to promote:

1. security of tenure to urban land, with emphasis on establishing appropriate legal frameworks, working in partnership with WACLAC (World Association of Cities and Local Authorities Co-ordination), professional associations and ING0s; and
2. participatory and transparent urban governance and management based on the decentralisation of authority and public/private sector partnerships.

In support of the Global Campaigns, it is proposed that Habitat will continue to give emphasis to urban environmental issues, urban economic management, employment generation, social mobility, and to micro-credit and accessible and affordable housing finance mechanisms.

The World Bank Draft Strategy (posted on its website) opens with the intention to work much more directly with municipal authorities and to expand it urban agenda to include assistance to accessing capital markets, addressing the multiple dimensions of urban poverty and the urban environment, disaster management and the provision of economic development advice. It proposes to strengthen its existing lending products by, for example, adopting new financial instruments to: support innovation in municipal management; help establish and strengthen the development of commercially oriented municipal finance markets and municipal development funds; promote real estate market reform, disaster mitigation management, and the conservation of cultural heritage in urban development; and to give emphasis to lending for slum upgrading. The Bank's proposed renewed non-lending programme will conpentrate on country specific urban research and the integration of urban issues in its Country Assistance Strategies.

The Bank's proposals for new strategic initiatives include:

1. facilitating city development strategies based on full stakeholder participation in the identification of priorities;
2. providing an Urban Advisory Service, particularly for finance issues;
3. scaled-up urban poverty programmes based on slum upgrading in specific cities and countries;
4. support to capacity building efforts within and between cities;
5. the establishment of an Urban Partnership Trust Fund to mobilise cross-sectoral and interdisciplinary work on urban issues. This initiative has already been launched with the participation of the FC, UNCHS and the Government of Japan.

The European Commission Draft Policy for Urban Development Co-operation has a tripartite Goal to promote and support

1. urban economic growth,
2. social equity and poverty reduction, and
3. sustainable environmental development.

Strategically the policy will focus on supporting transparent and accountable urban governance firmly based on the principles of participatory democracy and on effective urban management through devolved partnerships between the public, private and community sectors. The policy gives emphasis to the recognition of cities and towns as the 'engines' of national economic development, social change and cultural innovation. It also recognises that to be effective and sustainable, urban development co-operation programmes and projects must be formulated, monitored and evaluated by the principal stakeholders in the city itself, rather than from outside. At the same time, however, importance must be given to strengthening national urban development policies and strategies and to institutional and organisational capacity building at all levels.
Thus, future EU supported infrastructure projects and social programmes in urban areas, in addition to meeting their sectoral objectives, will also have to embrace the policy goals and strategic principles outlined above, thereby converting them from sectoral projects into 'urban projects'.

The DPU, along with many others who have been lobbying for greater and more coherent support to urban development by the multi-lateral aid agencies, will be closely watching the development and implementation of these new policies.

DPUNEWS Issue 37 February 1999