Why Adopt a City Cluster Economic Development (CCED) Approach?
 The Asian Development Bank (ADB) is committed to reduce poverty in the Asia and Pacific region. As such, inclusive development and growth promoting activities are the fundamental foundation of the ADB's long term strategy. Taking into account Asia's urbanization pattern, it is projected that by 2030, more than 54% of the population will reside in urban areas. Asia's current urbanization pattern shows that towns and cities are growing toward surrounding cities, engulfing small patches of rural areas in peri-urban, forming agglomerated patterns. Empirical data suggests that the productivity of urban economy is at least 2 or 3 times higher than that of non-urban sector economies in the context of many Asian countries. Furthermore, there is a positive correlation between GDP and urbanization—the reason why urban centers are generally regarded as engines of economic growth.
This is the key phenomena underpinning City Cluster Economic Development (CCED) initiative by ADB; urban economy is considered as "engines of economic growth", hence it is argued to take advantage of the urbanization process" as a tool for triggering economic growth, rather than restricting the opportunities of economic growth. Advantages of clustering are multiple; i.e., the economies of scale bring out the benefits of efficiency and effectiveness in (i) sharing market information, knowledge, new technology, innovations in product design, common R&D facility or center, and (ii) reducing the costs of doing business transactions, for instances.
Overall, literatures have focused on evaluating and analyzing already existing clusters, and reporting whether they are performing well or not, if so, what are the determinants for success or being less successful. Researchers tend to take a stance that clusters are formed spontaneously. Hardly any study has investigated or explored how to induce well-performing clusters, and to operationalize it in concrete reality. There is almost no policy development or understanding on how to create competitive advantage through demand responses in Asian contexts. ADB's recent study on City Cluster Economic Development - Innovative Intervention in South Asia (RETA 6337-sub No.7, ADB) is such an attempt to induce well-performing industry clusters in its urban development operation. Read more about the CCED approach in ADB, see below Focus story on Promoting Local Economic Development in South Asia.
**We welcome your comments and suggestions on the CCED approach. Please send them at Urban@adb.org |
Headline
Innovations
Urban News in Asia
Central and West Asia
East Asia
The Pacific
South Asia
Southeast Asia
Regional Partnerships
and Programs
Urban News Around the World
Publications
Events |
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In this issue, we introduce a new section, Innovations, which will feature articles and stories from across the globe demonstrating innovative and good practice approaches in the urban sector. The Innovations section will also feature lessons learned from ADB and non-ADB projects. As our initial step, we are featuring 3 separate stories—Brazil's water-fueled buses, China’s urban water security program, and CCED approaches in South Asia. |
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Bird's eyeview of a city in Asia
Photo courtesy of Flickr common Promoting Local Economic Development in South Asia
Very few cities in Asia have used cluster approach as a development strategy to improve their respective cities and regions. Porter's analysis and field work on many major cities across the globe shed light to the rationale behind clustering approach as seen from the point of view of economic development professionals and policy makers. ADB's CCED initiative on the one hand, promises that if done right, the CCED approach can provide useful analytical information on how local economy works and what can be done to make it better. Full text >> |
Water-fueled bus in Sao Paulo
Photo courtesy of UNDP Running on Clean Fuel in Latin America
With the exception of China, the USA, Japan and the Netherlands water-fueled buses are a new form of urban transport. Last month, the first generation of hydrobus in Brazil hits the road in Sao Paulo. With a promise to exude clean vapor only, the hydrobus hopes to address the enormous requirement of almost half of Brazilian urbanites roaming around in the cities of the country. However will this be for long, taking into account the high cost of producing hydrogen. Full text >> |
Kunming City sitting along Lake Dianchi
Photo courtesy of M. Villareal Managing Water Scarcity in PRC
According to UN figures, China's population is projected to reach 1 billion by 2010. Along with a swelling of the population, China is facing an even greater threat, that of water shortage for the next coming years. To address this, the Government to slow down the increased demand for water and boost water supply options. ADB and the International Enterprise Singapore (IE Singapore) funded a study to examine on the ground initiatives to promote water security in the country. Full text >> |
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CENTRAL AND WEST ASIA
Tbilisi center overlooking Mtkvari river and Gorgasali road
Photo courtesy of A. Dauphin |
ADB to Strengthen Urban Transport in Georgia
"Georgia needs a new loan facility since several urgent urban transport projects could not be accommodated in MSDP 1," according to Arnaud Dauphin, urban development specialist of ADB's Central and West Asia Department. Georgia will receive an additional US$30 million loan from the ADB on top of the $40 million financial assistance received in December 2008. "The Municipal Sector Development Project (MSDP) 2 loan will improve peoples' health and living conditions, and promote economic growth in urban areas." The MSDP2 is the first to directly target urban transport in Central and West Asia. |
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EAST ASIA
China's Forbidden City
Photo courtesy of UNESCO World Heritage Site |
ADB and PRC Promotes Sustainable Urbanization
ADB approved a small-scale technical assistance to support piloting of the joint PRC-ADB platform for knowledge-sharing. The technical assistance will focus on good practices and emerging issues and challenges in the urban sector. As a first step, an international workshop will be organized from 2-6 November 2009 under the banner theme of sustainable urbanization. Key areas for discussion are city cluster economic development, innovative financing for urban infrastructure, integrated urban development interventions. Case studies from ADB DMCs will also be presented. View program . |
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The PACIFIC
ADB to Support Vanuatu's Urban Development Project in Port Vila
In partnership with AusAID, ADB through the Pacific Regional Infrastructure Facility (PRIF), will assist the Government of Vanuatu to upgrade living conditions in Port Vila and its peri-urban areas. The proposed US$1.45 million technical assistance (TA)* will develop long-term urban spatial/physical and zoning plan for Port Vila to provide affordable, sustainable, and effective sanitation and drainage services. The TA will help identify and recommend measures to improve government capabilities for efficient and effective urban planning, development and management. ADB's Country Partnership Strategy for Vanuatu (CPS) 2010-2014 places an "emphasis on long-term support for country systems and capacities in core areas of ADB interventions and comparative advantages in the country (such as infrastructure)..." In addition, "urban development to improve access to sanitation and drainage facilities and improve urban infrastructure with a particular focus on Port Vila" is identified among the three core sectors under the CPS.
SOUTH ASIA
ADB Extends $200 Million in India for Urban Development in Northeast Cities
Home to India's many ethnic groups, the northeastern region (NER) of India continues to lag behind other regions in terms of economic development. This poor performance owes to the remoteness of the region and is further exacerbated by political insurgency, high unemployment rates, lack of livelihoods and poor infrastructure. In June 2009 ADB approved a US$200 million loan to the capital cities of NER to improve their urban environment and promote reforms for sustainable, efficient, and responsive urban service delivery. The loan was earmarked for projects involving improvements in water supply, sanitation and sewerage, and solid waste management including support in urban governance, finance and service delivery reforms and a capacity building program to support the implementation of NERCCDIP and the urban reform agenda.
ADB to Help Improve Water Management in Urban Centers
According to the Asian Water Development Outlook(AWDO) 2007, it is likely that if there will be a water crisis in future, it will not be because of actual physical scarcity of water, as many predict at present, but because of continuing neglect of proper water management practices. Continuation of the present trend will make available water sources increasingly more contaminated, and will make provision of clean water more and more expensive, as well as more complex and difficult to manage. Given this paramount challenge, the $850,000 grant will focus on the important underpinnings of urban water security in selected South Asian urban centers by helping them evaluate current situation, generate recommendations, action plans, and implement action plans for better governance to achieve water security. ADB's KyeongAe Choe said, "to improve urban water management, water security in South Asian urban centers needs to be properly assessed and reliable information shared.
SOUTHEAST ASIA
The Greater Mekong Subregion
Photo courtesy of J. Hakim |
New Publication on Dynamics of Rural-Urban Linkages - Trends and Prospects for the GMS
This forthcoming publication discusses how rural-urban linkages are coming into the forefront in once remote areas of Cambodia, Lao PDR and Vietnam, and how are they becoming increasingly connected to their urban centers. The ADB's Greater Mekong Subregion (GMS) program, which began in 1992 opened up doors to improve transportation infrastructure, cross-border trade and mobility of people, goods and services and brought about innovation in agriculture and tourism. Featuring 6 case studies, along with a detailed account of rural-urban linkages, and its implications on the wider developmental issues, the book wraps up with recommendations that hopes to address the growing challenges facing the region. |
REGIONAL PARTNERSHIPS AND PROGRAMS
Cochin and Pakse gets funding from CDIA
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Cochin, India and Pakse, Lao PDR: Two newest cities approved for CDIA support
Photo courtesy of CDIA Asia |
Approved recently for CDIA funding are (i) Cochin's proposal of an urban transport investment programme which aims to promote clean energy, mitigate climate change and meet the needs of its people and (ii) Pakse's pre-feasibility studies which hopes to address the current water logging and drainage issues as well as SWM system (including recycling and composting processes).
To date, CDIA assists 15 cities in 10 Asian countries in the area of urban development. Preparing pre-feasibility studies is the main activity under CDIA-funded projects. ADB contributes to CDIA through co-financing with other bilateral aid agencies, such as Sweden International Development Agency and GTZ. See also CDIA Asia*.
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Photo courtesy of ADB Private Sector and Development Group |
ADB, IDB Set up ISLAMIC Infrastructure Fund
ADB together with the Islamic Development Bank will make Shari'ah compliant equity investments targeted at US$500 million in Afghanistan, Azerbaijan, Bangladesh, Indonesia, Kazakhstan, Kyrgyz Republic, Malaysia, Maldives, Pakistan, Tajikistan, Turkmenistan and Uzbekistan. The investment marks ADB's first Shari'ah compliant fund-instruments that are structured to comply with Islamic law which bars investments in interest bearing securities and forbidden activities such as gambling. |
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Photo courtesy of ADB Transport CoP New Urban Development Series on Sustainable Urban Transport Cities are at the center of national development and are touted as engines of growth. However, continuing problems of rapid urbanization along with alarming increase in motorized private transport are creating serious risks in the role of cities as source of economic development. The book, New Paradigm for Sustainable Urban Transport calls for a people-focused approach, one that responds to the demand for travel and promotes accessibility over mobility. At the heart of the approach is the promotion of non-motorized and public transport systems that are inclusive. This new publication is forthcoming in September. See also ADB Transport. |
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Urban News Around the World
 Source: UN-Habitat Three Major International Events Lined Up in 2010
Three major international events are lined up in 2010 to address issues and challenges on sustainable urban development facing the world. UN-Habitat's World Urban Forum V* in March will again continue the debate on moving forward the global urban agenda; the Government of China's Shanghai World Expo 2010* running from May to October will present case studies and best practices on cutting edge innovations on future urban environments; UCLG's 2010 World Congress* in November will bring together international development and policy experts, government officials, and urban practitioners for cooperation and collaboration in Mexico City. |
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 Source: IEG, World Bank IEG Ratings for Bank-Financed Municipal Development Projects now available* World Bank, 14 August 2009
IEG reviewed 190 World Bank municipal development projects to assess whether or not the Bank's projects improved the municipalities it covered. Of the evaluations made, 74% were rated satisfactory, indicating a high performance by the Bank. For more information on each sub-projects reviews, see IEG Map*. |
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 Source: European Urban Knowledge Network Knowledge Needs of European Cities on Sustainable Urban Development (SUD) Urbanicity, 02 August 2009 Funded by the European Union's 6th Framework Program, the Project aims to create a knowledge dissemination platform designed to support European cities in addressing sustainable urban development (SUD). The European Union's Urban Matrix Project* underscored the importance of efficient and effective knowledge sharing within city authorities as key to developing an integrated approach to SUD. However, as the project results shows there still exists knowledge 'dissemination deficits' among European cities. |
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Revolutionary E-government Strategies Across Asia-Pacific Alcatel-Lucent, July 2009
In order to provide quicker, faster access to government services, governments across Asia Pacific are embracing the concept of e-Government documentation strategy that employs the latest technology to streamline public-sector processes. As they implement these initiatives, Asian governments are somehow transforming the very structures of their organizations and fundamentally altering the way they interact with those they serve. View paper*.
2009 Livability Ranking: Go North....or go South* Economist, 08 June 2009
Canadian and Australian cities account for six of the top ten spots in the latest livability ranking conducted by the Economist Intelligence Unit. According to the survey, Vancouver is still the world's best place to live, followed by Vienna and Melbourne. Worst-performing locations are in Africa and Asia, where civil instability and poor infrastructure present significant challenges. The unfolding political and economic crisis in Zimbabwe makes Harare the least desirable city in the survey. Locations within Afghanistan and Iraq are not included. |
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Investing in Sustainable Infrastructure: Improving Lives in Asia and the Pacific
This new publication underscores the Bank's current efforts to promote sustainable infrastructure, and showcasing ADB's foray in the provision of sustainable infrastructure such as energy, transport, water, urban infrastructure, information and communication technology. |
Sustainability Report 2009
This update of ADB's first Sustainability Report provides information on ADB's policies, programs and practices as they relate to promoting social and environmental sustainability in the Asia and Pacific region. As with the first report, this publication provides fresh information of ADB's work to improve environmental management, including climate change, social development, and governance — all of which are important to the sustainability of the region's development. |
The Economics of Climate Change in Southeast Asia: A Regional Review
This report provides an economic analysis of Southeast Asia's vulnerability in the face of climate change. Despite alarming risks in the region, Southeast Asia has potential to contribute to GHG emission reduction. The basic policy message is that efforts must be made to apply all feasible and economically viable adaptation and mitigation measures as key elements of a sustainable development strategy for Southeast Asia. |
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June – August 2009 |
VP Lohani speaks at the FT Urban Regeneration Summit in July 2009
Photo courtesy of Financial Times ADB Encourages FT Urban Regeneration Summit Participants to Increase Financing and Investing in Urban Renewal Despite a massive slowdown on public spending particularly on infrastructure and social services, private institutions should be encouraged to take part in urban renewal through innovative public-private partnerships, according to ADB's Vice President Bindu Lohani. VP Lohani stressed the importance of using (i) an integrated approach to urban development and (ii) a comprehensive infrastructure development agenda from the five dimensions of economic, demographic, environmental/social, governance and finance. Lastly, VP Lohani shared some best practice models for financing successful urban regeneration. View agenda*. |
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 Resource persons to the CCED National Forum in Sri Lanka
Photo courtesy of ADB RETA6337, Subproject TA on CCED South Asia: CCED Forums in Bangladesh, India and Sri Lanka
The City Cluster Economic Development (CCED) National Forums held in Dhaka, Delhi and Colombo on July disseminated the results of the CCED study to the high level government officials in the three South Asian countries. Over 200 participants representing government agencies, business associations, and universities attended the forums. The forums concluded with strong commitments from key government officials to adopt the CCED approach. At least 6 industry-clusters stepped forward for the next phase of the CCED project. See also NIUA*
View presentations:
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ADB's Climate and Clean Energy Week Advocates for Sustainable Cities
ADB organized a 3-day forum on Asia Clean Energy last 17-19 July 2009 which served as a platform for exchanging experiences and forging new partnerships to advance clean energy solutions in the region. The event promoted best practices in policy and finance and sought to catalyze actions that respond to the growing climate and energy needs of cities in the region. ADB organized the event with the United States Agency for International Development (USAID), co-sponsored by the governments of Australia, Japan, Norway, Spain, and Sweden.
ADB Participates in the 58th UITP World Congress in Vienna, Austria*
Mr. Hun Kim, ADB's representative to the UITP congress made a presentation on the Bank's strategic shift to address the challenges in Asia's urban transport requirements. The presentation focused on ADB's new paradigm for urban transport which stressed that evidence-based policy and institutional reforms are critical to ensure sustainability in transport projects and investments. He also discussed ADB's project evaluation process and how to better take in account the complete benefits of public transportation scheme. View presentation .
September - November 2009
| 5-9 September |
IFHP World Congress 2009* (Berlin, Germany) |
| 7-9 September |
2nd Asia-Pacific Housing Forum* (Makati, Philippines) |
| 7-11 September |
CityNet Congress* (Yokohama, Japan) |
| 15-17 September |
Asia Pacific Cities Summit* (Incheon, Korea) |
| 4 October |
1st Euro-India City Summit* (Valladolid, Spain) |
| 12-16 October |
12th TCI Annual Global Conference* (Jyväskylä, Finland) |
| 26-28 October |
2nd World Roads Conference Sustainable Urban Transport* (Suntec, Singapore) |
| 28-30 October |
Trade, Urbanization and the Environment* (Beijing, China) |
| 2-6 November |
ADB-PRC Knowledge-sharing Platform Regional Workshop on Sustainable Urbanization (Shanghai, China) |
| 5-7 November |
2nd Knowledge Cities Summit* (Shenzhen, China) |
| 24-26 November |
APSA 2009 Congress Future of Indian Cities* (Ahmedabad, India) |
| 26-27 November |
International Conference on Building Secure Cities for Economic Growth and Prosperity* (Mumbai, India) |
December 2009 and onwards
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