Catalog

	Table of Contents
p. 13 of 26 BACK | NEXT Executive Summary I. Introduction II. The Urban Sector III. The Bank's Involvement in the Urban Sector IV. Objectives and Policy Priorities A. Urban Development Objectives B. Policies for Promoting Urban Governance C. Policies for Mobilizing Financial Resources D. Policies for Improving Urban Management E. Policies for Reducing Urban Poverty F. Policies for Urban Subsectors V. The Bank's Urban Sector Strategy VI. Implications for Bank Operations VII. Conclusion

Urban Sector Strategy : IV. Objectives and Policy Priorities

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A. Urban Development Objectives

78. The starting point for formulating urban development objectives is the Bank’s Medium Term Strategic Framework, 1995-1998. The five strategic objectives against which Bank project activities are measured are (i) promoting economic growth, (ii) reducing poverty, (iii) supporting human development, (iv) improving the status of women, and (v) protecting the environment. While the objectives are currently under review, they are not likely to change dramatically. At least 50 percent of projects and 40 percent of lending should be for projects with social or environmental benefits. Bank operations are targeted to emphasize policy support; capacity building; strengthening of productive capacity, infrastructure, and services; and improved regional cooperation.

79. Most urban development, water supply, and housing projects are classified by the Bank as human development projects. In addition, depending on their specific goals, urban projects frequently address one or more of the other four overall strategic objectives. The current priority for the Bank to respond to the economic crisis in several DMCs is highlighting the key role of urban projects in reducing urban poverty. The overall strategic objectives can be realized for the urban sector through the following operational objectives:

1. maximizing the economic efficiency of urban areas (economic growth) through
1. increased contribution to GDP;
2. easier market entry for small businesses;
3. creation of employment;
4. attraction of inward investment; and
5. availability of suitable land, infrastructure, energy, and services to meet business demand;
2. reducing urban poverty through
1. reduced unemployment; and
2. increased number of households with access to land, infrastructure, and services;
3. improving quality of life (human development and the status of women) through
1. reductions in environmental pollution levels;
2. improved support mechanisms for the disadvantaged;
3. enhanced role for gender development;
4. reduced crime levels;
5. reduction in serious illness;
6. availability of suitable land, infrastructure, and services to meet residents’ demand; and
7. increased participation in decision making;
4. achieving sustainable urban development (protecting the environment) through
1. reduced use of nonreplaceable natural resources;
2. increased use of energy pricing, taxation, and energy-saving forms of
3. urban land use and construction;
4. increased social equity in the distribution of social benefits;
5. reductions in environmental pollution levels; and
6. use of improved urban management systems, including good governance, decentralization, private sector involvement, funding mechanisms, and community participation.

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