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Managing Asian Cities for Sustainability

Speech by
Ursula Schaefer-Preuss
Vice President, Knowledge Management and Sustainable Development
Asian Development Bank

At the World Cities Summit: Launch of the book, Managing Asian Cities

25 June 2008
Singapore

I. Introduction

Distinguished guests, ladies and gentlemen: Good morning. I am very glad to be here today, to meet with all of you for the launch of the publication Managing Asian Cities. I want to thank the Singaporean authorities for organizing this event. It is very appropriate that this is held here, as Singapore is known world-wide as a model of excellent urban development. Furthermore it is very appropriate to link the World Cities Summit with the Singapore International Water Week – since water is a vital issue for urban development.

As President Kuroda of the Asian Development Bank said in his keynote speech this morning, the challenge of urbanization in Asia is unprecedented with 1.1 billion more people living in Asia’s cities within the next 20 years. It can be observed that big cities are the economic powerhouses of nations. They are becoming increasingly confident, competent and self reliant in many aspects of governance. However many problems still have to be tackled.

Providing jobs and services to this rapidly expanding urban population and to improve the livelihood and quality of life for those already in the cities, is a management task of a magnitude never before attempted. And, this has to be achieved without over-stretching the earth’s critical ecosystems, and responding to the impacts of climate change. Urban development is a major development issue which encompasses the major challenges of poverty reduction, environmental protection, and community development. Accordingly, for ADB, urban development is part of our recently approved long-term strategic framework, or Strategy-2020. Today, as President Kuroda has provided a comprehensive overview of ADB’s operations, I will focus specifically on our work on the urban sector, especially through our latest publication – Managing Asian Cities, which is being launched today.

II. Main Findings from Managing Asian Cities

Through the Managing Asian Cities publication, we are able to analyze the lessons learned and good practice in the Asia-Pacific region, and across the world. In depth studies were undertaken in the People’s Republic of China, India, the Philippines, Pakistan and Thailand. The results of the study focus on the constraints for urban institutions attempting to manage this unprecedented growth. Existing institutional structures were adequate for managing stable or slowly growing cities. But better systems are required to improve living conditions in a rapid growth situation with which many cities cannot cope anymore.

The technology, financing, and skills necessary for tackling the challenges of urbanization are available in principle. But to build cities that can cope, self-reliant cities, governments at all levels must adopt an enabling approach to:

• First, protect the environment by adopting the 3 R’s: reduce, recycle and reuse; and responding to climate change through reducing their Green House Gas emissions and adapting to the effects of climate change;
• Second, maintain economic growth by preparing and implementing a city region economic development plan that involves all government, business and community stakeholders; building on strengths and opportunities; and planning to overcome technical, competitive, environmental and disaster risks; and
• Lastly, ensure sustainable communities by fostering inclusive public service delivery – by not neglecting the poor and disadvantaged – as well as provide the organizational structures for community driven development.

These are important tasks, and this publication recommends that one of the key components is for the public sector to form active partnerships with the private financing institutions. We believe this partnership will be facilitated by more effective coordination through strategic planning and identification of priority investments, better financial structuring, and capacity development of relevant institutions. In addition, for the governments, this requires improved policy and regulatory framework at the central level; better inter-government coordination and increasing availability of local government financing; combined with civil service reforms at the local levels.

To complement governments and the private sector in this endeavor, the international donor community must also enhance their support. We can do so at three different levels. First, we need to support the local leaders to address the global challenges – ranging from climate change to recent rise in food and fuel prices. Second, we can support the governments in formulating urban development strategies – based on international best practice and lessons learned within the Asia-Pacific region. Finally, we need to continue to support financing urban development projects. For ADB, our financing of various types of urban projects and related activities is about $1 billion per year.

Based on this approach, ADB hopes that the Managing Asian Cities book will, first, represent a useful management tool, canvassing key issues and pointing managers to appropriate responses to problems; and, second, provide the initial step in a new phase of ADB’s continuing support to Asian cities under its Strategy 2020, focusing with its development partners, on overcoming their main constraints to improved management and service delivery. For ADB, this also means that we need to continue to empower the relevant decision-makers, and through an event like this one, provide a platform for them to forge partnerships.

In addition, to further support this endeavor, ADB has, together with the German, Swedish and, very recently, Spanish governments, formed the Cities Development Initiative for Asia (CDIA). One of the objectives of the Initiative is to assist cities to overcome the coordination and financial structuring constraints they face as they seek to build the infrastructure and capacity needed in these areas.

III. Conclusion

Let me close by congratulating the authors of the publication. I also want to reiterate our gratitude to the conference organizers. ADB is committed to acting as a catalyst, helping national governments and cities meet the environmental, social and economic challenges of Asia’s urban regions. We will work with our partners to find appropriate solutions to their urban investment needs and to link them to the expertise and finance they need to address the many challenges ahead of them. Now, I would like to request my colleagues to provide an overview of CDIA. Thank you.