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Executive Summary
I. Introduction
II. The Urban Sector
III. The Bank's Involvement in the Urban Sector
IV. Objectives and Policy Priorities
V. The Bank's Urban Sector Strategy
VI. Implications for Bank Operations
A. Lending and Technical Assistance
B. Staff Resources
>> C. Research Priorities
VII. Conclusion
Urban Sector Strategy : VI. Implications for Bank Operations

C. Research Priorities

130. There is inadequate understanding of the increasingly complex operations of social, economic, environmental, and institutional systems making up urban areas in the Region. Moreover, earlier models of urbanization in the Organization for Economic Cooperation and Development member countries are not necessarily relevant to DMC experience. For example, megacities present new challenges in urban administrative responsibilities, employment creation, environmental management, and infrastructure provision. Not enough is known about the internal workings of local governments in the Region, for example their use of community involvement, incentives to staff, treatment of informal settlements, and financial management. Research priorities include the following:

  1. urbanization: further research on the complex forces of urbanization, where urban growth is occurring, and the impact and effectiveness of strategies to guide urban growth;

  2. poverty reduction: the impact of direct and indirect policies for reducing urban poverty and increased social equity;

  3. decentralization: evaluation of the process and impact of decentralization policies on urban development, quality of life, and the level of public participation;

  4. urban governance: mechanisms to ensure greater transparency, accountability, predictability, and civic participation in local government decision making;

  5. community participation: best practice mechanisms for increased community participation and the relationship to improved sustainability;

  6. private sector involvement: issues and trends related to increasing the role of the private sector in the provision of urban services;

  7. informal settlements and the informal economy: approaches and policies for dealing with informal urban settlements; the dimensions and role of the informal economy on urban economic productivity;

  8. urban environmental management: policies and techniques for improved environmental management, including controls, incentives, market-based instruments, and the relationship to sustainability goals;

  9. local government capacity building: approaches to and overall impact of capacity building initiatives; the relationship between interventions, resulting strengthened capacity, and improved urban management processes; and (x) local government finance: analysis of local government financing systems and use of market-based approaches.

131. Priorities and resources for urban research should be developed in collaboration with relevant programs in other divisions of the Bank such as the Economics and Development Resource Center, and the Strategic Planning Office, and with the Asian Development Bank Institute. In addition, the Bank will need to expand the exchange of information on urban issues with the key agencies in the Region such as the Economic and Social Commission for Asia and the Pacific, Asian Institute of Technology, United Nations Urban Management Program for Asia and the Pacific, Citynet, and other regional institutions. Other potential partners include the various bilateral agencies with ongoing urban research in the Region including the USAID, German Agency for Technical Cooperation, and the Department for International Development (United Kingdom). An expanding network of NGOs is carrying out research in urban topic areas, particularly in health, income generation, and housing.

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B. Staff Resources
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VII. Conclusion

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