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    STATE OF THE

    Harmonious Cities

    2008/2009WORLDS CITIES

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    State of the Worlds Cities 2008/2009

    HARMONIOUS CITIES

    London Sterling, VA

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    First published by Earthscan in the UK and USA in 2008 for and on behalf of the United Nations Human Settlements Programme(UN-HABITAT).

    Copyright United Nations Human Settlements Programme, 2008.

    All rights reserved

    United Nations Human Settlements Programme (UN-HABITAT)P.O. Box 30030, Nairobi, KenyaTel: +254 20 7621 234Fax: +254 20 7624 266/7

    Website: www.unhabitat.org

    DISCLAIMER

    The designations employed and the presentation of the material in this report do not imply the expression of any opinion whatsoeveron the part of the Secretariet of the United Nations concerning the legal status of any country, territory, city or area, or of its authorities,or concerning delimitation of its frontiers or boundaries, or regarding its economic system or degree of development. The analysis,conclusions and recommendations of this reports do not necessarily reflect the views of the United Nations Human SettlementsProgramme or its Governing Council.

    HS/1031/08 E (paperback)HS/1032/08 E (hardback)

    ISBN: 978-1-84407-696-3 (Earthscan paperback) ISBN: 978-92-1-132010-7 (UN-HABITAT paperback)ISBN: 978-1-84407-695-6 (Earthscan hardback) ISBN: 978-92-1-132011-4 (UN-HABITAT hardback)

    Design and layout by Michael Jones Software, Nairobi, Kenya.Printed and bound in Malta by Gutenberg Press Ltd.

    For a full list of Earthscan publications contact:

    EarthscanDunstan House14a St Cross StreetLondon EC1N 8XA, UKTel: +44 (0)20 7841 1930Direct: +44 (0)20 7841 1930Fax: +44 (0)20 7242 1474E-mail: [email protected]

    Website: www.earthscan.co.uk

    22883 Quicksilver Drive, Sterling, VA20166-2012, USA

    Earthscan publishes in association with the International Institute for Environment and Development.

    A catalogue record of this book is available from the British Library.

    Library of Congress Cataloging-in-Publications Data has been applied for.

    The paper used for this book is FSC-certified. FSC (the Forest Stewardship Council) is aninternational network to promote responsible management of the worlds forests.

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    With more than half of the worlds populationnow living in urban areas, this is the urbancentury. Harmonious urbanization, thetheme of this fourth edition of the State of

    the Worlds Cities, has never been more important.

    Cities embody some of societys most pressing challenges, frompollution and disease to unemployment and lack of adequateshelter. But cities are also venues where rapid, dramaticchange is not just possible but expected. Thus they presentreal opportunities for increasing energy efficiency, reducingdisparities in development and improving living conditions

    in general. National and local governments can promoteharmonious urbanization by supporting pro-poor, inclusiveand equitable urban development and by strengthening urbangovernance structures and processes. History demonstratesthat integrated urban policy can be a solid path towardsdevelopment.

    Contrary to popular opinion, inequality and the unsustainableuse of energy are not inevitable aspects of urban development,nor are they necessary for urbanization and economic growthto occur. Rather, as this report illustrates, cities can advance

    Foreword

    the prosperity of their inhabitants while achieving equitablesocial outcomes and fostering the sustainable use of resources.Today, many small, well-managed cities in both the developingand developed worlds are enjoying rapid growth, giving us achance to stave off entrenched poverty and cultivate healthyenvironments in which people can thrive.

    The data and analysis contained in this report are intendedto improve our understanding of how cities function and

    what we, as a global community, can do to increase theirliveability and unity. In that spirit, I commend this report topolicymakers, mayors, citizens groups and all those concerned

    with the welfare of our urbanizing world.

    Ban Ki-moonSecretary-GeneralUnited Nations

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    Introduction

    Half of humanity now lives in cities, and withintwo decades, nearly 60 per cent of the worldspeople will be urban dwellers. Urban growth ismost rapid in the developing world, where cities

    gain an average of 5 million residents every month. As citiesgrow in size and population, harmony among the spatial,social and environmental aspects of a city and between theirinhabitants becomes of paramount importance. This harmonyhinges on two key pillars: equity and sustainability.

    The world has witnessed for the past year some of the socialchallenges associated with global warming and climate change.

    The rise in prices of fuel and food has provoked angry reactionsworldwide and threatens to eradicate, in many instances,decades of social and economic advancement. This relativelynew threat to harmonious urban development is nonethelessdirectly linked to poorly planned and managed urbanization.Urban sprawl, high dependence on motorized transport andurban lifestyles that generate excessive waste and consumelarge amounts of energy are some of the major contributorsto the global increase in greenhouse gas emissions.

    However, data analyzed by UN-HABITAT shows that notall cities contribute to global warming and climate changein the same way. While wealthier cities tend to producemore emissions than less wealthy cities, as higher incomes

    often translate into higher energy consumption, significantdifferences in emissions are also found between cities ofsimilar wealth. Some cities in developed countries have, forexample, been reducing their per capita energy consumptionand emissions through better transport planning andenergy conservation. At the same time, other cities in newlyindustrializing countries are increasing per capita emissionsthrough the combined impact of motorization and increasedenergy consumption. The findings presented in this reportclearly show that policies that promote energy-efficient publictransport, that reduce urban sprawl and that encourage theuse of environmentally-friendly sources of energy, can reduce

    a citys ecological footprint and carbon emissions significantly.In fact, cities provide a real opportunity to mitigate andreverse the impact of global climate change. Properly plannedcities provide both the economies of scale and the populationdensities that have the potential to reduce per capita demandfor resources such as energy and land.

    The world is also confronting the challenge of increasingdisparities between the rich and the poor. This edition ofthe State of the Worlds Cities shows that spatial and socialdisparities within cities and between cities and regions withinthe same country are growing as some areas benefit morethan others from public services, infrastructure and otherinvestments. Evidence presented in this report also shows

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    that when cities already have high levels of inequality, spatialand social disparities are likely to become more, and not less,pronounced with economic growth. High levels of urbaninequality present a double jeopardy. They have a dampeningeffect on economic growth and contribute to a less favourableenvironment for investment.

    But just as importantly, urban inequality has a direct impacton all aspects of human development, including health,nutrition, gender equality and education. In cities wherespatial and social divisions are stark or extreme, lack ofsocial mobility tends to reduce peoples participation in the

    formal sector of the economy and their integration in society.This exacerbates insecurity and social unrest which, in turn,diverts public and private resources from social services andproductive investments to expenditures for safety and security.Pro-poor social programmes, equitable distribution of publicresources and balanced spatial and territorial development,particularly through investments in urban and inter-urbaninfrastructure and services, are among the most effectivemeans for mitigating or reversing the negative consequencesof urban inequality.

    Many cities and countries are addressing these challenges andopportunities by adopting innovative approaches to urbanplanning and management that are inclusive, pro-poor and

    responsive to threats posed by environmental degradation andglobal warming. From China to Colombia, and everywhere inbetween, national and local governments are making criticalchoices that promote equity and sustainability in cities.These governments recognize that cities are not just part ofthe problem; they are, and must be, part of the solution.Many cities are also coming up with innovative institutionalreforms to promote prosperity while minimizing inequityand unsustainable use of energy. Enlightened and committedpolitical leadership combined with effective urban planning,governance and management that promote equity andsustainability are the critical components to the building of

    harmonious cities.

    Anna K. TibaijukaUnder-Secretary-General and Executive DirectorUnited Nations Human Settlements Programme(UN-HABITAT)

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    Acknowledgements

    Core TeamDirector:Oyebanji OyeyinkaCoordinator:Nefise BazogluTask Manager:Eduardo Lpez MorenoStatistical Adviser:Gora MboupEditor:Rasna Warah

    Principal Author:Eduardo Lpez MorenoAdditional Authors:Nefise Bazoglu, Gora Mboup and Rasna Warah

    Support TeamResearch:Gianluca Crispi, Yuzuru Tachi, Anne Klen, Maharufa Hossain, Asa JonssonGraphs:Yuzuru TachiGIS:Maharufa Hossain and Jane ArimahStatistics:Josephine Gichuhi, George Madara, Julius Majale, Philip Mukungu, Souleymane

    Ndoye, Omondi Odhiambo, Raymond OtienoEditorial Support:Darcy VarneyAdministrative Assistance:Anne Idukitta and Elizabeth Kahwae

    UN-HABITAT Advisory and Technical SupportSharif Ahmed, Alioune Badiane, Daniel Biau, Mohamed Halfani, Marco Keiner, AnanthaKrishnan, Ansa Masaud, Victor Mgendi, Naison Mutizwa-Mangiza, Jane Nyakairu, LigiaRamirez, Roman Rollnick, Wandia Seaforth, Sharad Shankardass, Mohamed El-Sioufi, PaulTaylor, Nicholas You

    International Advisory BoardA. T. M. Nurul Amin, Robert Buckley, Naser Faruqi, Paolo Gamba, Dan Hoornweg, PaolaJiron, Marianne Kjellen, Patricia McCarney, Molly OMeara Sheehan, Francisco PerezArellano, David Sattherwaite, Dina K. Shehayeb, Belinda Yuen

    Financial SupportGovernment of Norway, Kingdom of Bahrain, Government of Italy, InternationalDevelopment Research Center (Canada), and World Bank, among others

    Cover design and page layout:Michael Jones SoftwareCover image:Mudassar Ahmed Dar/ Shutterstock & Li Wa/Shutterstock

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    ContributorsSignificant contributions in the analysis of data and drafting of background papers:

    Adriana Allen for Addressing Rural-Urban Disparities for Harmonious DevelopmentFederico Butera for Cities and Climate Change and Energy Consumption in CitiesPatricia McCarney and Richard Stren for Metropolitan Governance: Governing in a City of CitiesSimone Cecchini, Jorge Rodrguez, Maren Jimnez, Daniela Gonzlez, Ernesto Espindola and Hernan Pizarro of the UN

    Economic Commission for Latin America and the Caribbean (ECLAC) for collating urban/city Gini coefficients for LatinAmerica and the Caribbean, in consultation with Miguel Ojeda and Lucy WinchesterJorge Carrillo and Sarah Lowder of UN Economic and Social Commission for Asia and the Pacific (ESCAP) for collatingurban/city Gini coefficients for Asia and the Pacific

    Additional contributions in the preparation of thematic papers and in the analysis and review of data:Carmen Bellet and Josep Ma Llop Torne for The Role of Intermediate Cities

    Jordi Borja, whose ideas were adapted from La Ciudad Conquistada (Barcelona, 2007)Suochen Dong, Marlene Fernandes, Yasser Rajjal, David Schmidt, Maram Tawil, Vinod Tewari for Metropolitan GovernanceSurveys in China, Brazil, Amman, Cape Town and India

    Ali Farzin for Urban Inequalities in IranPietro Garau for Preliminary analysis of surveys on slum upgrading policesPadmashree Gehl Sampath for Institutional Analysis and Innovation and research on economic policies and migration

    Prabha Khosla for Gender Sensitive Urban Governance and analysis of gender disaggregated slum dataEnzo Mingione and Serena Vicari for Inequalities in European Cities

    Afsaneh Moharami for Drivers of Decline/Growth in Iranian CitiesMark Montgomery for analysis and review of global urban data

    Ariane Mueller for Best Practices and Climate Change in CitiesMaria da Piedade for Gini coefficient data in Brazilian citiesPatricia Romero-Lankao for Climate Change and Cities Latin AmericaGerman Solinis Without harmony, there will be no cities in the urbanized worldRaquel Szalachman for Human Settlements and the Environment in Latin America and the CaribbeanVinod Tewari for Urbanization Trends in Asia, Drivers of City Growth and Gini coefficients for urban IndiaPablo Vaggione for Planning for Urban HarmonyDarcy Varney Inclusive Urban Planning for Harmonious DevelopmentLuciano Vettoretto for Regional Planning towards Spatial Strategies: Learning from the European Experience

    Yu Zhu for Urbanization Trends in China and Drivers of City Growth in China

    Input to production of maps and graphs:Deborah Balk for text and maps on Cities at Risk in Low Elevation Coastal ZonesBangladesh Centre for Advanced Studies for map on Flood-prone areas in DhakaCentre for Urban Studies (Bangladesh) for map on Slum settlements in DhakaEuropean Commission Directorate for Regional Policy for map on Intra-city Differences in Unemployment in London,Berlin, Stockholm and Madrid, 2001Kenya Bureau of Statistics for map on Poverty Incidence in Nairobi, Mombasa and KisumuRashid Seedat and the South African Cities Network for input to various graphs related to inequality in South African citiesThailand Department of Land Transport, Pollution Control Department of Thailand and Clean Air Initiative for Asian CitiesCentre for text and data on Air Quality in Bangkok

    World Resources Institute for flowchart on World GHG Emissions

    Input to boxes:Suochen Dong, Cristina Martnez Fernndez, Padmashree Gehl Sampath, Asa Jonsson, Prabha Khosla, Xue Li, Frederico Neto,Madanmohan Rao, Wandia Seaforth, Deborah Wei Mullin, Xiaojun Zhang

    Additional research:Sai Balakrishnan, Haddy Guisse, Lusungu Kayani, Jennifer Venema

    Country information:Maria Alvarez Gancedo, Wesley Aruga, Kangwa Chama, John Leo Chome, Bharat Dahiya, Suocheng Dong, Mara D. FrancoDelgado, Ali El-Faramawy, Eden Garde, David Houssou, Dodo Juliman, George Kozonguizi, Cecilia Martinez, AlbertoParanhos, Basilisa Sanou, Fole Sherman, Roshan Raj Shrestha, Ileana Ramirez, Tewodros Tigabu, Conrad de Tissera, MerlinTotinon, Pinky Vilakazi

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    Contents

    Part 1: SPATIAL HARMONY

    1.1 The Spatial Distribution of the Worlds Cities . . . . . . . . . . . . . . . . . . . . .41.2 Urban Growth Patterns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101.3 Which Cities are Growing and Why . . . . . . . . . . . . . . . . . . . . . . . . . . . . 241.4 Shrinking Cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

    Boxes and City StoriesEconomic policies and migration: The case of Dh aka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25How governments are propelling urban growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27New entrants in the league of cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Bangalore: Indias silicon plateau . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38Planning for growth while ant icipating decline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43Urban regeneration halts population decline in a European town . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

    Figures1.1.1: Urbanization levels (percentage urban) by ecosystem, 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . 51.1.2: The worlds megacities, 2007 and 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61.1.3: Urban population (millions) by region, 2005 and 2050 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.2.2: City growth and decline by city size in the developed world, 1990-2000 . . . . . . . . . . . . . . . . .12

    1.2.3: Annual growth rate of the worlds cities by region and city size, 1990-2000 . . . . . . . . . . . . . .161.2.4: City growth and decline by city size in the developing world, 1990-2000 . . . . . . . . . . . . . . . .171.2.5: Distribution of urban population in the developing world by city size, 2000 . . . . . . . . . . . . . . . 181.3.1: Net migration rate and natural growth rate in Shanghai, 1995 - 2006 . . . . . . . . . . . . . . . . . . .251.3.2: Number of new cities after 1990 in the developing world . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361.4.1: Proportion of cities experiencing accelerated, rapid, moderate, slow and negative growth rates in the developing and developed world in the 1990s. . . . . . . . . . . . . . . . . . . . . . 40

    Tables1.3.1: Drivers of growth in the developing worlds fastest growing cities . . . . . . . . . . . . . . . . . . . . . 281.3.2: Number and total population of new cities established since 1990 . . . . . . . . . . . . . . . . . . . .361.4.1: Declining cities in the developing world (1990-2000) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

    Maps1.2.1: Cities that experienced very high or negative population growth rates between 1990 and 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

    Part 2: SOCIAL HARMONY

    2.1 Why Urban Inequality Matters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 502.2 Urban Inequalities: Regional Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . 622.3 Education, Employment and City Size . . . . . . . . . . . . . . . . . . . . . . . . . 822.4 Slums: The Good, the Bad and the Ugly . . . . . . . . . . . . . . . . . . . . . . . . . 902.5 Slum Cities and Cities with Slums . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

    Boxes and City StoriesMeasuring inequality at the ci ty level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51Bhutans gross national happiness index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59New dimensions of inequality in emerging economies:Recent evidence from China, India and Br azil . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Chinas urban transition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78Slum households and shelter deprivations:degrees and characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92Urban poor adversely affected by Zimbabwes political crisis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96Woman-headed households suffer disproportionately from inadequate housing . . . . . . . . . . . . . . . .104Locating slums: Geographic concentration and clustering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

    Years of sanctions and conict take their toll on Iraqs cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

    Helping to locate slums using Earth Observation and Geoinformation Technologies . . . . . . . . . . . . . 118

    Figures2.1.1: Urban inequalities in China, India and Malaysia, 1969-2002 . . . . . . . . . . . . . . . . . . . . . . . . . . 542.1.2: Social mobility and equity in South African cities Class composition . . . . . . . . . . . . . . . . . . 592.2.1: Average Gini coefcient of selected cities by region. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 632.2.2: Average urban Gini coefcient by region. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 632.2.4: Urban inequalities in Latin America and the Caribbean . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .672.2.5: Urban and rural Gini coefcients for selected developing countries . . . . . . . . . . . . . . . . . . . . 682.2.6: Gini coefcient for selected cities in Latin America and the Caribbean. . . . . . . . . . . . . . . . . . 692.2.7: Urban inequalities in selected countries in Latin America and the Caribbean, 1989 - 2006 . .702.2.8: Urban inequalities in Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 712.2.9: Gini coefcient in selected African cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 722.2.10: Urban and rural Gini coefcients for selected African countries . . . . . . . . . . . . . . . . . . . . . . . 732.2.11: Relationship between economic growth and change of Gini coefcient in selected African cities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 742.2.12: Gini coefcients for selected Asian cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 752.2.14: Gini coefcients for urban and rural areas in Asia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 772.3.1: Proportion of children enrolled in primary education in Latin American cities and rural areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 832.3.2: Proportion of children enrolled in primary education in Asian cities and rural areas . . . . . . . . . 84

    2.3.3: Proportion of children enrolled in primary school in sub-Saharan African countriesexperiencing huge rural-urban dis parities in access to education . . . . . . . . . . . . . . . . . . . . . . 852.3.4: Proportion of children enrolled in school in sub-Saharan African countries where access to education is generalized across urban and rural areas . . . . . . . . . . . . . . . . . . . . . . . . . . . .852.4.1: Proportion of urban populations living in slums by region, 2005 . . . . . . . . . . . . . . . . . . . . . . .912.4.2: Slum population by region (millions), 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 912.4.3 A: Distribution of slum dwellers by degree of shelter deprivation (%), Africa. . . . . . . . . . . . . . . . 942.4.3 B: Di stribution of moderately deprived slum dwellers (one deprivation) by type of deprivation

    (%), Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 942.4.3 C: Distribution of severely deprived slum dwellers (two deprivations) by type of deprivation

    (%), Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 942.4.3 D: Distribution of extremely deprived slum dwellers (three+ deprivations) by type of

    deprivation (%), Africa . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 952.4.4: Slum prevalence in Africa, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .972.4.5: Slum prevalence in Asia, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 992.4.6 A: Distribution of slum dwellers by degree of shelter deprivation (%) Asia . . . . . . . . . . . . . . . .1012.4.6 B: Di stribution of moderately deprived slum dwellers (one deprivation) by type of deprivation (%), Asia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1012.4.7: Slum prevalence in Latin America and the Caribbean, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . 1022.4.8 A: Distribution of slum dwellers by degree of shelter deprivation (%) Latin America . . . . . . . . . 1032.4.8 B: Di stribution of moderately deprived slum dwellers (one deprivation) by type of deprivation (%), Latin America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

    2.5.1 A: Percentage of slum households by size of city: Countries with high concentration of slumsin small cities/towns as well as in capital/large c ities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1082.5.1 B: Percentage of slum households by size of city: Countries with high concentration of slums

    in small cities/towns and low or moderate concentration of slums in capital/large cities . . . 1092.5.1 C: Percentage of slum households by city size - Countries with low or moderate

    concentration of slums in capital/large cities as well as in small cities and towns . . . . . . . .1102.5.1 D: Percentage of slum households by size of city: Countries with slum concentration higher in capital/large cities than in small cities and towns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1122.5.2: Percentage of non-slum or slum households living in slum areas . . . . . . . . . . . . . . . . . . . . . 1132.5.3: Poverty incidence in Nairobi, Mombasa and Kisumu, 1999 . . . . . . . . . . . . . . . . . . . . . . . . . .119

    Tables

    2.1.1: Change in urban inequalities (Gini coefcient) and GDP per capita (PPP) in selected countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 542.4.1: Proportion of urban population living in slums 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

    Maps2.2.3: Intra-city differences in unemployment in London, Berlin, Stockholm and Madrid, 2001 . . . . . 642.2.13: Urban inequalities in Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

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    Part 3: ENVIRONMENTAL HARMONY

    3.1 Urban Environmental Risks and Burdens . . . . . . . . . . . . . . . . . . . . . . 1223.2 Cities and Climate Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1303.3 Cities at Risk from Rising Sea Levels . . . . . . . . . . . . . . . . . . . . . . . . 1403.4 Energy Consumption in Cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1563.5 Urban Energy Consumption at the Household Level . . . . . . . . . . . . 1643.6 Urban Mobility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

    Boxes and City StoriesBangkoks strategy to tackle air pollution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124Ougadougous Green Brigade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125The informal recycling economy of Asian cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127Does the urban environment affect emotional well-being? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128Heat island effect . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 131Poverty reduction as an adaptation strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139African cities at r isk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151Dhakas extreme vulnerability to climate ch ange . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152Cuba: A culture of safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154Energy-efcient buildings in Beijing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167

    Embedded energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168Cape Town: Scaling the energy ladder . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

    Figures3.1.1: Air quality in Mega cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123 Annual Average of PM10 in Bangkok during 1992 - 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . .1243.1.2: Proportion of children in urban areas in selected African countries with acute respiratory

    infections by type of fuel us ed for cooking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1253.1.3: Waste production (kg/year) per capita in selected cities . . . . . . . . . . . . . . . . . . . . . . . . . . .1293.2.1: World GHG emissions ow chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1323.2.2: Global greenhouse gas emissions in 2000, by source . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1333.2.3: Relationship between urban density and CO

    2emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

    3.2.4: Per capita CO2emissions in selected cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

    3.2.5: Carbon emissions in USA, European Union, China and India, 2005 and 2030. . . . . . . . . . . . . 1363.3.1: Urban density (persons per sq km) by ecosystem, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . .1413.3.2: Urban density by ecosystem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1443.3.3: Countries with the largest urban population in the low elevation coastal zone. . . . . . . . . . . .1443.3.4: Latin America and Caribbean cities at risk due to sea-level rise . . . . . . . . . . . . . . . . . . . . . . . 1463.3.5: Asian cities at risk due to sea-level rise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1473.3.6: African cities at risk due to sea-level rise. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1483.3.7: Population distribution, urban places, and low elevation coastal zones in North Africa . . . . . 1493.3.8: Proportion of population and land at risk due to sea level rise in Africa . . . . . . . . . . . . . . . . . 150

    3.3.9: Flood-prone slum and non-slum settlements in Dhaka . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1533.4.1: Linear and circular urban metabolism . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1563.4.2: Energy consumption by region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1593.4.3: Energy consumption in selected cities in high-income, industrialized economies . . . . . . . . . . 1603.4.4: Energy consumption in selected cities in middle-income countries . . . . . . . . . . . . . . . . . . . .16 03.4.5: Energy consumption in selected Asian cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1603.4.6: Ecological Footprint of countries by income (2003) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1623.4.7: Ecological footprint by components in selected cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1633.4.9: Ecological Footprint of selected cities and of the countries where they are located. . . . . . . .1633.5.1: Share of energy consumption in residential and commercial sectors in selected cities in

    high-income countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1653.5.2: Household energy use patterns in EU-15, 1997 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1683.5.3: Low-income household energy use patterns in Cape Town, 1996 . . . . . . . . . . . . . . . . . . . . 1683.5.4: Share of energy used for cooking in urban households in India, 1999/2000 . . . . . . . . . . . . . 1693.5.5: Emissions by common cooking fuels per meal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1693.5.6: Distribution of urban households by type of fuel for cooking in selected countries . . . . . . . . . 1703.5.7: Greenhouse gas emissions from a typical biomass cookstove . . . . . . . . . . . . . . . . . . . . . . .17 03.5.8: Proportion of family income used for energy in low-income households in selected cities and countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1703.5.9: Electricity consumption per household (kWh/year) in selected cities and countries . . . . . . . . 1723.5.10: Share of commercial and residential electricity consumption in selected cities . . . . . . . . . . 1723.5.11: Household electricity consumption differences in Cape Town . . . . . . . . . . . . . . . . . . . . . . . . 1733.6.1: Share of motorized and non-motorized private and public transport in selected regions and countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 63.6.2: Relationship between length of freeway per person and passenger car kilometres . . . . . . . 1763.6.3: Energy use by travel mode by region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1773.6.4: Total transport (private and public) CO

    2emissions in selected regions and countries . . . . . . 179

    3.6.5: Car ownership in selected cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1793.6.6: Private car ownership in selected large and megacities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1793.6.7: Private car ownership in selected cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1803.6.8: Transport mode split in selected cities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1803.6.9: Transport mode split in cities in the developed world . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .180

    Tables3.2.1: GHG Emissions on a regional scale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1363.2.2: Adaptation strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1383.3.1: Urban population at risk from sea level rise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1423.3.2: Urban density by ecosystem . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143

    Maps3.4.8: Ecological footprint of Berlin for the year 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163

    Part 4: PLANNING FOR HARMONIOUS CITIES

    4.1 Inclusive Urban Planning for Harmonious Urban Development . . . .1844.2 Building Bridges: Social Capital and Urban Harmony . . . . . . . . . . . .1964.3 Unifying the Divided City . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2044.4 Addressing Rural-Urban Disparities for Harmonious Regional

    Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2164.5 Metropolitan Governance: Governing in a City of Cities . . . . . . . . . 226

    Boxes and City StoriesSearching for the soul of the city . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194Identifying bonds and bridges in slum and non-slum areas of Addis Ababa . . . . . . . . . . . . . . . . . . . . 200Urban plus Rural as opposed to Urban versus Rural . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217Achieving Spatially Balanced Human Settlements in Cuba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 4The European Spatial Development Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225

    Figures4.2.1: Levels of trust and community participation by country and settlement type in Latin America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197

    Table4.4.1: Poverty and the rural-urban continuum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 3

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    Overview and Key Findings

    Cities are perhaps one of humanitys most complexcreations, never finished, never definitive. Theyare like a journey that never ends. Their evolutionis determined by their ascent into greatness or

    their descent into decline. They are the past, the present and

    the future.Cities contain both order and chaos. In them reside beauty

    and ugliness, virtue and vice. They can bring out the best orthe worst in humankind. They are the physical manifestationof history and culture and incubators of innovation, industry,technology, entrepreneurship and creativity. Cities are thematerialization of humanitys noblest ideas, ambitions andaspirations, but when not planned or governed properly, can bethe repository of societys ills. Cities drive national economies bycreating wealth, enhancing social development and providingemployment but they can also be the breeding grounds forpoverty, exclusion and environmental degradation.

    Half of humanity now lives in cities, and within the next two

    decades, 60 per cent of the worlds people will reside in urbanareas. How can city planners and policymakers harmonizethe various interests, diversity and inherent contradictions

    within cities? What ingredients are needed to create harmonybetween the physical, social, environmental and culturalaspects of a city and the human beings that inhabit it?

    Harmonious Cities

    A society cannot claim to be harmonious if large sections ofits population are deprived of basic needs while other sectionslive in opulence. A city cannot be harmonious if some groups

    concentrate resources and opportunities while others remainimpoverished and marginalized. Harmony in cities can not beachieved if the price of urban living is paid by the environment.Reconciling contradictory and complementary elements iscritical to creating harmony within cities. A harmonious citypromotes unity within diversity. Harmony within cities hingesnot only on prosperity and its attendant benefits, but on twopillars that make harmony possible: equity and sustainability.

    Harmony is both an ancient social ideal as well as amodern concept. In ancient Chinese philosophy, harmonyimplied moderation and balance in all things. Today, theconcept of harmony encapsulates more modern concepts,

    such as environmental sustainability, equity, gender parity,inclusiveness and good governance. While the concept ofsustainability focuses on ethical and ecological considerationsand is focused primarily on protecting the Earthsenvironmental and natural assets, the concept of harmony

    also entails the synchronization and integration of all of theEarths assets, whether they are physical, environmental,cultural, historical, social or human. In this sense, harmony isa broad concept that relies on distinctly human capabilities,such as mutual support, solidarity and cooperation.Harmony has now become the theoretical foundation fordeepening understanding of the social, economic, politicaland environmental fabric of cities in order to create a morebalanced society.

    Harmony is therefore both a journey and a destination.This report adopts the concept of Harmonious Cities as a

    theoretical framework in order to understand todays urbanworld, and also as an operational tool to confront the most

    important challenges facing urban areas and their developmentprocesses. It recognizes that tolerance, fairness, social justiceand good governance, all of which are inter-related, are asimportant to sustainable urban development as physicalplanning. It addresses national concerns by searching forsolutions at the city level. For that purpose, it focuses on threekey areas: spatial or regional harmony; social harmony; andenvironmental harmony. The report also assesses the variousintangible assets within cities that contribute to harmony,such as cultural heritage, sense of place and memory and thecomplex set of social and symbolic relationships that givecities meaning. It argues that these intangible assets representthe soul of the city and are as important for harmoniousurban development as tangible assets.

    Spatial Harmony

    The Century of the City

    The 21st century is the Century of the City. Half ofthe worlds population already lives in urban areas and bythe middle of this century, most regions of the developing

    world will be predominantly urban. This report takes a freshlook at existing urban data and delivers a compelling and

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    comprehensive analysis of urbanization trends and the growthof cities in the last two decades. Using a wealth of significantand comparative data on cities, the report analyzes global andregional trends that reflect the pace and scale of urbanizationin the developing world and the key drivers of urban growthin the worlds fastest growing cities. The purpose of this

    analysis is to explore the spatial nuances and implications ofeconomic and social policies.

    Urban growth rates are highest in the developing world,which absorbs an average of 5 million new urban residentsevery month and is responsible for 95 per cent of the worldsurban population growth. Urban growth is as a result ofa combination of factors: geographical location, naturalpopulation growth, rural-to-urban migration, infrastructuredevelopment, national policies, corporate strategies, andother major political, social and economic forces, includingglobalization. In the 1990s, cities in the developing worldgrew at an average annual rate of 2.5 per cent. More than halfof the urban areas in the developing world grew at the high

    annual rate of between 2 and 4 per cent or more during thisperiod, while more than one-third grew at the moderate orslow rate of less than 2 per cent a year. Although urban growthrates are slowing down in most regions of the developing

    world, levels of urbanization are expected to rise, with theleast urbanized regions of Asia and Africa transforming fromlargely rural societies to predominantly urban regions duringthe course of this century. By 2050, the urban population ofthe developing world will be 5.3 billion; Asia alone will host63 per cent of the worlds urban population, or 3.3 billionpeople, while Africa, with an urban population of 1.2 billion,

    will host nearly a quarter of the worlds urban population.In sharp contrast, the urban population of the developed

    world, including countries of the Commonwealth ofIndependent States, is expected to remain largely unchanged,rising only slightly from just over 900 million in 2005 to1.1 billion in 2050. Many cities in this region are actuallyexperiencing population loss, largely due to low rates ofnatural population increase and declining fertility rates. Thephenomenon of declining populations is generally associated

    with the developed world; however, the phenomenon ofshrinking urban populations can be observed in some citiesin the developing world. There is, therefore, a need tocombine new methods and techniques that respond to urbangrowth and expansion in some cities, while responding to

    the emerging trend of population and economic decline inothers. Smart planning for growth should be combined withsmart planning for contraction if more harmonious urbandevelopment is to be achieved.

    Urban change in the developing world does not alwaysfollow identical patterns or trends. Urbanization in Africa ischaracterized by disproportionately high concentrations ofpeople and investments in the largest city (in most cases, thecapital) and by very high annual slum growth rates of morethan 4 per cent. Urbanization in the region, especially in sub-Saharan Africa, is therefore characterized by urban primacyand slum formation.

    In Asia, an emerging trend is that of metropolitan expansion,which is becoming a prominent feature of large cities. Urbanpopulations are shifting or relocating to suburban locationsor satellite towns linked to the main city through commuternetworks. This phenomenon is particularly prevalent in largeIndian cities, where ring towns or bedroom communities have

    formed around cities such as New Delhi and Mumbai. Urbangrowth patterns in China, on the other hand, have tended toproduce city regions along the eastern coastal belt, which areresponsible for much of the economic growth experienced bythe country in recent years. In countries where urban primacyis still the rule, such as the Philippines and Indonesia, the trendhas been to promote the growth of intermediate cities in orderto direct migrants away from the largest city.

    Urban development in Latin America and the Caribbean,the most urbanized region in the developing world, is alsocharacterized by a high degree of urban primacy with one-fifthof the regions urban residents living in cities with populationsof 5 million or more. However, one of the most distinctive

    features of urbanization in the region is the rapid growthof small cities, which are home to nearly 40 per cent of theregions urban population. Another distinctive characteristicof the region is that urban growth is often the result of peoplemoving from one city to another, and not from rural areas tourban areas.

    Central governments play a critical role in determiningthe prosperity and growth of cities

    Geography clearly matters when explaining the economicdynamism and growth of cities and regions (location,comparative advantages, agglomeration factors, proximityetc.). For instance, cities located near the sea, along a riverbank or in a delta have historically dominated, and continueto dominate, the urban landscape of countries and regions.Fourteen of the worlds 19 largest cities with populations ofmore than 10 million are located near a large water body thatserves to link local economies to regional and global supplychains and trade.

    However, geography alone does not determine which citieswill grow or prosper. This report shows that the growth ofcities is neither random nor entirely organic. National policies,corporate strategies and the comparative advantages that citiesoffer in global, regional and local markets to a large extent

    determine which cities will grow and thrive and which willdecline in size or economic or political significance. Nationalpolicies that include pro-urban approaches to economicdevelopment play a critical role in the growth of cities, as hasbeen witnessed in Chinas southern and eastern regions inrecent years.

    In many cities, national economic policies and investmentsare mostly the result of government decisions and budgetallocations. The State, in its various institutional forms, exertsa critical influence on determining which cities and regions

    will benefit most from public resources. Governments alsopromote and/or regulate private or public investments for

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    the construction of infrastructure and other investmentsthat contribute to urban development. Central governmentsin many countries are concentrating more attention andresources on particular city-regions to redirect regional ornational development. They are also using cities to connectto the global space of business and financial flows, while

    concurrently using such cities to propel social change inparticular directions.In many countries, urban growth is initially driven by

    national governments, and then further propelled by localauthorities and other actors, such as the private sector. Thishas led to cities competing with each other for resources andfor inclusion in regional and national development plans andstrategies. The growth of cities through local initiatives reflectsa rising trend towards greater urban entrepreneurialism andmore intense city competition.

    Balanced urban and regional development can beachieved through consistent and targeted investments in

    transport and communications infrastructure

    Cities can no longer be treated as distinct spaces unconnectedto the regions surrounding them. Linkages between rural andurban areas and between cities have created new opportunitiesthat rely on connectivity to enable the flow of people andresources from one area to another. Investments in urban,inter-urban and rural-urban transport and communicationsinfrastructure are, therefore, critical for balanced regionaldevelopment and for enhancing the economic potential ofcities and the regions surrounding them.

    Central governments play a pivotal role in allocatingand mobilizing financial resources either to support urbaneconomic development or to redress regional/territorialdisparities. This report shows that targeted investments intransport and communications infrastructure, in particular,are the most significant drivers of urban growth and economicdevelopment in the developing world.

    A preliminary UN-HABITAT analysis of the fastestgrowing cities in the developing world shows that more than40 per cent benefitted from the diversification, expansionor improvement of regional or national transport systems,including roads, airports, urban and inter-urban railway linesand ports. Investment in transport and communicationsinfrastructure not only increases the overall productivity of

    cities, nations and regions, it also promotes balanced urbanand regional development. Policies to promote economicdevelopment, including designation of special economiczones or industrial hubs, are also playing an important role inthe growth of cities, particularly in Asia.

    Social Harmony

    Cities are becoming more unequal

    In many cities, wealth and poverty coexist in close proximity:rich, well-serviced neighbourhoods and gated residential

    communities are often situated near dense inner-city or peri-urban slum communities that lack even the most basic ofservices. This report presents a preliminary global analysis ofincome and/or consumption distribution at the urban and/orcity level. It shows that income distribution varies considerablyamong less-developed regions with some regions, notably

    Africa and Latin America, exhibiting extremely high levels ofurban inequality compared to Europe and Asia, where urbaninequality levels are relatively low.

    Latin American and Caribbean cities are among the mostunequal in the world, with Brazilian and Colombian citiestopping the list, closely followed by some cities in Argentina,Chile, Ecuador, Guatemala and Mexico. Urban inequalitiesin this highly unequal region are not only increasing, butare becoming more entrenched, which suggests that failuresin wealth distribution are largely the result of structural orsystemic flaws.

    In Africa, urban income inequalities are highest inSouthern Africa, with South African and Namibian cities

    exhibiting levels of urban inequality that rival even thoseof Latin American cities. Cities in sub-Saharan Africa thathave recently emerged from apartheid systems of governancetend to be the most unequal. South Africa stands out as acountry that has yet to break out of an economic and politicalmodel that concentrates resources, although the adoptionof redistributive strategies and policies in recent years havereduced inequalities slightly. Unfortunately, rising economicgrowth rates in several African countries have not reducedincome or consumption disparities; on the contrary, urbaninequalities in many African cities, including Maputo,Nairobi and Abidjan, remain high as wealth becomes moreconcentrated. In general, urban inequalities in African

    countries tend to be higher than rural inequalities, andNorthern African cities tend to be more equal than sub-Saharan African cities.

    Asian cities, on the other hand, tend to be more equal thancities in other parts of the developing world, although levelsof urban inequality have risen or remain high in some cities,including Hong Kong and Ho Chi Minh City. High levels ofurban inequality have also been reported in cities in Thailandand the Philippines. Cities in China tend to be more equalthan other Asian cities, with Beijing being among the mostequal city in the region, although some Chinese cities, suchas Shenzhen, are experiencing relatively high inequality levelssimilar to those of Bangkok and Manila. Chinas boomingeconomy has also led to rural-urban and regional disparities,

    with populations living in cities located on the eastern part ofthe country enjoying significantly higher per capita incomesthan rural populations living in remote western parts of thecountry. In Bangladesh, India, Pakistan and Indonesia, levelsof urban inequality are generally low and are comparableto many cities in Europe, Canada and Australia. However,recent analyses suggest that India will experience rising levelsof urban inequality in the future as a result of liberalizationand industrialization policies coupled with lack of adequateinvestment in provision of public goods to the most vulnerablepopulations.

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    High levels of urban inequality are socially destabilizingand economically unsustainable

    High levels of inequality in cities can lead to negative social,economic and political consequences that have a destabilizingimpact on societies. Inequalities create social and politicalfractures within society that can develop into social unrest.This is particularly true in places experiencing both highlevels of inequality and endemic poverty, which increase therisk of political tension and social divisions that can threatennational security and economic development. Social unrestand insecurity, in turn, reduce incentives for investmentand force governments to increase the amount of publicresources devoted to internal security resources that mighthave otherwise been spent on more productive sectors of theeconomy or on social services and infrastructure.

    This report shows that the benefits of economic growth arenot realized in societies experiencing extremely high levels ofinequality and poverty. In fact, recent evidence shows that

    societies that have low levels of inequality are more effectivein reducing poverty levels than those that are highly unequal.Economic growth benefits larger groups of people and isabsorbed better by egalitarian societies than by those wheredisparities between the rich and the poor are very wide,as the former tend to concentrate the benefits of wealthcreation, leaving the majority behind. Inequalities also havea dampening effect on economic efficiency as they raise thecost of redistribution and affect the allocation of resources forinvestment.

    A significant conclusion of this report is inequality isnot a natural consequence of economic growth and that

    while the relationship between economic growth and urban

    income inequality is neither simple nor correlational, levels ofinequality can be controlled or reduced by forward-lookingmitigation efforts on the part of governments. UN-HABITATanalysis of urban inequalities in 28 developing countriesindicates that since the 1980s nearly half of these countriesmanaged to reduce levels of urban inequality while enjoyingpositive economic growth. Malaysia, for instance, has beensteadily reducing levels of urban inequality since the early1970s through the implementation of pro-poor policies andthrough human resources and skills development. Similarly,Indonesias Growth, Stability and Equity programme hasensured that income distribution and poverty alleviation areintegral components of economic growth and development.Policies promoting equity in Rwanda have also ensured thatthe high economic growth rates that the country is currentlyexperiencing do not increase inequality levels. These countrieshave shown that it is possible to grow economically withoutincreasing inequality levels, and that reduction of inequalitiesis, in fact, a pro-growth strategy.

    Focused and targeted investments and interventions cansignificantly improve the lives of slum dwellers

    Slum dwellers in many of the worlds poorest citiesexperience multiple deprivations that are direct expressions

    of poverty: many of their houses are unfit for habitation andthey often lack adequate food, education, health and basicservices that the better-off take for granted. Frequently, theirneighbourhoods are not recognized by local and centralauthorities. In many parts of the world, these invisible,unplanned parts of cities are growing faster than the more

    visible, planned parts.In some cities, slum dwellers constitute the majority of theurban population and slums are the most common type ofhuman settlement, giving rise to what this report refers toas slum cities, while in others, slums are small pockets ofdeprivation physically isolated from the rest of the city. Slumprevalence is highest in sub-Saharan-Africa (62 per cent),followed by Southern Asia (43 per cent) and Eastern Asia (37per cent). Northern Africa has the lowest slum prevalence inthe developing world (15 per cent).

    However, new UN-HABITAT data shows that not allslum dwellers suffer from the same degree or magnitude ofdeprivation, nor are all slums homogenous. In other words,

    not all slum dwellers around the world suffer the same fate:some are worse off than others. In general, however, thepoorest regions of the world tend to host the largest slumpopulations that suffer from multiple shelter deprivations,including lack of access to improved water and sanitation,overcrowding, non-durable housing and insecure tenure.For instance, surveys conducted in Angola, the DemocraticRepublic of the Congo, Guinea Bissau, Sudan and SierraLeone show that slum dwellers there are likely to experiencea combination of shelter deprivations, whereas in countriessuch as Benin, Burkina Faso, Burundi, Cameroon, Gabon,Kenya, Ghana and Senegal, most slum dwellers tend to sufferfrom one or two shelter deprivations. The report also shows

    that woman-headed households suffer disproportionatelyfrom multiple shelter deprivations; in Haiti, for instance,nearly 60 per cent of woman-headed households suffer fromthree shelter deprivations, while in Kenya and Nicaragua,one-third of woman-headed households experience fourshelter deprivations.

    The report also shows that slum dwellers across regionssuffer from similar deprivations: slum dwellers in Colombia,Turkey and Zimbabwe, for instance, suffer mostly fromovercrowding, whereas slum dwellers in Egypt and Mexicosuffer most from lack of improved sanitation. In many cities,however, living in a non-slum area is no guarantee againstpoor living conditions. UN-HABITAT data shows that a slumresident in Cairo can be better-off than a non-slum dweller inLagos, Luanda and many other cities in sub-Saharan Africa interms of indicators such as health, education or environmentalconditions. These differentiated levels of social inequality andexclusion can adversely affect cities and regions social andeconomic development.

    By identifying the particular deprivation that is prevalentin slums, governments and local authorities can focus publicresources for the improvement of slums more effectively.In the case of Benin, for instance, targeted investments insanitation facilities in slums could easily elevate a quarter ofthe slum households to non-slum status. By disaggregating

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    the type and level of shelter deprivation in slums (i.e. severeor non-severe), policymakers can be in a better position todevise policy responses that are better focused and targeted.Furthermore, by categorizing slums according to the typeor intensity of deprivation they experience, it is possible tobetter target interventions in cities and even within specific

    neighbourhoods. This information can be combined withother urban and slum indicators in order to make moreinformed decisions about how to improve the lives of slumdwellers and build cities that are more socially harmonious.

    Environmental Harmony

    Cities provide an opportunity to mitigate or even reversethe impact of global climate change as they provide theeconomies of scale that reduce per capita costs anddemand for resources

    Cities that are not properly planned or managed can be a

    burden on natural resources and can easily threaten the qualityof the air and water, thereby negatively impacting the naturaland living environment. Because of their compact form andeconomies of scale, cities offer major opportunities to reduceenergy demand and to minimize pressures on surroundingland and natural resources. Well-planned and well-regulatedcities hold the key not only to minimizing environmentallosses, but to generating creative solutions to enhance thequality of the environment and to mitigate the negativeconsequences of climate change.

    However, if cities can harness the inherent advantagesthat urbanization provides, they can, in fact, be part of thesolution to global environmental challenges, including the

    rise in greenhouse gas emissions brought about by fossil fuelconsumption. Although cities and urban-based activities areusually blamed for the increase in greenhouse gas emissionsglobally, evidence suggests that these emissions are morerelated to consumption patterns and gross domestic product(GDP) per capita than they are to urbanization levels per se.For instance, the megacity of So Paulo in Brazil producesone-tenth the emissions of San Diego in the United States,even though the latter is one-quarter the size of the former.

    This report presents a first general account of how citiesconsume energy, disaggregating the information in threesectors: industry; residential and commercial buildings; andtransport, taking into account the stage of development of

    countries and their income levels. Although per capita energyconsumption tends to be higher in rich industrialized cities,there are significant variations between cities in differentregions. For example, cities in Europe, which tend to becompact and which encourage use of public transport, useenergy more efficiently than cities in North America, whereurban sprawl, high-energy-consuming lifestyles and highdependence on motorized private transport is the norm.

    The findings further show that energy use differs betweencities in the developed world and those in developing countries.Heating and lighting of residential and commercial buildingsconsume more than 50 per cent of energy in cities such as New

    York, London and Tokyo, while transport accounts for morethan half of the energy consumed in Hong Kong, Bangkok,Cape Town and Mexico City. In some Chinese cities, such asBeijing and Shanghai, industry is the main consumer of energy.Variations between regions and cities can also be found at thehousehold level. The bulk of energy in low-income households

    in developing countries is used for cooking, whereas spaceheating and lighting use up the bulk of energy in households inhigh-income countries. For urban poor households the climbup the energy ladder from biomass fuels to cleaner energysources, such as electricity or natural gas not only improvestheir quality of life, but also reduces greenhouse emissions.There is, therefore, a need to introduce new energy-efficientand environmentally-friendly technologies in low-incomecommunities in order to reduce their environmental impactand lessen environmental hazards.

    Data on energy consumption at the city, sub-city andhousehold levels is still scant, however, which calls for theneed to set up a global monitoring mechanism to measure

    energy consumption in cities, their impact on greenhouse gasemissions and the mitigation and adaptation solutions thatare being implemented.

    Evidence shows that compact and well-regulated citieswith environmentally-friendly public transport systemshave a positive environmental impact

    Although the rich generally consume more energy thanthe poor, the report shows with convincing evidence thaturban form and density and environmentally-friendly publictransport systems strongly influence energy consumptionat the city level and that some cities in developed countries

    now produce fewer carbon emissions per capita than cities insome less developed countries. Cities that are more compact,use more clean energy and are less dependant on motorizedtransport are not only more energy-efficient but contributeless to greenhouse gas emissions.

    A comparison of transport-related carbon emissions invarious regions around the world shows that emissions arehighest in North America and Australia. North Americancities are suffering from urban sprawl and expansion andincreased use of private motorized transport, which contributeto the exceptionally high levels of emissions in this region.

    Western Europe, on the other hand, produces approximatelya quarter of the transport-related emissions of North

    America, a difference that can be explained by the tendencyof European cities to promote the use of clean energy and themore prevalent use of public transport in the region. Increaseduse of environmentally-friendly public transport systems andhalting of urban sprawl in cities can therefore substantiallyreduce emissions at the city level.

    Sea level rise could have a devastating impact on coastalcities

    Global mean projections indicate that global warmingcould lead to a rise in sea levels in the coming decades. Sea

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    level rise brought about by climate change could have adevastating impact on coastal cities and urban populations.Globally, nearly 60 per cent of the worlds population livingin low elevation coastal zones the continuous area alongcoastlines that is less than 10 metres above sea level and whichis most vulnerable to sea level rise is urban. Some regions,

    such as Asia and Africa, are particularly vulnerable, as manycoastal cities in these regions do not have the infrastructure towithstand extreme weather conditions. Parts of cities such asDhaka in Bangladesh and Alexandria in Egypt could in effectbe swept away as the infrastructure to withstand extremeflooding in these and other cities in the developing world isinsufficient. Because the urban poor tend to live in hazardouslocations, such as flood plains, they are particularly vulnerablein the event of sea level rise as their housing is often of anon-durable nature and their settlements often lack adequatedrainage, embankments and other infrastructure. These citiesneed to urgently adopt mitigation and adaptation strategies inorder to avert catastrophic consequences in the future.

    Planning for Harmonious Cities

    Cities are not just brick and mortar: they symbolize thedreams, aspirations and hopes of societies. The managementof a citys human, social, cultural and intellectual assets is,therefore, as important for harmonious urban developmentas is the management of a citys physical assets.

    Urban planning has to go beyond being just a technicalexercise to one that is cognizant of a citys various tangible andintangible assets. Innovative approaches to urban planninghave to also respond to the following emerging prioritiesand concerns: regional disparities; urban inequalities; and

    metropolitan expansion or the growth of city regions. Thisreport presents some of the elements required to implementinnovative planning solutions for sustainable and harmoniousurban development with examples of cities that are making adifference.

    Commitment to pro-poor, inclusive urban development

    Pro-poor social programmes, inclusive governance structuresand investment in public goods and services have gone a long

    way in reducing inequalities in many cities. Investmentsin infrastructure and basic services for the poorest or mostvulnerable groups have not only drastically reduced urban

    poverty levels, but also bridged the urban income divide.This report presents the main conclusions of an analysis of

    the policies and interventions that cities are implementing toachieve more harmonious urban development. The analysis

    was conducted by UN-HABITAT and the Cities Allianceand covers approximately 52 cities in 21 countries. This studyprovides a better understanding of what drives city/countrysperformance in reducing intra-city inequalities by upgradingslums and preventing their formation. The report shows thatsuccessful slum improvement or reduction initiatives sharesix attributes, and when governments harness all or someof them the possibility of success is higher. These attributes

    are: i) awareness and political commitment; ii) institutionalinnovation; iii) policy reforms and institutional strengthening;iv) effective policy implementation; v) setting up monitoringand evaluation mechanisms; and v) scaling up actions.

    Political commitment, especially by the top leadership,plays a critical role in reducing urban poverty and slum

    prevalence. Some of the most successful cities in this regardhave benefitted from visionary mayors and political leaderswho have radically transformed city landscapes by introducingreforms and strengthening institutions that enhance a cityseconomic vitality and environmental sustainability whilesimultaneously reducing poverty levels and slum prevalence.Political commitment coupled with performance monitoring,either from the bottom up or from the top down, have shownto improve the quality of urban services in many cities, andmade local authorities more accountable to citizens.

    Governing in a city of cities

    The report advocates for the need to consider metropolitanand regional governance structures to respond to the growingdemands and challenges of urban agglomerations that areexpanding outside the traditional city limits. The city ofcities or city regions should be able to respond to issues suchas transport, crime, pollution, poverty and exclusion througheffective metropolitan governance arrangements. Thesenew structures of governance would address fundamentalchallenges, such as territorial isolation, fragmentationof technical and political interests, legal restrictions onmunicipalities to intervene beyond the politico-administrative

    jurisdictions, and different levels of functionality of the fiscaland administrative systems.

    Metropolitan governance arrangements affect the levels ofharmony and disharmony in cities. Harmony can be enhancedthrough effective leadership, efficient financing, effectiveevaluation mechanisms and forms of citizen participation,and institutional reforms addressing multi-level and inter-

    jurisdictional challenges to better govern metropolitan areas.Competitive cooperation between cities that are part of the

    same urban agglomeration can help to overcome disharmoniesrelated to spatial or territorial disparities and inequalitiesin the access to housing and basic services. They can alsocontribute to more balanced development between rich andpoor municipalities and between the urban agglomerationand the hinterland. Metropolitan governance structures that

    coordinate with other levels of government can also put inplace mitigation and adaptation measures that can contributeto the improvement of the quality of the environment.

    Effective metropolitan governance offers the potential formore harmonious urban development responding to thefollowing fundamental concerns: i) spatial disparities, ensuringthat government policies promote convergence of leading andlagging regions and cities, supporting further development inthe former and dealing with asymmetric growth and regionaldisparities in the latter; ii) an increasingly divided urbansociety, ensuring that governments adopt pro-poor growthpolicies and reforms by designing interventions in those

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    sectors and areas in which poor people earn their living andwhere economic development faces distributional challenges;iii) increased environmental costs, ensuring that governmentsadopt policies to enhance energy efficiency related to thefunctionally of the city such as public transport and anti-sprawl policies that improve the quality of the environment

    without impairing economic growth; iv) ensuring thatgovernments adopt policies to protect intangible assets, suchas cultural heritage, and create social spaces that contribute tohumanizing cities.

    Coordination and collaboration between national,provincial and local authorities can achieve harmoniousregional and urban development, provided they share acommon vision and demonstrate sufficient political will

    Improved coordination between the three levels ofgovernment local, provincial and national involves achange in the national and urban governance paradigm, in

    which central governments have the responsibility to putforward legislation, adopt social and economic policies andallocate budgets through a continuous dialogue with regionaland local authorities in support of city growth. On theirpart, local authorities, working with regional authorities,need to develop clear visions and strategies that articulateshort- and medium-term responses to enhance economicand social conditions in their cities. When local authoritiesset up good local governance structures for effective urbanmanagement and city development, and when they improvecoordination with the other two levels of government, thereare more chances to achieve harmonious regional and urbandevelopment. Economic and social policies need to address

    the needs of both cities and the regions in which cities arelocated, including urban-rural interfaces. If this is not done, itis likely that regional disparities will continue to widen.

    Hong KongXing Zhang

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    SPATIAL HARMONYPart One

    01Cities and the regions surrounding themhave a symbiotic relationship; as long asthis relationship is understood and carefullynurtured, both will advance together. Part 1presents preliminary observations on the spatialidentity of the worlds cities, going beyond theone or two cities tell everything approach that

    has dominated urban studies so far. It showswith compelling evidence that the growth ofcities is experiencing a dramatic bifurcation:

    while most cities in the developing world aregrowing, with some doubling in size every 15to 30 years, some cities are actually experiencingpopulation loss.

    These changes are neither random nororganic; urban growth and decline are aresult of a combination of factors, includinggeographical location, natural populationgrowth, infrastructure development, national

    policies, corporate strategies and globalization.Understanding the determinants of the growthor decline of cities can help planners to supportthe processes that lead to harmonious urbandevelopment and to deal with some of thenegative consequences of urban growth, such asasymmetrical regional development and rural-urban disparities.

    Downtown Dhaka at nightManoocher Deghati/IRIN

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    Geography matters

    The evolution of cities is intimately linked togeography. Archaeological evidence shows thatmany of the oldest human settlements werelocated along the banks of mighty rivers and lakes,

    in deltas or along coastlines. Locations near water offeredopportunities for fishing and agriculture, which helpedensure a steady food supply. Coastal cities and cities locatedin river deltas also served to link local economies to regionaland global supply chains and trade; such cities have continuedto provide vital economic links throughout time.

    1.1The Spatial Distributionof the Worlds Cities

    Coastal areas have always been preferred locations forhuman settlements, both in ancient times and today. Citieslocated near the sea have an obvious advantage: they provideaccess to sea trade routes and links.1 Globally, coastal zonesare the most urbanized ecosystems, with 65 per cent of theirinhabitants residing in urban areas; Europe, North America,Oceania, and Latin America have the most urbanized coastalareas, with more than 80 per cent of the population alongcoastlines living in cities.

    s

    Montevideo cityscape from port districtSonja Fagnan/iStockphoto

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    Settling near large bodies of water has clearly been animportant factor in the economic and demographic growthof cities. Inland water ecosystems, like coastal areas, also tendto be highly urbanized. Globally, 55 per cent of the worldspopulation residing in inland water ecosystems was urbanin 2000. In Africa, slightly more than 50 per cent of the

    population residing along the shores of inland lakes and riverswas urban in 2000, while in Asia, the figure was 47 per cent.2(Figure 1.1.1)

    While coastal zones tend to be the most urbanized ecosystemsin all regions of the world, they do not support the largestshare of urban populations in countries with coastlines; in allregions of the world, except Oceania, cultivated ecosystems or agricultural land support the largest urban populations.In China, for instance, more than 85 per cent of the urbanland area and urban population is located in cultivatedecosystems; Chinas coastal zone, however, represents just 2per cent of the total land area but is home to 23 per cent ofthe urban population of the country and 14 per cent of the

    total population.3

    Cities located near the sea, along a river bank or in adelta tend to be the largest cities in all regions of the world.Port cities, in particular, continue to dominate the urbanlandscape of countries and regions. Fourteen of the worlds19 largest cities are port cities located along a coastline or in ariver delta. (Fig. 1.1.2) A similar pattern exists at the regionallevel. Fourteen of the 20 largest cities in both Africa and Latin

    America and the Caribbean are located on a coastline or alonga river bank. In Asia, the dominance of port cities is evengreater: 17 of the regions 20 largest cities are either coastal,on a river bank or in a delta. In general, large cities bothcoastal and inland in the developing world tend to be larger

    and more dense than those in the developed world, as mostcities with populations greater than 500,000 are located in

    low- or middle-income countries, with Asia having the largestnumber of cities with populations of 1 million or more.4

    Rivers and delta regions have played an equally importantrole in the growth of Asian cities as coastlines; half of the largestcities in the region developed along important rivers thatserve as gateways to coastal and inland areas. In the developed

    world (including Japan), 35 of the 40 largest cities are eithercoastal or situated along a river bank. In Europe, rivers haveplayed a more important role in determining the growth andimportance of a city than the sea; more than half of the 20largest cities in the region developed along river banks. Thesecities have played, and continue to play, an important rolein the economy of the region. As the volume of sea trade hasmore than doubled in the last 30 years, and is likely to grow,port cities are likely to gain even more economic importancein the future.5

    Cities in other ecosystems are now growing faster aroundthe world than cities in coastal zones. Globally, cities locatedin mountainous regions grew at almost the same rate as cities

    located in coastal zones (approximately 2.5 per cent a year)between 1995 and 2000. Although cultivated and drylandecosystems supported the largest share of the total urbanpopulation of Africa between 1995 and 2000, the urbanpopulation in forested and mountainous areas grew thefastest during the same period. Urban growth in these areas,however, could have negative implications for the continentsalready fragile environment, and for climate change. In Asia,cities in both coastal and cultivated areas grew at the same rate(3 per cent a year), while in Latin America, cities in dryland,forest and inland water areas grew at the same rate (2.2 percent a year) during this period. Projections suggest that inthe next 15 years, cities in coastal, dryland, inland water, and

    mountainous ecosystems will grow steadily at an average rateof 2 per cent per year.6

    FIGURE 1.1.1:URBANIZATION LEVELS (PERCENTAGE URBAN) BY ECOSYSTEM, 2000

    Source: Balk et al., 2008.

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    National economic and industrial policiesmake a difference

    In the last two decades, some inland cities have takenadvantage of the opening up of economies, the eliminationof trade restrictions, and the reduction of tariff and transport

    costs to foster economic and population growth.7Other inlandcities have used their proximity to larger urban agglomerationsto improve their transport and communication systems tobecome more competitive. Many small cities are developingurban-scale economies, enhancing their ability to manageurbanization with added commuting technology and basicservices, and are improving the delivery of social services toattract people and capital. As a consequence, some cities aregrowing very rapidly, other less rapidly and some not at all;in fact, numerous cities are experiencing a decline in theirpopulations and in their economies.

    These changes are neither random nor entirely organic; thegrowth of cities is determined by a variety of factors, many of

    which have to do with national policies. Governments andprivate capital often determine which cities will grow and which

    will not by deciding on the location of key investments, suchas roads, airports, universities, communications, or capital,

    which influence a range of economic activities that lead topopulation growth or in-migration.8The city of Shenzhen inChina, for instance, grew at the astounding annual rate of

    20 per cent during the 1990s after it was declared a SpecialEconomic Zone by the Chinese authorities in the 1980s. Asan industrial growth pole, the city is now one of the most

    important transport and industrial hubs in China, and a keydriver of the countrys economy.

    When central authorities implement macroeconomicpolicies or adopt specific economic or industrial reforms,some areas benefit more than others. The economic reformshave a cumulative impact; they in turn, influence thespatial distribution of new investments and employmentin specific regions.9To some extent, the movement of ruralpopulations to urban areas and movement of populationsbetween different areas is linked to these spatial influences:people generally migrate to places where they think thereare more opportunities, and the concentration of economicactivity in cities is a major attractor for people from rural

    areas. However, rural-to-urban migration is becoming lessprevalent in many regions as urban-to-urban migration andnatural population growth gain momentum. Mobility fromone city to another is becoming one of the predominant typesof population movements in Latin America, where half of thepeople moving from one state to another originate from andend up in cities.10

    FIGURE 1.1.2:THE WORLDS MEGACITIES, 2007 AND 2025

    2007 2025

    Population (Thousands) Population (Thousands)

    1 Tokyo 35,676 1 Tokyo 36,4002 Mexico City 19,028 2 Mumbai 26,385

    3 New York-Newark 19,040 3 Delhi 22,498

    4 So Paulo 18,845 4 Dhaka 22,015

    5 Mumbai 18,978 5 So Paulo 21,428

    6 Delhi 15,926 6 Mexico City 21,009

    7 Shanghai 14,987 7 New York-Newark 20,628

    8 Kolkata 14,787 8 Kolkata 20,560

    9 Buenos Aires 12,795 9 Shanghai 19,412

    10 Dhaka 13,485 10 Karachi 19,095

    11 Los Angeles-Long Beach-Santa Ana 12,500 11 Kinshasa 16,762

    12 Karachi 12,130 12 Lagos 15,796

    13 Rio de Janeiro 11,748 13 Cairo 15,561

    14 Osaka-Kobe 11,294 14 Manila 14,808

    15 Cairo 11,893 15 Beijing 14,54516 Beijing 11,106 16 Buenos Aires 13,768

    17 Manila 11,100 17 Los Angeles-Long Beach-Santa Ana 13,672

    18 Moscow 10,452 18 Rio de Janeiro 13,413

    19 Istanbul 10,061 19 Jakarta 12,363

    20 Istanbul 12,102

    21 Guangzhou, Guangdong 11,835

    22 Osaka-Kobe 11,368

    23 Moscow 10,526

    24 Lahore 10,512

    25 Shenzhen 10,196

    26 Chennai 10,129

    Source: UN-HABITAT 2008Data from UN Population Division, World Urbanization Prospects 2007.Figures for 2025 are projections.Note: Population gures are for urban agglomeration, not city proper.Megacities are cities with populations of more than 10 million. : New megacities

    : Cities located near a large water body (sea, river or delta)

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    Reconciling geography and economy with policy

    Geography and national economic policies alone do notdetermine which cities will grow and which will decline. Inan increasingly globalizing world, countries and cities thattake advantage of global, regional and local markets tendto thrive while those that are not part of this marketplacetend to decline in size and significance. The concentrationof economic activities and population generates efficiency

    gains in certain regions and urban centres that benefit frominternational, national and local factors, while leaving otherregions and cities behind. This has led to regional imbalancesin the incidence of poverty, on the one hand, and also intra-regional imbalances on the other. Whereas the top one-thirdof developing countries experienced a relatively large increasein the ratio of trade to Gross Domestic Product over the pasttwenty years, the remaining two-thirds of developing countriesactually trade much less today than twenty years ago.11

    Spatial and regional disparities have become more visibleand have increased in many countries, particularly over thelast two decades.12In Peru, the incidence of poverty in coastal

    FIGURE 1.1.3:URBAN POPULATION (MILLIONS) BY REGION, 2005 AND2050

    s

    Pyramids along the River Nile: Many of the largest cities in the world have developed along river banks or deltas.Madanmohan Rao

    Source: UN-HABITAT, Global Urban Observatory, 2008.Data from UN Population Division, World Urbanization Prospects, 2007 revision.Note: *Asia doesnt include Japan. ** Oceania doesnt include Australia and New Zealand.

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    Dhaka: This megacity is expected to absorb an additional 9 million inhabitants in the next 15 years.Maciej Dakowicz

    of income for a poor farmer, meaning that many children

    raised in rural areas cannot access a full education. Disparitiesat national and local levels have isolated ent