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Cities in Transition
World Bank Urban and Local Government Strategy
The World Bank Infrastructure Group
Urban Development, 2000

Contents - Abbreviations - Foreword and Acknowledgments
Executive Summary
Attachment 1 Matrix of strategic vision and actions to support sustainable cities
Attachment 2 Illustrative indicators for monitoring urban and local government performance under the new strategy
Attachment 3 Timetable and indicators for monitoring implementation of the new strategy in the Bank

1. The Need for a New Urban Strategy for the Bank
The changing context of urban development
The implications of urban change for national development
The importance of urban development to the global, and to the Bank’s, development agenda
2. Pursuing a Vision of Sustainable Cities
The urban transition in the national context
Public and private roles in urban development
The need for a multidimensional approach: lessons from experience
The four dimensions of sustainable cities
Good governance and management
Seizing the opportunity for greater impact in support of sustainable cities
3. A Renewed Bank Strategy for Urban and Local Government Assistance
Principles and preconditions of the strategy
The four building blocks of the new strategy
Adapting the existing “business lines” and products of urban assistance
Regional urban strategies and action plans
4. Requirements for Implementing the New Strategy
Expanding external and internal partnerships
Strengthening the internal organization of urban work
Enhancing human capital and knowledge management
Adapting the Bank’s approaches to involuntary resettlement
Allocating budgetary resources for urban work
Implementing the new strategy
Attachment 4 Urban lines of business—illustrative examples
Annex A The implications of urban change for national development
Annex B Operational experience in implementing the policy framework for sustainable cities
Annex C Evolution of past lending and performance of the urban development portfolio
Annex D Urban indicators
Figure 1.1 Within a generation the developing world will be predominantly urban
Figure 1.2 Most developing countries are in, or are entering, the high-growth phase of the urban transition
Figure 1.3 The developing world’s urban population is still concentrated in small cities, but large cities’ share is increasing
Figure A.1 The urban share of output is typically greater than the urban share of population
Figure A.2 As urbanization accelerates, housing becomes more important to the economy
Figure A.3 The urban shares of the poor population and of the total population are closely aligned
Figure A.4 Poverty will be increasingly urban
Figure A.5 Urban environmental risks change with development
Figure C.1 The demand for urban development projects is increasing
Figure C.2 Urban development lending is recovering as a share of total Bank lending
Figures C.3. a-e A brief slip and then steady recovery in the performance of completed urban development projects
Figure C.4 The performance of the active urban development portfolio based on QAG criteria compares well with the Bank average
Table C.1 Urban development projects by region, May 1999 123 Table D.1 Urban population data by country
Table D.2 Indicators related to city competitiveness
Table D.3 Indicators related to city livability
Table D.4 Indicators related to city governance and management
Table D.5 Indicators related to city bankability
Table D.6 The world’s 30 largest cities: 1950, 1990, and 2015
Box 1.1 Cities are particularly vulnerable in times of crisis
Box A1 Urbanization: A necessary—but not sufficient—condition for sustained economic growth
Box A.2 Rigid land use planning continues to constrain market adjustment of the urban form in Cracow
Box A.3 Large cities see a relative decline in social welfare
Box B.1 Enhancing the quality of life for the urban poor in Indonesia through the Kampung Improvement Program
Box B.2 Scaling up slum upgrading from a pilot to a citywide program in Guatemala City
Box B.3 Private enterprise helps to improve slums in India
Box B.4 Taking a strategic approach to the urban environment
Box B.5 Reforming national housing policies and institutions in Mexico
Box B.6 Promoting private real estate market development in Mali
Box B.7 Bringing a development vision into focus—city strategy formulation in Haiphong, Vietnam
Box B.8 Johannesburg and the World Bank: A city-level comprehensive development framework
Box B.9 Accounting for the local economy in West Africa
Box B.10 Providing timely advice on urban management and finance after apartheid in South Africa
Box B.11 Understanding and addressing municipal corruption
Box B.12 Building better municipalities through finance and technical assistance in Brazil and the Philippines
Box B.13 A nationwide financial framework for municipalities in the Philippines
Box B.14 How IFC aids the financing of private infrastructure concessions at the subsovereign level
Selected References
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