The World Cities Report 2020 shows that the intrinsic value of sustainable urbanization can and should be harnessed for the wellbeing of all. The Report provides evidence and policy analysis of the value of urbanization from an economic, social and environmental perspective, including the unquantifiable value that gives cities their unique character; and also explores the role of innovation and technology, local governments, targeted investments and the effective implementation of the New Urban Agenda in fostering the value of sustainable urbanization.
“Cities have borne the brunt of the pandemic. Urban areas are already home to 55 per cent of the world’s population, and that figure is expected to grow to 68 per cent by 2050. Our rapidly urbanizing world must respond effectively to this pandemic and prepare for future infectious disease outbreaks.”
“The novel coronavirus pandemic triggered the worst public health crisis in a century and we are now living through the worst economic recession since the Great Depression. With over 90 per cent of confirmed cases coming from urban areas, cities remain the epicentres of COVID-19.”
The year 2020 marks a turning point in the global battle for sustainable development, with cities once again at the centre as home to a growing majority of the world’s population. On the one hand, the world is entering the Decade of Action, the ten-year period during which national and local governments, the private sector and civil society must accelerate their efforts to deliver on the promise of the Sustainable Development Goals (SDGs) for accelerating sustainable solutions to the world’s biggest challenges—ranging from poverty and gender-based discrimination to climate change, inequality and closing the finance gap.
After decades of ambivalence from policymakers, urbanization has emerged as a key agenda in international development policy.
The New Urban Agenda places emphasis on effective implementation at the local level and on the role of local governments.
Every region is expected to become more urbanized in the next ten years, although highly urbanized regions are expected to have slower rates of urban growth.
The New Urban Agenda and the 2030 Agenda for Sustainable Development were adopted in times of profound global challenges, many of which have been exacerbated by the coronavirus pandemic
With over 90 per cent of confirmed cases coming from urban areas, cities have borne the brunt of COVID-19.
Policy Points
1. The New Urban Agenda as a means of achieving SDG 11 offers a framework for unlocking the value of urbanization.
2. While countries have made progress in the implementation of the New Urban Agenda and urban dimensions of the SDGs, there are challenges that need to be addressed..
3. Sustainable urbanization has a key role to play in the Decade of Action for accelerating sustainable solutions towards eradicating poverty, reducing inequality, addressing climate change and enhancing gender equality.
4. Sweeping investment in clean technologies such as renewable energy are among the most cost-effective way to boost economies hit by COVID-19 while reducing emissions.
5. COVID-19 provides the opportunity for cities to build back better in the long term and build up resilience against future pandemics.
When well-planned and managed, cities create value, which is the totality of the economic, social, environmental and intangible conditions (institutional, governance, political, cultural and civic perception) outcomes that have the potential to improve quality of life of residents in meaningful and tangible ways.
The value of sustainable urbanization is the totality of a city’s economic, environmental, social and intangible conditions that have the potential to improve the quality of life of residents in meaningful, visible and concrete ways.
Many individuals and population groups in cities around the world are excluded from the benefits of urbanization.
Prioritizing youth employment creates benefits that will have significant impact on the economic value generated by cities.
The environmental value of urbanization improves quality of life, prosperity and wellbeing.
Cultural diversity contributes to the social, economic and environmental value of urbanization through tolerance, integration, and coming together in public spaces.
Policy Points
1. Since urbanization will continue to be the driving force for global growth, this requires effective planning, management and governance to become a truly transformative asset.
2. The economic value of urbanization will provide the basis by which countries can contribute to achieving the SDGs and New Urban Agenda, as well as recovering from the global recession induced by COVID-19.
3. When designed with climate adaptation, mitigation and resiliency, cities can create communities that enhance environmental values like cleaner air, more compact, integrated and walkable cities.
4. Any urbanization process that does not actively address institutionalized obstacles to full representation, recognition and redistribution is inequitable and therefore undermines the value of urbanization.
5. Realizing the social value of sustainable urbanization is not a natural consequence of economic growth, which does not automatically reduce poverty and inequality.
Cities do not merely symbolize the dreams, aspirations and hopes of individuals and communities, they are the primary catalysts or drivers of economic development and prosperity across the world. Urban areas generate enormous economic value as they are the world’s platforms for production, innovation and trade, generating both formal and informal employment.
Well-planned and managed urban growth improves the economy across a range of scales (local, regional and national) through employment creation, contribution to GDP and FDI attraction among others.
Sustainable urbanization is a generator of inclusive prosperity; it allows for economic opportunities for all, including marginalized groups.
The informal economy is the lifeblood of many cities in developing countries. Yet, informal sector enterprises generally fly under the radar of public policy interventions.
The very dense interaction networks of people, which are the factor behind cities’ potential as economic growth accelerators, also carry embedded risks, as evidenced by the COVID-19 pandemic.
Property rights, land use regulations and poor transport systems are limiting the generation of economic value in cities of developing countries.
Policy Points
1. Urban and territorial planning supported by adequate governance structures will enhance the economic value of urbanization.
2. Cities can enhance their productive capacities by reforming legal and regulatory frameworks and adopting measures that provide greater security to workers, particularly those in the informal economy.
3. Adequate measures to facilitate the transition of workers and economic units from the informal to formal economy are fundamental to achieving sustainable and inclusive urban development in developing countries.
4. Any urbanization process that does not actively address institutionalized obstacles to full representation, recognition and redistribution is inequitable and therefore undermines the value of urbanization.
5. Building resilience in the aftermath of COVID-19 is the foundation for managing future pandemic and driving economic growth.
6. Governance, institutional, policy and regulatory frameworks should be aligned to the local realities and should not hinder economic growth.
Current international debates are characterized by urban optimism, as sustainable urbanization is recognized as a transformative force to harness environmental value. The implementation of the 2030 Agenda for Sustainable Development, the New Urban Agenda, the Paris Agreement and the Sendai Framework for Disaster Risk Reduction are embedded in this urban optimism.
Nature-based solutions represent an integrated approach to deliver environmental value across the urban-rural continuum.
While environmental and conservation projects are adding value to the urban environment, some are having unintended impacts particularly on marginalized groups who are being pushed out by the changing conditions for habitation such as the appreciation of property values and rental costs.
Sustainability policies to unlock the environmental value of urbanization depends on the ability of different actors to tailor options to the context in which they operate as well as incorporate the principles of justice.
Despite its ravaging impacts, COVID-19 has shown that a green urban future is possible due to behavioural change; COVID-19-induced lockdowns have resulted in a fall in carbon emissions and short-term improvement in air quality in cities..
While there have been improvements in global coverage of basic services over the past two decades, which have environmental benefits, particularly for slum dwellers, more needs to be done for this population most at risk of being left behind.
Policy Points
1. Harnessing the environmental value of urbanization requires a more participatory approach to planning. An intersectional approach is thus key to understanding the needs and concerns of different groups.
2. Urban greening initiatives enhance the environmental value of urbanization, but adequate measures are needed to ensure that they do not exacerbate inequality and social vulnerability.
3. A green economic recovery from the COVID-19 pandemic involving investment in clean technologies such as renewable energy can yield long-term environmental benefits while reducing emissions.
4. The environmental value of sustainable urbanization cannot be realized without prioritizing the needs of disadvantaged groups..
5. Implementing the 2030 Agenda and the New Urban Agenda is key to enhancing the environmental value of urbanization.
The opportunities offered by cities lend a social value to urbanization. When cities are well-planned and managed, they can lift families out of poverty, liberate women from gender-based discrimination, point to bright futures for children and youth, offer comforts and supports to older persons in their golden years and welcome migrants looking for a better life.
The right to the city, which underpins the social value of urbanization, means that all people, especially vulnerable groups should have equal opportunities and access to urban resources, services and goods.
The value of urbanization is socially inclusive when it enhances gender equality, protects the rights of minority and vulnerable groups and ensures social inclusion.
Many cities around the world are designing and retrofitting their cities to meet the needs and priorities of children.
The COVID-19 pandemic is eroding the social value of urbanization by exacerbating inequality, further marginalizing vulnerable groups and pulling more people into poverty worldwide.
Cultural diversity contributes to the vibrancy, prosperity, inclusiveness, competitiveness, and positive perception of cities.
Policy Points
1. When adequately harnessed, the social value of sustainable urbanization offers pathways to enhancing social inclusion, reducing inequality and ending poverty; thereby, leaving no one and no place behind.
2. If integrated through inclusive policies, migrants will not only ease skill shortages, but will contribute to the social, economic cultural enrichment of their host communities.
3. A system that leaves one no and no place behind and creates equal opportunities for all recognizes that economic growth alone will not reduce inequality and poverty.
4. Sustainable and inclusive cities are the outcome of good governance that encompasses effective leadership; integrated urban and territorial planning; jurisdictional and multilevel coordination; inclusive citizen participation; and adequate financing.
5. To adequately harness the social value of urbanization, authorities must address the threats to more egalitarian cities.
The world is firmly entrenched in the Information Age. Technology continues to reshape economies and societies amidst the fourth industrial revolution, or the exponentially paced disruption caused by the possibilities of billions of people connected by mobile devices, with unprecedented processing power, storage capacity and access to knowledge.
Cities are rapidly deploying technology to address a wide range of urban challenges.
New technologies and innovation provide opportunities for cities to meet the SDGs and generate immense value from the process of urbanization.
The COVID-19 pandemic is accelerating the deployment of innovation and technology in urban areas.
The global demand for smart cities is growing rapidly, from US$622 billion in 2017 to US$1 trillion in 2019; this is expected to reach US$3.48 trillion by 2026..
Problems of digital exclusion in access to the benefits of new technologies persist, potentially deepening inequalities.
Policy Points
1. Cities must work to promote effective policies to protect citizen data and empower citizens to understand how to protect their personal data.
2. Clear, ethical frameworks and institutional arrangements for data collection and data sharing should be put in place.
3. Technology is most effective when coupled with institutional innovation and is not a substitute for improving governance.
4. Results of smart city experiments are mixed and particularly poor when these efforts are technology- rather than peopledriven.
5. Technology cannot displace citizen engagement in community and city affairs.
Local governments are the prime movers of sustainable urbanization. As the unit of government closest to everyday citizens, they are the most attuned to the needs and desires of urban residents. The successful implementation of the global development agendas and effectively unleashing the value of sustainable urbanization thus depends on the democratic, efficient and inclusive functioning of this level of urban governance.
There is a growing movement of local and regional governments advancing the localization of the global agendas to harness the value of sustainable urbanization.
There is global progress on decentralization with local governments increasingly playing a significant role in governance as decentralization processes get implemented across various regions.
Weak institutional environments—the powers, capacities and resources devolved—are hindering local action, and consequently, the realization of the value of urbanization.
Cities are increasingly integrating the SDGs in their policies and strategic plans, which in turn enhances the value of urbanization. Cities are also institutionalizing their engagement with local stakeholders as the basis for more inclusive decision-making.
Cities are increasingly integrating the SDGs in their policies and strategic plans, which in turn enhances the value of urbanization. Cities are also institutionalizing their engagement with local stakeholders as the basis for more inclusive decision-making.
Policy Points
1. Galvanize the forces of localization of the 2030 Agenda and the New Urban Agenda in cities and territories by mainstreaming localization strategies in all plans, programmes and budgets from national to local levels..
2. National governments should strengthen local governments’ involvement in the definition, implementation and monitoring of national urban policies and the SDGs.
3. Countries should create enabling institutional environments for local governments to operate in order effectively unleash the value of sustainable urbanization.
4. Strong multilevel governance frameworks are key to foster vertical and horizontal cooperation between different levels of government and between local governments.
Additionally, strong metropolitan governance
that responds to the realities of economic and social geographies should be enabled.
5. Cities must track the localization of the global agendas to ensure that planning processes at all levels are founded on realistic targets.
Significant investments are required to enhance the economic, environmental, social value of urbanization, including the intangible conditions of cities, all of which are critical for to realizing sustainable urbanization. Just like all aspects of development, sustainable urbanization requires adequate financing. The extent to which cities and countries attract and leverage the public and private investments required to achieve SDG 11 and the New Urban Agenda is key to enhancing the value of sustainable urbanization.
Adequate investment in urban infrastructure including physical assets, human capital, institutions, effective governance structures and innovative technology is central to enhancing the value of sustainable urbanization.
Delivering on the urban dimension of the SDGs will cost US$38 trillion. The financial resources are available globally, but they are not channelled to areas where they are most needed.
The investment needs of cities and countries required to achieve sustainable urbanization vary, and depend on city size, demographic trends, urban configurations, geographic location, the country’s level of economic development and the quality of existing urban assets.
The COVID-19 pandemic has created an uncertain investment climate as only five per cent of public and private sector leaders believe that investments will “increase significantly” following the pandemic.
Local governments still face multiple constraints regarding urban finance. These include insufficient and unpredictable transfers from central government, weak fiscal management, poor revenue generation and legal constraints.
Policy Points
1. Local governments must be empowered to tap their endogenous potential to innovatively increase and diversify own-source revenues, which in the long-run enhances local autonomy and financial sustainability.
2. Policy coherence between global, regional, national and local stakeholders is crucial for meeting urban investment needs to enhance the value of urbanization.
3. A multiplicity of actors and collaborative ventures is required to adequately fund urban infrastructure..
4. Institutions for public investment management should be strengthened to achieve desired outcomes while maintaining quality and efficiency in spending on the city’s physical assets.
5. Urban policies and investments to enhance the value of urbanization should be evidence-based and grounded on realistic targets that can be monitored.
Sustainable urbanization generates economic, environmental, social and intangible value that can be harnessed for the wellbeing of all. This message can and should guide development efforts during the Decade of Action to achieve the SDGs and as the world recovers from the COVID-19 pandemic. Fortunately, there is a road map to sustainable urbanization in the New Urban Agenda, which provides a comprehensive framework for unlocking the value inherent in well-planned, managed and financed cities.
Policy Points
1. There should be a sense of urgency and a long-term commitment to implement the New Urban Agenda as the basis for achieving sustainable urbanization.
2. The effective implementation of the New Urban Agenda through supportive urban governance structures, urban and territorial planning, and effective means of implementation—adequate financing, capacity development, information, technology and innovation— will harness value of sustainable urbanization in all its dimensions.
3. Unlocking the value of sustainable urbanization is a multisectoral and multi-stakeholder endeavour.
4. Collaboration and cooperation across scales is central to enhancing the value of sustainable urbanization.
5. Cities should undertake periodic audits and map their efforts onto the transformative commitments of the New Urban Agenda, SDG 11 and the urban dimensions of the other SDGs.
6. Appropriate institutional frameworks and urban legislation need to be in place to support effective multilevel governance and enhance the value of sustainable urbanization.
7. Participatory data platforms and effective monitoring systems are integral to enhancing the value of sustainable urbanization.
8. Cities need to feature prominently in the stimulus packages and economic recovery plans following the outbreak of COVID-19.
9. Government at all scales will have to implement the New Urban Agenda at least in the short- to medium-term, within the context of the impacts and uncertainty associated with the COVID-19 pandemic.
10. COVID-19 provides cities a unique opportunity to build back better, by focusing on greener, more sustainable business and consumption patterns, digital economies and quality urban spaces.
