Key issues and trends

Rapid urban population growth

In 2008, more than half of the world human population, 3.3 billion people, lived in urban
areas. By 2030, this is expected to balloon to almost 5 billion. Most of this growth will be
in developing countries. The urban population of Africa and Asia is expected to double
between 2000 and 2030 (UNFPA, 2007).

Rise of megacities

Urban centers are increasing in size and number. At the beginning of the last century,
there were only 11 megacities in the world with populations of more than 1 million
each. By 2030, UN predicts that there will be more than 500 cities in the world with
populations of more than 1 million each; more than half of these cities will be in Asia. In
addition, the peri-urban areas in many big cities are rapidly expanding.

High urban poverty level

Asia's poor represent about 70% of the world's poor-nearly one in three Asians is poor.
Almost 25% of Asia's urban population is poor, and the rate is increasing, as there is a
continuous influx of poor people into cities.

Inadequate basic services

Large number of Asian cities cannot adequately provide urban basic services to the
increasing number of urban residents. Less than half of the cities population is covered
by water supply. A number of cities do not have efficient systems of solid waste
collection. Majority of the cities in developing countries do not have sewerage system
connections, and sanitary landfill facilities.

Environmental degradation

With an increasing population density, especially in slums areas, environmental and

health problems are rising. In addition to mitigating air and noise pollution and
controlling wastes, managing the consumption of non-renewable resources have
become more serious concerns.

Key challenges
Sustaining urban areas as engines of growth
Cities are focal points for economic activities, and engines of economic growth. They are
centers of excellence for education, health care, culture, technological innovation,
entrepreneurship, social services, government administration, and communications with
the world. They create opportunities for jobs, employment and livelihood. They are as
well focal points for rural hinterlands to alleviate rural poverty.

Managing urban growth

The rapid rate of urbanization needs to be effectively managed to ensure that the
potential economic and social development arising from urbanization are optimized to
reduce poverty, improve the quality of life and protect the environment.

Bridging supply and demand gap on infrastructure services

There exists an enormous gap between demand for infrastructure services and capacity
to finance urban development. In 2004, conservative estimates suggested about $250
million per year in infrastructure investments would be needed to support urban growth
over the next 25 years.

Strengthening urban management capacity

Capacity of cities to manage urban growth and development, including preparedness to

respond to disasters, needs to be strengthened. Project-based approaches with short
time horizon adopted in some cities are unsustainable and did not effectively address
long-term goals.

Decentralizing urban administration

Many governments have decentralized responsibilities to local governments. This gives

local governments more strategic role in planning and decision-making in urban
development. However, funding may not have always matched with devolved functions.
Decentralization also requires collaboration between the central and local governments.

Responding to globalization

Globalization has thrust cities into new frontiers making it more imperative for cities to
be globally competitive.

Key approaches in addressing urban issues and

challenges
Stakeholder partnerships

Cities partner with private sector, other cities, and organizations to exchange
information, build capacities, expand resources and enhance revenues, and implement
improvements in urban management.

Formulation of city development strategies

Several cities across the region have formulated development strategies based on long-
term visions and an analysis of their strengths, weaknesses, opportunities and threats.
Cities recognized the essential link and complementarity between national development
policies and city development strategies.

Inter-local cooperation

There is a growing appreciation for the linkages between rural and urban areas,
particularly in terms of inter-local cooperation in the face of the emergence of city-
regions or multi-modal metropolitan areas. City-regions are becoming the foci for
integrated urban development, which is blurring the traditional distinction between
"rural" and "urban".

Cities as ecosystems

With the increasing interest in sustainable urban development, cities are now being
viewed as living ecosystems wherein a balance is sought among social, economic and
environmental concerns. Related to these specific approaches to energy efficiency,
disaster mitigation, as well as resource and cultural heritage conservation, are being
developed.

City leaders as economic managers

City leaders have shifted from a purely political orientation to an entrepreneurial and
economic management approach. Some cities have initiated successful experiments in
innovative techniques adapted from the private business sector, such as asset
management.