BMZ Information Brochure 3 | 2014e

Managing Urbanisation –
Towards Sustainable Cities
 The 21st Century can be said to be the century of cities. More than
half the global population already lives in cities – in 2050 it will
most likely be more than two thirds. Cities and metropolitan areas
have meanwhile become the main habitat of the human race.
Cities are the dynamic growth centers of our time, places where the
opportunities and challenges of global sustainable development all
come together.

Cities are places of change and innovation, bringing together dif-

ferent actors and effectively shaping sustainable development. At
the same time, it is becoming more and more difficult to make cities
a good environment to live in. High air pollution, deficiencies in water and energy supply, and in
the disposal of waste and wastewater, chronically congested roads and lack of public transport,
growing social inequality – the list of challenges that cities face just goes on and on.

It is obvious that here we must pin our hopes above all on self-help and ownership, in order to
realize sustainable solutions. The central concern of German development policy in the field of
urban development is, therefore, to mobilize all actors and to set in motion processes which will
lead to the sustainable and inclusive development of cities and urban areas.

On the one hand this is about finding intelligent solutions for the problems of increasing urbani-
zation and making cities into attractive, productive and innovative working and living spaces
for all their residents. That means, in particular, addressing urban poverty and social inequality,
and it means making sustainable use of technological knowledge and of available resources in
the water, energy and food sectors, and facilitating environmentally and climate-friendly urban
development.

On the other hand, it is important to make use of the social, economic and ecological interactions
between urban and rural areas for the sake of sustainable development. The consequences of
urbanization are not only evident in the city – urban development also influences the develop-
ment of rural areas to a large extent and vice versa.

Gerd Müller
Federal Minister for Economic Cooperation and Development
10 reasons for urban development
1. Urbanisation: the world has become a city 4. Partners: cities are strong international actors
More than 50% of the world’s population now lives in cities Reforms such as state modernisation and decentralisation
and that figure is set to rise to 75% by 2050.1 High urbanisa- strengthen the autonomy and performance of urban
tion rates in Asia and Africa 2 reflect the fact that the focus administrations. Because scopes for action are broadening
of global urbanisation has long since shifted to developing and powers are expanding at municipal level, cities are
countries and emerging economies. Twice as many people – increasingly being regarded by international development
2.3 billion – live in urban agglomerations in those countries agencies, banks and private enterprise as autonomous, equal
as live in cities in industrialised nations. In 2030 that actors. Cities are seizing these opportunities to engage in
number will rise to four times as many – 3.9 billion; direct partnerships – including among themselves – to drive
approximately 60% of those will be below the age of 18.3 forward their development. Hence, they are gaining more
And so the future of developing countries is increasingly and more weight in international politics. It is rapidly devel-
being determined by urbanisation and a population struc- oping medium-sized cities in particular that need to build
ture that has a disproportionate number of young people. capacities and infrastructure in this context in order to be
able to meet the new challenges they are facing and the new
Established mega regions like Sao Paulo or Mumbai, as well roles they have taken on.
as small and medium-sized cities will become the key living
and economic spaces in this urban millennium. 5. Climate change and biodiversity: cities are involved in
decisions on global climate targets and have a significant
2. Prosperity: productive cities lay the foundation for impact on ecosystems
economic development Cities are currently responsible for producing 70% of green-
Up to 80% of gross domestic product is generated in cities.4 house gases 5 and share the burden of responsibility for
Since cities provide access to labour and information, private global climate change. They are thus important partners and
initiatives and available infrastructure, mobility and institu- actors in international climate policy and are increasingly
tions, they create a macroeconomic enabling environment leading the way when it comes to energy-efficient infra-
for sustainable economic growth. In a globalised economy, structure planning, for instance. At the same time, on ac-
cities represent hubs where products, services and informa- count of their population density, building stock and
tion can be transferred and made available. Because cities infrastructure, cities are directly exposed to the risks asso-
are the engines driving economic growth, they provide key ciated with climate change, for example typhoons in coastal
impetus for the national and global economy. regions, heat waves and landslides. Extreme weather events
and environmental problems in particular impact on the
3. Successful poverty reduction: international poor population on account of their often precarious hous-
commitments are implemented with cities ing situation. Cities have a key, sometimes negative, impact
Cities hold great potential for contributing in key ways to on ecosystems even beyond their city boundaries. At the
implementing international agreements such as the Millen- same time they are dependent on ecosystem services and
nium Development Goals (MDGs). It is in cities that the rele- functions, for instance safe drinking water. Where ecosys-
vant strategies are developed and where great efficiency and tems are intact it is easier to adapt to climate change; they
impact is achieved through the coordinated use of limited
financial resources. In view of, for example, the MDG Target
1
7.D (“a significant improvement in the lives of at least UN HABITAT: State of the World’s Cities 2010/2011. Nairobi,
United Nations Human Settlements Programme 2007, p. 12
100 million slum dwellers”), it is in cities, more than any- 2
United Nations : World Urbanization Prospects: The 2007 Revision
where else, that people have the potential to get out of pov- Population Database. New York 2008.
erty. Urban poverty and slums are, however, a growing prob- 3
UNFPA State of World Population 2007. Internet: www.unfpa.org/
lem in developing countries that needs to be addressed by swp/2007/english/chapter_2/changing_demographics.html,
means of integrated approaches at local level. Pro-poor pro- 09. Aug. 2011.
4
UNEP: Towards a Green Economy. Pathways to Sustainable Development
grammes in cities provide better and legally protected living
and Poverty Eradication, Cities – Investing in energy and resource
conditions, education and training, jobs and access to social efficiency, p. 457, Nairobi.
services. 5
The Worldwatch Institute: State of the World. Our Urban Future.
New York (W.W. Norton & Company) 2007.
also represent important recreational areas. Urban develop- 8. Governance: good governance becomes tangible
ment thus increasingly needs to take the preservation of bio- in cities
diversity into account in order that important ecosystem Municipal governments take decisions that have a direct
services and functions can be guaranteed in the long term. impact on the lives of city dwellers, ranging from land rights
to choosing where to build schools and health stations. It is
6. Equal opportunities: promoting a socially inclusive city in cities that the state meets its citizens face to face, calling
Urban environments foster personal development in a way on civil society and private enterprise to actively have a say
that for many is linked to the hope of better living con- in political matters, to participate in decision-making pro-
ditions and social mobility. Cities are places where social cesses and monitor services provided by municipal authori-
change takes place, where the young and women are more ties. Civil society, private enterprise and politics therefore
easily able to develop their full potential, given that their contribute to joint responsibility and create an environment
political and social participation and individual scope for in which cities take on more responsibility for democratic
decision-making are often limited on account of traditional consensus.
decision-making mechanisms. Cities come to the fore
because they provide new models of what constitutes a so- 9. Urbanity: cities are innovative catalysts for
cially inclusive city and have special programmes for women development
and youth. Marginal groups in particular are generally Cities provide a creative environment for social, economic,
excluded from formal economic, social and political net- green and political innovations. They enable close and rapid
works and have only limited chances of benefitting from the exchange between all those involved – the precondition for
development opportunities that open up on account of eco- developing viable strategies. This is where the application of
nomic growth in cities. Participation and political empower- local knowledge can be combined with concrete implemen-
ment are thus key factors in an urban society when it comes tation to meet current challenges, for instance resource con-
to enhancing equality of opportunities and social inclusion. sumption. Cities use these synergies to benefit development,
At the same time, citizen-friendly infrastructure develop- they formulate integrated and economically viable solutions,
ment that improves mobility in urban transportation, for and at the same time take steps to overcome the most diverse
instance, facilitates interaction between different social challenges. Cities are thus often forerunners of developments
groups and fosters social cohesion. that later take root at national and international level.

7. Safety: a safe city promotes development and 10. Economic cooperation: demand is growing in cities
democracy There is great demand for the private sector to support cities
Measures for the prevention of urban violence and crime in meeting the challenges arising in regard to modernising
promote social and economic stability. This is especially the infrastructure and administration. Supplying the grow-
evident in those districts in which significant social and eco- ing population and adapting to national and international
nomic imbalances, lack of prospects, and violence and crime standards calls for technical and management solutions
have become firmly entrenched. Private and public invest- ranging from new information and communication techno-
ments in particular steer clear of those districts in which logies (ICTs) to the energy-efficient modernisation of existing
public safety cannot be guaranteed. Safety in cities is a key buildings. The private sector in Germany and its institutions,
concern of development policy when it comes to underpin- chambers of commerce, and industrial and professional asso-
ning the successes of ongoing development efforts to create ciations are available as partners for cities in emerging eco-
socially inclusive cities worth living in and establishing nomies and developing countries and can provide invest-
democratic structures and processes. ments and know-how.
Green Urban Economy
1. Relevance

The green economy model is geared toward making eco-

nomic growth sustainable and demonstrating new con-
sumption patterns. This is relevant for industrialised and
developing/emerging economies alike. The green economy is
about linking – in an action-oriented manner – economic,
social and environmental aspects with a focus on environ-
mentally sound and resource-efficient growth. This model is
of special importance for cities and their surrounding areas,
as almost 55  per cent of the global population now lives in
cities. Two decades from now, there will be about twice as
many city dwellers as today. Currently, some 70  per cent of
all resources are consumed in cities, and cities account for
more than 75  per cent of all CO2  emissions. But cities are
also the backbones of national economies. 80  per cent of
global value added, expressed in monetary terms, is generated
in cities. As urbanisation advances, cities are becoming an
A woman rides a bicycle to work in Myanmar’s second city,
important lever for socially equitable and sustainable growth
Mandalay
based on a green economy.

Cities and local governments offer opportunities for re- Cities can act as important catalysts on the road toward a
source efficiency and synergies. Municipalities with their green and socially inclusive economy. Accordingly, the UNEP
policymakers and administrators are just one player among report Towards a Green Economy states that “cities can and
several when it comes to giving shape to economic and should play a leading role in greening economies – in both
sociocultural arrangements and networks. It is in cities that developed and developing countries”. So the key elements of
cooperation between citizens, government and enterprises is a Green Urban Economy are the following:
translated into practical action. This makes cities the plat-
form for innovation and new answers, and it makes them Inclusive economic growth. Future growth strategies must
initiators of new partnerships. no longer focus on quantitative goals alone. Rather, there
must be qualitative growth that benefits broad sections of
Efforts for sustainable cities are one priority area in the the population. In cities in particular, there is a growing gap
green economy debate with regard to the United Nations between rich and poor, and there are growing groups that do
Conference on Sustainable Development (UNCSD, Rio+20 not enjoy adequate social and economic participation.
summit) and are being discussed in the context of the Sus-
tainable Development Goals (SDGs) as input to the interna- Ecological compatibility. It is essential that economic growth
tional Post-2015 Agenda. It is in cities where local concepts be decoupled from resource consumption and greenhouse
demonstrate the importance of active urban stakeholders for gas emissions. This can be done, for example, by encouraging
effective implementation of a green economy and how much innovation and environmentally sound technologies. Thanks
can be contributed to the realisation of human rights and to their high population density, cities offer opportunities
the provision of public services by e.g. the establishment of for the establishment of efficient infrastructure networks.
effective services and transparent institutions. If a muni-
cipality acts as a model in terms of sustainable procurement, Poverty reduction. Inclusive, ecologically sound growth
it can influence private investment and behaviours. Munici- must be geared toward reducing poverty and giving people
pal incentive mechanisms can encourage local enterprises to opportunities in life. This needs to result in more income
base their production and operations on a green economy opportunities, especially in the low-income sector and in the
model. urban informal sector, and improve access to basic municipal
services for the poor and in informal settlements.
2. The approach adopted by German development — providing finance for climate- and environment-related
cooperation urban infrastructure
— making the green economy concept part of international
The transformation of an economy requires action by public legal instruments
and private entities at various levels. National and local gov- — enhancing the profile of the green urban economy
ernments can facilitate the transition to a green economy by concept in international networks
changing the regulatory environment, acting as models,
providing incentives, and motivating citizens as well as in-
stitutions and enterprises to act in ecologically sound ways. 3. Practical examples

Social inclusion and poverty reduction are fundamental India: Indo-German Environment Partnership Programme
elements of a green urban economy. As part of its develop- (IGEPP)
ment cooperation, Germany supports its partners in provid- India’s rapid industrialisation and urbanisation is accompa-
ing the right legal environment in terms of good governance nied by heavy industrial pollution, high emissions and in-
as well as in formulating and financing answers to key eco- creasing use of natural resources. To manage economic and
logical challenges. The purpose of a green urban economy demographic change towards sustainable development, India
based on cooperation with the private sector, academia and requires appropriate technical solutions in the industrial and
civil society is to avert negative effects of climate change, to urban sectors, developed management capacities at different
prevent misinvestment, and to mitigate environmental dam- government levels as well as innovative inter-institutional
age that has already occurred. Relevant activities include schemes that incorporate especially the private sector. Ger-
efforts to foster energy efficiency, investment in green tech- man development cooperation supports policymakers at na-
nologies and employment, the creation of incentive systems tional, state and local level with institutional consulting
for sustainable production, operation and consumption pat- services and network dialogues to promote innovative solu-
terns, and the establishment of standards. An inclusive and tions for efficient industrial and urban environmental man-
green economy is geared toward reducing both poverty and agement. This strengthens the capability to develop and im-
inequality. plement environmental and climate change policy solutions.
Therefore the project supports overall sustainable growth
Key areas addressed by German development cooperation and enhances the Green Urban Economy approach.
in relation to sustainable municipal and urban development
include good governance, local economic development and Indonesia: Emission Reduction in Cities — Solid Waste
urban environmental management. Working on these issues Management Programme
in an integrated manner facilitates the transition to a green As a result of increasing urbanisation and economic devel-
urban economy from local to global level: opment in Indonesia, greenhouse gas emissions are concen-
trating in densely populated urban areas. According to In-
— making the green economy concept part of international donesian government estimates, the waste sector accounted
legal instruments for about 7.4  per cent of total emissions in 2005, mainly due
— enhancing the profile of the green urban economy to improper waste disposal. In order to help Indonesia to
concept in international networks implement its climate change strategy, the Solid Waste
— putting in place the right environment, creating incentive Management Programme finances emission reduction meas-
systems and financing models as well as promoting the ures in the waste sector in selected Indonesian cities. Under
development of policy instruments and capacity at the Programme, waste management investment measures
national and local level are being prepared and implemented, such as the construc-
— developing action-oriented strategies for cities tion of landfill cells based on modern standards and the
• greening municipal budgets establishment of sorting and composting facilities. In addi-
• giving poor people income opportunities while tion, advice is being provided to the cities to help them im-
simultaneously enhancing environmental and climate prove their entire municipal waste management systems and
protection building the technical, financial and institutional capacity of
• developing innovative strategies for environmentally municipal waste authorities.
sound transport, sanitation, waste management and
services that are responsive to people's needs
• fostering urban environmental and resource management

Further information
→ BMZ (2011): Green Economy
→ ICLEI (2011) Briefing Sheet – Green Urban Economy
→ OECD (2011): Green Growth Strategy
→ UNEP (2011): Towards a Green Economy. Pathways to Sustainable Development and Poverty Eradication
→ World Bank (2012): Inclusive Green Growth: The Pathway to Sustainable Development
Cities and climate change
1. Relevance

It is in cities that the causes and effects of climate change

and the actors responsible for effective climate policy and
innovative solutions converge. Particular attention is focused
on municipalities, since they are an important partner of
German development cooperation when it comes to provid-
ing and adapting public services and infrastructures at local
level and representing local interests at international level.
Given their ability to respond to the needs of citizens,
companies and political decision-makers, cities are in a
position to establish the effective political and organisational
structures needed to adapt to climate change.
Cities in coastal regions are most severely affected by flooding.
The consequences of climate change will impact broadly on
urban ways of life. Cities in coastal regions will be most change. This is due to weak administrative structures and
severely affected by flooding. Fifteen of the world’s 20 mega- the lack of practical experience as well as tight local author-
cities 1 are situated in low-lying coastal regions; approxi- ity budgets. The loss of biodiversity as a result of climate
mately 600 million people currently live in these regions. In change and overexploitation also has far-reaching conse-
future, adapting to climate change will be a key task in quences for people living in cities, because it leads to the dis-
coastal regions in Africa and Asia. appearance of important ecosystem ser vices and functions,
such as climate regulation.
The rise in greenhouse gas emissions is regarded as one of
the key causes of global warming. Most emissions originate
in those areas in which production and resource consump- 2. The approach adopted by German development
tion are concentrated. Cities are accelerating climate change cooperation
on account of the high density of greenhouse gases emitted
in the industrial, transportation, housing and waste sectors. Creating synergies between urban sectors and boosting
Although cities cover only 0.4% of the world’s surface area, performance of urban actors: Sustainable urban develop-
they are currently emitting some 70% of greenhouse gas ment combines an efficient resource policy with strengthen-
emissions.2 As a result of urban growth, cities will be respon- ing the resilience of the urban population, urban infrastruc-
sible for 76% of emissions by 2030.3 ture and local economic cycles. Municipal administrations
play a key role in the development and implementation of
The consequences of climate change are particularly effective climate adaptation measures. Therefore, Germany,
evident in cities in developing countries: While cities in the through its development cooperation programme, supports
OECD countries are contributing significantly to climate efforts to strengthen the management and steering capaci-
change due to their overall emissions, it is poor settlements ties of local administrations. An integrated approach makes
in developing countries in particular that are feeling the ef- use of synergies between the sectors and supports both gov-
fects of that climate change. The majority of the world’s ernmental and civil society actors in their coordination and
poor live in risk areas, on landslide-prone slopes or in river cooperation. That includes climate protection strategies,
basin regions, which are most likely to be affected by ex- qualification measures for the staff of municipal administra-
treme weather events. Precarious housing and living condi-
tions, low incomes, often inadequate public services, social
1
protection systems and infrastructure, and a high population World Bank (2010). World Development Report. Washington, World Bank,
p. 91
density increase the population’s vulnerability. At the same 2
The Worldwatch Institute (2007). State of the World. Our Urban Future.
time, public administrations in developing countries, espe- New York, W.W. Norton & Company
cially at the local and municipal levels, are frequently unable 3
IEA (2008). World Energy Outlook. Paris, International Energy Agency,
to cope effectively with the negative consequences of climate p. 12
tions, institutional development and providing reduced- 3. Practical examples
interest loans that enable adapted urban planning, building
and infrastructure planning, as well as sustainable environ- The Cities Development Initiative for Asia (CDIA) was
mental management in the water and wastewater, energy, founded in 2007, since when it has been addressing the
transport and waste removal sectors. Compared to technical special infrastructural and ecological challenges faced by
adaptation, ecosystem-based adaptation often provides more rapidly expanding medium-sized cities in Asia. This regional
affordable and efficient means of reducing the impact of multi-donor initiative was established by the German
climate change. In addition, intact ecosystems provide func- government (BMZ) and the Asian Development Bank. The
tions such as water, food, protection against climate governments of Sweden, Austria and Shanghai Municipal
extremes and recreation, which in turn benefit the local Government are also contributing to the CDIA. This regional
population. programme supports sustainable and pro-poor urban devel-
opment and improved environmental and living conditions
Supporting pro-poor climate adaptation at the local level: for the population by developing resource-efficient and
With its development cooperation, Germany aims to support socially responsible infrastructure measures and preparing
local authorities and citizens in the development and local them for future financing. Among other things, the projects
implementation of measures that strengthen resilience, prepared by the CDIA address the expansion of local public
especially that of the poor urban population. It is mainly in transport systems, waste disposal (with potential for meth-
developing countries that the majority of urban residents ane storage), improved energy efficiency in buildings, and
lives in informal settlements which exist outside the scope adaptation measures in the field of flood protection and
of the planning and services provided by public institutions. drainage. As well as preparing urban investment projects,
Risk and vulnerability assessments as well as early warning the initiative supports the improvement of local institutional
systems are therefore designed to pay attention to this frameworks through capacity development.
circumstance and sufficiently take into account the living → www.cdia.asia
conditions of the urban poor. The effective involvement in
particular of the poor and marginalised helps to ensure that Saving energy and costs, securing an adequate energy supply
adaptation measures can meet the particular challenges they and establishing effective climate protection measures in the
face, and that the tight budget resources are utilised in building sector are the main goals of Ukraine’s national
accordance with requirements. energy policy. The Ukrainian-German project “Effective
climate protection measures in the building sector” focuses
Involving all political and administrative levels: Through on urgently needed improvements to the legal, institutional
its development cooperation, Germany supports green muni- and financial framework for an effective national energy
cipal and urban development policies at international, saving policy in the building sector. The project advises the
national and local level. Standards regarding the implemen- Ministry for Housing and Communal Services and the Min-
tation of municipal climate protection policies are developed istry for Regional Development and Building in elaborating
together with international partners such as the Cities Alliance, draft legislation and in developing funding programmes and
the World Bank, UN-HABITAT, UNEP and ICLEI. At national incentive mechanisms. At municipal level the focus is on
level partner countries receive support in formulating and introducing an energy management system in four pilot
implementing integrated adaptation and emissions-reduction cities. Energy managers have already undergone training,
strategies that are coordinated at national, regional and local energy plans for existing buildings have been developed,
levels and become effective at international level. Establish- data and monitoring systems established, and preparations
ing municipal climate partnerships has an important role to have been made for the exemplary energy-efficient moderni-
play in that, thus ensuring that internationally agreed sation of buildings.
climate protection targets can be achieved. → www.eeib.org.ua

Further information
→ BMZ (2007): Climate Change and Development. Setting Development Policy Priorities, Bonn: Federal Ministry for Economic Cooperation
and Development (BMZ).
Cities and safety
1. Relevance

As a result of the worldwide urbanisation process cities are

developing into centres of social and technological inno-
vation. They are becoming the engine driving national and
global economic development. At the same time, social
inequalities, a lack of economic prospects, the exclusion of
disadvantaged population groups, threats and risks also
clearly manifest themselves in cities. Such inequalities can
engender violence and crime, which in turn has conse-
quences for individual, social and overall urban develop-
ment.
According to UN estimates, 70 per cent of all urban dwellers in
Private and public investments steer clear of high-risk Africa have been victims of crime at least once within the space of
five years.
districts in which public safety cannot be guaranteed. This
has a direct, negative impact on the population’s quality of
life and on socioeconomic stability within the community. pense of democratic negotiation processes and the legitimacy
Ultimately, the success of ongoing development efforts in of the state. It is especially in fragile environments in which
cities is jeopardised due to a perceived lack of security and there are only weak governmental institutions that preven-
the actual danger of encountering violence and crime. tive consultancy approaches are both necessary at local level
and contribute to social and political stability and municipal
Violence and crime have a considerable negative impact on and national level.
urban areas. According to UN estimates, 60% of the total
urban population in developing countries have been victims
of crime at least once within the space of five years. In Latin 2. The approach adopted by German development
America and Africa, that number rises to 70% of all urban cooperation
dwellers, especially in poor areas.1 It is the weakest in society
who are remorselessly affected by material loss. Young An integrated preventative strategy: The BMZ supports
people between the ages of 15 and 24 are the most frequent partner institutions in the conflict-sensitive negotiation and
victims of violence. 2 Armed violence is most prevalent in implementation of joint solutions to creating socially inclu-
sub-Saharan Africa and Central and Southern America.3 sive and safe cities. German development cooperation pur-
sues an integrated preventative approach that focuses on
Preventing urban violence and crime promotes economic spatial, institutional and target group-specific aspects. A safe
integration: Incorporating measures to prevent violence and living environment can only be created if the social, institu-
crime is a key element of German development cooperation tional and spatial dimensions are incorporated into urban
when it comes to the sustainability of urban and municipal development and these become mainstreamed in national
development projects. One particular focus of these projects policies and local thinking.
is on protecting especially weak and marginalised social
groups, such as women, children and youth, against assault, The approach to spatial intervention aims to take account of
including sexualised violence, on giving them room to standards for shaping a safe physical environment in the
develop and prospects for the future, thus enabling them to
benefit from the economic development potentials inherent
1
in urban society. UN-HABITAT (2007). Enhancing Urban Safety and Security: Global
Report on Human Settlements 2007, Nairobi: United Nations Human
Settlements Programme, p. 55
Preventing violence and crime strengthens local democracy 2
UNFPA (2007). State of World Population 2007. Unleashing the Potential
and the legitimacy of the state: The more poor population of Urban Growth, New York: United Nations Population Fund, p. 26
groups are exposed to the risk of violence and crime, the 3
UNDOC (2008). Global Burden of Armed Violence. Geneva, Geneva
more political violence can become entrenched at the ex- Declaration Secretariat, p. 4
planning and modernisation of settlement, community and 3. Practical examples
commercial areas. Measures such as street lighting or plan-
ning open public spaces have a concrete impact on the risk The project “Violence Prevention through Urban Upgrad-
of violence and crime. “Violence-free spaces” are thus ing” in Khayelitsha (Cape Town), South Africa is one exam-
created, enabling the population to go about their everyday ple of how various preventative approaches can be success-
business without fear. fully integrated. German development cooperation, Cape
Town City Council, the South African Ministry of Finance
At the same time, German development cooperation works and the Khayelitsha Development Fund (KDF) are funding
in the social dimension to promote social cohesion and the the project. Creating what are known as safe node areas plus
ability of citizens, especially women and youth, to work a bundle of measures such as street lighting, voluntary
together to overcome the problems of violence and crime. neighbourhood watch patrols and courses on conflict resolu-
Project approaches that address youth violence and crime tion strategies have noticeably reduced the crime rate in the
among other things develop participative and job-promoting township. Initiatives organised by the local population that
measures as well as cultural and sports incentives in coop- the project is supporting have helped boost ownership. The
eration with actors from municipal administration, the relationship between the population and municipal adminis-
police, civil society, providers of social services and neigh- tration has improved significantly. In May 2010 Khayelitsha
bourhood organisations. In addition, trust in formal and won the Impumelelo Award, the country’s sustainability
informal institutions is strengthened, measures are taken to prize, in honour of that success.
stop youth being stigmatised and alternatives found to crim- → www.vpuu.org.za
inal offences and careers. Information campaigns and advi-
sory services that are planned with the involvement of civil Establishing trust in a well-functioning state based on the
society initiatives and are implemented through community rule of law and in peaceful conflict-resolution strategies is a
policy, for example, are to be used to stem violence against huge challenge in Colombia. A broad partnership for conflict-
women and girls. prevention measures at local, regional and national level are
needed to meet that challenge. The project “Peace-Building
Expanding access to municipal services: At-risk groups such by Promoting Cooperation between Government and Civil
as slum dwellers must be able to better articulate and call in Society” (CERCAPAZ) that is being implemented in Colombia
their rights. For that to happen it is essential that they have on behalf of the BMZ provides the recipe for that to succeed.
better access to public services, basic social ser vices, political Peace, women’s and youth organisations, local authorities,
participation and jobs on the formal labour market. Their private enterprise and ministries organise training measures
personal safety increases as a result. Measures to prevent on non-violent conflict transformation. They launch initia-
urban violence and crime prove to be effective where they tives to promote reconciliation, equal opportunities and inte-
reduce extreme social differences and strengthen cohesion gration among those population groups that are at risk of and
among urban societies. This reduces the causes of conflict, affected by conflict. The Initiative for Peace Football, El
eliminates long-established tension between population GOLOMBIAO, illustrates how sport can build bridges. This
groups and supports governance at local level and beyond. variation on the game of football has its very own rules: The
first goal has to be scored by a girl and extra points are
awarded for fair play. Some 60,000 boys and girls in 85 com-
munities now play football according to the GOLOMBIAO
rules. Where GOLOMBIAO has become established, the in-
fluence of violent youth gangs has receded.
→ www.cercapaz.org

Further information
→ BMZ (2010). Urban (In)Security. Joint Networking Event of German Development Cooperation. UN-HABITAT World Urban Forum 5,
22–26 March 2010, Rio de Janeiro, Brazil. Eschborn, Federal Ministry for Economic Cooperation and Development.
→ www.bmz.de/en/what_we_do/issues/Peace/index.html
→ www.bmz.de/en/what_we_do/issues/HumanRights/kinderrechte/index.html
Cities and good governance
1. Relevance

Cities represent the lowest political-administrative tier of

government and are therefore very important when it comes
to guaranteeing public services. They bundle local, national
and global challenges because it is in cities that the answers
to overarching questions such as climate change, social
equality, respecting and safeguarding human rights, and
political and economic stability need to be found.

But municipal authorities in developing countries are

frequently under-funded and under-staffed and are thus
unable adequately to fulfil the tasks required of them, such
as providing public services. Reliable and continuous water
and electricity supplies, wastewater and waste disposal
systems, the maintenance and modernisation of buildings
and infrastructure are often not a given. It is especially poor
and socially disadvantaged urban dwellers that suffer, be-
cause slums and informal settlements are cut off from many
municipal services. Equal access to those services, especially
for poor population groups, women, migrants or people with
City dwellers contribute their knowledge to the planning process
disabilities, is thus a core concern when it comes to reducing and take on local responsibility for sustainable development.
the spatial, social and economic gap in cities.

Cities also offer people the chance to experience good gov- ner. Democratic good governance is thereby strengthened
ernance: Numerous actors influence a city’s development. and public administration can more effectively provide its
New forms of monitoring need to be found in order to services to citizens. Government action thus gains credibility
promote cooperation between these different actors in the and legitimacy in the eyes of the population.
urban space and to put the focus on the role of citizens both
as owners in innovation and decision-making processes, and
as users of municipal services. In practice, that means dia- 2. The approach adopted by German development
logue and cooperation between political and administrative cooperation
decision-makers, private sector representatives and civil
society. Special attention must be paid in this process to in- From the point of view of German development cooperation,
corporating representatives of poor and marginalised urban promoting good governance means supporting partner
population groups in particular. This cooperation in a spirit countries in creating a reliable enabling environment for
of partnership is to be used to create an environment in social and ecological development based on a market econ-
which cities take on their responsibility for democracy, omy and strengthening governments in the responsible exer-
integration, sustainability and a broad range of inclusive cise of political power and public resources so as actively to
municipal services. The goal is to improve the urban living prevent and combat corruption. Governmental actors and
conditions of all city dwellers and to expand their opportu- institutions are to be put in a position where they can shape
nities for development. their policies based on pro-poor and sustainable principles.

The decisions taken by local governments are made more In terms of urban development that means promoting struc-
transparent and more binding when, among other things, tural municipal reforms towards decentralisation and local
they adopt a participative approach that responds to citizens’ self-government, i.e. advising partners on urban organisation
needs. As a result, the living conditions of the poor urban development, on reforming local politics and administration,
population can be improved in a targeted and effective man- or in regard to municipal financial management.
Germany has extensive experience of supporting local and the population pressure across cities is becoming an increas-
national governments in regard to political and fiscal ingly urgent issue. There are enormous tasks to be overcome.
decentralisation. Good governance skills are trained at Slums are also growing in all cities across the county due to
municipal level; the focus at national level is on elaborating the constant out-migration of, in particular, poor population
a joint decentralisation strategy and urban policy. This groups from rural regions. In the context of a centralistic
multi-level approach means that experience at national level government structure the city administrations are often not
can be adapted to local needs. Germany supports good in a position to provide even the most basic of services. Mis-
governance in cities by providing technical advisory services management, often on account of inadequately qualified
and financial support to improve municipal administration staff, has serious consequences, especially for the poorest
and empower citizens, as well as to expand public and civic urban dwellers. There is a lack of sanitary facilities, waste
commitment to strengthen civil society. Funding urban management and sufficient housing.
infrastructure that is adapted to local needs enables cities to
provide better services to their citizens based on transparent Through its project “Good Governance in the Urban
terms and conditions and tariffs. Targeted measures promote Region” German development cooperation is supporting
better physical and financial access for poor population advisory and training measures for competent local and
groups. national administrations in small and medium-sized cities.
The aim is to provide the urban population in Bangladesh
New challenges result from these ongoing urbanisation pro- with a demand-based range of services and to improve the
cesses; research is being carried out into the emergence of living conditions of the poor urban population.
mega regions and urban corridors. The results are analysed
so that they can be incorporated into good governance Approaches include holding a public debate on municipal
strategies for these new urban areas. strategies and making sure, through suitable measures, that
municipal administrations are held accountable for their
actions. Together with our partners we are developing a
3. Practical examples range of training courses for municipal administrations that
will continue to be used by local decision-makers even after
Dhaka, the capital of Bangladesh, is the world’s most rapidly the project has come to an end.
expanding city. In 1950 it had a population of 500,000; today
it is home to some 12 million people.1 However, the urbani-
sation process in this metropolis continues to be dispropor- 1
Bangladesh Ministry of Planning: Sixth Five-Year Plan FY 2011 –
tionate. Strengthening the regions and evenly distributing FY 2015, 2010.

Further information
→ www.kfw-entwicklungsbank.de/International-financing/KfW-Entwicklungsbank/Sectors/Governance/
→ www.giz.de/en/ourservices/governance_and_democracy.html
→ Federal Ministry for Economic Cooperation and Development: Promotion of Good Governance in German Development Policy. Bonn
2009, www.bmz.de/en/publications/type_of_publication/strategies/konzept178.pdf
Municipal financing and urban development
1. Relevance

Around the world cities are facing increasing pressure to in-

vest due to population growth and urbanisation. A growing
number of urban dwellers need water, energy and transport
facilities. Wastewater, solid waste and greenhouse gases need
to be reduced or disposed of in a way that does not impact
negatively on the environment. Without investment in the
necessary infrastructure and the development of appropriate
management capacities, cities will become unmanageable and
will no longer be competitive. At the same time businesses are
increasingly making investment decisions based on whether a
location can offer reliable infrastructure and services, a decent
living environment and functioning administration. Financial department of the City Administration of Biratnagar,
Nepal
The financial power of cities is a driver for national devel­
opment: Cities are generally municipal entities and thus part — Cities’ financial autonomy is often limited. On the one
of the state system under which the task of providing needs- hand, a large percentage of central government alloca-
based services is spread out over various levels of admin- tions are tied to a specific purpose. On the other hand,
istration, with public funds being allocated accordingly. decision-making powers pertaining to the tax base and
Cities must use their revenues to carry out communal tasks tax rates lie with a higher level of government or even at
(apart from basic services, also economic promotion, health the central government level, so that cities do not have
care, schools and cultural facilities), to cover recurrent costs the autonomy to adjust revenues as costs grow.
(personnel, operation and maintenance of municipal assets) — Tariffs and fees for municipal services are often not high
and to plan and finance investments. A city’s financial enough to cover operating costs. On the one hand because
power always has an impact on the services and infrastruc- decisions about legislation (degree of cost covering) are
ture the city can offer for the surrounding area and on made at a higher level. On the other hand because
national development. establishing charges at levels which cover costs is either
not socially acceptable or not politically or socially
Cities in Germany’s development cooperation partner coun- enforceable.
tries face a range of challenges in this connection: — Many cities do not have the staff or institutional capaci-
— Cities have an income base that is in principle too low, ties to collect taxes and fees (low collection efficiency) or
with urban budgets being too small measured against the to make efficient, responsive use of the revenues col-
tasks to be fulfilled and compared with the income avail- lected. Budgets are generally planned without popular
able at higher levels of government (central government, participation, in many cases in ways that are not trans-
provincial or state governments). parent, or disregarding the needs of the people totally.
— In most developing countries, cities’ revenues mainly — Effective monitoring, sanction and incentive mechanisms
consist of allocations from the central government. These so as to guarantee that local authorities use the funds
allocations are often unreliable, lacking in transparency available responsibly have often yet to be established. In
and inadequate; the systems for the provision of public many places the reality is lack of transparency, corruption
funds do not work efficiently or the scarce public re- and low levels of accountability.
sources are inadequate to meet the needs at all levels of — In many countries the economic and legislative prerequi-
government and administration. This poses a problem for sites for alternative financing options (loans, access to the
muni cipal planning security and hampers the readiness capital markets via bonds) are not in place, or the lack of
to invest. In many partner countries, following in the legal and planning security makes such procedures very
wake of decentralisation efforts, the task of providing difficult. This also holds true for PPPs (Public-Private
public ser v ices is being transferred to the local level, yet Partnerships), which are, moreover, not always a suitable
frequently without the necessary financial basis being cre- or politically acceptable option.
ated (asymmetrical decentralisation or lack of connectivity).
2. The approach adopted by German development the local level. In addition to that, development cooperation
cooperation provides funds to finance municipal infrastructure (e.g.
water and energy supplies, wastewater and solid waste dis-
Taking fiscal decentralisation as a starting point, German posal, health and education facilities), and offers training for
development cooperation supports change in the way the organisation and operation of new facilities. A variety of
financing is handled between the different levels of govern- financing instruments are available for this. The most fre-
ment. The objective is to improve the institutional, technical quently used is project or programme financing via loans
and staffing situation in cities, to strengthen their capacity and grants to the central government. Where effective fiscal
for self-government and to optimise the interaction between transfer systems are in place, funding can be provided via
the institutions concerned. Advice and support for trans­ central budgets or municipal investment funds. Performance
parent and effective financial relations between the state, criteria are then used to determine the allocation of re-
cities and citizens are provided in parallel at the various sources. In countries with a strong finance sector, credit lines
levels: can be provided for municipal projects via local banks or
financial institutions. Care is taken to ensure that the local
At the national level German development cooperation pro- authorities are actually able to repay the loans they receive.
motes the shaping of the institutional and legal framework → www.giz.de/expertise.html/3173.html
for a balanced system of fiscal relations across levels of gov-
ernment. This includes developing predictable, sufficient and
needs-oriented transfer mechanisms, allowing sub-national 3. Practical examples
entities to make fiscal decisions and raise their own revenue,
developing national procedures and standards for municipal The municipal authorities in Nepal practise single-entry
financial management, and introducing monitoring systems. bookkeeping. With this system it is not possible to draw up a
final balance or to determine a town’s assets and liabilities.
At the regional level development cooperation is used, for ex- In Nepal the GIZ is supporting the development and intro-
ample, to promote and strengthen the supervisory and sup- duction of a modern, double-entry system of bookkeeping in
port functions of regional governments, and the cooperation line with international standards, but at the same time tak-
between regional and municipal governments, with a view ing account of local needs and practices. The system is im-
to better coordination of spending planning and funding. In proving the management of accounts, allowing the cities to
future, support through development cooperation will also make reliable statements about their financial situation and
be provided with regard to joint investment planning by undertake realistic financial planning. This increases plan-
neighbouring cities and their surrounding areas (in so-called ning security and fosters transparency for local citizens.
metropolitan regions).
Furthermore, with the GIZ’s support, a system has been
At the local level development cooperation supports the introduced for performance-based financial allocations for
efforts of cities to improve their financial management, and cities, advice has been provided for adapting the system of
to raise funds effectively, efficiently and transparently, and internal financial transfers to the future federal system,
use them in accordance with local needs. Better budget plan- and revenues at the local level have been strengthened.
ning, modern accounting systems and the introduction of
citizen participation and accountability mechanisms are In addition, KfW is financing, via an urban development
made possible through advice and training. Moreover, devel- fund, loans for income-generating projects (bus stations,
opment cooperation is used to help cities strengthen their markets) and grants for social projects (e.g. health stations).
role within the fiscal relations across levels of government → www.giz.de/en/html/worldwide.html
and have a stronger say in negotiations for elevated funds at

Further information
→ KfW (2008): Financing Urban Infrastructure. Innovative Financial Instruments for Cities
→ CEPAL/ECLAC (2011): Macroeconomic challenges of fiscal decentralization in Latin America in the aftermath
of the global financial crisis; www.eclac.cl/de/publicaciones/xml/7/43627/MD_112_Ter-Minassian.pdf
→ The World Bank (2005): Local Financing for Sub-Sovereign Infrastructure in Developing Countries
→ UN-Habitat (2008): Municipal Financing and Urban Development
→ UN-Habitat (2009): Guide to Municipal Finance
→ Liebig, Klaus/Mandana Bahrinipour/Laura Fuesers/Benjamin Knödler/Christian Schönhofen/Mareike Stein (2008): Municipal borrowing for
infrastructure service delivery in South Africa – a critical review, Deutsches Institut für Entwicklungspolitik, Studies 34
→ Commonwealth Local Government Forum (2011): Municipal Finance for Inclusive Development: Innovative models for funding infrastructure
and services for state and local self-governments
Cities and poverty
1. Relevance

The rapid growth of cities means that not only will the
majority of the world’s population in the future be living in
cities, but poverty will also increasingly be focused in urban
areas. The Agenda 21, a guidance paper on sustainable devel-
opment adopted at international level in 1992, identified cit-
ies as important localities and actors when it comes to
achieving the Millennium Development Goals (MDGs). Cities
have a special role to play as actors in inclusive development
processes. In addition, cities are attracting more and more
people because they offer the prospect of better living con-
ditions. The high population density in cities means that
education initiatives, employment promotion and access to
infrastructure, basic services and accommodation can be Local  business opportunities through municipal cobblestone roads
targeted at the urban poor. The coordinated use of funding in Ethiopia
efficiently and effectively contributes to achieving the
MDGs, in particular MDG 7(D) (on achieving a significant urban poverty. Climate change poses an additional challenge:
improvement in the lives of at least 100 million slum dwell- Poor population groups are at particular economic and social
ers). Although this global development goal lays a key foun- risk because they often live in vulnerable areas and cannot
dation when it comes to combating urban poverty, it does protect themselves sufficiently against short- and long-term
not go far enough. It is true that the lives of more than 200 environmental changes.
million slum dwellers had been improved by 2010, but glo-
bally the number of people living in slums rose to 863 mil-
Qualitative poverty leads to social conflicts: The qualitative
lion. In absolute numbers, the slum population is likely to
extent of urban poverty is often underestimated. The com-
reach two billion by 2030. In some regions and cities the
monly applied definition of poverty primarily focuses on the
share of poor people in the urban population will also
traditional income level of 1.25 US dollars a day and thus
increase. And so there is an urgent need for further action,
frequently ignores the fact that the cost of living in cities is
despite successes having already been achieved.
significantly higher than in rural regions: Urban populations
need to purchase food and water, and have to pay for accom-
Poverty is multidimensional: Poverty not only means
modation and transportation to their place of work, which
having little income, but also marginalisation and social
can be quite some distance from home. Poor urban house-
exclusion, which manifest in fewer prospects and a lack of
holds usually not only have lower, but also irregular incomes;
opportunities to participate in political, economic and socio-
they lack access to clean water and sanitation. In addition,
cultural life. Poor population groups are particularly vulner-
they are exposed to other social and political uncertainties:
able to risks, disregard for their human dignity and rights,
Municipal authorities often do not regard slum dwellers as
and lack of access to resources.1 Since decision-makers in
citizens with rights, and they are often labelled “squatters”
municipal authorities and public utilities are often inade-
or “illegal persons” and passed over or are evicted. They are
quately equipped to face the challenges posed by increasing
generally excluded from political decision-making and plan-
urban poverty, urban growth frequently leads to a growth in
ning processes.
informal settlements and slums. Although cities will not
alone be able to eliminate urban poverty, local self-govern-
ment has a key role to play when it comes to elaborating Further, extremely cramped housing, which is often only
local strategies for action because they are closer to citizens. makeshift and offers only insufficient protection, has a
Municipal authorities have the potentials needed to combat particularly significant impact on all life circumstances.

Extreme social and economic differences compared to the liv-

1
BMZ Programme of Action 2015 ing standards of other city dwellers are jointly responsible for
social tensions and urban violence. Nevertheless, cities also The German Federal Ministry for Economic Cooperation and
offer opportunities for an effective social dialogue, the chance Development (BMZ) is involved in two international initia-
to shape economic growth in a more socially responsible way, tives to combat urban poverty. The global Cities Alliance
and thus to effectively mitigate social conflicts. initiative was established in 1999 with the aim of improving
the living conditions of the urban poor by developing and
implementing urban development and slum upgrading strat-
2. The approach adopted by German development egies. The Cities Development Initiative for Asia (CDIA) was
cooperation founded in 2007 in cooperation with the Asian Development
Bank and supports municipal authorities in implementing
German development cooperation aims, in cooperation with urban development strategies in concrete infrastructure
its partners, to promote and implement sustainable and projects that also benefit the urban poor.
inclusive urban development strategies and measures, which
lay the foundations for inclusive economic growth and im-
proving the living standards of the urban population. 3. Practical examples
German development cooperation applies a multidimen-
sional definition of poverty that comprises economic, politi- Germany contributes to improving living conditions in
cal, socioeconomic, cultural and safety-relevant aspects. various cities in Ethiopia. Since 2005, the “Urban Govern-
ance and Decentralisation Programme” (UGDP) has been
German development cooperation works with state and non- carried out in close cooperation with the Ethiopian Ministry
state actors at all levels and with the relevant target groups of Urban Development and Construction to advise various
to contribute to effectively reducing urban poverty. The regional and urban administrations.
capacities and capabilities of urban administrations are
strengthened. In addition, civil society groups receive sup- The programme is making a significant contribution to
port in planning and implementing urban development efficient local administrative and planning procedures that
measures that appropriately articulate the interests of the are responsive to citizens’ needs, to the demand-oriented
poor population. The focus here is on broad-based access to supply of services and to poverty alleviation. Germany’s
public goods and services. Measures aimed at poor popula- commitment in this area has meant that citizens’ access to
tion groups include promoting self-help and organisation in and satisfaction with local government services, health care,
order to empower them and to achieve social justice, and education and income opportunities have improved.
democratic and economic participation. Municipal authorities are now able to design local, labour-
intensive infrastructure projects and have thus created more
Germany is making concrete contributions to combating than 100,000 jobs mainly for the urban poor. UGDP has
urban poverty by promoting participative urban develop- strengthened the development of the cobblestone sector,
ment planning and social housing, the legalisation and rede- which is of high importance for employment creation, en-
velopment of poor settlements, and improving city-wide, hanced mobility, increasing land value, and investments in
demand-oriented infrastructure services (e.g. in the fields of small and medium-sized enterprises along cobblestone paved
sanitation, water, waste and transport). This is coordinated roads. Furthermore, methods adapted to local conditions for
with socio-political measures such as promoting youth and the effective participation of all urban citizens in infrastruc-
employment (e.g. providing microcredits, advising small ture and financial planning processes and the prioritisation
businesses and urban employment programmes) and, where of urban development measures are tested and institutional-
necessary, also by means of conflict prevention measures. ised by municipal authorities and citizens. UGDP moreover
Further, local government development funds receive finan- has facilitated the establishment of save-and-credit groups in
cial support and advice in various partner countries when it eight cities, offered technical support for drafting and apply-
comes to establishing and expanding a socially inclusive and ing a pro-poor performance measurement system and facili-
income-generating infrastructure. tated the formation of umbrella groups at city, regional and
federal level to allow easier access to the financial market for
low income groups.

Further information
→ Göran Tannerfeldt, Per Ljung (2006): More Urban, Less Poor. → www.cdia.asia (Cities Development Initiative for Asia)
An Introduction to Urban Development and Management, London → www.citiesalliance.org (Cities Alliance)
→ GTZ (2006): Reducing Urban Poverty. Lessons Learnt from Technical → www.sdinet.org (Slum Dwellers International)
Cooperation Projects, Eschborn → www.achr.net (Asian Coalition for Housing Rights)
→ UN Habitat (2010): State of the World’s Cities 2010/2011. Bridging the → www.habitants.org (International Alliance of Inhabitants)
Urban Divide, Nairobi → www.kfw-entwicklungsbank.de/International-financing/KfW-
→ GIZ Ethiopia (2013): Poverty-oriented Urban Development, Addis Ababa Entwicklungsbank/Sectors/Stadtentwicklung/
Cities and human rights
1. Relevance

Human rights establish an individual’s claims vis-à-vis the

state on all political and administrative levels. Access to ba-
sic services such as water, health care and education at mu-
nicipal level, for instance, contribute to the concrete realisa-
tion of human rights. The municipal level, in the guise of lo-
cal government, administration and public utilities, thus
makes a contribution, within its mandate, to human rights
being respected, protected and guaranteed.

Cities are sub-national governing bodies of the state, and as

such are responsible, among other things, for ensuring that
A street in Cairo’s City of the Dead
— individuals are protected against state interference (duty to
respect),
— human rights violations by third parties are prevented countries those migrating to cities are unable to find
(duty to protect), and adequate housing other than in informal settlements and
— measures of a legislative, administrative or financial nature precarious accommodation (“slums”). Informal settlements
are taken to realise human rights in practice (duty to guar- generally embody a human rights problem on account of the
antee). political, economic and social marginalisation of disadvan-
taged population groups. Protecting citizens against all
For human rights to be respected, protected and guaranteed forms of discrimination is part of the duty to protect human
in and by cities, the political and administrative spheres at rights at the municipal level.
local governmental level must be capable of appropriate ac-
tion. Their structures, capacities and strategies must be able In view of rapid urbanisation, expanding urban poor settle-
to guarantee citizens a decent life in cities that is based on ments and social inequality in many of the world’s cities, the
the rule of law. At the same time they must ensure that civil question of decent living conditions in urban agglomerations
society actors receive support so that their legitimate inter- is an ever more pressing one. Rural-to-urban migration is it-
ests and their voices are heard. self based on the human right to liberty of movement (Arti-
cle 12 of the International Covenant on Civil and Political
The right to housing in growing cities: Rights) that grants each person the right to move freely
Sustainable urban development makes a concrete contribution within their country and to exercise political, social, eco-
to the human right to adequate housing as set out in Article 11 nomic and cultural rights at their place of residence. The ad-
of the International Covenant on Economic, Social and Cul- visory services regarding urban development provided by
tural Rights (ICESCR) that is binding on its States Parties. The German development cooperation focus on how, in this con-
core elements of this right include access to sufficiently large, text, the municipal level can meet its duty to guarantee hu-
affordable housing with qualitative minimum standards, basic man rights given the scarcity of public funding and lack of
infrastructure and legal certainty as to ownership. As a result, local mandates and capacities.
people have access to the private housing market, publicly-
funded housing and decision-making processes regarding Realising human rights in cities:
housing issues; no social group is forced to live in deprived ar- In order for human rights to develop to their full potential,
eas without access to basic social services. The arbitrary demo- the financial and institutional capacities of elected officials
lition of and forced eviction from housing are ruled out on the must be developed on the one hand and those officials must
basis of the duty to respect human rights at the municipal level. be called to account on the other hand. Human rights-based
urban development strengthens citizens’ opportunities to
It is usually disadvantaged social groups that are denied the voice their rights and concerns, to become involved in deci-
right to adequate housing, which breaches the principle of sion-making processes and to follow up their implementa-
non-discrimination. In many growing cities in developing tion. German development cooperation pays special atten-
tion to women and children, who need specific means of ac- strengthening civil society by involving citizens – especially
cess and opportunities for participation on account of their women, children and youth – in the planning and redesign-
social status, cultural roles and age-related dependency. ing of urban neighbourhoods. Their voice is strengthened in
dialogue with municipal representatives when it comes to
It is the political and administrative spheres at municipal calling in their right to adequate living space and transpar-
level that are responsible for ensuring urban development is ent information regarding urban planning and development.
put on a human rights footing. The municipal level often
faces huge challenges on account of conflicts of interests and In addition, German development cooperation also promotes
goals, prioritisation and available capacities. Involving mar- the ability of local government actors and municipal repre-
ginalised groups in urban development is of especial impor- sentatives to realise their human rights-based duties vis-à-vis
tance when it comes to ensuring that human rights are citizens. To that end, city administrations receive advice on
realised in cities as far as possible and in line with the pre- improving accountability vis-à-vis other state administrative
vailing conditions. At international level it is the General levels and civil society. Dialogue forums and participatory
Comments of the UN Committee on Economic, Social and budgeting ensure regular exchange between citizens and
Cultural Rights, the UN Convention on the Elimination of their government. That way, accountability, participation and
All Forms of Discrimination against Women and the UN equality of access is strengthened for all those living in cities
Convention on the Rights of the Child that form the frame- in everyday local government practice.
work for their involvement.

3. Practical examples
2. The approach adopted by German development
cooperation Egypt’s cities are growing rapidly, usually not on the basis of
government or local government planning. Around 60 per
At local level respect for and the protection and guarantee cent of the population of Greater Cairo lives in informal
of human rights have the biggest direct influence on the neighbourhoods. These densely populated districts lack
lives of those living in cities. German development coopera- much of what defines decent living conditions: usable open
tion supports partners and civil society actors in developing spaces, social services, access to drinking water, sanitation
countries in gradually implementing sustainable urban de- and waste management.
velopment. It actively contributes to creating decent living
conditions based on the rule of law by: The Participatory Urban Development Programme that the
Deutsche Gesellschaft für Internationale Zusammenarbeit
— making demand-based improvements to precarious living (GIZ) GmbH is implementing on behalf of the German Fed-
conditions by involving citizens in planning and imple- eral Ministry for Economic Cooperation and Development
mentation procedures; (BMZ) works at local, regional and national level to improve
— integrating informal neighbourhoods in the “official” the living conditions of those living in informal neighbour-
municipal area at social and economic level; hoods. In various informal neighbourhoods in Cairo and
— better realising the concerns of weak population groups Giza citizens are able to discuss their needs with each other
when it comes to political decision-making processes; and to coordinate them with the authorities. Youth, women,
— institutionalising forward-looking urban development civil society groups and businessmen and -women are
planning that is responsive to citizens’ needs and combines involved in planning and implementing the measures. In
the right to liberty of movement with access to adequate that way their right to co-determination and decent living
housing. conditions with access to water, social services and education
can be implemented step by step.
When it comes to improving urban settlements, German
development cooperation ensures that when a slum’s infra- As this is a complex task, it is important that a relationship
structure is upgraded its inhabitants are neither directly nor of trust based on transparency and accountability is estab-
indirectly forced out. In accordance with Article 11 of the lished between the civil population, government and other
ICESCR, German development cooperation contributes to relevant actors.
protecting slum dwellers against forced evictions and to

Further information
→ Office of the United Nations High Commissioner for Human Rights/ → UN Committee on Economic, Social and Cultural Rights (1997):
UN-HABITAT (2009): The Right to Adequate Housing. Fact Sheet The right to adequate housing: forced evictions
No. 21 (General Comment No. 7)
→ BMZ (2011): Human Rights in German Development Policy. Strategy. → UN Committee on Economic, Social and Cultural Rights (1991):
BMZ Strategy Paper 4/2011 The right to adequate housing. (General Comment No. 4)
→ BMZ (2010): Human Rights in Practice. Fact Sheets on a Human Rights- → Practical example: http://egypt-urban.net
Based Approach in Development Cooperation → UN Special Rapporteur on the Right to Adequate Housing:
http://ohchr.org/EN/Issues/Housing/Pages/HousingIndex.aspx
Cities and resource efficiency – the urban NEXUS
1. Relevance

The 21st century is the century of cities. It is expected that

five billion people will live in cities by 2030, the equivalent
of the world's total population in 1987. Their basic needs for
water, energy and food will determine how resources are
used in the future. Sustainable resource management is
essential if we are to effectively meet the needs of a growing
population and respond to changes in consumption patterns
without exhausting our planet's finite resources. The respon-
sible use of public goods, such as air quality and ground-
water, plays a key role in this regard.

Through the proliferation of urban lifestyles urban land use

will triple by 2030 (World Bank). Metropolitan regions,
characterised by an urban-rural continuum, are becoming a
reality of urban life, as are increasing competition and
conflict over the use of land and resources in these regions. Making use of cross-sectoral synergies: inner city plots serve for
urban food supply, rainwater infiltration and clean air production.
Around 40 per cent of people will have insufficient access to
water by as early as 2030. At the same time, global energy
consumption and food supplies are both expected to see a In order to manage urban development responsibly within
36 per cent increase by 2025. Even now, the supply needs of our planet's finite natural resources, it is vital to develop
urban areas often exceed the production and provision integrated planning and coordination processes that over-
capacity of surrounding regions. come isolated sector approaches and initiatives. To this end,
it is essential to develop inter-sectoral NEXUS solutions that
Urban life has a significant impact extending far beyond city identify synergies for increasing resource efficiency and
boundaries. The related overexploitation of resources, loss of overcome a single silo mentality. Good approaches are
biodiversity and increase in carbon emissions are reflected in emerging, particularly in the nexus between the water,
the ecological footprint of urban areas. Urban and rural energy and food industries.
areas are highly dependent on each other, as illustrated by
the example of food security. Rural areas depend on urban
markets for income, while cities rely on agriculture for their 2. The approach adopted by German development
food supply. Consequently, measures to ensure that ecosys- cooperation
tems in the countryside surrounding cities remain unspoiled
not only preserve those areas for recreational purposes but By hosting the Bonn 2011 Conference: The Water, Energy
also generate natural capital for resilient and productive cities. and Food Security Nexus – Solutions for the Green Economy
in November 2011, jointly organised by the German Federal
Efficient, cross-sectoral resource management is hence, a Ministry for Economic Cooperation and Development (BMZ)
direct contribution to sustainable urban development proc- and the German Federal Ministry for the Environment,
esses, ensuring that unregulated urbanisation does not coun- Nature Conservation and Nuclear Safety (BMU), Germany
tervail the achievement of the Millennium Development made a visible contribution to the preparation of the Rio+20
Goals (MDGs). In this context, urban agglomerations act as United Nations Conference on Sustainable Development. The
catalysts for innovation in business, science and society, discussion with an internationally recognised group of high-
benefiting from a high concentration of specialised research profile actors visualised the close interrelation between
institutions, companies and service providers that set new water, energy and food security as a key aspect of a green
approaches and technology. economy and resulted in targeted initiatives.
Crucial policy gains in the area of sustainable development 3. Practical examples
can be achieved through an integrated NEXUS perspective:
Against a backdrop of rapid urbanisation, the German
— Increased policy coherence: Synergies and trade-offs Government is promoting the embedment of an integrated
between sectors are identified, and incentives promote NEXUS perspective in metropolitan areas via baseline
cooperation and coordination, multiple benefits and fewer studies, case studies, pilot projects in selected Metropolitan
adverse consequences. Relevant measures include the Regions, and via technical and financial cooperation. Inher-
development of sustainable relationships between urban ent to the urban transformation is the risk of growing urban
consumer markets and surrounding rural regions in the supply gaps, particularly with regard to water, energy, and
area of food production, and the curbing of unrestricted land use. The NEXUS approach, which seeks to manage key
land development. sectors in an integrated way, can make a key contribution to
the sustainable development of rapidly expanding cities. Cit-
— Accelerated access to resources: A coordinated, human ies around the world generally conduct their planning and
rights-based approach is taken to improving access to management activities on the basis of sectoral responsibilities;
water, energy and food for the poor, with the aim of pro- meaning they are often unable to take advantage of cross-
moting productivity and development benefits. The sector relationships and the resulting synergies.
approach is embedded in sectoral strategies. One example
is the improvement of urban and social mobility, taking Integrated Resource Management in Asian Cities: The
into account conflicts over limited resources such as land. Urban Nexus is a regional advisory project promoting local
cross-sectoral initiatives and pilot schemes in selected cities
— Creating more with less: Aiming at an increased resource in six Asian countries (China, Indonesia, Mongolia, the Phil-
productivity, mechanisms are established to identify the ippines, Thailand and Vietnam). The project supports the
optimal allocation of scarce production resources and to development of institutional and personnel capacity of key
sustainably intensify their use, for example, by optimising urban stakeholders, including city administrations and
the use of water and energy in food production in the municipal service providers. It also works through sharing of
urban hinterland. knowledge between pilot cities and existing city networks on
the integrated optimisation of urban water, energy and food
— An end to resource wastage and minimised security in the context of urbanisation, economic growth
resource loss: and increasing resource consumption.
Reducing waste and resource loss along supply chains
generates economic and environmental gains and reduces The technical and financial cooperation project in Brazil
consumption across sectors, as in the case of the provi- entitled Promoting climate-friendly biogas technology is
sion of water on an energy-efficient and safe basis within designed to promote the use of such know-how in waste-
the context of urbanisation and industrialisation. water- treatment and to broadly initiate the generation of
electricity from other biogas sources. Pilot projects for ener-
— Effective use of natural infrastructure: Protecting getically exploiting agricultural waste, specific investments
ecosystems secures the supply of natural resources, pro- in waste-water-treatment plants and equipment for water
moting sustainable living. Activities in this field include provision are foreseen. Greenhouse gas emissions related to
targeted protection of areas of environmental value and sewerage and waste treatment shall be utilised in the future.
the improvement of microclimates through management Existing systems shall be optimised in the course of technol-
of green spaces in cities. ogy transfer with the aim of cutting greenhouse gas emis-
sions, of developing alternative approaches to electricity
— Mobilised consumer influence: Intentionally chosen generation and of orienting waste-water-treatment along
sustainable and resource-efficient consumption patterns required environmental standards.
reduce cities’ overall ecological footprint and help to
improve the way business is done. This is achieved, for The project provides technical support to the consolidation of
example, by promoting green buildings and neighbour- biogas on the national energy market (set up of norms,
hoods through innovative planning and financing alliances with academia and private sector) and the concep-
approaches in cooperation with participatory bodies. tual outlay of investment measures. The financial cooperation
focuses in partnership with two Brazilian water providers on
the construction of new waste-water-treatment plants as well
as the expansion of existing ones, including advisory services.

Further information
→ The Water, Energy & Food Security Resource Platform NEXUS, www.water-energy-food.org
→ Stockholm Environment Institute, www.sei-international.org/rio20/water-land-energy-nexus
→ World Economic Forum, www.weforum.org/videos/risks-focus-3-water-food-energy-nexus
→ International Food Policy Research Institute, www.ifpri.org/blog/water-energy-and-food-security-nexus
→ BMZ Innovation Council discusses key challenges for the future in the area of water, energy and food security,
20 March, 2012 (in German): www.bmz.de/en/press/aktuelleMeldungen/archive/2012/maerz/20120320_pm_73_innovationsbeirat/index.html
Sustainable development of metropolitan regions
1. Relevance

As urbanisation progresses at a rapid pace right up to the

middle of our century, it is bringing about significant eco-
nomic, political and socio-economic transformation all over
the world. Looking ahead, the sprawling cities of developing
countries will generate 95 per cent of all urban growth,
driven above all by a dynamic expansion in Asia and Africa.
Urbanisation and globalisation intensify the linkage between
cities and their surrounding areas and between individual
cities. Rapid urban growth is accompanied by a dramatic rise
in the exploitation of land and resources, as can be seen in
many developing and emerging countries. Neighbouring
towns and settlements of various sizes, with different eco-
nomic structures and socio-cultural characteristics, gradu-
ally transform into one discrete unit. Cities evolve into Planning for productive rural-urban linkages for the sustainable
metropolitan regions and exert an increasing influence on development of metropolitan regions
surrounding rural areas. According to the United Nations
Department of Economic and Social Affairs (UNDESA), in
2011 there were 426 metropolitan areas around the world the city’s poor indicate a lack of economic, social and
with populations of between 1 and 10 million; 314 of these political participation and governance in urban regions.
were in less developed countries. By 2025, the number is ex- Increasingly urban lifestyles reinforce unsustainable patterns
pected to reach 631, including 530 in less developed coun- of consumption that stretch the capacity of urban agglomer-
tries. ations to preserve biodiversity and ecosystem services and
place an excessive burden on surrounding rural areas.
By their nature and functions extending beyond their geo-
graphical boundaries, metropolitan regions stand out at a
national and even an international level. They enjoy a privi- 2. The approach adopted by
leged status as centres of political, administrative and eco- German development cooperation
nomic power, both in terms of decision-making and control.
They harness the concentration and proximity of social and As a result of demographic trends over the next few decades,
institutional capital to drive innovation and competition. urban living will become the increasingly dominant model
They act as gateways with their transport hubs, markets and in developing countries. As national, and in some cases
knowledge centres. They also fulfil a symbolic cultural and global, economic hubs and as drivers of technological, social
socio-economic role in the national context and sometimes and cultural innovation, cities make a vital contribution to
on the world stage. As such, they offer tremendous potential progress and change. German development cooperation
for economic and social development, both within their own believes that the main challenges will lie in managing rela-
territory and as part of the broader regional and national tions between cities and the surrounding areas and between
development agenda. The role of metropolitan regions as the individual cities that make up large conurbations. It con-
important players in global networks is increasing. tinues to update its advisory services, funding programmes
and toolboxes to respond to the needs of urban agglomera-
Demographic growth, migration, inadequate public services tions and metropolitan regions in its partner countries.
and mandates, a lack of transparency in the market for land Existing governance structures are often unable to cope with
and limited access to labour markets favour socio-economic ensuring efficient coordination and cooperation between
segregation within metropolitan regions, especially in peri- governments, public administration in a multi-level govern-
urban areas. Sprawling informal settlements inhabited by ance system and the private sector.
To address the diverse social, economic and ecological This network-based approach is designed to promote an
challenges German development cooperation focuses on in- exchange and transfer of knowledge within and between
terventions in four priority multi-sectoral areas: individual institutions and at both regional and national
level. The priority is to devise empirically sound concepts
a) Metropolitan regions as innovative business regions: and strategies that will provide guidelines for action and
Metropolitan regions provide a venue for the exchange of thus encourage sustainable, pro-poor forms of development
goods and information between local, national and global in metropolitan regions within the four priority areas
businesses. They attract knowledge-based companies, and specified above.
they promote and implement new ideas that facilitate
sustainable economic activity. For this to happen, how- The list of areas targeted for the development of appropriate
ever, it is essential to create an appropriate framework. instruments and the piloting of strategies includes:
b) Metropolitan regions as inclusive labour markets and
residential centers: By virtue of their economic growth, — baseline studies in the selected four priority fields
metropolitan regions provide a wide range of services — an analysis of stakeholders within metropolitan regions;
and jobs from which poor people can also benefit. To — a toolkit of organisational and governance structures in
date, unclear responsibilities, a lack of capacity and the metropolitan regions;
inadequate funding of local/regional government have — instruments to support the application of cross-sectoral
hampered attempts to develop effective strategies for development strategies (NEXUS);
spatial development and for improved access to markets — green economy advisory services (Green Urban Economy);
and services for poorer groups, especially those living in — knowledge transfer, learning networks and partnerships
marginal settlements. (e.g. between actors at municipal level).
c) Metropolitan regions as dense “nexus” networks: With
so many people and so much production and consump- The project will draw on the experience gained in ongoing
tion concentrated in one area, metropolitan regions German Development Cooperation projects on different
devour tremendous amounts of energy and natural continents.
resources. However, given the tightly woven geographical
and sectoral links that exist in metropolitan regions, Increasingly, as a result of urbanisation, current partner
there are good opportunities for improving the efficiency cities are growing into large urban centres or find themselves
of their material and energy cycles, for example by part of new urban corridors and expanding agglomerations.
designing the right infrastructure for the local context. Accordingly, the measures we take to promote sustainable
This requires considerable investment, regional control urban development will need to look beyond each town’s
systems and cross-sectoral “nexus” approaches. geographical and administrative limits. In this context, the
d) Metropolitan regions as governance systems: New key questions are:
governance structures are needed for urban agglomera-
tions in order to organize and control the multi-sectoral — How can we handle measures that extend beyond a city’s
challenges they face. Political and administrative responsi- political and geographical boundaries?
bilities in metropolitan regions are often characterised by — How can cities work together to tackle planning and
their sheer number and complexity and by structures and investment issues?
processes that are either simply not in place or otherwise — As regional development units, how can metropolitan
poorly organized and/or without democratic legitimacy. regions contribute to a prosperous national development?

Next to partners from the political and administrative realm,

3. Practical examples new stakeholders from civil society, business and academia
are entering the stage, whose interests and dynamic involve-
On behalf of the German Federal Ministry for Economic ment will be decisive in helping to determine the future
Cooperation and Development (BMZ), the sector project enti- prospects of metropolitan regions. Further, analyses of inter-
tled Sustainable Development in Metropolitan Regions is national and European models of successful regional man-
currently devising a conceptual and methodical strategy that agement in densely populated conurbations will feed into
aims to provide solutions, based on analyses and expert BMZ’s guideline framework for cooperation with metropoli-
dialogues, that work for, with and in metropolitan regions. tan regions.

Further information
→ Knieling, Jörg (publ.), 2009: Metropolregionen: Innovation, Wettbewerb, Handlungsfähigkeit (German only)
→ Ludwig, Mandel, Schwieger, Terizakis (publ.), 2009: Metropolregionen in Deutschland (German only)
→ GIZ URBANET, Thematic Focus Metropolitan Regions, www.urbanet.info
→ Metropolis, global City-Network: www.metropolis.org/initiatives
Published by the
Federal Ministry for Economic Cooperation and Development (BMZ),
Division for public relations, information and education

Edited by the
BMZ Division for water; energy; urban development; geoscience sector

Design and layout

BLOCK DESIGN Kommunikation & Werbung, Berlin

Printed by
Bonifatius Druck und Verlag, Paderborn
The original document was printed on FSC-certified paper.

Photo credits
Cover: www.irinnews.org
Green Urban Economy: Jason Gutierrez/IRIN
Cities and climate change: GIZ/Robert Heine
Cities and safety: GIZ/Kamikazz
Cities and good governance: GIZ/Silke Irmscher
Municipal financing and urban development: Ralf Bäcker/GIZ
Cities and poverty: GIZ
Cities and human rights: Claudia Wiens/GTZ/PDP, Publication “Cairo’s Informal Areas Between Urban Challenges and
Hidden Potentials. Facts. Voices. Visions.” (2009)
Cities and resource efficiency: Alexandra Linden
Sustainable development of metropolitan regions: Alexandra Linden

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New edition, April 2014

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