Inclusive Cities

Inclusive Cities
sias urban population at the beginning of the 20th century was 19% of the total global urban population. By 2005, it had grown to 48% of the worlds total urban population, and it continues to grow. By 2006, capital cities and major commercial centers were swelling into megacities with populations of more than 10 millionthere were 10such cities in Asia. Moreover, megaregions of more than 20million inhabitants are increasingly common as cities grow beyond formal administrative boundaries and swallow

Addressing the Urban Context

smaller towns. Metro Manila, for instance, has grown into a megaregion of some 30million inhabitants, and the Shenzhen GuangzhouHong Kong, China region of the Peoples Republic of China has an estimated population of 120 million. The Bangkok region in Thailand is expected to expand 200kilometers from its present center by 2020 and to grow far beyond its current population of more than 17 million. The role and shape of cities are changing as more people migrate to urban areas

Rooms with a viewPasig River, Metro Manila

Inclusive Cities 1

Un co ntr o ll ed an dU ng
looking for economic opportunities and quality-of-life improvements in education, health, and housing. But urban citizens do not share equally the benefits of economic growth and progress, and the failure of governments to prepare for and address the needs of the urban poor in cities has created overcrowded inner-city tenements, slums, and informal settlements. The resulting urban sprawl can be seen in Bangkok, Delhi, Manila, and Mumbai, a consequence of the

uid ed U

rba n

Gro wth

The role and shape of cities are changing as more people migrate to urban areas looking for economic opportunities and qualityof-life improvements in education, health, and housing
2 Inclusive Cities

lack of affordable shelter options and access to land, especially for the poor. Moreover, informal unplanned settlements in peri-urban areas may compete with neighborhoods of the well-to-do who have fled congested city life. The resulting denial of tenure to the urban poor is one of the prime causes for the informal settlements that feed urban sprawl, even though relocating to the periphery may not be the preference of low-income families. At present, countries in Asia and the Pacific are addressing the issue of slums. For example, multifamily walk-up apartments offer low-income families the opportunity to remain in town and closer to work, and this

Informal urbanization at the fringeKathmandu

kind of development addresses the need for medium-rise densities. Nonetheless, such innovation has not occurred at the rate required to create livable cities. Many governments and the donor community have neglected shelter development, and slums have proliferated as markets have failed to provide affordable land and housing options. Therefore, development agencies wishing to address urbanization and to support the evolution of livable cities must pursue integrated urban

redevelopment, especially slum upgrading and new shelter development. Like many cities and governments across Asia and the Pacific, the Asian Development Bank (ADB) is determined to make cities livable and inclusive by addressing the problems resulting from rapid urbanization and the limited capacity of basic service delivery systems to keep pace with growth.

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Inclusive cities must be economically, environmentally, and socially sustainable in all urban operations, including planning, land management, services, financing, and capacity development (ADB 2008a,2008b), and investment should focus on local infrastructure, community facilities, transport infrastructure, habitat and shelter,

and support for livelihood and commerce (seefigure) (ADB 2010). ADBs Strategy 2020 also addresses urban environmental issues, the need to reduce the carbon footprint of cities, and the need for climate change and disaster risk education to build sustainable cities resilient to climate change (ADB 2008b).

Slums of Hop e

4 Inclusive Cities

Interventions for Inclusive Cities

Support to livelihood and commerce

Local infrastructure e.g., water, sanitation

Finance systems

Land development housing and settlement upgrading

Community facilities

Transport links/ non-motorized transport

ADBs Strategy 2020 also addresses urban environmental issues, the need to reduce the carbon footprint of cities, and the need for climate change and disaster risk education to build sustainable cities resilient to climate change

Slum s of

Des p

air

Inclusive Cities 5

Livable Cities are Inclusive Cities

nformal settlements are not uniform, and all differ. Rather than being a strictly environmental and social problem, many informal settlements or slums represent hope and opportunity. Slum inhabitants often consider such settlements an opportunity and will do everything possible to improve them, but they cannot accomplish this alone. Many such areas are in need of remedial investment to provide basic services such as water, sanitation, and solid waste management. Likewise, attention must be given to upgrading slums and shelters, to preserving historic urban areas, and to retrofitting existing community and mitigation infrastructure.

Guided Urban Development

Past urban infrastructure development programs have focused on water supply, wastewater treatment, and sanitation systems, and certainly, private sector partnerships and cofinancing must consider these citywide systems in any ongoing effort to provide, operate, expand, or maintain basic services in growing cities. However, in addition to providing basic urban services, slum upgrading must include home improvement or resettlement schemes, on-site walk-up apartment development, shelter retrofit, and site protection. Such measures will help reduce

Urban

I m p ac t

s of Extr eme

Marikina after Typhoons Ketsana and Parma, 2009

Pasig City during Typhoons Ketsana and Parma, 2009

6 Inclusive Cities

vulnerability, improve a communitys quality of life, and expand livelihood opportunities in an integrated manner. For instance, urban redevelopment might support projects, such as medium-rise apartments, that are both culturally acceptable and contribute to a more livable, socially inclusive city. Likewise, credit for housing and home improvements represents a growing opportunity for formal housing institutions. Bulk lending to microfinance entities, communitybased financial organizations, and nongovernment organizations offers improved opportunities for poor families to gain access to credit to improve their livelihood and living conditions. In addition, support for proactive land development in urban expansion areas will help modify the present cycle of reactive remedial efforts to upgrade existing squatter areas. New sites and services can

Bulk lending to microfinance entities, community-based financial organizations, and nongovernment organizations offers improved opportunities for poor families to gain access to credit to improve their livelihood and living conditions
guide the urban population to safe, wellserviced settlements. In the absence of shelter alternatives for low-income families, cities will always be afflicted with slums and informal settlements and the associated overcrowding, vulnerability, and quality-oflife issues.

Weather Ev ents
Pasig City during Typhoons Ketsana and Parma, 2009

Pasig City, Metro ManilaManggahan Flood Spillway after TyphoonsKetsana and Parma, 2009

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What Can Be Done? How Can Inclusive Urban Development Be Achieved?

Addressing the Existing Urban Context
Many existing urban situations call for remedial investment to provide basic services, such as water, sanitation, and solid waste management, that are not yet available in slums and informal settlements. Remedial investment is also urgently required for programs that focus on retrofitting existing community infrastructure, housing and schools, and historic urban areas. An illustrative Asian Development Bank inclusive urban redevelopment portfolio of options shows a variety of activities that inclusive urban redevelopment initiatives could support: Water supply and sanitationlimited interventions in these two essential services. Slum upgrading programsfocusingon basic urban services only (including services beyond water and sanitation, such as footpaths, roads, drainage, flood control, street lighting, solid waste management,etc.). Shelter upgrading programsgoing beyond basic infrastructure, providing support to home improvement. Community facilities retrofit programsstructural improvements of schools, community centers, and health facilities, keeping in mind their possible role as emergency shelters during disasters. Infrastructure retrofit programsupgrading of decayed infrastructure. Historic urban areas conservationcombining upgrading of infrastructure with retrofit of the built environment and revitalization of economic activities. Housing finance support for low-income housingaffordable and easily accessible financing instruments for the urban poor.

ghborhoods Slum RehabilitationConsolidation of Informal Nei

8 Inclusive Cities

Finally, attention must be given to historic urban areas, which often represent an underutilized asset in a city. Such areas attract tourism, a growing source of employment for the poor, and are home to increasing numbers of migrants who occupy shared facilities with limited or no services. Improving the historic housing stock does not necessarily mean gentrification but can support of families living in tenements while also preserving an areas historic value (Steinberg 2008).

Improving the historic housing stock does not necessarily mean gentrification but can support of families living in tenements while also preserving an areas historic value
densities, less fossil fuel dependence, and more efficient and sustainable energy and water supplies. In addition, climate change increases the vulnerability of cities, especially cities located along coastlines and waterways. The principal climate change effects include

Responding to Climate Change

Beyond such quality-of-life improvements, climate change also necessitates a change in the trend of uncontrolled and unplanned urban development. The shape of cities needs to reflect more climate-friendly development patterns, including higher

Urba

in ation italiz n Rev

icts Distr ge erita H

Urban heritage district in Beijing

Urban heritage district in Kathmandu

Inclusive Cities 9

increased temperatures, precipitation, and extreme weather events, as well as a rise in sea level. Eight of the 10 coastal cities at the greatest long-term risk from climate change and rising sea levels are located in Asia. Improving the existing built environment to respond to climate change and the increasing frequency and intensity of disasters represents a significant urban management challenge, especially in slums and informal settlements. Inclusive urban redevelopment and the planning for the future growth of cities and towns must consider the potential effects of such change, and thus the definition of urban infrastructure must be expanded to include mitigation and adaptation infrastructure. Existing infrastructure can be made more resilient to climate change and increasingly frequent and intense disaster events. For

Existing infrastructure can be made more resilient to climate change and increasingly frequent and intense disaster events
example, segregated service systems and the installation of control valves to segregate damaged segments of pipe can limit damage and maintain safe water supplies, which is especially important during an emergency. Climate change mitigation and community preparedness will influence how and what kind of land will be developed; the location of lifeline facilities, schools, and safe havens; and the building standards for mixeduse, high-density, and low-rise housing.

Developing countries could triple their entire built-up area between 2000 and 2030: 200,000 km2 600,000 km2.

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Addressing the Future Growth of Cities

The future growth of cities implies three spatial tendencies that will determine much of the future work: Densification of existing built-up areas; Urban expansion at the fringes through highdensity, low-rise developments to avoid inefficient sprawl; and Satellite cities or new towns (green field development). An illustrative Asian Development Bank (ADB) inclusive urban redevelopment initiative would provide a stream of capital investment support necessary for land development and settlement upgrading. Poverty reduction depends on the development of options for the poor. Through local government, private sector, and civil society initiatives in partnership with ADB, support can focus on the development of new land and shelter options for the poorguided land development with sites and services, reception areas, and innovative incremental housing solutionsto better and more safely house growing urban populations. An illustrative program that addresses future growth activities could include the following:

Structural Initiatives
Basic urban servicespreparing for future growth Mitigation infrastructurepreparing for future disasters Guided land development and sites and services programsproviding land to accommodate future growth Innovative shelter solutionsfinished products or incremental low-cost housing, affordable and adaptive to future needs

ion Massive Requirement for Urban Expansion and Slum Rehabilitat

Inclusive Cities 11

Slum Improvement: Mainly Infrastructure Investments

Water connections Drainage Community centers Green areas/parks Disaster mitigation Secondary water networks Sanitation connections Solid waste collection points

Bus stops Public stairs/ramps Urban roads Street lighting Sidewalks Retention walls Channeling

Metro ManilaConverting Informal Settlements into Well-Serviced and

Taguig City, Metro Manila Rehousing of shanty dwellers in modern walk-up apartments

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Mitigation infrastructure includes such things as citywide flood control systems, early warning systems, site protection schemes, and retaining walls and sea groins. Housing also is being looked at differently in light of climate change. Higher densities in inner-city multifamily walk-up apartments, for instance, are considered more green because they reduce urban sprawl and commuting. The ultimate effect of climate change and its demands on housing design and options remain to be seen, but engineering and community participation can contribute to more climate-sensitive urban growth.

livelihood options, improving the built environment, and creating shelter options. The future growth of cities will require densification of existing built-up areas; high-density, low-rise development at the fringes of cities to avoid inefficient sprawl; and development of satellite cities or new towns. Concurrently, these three approaches of densification,

Higher densities in innercity multifamily walk-up apartments, for instance, are considered more green because they Densification, Urban Expansion, reduce urban sprawl and New Cities and commuting
Inclusive cities require urban redevelopment that focuses on creating
These apartments were built with community participation

reas ential A sid Modern Re

Inclusive Cities 13

urban expansion at the fringes, and new city development on green fields will need to be pursued.

Financing Inclusive Cities

Such initiatives require a stream of capital investment through government, civil society, and private sector initiatives:

I nd

Knowing that resources will be in place for future project financing can stimulate the development of national and microfinance systems for service delivery
ia R
ece nt A D
B Ex pe r i ence

Government Initiatives
ADBs developing member countries seek viable lending opportunities to finance inclusive cities, and ADB can support these countries inclusive urban redevelopment by providing a reliable stream of resources to increase the scale of project development and investment. Knowing that resources will be in place for future project financing can stimulate the development of national and microfinance systems for service delivery.

in Ho using

an d S

ettlem

ent Upg rading

Slum before upgrading

Slum after reconstruction

Slum before upgrading

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Relevant Experiences
India: Urban infrastructure development. The ADB-financed Karnataka Urban Infrastructure Development Project is an example of a statewide project spearheaded by the government.1 In 1993, the Government of India approached ADB for assistance in preparing a project to support the development of areas around Bangalore as growth centers and viable alternatives to the city. The investment in works ($80.3 million) and housing loans ($20 million) was intended to build the capacity of local urban bodies and related institutions to ensure the sustainability of the investments. It also was to provide housing finance assistance to low-income groups in the project towns at affordable interest rates. This multisector project included environmental sanitation, road improvement and bus or truck terminals, poverty reduction education through slum improvement, industrial development, institutional strengthening, and housing finance.

Loan 1415-IND: Karnataka Urban Infrastructure Development Project ($85 million). Other ADB-financed Indian projects with slum improvement components include Loan 1704-IND: Karnataka Urban Development and Coastal Environmental Management Project ($175 million); Loan 1813/2293-IND: Kolkata Environmental Improvement Project ($330 million); and Loan 2046/2456-IND: Urban Water Supply and Environmental Improvement in Madhya Pradesh ($252 million). About 2%5% of these loans were dedicated for slum improvement.

Karnataka Savings Group

Savings group

Slum after upgrading

Inclusive Cities 15

Although the funds approved by state governments for slum redevelopment under this and other similar ADB-financed projects in West Bengal and again in Karnataka were only a few million dollars (only 2%5% of the total project cost), these relatively small slum-improvement programs nonetheless had a major positive effect on the beneficiary communities. Most funding went toward physical infrastructure. Funds allocated for economic programs represented little more than seed money, but the supported groups quickly became self-sustaining. The slums involved typically varied in population from a few thousand to more than 100,000 people, and tens of thousands of families benefitted from the improved basic services provided under the projects. Many more families were able to improve their financial situation through participation in one of the various programs. The physical infrastructure and income-generating opportunities resulted in immediate improvements in public health, economic opportunity, and quality of life.

India: Urban renewal. Another Indian program, the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), was initiated by the Government of India in 2001. The JNNURM wants to draw up a coherent urbanization policy and strategy to implement projects in select cities. These projects are meant as an urban sector reform. They are fast tracked and represent planned development with a focus on efficiency in urban infrastructure delivery. Community participation and accountability of urban local bodies toward its citizens is an added value. The JNNURM strategy takes a long-term view over a 2025 year period, with 5-year updates. Each city in the mission program

India: Many more families were able to improve their financial situation through participation in one of the various programs

lal Nehru r the Jawahar e IndiaUrban Renewal und

MumbaiTo get access to land, private developers need to rehouse existing slum populations

MumbaiPrivate-sector-built housing in Dharavai, one of Asias biggest slums

16 Inclusive Cities

is to develop policies for funding that include national, state, local, and external sources, followed by future growth plans for each 5-year plan that integrate land use with services, urban transport, and environmental management. This is to be followed by specific city development plans, required for a city to access program funds. The plans are implemented through detailed project reports in identified cities with a clear role for the private sector in the development, management, and financing of urban infrastructure. Among the objectives of this national program for urban development is the integrated development of slums in designated cities. The program, conceived as an enabling framework, provides improved shelter, basic services, and other civic amenities to the urban poor, as well

as security of tenure, at affordable prices. Where possible, housing is located near peoples work, reducing environmental impact. Thailand: Community-based development. Thailands baan mankong (secure housing) program represents another government-initiated effort. Through community-based savings and credit entities, the Government of Thailand addressed urban poverty and the need to develop more participatory methods in support of low-income groups. The Community Organizations Development Institute (CODI), an independent public organization and an offshoot of the National Housing Authority, was identified as the implementing agency for the program.
Indore, Madhya Pradesh social housing

M is s newal ban Re onal Ur Nati

ion

M) NUR ( JN

Vishakapatnam, Andhra Pradesh social housing for former slumdwellers

Inclusive Cities 17

The institute provides government funds directly to poor communities in the form of infrastructure subsidies and housing loans for community-managed upgrading efforts. The CODI Board comprises representatives of government and community organizations, with wide links to ensure urban and rural collaboration. Partnerships were an important aspect of the program, and communities established working relationships with local governments, professional and academic entities, and nongovernment organizations. The program focused on upgrading existing settlements wherever possible, to build on community

effort and investment. For sites considered too vulnerable, nearby relocation sites were found, which minimized disruptions. The CODIs 5-year plan was to improve housing, infrastructure, and security of tenure for 300,000 households in

The program focused on upgrading existing settlements wherever possible, to build on community effort and investment

I nd i aU rban Rene wal u nder t he Jaw aharlal

Nehru

Mumbai, Maharashtra social housing

18 Inclusive Cities

2,000 poor communities in 200 cities in Thailand. Thailands experience features the key lesson that community-identified and -managed projects are more likely to improve the built environment and empower the community.

for retrofit initiatives covering existing urban areas or future city growth. ADB has grant funding available to support redevelopment initiatives related to clean energy, climate change, water, and urban development. Grant funds also are available from the Japan Fund for Poverty Reduction. Support for knowledge management is available from the Republic of Korea e-Asia and Knowledge Partnership Fund. Indonesia: Neighborhood and shelter upgrading. One such civil society project, the ADB-financed Neighborhood Upgrading and Shelter Sector Project in Indonesia, lays out a comprehensive strategy to address the existing and future shelter needs of the poor and identifies the systems that need to be strengthened to make such housing and systems work.2 The project focuses on improved site planning and

Civil Society Initiatives

Financing an inclusive cities initiative can provide critical support for the Strategy 2020 focus on civil sector development (ADB 2008b). ADB has the opportunity to diversify its partners and the sources of finance for such development programs. Finance may take the form of direct project development or the use of donor grants as risk capital to prepare commercially viable municipal services projects for the local bond market. It also can provide lines of credit to support formal bulk lending to microfinance organizations, as well as dedicated finance
2

Loan 2072/2073(SF)-INO: Neighborhood Upgrading and Shelter Sector Project ($73.7 million).

National Ur ban Renewal Missio n (JNNURM)

Thirukalundram, Tamil Nadu Home Improvement Project

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management, increased access to shelter finance by the poor, upgrading poor neighborhoods and developing new sites, and strengthening the sector institutions involved in the program. The settlement upgrading component has been successful, and the project has helped establish a supportive policy, institutional, and regulatory environment to meet housing needs in informal urban settlement areas. In addition to improving roads and pathways, which has absorbed a major share of budget allocated for civil works, the project has helped to improve water supply and sanitation facilities, drainage networks, and street lighting, all of which have improved livelihoods and health. Improved street lighting, for instance, has reduced petty crime and violence, and improved drainage facilities have reduced flooding and thus the destruction of property and the incidence of waterborne diseases. New site development has provided housing for poor families in urban

Indonesia: Improved street lighting, for instance, has reduced petty crime and violence, and improved drainage facilities have reduced flooding and thus the destruction of property and the incidence of waterborne diseases. New site development has provided housing for poor families in urban slum areas
slum areas. Community participation in designing infrastructure improvements and implementing civil works, and enthusiasm among poor community members who were selected to move to new houses under the new site development, was very high.

rading IndonesiaNeighborhood Upg

Water supply Community toilets

Solid waste collection

20 Inclusive Cities

By the end of 2009, 803upgrade projects were completed and more than 3,000civil works contracts were awarded and implemented by local community groups. Total improvement covered about 6,832 hectares spread over 32urban areas and inhabited by 3.9 million people. Among project beneficiaries, more than 1.8 million people (40%) in 900 urban slums were categorized as poor.

to contribute to slum upgrading and urban redevelopment, particularly given the sectors nongovernment, for-profit focus. The rigors of dealing with a private entity provide a strong incentive to design affordable programs that focus on real cost recovery. The cost recovery and sustainability of a service or loan requires the enforcement of building regulations, as well as effective collection procedures, on the part of the developer or lending entity. Developing member countries may choose to implement a program themselves or they may contract with private entities to implement such programs in order to improve cost recovery. For example, Indias Housing Development Finance Company

Private Sector Initiatives

ADB has identified the need to expand the role of the private sector in financing and managing urban infrastructure and inclusive shelter needs. The private sector often has avoided dealing with lowincome families because of sociocultural differences, perceived risks, lack of required collateral, and the administrative costs of small loans. The preferred model is for lowvolume activities with high profit margins. Nonetheless, the private sector has much

Water supply Footpaths

Footpaths High-density neighborhood (kampung)

Inclusive Cities 21

has developed a range of loan products that are made available to borrowers only after rigorous due diligence has been carried out, and the company has developed methods to facilitate effective collection and to avoid default. Implementing urban service delivery systems, as opposed to projects, is the key to scaling up activities. Publicprivate partnerships work especially well for citywide service provision, but inclusive citywide systems must include informal settlements and slums. Liquidity in national capital markets can be leveraged into slum improvement by including slum networks in commercially viable citywide systems.

Publicprivate partnerships can design commercially viable projects that can mobilize land provision and raise funds in national bond markets and leverage local revenues. For instance, the cities of Ahmedabad and Tirupur in India have developed and implemented projects funded through the Indian bond market and have worked to create confidence within the investment community. Ahmedabad raised $89.5million between 1998 and 2006 through four municipal bond issues. The Karnataka Water and Sanitation Pooled Fund of the Greater Bangalore Water and Sewerage Project raised over $23 million with a United States Agency for International Development credit

M e tr o Man

ilaS lum

Improv ement

Before upgrading Drains/sewers after upgrading

Electricity

Water supply

22 Inclusive Cities

guarantee, leveraging every $1 provided into $29 in domestic capital. One important lesson learned from the Ahmedabad bond issue is that any commercially viable project must cover project preparation costs through fees. Should projects not succeed, project preparation costs will be absorbed by the government, but the amounts involved still are considerably less than financing a water supply or wastewater treatment system. Turnkey contracts with the private sector for infrastructure design and construction have become a useful tool for local governments, providing efficiency and cost control, and this approach can also work for urban redevelopment. Such contracts also may include capacity building and promote community participation. Efficient management and fee collection, especially in water supply systems, encourages private
3

sector entities to consider participating in slum improvement and basic services delivery. The Philippines: Urban poverty reduction. Strategic Private Sector Partnerships for Urban Poverty Reduction in Metro Manila (STEP-UP) was a publicprivate partnership between some 200 businesses and enterprises and 34homeowners associations.3 The urban poverty reduction project, implemented in 23poor urban communities in Metro Manila from 2003 to 2006, provided basic community infrastructure, home improvement loans to 1,350 households, and livelihood loans to 852borrowers. In addition, 741 people were trained in skills development. The approach of STEP-UP was to work with organized communities that initially had occupied land illegally and then purchased their plots through Community Mortgage

Japan Fund for Poverty Reduction PHI 35480: Strategic Private Sector Partnerships for Urban Poverty Reduction in Metro Manila (STEP-UP) ($3.6 million grant).

Community center

Livelihood training Footpaths

Inclusive Cities 23

STEP-UP in Manila: The project developed the capacity of the homeowners associations and provided basic infrastructure, and households were able to receive from their homeowners association home improvement loans with a maximum term of 7years

Program loans. The project developed the capacity of the homeowners associations and provided basic infrastructure, and households were able to receive from a homeowners association home improvement loans with a maximum term of 7 years. A recent external evaluation of the STEP-UP program found that the communities exceeded their home improvement loan target, with a loan portfolio of $1.77 million in uncollateralized loans, and achieved a 95% repayment rate as of January 2007. Access to credit represented an opportunity for the communities and was an important element of the project.

Transforming Cities

Jakarta, Indonesia

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Working with ADB

DB has the opportunity to take the lead in poverty reduction in Asia and the Pacific by addressing the demands of increasing urbanization. With ADB support, cities can engage in proactive urban redevelopment and create inclusive livable cities that consider climate change and disaster risk management in both the built and enabling environments. Failure to improve the urban built environment, particularly in slums, will undermine ADBs poverty reduction efforts. ADB has identified urban infrastructure as a core area of operations under Strategy 2020 (ADB 2008b), and it aims to double its urban investment to over $2 billion annually under its Urban Services Initiative (20072015) (ADB2007). Urban infrastructure is often

viewed only as sector lending, but ADB has used urban infrastructure investment very successfully in past integrated slum upgrading programs. In addition to these structural initiatives, successful urban development depends on a number of nonstructural support initiatives. For example, an updated, inclusive information base provides the basis for planning and implementing improvements. Likewise, resolving tenure issues is critical to improving slums, because families without tenure will limit their investment in the security and resilience of
MumbaiDharavi, India

Inclusive Cities 25

their homes and sites. The tenure situation in informal settlements would be one of the key issues to be addressed. Another important element of urban renewal is education. Awareness campaigns must improve awareness of slum improvement and relocation opportunities; new shelter options; hazard management; disaster preparedness; water, sanitation, and health issues; access to credit; and improved construction technologies, among other things. A fourth critical element is building the capacity of government, civil society, and the private sector to improve livelihood

The tenure situation in informal settlements would be one of the key issues to be addressed
opportunities and access to credit, to develop resilient building technologies, and to foster transparent project design, management, and implementation. Finally, codes and standards must encourage incremental housing and infrastructure development and resilient building methods, and provide guidance for retrofitting.

Tran sform

ing C iti

es

26 Inclusive Cities

ADB joins other multilateral development banks and development partners in identifying urban areas as the geographic focus for future economic development. Cities are positive economic forces, and no country or donor can afford to risk reduced economic performance due to the poor environmental quality or underperformance of cities. ADB is committed to assisting its developing member countries in encouraging inclusive cities.

References
ADB. 2007. Urban Services Initiative. Manila. ADB. 2008a. Managing Asian Cities. Manila. ADB. 2008b. Strategy 2020: The Long-Term Strategic Framework of the Asian Development Bank, 20082020. Manila. ADB. 2010. Urban Operations Plan (draft). Manila. Steinberg, F. 2008. Revitalization of Historic Inner-City Areas in Asia: The Potential for Urban Renewal in Ha Noi, Jakarta, and Manila. Urban Development Series. Manila: Asian Development Bank.

Photographs on pp. 13, 6 (left), 7 (left), 815, and 2025, 27 by F. Steinberg; on pp. 6 (right), and 7 (right) by ADB; on p. 16 by B. Banerjee; on pp.1719 by the Ministry of Housing and Urban Poverty Alleviation, India; and p. 26 by AFP.

Inclusive Cities 27

Inclusive Cities Slums, informal settlements, and dilapidated inner-city tenements are problems that many cities in Asia and the Pacific struggle with while their economies try to modernize and develop. Their existence puts at risk not only these economies, but also poor people occupying vulnerable areas that climate change and natural disasters will only make worse. Slums are being addressed in countries in Asia and the Pacific but not yet at the rate required to create livable cities. Strategy 2020 of the Asian Development Bank (ADB) aims for livable cities and will address the range of problems resulting from rapid urbanization and the limited capacity of basic service delivery associated with present and future urban growth. To accomplish the vision of livable cities, livelihood opportunities and shelter options of incremental land and housing development are important. ADBs developing member countries will look for viable lending opportunities to finance inclusive cities. About the Asian Development Bank ADBs vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the regions many successes, it remains home to two-thirds of the worlds poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.

Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org Publication Stock No. ARM102657
Printed on recycled paper Printed in the Philippines