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DEVELOPING URBAN FUTURES - London School of Economics
DEVELOPING
URBAN
FUTURES
DEVELOPING URBAN FUTURES - London School of Economics
CONTENTS                                                                                                                                                                FOREWORD

3   FOREWORD                                                    DATA                                URBAN AGE                                                           The Urban Age turns its ‘reflexive lens’ to Africa after a series of
    Ricky Burdett and Anna Herrhausen
                                                            25 DYNAMICS OF URBAN GROWTH
                                                                                                    DEVELOPING URBAN FUTURES CONFERENCE                                 international conferences that have allowed us to assess selected
4   DEVELOPING URBAN FUTURES                                                                        ADDIS ABABA                                                         cities in hotspots of urban growth and change across the world.
                                                            26 WHERE PEOPLE LIVE
    Peter Griffiths                                                                                 29 – 30 NOVEMBER 2018                                               For 15 years, the Urban Age project has conducted a worldwide
                                                            30 FLIGHT PATTERNS
                                                            32 COMPARING CITIES                     ORGANISED BY LSE CITIES AT THE                                      investigation into the future of cities, holding conferences, generating
    PERSPECTIVES ON AFRICA                                  34 RESIDENTIAL DENSITY                  LONDON SCHOOL OF ECONOMICS                                          research, curating exhibitions, publishing books (most recently
6   AFRICA’S URBAN TRANSFORMATION                           36 URBAN EXPANSION                      AND THE ALFRED HERRHAUSEN GESELLSCHAFT                              Shaping Cities in an Urban Age) and producing newspapers like this
    Vera Songwe
                                                            37 BUILT FORM                                                                                               one to explore the relationship between the design of cities – how
                                                                                                    URBANAGE.LSECITIES.NET                                              we live, move and work – and how they can be better governed and
7   PARADOXES OF AFRICAN URBANISM                           38 MASS TRANSIT
    Edward Glaeser
                                                            39 POPULAR TRANSIT                                                                                          managed to tackle the challenges of, for example, uncontrolled sprawl,
8   PRODUCTIVITY AND URBAN FORM                                                                     EDITORS                                                             inequality and climate change.
                                                            40 HOW PEOPLE MOVE
    J. Vernon Henderson, Sebastian Kriticos                                                         Ricky Burdett, Director, LSE Cities
    and Tanner Regan                                        42 LIVING IN THE CITY                   Philipp Rode, Executive Director, LSE Cities                           The final leap towards an ‘urban age’ requires urgent exploration.
9   DELIVERING EQUITY LOCALLY                               44 GOVERNANCE STRUCTURES                Peter Griffiths, Managing Editor, LSE Cities                        2.5 billion more people will be living in cities by 2050, the vast majority
    Mpho Parks Tau
                                                            48 AFRICAN URBAN DYNAMICS                                                                                   in Africa and Asia.Yet, much of the infrastructure to support this urban
12 PLACE-MAKING IN DISSONANT TIMES                                                                  SPECIAL THANKS                                                      expansion is yet to be built.To contribute to the exploration, the Urban
    Edgar Pieterse                                                                                  British Academy Cities and Infrastructure Programme
                                                                                                    British Council, Ethiopia                                           Age has carried out new research on African cities in the build-up to the
13 MAKING INCLUSION MORE INCLUSIVE                              AFRICAN CITIES                      Ethiopian Embassy, London                                           Addis Ababa conference on Developing Urban Futures.The dynamics
    Kate Meagher                                                                                    Mathewos Asfaw Bekele, Addis Ababa City Plan Commission
                                                            51 CAPTURING URBAN LIVES                Getachew Betru, CEO, Ethiopia Railways Corporation (2007-17)        of growth and change of ‘young’ sub-Saharan African cities – their size,
14 VISUALISING POPULAR TRANSPORT
    Jacqueline M. Klopp                                                                             Lealem Berhanu Desta, Addis Ababa City Plan Commission              population, density and social and economic profiles – are presented
                                                                                                    Fasil Giorghis, EiABC, Addis Ababa University
16 ETHIOPIA’S RAILWAY REVOLUTION                                                                    Astrid Haas, IGC                                                    alongside those of emerging cities in Asia and more mature urban
                                                                LEARNING FROM ADDIS ABABA
    Philipp Rode                                                                                    Khaled Hussein, UNECA                                               centres of developed nations.The aim is not to create a ranking of
                                                            59 STEERING GROWTH                      Taibat Lawanson, University of Lagos
                                                                Mathewos Asfaw Bekele               Susanna Moorehead, British Ambassador to Ethiopia                   urban performance or ‘success’ but to better inform the decisions that
    GLOBAL CHALLENGES                                                                               Sue Parnell, University of Bristol and University of Cape Town      are taken today that will shape urban lives for generations to come.
                                                            59 A CITY IN FLUX                       Vera Songwe, UNECA
                                                                Fasil Giorghis                      Henry Telli, IGC                                                       The risks associated with steep and unmanaged urban growth are
19 URBANISATION TRENDS
    Eduardo López Moreno                                    60 GATED ADDIS                                                                                              high.The essays in this publication provide context and perspective
19 LOCKING-IN CITIES
                                                                Yeraswork Admassie                  Photography                                                         on the challenges faced by developing cities: from fragmented
    Nicholas Stern and Dimitri Zenghelis                    61 TAKING THE CITY TO THE COUNTRYSIDE   Charlie Rosser (Addis Ababa); Mudondo Evaline (Kampala);
                                                                                                    Emeka Okereke (Lagos); Yann Arthus-Bertrand (Lagos);
                                                                                                                                                                        urbanisation and economic inefficiency, to environmental damage
                                                                Zegeye Cherenet
20 NEW URBAN PERIPHERIES                                                                            Robert Harding (Cape Town); Daniel Hayduk (Dar es Salaam);
                                                                                                    Tony Karumba (Nairobi); Daniel Koßmann (Nairobi).
                                                                                                                                                                        and limited democratic accountability. As the location for the 17th
    Shlomo Angel                                            61 THE NEW FLOWER
                                                                Rahel Shawl                         Cover: Urban development near Bole Arabsa on the edges of
                                                                                                                                                                        Urban Age conference, Addis Ababa, with its distinctive model of
21 AGENCY OF INFORMALITY
    David Satterthwaite
                                                                                                    Addis Ababa. ©Charlie Rosser                                        urban transformation in Africa, is explored in greater detail as a basis
                                                            62 REQUIEM FOR ARAT KILO
                                                                Marco Di Nunzio                     Back cover: Addis Ababa’s Chinese-built light rail transit is the   to frame questions around our shared urban future.
22 ON HOLD IN JAKARTA                                                                               first in sub-Saharan Africa. ©Charlie Rosser
    AbdouMaliq Simone                                       62 INFORMAL LOGICS                                                                                             With the help of over 60 experts and policymakers from 26 cities
                                                                Elias Yitbarek Alemayehu                                                                                in Africa, Asia, Europe, South and North America, the Urban Age
                                                                                                                                                                        conference in Addis Ababa is designed to create common ground
                                                                                                                                                                        to take the debate about Developing Urban Futures further. It is the
                                                                                                                                                                        continuation of a conversation that since 2005 has investigated over
                                                                                                                                                                        40 cities globally, engaged more than 6,000 people and given voice
                                                                                                                                                                        to 500 urban experts, scholars, practitioners and policymakers.
                                                                                                                                                                           We welcome you to the 2018 Urban Age.

                                                                                                                                                                        Ricky Burdett                          Anna Herrhausen
                                                                                                                                                                        Director, Urban Age and                Executive Director,
                                                                                                                                                                        LSE Cities, London School of           Alfred Herrhausen Gesellschaft
                                                                                                                                                                        Economics and Political Science
                                           MAYOR’S OFFICE

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DEVELOPING URBAN FUTURES - London School of Economics
DEVELOPING
URBAN FUTURES                                                                                                                                                                                                                PERSPECTIVES
Peter Griffiths

                                                                                                                                                                                                                             ON AFRICA
In 1950, roughly half the world’s urban            areas like bandages, highlighting a scale        An Urban Age perspective                           production, and a tendency to simplify the
population lived in Europe and North               of change occurring in many cities across        The data and essays in this Urban Age              African story given limited and inaccessible
America. A few decades on, Asia eclipsed           the continent (see page 24). The plethora        newspaper present key aspects of African           locally produced content, has increased the
Europe and is today home to half the world’s       of experiments across Africa’s divergent         urbanisation in a global context. Shlomo           challenge of comparing African cities to
city dwellers. As Europe enters deeper into        cities suggests that perhaps Africa may          Angel’s work shows that, globally, it isn’t        each other and to global examples. Almost
an ageing society, Africa will soon overtake       give birth to new forms of city-making           necessarily rapid population growth (while a       half of all cities in Africa do not have a
it for second position behind Asia. Today,         and find bold ways of responding to rapid        significant contributor) that is driving urban     recent census and accessing data at sufficient
42 per cent of Africans are urban dwellers,        growth, environmental sustainability and         expansion, but sprawl, with cities taking up       quality for study required substantial
about 500 million people. In the next few          reconfiguring cities to be spatially more        more space per person than ever before, a          resources except in a few examples.
decades this number will swell to over 1.4         inclusive in a context of urbanisation           condition known to make cities less produc-             Many of the African cities investigated
billion, with twelve million young people          without industrialisation.                       tive, less sustainable and less inclusive. Since   by the Urban Age simply cannot be known
entering the labour market every year.                 A potential benefit of the continent’s       1990, a basket of 200 cities has expanded          at the same level of detail as more developed
                                                   current phase of urbanisation is that            five times, but their populations have only        cities. With knowledge production about
‘...experiments across                             development models have already been             doubled. This, and Nicholas Stern’s caution        cities still concentrated in the Global North,
                                                   tested sufficiently across the globe. Those      that the next few decades are a once-in-           the risk is that Africa’s urban success stories
 Africa’s divergent                                developing Africa’s urban futures can            history opportunity to build sustainable           remain hidden. But there are exceptions.
                                                   learn from what worked and, perhaps more         cities, frames the challenge of develop-           Cape Town, for instance, encourages the use
 cities suggests that                              important, what didn’t. But the evidence on      ing new urban futures that are resilient           of city data by universities, entrepreneurs
 perhaps Africa may                                the ground is, at best, mixed. Congestion,
                                                   sprawl and inadequate infrastructure prevail
                                                                                                    to technological, economic and climate
                                                                                                    change, and inclusive.
                                                                                                                                                       and the general public to drive innova-
                                                                                                                                                       tion. There is considerable work to be done,
 give birth to new                                 as city leaders attempt to modernise and
                                                   retrofit overstressed urban systems.
                                                                                                         Even so, all the research into understand-
                                                                                                    ing Africa’s existing popular transport
                                                                                                                                                       though, to satisfy Michael Bloomberg’s
                                                                                                                                                       tongue-in-cheek exhortation to city mayors:
 forms of city-making.’                            Policymakers, investors and entrepre-
                                                   neurs are operating in a context where the
                                                                                                    networks, the challenge of connecting
                                                                                                    people and opportunities and how best to
                                                                                                                                                       ‘In God we trust. Everyone else bring data.’
                                                                                                                                                            In an effort to understand the local story,
     The rapidly growing urban areas in            informal economy accounts for 50–80 per          govern urban informality also suggests that        we commissioned a series of commentar-
Africa and Asia may soon set the global            cent of the continent’s GDP, 60–80 per cent      at least some of what might need to be built       ies on cities across Africa. Some came
urban agenda on everything from climate            of employment and 90 per cent of new jobs.       in Africa has already been built. Lagos and        back overwhelmingly negative. The more
change and social inclusion to productiv-          The prevailing form of growth in many            Cairo already have populations as large            objective comparative data collected by LSE
ity and transport innovation, given the            African cities of varying size is ad-hoc         as some of the world’s largest mega-cities:        Cities (see pages 24–49) shows that African
relatively larger populations and significant      and incremental.                                 New York City, Shanghai and Mexico City.           cities do not necessarily perform worst-
need for constructing spaces, connecting               As a continent, Africa’s infrastruc-                                                            of-the-worst. In many instances African
people and supporting livelihoods. Nigeria’s
cities alone will accommodate 189 million
                                                   ture patterns have historically focused
                                                   on connecting resources and commodi-
                                                                                                    ‘Perhaps the biggest                               cities – for now – perform far better than
                                                                                                                                                       cities elsewhere, particularly in resource use.
more people by 2050. Ethiopia is fast moving
from being a predominantly rural economy
                                                   ties to global markets, rather than people
                                                   and ideas. This process has become more
                                                                                                     challenge facing                                  This can offer some reason to hope. It is also
                                                                                                                                                       clear that African countries with the highest
to an urban one, with Addis Ababa growing          complex in the twenty-first century, with         Africa’s urban future                             human development are also the most
at an annual rate of about 4 per cent – twice      China playing a critical – and controver-                                                           urbanised (see page 24), mirroring a trend
the rate of Beijing or Jakarta. In the rush to     sial – role in creating a new generation of       is not the magnitude                              found across the world. As Africa urbanises,
deliver cities, critical infrastructure needs      infrastructure with potentially transforma-                                                         it seems likely that measures of education,
may be overwhelming. According to the              tive impact. Among other forms of invest-         of problems, but                                  health and wellbeing will increase, as will
African Development Bank, two-thirds of
the investments in urban infrastructure
                                                   ment, the growing superpower is replacing
                                                   and extending some of the railways built          the urgency of                                    democratic accountability.
                                                                                                                                                            The Urban Age has investigated models
needed between now and 2050 have yet to be
made, and extensive informal housing will
                                                   by British, French and Portuguese colonial
                                                   governments to connect places in Nigeria,
                                                                                                     implementing                                      of sustainable development in other parts
                                                                                                                                                       of the world where urbanisation is largely
require some form of upgrading. But can the
grace of an incremental growth narrative be
                                                   Kenya and Ethiopia. This infrastructure
                                                   may allow cities in the world’s most unified
                                                                                                     solutions.’                                       complete. Will Africa produce new models,
                                                                                                                                                       rendering them more inclusive, productive
afforded to African cities? London grew its        regional union (the African Union covers         In the quest to have a story that is more          and liveable? The evidence, in part, suggests
metro rail network over 150 years; Shanghai        the entire continent) to link not just to the    connected to a modern and global narrative,        this is possible. Greater connectivity and
built the world’s longest metro in little over     outside world, but also internally.              Fasil Giorghis warns of the importance             trade between cities, which could soon be
15 years. In a more technologically advanced           Intra-regional trade in Africa is only       of retaining a past, not only in symbolic          part of the largest free trade area in terms of
world than Victorian England, the question         18 per cent of total exports versus 59 per       architecture, but also in the texture of           participating countries since the formation
of how to design and plan cities may never         cent and 69 per cent for Asia and Europe.        connection on the streets. These are qualities     of the World Trade Organization2, may
have been so important.                            As African cities connect to each other          that, once lost, can never be designed back        also result in a far less fragmented urban
     Since the start of the millennium there       and share ideas, opportunities to negotiate      in. Edgar Pieterse’s provocation is that           landscape. Perhaps the biggest challenge
has been renewed interest in building              more favourable trade terms increase.            citizen participation experiments, like in         facing Africa’s urban future is not the
tall in cities as diverse as Cairo, Maputo,        Africa’s changing flight patterns (see page      Nigeria’s Port Harcourt, could be part of the      magnitude of problems, but the urgency of
Abuja, Kampala, Cape Town, Durban,                 30) illustrate this: growth has not only been    solution to retrofitting existing pieces of city   implementing solutions.
Addis Ababa, Dar es Salaam, Luanda and             directed at China and India – flights within     instead of rebuilding them from scratch.
                                                                                                                                                       1. Anderson, David and Richard Rathbone. Africa’s Urban Past. 2000.
Port Louis. A building in Johannesburg’s           Africa have also doubled in the last 15 years.   An extensive community mapping project             2. Crabtree, Justina. 2018. ‘Africa is on the verge of forming the
financial district has just become the new         Trade figures over a similar period mirror       plugged a gap in available data, enabling the      largest free trade area since the World Trade Organization’ in
                                                                                                                                                       CNBC, 20 March 2018.
tallest building in Africa after 45 years,         this trend, with export and import growth        possibility of delivering urban infrastruc-
highlighting a growing optimism in                 between Africa and China and India almost        tures in informally planned areas.
Africa’s cities. Plans for even taller towers in   doubling. And, as China taught the English           A significant challenge in understand-         Peter Griffiths is the Managing Editor of
Casablanca, Nairobi, Accra and Abuja are on        to drink tea, Ethiopia is taking coffee to       ing Africa’s urban conditions is its vast          LSE Cities.
the drawing board.                                 China, with one entrepreneur betting on          complexity. While some areas are among
     The state-led development model               an empire of 100 cafes by 2022, highlighting     the least urbanised globally (see page 26),
in Addis Ababa is perhaps atypical of              how culture continues to flow from               others can trace urban histories back further                                                                            Street vendor, Kampala: Africa’s cities, like all
the African story. Green and yellow                African shores.                                  than much of Europe1. Language barriers in                                                                               others, thrive by maximising opportunities
corrugated-iron sheets enclose demolished                                                           Anglo-, Franco- and Lusophone knowledge                                                                                  for transaction.
                                                                                                                                                                                                                             ©Mudondo Evaline

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DEVELOPING URBAN FUTURES - London School of Economics
AFRICA’S URBAN
                                                                                                  encourage construction industries to form,        Diverse and connected system                     disputes12. The programme improved gender        The way forward                                  industrial productivity. At the same time,                             3. World Bank. 2015. Stocktaking of the Housing Sector in Sub-Saharan
                                                                                                                                                                                                                                                                                                                                                                              Africa: Challenges and opportunities.
                                                                                                  including basic industries such as cement         of cities                                        equity through regulations and education,        African cities present common opportunities      secondary cities and well-located SEZs with                            4. Dasgupta, B., S. Lall and N. Lozano-Gracia. 2014. ‘Urbanization and
                                                                                                  and steel. With the expanding housing and         African countries are often characterised        resulting in the inclusion of married            to expand industries to meet urban domestic      the right infrastructure can balance the                               Housing Investment.’ Policy Research Working Paper. Washington,
                                                                                                                                                                                                                                                                                                                                                                              D.C.: World Bank.
                                                                                                  construction sector and sophistication of the     by unbalanced national urban systems with        women’s names on plots and enhanced              and regional demand while generating jobs        needs of sectors for access to inputs, labour,                         5. Ncube, M., C. Lufumpa and S. Kayizzi-Mugerwa. 2011. ‘The Middle

TRANSFORMATION
                                                                                                  real estate market, there are good prospects      a very large primary city and less competi-      gender parity in inheritance rights13.           and supporting development outcomes,             markets and knowledge.                                                 of The Pyramid: Dynamics of the Middle Class in Africa.’ Market Brief.
                                                                                                                                                                                                                                                                                                                                                                              Abidjan, Côte d’Ivoire: African Development Bank.
                                                                                                  to develop industry further by upgrading          tive smaller cities. Urban systems tend to            Agglomeration economies are also            including agro-processing, urban housing              Further, despite the importance of cities                         6. Lozano-Garcia, N., and C. Young. 2014. ‘Housing Consumption and
                                                                                                  skills and developing design, contracting         be top heavy with expensive and crowded          undercut by weak connectivity and poor           construction and urban infrastructure            for industrial development and vice versa,                             Urbanization’. Washington, DC: World Bank.
                                                                                                                                                                                                                                                                                                                                                                              7. Gutman, J., A. Sy and S. Chattopadhyay. 2015. Financing African
                                                                                                  and consulting capacities.                        primary cities, and secondary cities that        urban mobility. The inability of people to       construction. Across the continent, national,    the planning processes and institutional                               Infrastructure: Can the World Deliver? Washington, D.C.: Brookings
                                                                                                      African per capita spending on urban          are too small to be viable alternatives for      move easily through cities shrinks opportu-      regional and city-level policymakers can         frameworks are disjointed. Policies are often                          Institution.
                                                                                                                                                                                                                                                                                                                                                                              8.Gebreeyesus, M. 2016. ‘Industrial policy and development in Ethiopia.’

Vera Songwe                                                                                       housing is consistently higher than in rural
                                                                                                  areas, pointing to growing opportunities.
                                                                                                                                                    competitive industries. In response, some
                                                                                                                                                    African countries have put in place policies
                                                                                                                                                                                                     nities for labour pooling and knowledge
                                                                                                                                                                                                     sharing, both critical to increased firm
                                                                                                                                                                                                                                                      make the most of these opportunities, but
                                                                                                                                                                                                                                                      only if they take into account the following
                                                                                                                                                                                                                                                                                                       formulated and implemented in ‘silos,’ with
                                                                                                                                                                                                                                                                                                       little analysis of the impact of urban trends
                                                                                                                                                                                                                                                                                                                                                                              In C. Newman, J. Page, J. Rand, A. Shimeles, M. Söderbom, and F. Tarp
                                                                                                                                                                                                                                                                                                                                                                              (eds.), Manufacturing Transformation: Comparative studies of industrial
                                                                                                                                                                                                                                                                                                                                                                              development in Africa and emerging Asia (pp. 27–49). Helsinki:
                                                                                                  However, the sector is struggling in many         to rebalance urban systems, which risks          productivity. One study has revealed that        interconnected issues that will enable cities    and economic geography on industrialisa-                               UNU-WIDER.
                                                                                                  countries as institutional problems account       wasting resources.                               there is a higher productivity gap within        to deliver sustainable change.                   tion in national development plans.                                    9.Foster, V., and Morella, E. 2010. Ethiopia’s Infrastructure: A
                                                                                                                                                                                                                                                                                                                                                                              Continental Perspective.
Africa, along with Asia, is the epicentre        Using urban demand to drive industrial           for an inefficient supply chain and expensive         Ethiopia’s urban policies focus on           Kenya’s industrial sector than in India or                                                             To leverage the opportunities created                             10. Ministry of Infrastructure. 2015. Habitat III: Rwanda Report. Kigali:
of global urbanisation. This transition          development                                      housing units, highlighting the need to           promoting planned secondary city develop-        China, with the productivity differential        Implementing policies: Administrative            by urban demand, a host of strategic                                   Government of Rwanda.
                                                                                                                                                                                                                                                                                                                                                                              11. DAI. n.d.. Support for Land Tenure Regularisation. Retrieved from
will undoubtedly result in considerable          Industrial targets tied to urbanisation can      remove regulatory barriers. Housing is            ment in advance of urbanisation, largely         between firms at the 80th and 20th percen-       arrangements and budgetary support               actions should support activities at all                               DAI.com.
challenges including demand for employ-          tap into Africa’s rapid urban growth to          55 per cent more expensive in urban Africa        as industrial enterprises are relatively         tile three times more than in India and over     should mirror a coordinated structure            stages of targeted value chains in agricul-                            12. Gillingham, P., and Buckle, F. 2014. Rwanda Land Tenure
                                                                                                                                                                                                                                                                                                                                                                              Regularisation Case Study. London: Evidence on Demand.
ment, services and infrastructure. At the        develop domestic and regional markets for        than in other developing countries’ urban         clustered. In 2009/10, Addis Ababa had           four times more than in China.                   for urban and industrial development             ture, manufacturing and services, such as                              13. Ali, D. A., Deininger, K., and Goldstein, M. 2013. ‘Environmental and
same time, it presents significant opportuni-    domestic industrial products, including          areas4. Typical house-price-to-income ratio       11 times the number of manufacturing                  Insufficient, poorly planned and discon-    policies. Disconnects between these              building skills, improving infrastructure,                             gender impacts of land tenure regularization in Africa: Pilot evidence
                                                                                                                                                                                                                                                                                                                                                                              from Rwanda.’ Journal of Development Economics, 110, 262–275.
ties to enable structural transformation, if     through leveraging the recently agreed           globally ranges between 3:1 and 5:1, but often    enterprises of the second city on this           nected road space alongside increasing           elements are often the cause of failures         expanding access to business services and                              14. UNECA. 1962. Workshop on Urbanization in Africa. Addis Ababa.
well planned and managed.                        African Continental Free Trade Area.             in Africa, even for public service employees      metric (Awassa)8.                                motorisation has led to choking levels of        in implementation.                               promoting spatial development policies.
     Urbanisation in many African countries      Africa’s urbanisation is in many places          whose average income is higher than the               Road and railway linkages connecting         congestion in many cities. Road investments                                                                                                                              Vera Songwe is Executive Secretary of the
has not been driven by improving product-        accompanied by a growing consumer class          majority’s, the ratio goes above 10:1. The        secondary cities to each other and to their      are often skewed towards highways and            Institutional capacity: Implementing urban       1. Lemprecht, N. 2016. South Africa Automotive Export Manual.
                                                                                                                                                                                                                                                                                                       Pretoria, South Africa: Automotive Industry Export Council.
                                                                                                                                                                                                                                                                                                                                                                              United Nations Economic Commission for
ivity. Indeed, most countries are urbanis-       with more purchasing power and prefer-           cheapest formally built housing, too, is much     surrounding rural areas form a central           ring roads rather than a more fine-grained       and industrial policies in a coordinated         2. Oxford Business Group. 2016. Egypt’s domestic automotive industry   Africa.
                                                                                                                                                                                                                                                                                                       shows promise.
ing rapidly amid declining or stagnant           ences for manufactured goods. Changing           higher in Africa on this ratio than in other      plank for developing regional growth poles.      scale of urban connectivity, leading to          manner requires a sound institutional
industrial output and low agricultural           consumption patterns have already created        developing regions.                               During the first decade of this century,         only temporary relief as excess road space       framework matching the structure of the
productivity. One useful way to group            opportunities for domestic industry,                 The level and growth of per capita GDP        Ethiopia allocated 3 per cent of GDP to          is quickly filled up by more drivers and as      policies. Many African countries still face

                                                                                                                                                                                                                                                                                                       PARADOXES
African countries in terms of urbanisa-          especially in the automotive, food, housing      will be major contributors to upgrading           investment in roads, bringing the quality        cities de-densify in response to new periph-     institutional constraints for coordinating
tion is to consider their position in natural    and the infrastructure sectors.                  urban housing supplies. Middle-class              of the trunk network up to the level of          eral connections. However, five quantita-        the two strands – urban and industrial.
resource exports and economic diversifica-            Automobile consumption in Africa            households tend to own their own homes            other low-income countries in Africa9.           tive studies on industrial clusters in Africa
tion. Countries fall into four basic groups      is associated with rising incomes and            and reside in bigger and more permanent           Current and planned railway mega-projects,       suggest that agglomeration economies are         Finding the financing: Empowering urban
with similar development challenges:             continued urbanisation. With the sector’s        housing, equipped with modern durable             including the Addis Ababa–Djibouti railway       at work, confirming that urban areas hold        local authorities with financial capacity

                                                                                                                                                                                                                                                                                                       OF AFRICAN
pre-transition countries, transition             potential to meet the growing demand             goods. In Algeria, Morocco, South Africa          project (see page 16) and road and railway       benefits for firms in Africa.                    to better plan and manage cities is crucial
countries, diversified economies and natural     of the urban middle class for vehicles           and Tunisia more than 60 per cent of              connections to agricultural hinterlands, are                                                      if cities are to better support industrial
resource exporters (see page 48). Pre-transi-    domestically, or regionally, policies can        households own their homes, in part a             designed to facilitate trade, agro-processing    Harnessing urbanisation for                      development. The Addis Ababa Action
tion countries (for example, Ethiopia),          target the sector to foster industrialisation    reflection of the rise of the middle class5.      and industrial development.                      industrialisation: policy priorities             Agenda, for instance, recognised the role

                                                                                                                                                                                                                                                                                                       URBANISM
have an opportunity to set a trajectory          and generate learning for later entry            The quality of their housing also tends to be         In Egypt, crowding in urban centres,         Today’s policy decisions for urban design        of subnational actors in financing for
for well-planned development of cities,          to global value chains.                          better, with more solidly built roofs, walls      particularly Greater Cairo and Alexandria,       and infrastructure will have a long-term         development. But decentralisation without
balanced development of urban systems                 South Africa – the continent’s leading      and floors, and less overcrowding6.               as well as urban expansion onto precious         lock-in effect and thus shape the develop-       financing, and weak local capacities for
and diversified, labour-rich industrial target   producer – illustrates the industry’s                There is need for governments to actively     agricultural land, led the government to         ment path of Africa’s cities. But to be more     financial management and revenue genera-
sectors. They also face challenges of limited    potential. Largely reflecting policies since     address the persistent formal housing gap for     develop a New Cities programme from              productive and tap into urban advantages         tion, challenge many African cities.
public resources, low capacities (particularly   1995, it domestically produced 588,000           families who will not enter the middle class      1977. Twenty-two new cities have been            for industrial development, policies need to                                                      Edward Glaeser
outside primary cities) and low levels of        vehicles and exported 329,053 in 2017.           in the coming decades. Such programmes            established, which fall into the following       be more integrated in the following areas:       Knowledge: A critical challenge in harmon-
infrastructure.                                  The automotive industry, which has 150           can be directly tied to industrialisation         categories: primarily residential satellite                                                       ising urban and industrial development is
     Transition countries (Cameroon,             component companies, contributed 6.9             policies, as has been done in Ethiopia.           centres around Cairo; twin cities intended to    Centrality of national development planning:     the paucity of knowledge and evidence. In        Africa’s past is rural. Africa’s future is urban.                          The lessons of the wealthy world’s past
Mozambique and Rwanda) tend to be                per cent of GDP in 2017. Gauteng, though         Similarly, the investment in housing that         have an economic base but connected to an        Policymakers need to leverage urban drivers      particular, spatial economic data, especially    The growth of Africa’s cities offers tremen-                           are particularly important today, but so
early in the urbanisation process, but           geographically the smallest province in          North African countries like Morocco              existing smaller city; and independent cities,   such as increase in aggregate demand             at subnational level, are lacking, which         dous economic, social and political upsides.                           are the lessons that come from the more
already experiencing some of the urban           South Africa, is the most populous with          and Tunisia have made since the 1990s is          with their own industrial base.                  and consumption by maximising urban              constrains progress. Closer cooperation is       Urban agglomerations have generated                                    recent urbanisation of Latin America. Just
diseconomies. They can still channel             an estimated population of 14.7 million. It      reflected in impressive changes in housing                                                         productivity enablers and addressing             thus needed between urban agencies and           industrialisation, cultural breakthroughs                              like Africa today, many Latin American
emerging growth to invest in key infrastruc-     also has the most automotive suppliers, as       conditions. In Morocco the share of the           Better-functioning cities                        barriers through a coherent set of sound         national statistical offices.                    and democratisation, but there are also                                countries urbanised before they industri-
ture and create well placed and serviced         it offers investors business opportunities,      urban population living in slums fell from 37     The power of agglomeration economies gives       urban development policies, planning                                                              downsides of urbanisation.                                             alised. São Paulo and Mexico have dealt with
industrial locations, linking industry to        including a well-developed infrastructure.       per cent in 1990 to 13 per cent in 2005.          large cities a major productive advantage.       and investments aligned to industrial            Conclusion                                            Rural life in poor countries offers much                          crime and traffic congestion for decades.
rural resources. Diversified economies           The Gauteng Growth and Development                   Africa’s urban housing deficit is             Firms in cities have better access to labour,    development goals and priorities. Many           Africa is undergoing a rapid urban transi-       less chance for change than urbanisation.                              They lacked resources, just like many
(Mauritius and South Africa) must manage         Agency, the Automotive Industry Develop-         accompanied by a huge infrastructure              markets, inputs and knowledge sharing.           African states have recently re-recognised       tion with considerable implications for          Despite the challenges of Africa’s cities, the                         African cities, and often responded with
the challenges of urban growth to maximise       ment Centre and the Automotive Supplier          deficit. The continent lags behind the rest       However, many large cities in Africa are         the need for national development plans,         industrialisation, a key imperative for          right response is to fight for improvements in                         creative solutions.
the benefits of agglomeration economies and      Park provide support to the industry and         of the world in access to electricity, internet   underperforming, with the potential of           including long-term visions and the means        inclusive structural transformation.             the quality of urban government. For when                                  The scope of the challenge of African
the continued dynamism of their cities. They     are charged with promoting its trade and         penetration and access to improved water,         agglomeration economies undercut by              of achieving them. South Africa’s 2030           Urbanisation and industrialisation are           density is managed well, cities can be places                          cities generates a temptation to just give up
face crucial trade-offs between investing        investment and implementing projects.            and has large road-maintenance needs.             poorly functioning land and property             National Development Plan, for example,          closely linked elsewhere, but in Africa          of remarkable pleasure and productivity.                               on urbanisation, but there is little future in
limited resources, primarily in established      An additional enabling factor is South           West Africa has lower road density and            markets, inadequate mobility options and         considers urban growth an opportunity.           these links are weak. Where they exist, the      Singapore, for example, manages to be clean,                           rural poverty. Cities can provide a pathway
and growing cities and industries, or            Africa’s position as a major supplier of         road quality than other regions; North            disconnected and sprawling urban form                                                             urbanisation-industrialisation nexus has         healthy and relatively uncongested. Without                            out of poverty into prosperity, and they are
attempting to balance development and            platinum and other platinum-group metals         Africa has a higher prevalence of paved           including residential segregation.               Industrial policies should enable sector         often developed organically rather than          proper management, density can diminish                                the best hope for political improvement.
industrialise lagging regions. Natural           required by the automotive industry. South       roads and better access to electricity; East          Poorly functioning land markets lead to      targeting: Investments and public resources      through deliberate policy responses, even        quality of life.                                                       Improving the quality of life in developing-
resource exporters (Republic of Congo and        Africa meets 12 per cent of the demand for       and Southern Africa do best on internet           disconnect between the productive potential      will have more impact if they lift certain       though the importance of coordinating                 Cities are the absence of physical space                          world cities brings the hope that those cities
Gabon) face some of the toughest challenges.     catalytic converters and has 70 per cent of      servers. The annual financing requirement         of a city and the cost of land. For instance,    industrial subsectors and their value chains     industrial and urban development was             between human beings. That closeness                                   can enrich their countries and bring more
Large, export-driven consumption cities          the world’s chromium, used in producing          for infrastructure investment in Africa           the cost of non-residential land is not          to achieve the development goals in the          recognised by African policymakers as far        enables the flow of goods and ideas, and                               freedom and political accountability. The
tend to have high informality and inequal-       modern auto exhausts1.                           excluding North Africa is estimated at            necessarily correlated with GDP per capita       national development plan. Targeting             back as the 1960s14. The challenge for Africa    the use of shared urban joys, including                                quest for better cities in the developing world
ity, and job-poor sectors can crowd out               Similarly, in Morocco industrial policies   $93 billion7, but this covers rural and urban     in Africa’s cities. Tunis and Nouakchott,        specific subsectors for industrialisation and    is thus to transform its economic growth         museums, parks and restaurants. But just                               is one of the most important battles of the
industries that generate more jobs and more      have fostered a large and fast-expand-           areas. With rapid urbanisation and growing        for example, have lower rents while Lusaka       managing the trade-offs between investment       into sustained and inclusive development         as urban proximity makes it easier to share                            twenty-first century.
balanced development. However, these             ing automotive industry, including a             cities, countries will need to simultaneously     and Dakar have higher rents relative to per      strategies should consider the comparative       by harnessing urbanisation to promote            a laugh or an insight, it also makes it easier
exporters also have huge opportunities to        Renault factory in the economic free zone        catch up with the backlog, invest for the         capita GDP.                                      advantages of these subsectors.                  economic diversification, with a special         to share a virus. Density enables harmful                              The race against time
use financial resources for infrastructure       municipality of Melloussa, near Tangiers.        growing population and spend on mainte-               Rwanda has proven that large-scale                                                            focus on industrialisation that creates          involuntary transactions, like robberies, just                         Europe urbanised over centuries. Africa is
investments, leverage industrial linkages        The industry is now the country’s largest        nance. In the last two decades the region         land regularisation is financially and           Spatial considerations in industrial policies:   jobs, reduces inequality and poverty, and        as it enables benign voluntary transactions.                           urbanising over decades. Communities, like
to successful export sectors and harness         export sector, dethroning phosphate              has seen significant growth in infrastruc-        administratively feasible. As part of its        Successful industrial policies should be         enhances access to basic services.               The downsides of density can readily spiral                            Kibera in Nairobi or Dunoon outside Cape
the power of consumption as a driver of          exports. Automobile production is also on        ture investment, with an increasing share         land reform policies, the Land Tenure            tailored to the spatial needs of targeted             Domestic and regional markets are           out of control, unless they are managed by                             Town, emerge in a startlingly short period of
industrial development.                          the rise in Algeria, Egypt has 15 car assembly   of private sector finance relative to official    Regularisation Programme identified and          subsectors and firms, and different types        expanding, creating opportunities for            effective local government.                                            time. Whereas European cities grew because
     African leaders have already affirmed the   plants targeting the domestic market2 and        development assistance, including growing         registered 8.4 million plots, with a trial       of cities should be developed to match           African industries to meet growing, and               Many of the wealthy cities of the Global                          of massive demand for industrial labour in
need to harness the potential of urbanisa-       Kenya and Ethiopia have emerging vehicle         investment by China. Still, 65 per cent of        period in 2008–10 and full scaling-up            different industry needs. Spatial targeting of   shifting, demand. Strategic and expanding        North dealt with these by-products of urban                            cities like Manchester in the UK and Lille
tion for structural transformation through       assembly sectors.                                the total comes from public budgets. This         in 2010–1310. The programme employed             investments and developing a functionally        sectors, supported by domestic policy, are in    crowding so long ago that they may have                                in France, in many cases, urban growth in
the Common African Position on the New                In the area of construction, growth,        might be lower than the 5–6 per cent of GDP       110,000 Rwandans, with 99 per cent working       complementary system of cities and towns         a position to leverage this demand to boost      forgotten how difficult it was to make Paris                           Africa reflects a flight from conflict, agricul-
Urban Agenda that emerged from Habitat III       particularly for housing and urban               advocated by development practitioners,           in their own communities, while keeping          must be embedded in industrial and urban         industrial development. Still, policies that     or New York liveable. Only massive invest-                             tural desperation, or high fertility.
as the global urban development framework        infrastructure, reflects rising urban            but countries such as Angola, Cabo Verde          the cost per title at approximately $7, which    policies. Special economic zones (SEZs)          are well targeted can create viable industrial   ments in infrastructure and incentives                                     Consequently, African cities face the
for the next two decades, underscoring the       demand. Housing is a major source of wealth      and Lesotho are investing more than               is extremely low for such programmes11.          offer one option for spatially connecting        locations that meet the needs of industry        turned London from a place of early death                              dual challenge of enhancing quality of life
role of cities in structural transformation      creation and savings, with investments           8 per cent of GDP7.                               As of 2014, 81 per cent of identified plots      industry with the benefits of agglomeration      without impinging on the economic power          to a city of long life. Even as recently as                            and economic viability. East Asian urbanis-
and sustainable development.                     accounting for 6 per cent of GDP, and for                                                          had been approved for titling (freehold and      economies in pockets of well-serviced land.      of large cities. Supporting the role of large    1992, murder continued to haunt New York.                              ers such as China and Japan also followed
                                                 each house built, five jobs can be created3.                                                       leasehold), with only 0.1 per cent remaining                                                      cities to be centres of knowledge and innova-    Yet today that city is remarkably safe. This                           the path of industrialisation, but will this
                                                 Housing, through backward linkages, can                                                            unregistered parcels with unresolved                                                              tion can help leverage their potential for       change didn’t happen easily.                                           path be open to Africa?

6                                                                                                                                                                                                                                                                                                                                                                                                                                                    7
DEVELOPING URBAN FUTURES - London School of Economics
In a sense, African cities are in a race          In many cases, implementing local             Consequently, there is a particularly strong      agenda, but that institutional reform must       their urban areas. In Ethiopia, for instance,    done by private means; occasionally by car,       is also difficult, which makes it extremely                         while making reforms to physical planning
against time. Some cities are gradually           property taxes requires a number of difficult      need to provide incentives that complement        be sensitive to local conditions. Ideally that   90 per cent of the workforce is in agricul-      motorbike or bicycle, but most often on foot.     challenging for a developer to assemble plots                       schemes to involve further public participa-
improving their transportation infrastruc-        institutional reforms, including the consti-       sewerage infrastructure.                          reform will lead to the ability of current       ture, as is close to 15 per cent of the urban    In major cities like Nairobi, Lagos and Addis     to pursue large-scale developments. The                             tion. In Dar es Salaam, the government has
ture and experiencing capital-deepening,          tutional ability to tax, establish land records,                                                     slum dwellers to upgrade their residences        population. For other African countries          Ababa, 30–45 per cent of trips are made on        result is two very different-looking cities.                        made efforts to establish universal access
but at the same time, industry is continu-        create tools for property value assessment         Property and ownership                            and increase the number of people who            – including Mali, Cameroon, Tanzania,            foot, and as many as 70 per cent of trips in          In Dar 89 per cent of buildings are four                        to formalised tenure security but has faced
ing to mechanise. If global automation is         and, in many places, the replacement of            In much of urban Africa, property rights are      can thrive within the city. Yet it is also       Uganda, Rwanda and Kenya – the propor-           Kampala are made by walking (see page 40).        metres high or less (meaning one storey),                           prohibitively high survey costs. Like Kigali,
sufficiently fast, then African industry will     informal land occupancy by formal land             murky at best. One major agenda for Africa        possible that reform will lead to land-taking    tion of primary sector activity in urban         This limits households to small distances         while in Nairobi it is only 38 per cent. Of the                     Dar has experimented with new forms
find it difficult to compete despite relatively   ownership. In India, Mumbai’s ability to act       is to regularise ownership of urban land in a     and expropriation of the poor. Improving         areas ranges from 12 to 40 per cent, as          around their residencies and impedes their        taller structures, 8 per cent of buildings in                       of derivative right tenure using satellite-
low wages.                                        is restricted because the city is controlled       way that is both fair and efficient.              institutions in an equitable fashion must be a   compared to countries like India where           access to jobs. Another striking feature of       Nairobi are over 16 metres, or five storeys,                        image-based surveying methods. Another
     In the West, cities have moved from          by the state government of Maharashtra.                 Westerners often act as if the nature        big part of making African cities                the share is closer to 7 per cent. Services      African cities is that motorised transporta-      while for Dar it is 2 per cent.                                     approach that has seen particular success
manufacturing to services. Yet to be success-     Property records are often murky, and local        of land ownership is somehow obvious. It          more liveable.                                   employment is another key issue. Although        tion is primarily informal – with matatus,                                                                            in peri-urban areas of Dar that are yet to be
ful, these service-oriented cities must           real estate expertise is often limited. Most       is not. Western conceptions of property               There is much magic in developing world      it comprises more than half of GDP, Africa       tuk-tuks and boda bodas being the standard        Average building height                                             intensely developed, such as the Kigamboni
still have a viable export base, such as the      importantly, vast swathes of the urban world       ownership actually combine a wide range           cities. Rural–urban migrants come to these       has had limited development of high-value        examples. Planted on congested streets with                       100
                                                                                                                                                                                                                                                                                                                                                                               district, was to encourage private companies
financial sector of London or technology in       lack formal land titling, which prevents the       of property rights and obligations. For           places because they are hoping to find a         industries like financial and business           slow speeds and uncertain commute times,                                                              Nairobi         to supply surveyed land data to the
San Francisco. Today, many African cities         owners from using their property to finance        example, ownership is related to the right to     better future. They are not fools and they       services. Among the largest cities in Africa,    they are not enough to transform mobility                         80
                                                                                                                                                                                                                                                                                                                                                               Dar es Salaam
                                                                                                                                                                                                                                                                                                                                                                               municipal offices. It is important that such
also specialise in services, and rely on the      entrepreneurship and prevents the city             be free from expropriation both by the state      are not misled. For all of Rio de Janeiro’s      typically less than 12 per cent of employment    in cities.                                                                                                            efforts are able to keep ahead of intensive
export of natural resources. Will this be         from imposing civic obligations, like taxes,       and private actors, the right to sell land, the   problems, it offers much more than the           is in tradable services, and under 10 per cent       The question is whether the building                                                                              development, as evidence from Tanzania
                                                                                                                                                                                                                                                                                                                           60
enough in the middle twenty-first century?        on the owners.                                     right to mortgage land, and the right to build    impoverished rural north-east of Brazil.         in manufacturing.                                of modern transit systems in developing                                                                               shows that pre-emptive action in planning
     I remain optimistic because cities have           When local expertise is lacking and           on that land. Typically, the poorer residents         Yet these new urbanites do face risks             Nevertheless, recent evidence suggests      countries, such as the roll-out of the Bus                                                                            and surveying before settlement can lead to
                                                                                                                                                                                                                                                                                                                           40
long innovated their way to prosperity.           vulnerability to local corruption is consider-     of African cities can occupy their land with      from disease and crime. They will spend          that there are large income gains to be made     Rapid Transit system in Dar es Salaam,                                                                                much more efficient urban development
I expect the same for the cities of Africa.       able, property tax assessment can be central-      little fear of expropriation, but they often      far too much time crowded into jitneys or        by living in Africa’s denser areas, and that     could have a similar impact on employment

                                                                                                                                                                                                                                                                                                          Built area (%)
                                                                                                                                                                                                                                                                                                                           20
Entrepreneurship is abundant in Lagos,            ised and essentially automated. Simple             lack the other rights that are associated with    minibus taxis sitting in traffic. Living in      these gains exist across multiple industry       clusters and centralisation as rail did in                                                                            Conclusion
Nairobi, Addis Ababa and Johannesburg.            statistical models can evaluate land values        property ownership in the west. Typically,        dense, poorly managed cities will increase       sectors. On average, based on data from          London historically. Bogotá’s TransMilenio                                                                            Being a competitive city has many
                                                                                                                                                                                                                                                                                                                            0
Yet for these cities to survive, they must        based on plot size and distance from the city      well-meaning western attempts to promote          stress in their lives.                           five African countries, households in the        BRT system suggests it can. Commuting                                   under 4      4-8   8-16   16-28     28+       dimensions; for instance, better human
attract and retain talented job creators.         centre. Structures can be evaluated by using       property ownership focus on land registra-            Developing-world cities can be               top 25th percentile of cities by population      distances have risen, employment has                                    Height (m)                                    capital through investments in education
Quality of life is important, not only for        images, which can either come from Google          tion, not on the set of rights that may or may    improved. Simple management tools can            size earn double the income of their rural       clustered into productive locations and city                                                                          and training; better provision of support-
its own sake, but also because cities attract     Street View or be taken by local governments       not come with registered ownership.               improve policing. Singapore instituted           counterparts. Perhaps even more salient          in-migration and employment have both                 The highest buildings are in the city                           ing legal and financial institutions; and
talent by being pleasant.                         themselves. By combining these images                   Expanding the number of rights associ-       congestion pricing using paper permits,          are the returns to urban density, noting that    increased – leading to substantial welfare        centres, but outside the centre, Dar is mostly                      improved integration and coordination
     The poverty of African cities tends to       with a database on property sales, machine         ated with property ownership in African           not high-tech wizardry. Even water and           households benefit from both the overall         gains due to the BRT. Challenges still            one-storey buildings while Nairobi has                              across multiple levels of government. These
push local governments to focus on service        learning can provide a reasonably accurate         cities and townships is important, but far        sewerage improvements are possible. These        urban density of the city they live in and the   remain; in particular, zoning restrictions on     much more height and intensity of land use.                         areas for policy reform, which we have not
delivery for the poor, and this is largely        model for assessing the values of every home       from straightforward. For example, the right      changes may often be difficult, but they are     local neighbourhood around them. Within          building height have limited the extent of        It appears that property rights in Nairobi                          been able to focus on here, are not only
appropriate. But if cities are going to be        in a city. Nationwide property value assess-       to build is challenged by building codes.         also necessary. These cities are the best hope   a set of 115 larger cities in these countries,   economic clustering, thus inhibiting the full     have facilitated intensive investment, while                        critical but also highly complementary. But
successful economically, they must also           ment can also limit abuse of compulsory            Poorer residents may want to build higher-        for the poorer parts of the planet.              a household moving from the tenth to 90th        benefits of the TransMilenio.                     weaker rights in Dar have not. Of course,                           there should be no doubt that if African
be appealing to their wealthier residents.        purchase or eminent domain at the local            density homes, but they may be unable                                                              percentile of average city density across            The Colombian example highlights the          there are other differences. Tanzania is                            cities hope to succeed and accommodate the
One useful framework is to think of city          level by providing external estimates of the       to build safely enough to satisfy existing        Edward L. Glaeser is the Fred and Eleanor        cities increases income by 290 per cent, and     fact that installing transport infrastructure     poorer with a different culture and Dar’s                           needs of their rapidly expanding popula-
governments as having a pair of tasks, which      value of appropriated land.                        building codes. The right answer is not           Glimp Professor of Economics in the              in moving from the tenth to 90th percentile      in isolation can mean limited success             climate is much warmer.                                             tions, they will need to get transport and
require radically different approaches.                Providing infrastructure requires a           obvious, since both density and safety are        Faculty of Arts and Sciences at Harvard          of neighbourhood density within cities by 89     for truly tackling mobility challenges.               Land institutions and their impact on                           land use policy right.
     The first task is wealth creation through    source of financing, but it also requires          worthy objectives.                                University. A version of this essay appears      per cent. Moving people out of low-density       Accessibility for an everyday citizen must        urban density are essential considerations
the management of urban real estate.              institutional design. Should the infrastruc-            Institutional reform around property         in Shaping Cities in an Urban Age.               settlements and into high-density living has     be considered in terms of three factors           for national, municipal and local govern-                           J. Vernon Henderson is the School
Essentially, governments can think of             ture provider be public or private? If             rights must be part of the African urban                                                           huge impacts on income.                          – distance, time and cost – that all relate       ments in Africa. Particularly because many                          Professor of Economic Geography at the
themselves as operating an incredibly             public, should it be part of the city govern-                                                                                                              These relative gains from increased         closely to the proximity of citizens to jobs      countries are currently undergoing major                            LSE, Sebastian Kriticos is a development
large and complex for-profit real estate          ment or an independent agency? There is                                                                                                               density are important, but they obscure the      and other urban services. This is why any         reforms to streamline land administration                           economist working on urbanisation policy
development company. This company                 no easy answer. Private companies can                                                                                                                 fact that absolute productivity in Africa is     successful transport policy has to be closely     and registration, as well as to update overall                      with the IGC Cities that Work initiative and

                                                                                                     PRODUCTIVITY
will only succeed if it enables the for-profit    save costs, but they can also corrupt local                                                                                                           low compared to the rest of the develop-         coordinated with land use planning in order       standards and spatial planning principles.                          Tanner Regan is a PhD student in Economic
sector of the economy to thrive, and if it        government. Independent authorities may                                                                                                               ing world. The issue is that much of the         to facilitate the intensive, high-density         Kigali, for instance, has used satellite                            Geography at the LSE.
entices talented entrepreneurs to locate          become centres of excellence, or they may                                                                                                             continent is urbanising while poor, with         land use needed to make publicly provided         technology to register all plots at a low cost
within the city.                                  become bloated parastatals that provide an                                                                                                            a poorly educated population, indeed,            transport efficient and cost-effective.
     But the purpose of this profit-making        unaccountable patronage source. Paradoxi-                                                                                                             strikingly poorer than continents like

                                                                                                     AND URBAN FORM
entity is to provide funds that will pay          cally, weak public capacity can be a reason                                                                                                           Asia and Latin America were historically         Land use

                                                                                                                                                                                                                                                                                                          DELIVERING
for the second, more important task of            to manage the project in-house instead                                                                                                                at similar levels of urbanisation. This low      Strong institutions for land and property
city government: poverty alleviation. In          of outsourcing it to a private enterprise,                                                                                                            base of taxable urbanites contributes to         seem essential to urban development for
a sense, cities should see themselves as          because placing sewers can be a less difficult                                                                                                        deficiencies in institutional capacity that      several reasons. Marketable, enforced
having a for-profit real estate company that      task than avoiding subversion by a profit-                                                                                                            limit economic density and the agglom-           property rights facilitate contracts and
is owned and operated in the interest of a        making enterprise.                                 J. Vernon Henderson, Sebastian Kriticos and Tanner Regan                                           eration benefits that come from higher           the transfer of land to its most productive

                                                                                                                                                                                                                                                                                                          EQUITY LOCALLY
non-profit poverty reduction organisation.             The final challenge in water and sewerage                                                                                                        densities. Some of these limitations are         users. These users will invest in intensive
Clearly dividing the two tasks of govern-         provision is ensuring adoption. A ‘last-mile’                                                                                                         based on transport deficiencies and weak         development through high-rise building
ment is important so that African cities can      problem often exists in developing-world           Sub-Saharan Africa has experienced                industrialisation. As countries urbanise,        land market institutions.                        near the city centre and durable buildings
accurately assess the trade-offs when allocat-    cities where sewer mains are built, often          massive urban population growth over the          labour shifts from unproductive ‘traditional’                                                     throughout the city. Without such rights,
ing urban space.                                  with external aid, but poorer citizens             past half century, dramatically reshaping         sector employment (subsistence farming           Transport                                        the risk of expropriation, the uncertainty of
     The African challenge is particularly        are unwilling to pay for services. It is not       the spatial and social profile of the region.     or petty trade) towards modern capital-          Reducing commuting costs is the key to           trade and the inability to obtain financing      Mpho Parks Tau
difficult because successful poverty allevia-     surprising that families in countries with         Simultaneously, the process has challenged        ist activities (manufacturing and business       allowing jobs to cluster and centralise.         and insurance would limit investments
tion will only lead to continued rural–urban      a per capita GDP of less than US$2,000             the conventional view that urbanisation and       services). Such activities cluster in cities,    With very high commuting costs people            in property and intensity of development.
migration. That inexorable flow means that        are not willing to pay US$1,000 for a              economic transformation go hand in hand,          with density at the heart of this urban          live very close to where they work, limiting     Well-defined rights systems also support          The commitments made at the United                                      The UN is legitimately concerned to
African cities should never view poverty as       water connection.                                  as the sub-continent has experienced far less     transformation.                                  access to job opportunities and constraining     legal enforceability, allowing governments        Nations’ High-level Political Forum (HLPF)                          capacitate and empower cities since there is
failure. They will attract more poor people            In some cases, poorer citizens are even       of the economic gains alongside urbanisa-              As individuals and activities cluster       firms to remain local in scope. The reason       to impose obligations on land owners              on Sustainable Development Goals (SDGs),                            a mutually reinforcing relationship between
if they succeed. Success and failure should       unwilling to take free services. In Manila,        tion than in Latin America and Asia. This         in cities, scale and specialisation manifest     why London became a manufacturing and            for the public good such as taxation,             in July this year, marked a watershed                               local government and sustainable develop-
be judged based on whether the city is            the water and sewerage companies often             challenges the very notion of why people          themselves and generate efficiencies.            services powerhouse in the early 1900s is        enforcements that allow the coordination          moment for recognition of the indispens-                            ment1, and meeting the needs of citizens
transforming poor people into rich people.        offer free desludging for the thousands of         move to cities and how they contribute            Firms enjoy closer connections between           because firms could access the labour force      of public services and restrictions on land       able role of local government in implement-                         and communities hinges on the quality
As long as the city is an upward ladder then it   septic tanks that are the primary waste            to economic development. Since most of            buyers and suppliers, lowering input and         and their customers with reliable transport      use that mitigate negative externalities like     ing the 2030 Global Agenda. For the first                           of governance. The degree to which cities
is doing its job.                                 repositories in that metropolitan area.            Africa’s urbanisation is yet to come, it poses    transport costs. Workers and employers           services. The construction of the rail and       industrial pollution and overconsumption          time there was unequivocal acceptance of                            and local municipalities are able to deliver
                                                  Homeowners do not want the service,                a significant challenge to policymakers: what     experience better job-related matching           underground system was at the heart of this      of public space.                                  local and regional governments to deliver,                          ever-expanding public goods depends
Land and money                                    however, because their septic tanks lie            policies will help future urbanisation be a       opportunities, reducing search and hiring        through its role in centralising employment          The contrast of the state of institutional    effectively and sustainably, on the SDGs, the                       on meeting the challenges of urbanisa-
As Henry George argued in Progress and            under their kitchens and living rooms and          catalyst for productivity growth, rather than     costs. Meanwhile, close proximity allows         (see page 38).                                   development to the intensity of land use          New Urban Agenda and the Paris Climate                              tion, infrastructure, migration, dwindling
Poverty more than a century ago, the              desludging is disruptive. The result of not        an extension of rural poverty. Improving          individuals and firms to learn from each             Between 1831 and 1921, employment            across different African cities is revelatory     Change Accord.                                                      finances and climate change. These cannot
most natural source of subsidy for urban          desludging is that waste spills out into the       mobility within cities and land use are two       other, generating knowledge sharing. From        rose four-fold in the City of London while       in this regard. In Nairobi, for instance,             This recognition was underlined in the                          be solved in isolation. Rather, since their
infrastructure is local property and land         streets and their neighbours’ space, and           policy instruments at the core of Africa’s        a governance perspective, it’s also much         the city lost population. The new infrastruc-    around 90 per cent of all non-government          words of the UN Deputy Secretary-General                            impact cuts across societies and regions they
taxation. Property values can be easier to        the cost of clearing up is not borne by the        urbanisation challenges, fundamentally            cheaper to provide essential public goods –      ture allowed people longer commutes –            building land is under private ownership          Ms Amina Mohammed that closer collabo-                              require interlinked governance models.
assess than income. Land cannot relocate          household itself.                                  driving the productive potential, efficiency      like infrastructure and basic services – when    rising from a typical one to two kilometres of   and effectively well titled. This has played a    ration is required ‘to ensure that this twenty-                     In the memorable words of the late UN
in response to a local tax. Taxes based on             The adoption problem is generally more        and liveability of cities.                        populations are large and clustered together.    walking to five to six kilometres – contribut-   large role in fuelling the city’s construction    first-century United Nations system includes                        Secretary-General, Kofi Annan, these are
the value of land, rather than structure,         difficult for sewerage than for water. In the                                                             The question is whether urban density       ing to a massive spatial spread of residential   boom over the last decade. In contrast            a new and innovative strategy to support                            meta-problems that show scant regard for
do not even deter new building. Better            case of clean water, most of the benefits          Economic density                                  is as productive in Africa. One major            locations into the peripheries, and an intense   Dar es Salaam is still moving from                and build the capacity of local governments.’                       borders or ideologies, travelling autono-
property taxation provides a means for            accrue to the household and consequently           The notion that productivity gains should         concern is that urbanisation is occurring        clustering of economic activity within the       customary rights to private property rights.      This highlights that cities are now located at                      mously without passports.
cities to pay for their own infrastructure        there is usually some willingness to pay. In       be closely linked to urbanisation stems           in the region despite low productivity gains     City of London.                                  Government registry data suggests that            the centre of a changing and complex world                              If local government and cities are best
in a way that does relatively little damage       the case of sewerage, most of the benefits         from the seminal work of Saint Lucian and         in agriculture and limited industrialisa-            In most African cities, economic efficien-   only 20–25 per cent of residential plots have     and, furthermore, that cities have a seat                           placed to deliver effectively most common
to the overall economy.                           accrue to the wider community that is              Nobel-prize-winning economist Arthur              tion. Most countries still have extremely        cy is undermined by limited infrastructure       full title through a certificate for right of     at the global table as equal participants to                        goods, it calls for policy interventions
                                                  saved from the costs of rampant waste.             Lewis on structural transformation and            high agricultural employment, even in            and weak public transport. Most travel is        occupancy. Transferring rights across uses        shape and drive the future of humanity.                             and concerted action to capacitate cities,

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