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J A N U A RY 2 0 1 7
Sustainable cities:
Dead cert or science fiction?
Urbanization: The law leads the way
OFID and UNIDO hold panel on food security
Our dream home: Child of Play workshop in Jordan
OYW: The young leaders changing the world
OFID Quarterly is published COMMENT
four times a year by the
OPEC Fund for International The New Urban Agenda: Seeing the bigger picture 2
Development (OFID).
OFID is the development finance
agency established in January 1976 S PE C I A L F E AT U R E
by the Member States of OPEC S U S TA I N A B L E C IT I E S
(the Organization of the Petroleum
Exporting Countries) to promote Sustainable cities: Dead cert or science fiction? 4
South-South cooperation by extend-
ing development assistance to other, UN Habitat III unveils New Urban Agenda 12
non-OPEC developing countries.
Urbanization: The law leads the way 15
OFID Quarterly is available
free-of-charge. If you wish to be OFID in the Field 18
included on the distribution list,
please send your full mailing details Bangladesh: Developing governance and
to the address below. Back issues of infrastructure in urban slums 20
the magazine can be found on our Supporting African water operators
website in PDF format. for better service provision 22
OFID Quarterly welcomes articles Paraguay: A new urban landscape for Asuncion 24
and photos on development-related
topics, but cannot guarantee
publication. Manuscripts, together
with a brief biographical note on
NEWSROUND
the author, may be submitted
OFID and UNIDO focus on food security
to the Editor for consideration.
and sustainable development 26
The contents of this publication
do not necessarily reflect the Al-Herbish speaks at World Energy Congress 28
official views of OFID or its Member
Countries. Any maps are for Providers’ conference reassesses role
illustration purposes only and of global partnership 29
are not to be taken as accurate
representations of borders. Editorial OFID highlights energy-water-food
material may be freely reproduced, nexus at COP 22 30
providing the OFID Quarterly is
credited as the source. A copy to the Honduran bank secures third tranche
Editor would be appreciated. of OFID financing 32
OFID helps Georgian bank to bolster corporate
and SME trade 33
OFID renews support to Arab youth
energy program 34
University of Jordan uses OFID grant
to preserve historical documents 35
OFID hosts annual meeting of staff committees 36
OFID Diary 37
Meetings attended by OFID 39
157th Governing Board photo gallery 40
Loan and grant signature photo gallery 42
C O N F E R E N C E WATC H JANUARY 2017
The young leaders changing the world
One Young World Summit meets in Ottawa 44
2nd High-Level Meeting of the GPEDC
Global Partnership recommits to vision of
effective development cooperation 48
S P OT L I G H T
House of dreams
Child of Play workshops take place in Jordan 50 18
PE R S PE C T I V E S
GIZ in the Arab World
Interviews with senior executives of the
28
German development agency 53
M E M B E R S TAT E S F O C U S
The rise of Algeria’s scientific capacity 55
GE Kuwait Technology Center promises
to drive innovation in power sector 57
O PE C
OPEC celebrates landmark oil agreements 58
PUBLISHERS
44
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INTERNATIONAL DEVELOPMENT (OFID)
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50
EXECUTIVE EDITOR Arya Gunawan Usis
EDITOR Audrey Haylins
CONTRIBUTORS Reem Aljarbou, Nadia Benamara, Fatma Elzahra Elshhati,
Steve Hughes, Anna Ilaria-Mayrhofer, Irina Ilieva, Silvia Mateyka,
Nastaran Sharif, Fuad Siala, Alesandra Solano, Justine Würtz
PHOTOGR APHS Abdullah Alipour Jeddi, Carlos Opitz (unless otherwise credited)
PRODUCTION Susanne Dillinger
DESIGN etage.cc/krystian.bieniek
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This publication is printed on paper produced
from responsibly managed forests.
Maps are for illustration purposes only and are not
to be taken as accurate representations of borders. FRONT COVER PHOTO CREDIT: SHUTTERSTOCK.COM
C O M MENT
The New Urban Agenda:
Seeing the bigger picture
ustainable urbanization, as defined in the New
S Urban Agenda adopted at the Habitat III Summit
in October 2016, has been hailed as a positive,
transformative force for development. A process that, if
properly planned and managed, will usher in a new era
of wellbeing, resource efficiency and economic growth for
billions of city dwellers.
And, indeed, millions of people have already escaped
poverty by moving away from stagnating rural areas to
the bright lights of a big city. Here, they have found bet-
ter job opportunities, better living conditions and a vastly
improved overall quality of life.
As the centers of mass production, consumption and
service provision, cities the world over are the engines of
economic growth. Collectively, they account for an aston-
ishing 80 percent of global GDP. Even in countries that are
largely agriculture based, cities outperform their national
contexts in generating wealth, providing education and
promoting health.
Little wonder then that urbanization across the de-
veloping world is growing at an unprecedented pace, as
people flock to cities in search of their own little patch of
lusher, greener grass.
2 O FI D Q UARTE R LY JA N UA RY 2 0 1 7
C O MMENT
Today, an estimated 55 percent of the global population Our support is also visible in the area of transporta-
lives in an urban setting. Even taking into consideration tion, with several metropolises enjoying better mobility
accelerated population growth, this share is expected to thanks to mass transit systems, road bypasses and other
rise to 60 percent by 2030. infrastructure that help cut down travel time and make
commuting cheaper and safer.
To accommodate these growing numbers, cities have
had to expand their physical boundaries—usually hap- However, a word of caution is called for. While the
hazardly. And this is where urbanization becomes prob- New Urban Agenda certainly has its place, OFID is keen-
lematic. While for millions of people urban migration ly aware that implementing it should not divert attention
proves to be the ticket to a better life, for many it remains a from the fact that poverty is still very much a rural phe-
lottery. Large numbers are just as likely to find themselves nomenon.
living without basic amenities in slums and informal
According to the International Fund for Agricultural
settlements—a far cry from the Utopia of their dreams.
Development, some 70 percent of the world’s extremely
In keeping with the aspirations of SDG11, the New poor live in rural areas—a share that can rise as high as 80
Urban Agenda sets out to manage urbanization in a way or 90 percent in some countries.
that will make cities inclusive, safe, resilient and sustainable.
Clearly then, any attempt to eliminate global poverty
Places where people can live affordably and in harmony
must include a focus on strengthening rural communi-
with their environment, while enjoying all the agglomer-
ties: through infrastructure investment, capacity building,
ation benefits of a metropolis. It is a noble, if ambitious
job creation, and access to basic services.
vision.
Such efforts are essential to halt the drift of desperate
As an institution committed to sustainable devel-
people from the countryside to the city. They are essential
opment and the eradication of poverty, OFID naturally
for inclusive economic growth. And, perhaps most vital of
supports the New Urban Agenda. It recognizes that in-
all, they are essential for world food security.
equalities are often particularly evident in urban settings,
and it will continue its efforts to narrow these gaps. An added benefit, in the context of urbanization, is
that by revitalizing rural areas and giving people—espe-
Indeed, over the years, OFID has done much to help cially youth—a good enough reason to stay, we can ease
improve city living, especially through its contribution the burden on cities as they strive for sustainability.
to the energy sector, via improvements in the delivery,
reliability and affordability of electricity. It’s a win-win scenario. So let’s make it work.
In addition, we regularly support urban water and
sanitation projects, as well as the health and education
sectors. We’ve also undertaken numerous projects to
make cities more resilient to flooding, coastal erosion and
other natural disasters.
OF I D QUA RT ER LY JA NUARY 2017 3
PHOTO: ELENABS/ALAMY STOCK VECTOR
Sustainable cities:
Dead cert or science fiction?
SDG 11 sets out to make cities
inclusive, safe, resilient and
sustainable. With urbanization
increasing at a remarkable rate,
Steve Hughes considers why
this is such an important goal,
whether it’s a realistic aim
and what it means for rural
development.
OF I D QUA RT ER LY JA NUARY 2017 5
SUSTAINABLE CITIES
t’s hard to exaggerate the pace of beneficial thing and provides all kinds of
I today’s urbanization. Around 3.5 bil-
lion people—that’s half of all human-
opportunities through ‘economies of agglomer-
ation.” The basic idea of this, Richardson
ity—now live in cities. In just 14 years’ time, explains, is that well-devised, densely populat-
this will have increased to nearly 60 percent. ed areas will benefit from the clustering of eco-
While cities such as London and New York are nomic activity, comprehensive urban infra-
growing at a projected pace of nine and ten structure and greater human interaction—and
people per hour, respectively, the likes of Dha- development.
ka, Delhi and Lagos are adding a remarkable 74,
79 and 85 people to their total, every hour.
Moreover, the land area occupied by cities will Poorly planned = high risk
triple by 2030 (from a baseline of 2000), with The cost of poorly planned urbanization can be
around 90 percent of this expansion taking seen in some of the huge slums, gnarled traffic
place in the developing world (as the hourly fig- queues, agreement-busting greenhouse gas
PHOTO : WFP/REIN SKULLERUD
ures suggest). emissions and sprawling suburbs, all over the
This change will bring with it huge social, world. Slums bring down GDP, and they lower
economic and environmental transformations. life expectancy. In a recent blog, Wahba out-
Urbanization has the potential to offer a new lines more of the dangers: “On one end, cities
era of wellbeing, resource efficiency and eco- have been left to their own devices and have
nomic growth. But cities are also hotbeds of grown to a practically ungovernable state due
poverty; very few places showcase inequality so to inadequate planning and poor manage-
clearly as urban areas, where business districts ment.” These cities, he writes, are character-
and comfortable communities exist alongside, ized, among other things, by: doubling popu-
but separate from, slums and informal settle- lations coupled with tripling rates of land
ments. As with so many of today’s ‘big ticket’ conversion from rural to urban use in sprawl-
items like climate change and food security— ing developments, far beyond a point where
“[Urban] migration which are, of course, intrinsically linked to basic services can be affordably or effectively
urbanization—whether we make a success of it
is natural and should provided; unaffordable land and housing; vast
or not depends upon our approach. numbers of people occupying low-density set-
happen, but we
tlements without access to water, sanitation or
must focus on what
Make or break electricity; high-risk areas prone to storms,
makes people leave floods or landslides; and high and visible levels
“How we do between now and 2030 is vital,” says
[rural areas].” Sameh Wahba, Director for Urban and Territo- of inequality.
Arif Husain, WFP rial Development and Disaster Risk Manage- Contributing to the problem is the move
ment at the World Bank. “Urban planning and to the city of rural communities, driven by des-
infrastructure decisions lock cities in for gener- titution. The WFP’s Chief Economist Arif
ations. What policymakers decide in these two Husain says we need to focus on the rural link-
decades will make or break cities’ sustainable ages—rural development and urbanization are
future for the rest of this century.” two sides of the same coin: “Migration is natu-
As Wahba points out, the stakes are high. ral and should happen,” says Husain. “But we
Get urbanization right, and the world could must focus on what makes people leave. In
reap the rewards. Cities contribute more than 2007/8, China saw lots of rural to urban move-
80 percent of global GDP, according to the UN ment and then the reverse, as Chinese cities
Steve Hughes is a Habitat’s World Cities Report 2016. The effi- couldn’t accommodate the added labor
journalist and copy- ciency of urban economies is maximized by because of the economic slowdown.” Not only
writer based in the high-density environments with interconnect- does this crush people’s dreams of a better life,
UK. His background
is in economics and ed public transport networks that provide easy leave them even worse off than they were
financial journalism, access to jobs. All this means that cities outper- before and breed understandable discontent, it
but he has also spent perpetuates the problems of poorly planned
form their national contexts in generating
time writing for press offices and
internal communications depar t- wealth, providing education and promoting cities.
ments. He was an editor and health. Husain argues that rather than focusing
speechwriter with OPEC between
Jimi Richardson, Program Policy Officer at solely on sustainable cities, we should bring
2008 and 2012 and now writes for
various businesses and organizations. the UN’s World Food Program (WFP) elabo- some of the facilities of the cities to rural areas:
rates: “Urbanization in an ideal world is a very “If we invest in infrastructure and human E
6 O FI D Q UARTE R LY JA N UA RY 2 0 1 7
SUSTAINABLE CITIES
Global patterns of urbanization, 1995
Global patterns of urbanization, 2015
Percentage Urban
0 - 20%
20 - 40%
40 - 60%
60 - 80% City Population
80 - 100% 1-5 million 5-10 million 10 million or more
Source: UN Habitat/World Cities Report 2016
OF I D QUA RT ER LY JA NUARY 2017 7
SUSTAINABLE CITIES
F capital in rural areas—starting with chil-
dren’s nutrition and education—connect peo-
ple to markets and establish social protection
programs that contribute to inclusive econom-
ic growth, the movement from rural to urban
areas will not come out of destitution, but out
80
of free will.”
Wahba says we should be investing in
%
human capital and service delivery ‘every-
where.’ He adds that we should encourage
agglomeration because of its economic benefits,
“not to mention that when you invest in cities
you actually contribute to the decline in rural
of global GDP is poverty, because of improved access to markets
accounted by cities for the distribution and consumption of agri-
cultural products, to services, tools, finance
Contribution of cities to national income is and all the necessary inputs and services related
greater than their share of national population to agriculture.”
The New Urban Agenda (see page 12),
Paris: is 16% of the population of France, but recently unveiled at the Habitat III Conference
accounts for 27% of GDP in Quito, Ecuador, is designed to guide the
planning, design, finance, development, gover-
Kinshasa: is 13% of the population of DRC but
nance and management of new cities. It’s been
accounts for 85% of GDP set up to address the exact challenges and
Metro Manila: is 12% of the population of opportunities considered above. Or, more
Philippines but contributes 47% of the GDP inspirationally, as the New Urban Agenda
Explainer puts it, it provides “a historic oppor-
tunity to leverage the key role of cities and
human settlements—and their inhabitants—as
WELL PLANNED AND MANAGED drivers of sustainable development in an
URBANIZATION BENEFITS increasingly urbanized world.”
PHOTO : WORLD BANK
“… when you
invest in cities
you actually
contribute to the
Economic prospects Drives innovation Contribute to decline in rural
and quality of life and productivity national and regional poverty.”
for the majority development
Sameh Wahba,
World Bank
The World Bank’s Wahba views the Agen-
da’s aims as very ambitious: “This is what global
stakeholders want—a narrative with a strong
political commitment.” But he also says that, as
Alleviation Work towards with many large political documents, “it’s quite
of poverty social inclusion
light on implementation.” Between them, SDG
11 and the New Urban Agenda aim to change
the world, quite literally. “But how do we get
Source: UN Habitat/World Cities Report 2016
there?” asks Wahba. “There’s the issue of mag-
nitude and then there’s the ‘what are the next
steps?’ question.”
8 O FI D Q UARTE R LY JA N UA RY 2 0 1 7SUSTAINABLE CITIES
Big ask
Nowhere is the size of the task more apparent Climate resilience is more vital now than ever
PHOTO : WORLD BANK
than when considering the required invest- before, of course. According to a report by the
ment in infrastructure. Analysis conducted by World Bank and the Global Facility for Disaster
the Cities Climate Finance Leadership Alliance Reduction and Recovery, natural disasters and
(CCFLA), a coalition of more than forty organi- climate change are already having devastating
zations working to accelerate investment into effects on cities and the four billion people who
low-carbon and climate-resilient infrastructure live in them today. It states: “By 2030, without
in urban areas, suggests between US$4.1tr and significant investment into making cities more
US$4.3tr per annum will need to be spent on resilient, natural disasters may cost cities world-
urban infrastructure just to keep up with pro- wide US$314bn each year, up from around
jected growth in a business-as-usual scenario. US$250bn today, and climate change may push
In its report, The State Of City Climate up to 77 million more urban residents into pov-
Finance 2015, the CCFLA estimates an incre- erty.”
mental 9 to 27 percent (US$0.4tr to US$1.1tr) Rapid urbanization without investment
more capital investment will be necessary to to increase urban resilience is a ticking bomb. “… climate change is
make this urban infrastructure low-emission “…climate change is poised to have dramatic poised to have dramatic
and climate-resilient. Given differing method- effects, which means we’re approaching a tip- effects, which means
ologies and data limitations between demand ping point for the safety of cities all over the we’re approaching a
and supply estimates, the exact gap figure can- world,” says Ede Ijjasz-Vasquez, Senior Director
tipping point for the
not yet be calculated. But the report also states: for the World Bank’s Social, Urban, Rural and
“…with CPI’s [Climate Policy Initiative] current Resilience Global Practice in a recent press
safety of cities all over
tracked climate finance totaling just US$331bn release. “We need to invest today in resilience the world.”
(inclusive of both urban and non-urban flows) measures that will help secure a safe and pros- Ede Ijjasz-Vasquez,
the magnitude of the challenge for urban cli- perous future for our cities and the people who World Bank
mate finance becomes clear.” live in them.” E
PERSISTENT ISSUES AND EMERGING URBAN
CHALLENGES DUE TO INCREASED URBAN POPULATION
Source: UN Habitat/World Cities Report 2016
URBAN GROWTH CHANGE IN FAMILY INCREASED CHALLENGES IN
PATTERNS RESIDENCY IN SLUMS PROVIDING URBAN
AND INFORMAL SERVICES
SETTLEMENTS
CLIMATE CHANGE EXCLUSION AND INSECURITY UPSURGE IN
RISING INEQUALITY INTERNATIONAL
MIGRATION
OF I D QUA RT ER LY JA NUARY 2017 9SUSTAINABLE CITIES
Positive thinking steps; investment in resilient basic infrastruc-
PHOTO : WFP/REIN SKULLERUD
ture to meet the population’s needs, particular-
F But it’s not all doom and gloom says the
ly in connecting urban residents to jobs and
WFP’s Richardson: “I think there is cause for
firms to markets, is another; and given that the
optimism that urbanization can bring the ben-
infrastructure financing needs of cities are
efits we’ve talked about, provided we take
immense, as we’ve already considered, govern-
action now to properly manage this shift in our
ments will need to better leverage private sector
development trajectory.” He says that, ultimate-
and capital markets financing, develop land
ly, it’s up to governments and cities themselves
value capture instruments and further mobilize
to take the initiative, supported by intergovern-
domestic resources in order to bridge this gap.
mental organizations and civil societ y.
Urbanization is nothing new and growth
“Inequality and other problems will inevitably
and development have gone hand in hand with
exist. But we have to confront these issues even rapid urbanization throughout history. But as
more aggressively. Public action will be needed;
“Inequality and other Wahba concludes, the relationship has not
social protection and safety nets should be put always been mutually reinforcing. “Now
problems will inevitably
in place.” though, we have the opportunity to set the
exist, but we have to The World Bank’s Wahba insists that course for low-emission, climate-resilient urban
confront these issues national, regional and city leaders need to get to infrastructure that increases economic oppor-
even more aggressively.” work: “They must make informed decisions tunity,” he says. “Let’s build on the momentum
Jimi Richardson, WFP about planning, connecting and financing of Habitat III to realise the New Urban Agenda
their cities.” He adds that no two cities are the and, eventually, the Sustainable Development
same and that urban growth should be planned Goals.”
and managed to suit each local context. Despite It’s either Wahba’s way, or more of what
this, Wahba explains, a number of basic build- we have already: a carbon-intensive trajectory
ing blocks can help all cities be better prepared with sprawling cities, dangerous pollution,
for the growth to come: the strengthening of and a global population that is increasingly
institutions for integrated land use and trans- vulnerable to climate change. It seems a simple
port planning, as well as for the management of choice. Implementation, however, is a differ-
land and property rights, are essential first ent matter. N
100
Share of national
population and GDP
in selected cities
Share of national GDP (%)
80 (developing countries)
Share of national population (%)
Source: UN Habitat/World Cities Report 2016
60
40
20
0
Mumbai
Nairobi
Rio de Janeiro
Santiago
São Paulo
Shanghai
Yagon
Abidjan
Addis Ababa
Bangkok
Bogota
Brasilia
Buenos Aires
Cairo
Cape Town
Chittagong
Dar es Salaam
Dhaka
Hanoi
Jakarta
Kinshasa
Lima
Manila
Kabul
Karachi
Khartoum
10 O FI D Q UARTE R LY JA N UA RY 2 0 1 7SUSTAINABLE CITIES
SDG 11 targets
• By 2030, ensure access for all • By 2030, reduce the adverse per
to adequate, safe and affordable capita environmental impact of
housing and basic services and cities, including by paying special
upgrade slums. attention to air quality and municipal
and other waste management.
• By 2030, provide access to safe,
affordable, accessible and sustain- • By 2030, provide universal access to
able transport systems for all, safe, inclusive and accessible, green
improving road safety, notably and public spaces, in particular for
by expanding public transport, women and children, older persons
with special attention to the needs and persons with disabilities.
of those in vulnerable situations,
• Support positive economic, social
women, children, persons with
and environmental links between
disabilities and older persons.
urban, peri-urban and rural areas by
• By 2030, enhance inclusive and strengthening national and regional
sustainable urbanization and ca- development planning.
pacity for participatory, integrated
• By 2020, substantially increase
and sustainable human settlement
the number of cities and human
planning and management in all
settlements adopting and imple-
countries.
menting integrated policies and
• Strengthen efforts to protect plans towards inclusion, resource
and safeguard the world’s cultural efficiency, mitigation and adaptation
and natural heritage. to climate change, resilience to
disasters, and develop and imple-
• By 2030, significantly reduce the
ment, in line with the Sendai Frame-
number of deaths and the number
work for Disaster Risk Reduction
of people affected and substantially
2015-2030, holistic disaster risk
decrease the direct economic losses
management at all levels.
relative to global gross domestic
product caused by disasters, includ- • Support least developed countries,
ing water-related disasters, with a including through financial and
focus on protecting the poor and technical assistance, in building
people in vulnerable situations. sustainable and resilient buildings
utilizing local materials.
OF I D QUA RT ER LY JA NUARY 2017 11SUSTAINABLE CITIES
UN Habitat III unveils
New Urban Agenda
Some 35,000 international stakeholders came
together at UN Habitat III in Quito, Ecuador to spur
action on making cities and urban settlements
inclusive, safe, resilient and sustainable.
by Nadia Benamara
he Oct 17–20 summit concluded with
PHOTO : REUTERS/GUILLERMO GR ANJA
T an outcome agreement adopted by 167
countries. Titled The New Urban Agenda,
it is intended to guide global efforts around
urbanization for the next two decades.
Speaking at an opening press conference,
UN Secretary General Ban Ki-moon described
The New Urban Agenda as an action plan for
sustainable urbanization. “Over the next 20
years, the people of the world will count on
their national and local leaders to implement it
with vigor and conviction,” said Ban.
“If we get our towns and cities right, we will
be closer to achieving all the Sustainable Devel-
opment Goals by which we can make our cities
and our world and our life healthier, more pros-
perous and resilient.”
Habitat III is the first major UN summit
held after the launch of the 2030 Agenda for
Sustainable Development and its SDGs and the
Paris Agreement on Climate Change.
Organizers referred to it as one of the larg-
est gatherings in UN history and expected the
overlap in the three agendas (development, cli-
mate and cities) to lend complementary energy
UN Secretary-General Ban Ki-moon (left) with Ecuadorean President Rafael Correa. to each process.
12 O FI D Q UARTE R LY JA N UA RY 2 0 1 7PHOTO : JUAN CEVALLOS/AFP/GETTY IMAGES
Ban Ki-moon
delivers a speech
Unlike development policy of decades past, the private sector and civil society) were encour- during the opening
New Urban Agenda does not treat urbanization aged to offer formal recommendations for ceremony of the
as an inherent negative. inclusion in the document. Habitat III
It recognizes that one of the 21st century’s Its shared vision of principles and commit-
conference.
most transformative trends poses massive sus- ments places particular emphasis on meeting
tainability challenges, but nonetheless stipu- the essential needs of the poor and rectifying
lates that urbanization can and must be seen as economic and social inequities.
an effective tool for development. A lack of adequate management, lack of
UN Habitat Executive Director Joan Clos urban design and lack of urban finances are
reinforced this message in his opening address identified as primary causes of people’s suffer-
to summit participants. “Urbanization well ing in cities and urban environments.
done is a very creative aspect of human society It warns that current development priori-
and a very efficient instrument of develop- ties aren’t paying adequate attention to the lim-
ment,” said Clos. its of natural resources to supply human com-
“But it does not come without a very com- munities.
mitted and participatory process, with trans- Developing, least developed, landlocked,
parency, public and private accountability and conflict/post-conflict, and disaster-struck
countries, as well as small island states, face
a radical stance against corruption.”
extensive urban development challenges that
must be uniquely addressed.
Inclusive process Multiple forms of discrimination endured
Inclusivity in fact served as a guiding principle by women and girls, children and youth, peo-
for the process behind The New Urban Agenda. ple with disabilities, elderly, indigenous and
Led by national governments, a wide vari- homeless persons, slum dwellers, smallholders,
ety of actors (including city and regional lead- refugees, returnees and migrants can and
ers, international development funders, the should also be mitigated. E
OF I D QUA RT ER LY JA NUARY 2017 13SUSTAINABLE CITIES
PHOTO : JUAN CEVALLOS/AFP/GETTY IMAGES
Three pillars
A framework for effective implementation of
The New Urban Agenda is organized around
three pillars: rule of law and urban legislation,
urban planning and design, and sound finan-
cial planning.
Local and municipal governments are a
particular focus, with support for capacity
building, reliable financing mechanisms and
management structures.
Urban planning and design will depend
on adopting sustainable, people centered, age-
and gender-responsive, integrated, innovative
and green approaches.
Sound financial planning will require
effective, innovative and sustainable financing
frameworks and instruments that are embed-
Closing the conference, F The New Urban Agenda promises to readdress ded in coherent policy and fiscal decentraliza-
UN Habitat Executive “the way we plan, finance, develop, govern and tion processes.
manage cities and human settlements” by prior- Ban Ki-moon echoed the call to empower
Director Joan Clos urged
itizing: democratic development and respect for local governments in an address to Habitat III’s
stakeholders to approach human rights; the relationship between the World Assembly of Mayors.
urbanization as an environment and urbanization; equity in the “Mayors are at the forefront of the battle for
investment rather than face of globalization; the safety and security of sustainability,” said Ban. “You are faced with
a cost. everyone living in urban areas; risk reduction the immediate daily demands of your people;
and urban resilience; as well as a global monitor- for housing, transport, infrastructure and sus-
ing mechanism to track issues and concerns. tainable urban development.”
According to The New Urban Agenda, He added that local leaders were key to
urbanization offers as yet untapped opportuni- delivering global agreements: “Take strong
ties for economic growth, social and cultural ownership of this vital agenda. Stand up for the
development and environmental protection. people you represent.”
Its commitments outline the profound In closing Habitat III, Joan Clos urged:
impact of housing on economic transformation, “Now is the time for a transformational urban-
the “agglomeration benefits of well-planned ization, as a centerpiece of development policy
urbanization” (such as high productivity, com- at international, national and local level. We
petitiveness and innovation), and the promo- need to approach urbanization not as a cost, but
tion of access to knowledge, skills, education, as an investment, because the cost of urbaniza-
investments and entrepreneurship. tion is minimal in comparison to the value it
It seeks to enhance social inclusion by can generate.”
emphasizing the value of public space, land ten- UN Habitat III is the third in a series of
ure, natural and cultural heritage. global gatherings held once every 20 years. The
Commitments to environmentally sus- first was staged in Vancouver, Canada in 1976.
tainable and resilient urban development The second in Istanbul, Turkey in 1996.
include clean energy, slum upgrading, mitigat- To support follow up and review of The
ing and adapting to climate change, and the New Urban Agenda, signees committed to quan-
adoption of sustainable consumption and pro- titative and qualitative analysis, regular assess-
duction patterns. ments as well as meetings and conferences. N
14 O FI D Q UARTE R LY JA N UA RY 2 0 1 7SUSTAINABLE CITIES
Urbanization: The law leads the way
By 2045, the urban population is expected to surpass six billion.
This presents huge challenges to the way that rapidly growing cities, many
with outdated and impractical laws, are being shaped and developed.
Here, OFID Legal Counsel, Nastaran Sharif, takes a closer look at the legal
frameworks that mold urbanization.
hen it comes to the multiple challenges As Joan Clos, the Executive Director of UN-
W
PHOTO : ROBERT ADRIAN HILLMAN /SHUTTERSTOCK.COM
of unplanned urbanization, dealing Habitat asserts, the emerging futures of cities
with them effectively will depend to a depend on “the way we plan and manage urban-
significant extent on governance structures. ization, and the way we leverage this transforma-
Well-designed urban legal and policy frame- tive process to provide the setting, the underly-
works can mitigate many of the risks by pro- ing base and the momentum for global change.”
viding predictability, order and a stable under- Yet, many countries have failed to effectively
lying base for urban development. With the implement urban laws, which guide and support
right rules and legislation in place, planners sustainable urban development. Urban law,
can address societal, economic and environ- according to UN Habitat, is in fact characterized
mental shortcomings and help contribute to by having lower implementation rates than any
strong economic performance and wealth other field of law. So why is this and how can
creation. these shortcomings be addressed? E
OF I D QUA RT ER LY JA NUARY 2017 15SUSTAINABLE CITIES
Out with the old
PHOTO : FRIEDRICH STARK /ALAMY STOCK PHOT
F The roots of the problem, though manifold,
start with the origin of urban law itself. It may
not come as a surprise that laws are often creat-
ed from existing laws in other countries.
According to UN Habitat, the same practice is
applied to urban law. When foreign legal instru-
ments and international best practices are
directly applied to urban law, they do not reflect
local practice and culture. This separation of
the law from the urban society it governs is fre-
quently coupled with limited or no opportuni-
ties for effective review and adjustment. The
result is an ineffective law, which cannot be
implemented.
Recognizing this problem, the New Urban
Agenda calls for an enabling structure of urban
legislation. It defines effective urban legislation
as one which is “backed by a clear urban policy,
has a clear purpose, has a content that responds
to the regulated problem, and takes into
account the available evidence, existing situa-
tion, resources, capacity and views of stake-
holders.”
The New Urban Agenda further asserts
that “the way we plan, finance, develop, govern,
and manage cities and a number of its commit-
ments and implementation actions will need
effective legal frameworks to be turned into
reality.” Effective legal frameworks have an
enabling structure. This means that applicable
laws, regulations and policies must be up-to-
date, feasible and appropriate for the setting.
Zambia provides a good case study for the environmental, social and economic sustain-
impact that inappropriate laws can have on a ability in development initiatives and controls
country’s urbanization process. Until very at all levels of urban and regional planning.”
recently, the legislative status quo of Zambia’s The purpose of a planning policy is to help
planning and housing laws was still that of the achieve sustainable development. Speakers at
colonial period. As the laws were based on out- Habitat III criticized planning policy frame-
dated assumptions, they could no longer sup- works, claiming that these were often highly
port the urbanization process in modern-day technocratic and disregarded local capacity. To
Zambia. This led to problems such as insuffi- fulfil their purpose, experts said, planning pol-
cient housing and overcrowding of already icies should be flexible enough to efficiently
dense areas and the continued deterioration of respond to on-the-ground needs and changes.
poor neighborhoods, both at a large social cost. In parallel, and for the purpose of being able to
Recognizing the need for action, Zambia measure and report the results, the implemen-
has already taken steps to turn this situation tation process should be monitored.
around. In 2015, the government introduced
the new Urban and Regional Planning Bill,
which encompasses all areas within planning
Green growth
legislation. Not only did the bill take the short- Rapid and unplanned urbanization can
comings of the previous system into account, cause economic and environmental strain on
but it also recognized the need to ensure sus- both land and people. One country quick to act
tainable urban development “by promoting on this score is China, which has taken preven-
16 O FI D Q UARTE R LY JA N UA RY 2 0 1 7SUSTAINABLE CITIES
Zambia has
modernized its
outdated planning
laws in order to better
support sustainable
urbanization.
tive and adaptive measures to reduce the mega-cities will be located in developing coun-
extraordinarily high level of greenhouse gas tries. New York, meanwhile, is forecast to drop
emissions caused by uncontrolled urbanization out of the top ten of the world’s most populous
coupled with a lack of effective environmental cities. This foresees a massive challenge for the
legislation. governments of developing nations, which
In addition to ratifying the Paris Climate must embrace a plan for rapid urbanization
Agreement in 2016, China has undertaken affecting hundreds of millions of their citizens.
extensive legislative and policy revision to cap- When a city’s population, physical assets
italize on the benefits of a clean energy econo- and economic activities grow, both the oppor-
my. Among the new laws is the novel require- tunities and the risks increase. Yet, although
ment to use sustainable materials for the there is consensus on the risks and opportuni-
construction of buildings. In parallel, the Chi- ties of urbanization, the negative effects of
nese government has taken steps to strengthen deficient laws and policies on the urbanization
environmental monitoring and enforcement process must be equally understood. Well-
facilities. Although it is impossible to restrict defined urban legislation, backed by urban pol-
urbanization, China is working to ensure that it icy is essential to readdress the way cities and
proceeds on the right path and causes mini- human settlements are planned, designed,
mum impact on the environment. financed, developed, governed and managed.
Looking to the future, the UN report World The legal framework is not a sub-plot, but rath-
Urbanization Prospects predicts that 30 years er the main narrative of the success or failure of
from now the vast majority of the world’s urbanization. N
OF I D QUA RT ER LY JA NUARY 2017 17SP E CIAL F EATURE PHOTO: ZUMA PRESS, INC./ALAMY STOCK PHOTO 18 O FI D Q UARTE R LY JA N UA RY 2 0 1 7
OFID in the Field
In promoting sustainable
urbanization, OFID works
to improve the delivery of
essential services—especially
electricity, water and sanita-
tion—and to make cities
more resilient to flooding,
coastal erosion and other
natural disasters. It also
supports enhanced mobility
through the construction of
mass rapid transit systems
and other road infrastructure
that reduce travel time and
make commuting safer and
cheaper.
OF I D QUA RT ER LY JA NUARY 2017 19OFID IN THE FIELD
Bangladesh: Developing governance
and infrastructure in urban slums
With a view to developing urban centers in a
sustainable way, the government has prioritised
Together with the Asian Development Bank, a multifaceted approach to poverty reduction.
This approach emphasizes that local gover-
OFID is supporting pro-poor development nance must be developed simultaneously with
urban infrastructure.
for urban communities in Bangladesh. In 2014, OFID extended a US$40m loan for
By Fatma Elzahra Elshhati the third phase of the Urban Governance and
Infrastructure Improvement Project (UGIIP-3).
This phase of the project, co-financed together
with the Asian Development Bank, aims to
n 2015, urban dwellers accounted for improve governance and infrastructure in 36
I 34 percent of the total population of
Bangladesh, which is expected to
selected pourashavas.
The project, which runs until 2020, aims
increase to about 110 million by 2035. After the to tackle urban poverty in an integrated and
two major cities, Dhaka and Chittagong, small- holistic way. Beyond improving infrastructure,
er secondary towns, also known as pourashavas, UGIIP-3 first ensures that good governance
are host to 40 percent of the country’s urban practices are instituted within the municipali-
population. ties. With enhanced capacity to implement,
The rapid speed of urbanization in Bangla- manage and maintain basic urban services, sus-
desh has led to unplanned and uncontrolled tainable growth is ensured at the local level.
growth. This has resulted in a lack of access to “UGIIP-3 is the latest initiative to improve
basic services including transportation, and urban development through governance and
water and sanitation facilities. capacity building,” Shafiqul Islam Akand,
20 O FI D Q UARTE R LY JA N UA RY 2 0 1 7OFID IN THE FIELD
UGIIP’s project director told The Quarterly. “The successful model in Bangladesh for urban local
project has enabled the municipalities to estab- government,” said Akand. “Our approach is
lish strong linkages among their citizens for being replicated not only in Bangladesh by oth-
delivering improved services.” er development partners like the World Bank
A key component of UGIIP-3 encourages and the Japanese International Cooperation
the formation of community based organiza- Agency, but also in other South Asian countries
tions in order to involve citizens, especially including India, Sri Lanka and Nepal.”
women, in the decision-making process. These The project focuses on key infrastructure
organizations are responsible for preparing such as roads, drainage, water supply and sani-
development plans that are pro-poor and gen- tation, solid waste management and other
der responsive and that develop capacity. By municipal facilities, including kitchen markets,
increasing the representation and participation bus/truck terminals, community centers,
of the poor and marginalized, the aim is to slaughterhouses, street lighting, river bank
make decision-making more transparent and improvement and landing stations, among
encourage citizens to take ownership of their others.
communities. UGIIP-3 aims for these improved facilities
The project is being implemented in three to be directly managed and maintained by the
phases, where funds are allocated based on the trained beneficiaries. By building capacity in
performance of the pourashavas in six main this way before the infrastructure is developed,
areas: i) citizen awareness and participation, ii) the project ensures that planning is tailored to
women’s participation, iii) integration of the the needs and capacity of the pourashavas.
urban poor, iv) urban planning, v) financial UGIIP-3 offers a model for the develop-
accountability and sustainability, and vi) ment of urban areas. The municipalities impact-
administrative urban transparency. Structur- ed by the project are supported in a structured
ing the assistance in this way promotes respon- way from planning and governance to structur-
siveness and accountability on the part of the al development. This increased awareness and
municipalities. capacity developed promotes the self-reliance
“We have found performance-based infra- of the citizens and the pourashavas to manage
structure allocations to be very effective and a and maintain their local areas. N
Promoting self-reliance
As a direct result of the project, the pourashavas are giv-
ing more attention to the needs of disadvantaged citizens,
particularly poor women, who receive training on income-
generating activities.
Rahima Begum, from the Khagrachari municipality, is just
one woman who has benefited from the project. As part
of its gender action plan to promote participation in socio-
economic life, Khagrachari organizes courtyard meetings for
community members to discuss and solve social issues. After
attending these meetings, Rahima enrolled in a 45-day sewing
course and received a sewing machine from the municipality.
With this training, she started taking sewing orders from the
neighborhood and then gradually from local garment shops.
She has been able to increase her income as a result. With
her savings, she further expanded her activities and opened a
small tea-stall. Despite a physical disability, Rahima is now able
to support herself and her family with her newly gained skills.
PHOTOS: MR A.K.M. ARIF HOSSAIN, MEDIA CONSULTANT, UGIIP-III
OF I D QUA RT ER LY JA NUARY 2017 21OFID IN THE FIELD
Supporting African
water operators for better
service provision
As the 21st century moves
PHOTO : GREENSHOOTS COMMUNICATIONS/ALAMY STOCK PHOTO
forward with fast–growing
populations and urbani-
zation, water provision
is one of the most pressing
challenges to meeting
the SDGs.
By Justine Würtz
oday, half the people on the planet are
T urban dwellers. The world’s cities are
growing at an unprecedented rate and
90 percent of this urbanization is occurring in
poor or developing countries. In Africa 80 per-
cent of this growth is in slums.
Establishing well-functioning, sustainable
water and waste management systems in these
urban areas will be key to a sustainable and safe
future. In particular, managing the needs of
ever-expanding urban areas with dwindling
water resources requires urgent attention.
In 2013, OFID provided a grant of US$1m
to support implementation of a sub-project of
the UN-Habitat Global Water Operators’ Part-
nerships Alliance (GWOPA) program in nine
African countries: Ethiopia, Ghana, Guinea,
Kenya, Malawi, Namibia, Tanzania, Togo and
Zambia.
“It’s important to recognize that despite
the challenges of urbanization, cities also offer
the most efficient environment to provide
water and hygiene services to a large number of
people,” Dr Walid Mehalaine, OFID Acting Head
of Grants and Technical Assistance, explained.
“To this end, well-functioning water operators
Well-functioning water operators are essential for the are essential for the management of urban
delivery of services like this sewage treatment works. water and sewerage services.”
22 O FI D Q UARTE R LY JA N UA RY 2 0 1 7OFID IN THE FIELD
The added bonus is, because these operators
PHOTO : SAMSON OPUS/ALAMY STOCK PHOTO
extend services to vast populations, they will be
major players in achieving the water and sani-
tation SDGs.
In the GWOPA 2013–2017 Strategy Report,
UN‑Habitat Executive Director Dr Joan Clos
states: “The management of urban water and
waste flows in cities has major implications on
urban ecology, economy, resilience and equity.”
He adds: “Equally, how successful this
management is, will impact water quality and
quantity in the future. It will also help in the
prevention of slums, levels of health and well-
being, the improvement of livelihoods, and the
conservation and reuse of resources.”
The GWOPA program was established by
UN-Habitat as a direct response to the need for
effective urban water operators. Currently, the
capacity of many urban water operators in
developing nations is, by and large, inadequate.
They lack basic operational and manage-
ment approaches. They suffer from inadequate
resources and deteriorating infrastructure. And
their ability to address these challenges is hin-
dered by poor governance, ineffective institu-
tional frameworks, and outdated skillsets.
“But while many operators lack capacity, A technician at work in
others have it in abundance,” explained OFID’s services; resource management, efficiency and a laboratory that checks
Dr Mehalaine. “GWOPA recognizes the poten- sustainability; and climate change resilience. and controls water quality.
tial for knowledge-sharing between these two Once areas for improvement had been
groups.” established, individual plans were prepared for
Water operators with relevant skills and each utility. Mentoring teams then went to the
experience act as mentors, and enter into a operators in need of assistance to deliver capac-
non-commercial partnership, based on princi- ity development sessions tailored to the identi-
ples of solidarity. fied priority needs.
The OFID supported-program focused in “The voluntary nature of this program
particular on increasing services for poor pop- makes it particularly significant,” explained Dr
ulations. To avoid the further growth of slum Mehalaine. “The whole experience is tailored
areas in expanding cities, urban operators and the participating operators have a real
need to be prepared and able to provide ser- sense of ownership and purpose.”
vices to the lowest income residents. The GWOPA activities covered an average
“Utilities must first receive the needed period of eight months and came to an end in
support to enhance their performance and res- September 2015. “The response of the operators
ident capacity so that they can increase reve- to the program has been substantial,” Dr
nues and reach financial balance and bankabil- El-Awar told the Quarterly. “We hope to contin-
ity,” explained Dr Faraj El-Awar, Head of ue the collaboration with OFID to replicate and
UN-Habitat’s GWOPA Secretariat. scale up the program to support more water
The project commenced with diagnostic operators in Africa and in other regions of the
teams evaluating the priority needs of the nine global South.”
mentee utilities. Diagnosis covered all areas Dr Mehalaine confirmed this proposal:
required for good practice, including: gover- “Such an initiative will give OFID a significant
nance, policy and legal support; billing, reve- opportunity to contribute to the achievement
nues and asset management; customer rela- of universal access to clean water and the
tions; expansion of water and sanitation human right to water.” N
OF I D QUA RT ER LY JA NUARY 2017 23OFID IN THE FIELD
Paraguay: A new urban
landscape for Asuncion
With a new public transport system under construction and
a major facelift planned for downtown, residents of the
Paraguayan capital Asuncion have much to look forward to. By Silvia Mateyka
ver the past decades, Latin American It is also one of the most important urban areas
O cities have boomed. Today, Latin
America and the Caribbean is the sec-
of the country, with buildings of national heri-
tage and historical value. However, much of the
ond most-urbanized region in the world. By city’s infrastructure is deteriorated and insuffi-
2050, UN-Habitat predicts that Latin America’s cient to meet the population’s needs.
cities will accommodate 90 percent of the Romulo Martinez, OFID country officer
region’s population. for Paraguay, explained that inadequate infra-
This trend can also be observed in Para- structure is one of the main obstacles to the
guay, where 60 percent of the total population country’s growth and has a negative impact on
is urban. Fifty years ago, around 787,000 Para- competitiveness.
guayans were living in cities. Now, over 3.9 mil- “Cities need good public transportation
lion people are city dwellers. And this trend systems to prosper and grow. That is especially
shows no sign of stopping. true in developing countries, where rapid
With nearly two million inhabitants, the urbanization is creating huge pressure on aging
Paraguayan capital Asuncion is home to over 30 infrastructure,” he said.
percent of the country’s population and is one According to recent studies conducted by
of the ten largest urban agglomerations in the Department of Transportation of the Metro-
South America. politan Area of Asuncion, use of public trans-
Located as it is on the Paraguay River, portation dropped from 64 percent in 1988 to
Asuncion has always been the landlocked coun- 52 percent in 2009.
try’s prime location for trade and economic Martinez attributes this reduction to the
activities. Cotton, sugarcane, corn, tobacco, absence of a reliable public transport system,
fruit, and cattle products from the rich agricul- increased traffic congestion, longer travel times
tural and rural hinterland are processed in and and higher fares charged to the users.
around the capital.
24 O FI D Q UARTE R LY JA N UA RY 2 0 1 7OFID IN THE FIELD
Rehabilitation and upgrading of urban
and transportation infrastructure
In its efforts to address the city’s historical Also included is the improvement of infra-
importance and high urban development structure between buildings housing the
potential, the government launched a compre- three branches of government, including
hensive rehabilitation and improvement plan power, telephone, and data transmission lines,
which includes the urban renewal of the histor- sewers and storm drain systems, and road
ic downtown area and the improvement of the enhancement.
public transport system across the metropoli- The first stage of the BRT Metrobus will
tan area. link downtown Asuncion with the San Lorenzo
As part of this effort, OFID joined forces district, representing the main route which car-
with the Inter-American Development Bank ries the largest volume of passengers. It consists
to co-fund the establishment of a bus-rapid- of a 17km BRT-only lane, 100km of feeder roads,
transit (BRT) system and revitalize the urban two bus yards and terminals, and 26 stations.
infrastructure in the old port of Asuncion and “Some 1.9 million people are expected to
its downtown area. benefit from an economical, reliable, safe and
“The project will contribute to the environment-friendly means of transportation,”
improvement of competitiveness, reactivation Martinez pointed out.
of the urban economy, and the deployment of Metrobus is part of an integrated passen-
a transport system accessible for low-income ger transportation system, which considers fur-
people. It will also improve mobility and access ther corridors to Asuncion metropolitan cities
to basic services, healthcare, education, cultur- Limpio and Nemby and integration with a
al activities and labor opportunities,” elaborat- future interurban commuter rail.
ed Martinez. “With this project, OFID intends to con-
Activities include the rehabilitation of tribute to the government’s efforts to achieve
existing public spaces and the creation of new an efficient urban connectivity that improves
Asuncion’s new
ones, along with the construction of pedestrian the quality of life of all citizens while at the Metrobus system will
walkways and bicycle paths, new government same time, promotes an increase of the produc- make travel cheaper,
offices and citizen service centers, and the res- tivity and competitiveness of Asuncion,” said safer, cleaner and more
toration of historic buildings in Barrio San Martinez. N reliable for the city’s two
Jerónimo in downtown Asuncion.
million inhabitants.
PHOTOS: PIU
OF I D QUA RT ER LY JA NUARY 2017 25NEWSROUND
three million children under the age of
five die from ill nourishment, while near-
ly 800 million people remain chronically
undernourished,” he stated.
Al-Herbish pointed out that OFID
and UNIDO’s alliance had been forged in
OFID and UNIDO focus on
their common desire to end energy pover-
ty, “but tonight we focus on food securi-
food security and sustainable
ty,” he said. Emphasizing the immensity
of the problem, he noted: “It’s not only a
question of producing enough food: the
development challenges are deeply complex [and
require] the united efforts of all stake-
holders.”
On the occasion of the 50th anniversary of UNIDO Echoing this opinion, UNIDO Direc-
tor-General Li Yong called on all stake-
(United Nations Industrial Development Organization) holders to: “strengthen and revitalize
and the 40th anniversary of OFID, experts explored the global partnerships for sustainable devel-
opment.”
vital role of biotechnology in achieving food security. Li disclosed that UNIDO would be
By Alesandra Solano and Justine Würtz working with partners to harness the
potential of biotechnology for inclusive
and sustainable industrial development.
s a side event to UNIDO’s 50th Attending the event were members of the This would be carried out with three main
A anniversary celebrations, a
reception and joint UNIDO–
diplomatic and international community,
development practitioners, and strategic
thematic focuses: creating shared pros-
perity for all, advancing economic com-
OFID panel discussion was held at OFID’s partners in research and academia, in par- petitiveness, and safeguarding the envi-
headquarters on November 23. Debate ticular UNIDO’s partners in food security ronment.
examined how biotechnology and other and biotechnology “Biotechnology is revolutionizing
emerging technologies can support inclu- OFID Director-General Suleiman industrial and agricultural practices” stat-
sive and sustainable industrial develop- Al-Herbish, welcomed guests with a pow- ed Li. “For developing countries, many of
ment, food security and the Sustainable erful message that underlined the impor- whose economies are based on agricul-
Development Goals. tance of the discussions: “Every year, ture and other natural resources, biotech-
nology … will not only improve efficiency
of production and the quality of products,
but also facilitate trade and international
development cooperation.”
The panel discussions
Six international experts participated in
three panel sessions focusing on biotech-
nology in relation to food security, health
and sustainable production.
OFID Director of Strategic Planning
and Economic Services Faris Hasan opened
the first session on ‘Food and Nutrition’
with an explanation of the complex rela-
tionship between energy, water and
food—the nexus—and the importance of
these interrelated resources.
“Agricultural and food-related prac-
tices use more water than any other
human activity, and the agricultural sec-
tor consumes some 30 percent of the
world’s energy,” stated Hasan. “This nexus
OFID Director-General Al-Herbish (left) and UNIDO Director-General Li Yong now forms the core of OFID’s Corporate
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