The importance of cities and good urban governance
NIGHT OWL
As centers of commerce, growth and innovation, cities play a crucial role in driving not only national but also global economic progress. They contribute more than 80 percent of global GDP.
Since cities provide more and better economic opportunities as well as better access to key services than in rural areas, people are naturally drawn to cities.
Today, more than half of the world’s population are already living in cities. And according to the United Nations, 70 percent of the population, or roughly 6.3 billion people will be urban dwellers by 2050.
At present, many cities in the world are facing the complex challenges of urban development as they strive to ensure citizens have access to clean water supply, safe and healthy settlements, accessible and efficient public transportation, appropriate sewage and waste disposal systems, among others.
It has become a challenge to strike a balance between economic productivity and sustainability. As cities grow, social inclusion and environmental sustainability seem to be placed at the bottom list of the agenda.
In the Philippines, local government units (LGUs) are aiming to address urbanization challenges through smart city initiatives. According to the Department of Interior and Local Government (DILG) and the World Bank, there is substantial interest and progress in smart city development nationwide.
About 70 percent of urban LGUs are planning for smart city development. In fact, 61 percent already have smart city projects in progress, and 56 percent have established policies to support this development.
It is estimated that 102 million Filipinos will live in cities by 2050. Thus, good urban governance will be an important pillar of successful cities, all the more if our aim is toward building smart cities. The World Bank cites areas to consider for policy reforms to address challenges in urbanization.
First is managing urbanization for efficiency and growth, which includes better coordinating spatial planning, land use, infrastructure development and service delivery, encouraging mobility in the labor market, and improved transport infrastructure to lower transportation costs, among others.
It is also important to improve city competitiveness for local economic development and job creation by simplifying licensing and permitting, and standardizing requirements and procedures; investing in basic infrastructure, and opening up land markets to make areas more available for development.
Creating opportunities for the urban poor is likewise crucial in promoting inclusive growth. Both national and local governments must prioritize programs for affordable housing and basic services, foster participation at the community level for slum upgrading, provide incentives for completion of secondary education, and invest in livelihoods and job support for low income groups.
Finally, we need to strengthen institutions and governance of metropolitan areas for efficient service delivery and sustainable urban planning and management, as well as improve land administration and management to open up land markets.
LGUs are at the forefront of this journey toward building sustainable cities. But they cannot do this alone. Stronger collaboration between the national and local governments, as well as partnerships with stakeholders, including the private sector, development organizations, non-government organizations, the academe, and the community of citizens are all crucial in creating cities of the future — smart cities that are not only advanced, but more importantly livable, inclusive, and sustainable.