Designing Tomorrow's Cities. Eschborn Dialogue 2005

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    Deutsche Gesellschaft frTechnische Zusammenarbeit (GTZ ) GmbH

    Focus Fascination Future:

    Designing tomorrows cities

    2005

    Jahre GTZ. Partner fr Perspektiven. Weltweit. 30 Years GTZ. Partner for the Future. Worldwide. 30 Jahre GTZ. Partner fr Perspektiven. Weltweit. 30 Years GTZ. Partner for the Future.

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    Contents

    3 Preface

    Eschborn Dia logue 2005

    4 Anatomy of the city

    8 Voice of the cityWorkshop 1

    9 The power of cities the influence of networking

    10 Heritage as an assetWorkshop 2

    11 Development without culture or culture-driven urban development?

    12 Balancing act between boom and povertyWorkshop 3

    13 Poor rich city between economic growth and financial crisis

    14 Matters of securityWorkshop 4

    15 City worth living in security and rights for all

    16 Governance by rulesWorkshop 5

    17 Urban governance how do cities stay manageable?

    18 Urban ecomodelsWorkshop 6

    19 Ecocities the places of the future?

    20 Transfer between city and hinterlandWorkshop 7

    21 Town and country connections create benefits

    22 Efficient cities for peopleWorkshop 8

    23 Bringing the city close to the people through participation and transparency

    24 The world as city

    26 GTZ profile

    27 Contacts

    Published by: Deutsche Gesellschaft fr Technische Zusammenarbeit (GTZ) GmbH, Dag-Hammarskjld-Weg 1-5, 65760 Eschborn, GermanyTelephone: +49 6196 790, fax: +49 6196 791115, email: [email protected], Internet: www.gtz.deEditorial staff: Jens Heine/[email protected] (responsible) and Georg Schuler/KonzeptTextRedaktion, MainzProofreader: Manhard Schtze, Frankfurt am Main | Design: Eva Hofmann, Frankfurt am MainPhotos: Dirk Ostermeier (event) and GTZ archive | Litho: Communications Albecker & Haupt GmbH, Frankfurt am MainPrinted by: Druckerei und Verlag Otto Lembeck, Frankfurt am Main | printed on 100% recycled paper | August 2005

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    Urban development will have a decisive

    influence on whether people 20 years

    from now have an environment worth

    living in. Can we avert climate collapse

    and how can we live in a world without

    oil? We can only find answers to these

    questions if we include the city as a factor

    in the scenario, as Volker Hauff, Chair-

    person of the German Council for Sus-

    tainable Development, said at the start of

    the Eschborn Dialogue 2005. For two

    days, the specialist conference under the

    banner Focus Fascination Future:

    Designing tomorrows cities took a closelook at all the facets of urban develop-

    ment. As every year, many prominent

    guests accepted GTZs invitation, this

    time to discuss its spotlight theme of the

    year tomorrows cities with develop-

    ment experts.

    Countries with high-growth economies

    such as Brazil, India, China or South

    Africa bear a great responsibility. The

    consequences for people and the environ-

    ment could be enormous if we chart the

    wrong course, Hauff warned. The nations

    of the North must set a good example

    before they start telling others what to do.

    He explained that a key problem was

    rural exodus. Despite all the problems

    this caused, cities were growing, particu-

    larly in developing and more advanced

    countries. A major reason for ongoing

    migration lay in the economic resources

    concentrated in the municipalities. As

    GTZ Managing Director Bernd Eisen-

    bltter pointed out, cities are engines of

    growth and earn a major part of national

    income. People see cities as the only

    chance to escape poverty. In Asia alone,

    the urban population has grown by 163

    per cent since 1975. Eisenbltter: The

    urban population in Africa grows by fiveper cent every year.

    GTZ has been dealing with the prob-

    lems of towns and cities and urban devel-

    opment for 30 years, since it started. The

    focus at the beginning was on such items

    as developing infrastructure, the drinking

    water supply and sewage and refuse dis-

    posal, as GTZ Director General Cornelia

    Richter explained. The political dimension

    of urban development has since moved

    to the forefront of attention. The Indian

    social scientist Sheela Patel, Director of

    the NGO SPARC, called for urban devel-

    opment to include poverty alleviation. The

    founder of SPARC, an advocate of the

    rights of the urban poor, underpinned her

    argument by citing the situation of the

    poor in Mumbai.

    At the EFTA opening event with the

    theme Changing world focus on the

    city Stuttgarts Mayor Wolfgang Schuster

    pinpointed some trends in his city that

    run counter to those in the South. As an

    export-dedicated city, Stuttgart is one

    of the winners of globalization, but the

    population is shrinking: children and

    youth live in only 19 per cent of house-

    holds in the Stuttgart area and ten per

    Eschborn Dialogue 2005

    Anatomyof the cityFor two whole days, GTZEschborn talked about just onething: tomorrows cities. Inworkshops and panels at theEschborn Dialogue 2005,prominent guests and devel-opment experts discussed key

    issues in urban development.

    4

    Wolfgang Schuster,Mayor of Stuttgart

    Sheela Patel,Director SPARC

    Steffen Seibert,chairperson from ZDF

    Erich Stather, State Secretary at theGerman Federal Ministry for EconomicCooperation and Development (BMZ)

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    cent of those are one-child households.

    We have four times as many cars as

    children", Schuster said. An important

    countervailing factor in the trend towards

    fewer children was migration, with mi-

    grants accounting for thirty per cent of

    the citys inhabitants, making it increas-

    ingly international. What would things

    look like without these children? the

    mayor asked. Alluding to the use of re-

    sources, he warned against taking urban

    development in the industrialized coun-

    tries as a precedent for the countries of

    the South. Schuster: We cant globalizeour way of doing things.

    Erich Stather stressed that develop-

    ment policy must cater for the problems

    of the megacities just as for those of

    small towns. Our aim is to keep people

    in the rural areas, the State Secretary

    of BMZ (German Federal Ministry for

    Economic Cooperation and Development)

    added. In answer to moderator Steffen

    Seiberts question of whether develop-

    ment funds should be reallocated in

    favour of urban development, Stather

    said no, but pointed out that overall de-

    velopment assistance was being raised

    by a considerable margin, reaching the

    0.3 per cent mark next year, 0.51 per

    cent in 2010 and 0.7 per cent in 2015,

    as agreed by all European countries.

    InfotainmentAfter the opening statements to the

    Eschborn Dialogue 2005, four workshops

    took a close look at major facets of the

    GTZ spotlight of the year, Designing to-

    morrows cities. After a demanding after-

    noon of discussions, the loudspeakers

    in the GTZ buildings finally announced:

    The shuttles for the evening event are

    waiting. At the Commerzbank Plaza in

    Frankfurt, the EFTA organizers provided

    some infotainment before the second

    round of workshops due to continue the

    next day. Chairperson Steffen Seibert

    from ZDF television invited the guests

    to explore the Fascination of the city

    between vision and reality, or the city of

    hell as he added before going on to lead

    the audience through the evening as an

    informed and attentive guide.

    With an entertaining spot, Lee Roy

    the B Boy marked the divide between the

    first obligatory EFTA day and the volun-

    tary exercise. His street dance on stage

    gave the audience a taste of the global

    rap culture with its roots in the cities

    of the USA. Could someone dance like

    this on the streets of Kabul? Steffen

    Seibert asked his first quest Qiamuddin

    Djallalzada, who personifies a part of

    modern Development Cooperation. An

    Afghan by birth, he returned to his native

    country as a CIM Integrated Expert

    (Centrum fr internationale Migration und

    Entwicklung) after 20 years in Germany

    and now contributes to shaping its devel-

    opment as Deputy Minister of Urban

    Development and Housing. There were

    no rappers in Kabul, he answered, but

    the music and the lust for life, so long

    taboo, were back.

    Since his return in 2002 Qiamuddin

    Djallalzada has himself witnessed how

    Kabul has grown from 700,000 inhabitants

    to 3.5 million. This rapid developmenthad overtaken the masterplans which

    were originally conceived for 1.2 million

    people at most, said the Afghan, who has

    lived in the German town of Aachen and

    returned to Kabul with a German pass-

    port. The plans for the secondary cities

    had also been superseded. The countrys

    development planners were looking for

    ways to stem the influx into Kabul and

    other cities, by land allocation in the

    provinces, for example. Under no circum-

    stances, however, did the Afghan govern-

    ment want to stop the ongoing exodus

    from the provinces with state interven-

    tions, which would run counter to its

    liberal principles, Qiamuddin Djallalzada

    explained. Though short of water and

    housing, the people of Kabul would

    muster the patience to thwart the plans

    of political troublemakers, and what was

    more, The mass migration to Kabul is

    strengthening national unity.

    Let people into the cities or keep

    them out? This was also a key question

    in Steffen Seiberts interview with Indias

    Ashok Khosla. The answer the president

    of the New Delhi NGO, Development

    Alternatives, gave was, however, quite

    different to that of the previous speaker

    from Afghanistan. Ashok Khosla, who

    with his international biography is for

    many the personification of globalization,

    answered with a categorical no to

    keeping the cities open. We needed the

    opposite approach to current mainstream

    thinking. To save the cities, we have to

    keep people in the country and send the

    investors there, he said. Allocating 40

    per cent of regional budgets to the urban

    centres would only make everything

    worse. Something had to be done for

    the hinterland, he demanded. That wouldcertainly be cheaper and NGOs were

    the decisive factor. Ashok Khosla: God

    bless their hearts strike!

    The urban problems at the beginning

    of the 21st century are unprecedented

    Volker Hauff, Chairperson of theCouncil for Sustainable Development

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    in history, as GTZ Managing Director

    Wolfgang Schmitt said at the opening of

    the evening event, pointing to the limits

    of development work. Despite all the great

    competency and outstanding expertise,

    he warned, many questions on cities

    would have to remain unanswered. In

    conversation with moderator Steffen

    Seibert from Germanys ZDF television

    channel he added another point: consid-

    ering the host of urban problems, devel-

    opment experts would do well to listen

    first to the people and decision-makers

    involved. GTZ was known for its listening

    experts, but frequently also for insisting

    on competencies when solving problems.

    With its institutional bias, German Devel-

    opment Cooperation would do well to

    learn more from the Anglo-Saxons. In-

    stead of looking at problems through in-

    stitutional glasses all the time, it certainly

    made sense to pick out the ten out of

    100 mayors who were prepared to take

    risks to change the status quo and could

    otherwise spend a long time asking

    the establishment for help to no avail.

    On the idea of preparing todays

    opposition for tomorrows government,

    Wolfgang Schmitt then also reminded the

    audience of GTZs limits. This is where

    the political foundations came in at the

    very latest, said the GTZ Managing Direc-

    tor. Sharing tasks with the political foun-

    dations was one of the great strengths

    of German Development Cooperation.

    Megacities as partners?Development policy is increasingly turn-

    ing into urban policy. This prediction

    was made by Peter Herrle, professor at

    the Berlin Technical University, who intro-

    duced the closing event of the Eschborn

    Dialogue 2005 after the second round

    of workshops with the theme Shaping

    the future designing cities. Rapid popu-

    lation growth in developing countries and

    the strong attraction of urban centres were

    the reasons why cities were growing and

    new ones kept emerging. Peter Herrle is

    firmly convinced that new megacities will

    spring up, particularly in Asia, but urban-

    ization is taking on a new shape. Tomor-

    rows city with over a million inhabitants

    will be an expansive conurbation, includ-

    ing stretches of rural land, and have a

    much lower population density than cities

    in the 19th and 20th centuries. Develop-

    ment cooperation should, he urged, ven-

    ture into the big cities, because this was

    where the central challenges of Develop-

    ment Cooperation were most pressing:

    poverty and social inequality, environmen-

    tal pollution, the depletion of resources

    and insufficient infrastructure. Herrle cau-

    tioned, however, against simply exporting

    Western methods of urban planning. They

    needed to be tailored to local needs and

    conditions, drawing on the experience of

    Western urban planners and the advisory

    Qiamuddin Djallalzada, Deputy Minister forUrban Development and Housing, Afghanistan

    Steffen Seibert,moderator from ZDF

    Wolfgang Schmitt,GTZ Managing Director

    Ashok Khosla, President ofDevelopment Alternatives, India

    Bernd Eisenbltter,GTZ Managing Director

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    and mediating capacities of all institutions

    in Development Cooperation.

    In the following discussion, Stephan

    Articus, Executive Director of the German

    Association of Cities, was of the opinion

    that German Development Cooperation

    should concentrate on advising medium-

    sized cities. This was where Germany

    could best draw on its wealth of experi-

    ence. Ursula Schfer-Preuss, in contrast,

    argued that Development Cooperation

    should definitely venture into cooperation

    with megacities. The BMZ Director

    General for Cooperation with Countriesand Regions, Peace-Building and the

    United Nations advocated cooperation

    in demarcated sectors and cited as best

    practice the air-pollution control project

    in Mexico City.

    For Cornelia Richter, cooperation was

    imperative with the metropolises and with

    medium-sized cities alike, because the

    municipalities are closest to the people,

    said the GTZ Director General for Plan-

    ning and Development. Microfinance pro-

    grammes were also very successful at

    this level. Hanns-Peter Neuhoff, Senior

    Vice President for America, Africa and

    the Middle East at the KfW Entwicklungs-

    bank (KfW development bank), stressed

    that poor populations were quite capable

    of taking entrepreneurial initiative and

    paying back loans. Urban development

    must harness this potential.

    Moderator Volker Angres from German

    televisions ZDF environment magazine

    then asked whether Development Coop-

    eration was investing more in cities. The

    final panel of the Eschborn Dialogue 2005

    agreed on the need to avoid one-sided

    development. Urban development must

    always cater for rural areas because of

    the mutual interdependencies. The Mali

    North project was a showcase for how to

    harness urban and rural resources for re-

    gional reconstruction. In his final address,

    GTZ Managing Director Bernd Eisenblt-

    ter also contended that Technical Coop-

    eration should seek partners in mega-

    cities, in growing medium-sized cities and

    in rural areas alike, depending on needs

    and on task-sharing with other partners.

    Development Cooperation must not lose

    sight of its limits, however. It must always

    build on what is already there, Eisenblt-

    ter stressed. Like Peter Herrle before him,

    the GTZ Managing Director urged closer

    cooperation between GTZ and the univer-

    sities.

    His special thanks went to the politi-

    cal foundations for their contribution

    to the Eschborn Dialogue. Bernd Eisen-

    bltter: The exchange with all of you,

    the different views and the many good

    practices we learn about make the

    Eschborn Dialogue GTZs foremost

    human resources development event.

    7

    Volker Angres,

    moderator from ZDF

    Cornelia Richter,GTZ Director General for Planningand Development

    Ursula Schfer-Preuss,

    BMZ Director General

    Hanns-Peter Neuhoff, Senior Vice

    President at the KfW development bank

    Stephan Articus, Executive Directorof the German Association of Cities

    Peter Herrle, Professor at theTechnical University Berlin

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    Municipalities worldwide come together

    to seek strategies for solving typical

    common problems. The resulting city

    networks have been making a name for

    themselves for more than fifteen years.

    The international community has

    recognized the political dimension of

    municipal problems, but all too often,

    when it comes to drafting national policy

    including the implementation of the

    Millennium Declaration urban govern-

    ments and their innovative ideas are left

    out of the equation. So through these

    networks GTZ contributes to giving cities

    a say.

    For the sake of Development Cooper-

    ation it is important that cities and munic-

    ipalities have a greater say as a dialogue

    partner at international level. Urban

    governments in particular are engaged in

    the fight against rising poverty. This is

    why Agenda 21 of 1992 and the Habitat

    Agenda of 1996 are also concerned that

    city networks learn from each other and

    send messages beyond city precincts.

    The more the economic and political sta-

    tus of cities changes within countries and

    in the international context, the more rele-

    vant is their experience with water supply

    and sewage disposal, waste management

    and transport, environment and housing,

    access to finance, economic develop-

    ment and the fight against violence and

    crime. Cities can develop strategies for

    future economic and social life that can

    prompt changes in other urban centres,but also across regions or even national

    frontiers.

    This has implications for the interac-

    tion amongst political, administrative,

    business and civic stakeholders at urban

    level and for their relations with national

    government. It also affects municipal

    associations. Party-political differences

    between urban and national governments

    can yield new approaches and compro-

    mises acceptable to everyone, or exacer-

    bate conflicting interests. Clearly, a grow-

    ing number of municipal policy lobbyists

    are entering the national and international

    political arena. Whether the city networks

    can perform their role successfully in co-

    shaping global development will depend

    above all on the integration and partici-

    pation of the poor urban population, who

    are not usually organized. The achieve-

    ment of the Millennium Development

    Goals also depends to a great extent on

    this.

    Modern city networksA case in point of how German Develop-

    ment Cooperation supports approaches

    and exchange of experience in urban

    poverty reduction is the Cities Alliance

    founded in 1999. Its members now in-

    clude the World Bank, UN-Habitat, the

    UN Development Programme, twelve

    states, the Asian Development Bank and

    four municipal federations. Founded in

    2004, the mission of the international

    association, United Cities and Local

    Governments (UCLG), is to represent the

    interests of cities and municipalities and

    contribute to co-shaping global develop-

    ment.

    GTZ has also gained experience inhelping to organize a development proj-

    ect based on twinned cities. It advises

    German municipalities on developmental

    issues in their international activities and

    offers practical assistance in projects.

    Advisory services for inter-municipal

    corporations and municipal associations

    have been in keen demand in Technical

    Cooperation for years.

    An excellent example of municipal

    development partnerships is the Cauca-

    sus city network, which GTZ supports on

    behalf of the German Federal Ministry for

    Economic Cooperation and Development

    (BMZ). The project builds on city twinning

    arrangements between Tbilisi and Saar-

    brcken, Telawi and Biberach-on-the-

    Riss, and Sumgait and Ludwigshafen.

    Knowledge and experience gained in

    German cities is combined with strategic

    developmental objectives, which facili-

    tates regional know-how transfer and

    joint learning between partners. Mutual

    learning processes strengthen municipal

    government capacities and promote par-

    ticipation by the urban population. The

    process also contributes to defusing

    conflicts in the Caucasus region. One ex-

    ample of vertical and horizontal network

    expansion is provided by the institutional

    partnerships between the Georgian Asso-

    ciation of Local and Regional Authorities

    and the German Association of Cities.

    Cooperation with the municipal federa-

    tions in Latin America is another. Collabo-

    ration with the Municipios y Asociaciones

    de Gobiernos Locales (FLACMA) in South

    America and the Federacin Municipios

    del Istmo Centroamericano (FEMICA)

    in Central America aims at building up

    knowledge management capacities in theregion and trying out new forms of inter-

    municipal and international cooperation.

    These approaches are in line with the

    way cities see themselves. The municipal

    development partnerships also attempt

    Voice of the cityCities seek solutions tocommon problems by lookingto networks. Their resourcesand their political experiencelend weight to their nationaland international role. GTZpromotes exchange oninnovative approaches andinvolves municipalities aspartners in dialogue.

    8

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    9

    new forms of international cooperation

    in and with city associations and in direct

    collaboration with city authorities. The

    organizations in international cooperation

    have recognized the importance of the

    cities and make more use of networks,

    partnerships and alliances in implement-

    ing their projects. They bear co-responsi-

    bility for internationally agreed develop-

    ment goals and achieving sustainable

    impacts.

    Workshop 1The power of cities the influence of networking

    "The political and economic role of cities

    has changed." With these words, Nigel

    Harris opened the specialist discussion

    at the Eschborn Dialogue 2005 workshop,

    Power of the cities the influence of net-

    working, citing globalization and deindus-

    trialization as the reasons. The emeritus

    professor at the Development Planning

    Unit of University College London also

    pointed to a marked functional shift: For

    many cities the connection to the global

    economy is already more important than

    relations with their own national govern-

    ment."

    Cities should exchange good prac-

    tices in networks and develop their com-

    parative advantages, the London econo-

    mist advocated. Decentralization was an

    important prerequisite for their economic

    success. Worldwide trends in migration

    were another factor in competitiveness.

    Nigel Harris: International institutions

    should help cities to integrate into the

    world economy and facilitate immigra-

    tion, particularly in large conurbations.

    The question for GTZ Country Director

    Chile, Jrg-Werner Haas, in conversation

    with chairperson Annette Riedel from

    Deutschland Radio Berlin, was how small

    and medium-sized cities fitted into in this

    picture. International cooperation must

    engage more in large cities, but also

    build on experience gained in small and

    medium-sized urban centres. In municipal

    networks, a distinction needed to be

    drawn between temporary networks to

    solve specific problems, and institutionaland municipal associations and the World

    Association of Cities and Local Govern-

    ments. Haas forecast that city networks

    would be more involved in international

    developments in future. Situational co-

    operation and advice to meet needs was

    the way to sustainable success for all

    stakeholders.

    Phase of possibilitiesA centralized state apparatus can be

    more helpful than delegating power to

    local government, as Zurab Chiaberashvili,

    the mayor of the Georgian capital Tbilisi,

    contended. He cited anticorruption as a

    case in point. For me it is important to

    build infrastructure, but it is all the more

    important for citizens to learn to organize

    themselves to tackle their problems

    and to bear some of the costs, said

    Chiaberashvili. The more the population

    is involved, the sooner municipalities can

    solve their problems. The twin towns

    Tbilisi/Saarbrcken in the Caucasus city

    network have now begun a phase of

    possibilities to develop joint strategies in

    administrative reform and local govern-

    ance. Mark Hildebrand, head of the Cities

    Alliance office in Washington, emphasized

    the advantages of city networks: Cities

    learn more effectively in networks than

    from donors, he said. International

    agreements had accorded them a central

    role in drafting and implementing inter-

    national conventions. After all, the cities

    were the entities that had to do most to

    achieve their objectives, as specified in

    strategy papers on poverty reduction and

    in the Millennium Development Goals.

    Walter Leitermann, Deputy Secretary

    General of the Council of European

    Municipalities and Regions in the GermanAssociation of Cities, looked beyond

    everyday political problems when he

    pointed out at the end of the workshop:

    Municipal self-governance is of value

    in itself. This political good must be

    supported, at national, international and

    global level.

    Jrg-Werner Haas,GTZ Chile

    Zurab Tschiaberashvili,mayor of Tbilissi, Georgia

    Mark Hildebrand,Cities Alliance

    Nigel Harris,University College London

    Walter Leitermann,German Association of Cities

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    Culture plays a major role in the eco-

    nomic and social development of a city.

    Municipalities as various as Bangalore,

    Barcelona and Weimar demonstrate what

    numerous studies from previous years

    have claimed: taking active cultural

    measures and safeguarding the cultural

    heritage can go a long way towards im-

    proving locational quality and contribute

    to economic growth, employment promo-

    tion and social identity. With its integra-

    tive approach, Technical Cooperation also

    seeks to make culture a driving force in

    urban development.

    International specialists are following

    with interest what is happening in Aleppo,

    Shibam and Sibiu, formerly Hermann-

    stadt, where GTZ and its local partners

    have found a common denominator for

    culture and development. The formula is

    integrated urban and historic city devel-

    opment. In the iridescent historic districts

    in partner cities in Syria, Yemen and Ro-

    mania, Technical Cooperation is seeking

    to preserve the cultural heritage by doing

    more than just restoring historical monu-

    ments, as in the past. On behalf of the

    Federal Ministry for Economic Coopera-

    tion and Development, the integrated

    project approach supports local partners

    in renovating residential buildings and

    infrastructure, while promoting crafts,

    tourism, administration and the initiatives

    of the residents. GTZ, then, sees culture

    as a resource for economic and socialdevelopment. This is also the view the

    World Bank and UNESCO have adopted

    for several years in their efforts to high-

    light the economic and social aspects of

    cultural development. To be included in

    the UNESCO World Cultural Heritage list,

    a project needs to submit a management

    plan and ensure the active inclusion of

    the local population.

    Living identityGTZ Development Cooperation combines

    modern urban development with safe-

    guarding the cultural heritage to prevent

    cities and urban-dwellers from losing their

    sense of history and identity. Technical

    Cooperation refurbishes and revitalizes

    historic districts and fosters resilient

    cultural traditions at the same time. This

    gives the districts a sharper profile and

    improves the quality of life for the resi-

    dents, because the cultural heritage fig-

    ures as an important element in today's

    city-dwellers sense of identity and in

    social and cultural cohesion. This holds

    all the more at a time when standard

    methods of construction and use, ruth-

    less modernization, dilapidation or over-

    exploitation threaten to deface or even

    completely obliterate the cultural heritage.

    Many historic cities also play an impor-

    tant part in national identity.

    The integrative project approach

    also takes account of tourism, which

    often promotes local, regional and even

    national economic development in turn.

    Because renovating old buildings is far

    more labour-intensive than building new

    houses, it contributes to employment.

    Small and medium-sized local enterprisesbenefit in particular from the demand

    generated in the building sector.

    By European standards, Germany

    has the best record in rehabilitating and

    revitalizing historic cities. Nowhere else

    have more old cities and residential

    districts been professionally renovated

    to preserve their historical character since

    the end of the nineties than in the new

    German federal states. Combined with

    the project approach of integrated urban

    and historic city development devised

    by GTZ, this experience provides useful

    input for urban renewal projects. GTZ

    has taken a pioneering role here, as

    confirmed by UNESCO. The experience

    gained will be harnessed for future

    projects in urban and historic city devel-

    opment.

    Parallel institutionsDespite these successful projects, city

    managers and development experts

    have still not fully grasped the connection

    between culture and development. In

    institutional terms, these two aspects are

    also still leading parallel lives in interna-

    tional cooperation. In Germany too, where

    the cultural sector in the conventional

    sense is an intervention prerogative of the

    Federal Foreign Office, the activity area

    of harnessing cultural heritage for urban

    development and the related project

    types such as sustainable urban renewal

    or historic city renovation are new in

    Development Cooperation, and the notion

    of culture is also acquiring broader

    connotations in German development

    assistance. Treating culture as an asset

    transcends the so-called socioculturalframework in the partner countries, which

    we have so far tried to understand, cater

    for and possibly change.

    With a better understanding of the

    role of culture and through new partner-

    Dealing with the cultural identityof our partners in a professionalway has long been acknowl-edged as an important factor inDevelopment Cooperation.Upholding tradition in combinationwith necessary modernization isan innovative way of addressingthe issue of culture in urban

    development.

    Heritageas an asset

    10

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    11

    ships, culture can be assimilated more

    in urban development. Culture should be

    integrated more closely into project work

    even if the culture sector is still not a

    classic GTZ activity area. A more profes-

    sional approach to the cultural identity

    of partners in project work has long been

    a called for. Specifically strengthening

    this cultural identity can help to combine

    the desire to keep traditions alive with the

    need for modernization in urban develop-

    ment. This is just what Christina Weiss,

    the German Minister of State for Culture

    and Media thinks: We cannot base ourlives solely on what we think is efficient.

    Workshop 2Development withoutculture or culture-drivenurban development?We breathe more easily in the city. Just

    a clich? Not at all. The city embodies

    lifestyle, emancipation, democracy and

    participation, said Christoph Beier, GTZ

    Director General for the Mediterranean

    Region, Europe and Central Asian Coun-

    tries, at the start of the workshop Cul-

    ture-driven urban development at the

    Eschborn Dialogue, adding that the hall-

    marks of the urban lifestyle were also

    developmental goals. There was a link

    between good cultural synergies and

    good development paths.

    The workshop panel discussion asked

    what priorities the Federal Foreign Office

    (AA) in Berlin, which is responsible for

    cultural cooperation, and GTZ should set

    and how culture could advance urban

    development. The resources for cultural

    development abroad are meagre, less

    than two million euros a year, said Hans

    Jochen Schmidt, Head of the Culture and

    Education Division at the AA. Support so

    far, he said, had included a symposium

    on urban development in Kenya and a

    cultural heritage event in St. Petersburg.

    The cooperation envisaged with the

    German Academic Exchange Service

    and the Goethe Institutes would harness

    synergies in cultural activities, given the

    shortage of funds. The AA wanted toenlist the support of the private sector

    as a cultural partner too. Schmidt also

    advocated stepping up cooperation with

    the State Minister for Culture and Media

    and the cultural foundations for Eastern

    Europe.

    Everyday life in a monumentFinally, Steffen Mildner made a link from

    the mother of all GTZs urban projects

    in Bhaktapur/Nepal, which aimed solely

    at preserving historical monuments, to

    integrated urban and historic city devel-

    opment. Thanks to many parallels, this

    approach had been able to learn from

    the upgrading projects for marginal urban

    districts, which the World Bank describes

    as one of its most successful project

    types, said the head of the GTZ team

    in the project to redevelop the historic

    Romanian city of Sibiu/Hermannstadt.

    The integrated historic city and urban

    development project sought to harness

    the cultural heritage of the old part of the

    city and the lifestyle of the residents as

    a development factor. Renewing historic

    cities went hand in hand with revitalizing

    economic and social life. Mildner: Pre-

    serving historic cities is not a luxury, it is

    about income generation and economic

    development.

    However, life in historic cities is

    only one of many cultural messages a

    city communicates, said the internation-

    ally renowned cultural expert Charles

    Landry. The many urban elements taught

    us to see the city as a living synthesis

    of the arts. The urban milieu coloured

    the emotional life of the residents who

    identified themselves with it and then

    translated this feeling into creative

    activity. Drawing on his project experi-

    ence in Egypt, Omar Akbar, Director

    of the Bauhaus Dessau Foundation,

    added: Alliances of culture, business

    and tourism fit into this scenario.

    The panel then suggested finding

    a pragmatic way for AA as a cultural

    partner and BMZ as a development part-

    ner to work together, because as the

    workshop revealed, culture and urban

    development were inseparable from each

    other. Competencies for culture and

    Development Cooperation should there-

    fore be merged. More room should be

    given in projects and programmes to

    experiments with urban subculture. GTZ

    Director General Christoph Beier: We

    must be more receptive and look for

    interconnections now and in the future.

    Hans-Jochen Schmidt, Head of

    Culture and Education Divisionat the Federal Foreign Office

    Steffen Mildner, GTZ staffmember in Romania

    Cornelia Dmcke, Managing

    Director of Culture Concepts

    Christoph Beier, GTZ DirectorGeneral for the MediterraneanRegion, Europe and Central

    Asian Countries

    Omar Akbar, Director of theBauhaus Dessau Foundation

    Irene Wiese-von Ofen,IFHP

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    Cities are pillars of economic growth and

    at the same time battlefields in the war

    against poverty. They play a pivotal role

    in both: for the economic development

    of entire countries and for the reduction

    of poverty at home. Achieving the Millen-

    nium Development Goals set by the inter-

    national community therefore depends

    on whether populous cities meet their

    great economic and social responsibility.

    Development Cooperation supports the

    municipalities on the way to viable and

    sustainable development and helps close

    the gap between rich and poor.

    The most challenging task is to pro-

    vide the population with public services

    and involve poor people in economic life.

    This is compounded by the enormous

    attraction that cities exert on people,

    despite all the municipal problems. So

    cities will have to perform a balancing

    act. They have to improve their locational

    advantages to attract new businesses

    and at the same time they need a pro-

    poor economic development policy to

    offer income opportunities and services

    to the poor. The job of Technical Cooper-

    ation on behalf of BMZ is therefore to

    bring together the urban stakeholders

    with their different interests in a strategy

    that aims at harnessing the strengths of

    public and private partners. This strategy,

    however, cannot be implemented like a

    blueprint. Each city has different, oftenparallel, economic and employment

    cycles.

    Another aim in many developing

    countries must be to use the resources of

    the informal economy and integrate these

    in formal economic activities. It is very

    important for the cities to succeed here.

    Local policy must also promote the inter-

    national competitiveness of the local

    economy. Effective incentives are needed

    to get international companies to invest.

    Small and medium-sized enterprises also

    have specific needs that the city must

    cater for. To improve the competitiveness

    of cities through joint efforts, functional

    mechanisms for dialogue and coordina-

    tion are required. These have to be put

    into place. When doing this, care must be

    taken to ensure that underprivileged sec-

    tions of the population also have a say

    in municipal decision-making processes.

    For Technical Cooperation, it is important

    that as many people as possible can

    participate in the opportunities afforded

    by urban development.

    Development Cooperation assists the

    municipalities in setting the right frame-

    work to meet all the different demands

    as the basis for broad economic develop-

    ment. The GTZ advisers contribute to

    improving the business and investment

    climate, administrative procedures and

    regulations. They develop institutional

    and operational capacities, improve quali-

    fications and help micro and small enter-

    prises gain access to credit. As the GTZ

    portfolio shows, policy strategies to

    promote economic growth in cities must

    cover a very broad range of concerns andbe carefully planned. This is the only way

    to ensure that cities develop with the par-

    ticipation of underprivileged groups and

    do not lag behind international develop-

    ments. Technical Cooperation also takes

    account of globalization in this. Efficient

    city managers can build bridges between

    global players and their municipalities.

    Different starting conditions inevitably

    lead to disparities in and between cities

    of different sizes. Economic and social

    life diversifies. Municipalities must also be

    able to keep pace with these processes

    to remain effective.

    Private sector as partnerThere are more questions to answer. How

    can cities supply drinking water, transport

    infrastructure, educational facilities or

    hospitals in view of rapid population

    growth and the shortage of public funds?

    How can they meet the growing demand

    for investments, innovations and know-

    how? For a long time, privatization was

    regarded as the universal remedy for fi-

    nancing urban infrastructure and services.

    The wave of privatizations in the 1990s

    showed, however, that trickle-down

    effects and getting the prices right

    are not enough to meet the challenges.

    Current experience in urban development

    approaches in different regional settings

    enable us to give more discriminate

    answers to these questions. On account

    of efficiency gains and capital resources,

    privatization approaches still figure in

    development strategies.

    GTZ is committed to the vision of

    sustainable urban development. To putthis vision into practice, a systemic pro-

    cedure is needed that includes different

    stakeholders, and economic, ecological

    and social negotiating processes that

    give shape to the local future and institu-

    Balancing actbetween boomand poverty

    12

    The cities in the partner countrieshave to perform a balancing act.Keen locational competition andeconomic development that tack-les poverty must be reconciled ina joint development strategy. GTZmakes its contribution to placing

    the alliance on as broad a footingas possible.

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    tionalize innovations. To this end, the GTZ

    teams and their project partners cooper-

    ate with public, private-sector and civil

    society players and promote municipal

    self-administration capabilities in keeping

    with the principles of good governance.

    Workshop 3Poor rich city betweeneconomic growth andfinancial crisisWhen experts talk about involving the

    private sector in municipal services, water

    inevitably takes centre stage. This is also

    what happened at the Eschborn Dialogue

    2005 workshop Poor rich city, where

    this issue dominated the first part of the

    session. The second part turned its atten-

    tion to urban economic development be-

    tween poverty reduction and international

    competition. The rsum by Oliver Haas

    on GTZ's work in the activity area initia-

    tive Urban Development Asia holds for

    both theme clusters: Our advisers must

    help municipalities to create a conducive

    business climate to induce enterprises

    to locate and invest in infrastructure and

    new jobs.

    Reporting on experience gained by

    RWE Thames Water in Jakarta, Ulrike

    Ebert made a statement that ran like a

    continuing theme through the discussion:

    Unmanageable risks deter investors.

    Manfred Konukiewitz, Head of the BMZ

    Water, Energy and Urban Development

    Division, assessed the disastrous situa-

    tion as a clear case of government failure,

    because 97 per cent of the water supply

    in developing countries was organized by

    the public sector a clear indicator of the

    unattractive climate for private participa-

    tion. Through efficient management and

    commercial finance, private-sector partic-

    ipation could contribute to affordable and

    efficient supply.

    In the debate, the speakers pointed

    to the need for cooperation between

    public, private and civic agencies. Citing

    experience gained by the GTZ Regional

    Team for South America, Barbara Hess

    added that the security situation played

    a role in the business climate, but shealso pointed to affirmative examples.

    Bogot had succeeded in organizing fi-

    nances, redeveloping districts and setting

    up supervisory authorities, resulting in a

    distinct rise in private investments. When

    a city lacks credit standing, GTZ can

    liaise as an honest broker between the

    municipal authority, industry and banks,

    said Herwig Mayer, GTZ adviser in Manila

    Metro, and Florian Steinberg from ADB

    Housing and Urban Development added:

    National financial sector development is

    essential for the water supply.

    A balancing actThe second big question in the workshop

    was: how can cities manage the balancing

    act between local and pro-poor economic

    development and global competition for

    international enterprises? Mattias Bhle

    provided some insights into economic

    development and locational policy in theHanover region. The head of the GTZ

    Economic and Employment Promotion

    Division dealt in particular detail with the

    role of cluster management in setting

    up businesses. Stephan Weiss from the

    German Centre for Industry and Trade

    in Singapore gave an account of how

    Singapore, Shanghai, Bangkok and Seoul

    were vying for international investors.

    In response to competition, Singapore

    had cut capital gains tax and set up three

    institutes for economic development.

    Finally, there was the question of

    what role Development Cooperation

    could play in framing competitive urban

    locational policy. The prime aim here

    must be to create a favourable investment

    climate through a pro-business institu-

    tional environment. This could also con-tribute a lot to poverty reduction in the

    view of Manfred Konukiewitz, not least

    when bringing informal enterprises into

    the formal sector.

    13

    Florian Steinberg,Asian Development Bank

    Gnter Dresrsse, GTZ

    Ulrike Ebert,RWE Thames Water

    Manfred Konukiewitz, BMZ

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    14

    The cities are growing fast and so is the

    everyday insecurity of their residents in all

    walks of life. The needier sections of the

    population are afflicted by job insecurity,

    ill health, anxieties about their children's

    future, domestic violence and the danger

    of sliding into absolute poverty. The slums

    and illegal settlements on the outskirts

    lack electricity, water, sewage systems

    and basic social services. The social

    security facilities cannot be built fast

    enough to keep pace with the speed of

    urban growth. Fatalism, conflicts, violence

    and crime are on the increase. Those who

    can, afford to live in fortified enclaves

    and pay for their own security them-

    selves, because it hardly exists any more

    as a public good. Municipalities seeking

    to cope with the myriad of insecurity

    factors cannot manage without integrated

    approaches.

    Thanks to their experience in various

    disciplines, Technical Cooperation per-

    sonnel can contribute towards making life

    safer in the large cities. TC has a versatile

    portfolio. In the view of GTZ advisers,

    the sustainable promotion of a culture of

    human security means taking the physi-

    cal, psychosocial and socio-economic

    dimensions into account.

    A culture of human dignityThe international goal, then, is to create

    political, social, ecological, economic, se-

    curity and cultural systems that together

    form the basis for survival and a liveli-hood in dignity. Approaches to making

    life less unpredictable and insecure must

    therefore address both security forces

    in a city and access to basic social ser-

    vices, for instance education and health

    care. Basic security guards against city-

    dwellers succumbing to desperation.

    Maximum attention must be given to im-

    proving the situation of the most vulnera-

    ble sections of the population. This is the

    only way to ensure sustainable security

    for all city-dwellers.

    Security is also unthinkable without

    liberty. The urge to be free of fear is as

    real as the desire to be free from priva-

    tion. Another important facet of security

    is the freedom to stand up for ones own

    interests. So a feeling of security can

    only thrive in a city when participation

    and empowerment are accorded their

    due place in public life. People must be

    enabled to uphold their interests in social

    conflicts and take part in decisions. This

    is why GTZ promotes democratic institu-

    tions to involve urban citizens in munici-

    pal processes.

    Integrated approachesGTZ teams promote integrated and inter-

    disciplinary approaches applying the

    principle of participation in many bilateral

    development projects worldwide. Devel-

    opment experts in South Africa combine

    conflict management in urban centres

    with youth promotion. As community

    peace workers, young unemployed men

    and women cooperate with the police to

    curb violence in the townships. An inte-

    gral component of this project is promot-

    ing training and employment to improve

    the job prospects of the communitypeace workers. This has a dual effect:

    more security and social stability in low-

    income districts.

    The keystone in Mozambique was

    basic security. GTZ advised its partners

    on setting up a social welfare system

    for poor households whose employment

    prospects were so bleak as to threaten

    their survival. As part of a World Bank

    project, the development organization

    explored the proposition that regular cash

    payments to poor households could

    make a decisive, broad and sustainable

    contribution to poverty reduction.

    Disaster risk management is the cen-

    tral security concern in Indonesia. With

    a programme for decentralization and im-

    proving urban services, GTZ contributes

    to enabling the municipalities to cope

    with extreme natural disasters on their

    own in future. The findings of a risk

    analysis are discussed with all decision-

    makers at local level. GTZ helps the local

    authorities to integrate aspects of disaster

    risk management into development plan-

    ning. Risk maps contribute to protecting

    people through appropriate regional

    planning and preventing damage to infra-

    structure. This too is an aspect of sus-

    tainable security in cities, where earth-

    quakes, volcanic eruptions, landslides

    and floods usually cause most harm to

    poor people.

    Prevention is also the maxim in Latin

    America and in New Delhi. With support

    from GTZ, city and municipal authorities

    in four countries of the continent of South

    America are drawing up their own local

    security agendas. For two years now, a

    multisectoral round table in New Delhi

    has been working on integrated addictionprevention. In the New Delhi City Action

    Plan on Drugs, city policymakers have

    now developed a strategy to give particu-

    larly underprivileged poor sections of the

    population more protection and security.

    Mattersof securitySecurity in many cities is nolonger a public good. The lackof structures coupled withviolence born of desperation,are plunging urban areas intocrisis. Municipalities seekingto cope with this insecurity can-not manage without integratedapproaches.

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    In the face of the many different urban

    problems, GTZs contribution may seem

    modest. Nevertheless, these projects and

    programme components represent good

    practices for dealing with the problem

    of insecurity in cities. They provide proto-

    type solutions which are then available

    for broader application.

    Workshop 4

    City worth living in security and rights for all

    Security means everything in peoples

    conditions of life that enables them to

    make use of the goods and services of

    a city. This is how Peter Herrle, Head of

    the Habitat Unit at the Technical Univer-

    sity Berlin, summed up the core theme

    of the Eschborn Dialogue 2005 workshop

    City worth living in security and rights

    for all. As the workshop revealed, secu-

    rity as a development factor cannot be

    viewed on its own, but only as part of the

    total process of reshaping social relations.

    The quality of the district and the

    work situation affected security as much

    as access to basic services did, said GTZ

    staff member Rdiger Krech in his wel-

    coming address to the workshop partici-

    pants. Chairperson Jrg Calliess added

    at the opening: The lack of prospects

    and basic social security leads to socialdisparities, poverty and crime. In the

    opinion of the sociologist, architect and

    urban planner Peter Herrle, urban security

    is based on three interconnected security

    pillars: resilient core communities, a legiti-

    mate monopoly over the use of force, and

    a working civil society. Combining these

    is the paramount concern of urban secu-

    rity. This in turn presupposes the social

    participation of marginalized sections of

    the population as a legal right. Equal

    rights exist formally in many countries but

    many people lack access to them.

    In his paper on social risk manage-

    ment, Ronald Wiman showed that mental

    needs are very high up in the pyramid

    of human needs. As the Deputy Director

    of the Health and Social Services Depart-

    ment in STAKES and adviser to theFinnish Foreign Office observed: People

    do not live to eat, they eat to live. The

    idea behind modern social security was

    not charity, but empowerment. Managing

    social risks called for participation, but

    above all a vision of a society and a city

    that was there for everyone. This scenario

    also included disaster risk management.

    Disasters usually strike cities harder than

    rural regions, said Thomas Loster, Man-

    aging Director of the Munich Re Founda-

    tion. GTZ could use the knowledge of the

    insurance sector in public-private partner-

    ships to conduct risk analyses and iden-

    tify the hot spots in the cities. Strategic

    dialogue amongst politicians, the private

    sector, civil society and city authorities

    was still far too rare.

    Feeling safeIn addition to the two expert speakers,

    two interviews conducted by chairpersonJrg Calliess provided food for thought

    in the workshop. In one interview, Klaus-

    Peter Stender, the Coordinator of the

    German Healthy Cities Network, ex-

    plained the security factor in municipal

    health promotion in the city of Hamburg.

    Municipalities worldwide could learn

    from the network initiated by WHO in the

    mid-eighties, as Klemens Hubert, GTZ

    Country Director South Africa explained

    with reference to the peace and develop-

    ment projects in the townships of Preto-

    ria. In cooperation with the police, groups

    of young peace workers prevent conflicts

    and arbitrate in disputes. Dovetailed with

    social security, housing construction and

    health, this community policing approach

    could definitely be applied in other

    cities as well, because to be successful,security projects must always be social

    projects, as the workshop established.

    15

    Klemens Hubert,GTZ South Africa

    Jrg Callie, ModeratorEvang. Akademie Loccum

    Ronald Wiman,Finnish Ministry of Foreign Affairs

    Klaus-Peter Stender,Healthy Cities Network

    Peter Herrle, TU Berlin

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    16

    A new era has dawned in many city and

    municipal halls in our partner countries.

    Greater democracy, political pluralism and

    deregulation call for a new notion of gov-

    ernance and administration at local level.

    Local decision-makers need to learn good

    urban governance. To apply these princi-

    ples, though, cities, business and industry

    and citizens must often familiarize them-

    selves with their new roles. GTZ supports

    municipalities in this difficult process.

    In the last 15 years, cities in the transi-

    tion and developing countries have ac-

    quired increasing powers to run their own

    affairs in an economical, efficient, trans-

    parent, accountable and participatory way.

    Many governments have delegated politi-

    cal decision-making powers and allocated

    financial resources from the national to

    the local and regional level and introduced

    institutional reforms, new laws and new

    forms of participation. New social and

    civic movements have gained a voice,

    women's associations, and environmental

    and human rights groups, for example.

    To be able to provide the services formerly

    rendered by the public sector, there is a

    general search for new ways to involve the

    private sector and civil society. Many cities

    are engaged in global competition for in-

    vestors and highly qualified personnel. At

    the same time, cities are having to cooper-

    ate more closely and build up networks

    worldwide to be able to cope with their

    pressing problems: economic ties are being

    severed, the social fabric is breaking down,broad strata are excluded from social and

    political participation, there is mounting

    insecurity and crime is on the rise.

    To keep cities manageable and worth

    living in under these difficult conditions,

    those responsible in cities and munici-

    palities must learn to steer developments,

    reconcile divergent interests and settle

    conflicts. This is not just about good will;

    it is also about power and how to use it.

    Many stakeholders are vying to gain

    advantages and influence in the urban

    development arena, established organi-

    zations, informal institutions or loose

    alliances in politics, administration, civil

    society and industry. Government authori-

    ties, societies, associations, NGOs, enter-

    prises, trade unions and religious groups

    pursue specific interests, stand in different

    power relations to each other, and want

    to have a say in decisions on allocating

    resources. All these, however, must play

    a part in the political consensus and take

    on responsibility for their municipalities at

    the same time. Their participation can mo-

    bilize additional resources, provided that

    knowledge, finances and competencies

    are activated and harnessed for a purpose.

    Urban governance also means reor-

    ganizing the way services are provided

    to citizens. The redevelopment of informal

    settlements, municipal services in water,

    energy, wastes and security, and partici-

    patory development planning, land

    management, integrated environmental

    management and local economic devel-

    opment will only work in the long run if

    they are institutionalized. City authorities

    and administrations are not the only ones

    that have to enhance their capacities.

    Administrative bodies, residents' associa-tions, committees and operator organiza-

    tions also need to take on responsibility

    and prepare to perform new tasks, be-

    cause their capabilities are crucial to

    finding lasting solutions to the problems.

    Political managementGTZ provides advisory services for indi-

    vidual fields of activity in municipal and

    urban development and also for general

    policy management. Its experts assist

    local politicians, administrative personnel

    and municipal associations in drafting

    policy guidelines for development in and

    around cities, modernizing administration

    and raising their efficiency and trans-

    parency. They motivate urban stakehold-

    ers to cooperate, to broker processes of

    consensus and civic participation, to help

    in finding constructive ways of settling

    conflicts of interest and to promote new

    forms of public-private partnerships.

    Good urban governance in the field,

    however, can only reach its full potential

    if competencies in the municipalities

    are demarcated and sufficient financial

    resources are made available. All this

    must be organized at national level, with

    a democratic, decentralized government

    apparatus, a fair tax system, dependable

    legal provisions and professional and

    adequately paid public servants. GTZ

    provides advice for this as well.

    A hallmark of cities is the concen-

    tration of power and decision-making

    authority, which stretches even beyond

    city boundaries. The impetus for nation-

    wide reforms often comes from the

    cities. Good urban governance cannot

    be practised in one city alone, so cities

    are catalysts of social change. GTZ

    therefore sees urban governance as acontribution to political and social reform

    and as a path to democracy.

    Governanceby rulesThe problems in cities are asmultifarious as urban life itself.Many politicians and citizensstill need to learn how to applythe yardsticks of good urbangovernance to developing theirmunicipalities. This is not justabout good will; it is also aboutpower and how to use it.

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    Workshop 5Urban governance howdo cities stay manageable?

    Entitled Urban governance, this EFTA

    workshop addressed a theme with many

    different facets. That is why Bernd Hoff-

    mann, GTZ Director for Governance and

    Democracy, was looking for a definition

    at the start. The transparent interaction

    of government, business and industry

    and civil society coupled with integrity,

    efficiency and the responsible exerciseof power is the mix his guest experts

    thought defined good urban governance.

    A key paper, two panels and numerous

    contributions from the plenum closed in

    on each facet through the lens of Devel-

    opment Cooperation.

    Major developments are already tak-

    ing place at the local level, said Marga

    Prhl, Head of the Directorate General

    for Administrative Modernization at the

    Federal German Ministry of the Interior,

    in her opening paper, and posed the

    question of what nation states can do at

    all for urban development. Modernizing

    individual administrations was not

    enough to do justice to the role of the

    cities. All municipal stakeholders needed

    to interact to achieve sustainable urban

    development, she said, and outlined a

    management scenario for good local gov-

    ernance (GLG). A very lively discussion

    then ensued on how to initiate and pro-

    mote GLG.

    Local dialoguesCan urban development be effectively

    linked with national poverty reduction

    strategies? was one of the questions

    chairperson Bernd Hoffmann then posed

    to Sheela Patel. In her answer, the NGO

    representative and member of the Policy

    Advisory Board at Cities Alliance pin-

    pointed the deficits. Consultants from

    the North usually lack the urban focus

    for poverty reduction, she said, based

    on her experience as a member of the

    NGO SPARC for social justice in Mumbai,

    India. Development cooperation could

    help NGOs to enter into dialogue with

    urban authorities and bring people into

    contact with public agencies and politi-

    cians. GTZ staff member Hans ChristianVoigt stressed the importance of knowl-

    edge exchange and described the role

    of urban governance in Africa. The GTZ

    saw its job as liaising between municipal

    office-holders and those without power.

    There was clear agreement in South

    Africa on the need for government to in-

    volve civil society, according to GTZ staff

    member Franois Mengul, referring

    to the South African government pro-

    gramme Urban Renewal. GTZ consult-

    ants helped to develop overarching

    strategies for urban development. Men-

    gul: National strategies must be given

    a local face.

    For Hela Hinrichs, a representative

    of the multinational real estate company

    Jones Lang LaSalle, integrity, efficiency

    and transparency were the criteria for

    measuring sustainable urban manage-

    ment. In her view one of the best places

    to find so-called winning cities was in

    China. Cities in this country had their

    own budgetary powers, sought out pri-

    vate development partners and mobilized

    private capital for urban development,

    she said. Investors should be able to

    co-shape the profile of a city. Hans Dem-

    bowski, Chief Editor of the magazine

    Development and Cooperation (D+C),

    concentrated on access to information

    and agreed with the workshop's con-

    clusion that Development Cooperation

    can contribute to establishing local

    responsibility and a municipal consensus

    by promoting dialogue amongst all urban

    stakeholders at a horizontal and vertical

    level.

    17

    Hans Dembowski,Chief Editor of D+C

    Hela Hinrichs,Jones Lang LaSalle

    Marga Prhl, Deputy Director GeneralGerman Federal Ministry of the Interior

    Francois-Nestor Mengul,GTZ staff member in South

    Africa

    Hans-Christian Voigt,GTZ staff member in Cairo

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    18

    A city is an organism and, like any living

    creature, it cannot survive without a

    metabolism. In many places, though, this

    process is veering off-balance. Unbridled

    growth, air pollution, waste heaps, traffic

    gridlock, slums and lack of access to

    the services of an urban infrastructure

    are all symptoms indicating that the city

    organism is seriously ill in many places.

    The treatment for cities and their resi-

    dents is socially, economically and eco-

    logically balanced and efficiently organ-

    ized urbanization. The ecocity strategy

    supports efforts for ecological and sus-

    tainable urban development.

    To be able to carry the prefix eco,

    a city must improve the conditions of life

    for its residents particularly the poor

    and protect the environment. Waste is

    controlled, and transport and air pollution

    is reduced with an ecological mobility

    scheme. The enterprises in the ecological

    model city must use technologies that

    protect the environment and conservenatural resources. Ecocities also have

    a political component: the residents

    are involved in urban development, the

    surrounding countryside is included and

    land use is planned.

    Small and big solutions

    GTZ advisers in urban ecology want tokeep the metabolism between cities and

    their environments healthy in the long

    term and make the cities worth living in.

    Their integrated approaches in urban

    development work on both a small scale

    and a large scale. Technical Cooperation

    promotes sustainable land use, infra-

    structure planning and management,

    and the organization of environmental

    processes. Along with solid waste dis-

    posal, air-pollution control and transport,

    this also includes the energy and water

    supply, sewage disposal, water pollution

    control, energy-saving building methods

    and municipal trade supervision. GTZ of-

    fers concepts, implementation strategies,

    methods and instruments for the whole

    city and its sectors that also meet ecocity

    standards. The development agency's

    integrated municipal environmental

    management comprises environmental

    information systems, environmental moni-

    toring and ecobudgeting. GTZ advice

    in ecological construction and housing

    takes account of building materials and

    technologies, supply systems and user

    behaviour.

    Another important item in the Techni-

    cal Cooperation portfolio is the interaction

    between municipal and industrial environ-

    mental management. Development ex-

    perts can draw on extensive experience

    in managing industrial estates. They

    support their partners in installing supply

    and disposal systems, using resources

    efficiently, reducing emissions and im-

    proving accident management. The urbanauthorities and administrations benefit

    from GTZ's experience in building func-

    tional infrastructure and learn how to

    provide the related municipal services to

    all sections of the population in keeping

    with their economic, ecological and social

    responsibility.Policy and legal provisions as well as

    the institutional and regulatory framework

    also play an important role in the ecocity

    approach. Based on them, GTZ advisers

    apply their management instruments,

    provide technical advice for appropriate

    technologies and strengthen operational

    competency. Technical Cooperation at-

    taches great importance to enlisting the

    support of the private sector for ecocity

    objectives, animating citizens to con-

    tribute to their city's future and initiating

    cooperation with the private sector, with

    chambers, associations, educational

    establishments and NGOs. Including the

    informal sector is a strategic factor in

    urban development.

    Chinas experienceThe ecocity approach has now taken

    practical shape in two-million-strong

    cities in the East Chinese coastal

    province of Jinagsu: Yangzhou and

    Changzhou. On the way to becoming

    ecocities, both metropolises want to

    reduce environmental pollution, introduce

    better environmental management and

    cater more for ecological concerns in

    their municipal development plans. On

    behalf of BMZ, GTZ advisers support

    these cities' efforts and those of the

    Chinese Ministry of the Environment

    in implementing a suitable programme.

    The project teams work directly in the

    municipal authorities.

    One of their tasks is to find ways to

    modernize building structure in line withenvironmental standards to preserve the

    organic social fabric. With its one million

    inhabitants, Yangzhou has taken a differ-

    ent path from many other booming cities

    in China, where entire historic districts

    UrbanecomodelsUrban centres often pollutethe environment badly andoverexploit resources. Moreand more metropolises aredoing something about this byapplying the ecocity principle.GTZ process advisers arehelping them. The prototypeswill then be transferred toother regions.

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    have been ruthlessly demolished. It is

    national policy to observe old architectural

    styles and standards but shopping cen-

    tres and gigantic tower flats are sprouting

    up everywhere. Yangzhou was, in con-

    trast, one of the first cities in China to

    draw up a plan with scientists for the

    ecocity scheme drafted by the national

    environment authority at the end of the

    nineties. Within three years, the public

    parks had already expanded by around

    two-thirds to cover an area equivalent to

    about 750 football fields. Production is

    becoming cleaner all the time. Enterprisessubscribe to the precepts of corporate

    environmental management.

    The prototypes developed by the

    ecocity projects will then be transferred

    to other regions.

    Workshop 6Ecocities

    the places of the future?Bogot before and after. The presentation

    showed how it had changed: the ecocity.

    In Bogot, public places have been

    replanned for the benefit of residents,

    pedestrians, children and public transport

    passengers, but the ecocity is not just

    a single idea, it embraces many visions

    which share outcomes, as Ulrike Weiland

    from the University of Leipzig pointed out,

    providing a lucid definition of the kind of

    city the EFTA workshop, Ecocities the

    places of the future, envisaged.

    The specialist discussion did not look

    like agreeing on a common definition at

    first, however. What Ashok Khosla from

    India had to say about tomorrow's cities

    sounded more like a plea for the country.

    Citing the billion people living in slums,

    the President of the New Delhi NGO,

    Development Alternatives, advocated

    reversing rural-urban migration. Planning

    for the future meant developing the

    hinterland of the cities. A possible city

    of the future could be a conglomerateof settlements linked by transport routes.

    Khosla called this development trans-

    forming villages into a social city. Two

    major steps in this direction were plan-

    ning in advance and changing ecological

    footprints. So Khosla's idea of the future

    city turned out to have lot in common

    with the way Konrad Otto-Zimmermann

    sees the ecocity. It is not a high-tech

    idea, it is an ecosystem, said the Secre-

    tary General of Local Governments for

    Sustainability in Canada. In conversation

    with chairperson Stephan Paulus, both

    experts then discussed the ecobudget

    approach. Pilot projects in India and in

    the Philippines had already applied this

    method, which turned mayors and man-

    agers into custodians of natural resources

    and kept a permanent eye on the environ-ment. The ecobudget module could be

    tailored to the needs of any developing

    country, Zimmermann said.

    Practical approachesEcocities in this sense did not yet exist in

    the PR China, said Rusong Wang of the

    Chinese Academy of Sciences. The head

    of the Chinese think tank described his

    homeland as a country where the econ-

    omy is the predominating driving force.

    This is why we must make special efforts

    to promote environmental protection,

    he argued. Only the megacities Yangzhou

    and Changzhou wanted to develop as

    ecocities. Traffic planner Karin Rossmark,

    GTZ staff member Detlev Ullrich and

    Raghu Babu of the GTZ-ASEM project

    presented three more ecocity approaches

    promoted by Technical Cooperation in the

    workshop: traffic abatement in the his-

    toric city of Sibiu in Romania, sustainableurban development in Brazil by recycling

    unused areas and the ecocity programme

    in India. A video showing Brazilian chil-

    dren talking about their dream city of the

    future and a photo exhibition about life

    on a refuse dump in Cuernavaca Mexico

    left a vivid impression.

    Promoting and exchanging experi-

    ence and knowledge of the ecocity idea

    and showing the world how it works.

    This is how the Brazilian GTZ staff mem-

    ber Francisco Alarcn summarized the

    tasks of Development Cooperation for

    ecocities. To be successful, this process

    required measures to build the confidence

    of stakeholders, transparency and the

    resolve to put the idea into practice. All

    the experts agreed: It's all about govern-

    ance, about putting people in charge.

    19

    Stephan Paulus,GTZ Deputy Director, Environmentand Infrastructure

    Konrad Otto-Zimmermann,Secretary-General ICLEI

    Rusong Wang, ChineseAcademy of Sciences

    Ashok Khosla,Development Alternatives

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    20

    The connection between town and

    country is very important at a time when

    almost half of the worlds population

    already lives in cities and towns. A good

    connection is useful for both sides, for

    the urban and for the rural population.

    Municipal decision-makers have recog-

    nized that the urban periphery is inter-

    secting more with the centre. Poor house-

    holds in particular earn a livelihood by

    commuting. Policymakers must secure

    their diverse livelihoods. Poor people's

    mobility and willingness to migrate should

    bring them more advantages than disad-

    vantages. To support the municipalities,

    Development Cooperation must not di-

    vorce urban from rural sectoral strategies.

    There are many ways for Technical

    Cooperation to support urban-rural

    interaction. GTZ promotes infrastructure,

    strengthens institutions and service

    providers and secures the transfer of

    resources. Development experts also

    help to cement the social fabric and

    advise on developing and extending

    shared capacity.

    Urban infrastructure depends on rural

    resources, particularly for water supply

    and settlement areas. Conversely, rural

    infrastructure development benefits from

    the electricity generated in cities and

    towns, from the markets and transport

    facilities. Institutions are very important

    for expediting development activities.

    If they are planned separately for urbanand rural areas, there is a danger of them

    hindering each others policies. Services,

    particularly modern ones, often start

    developing in urban regions. Most service

    companies, banks for example, soon

    expand into rural areas to increase

    business.

    The urban and rural populations

    also support each other via markets and

    other exchange relations, ranging from

    seasonal workers to goods and services.

    Improved income opportunities through

    urban growth result in remittances to

    relatives in the country. This raises the

    standard of living of the population in

    rural areas, which serve as social and

    ecological refuges, especially in times of

    economic hardship. The transfer of funds

    is also an indication of where newcomers

    to the city see their social and cultural

    home and of their desire to retain their

    social and family ties in the country.

    Development Cooperation contributes

    to organizing these interrelations so as

    to promote development.

    Shared basic needsThe main good, however, that connects

    urban and rural areas is food. Low-in-

    come households spend a major part of

    their income on food, but how can food

    prices be kept low for city dwellers with-

    out detriment to the livelihoods of rural

    producers? A strategic element that ben-

    efits both sides is improving access to

    the urban food markets. A more effective

    linkage between urban food demand and

    production in the surrounding countryside

    improves the incomes of the farmers and

    affords poor people in urban centres anopportunity to find work processing and

    trading locally produced food.

    One factor disrupting the continuous

    flow between town and country lies in

    the changing preferences of urban con-

    sumers over time. Globalized markets

    underpin this trend. Supermarkets put

    rural producers at a disadvantage. Be-

    cause smallholders cannot meet the strict

    quality standards for food, goods are

    imported, which in turn breaks the tradi-

    tional links between town and country.

    This is why GTZ supports input suppliers,

    traders, processors and exporters in

    complying with the new quality standards

    on national and international markets.

    Stable local supply chains restore the

    broken urban-rural link.

    Development strategies must also

    account for the international deregulation

    of trade and new production locations

    that are redefining urban-rural relations

    in some regions. That is why integrating

    local development strategies in national

    planning is so important. The interventions

    must be tailored to local requirements.

    Both geographical and sectoral devel-

    opment strategies must fit. Synergies

    between urban enterprises and rural

    producers are key for speeding up local

    economic development and poverty

    reduction. These local economic devel-

    opment strategies are gaining increasing

    acceptance amongst decision-makers.

    The successful implementation of

    programmes depends on a careful analy-

    sis of the strengths and weaknesses of

    the locality and the actors. A suitable

    instrument for this is the analytical frame-

    work, Rural and Economic EnterpriseDevelopment (REED) developed by GTZ

    with other development institutions. It is

    the culmination of 20 years of experience

    from a large number of projects in sectoral

    and regional development strategies.

    Transferbetween cityand hinterlandThe trend is towards the city,but this does not mean severingties with the country. Peopledepend on each other on bothsides. The urban-rural connectionis of mutual benefit. GTZ appliestranslocal and multisectoral

    strategies for this.

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    Workshop 7Town and country connections create benefits

    What is urban? What is rural? Those who

    came to the workshop Town and country

    connections create benefits with a

    pretty clear idea about this soon learnt

    that rural is impossible to define exactly.

    The closest we can get, according to

    Peter Conze, GTZ Director General for

    Africa, in his opening speech, is that in

    rural areas settlements and infrastructuretake up a small area and fields, meadows,

    woods, water, mountains and deserts

    predominate. Where do such distinctions

    get us, though, considering the many hy-

    brid forms of urban and rural? The answer

    given by James Garrett, an expert from

    the International Food Policy Research

    Institute, was: A strict separation makes

    no sense, if employment and social ties

    in the whole area shape the lives of the

    people in it.

    In his opinion, a systemic look at the

    livelihoods system told us far more about

    how things developed. In Mozambique

    for example, half of the urban activities

    had a bearing on agriculture. The corol-

    lary was that Sustainable development

    in urban areas depends on the connec-

    tion with rural areas. Relations of ex-

    change therefore need to be promoted.

    Heino von Bassewitz thought that devel-

    oping marketing chains for farm productsalso afforded development opportunities

    for both regions. Now that guaranteed

    prices and purchasing systems through

    government regulation had been rolled

    back, producers would have to be able

    to meet the various needs of urban con-

    sumers, said the manager of Biopark,

    one of the leading suppliers of eco-certi-

    fied food in Germany. A suitable instru-

    ment for promoting regional economic

    ties based on locally produced products

    was the value-added chain approach.

    Balancing interestsGladys Maingi, the representative of the

    Ministry of Agriculture in Kenya, explained

    what must be done so that urban and

    rural areas both benefit. An example of

    diverging interests that she cited was thaturban consumers were looking for quality

    at a reasonable price and producers

    wanted an adequate income. Farmers

    should be able to serve the market under

    reliable conditions. The influence of car-

    tels at the wholesale level was harmful

    to competition. Small producers should

    organize and train themselves to be able

    to cope with the logistics of urban markets

    and meet quality standards. Gerhard Mai

    then pinpointed an impediment for joint

    urban and regional planning. Urban

    planners care mainly about infrastructure

    and neglect economic relations. Rural

    area planners, in contrast, often ignore

    urban markets, was the GTZ policy

    advisers criticism. He then gave an

    account of how things could be done

    differently, as in Ethiopia. The poor need

    to be supported in putting their produc-

    tive resources to use on the market

    instead of letting them go to waste, saidStefan Helming, GTZ Director General

    for Planning and Development. National

    development strategies ought not to treat

    rural areas as a leftover in the equation.

    What was needed besides investments

    in infrastructure, health and educationwere land reforms and better access to

    technologies and research.

    At the end, the workshop agreed

    that GTZ must promote strategies for a

    bal