Putting Cities into the Core Business of
the World Bank
Elio CodatoNovember 11, 2005
Contents
I. The Bank’s Urban Strategy
II. Overview of Urban Lending
III. Major Initiatives in Urban Development
IV. The Future: Challenges & Opportunities
The Bank’s Urban Strategy
The Four Pillars:LivabilityCompetitivenessGood governance and managementBankability
Overview of Urban Lending
Urban: key volumes
Lending increased from $0.7 billion in FY04 to $2.7 billion (22 projects) in FY05, contributing to a record 12% of the WBG lending in FY05
Lending commitments 2000-2005: 7.8% Bank total
Average commitment per year: USD $1.46 billion (17 projects)
Portfolio at end 2005: USD $11.33 billion (121 active projects)
Pipeline commitments: USD $7.36 billion over next 3 years (82 projects)
Urban development8% - (17)
Trade & integration5% - (10)
Social prot & risk10% - (20)
Social dev/gender6% - (20)
Rural development10% - (27)
Rule of law2% - (7)
Public sector govern14% - (38)
Human development16% - (46)
Fin & pvt sector dev18% - (37)
Envir & natural res8% - (22)
Economic management
3% - (5)
Annual Average Commitment = US$ 20,162 MillionAnnual Average Number of Projects = 253
Bank LendingShare of Commitments (%) and number of
Projects by Theme, Annual Average FY03-05
Urban Theme LendingTotal Commitment and # of Projects, FY03-08
2,44
5.65
1,93
9.57 2,
591.
32 3,05
5.34
3,03
0.82
1,27
3.35
0.00
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
FY03 FY04 FY05 FY06 FY07 FY08
Bank Analytical Work
39.236.9
34.732.7
17.1
30.2
21.722.3
26.4
29.6
11.0
18.5
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
Energy & mining Transportation Water/sanit/fld prot Urban development
Number of Economic and Sector Work for Infrastructure
FY03 FY04 FY05
Distribution of Active Urban Projects
Access urb serv/hous
43%
Municipal finance4%
Municipal governance
23%
Other urban dev30%
Portfolio Quality IndicatorsFY05
12.0
6.3
66.7
88.9
16.813.5
77.7
82.8
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
100.0
% At Risk % Commit at Risk % Realism % Proactivity
Urban Development Bank
Major Initiatives in Urban Development
Flagship Activities
• Assess Best Practice in Low Income Housing
Major effort invested in preparing a review of the Bank's lending for shelter over the past 30 years
• Share Cross-country Lessons in Financing Urban Infrastructure
Mobilizing Urban Infrastructure Finance in a Responsible Fiscal Framework: Lessons from Brazil, China, India, Poland and South Africa was held in Jaipur in January 2005.
Flagship Activities
• Core Indicators Database for Measuring Key Urban Activities
Urban Growth Management Initiative (UGMI): collecting core indicators data in a sample of 120 cities in 2005-2006; will feed into Habitat’s city database.
Third Urban Research Symposium Co-hosted by IPEA (Brazil) and held in Brasilia, in April 2005. 300 participants; focus on Land Development, Urban Policy and Poverty Reduction (260 papers submitted, 70 selected for presentation). Fourth Research Symposium to drill down on same themes. Supported by grant from SIDA.
Key Regional Activitiesa few examples
• The Urban Poor in Latin America175 million people (36% of the region’s population) live in poverty; more than half of the poor live in cities.
• Africa Region Urban Review• Cities in Transition: Urban Sector Review
in an Era of Decentralization in Indonesia• East Asia Regional Sector Strategy
Cities and towns already contribute at least 70% of the region’s economic growth; key challenges faced by cities and suggestions for policy responses.
New Flagship Activities
• Urban and the Growth Agenda —Assessing and Promoting the Economic Role of Cities
Develop a "toolkit" of instruments/approaches to analyze city economies, including investment climate issues, and to support a few case studies starting in FY06. (supported by DFID grant through Cities Alliance)
• Mainstreaming Urban in Poverty Reduction Strategies
Assess recent PRSPs from urban poverty perspective, identify where tools for urban analysis may need to be adapted, developed, or disseminated to better respond to demand for inclusion in PRSPs, and provide targeted assistance to country teams where good examples can be developed. (supported by DFID grant through Cities Alliance)
The Future: Challenges & Opportunities
The Future:Challenges & Opportunities
• Cities Alliance in Bank’s Global Development Facility (GDF) window 1 (permanent funding): recognition of the importance of working with local governments; Bank needs to leverage its activities through Cities Alliance (Latin America and the Caribbean Region, especially Brazil, offers a good model)
• Limited research and analytical work on urban development issues both inside and outside the Bank: investment in analytical/upstream work seen as key to position urban issues in the Bank and elsewhere
• New leadership at the Bank confirms the importance of infrastructure for development: urban services should be a significant part of this renewed interest
The Future:Challenges & Opportunities
• New corporate emphasis for the Bank: climate change and fight on corruption; local governments can play key role and need to be assisted in addressing their shortcomings in these two areas
• Subnational Development Program (lending without a sovereign guarantee)
• World Development Report (WDR) on the world’s transition to an urban society
Top Related