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Understanding the informal economy in African cities: Recent evidence from Greater Kampala

Angus Morgan Kathage's picture
Informal metal worker in Katwe, Kampala. Photo: Angus Morgan Kathage/World Bank

The informal sector is a large part of employment in African cities. The International Labour Organization estimates that more than 66% of total employment in Sub-Saharan African is in the informal sector. With a pervasive informal sector, city governments have been struggling with how best to respond. On the one hand, a large informal sector often adds to city congestion, through informal vending and transport services, and does not contribute to city revenue. Furthermore, informal enterprises are typically characterized by low productivity, low wages and non-exportable goods and services. On the other hand, the informal sector provides crucial livelihoods to the most vulnerable of the urban poor. 

How do city leaders get things done? Learning from mayors in Japan

Sameh Wahba's picture
Also available in: Español | 日本語 
Picture of the Competitive Cities Technical Deep Dive participants enjoying a walk through the Minato Mirai 21 area (with the Cosmo Clock in the background), which aims to concentrate high-value added activities and a high quality of life in an integrated urban core in downtown Yokohama. Photo Credit: TDLC
The task of mayors and city leaders is no longer limited to providing efficient urban services to their citizens. Job creation is at the forefront of the economic development challenge globally.

Cities need jobs and opportunities for their citizens and the means to generate tax revenues to fund projects that meet their populations’ growing demand for basic services. The WBG flagship report on Competitive Cities outlines how creating jobs in urban areas – urgently but also at scale– is essential.
In November, 2017, we spent a week with approximately 30 city and national government officials and policymakers from several countries, including Argentina, Chile, Croatia, Egypt, Ethiopia, Malaysia, Philippines, Romania, South Africa, Tunisia and Uganda. These leaders represented diverse cities across the world, all with a common objective – how to make their cities and regions more competitive?

Many were dealing with a fragmented institutional landscape, often with overlapping jurisdictions – necessitating clarity of institutional circuits and processes. Some struggled to coordinate economic development strategies with private sector. Lack of adequate sub-national socio-economic data to drive evidence-based policy making compounded issues. City leaders are not looking for a lesson in theory – but evidence of what works and what doesn’t, and practical, implementable examples of how to get things done.
We spent the week as part of a Technical Deep Dive, studying and living the experience of two exceptional Japanese cities - Yokohama and Kobe. These cities have dealt with:
  • population influx,
  • industrialized at a rapid pace,
  • responded to environmental challenges,
  • reached the technological frontier,
  • undergone a housing bubble,
  • and even went through a major disaster (the Kobe earthquake) and recovered from it.

“But what about Singapore?” Lessons from the best public housing program in the world

Abhas Jha's picture
Also available in: Mongolian | Chinese
Photo of Singapore by Lois Goh / World Bank

As we approach the 9th World Urban Forum in Kuala Lumpur next week, one of the essential challenges in implementing the New Urban Agenda that governments are struggling with is the provision at scale of high quality affordable housing, a key part of the Sustainable Development Goal (SDG) 11 of building sustainable cities and communities.
When I worked on affordable housing in Latin America, one consistent piece of advice we would give our clients was that it is not a good idea for governments to build and provide housing themselves. Instead, in the words of the famous (and sadly late) World Bank economist Steve Mayo, we should enable housing markets to work. Our clients would always respond by saying, “But what about Singapore?” And we would say the Singapore case is too sui generis and non-replicable.

[Learn more about the World Bank's participation in the World Urban Forum]
Now, having lived in the beautiful red-dot city state for two and half years, and seeing up close the experience of public housing in Singapore, one is struck by elements of the Singapore housing experience that are striking for its foresight and, yes, its replicability!
Singapore’s governing philosophy has famously been described as “think ahead, think again and think across.” Nowhere is this more apparent than how the founding fathers designed the national housing program, and how it has adapted and evolved over the years, responding to changed circumstances and needs.

It is hard to believe today but in 1947 the British Housing Committee reported that 72% of a total population of 938,000 of Singapore was living within the 80 square kilometers that made up the central city area. When Singapore attained self-government in 1959, only 9% of Singaporeans resided in public housing. Today, 80% of Singaporeans live a government built apartment. There are about one million Housing and Development Board (HDB) apartments, largely clustered in 23 self-contained new towns that extend around the city’s coastal core.
How has Singapore succeeded where so many other countries have failed dismally? At the risk of over-simplification, there seem to be four essential ingredients to this astonishing success story:

World Bank at the World Urban Forum: Three key ways to implement the New Urban Agenda

Ede Ijjasz-Vasquez's picture
Over a year ago, national and city leaders from around the world gathered at the Habitat III conference in Quito to endorse the New Urban Agenda, which sets a new global standard for sustainable urban development and guides global efforts to achieve the Sustainable Development Goals in the era of climate change.
In just three weeks, early February 2018, representatives of the world’s countries and cities will convene again to discuss “Cities 2030, Cities for All: Implementing the New Urban Agenda” at the world’s premier conference on cities – the Ninth Session of the World Urban Forum (WUF9) in Kuala Lumpur, co-hosted by UN-Habitat and the government of Malaysia. 

In the video, World Bank Senior Director Ede Ijjasz-Vasquez (@Ede_WBG) and Director Sameh Wahba (@SamehNWahba) share the World Bank's three priorities at the World Urban Forum.

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World Urban Forum:

As the world’s largest financier on urban development, the World Bank will focus on three issues at the World Urban Forum that are essential for implementing the New Urban Agenda toward the Sustainable Development Goals:

Twelve big moments of building sustainable cities and communities

Andy Shuai Liu's picture

[Put together the puzzle pieces to reveal the picture. Scroll down to #9 for hints.]

If the world in 2017 were a jigsaw puzzle, what memorable pieces would you choose to make up the big picture?
Hurricanes Harvey, Irma, and Maria that pounded coastal United States and the Caribbean; the severe drought that struck Somalia; forest fires that are ravaging through southern California… Hard to miss were the natural disasters that displaced – even killed – individuals and families.
There were also the “manmade” disasters – conflicts that erupted or lasted in many parts of the world continued to force men, women, and children out of their homes and homelands.
Yet, turning to the bright side, the world has come a long way this year in addressing these challenges to boost inclusive and sustainable growth.

Just a couple of weeks ago, for example, global and local leaders gathered at the One Planet Summit in Paris to firm up their commitment – and ramp up action – to maximize climate finance for a low-carbon, disaster-resilient future.
At the World Bank, our teams working on social development, urban development, disaster risk management, and land issues have endeavored with countries and cities worldwide throughout the year to achieve a common goal: building inclusive, resilient, and sustainable cities and communities for all.
How did they do? From our “Sustainable Communities” newsletter, we have captured 12 moments that mark the major accomplishments and lessons learned in 2017—and inspire our continued work to end extreme poverty and boost shared prosperity in 2018:
#1: Africa’s Cities: Opening Doors to the World

Released in February 2017, our report on cities in Africa notes that, to grow economically as they are growing in size, Africa’s cities must open their doors and connect to the world. Improving conditions for people and businesses in African cities is the key to accelerating economic growth, adding jobs, and improving city competitiveness. Two more reports released in 2017 also shined a light on inclusive urban growth in East Asia and the Pacific and in Europe and Central Asia respectively.

How to manage urban expansion in mega-metropolitan areas?

Philip E. Karp's picture

As the world becomes increasingly urbanized, the number of megacities is growing rapidly.

Today there are 37 cities worldwide with populations of greater than 10 million, and 84 with populations greater than five million. More than three quarters of these cities are in developing countries. Together with their surrounding metropolitan areas, these cities produce a sizable portion of the world’s wealth and attract a large share of global talent.

These megacities face a series of common challenges associated with managing urban expansion, density, and livability—in a manner that takes advantage of the benefits of productive agglomerations, while mitigating the disadvantages of such high degrees of congestion and urban density.

Moreover, like other metropolitan areas, megacities face challenges of effectively coordinated planning, infrastructure development, and service delivery across multiple jurisdictions. Indeed, the New Urban Agenda issued at the Habitat III conference in 2016 identified metropolitan planning and management as one of the most critical needs to ensure sustainable urbanization.

Cities of Refuge: Bringing an urban lens to the forced displacement challenge

Axel Baeumler's picture
Also available in: العربية | Español | Français
Cities of Refuge
 Photo credit: Mohamed Azakir / World Bank

The Syrian conflict has reached the grim milestone of becoming the largest displacement crisis since World War II, with over half of the country’s pre-war population having left their homes since 2011—a particularly sobering statistic as we observe International Migrants Day on December 18, 2017 today.

For many of us, the Syrian crisis brings to mind images of refugee families blocked at European borders and sprawling humanitarian camps. Yet the majority of those fleeing the violence have remained in cities inside Syria and in neighboring countries, in the hopes of reaching safety, and accessing better services and jobs.

This shift from camps to cities and towns has critical implications for how to effectively deal with the forced displacement challenge—and it is not confined to Syria, but a reality across many countries affected by conflict in the Middle East and beyond.

What is so unique about the growth (or decline) of cities in Eastern Europe and Central Asia?

Ede Ijjasz-Vasquez's picture
How fast is your city growing? The answer may depend on where you live.

There are the booming megacities such as Tokyo, Mumbai, and Nairobi. Then there are cities that are declining in population, such as Detroit.

In Eastern Europe and Central Asia, where we recently conducted a study on urban growth trends, we found unique demographic patterns affecting the urbanization process in the region.

For example, the region has had fertility rates below replacement levels for more than two decades, and most countries in the region have negative net migration rates.

This signifies that the population of most countries in the region is either growing very slowly or declining, and in some countries urban population has started to decline.

What does this mean for cities?

With a smaller labor force at hand, cities in Eastern Europe and Central Asia are increasingly competing against one another to attract human capital.

Resulting from this competition, we find that most of the cities in the region are shrinking while population growth is increasingly concentrated in a few cities. Per our estimates, 61% of the region’s cities shrank between 2000 and 2010, losing on average 11% of their population.

This scale of city population decline is unprecedented.

Challenges and opportunities of urbanization in India

Divya Gupta's picture

India’s leading urban thinkers and practitioners gathered earlier this month, on November 1, 2017, in New Delhi to discuss “Challenges and Opportunities of Urbanization in India,” at a Roundtable Discussion organized by the World Bank Group. The event was chaired by Ede Ijjasz-Vasquez, Senior Director, Global Practice for Urban, Social, Rural and Resilience, World Bank.

“India's urban trajectory will be globally important,” said Vasquez in opening remarks, underscoring the strong link between the country’s economic trajectory and how it urbanizes, particularly over the next two decades. “It’s progress on poverty elimination, efficiency and growth of the economy, health of urban residents, climate emissions will all have a very important bearing, not just for India, but globally.”

How should we design disability-inclusive cities?

Ede Ijjasz-Vasquez's picture

Urbanization has been one of the most significant driving forces of recent global development, with more than half the world’s population now living in cities. And this proportion will continue to rise. Add to this, the United Nation’s Sustainable Development Goal 11 that calls for “inclusive, safe, resilient and sustainable” cities.

In this edition of the Sustainable Communities Blog, Ede Ijjasz-Vasquez (@Ede_WBG), Senior Director of the World Bank’s Social, Urban, Rural and Resilience Global Practice, sat down with Dr. Shazia Siddiqi, Executive Director of Deaf Abused Women’s Network (DAWN), for a conversation on the disability dimension of inclusion and how we should conceive and design cities that are truly inclusive of all, including persons with disabilities.

DAWN is a non-profit organization servicing the Washington, D.C., area with a mission to promote healthy relationships and end abuse in the Deaf community through providing survivors of abuse the help they need to heal and progress with lives, and through community education on how to foster positive relationships.

This wide-ranging discussion touches on several key issues that are crucial for sustainable and inclusive development and important for breaking down barriers of exclusion. Particularly given the prevalence of persons with disabilities moving to cities, the topics include how to incorporate disability inclusive technology into smart city planning, disaster risk management (DRM), and attitudes that enhance the dignity of persons with disabilities.