With more than half the world’s population now living in cities—for the first time in mankind’s history—it is cities, not countries that will have to deal with population growth. Cities are often inadequately funded by the federal level and will have to develop their own fiscal measures and urban planning strategies.
The Institute for Housing and Urban Development Studies (IHS) in the Netherlands celebrated its 50th anniversary in the fall of 2008 with a conference and series of meetings exploring the implications of this emerging paradigm. The big question posed by conference organizers was:
- How do you develop and run a city as an engine for environment-friendly, inclusive and sustainable growth?
Together with partners the International Architecture Biennale Rotterdam (IABR) and the Architecture Institute Rotterdam (AIR), conference organizers addressed sustainable development from financial, social and environmental perspectives.
Financing Urban Development in Cities
Most city administrators feel hamstrung when it comes to sourcing the financing to proceed with major infrastructure projects like transit networks. Many cities still rely on the regional or federal level of government to cover much of this cost. This reliance leads to a constant tug of war between the two levels of government, with sustainable planning the loser. It is a conflict familiar to most Canadian and American urban centres.
Increasingly, it is becoming apparent that cities will have to generate their own sources of financing in order to meet the challenges they face. This will mean developing fiscal measures to fund not only large scale infrastructure projects, but economic development as well. Competitive Cities in a Global Economy, produced by the Organization for Economic Co-operation and Development, suggests cities diversify their tax revenues with ‘smart taxes’ like congestion charges, and use public-private partnerships to raise money for public projects.
Partnerships and a sound economic tax base from industry and commerce position cities to finance housing, education, social and recreational opportunities, in addition to rapid transit networks.
Urban Development in 21st Century Cities
Cities continue to rely heavily on the automobile for urban transportation. Rapid population growth has the potential to help urban centres rationalize more extensive transit networks at the same time as it places a heavy burden on urban ecology and social networks. Imposing more public transportation corridors in cities that were never designed for these has an impact on the quality of life along transit corridors and in inner city neighbourhoods.
Moving people within cities will be a major concern, but it is not the only challenge. Currently, it is estimated that one in six people live in substandard housing in the world. This figure is projected to jump to one in three by 2030.
In another 20 years, two-thirds of the world’s population will live in cities, further exacerbating the shelter crisis. Sustainable solutions that expand basic shelter and housing options will be required, The current policy framework appears woefully inadequate to the task.
Cities Are More Important than Countries
At one time, countries were more important than cities, but with mega cities beginning to dominate economic growth in their countries, this paradigm may no longer hold true. The changing urban political landscape makes a case for vesting more authority in cities, and for raising awareness of urban planning tools that ensure sustainable development.
In addition to fiscal measures to finance growth, cities will have to develop the ability to manage development and ensure the creation of healthy, attractive urban centres. Many cities lack the requisite set of tools and measures, and will have to acquire these in competition with the regional and federal levels.
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