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Putting Cities into the
Core Business of the
World Bank
Elio Codato
November 11, 2005
Contents
I.
II.
III.
IV.
The Bank’s Urban Strategy
Overview of Urban Lending
Major Initiatives in Urban Development
The Future: Challenges & Opportunities
The Bank’s Urban Strategy
The Four Pillars:
Livability
Competitiveness
Good governance and management
Bankability
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 $7.36 billion over next 3 years (82 projects)
Bank Lending
Share of Commitments (%) and number of
Projects by Theme, Annual Average FY03-05
Urban development
8% - (17)
Trade & integration
5% - (10)
Social prot & risk
10% - (20)
Economic
management
3% - (5)
Envir & natural res
8% - (22)
Fin & pvt sector dev
18% - (37)
Social dev/gender
6% - (20)
Rural development
10% - (27)
Rule of law
2% - (7)
Public sector govern
14% - (38)
Human development
16% - (46)
Annual Average Commitment = US$ 20,162 Million
Annual Average Number of Projects = 253
Urban Theme Lending
Total Commitment and # of Projects, FY03-08
3,000.00
2,500.00
3,030.82
FY06
FY07
1,273.35
3,055.34
1,939.57
1,000.00
2,445.65
1,500.00
2,591.32
2,000.00
500.00
0.00
FY03
FY04
FY05
FY08
Bank Analytical Work
N umb er o f Eco no mic and Sect o r W o r k f o r Inf r ast r uct ur e
FY03
FY04
FY05
39.2
40. 0
36.9
34.7
32.7
35. 0
30.2
29.6
30. 0
26.4
25. 0
21.7
20. 0
22.3
18.5
17.1
15. 0
11.0
10. 0
5. 0
0. 0
Energy & mining
Transportation
Water/sanit/fld prot
Urban development
Distribution of Active Urban
Projects
Other urban dev
30%
Access urb
serv/hous
43%
Municipal
governance
23%
Municipal finance
4%
Portfolio Quality Indicators
FY05
100.0
88.9
90.0
82.8
77.7
80.0
66.7
70.0
60.0
50.0
40.0
30.0
16.8
20.0
13.5
12.0
10.0
6.3
0.0
% At Risk
% Commit at Risk
% Realism
Urban Development
Bank
% Proactivity
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 Activities
a few examples
• The Urban Poor in Latin America
175 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