Strategic Focus of CDS

Most City Development Strategies focus on the need to effect improvements in three, closely related categories: urban governance, local economic growth, and poverty reduction.

 1 Urban Governance

 Urban governance is a broad concept that describes the method through which priorities are set, decisions are taken and people and institutions interact. Good urban governance is characterised by transparent  decision making, sound financial management, public accountability, equitable resource allocation and probity,  and should lead to sustainable improvements in most urban indicators. Good urban governance is enhanced when the subsidiarity is adopted as a guiding principle, decentralising resources and responsibilities to the lowest effective level.

 1.2 Effective decision making and management

 One of the most direct elements of good urban governance, the manner in which decisions are taken is central to the building of consensus, and the demonstration of accountability.   Effective participation in formal decision-making structures by all stakeholders can help build consensus on development priorities,  improve the equity  and efficiency of resource allocation, ensure the transparency and accountability of local authorities and the sustainability of interventions.

However, open and democratic decision making needs to be underwritten by the managerial capacity and systems to ensure implementation.  To ensure meaningful participation,  a city development strategy should build the capacity of both local governments and their civil society partners.

1.2 The budgeting  process

The local government budget, how priorities are selected, how allocations and appropriations are made, how revenue  growth is promoted and the poor are assisted, is one of the tests of good urban governance, as well as financial and political accountability. City governments which  have introduced  participatory budgeting processes are amongst the most successful in building consensus and meeting the needs of the poor.  

1.3 Institutional frameworks

 While some aspects of these frameworks may be determined by the policies and legislation of higher levels of government, city governments need to ensure the most effective institutional arrangements within their scope and jurisdiction. This needs to result in a clear determination of roles, rights  and responsibilities, incorporating not only public institutions, but also the private sector,  civil society and citizens within its scope. Closely linked to the establishment of effective institutional frameworks is the ever-present need for municipal reform, including the building of capacity.

2 Local Economic Growth

The future of cities increasingly relies on their own economic abilities and advantages; a  local economic development strategy is at the core of a city development strategy. Priorities include identifying ways of  improving the city’s overall  economic performance and efficiency, promoting competitiveness of the city in national and international contexts, and promoting broad-based employment generation that includes the informal sector.  Involving micro-enterprises as well as the private sector in  conceiving the development strategy, and securing their increased involvement and investment, and defining the supportive role of government,  is critical to overall success.

2.1 Managing a local economic development strategy

Each city needs to understand and make maximum use of its comparative advantage, and focus on those goods or services that are consistent with this, particularly those that generate broad-based employment.  The articulation of a local economic development strategy, underpinned by sound municipal finance systems, will be instrumental in improving the city’s access to source of private finance for investments in support of the strategy. The successful implementation of a local economic development strategy will promote a healthy and buoyant fiscal revenue base of the city.

3  Poverty Reduction

The reduction of urban poverty should be one of the most tangible outcomes of a successful City Development Strategy. A City Development Strategy will address issues that have a direct and tangible impact on improving the livelihoods and the quality of life of the poor through actions that are targeted, inclusive and enabling.

A CDS includes actions such as the delivery of essential services, equitable pricing policies for essential services, as well as less visible elements such as public access to information, defining and protecting the right to facilities and opportunities – in short, a pro-poor policy environment. It is also critical to remove legal obstacles that have a discriminatory effect and deny women equal access to basic services, land tenure, credit or employment.

3.1 Secure tenure

For millions of urban poor and slum dwellers, formal recognition of their rights and permanence in the city is often the catalyst for social inclusion, as well as the improvement of shelter conditions. The granting of secure tenure is one of the most significant expressions of inclusiveness and political will, and has an immediate and visible impact on investment, particularly in shelter for the urban poor.

3.2 Improved access to services

The provision of essential services, particularly water and sanitation, energy and urban transport  affects the daily lives of the urban poor, who normally pay a hefty premium for services provided by informal sources. A city development strategy will need to examine options for efficient service delivery and equitable pricing policies.

Formulating a city development strategy will focus on the most effective methods of service provision, include delivery mechanisms, cost recovery  and the regulatory framework.