1990s
Summary
Government as Regulator
Globalization becomes a powerful trend, and government stimulation/regulation of market forces grows at national and local levels. Advocacy groups and civil society, representing a wide array of interests related to slums, housing, and urban development, become stronger and more active.
The collapse of the Soviet Union presents the challenge of restructuring centralized, state-run housing and urban development models to market-based systems, and highlights tools for privatization, land titling, and mortgage lending.
Local government capacity for transparent management of urban services grows but is limited. Cities like Curitiba in Brazil illustrate how growth and environmental management can be compatible. Cities like Ahmedabad in India break ground in the development of local currency municipal bond markets for financing urban infrastructure.
The World Bank and UN Habitat launch Cities Alliance and City Development Strategies to help local governments develop capacity and harness the power of the market. Yet overall donor support for urban programs begins to decline.
Rapid economic growth in cities around the world leads to impressive housing and real estate developments that highlight disparities between the "haves" and those who are left behind.
Influences
- Globalization
- End of Soviet Union and formal creation of Newly Independent States
- Global environmental impacts documented
- Technology boom
Back to top
Policies and Programs
- UN leadership
- Shelter and Social Sector Reform Programs in former Soviet Union
- United States-Asia Environmental Partnership Program
- Development focus on sectoral objectives: economic growth - environment - democratic governance - disaster mitigation
- More private partnerships in urban services
- Urban programs: market oriented - sustainable - decentralized - transparent - accountable
- Official aid flows and support for urban programs declines
- Stakeholder oriented: civil society - private sector - public outreach
- Philanthropy increases
- Private capital flows and market preferences shape policy decisions (e.g., Soros, Turner, Gates)
Back to top
Institutional Roles
- Local governments are increasingly empowered
- Civil society organizations grow stronger, more capable, and increasingly active in representing: women and youth - health issues - environment
- Rule of law gains momentum to protect individuals, markets, and businesses
- Wealth in West gives rise to major philanthropic foundations
Back to top
Methods, Tools, and Practices
- Policy change through advocacy, lobbying, and the use of market forces
- Civil society and democratic governance methods: social contracts; association building
- Capital markets development
- USAID/IDB municipal finance strategies: debt and equity financing (e.g., bonds and private participation)
- Expanded World Bank/UNCHS/ UNDP series: Urban Management Programme
- Nicaragua Municipal Decentralization and Development Project
- Community-managed upgrading (e.g., the Orangi Pilot Project, Pakistan)
- Indonesia Municipal Finance Project and Private Participation in Urban Services
- Philippines Decentralized Shelter and Urban Development
- South Africa Municipal Infrastructure Investment Unit
- India Financial Institutions Reform and Expansion
- Tools of the trade: laptop computer - desktop publishing - laser printer - GIS - email and voicemail - mobile phone - palm devices - megabytes
Back to top
Lessons and Outcomes
- Delays and costs of international financial institutions result in preference for commercial programs
- Local capital markets essential for long-term investment needs
- Private sector and stakeholder participation works
- Unchecked pollution costs are severe
- Nongovernmental organizations act as watchdogs that demand greater government transparency and accountability
- Foreign aid helps integrate former Soviet Union into world order
Back to top
