Urbanisation and Poverty - International Development Committee Contents


Examination of Witnesses (Questions 40 - 45)

TUESDAY 12 MAY 2009

MR PAUL TAYLOR AND MR MICHAEL MUTTER

  Q40  Mr Singh: You said earlier that DFID had been helpful in putting money up front. Has DFID continued to have an involvement with this facility?

  Mr Mutter: Yes, absolutely. They are a member of the overseeing board of the process. We have just recently had one of the board meetings in Nairobi and we will have the next one in Tanzania. DFID want to stay involved, but they gave 50% of the overall funding, $10 million, right up front and have naturally been impatient to see the results coming in. It has taken longer than was originally anticipated. Nevertheless, there will be, I think, good results to show, and an opportunity to continue investing in the process, let us say, in the next two years.

  Mr Singh: Thank you.

  Q41  Chairman: The World Bank has increased its commitment towards urban poverty reduction—I think the figure they are identifying is $10.3 billion—but you have also said that the World Bank, for example, was not being particularly forthcoming in helping deal with social deprivation, housing and innovative forms of funding and addressing that issue. How closely are you able to work with the World Bank to, perhaps, help shape the way they approach that? Do the Poverty Reduction Strategy Papers (PRSPs) give enough focus? You are shaking your head already! Perhaps I can put the question the other way round: what do you think the World Bank should be doing, or you would like them to be doing?

  Mr Taylor: Let us take the PRSPs, first of all, or the Country Assistance Strategies. I think we know of only one Country Assistance Strategy of the World Bank where urban is treated as a significant sector, and that is Vietnam. I am not aware of any other. So there is obviously a big gap there. This is also true for the UN sponsored processes—the UNDAFs[1]—as well. The way we have chosen to address this in UN-Habitat, under our own medium-term strategic and investment plan, is to start a process of development of what we call Habitat Programme Country Documents, which we develop with the governments together with other stakeholders in the country, to actually develop a programme to deal with urban issues, and then to talk to some of the key players, particularly on the UN side but, also, from other players like the World Bank and the EC, which is also quite a powerful player in many countries, to give an evidence base on which to give increasing attention to urban. In terms of relationships with the World Bank in general, these have gone up and down over the years. In round about 2000 we came together on a joint venture basis to establish something called the Cities Alliance, where we would trade off the comparative advantages of UN-Habitat and the World Bank to try and make more of an impact; Habitat particularly to do a lot of the pre-investment work, World Bank to provide the finance facilities. That has worked to some degree and we are continuing to collaborate, but it has now become much more of a multi-donor group than UN-Habitat and the World Bank. We have had recent discussions with the World Bank over its own new development strategy, and I have to say that it was a very good discussion. What we are seeing now is that many policies are in the mix; there is much more uncertainty about urban policies than in the past—what are some of the key levers—and this is reflected in the World Bank's last World Development Report, which dealt with urban. We are collaborating with the World Bank in terms of the further elaboration of its urban strategy, and using that opportunity to look at opportunities for increased collaboration. We have identified five countries, so far, in which we would like increased collaboration (if I remember correctly: Kenya, Philippines, Burkina Faso—I cannot remember the other couple), where we would drive this collaboration in conjunction with the Bank's new urban approach. However, by the same token, in terms of trying to up our game, as UN-Habitat, we are embarking on a peer review process whereby we ask our partners what they think of us, and the World Bank is very keen to get involved in that, to do some critical and, hopefully, constructive comments on what we do and the way we do it. Also, the World Bank, in our latest discussions, has been very eager to become involved in a new initiative of UN-Habitat called "The World Urban Campaign". This is a campaign to promote sustainable urbanisation, which addresses environmental issues, equality issues and financing issues.

  Q42  Chairman: In all those areas the World Bank ought to be a significant partner.

  Mr Taylor: That is right, yes, and to advance the sorts of arguments that we have been putting forward to you today, because the World Bank, like ourselves, feel that urban, in terms of its potential contribution to sustainable economic development, is not really punching its weight.

  Q43  Chairman: My final follow-up question is the sustainable point, on two counts: first of all, these expanding cities, if they are not expanding in any kind of organised way, will be contributing to the problems of unsustainability, over-use of water and emissions. The first point is how you ensure that development of these cities is done in ways that are sustainable rather than adding to the emissions. Secondly, an awful lot of them are in vulnerable coastal locations, which could therefore mean that they are under threat. Are you working with the UN Framework on Climate Change to try and put those things together?

  Mr Taylor: Yes, we are; we are working very closely. In fact, there is going to be a special working group session on urbanisation. There is quite a debate on whether we see cities as culprits or cities as areas of opportunity.

  Q44  Chairman: The point we were making in our sustainable development inquiry is that you partner developing countries to ensure not that they are blamed but that any development they do is, wherever possible, using the most up-to-date sustainable technology rather than saying: "Do whatever you want and we will sort it out later".

  Mr Taylor: Absolutely right. We see already that the various city forms have an incredibly powerful impact on emissions. American cities, for example, emit per capita something like four times the emissions that European cities do. This is energy related and transport related, and it has a lot to do with urban form and density, and so on. So there are lots of things that you can do in that area. There are technology fixes as well. We would tend to say that, as a crude generalisation, developed countries should particularly address mitigation issues—that is reducing greenhouse gas emissions—and developing countries should focus on adaptation—that is, to meet the results of climate change. The results of climate change are already with us. I do not know whether you have received evidence on this so far, but the frequency of natural disasters, for example, is increasing dramatically, and particularly those coastal cities that you mentioned, particularly in Asia, are very much on the receiving end of those natural disasters. I think the particular challenge we face at the moment is to make certain that whatever we do in the way of addressing climate change also addresses poverty issues as well. Things could be done in such a way whereby those who are the most vulnerable could actually be left out if processes go as they have done in many cities in the past, where the poor, frankly, tend to get neglected, and generally speaking it is the poor who are living in locations which are the most vulnerable to the impacts of climate change-related events.

  Q45  Chairman: Thank you very much indeed. I think it has been a fascinating discussion. It is interesting that if one just thinks about the general focus on development, all the images people tend to have in mind are rural yet, in reality, the poverty is predominantly in urban areas. It does suggest we have got a mismatch, even in just thinking about it. Certainly, when you look at a lot of the NGOs and charities, a high proportion of them are doing rural projects where they could be doing urban projects. I think it is a very interesting for us to explore this, and we are looking at some aspects of it in our visit to Nigeria next month as well. Thank you very much indeed; I think it is fascinating to hear what you are engaged in and all the sort of various parameters that have sprayed off in different directions. Thanks a lot for coming and giving us evidence.

  Mr Taylor: Thank you very much for the opportunity, and we very much enjoyed it as well.

  Mr Mutter: Thank you.







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