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Tunisia Urbanization Review Reclaiming the Glory of Carthage

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Tunisia Urbanization Review Reclaiming the Glory of Carthage Tunisia Urbanization Review Reclaiming the Glory of Carthage June 6, 2014 Final Rport Contents Acknowledgments............................................................................................................................ v Executive Summary ......................................................................................................................... 1 Planning: nurture a land price system; relax land use regulations ............................................ 2 First, relax regulations governing land transaction and nurture institutions to value land accurately and systematically ................................................................................................. 2 Second, improve coordination between infrastructure provision and land use planning .... 3 Third, leverage competitive forces to expand basic services everywhere ............................. 4 Connecting: better logistics to improve connectivity ................................................................. 5 First, to reduce costs: increase fuel efficiency and consolidate aging fleets ......................... 5 Second, strengthen logistics and enhance connectivity around cities to improve efficiency 6 Third, connect lagging areas and consider losing some efficiency only to gain equity .......... 6 Financing: step up performance-based transfers; leverage city neighbors ............................... 7 First, build creditworthiness by linking transfers to outputs ................................................. 7 Second, develop clear rules and strong mechanisms for coordinating private infrastructure financing .................................................................................................................................. 8 Third, leverage a municipality’s neighbors to enhance interjurisdictional coordination in service provision ..................................................................................................................... 8 Reclaiming the glory of Carthage ................................................................................................ 9 References ................................................................................................................................ 10 Notes ......................................................................................................................................... 11 Chapter 1. Concentrate growth, disperse public services ............................................................ 13 Support the concentration of people and jobs to enhance growth opportunities .................. 14 Jobs and firms are even more concentrated than population ............................................. 17 Increasing specialization will enhance agglomeration economies ....................................... 20 Higher density can improve the efficiency of Tunisian cities ............................................... 24 Disparities in living standards and access to basic services persist across regions .............. 25 Managing spatial efficiency alongside equity ........................................................................... 33 Using a common policy framework to identify the impediments to well-functioning cities ... 34 Spotlight 1. Despite convergence in access to basic services across cities, gaps in perceptions suggest disparities in quality persist ......................................................................................... 37 References ................................................................................................................................ 37 Notes ......................................................................................................................................... 39 ii Chapter 2. PLANNING: nurturing a land price system; relax land use regulations ...................... 41 Relax regulations governing land transactions and nurture institutions to accurately and systematically value land .......................................................................................................... 42 Make land pricing standardized and transparent................................................................. 42 Resolve property rights and tenure to increase fluidity of the land market ........................ 44 Ease regulatory barriers to facilitate urban expansion, improve affordability, and encourage competition among developers .......................................................................... 47 Improve coordination between infrastructure provision and land use planning .................... 54 Strengthen tools to strategically enable densification ......................................................... 55 Coordinate land use and infrastructure for forward-looking cities ...................................... 55 Leverage competitive forces to expand basic services everywhere ........................................ 59 Change the rules for price regulation and private participation to further expand and improve basic services .......................................................................................................... 60 Spotlight 2. Upgrading informal settlements in Tunisia: a history of success that may put inclusive and sustainable urban growth at risk ........................................................................ 63 References ................................................................................................................................ 64 Notes ......................................................................................................................................... 68 Chapter 3. CONNECTING: better logistics to improve connectivity ............................................. 71 Physical distances are short, but economic distances and costs are high ............................... 72 To reduce costs, increase fuel efficiency and consolidate aging fleets .................................... 75 Strengthen logistics and enhance connectivity around cities to improve efficiency ................ 78 Connect lagging areas and consider losing some efficiency to gain equity ............................. 80 Spotlight 3. Government provisioning of industrial land: uncoordinated efforts result in less than optimal use of resources .................................................................................................. 83 References ................................................................................................................................ 85 Notes ......................................................................................................................................... 87 Chapter 4. FINANCING: step up performance-based transfers and leverage neighbors ............. 89 Build creditworthiness by linking transfers to outputs ............................................................ 91 High dependency on national transfers and repeated debt crises attest to weakness governing municipal finances ............................................................................................... 92 Strengthen regulations governing national transfers, the issuance of debt, and the management of risk .............................................................................................................. 94 Develop clear rules and strong mechanisms for coordinating private infrastructure financing ................................................................................................................................................... 98 Clarify how the private sector can participate in infrastructure financing .......................... 99 iii Leverage a municipality’s neighbors to enhance interjurisdictional coordination in service provision ................................................................................................................................. 100 Improve coordination between national and local governments ...................................... 100 References .............................................................................................................................. 105 Notes ....................................................................................................................................... 107 iv Acknowledgments This report was prepared by a team co-led by Somik V. Lall (Lead Urban Economist, UDRUR) and Nancy Lozano-Gracia (Senior Economist, UDRUR), which included Basab Dasgupta (Economist, UDRUR), Alexandra Le Courtois (Urban Specialist, UDRUR), Dennis Linders (Consultant, World Bank), Renaud Paubelle (Senior Urban Specialist, MNSSU), Lana Salman (Junior Professional Associate, MNSSU), Bernadette Baird-Zars (Consultant, World Bank), and Lamia Zaki (Consultant, World Bank). Important contributions were made by Sarah E. Antos (Business Solution Officer, ITSQS), Anatoly Logunov (Consultant, World Bank), Meera Mahadevan (Consultant, World Bank), Katie L. McWilliams (Consultant, World Bank), Amara Mohamad (Consultant, World Bank), Hend Ben Othman (Consultant, World Bank), Abla Safir (Economist), Nilopa Shah (Consultant, World Bank), Anne Sinet (Consultant, World Bank), and Tara Vishwanath. Additional contributions were provided by Ana Isabel Aguilera (Junior Professional Associate, UDRUR), Ayah Mahgoub (Consultant, World Bank), and Kristin Panier (Consultant, World Bank). This report is part of a broader World Bank supported Urban Sector Technical Assistance Program, being led by Jaafar
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