World Cities Summit Issue | JUNE 2008

Planning and Innovation 06 for City Success Alan Altshuler

Th e Growth of Asian Cities 13 Th e Twin Pillars of 32 Bindu Lohani Estate Rejuvenation Tay Kim Poh

Achieving Sustainable 18 Cities, Culture and Happiness 102 Urban Development Bruno S. Frey Cheong Koon Hean

ADVISORY BOARD Chan Heng Kee – CEO and Dean, Civil Service College Chan Lai Fung – Permanent Secretary, Ministry of Law Chew Hock Yong – Deputy Secretary, Ministry of Community Development, Youth and Sports Loh Khum Yean – Deputy Secretary (Industry), Ministry of Trade and Industry Ow Foong Pheng – Chief Executive Offi cer, JTC Corporation Andrew Tan – Deputy Secretary (International), Ministry of Foreign Affairs

EDITORIAL TEAM June Gwee – Special Edition Editor | Sheila Ng – Assistant Editor Han Neng Hsiu – Editorial Advisor and Director (Special Projects) Alvin Pang | Stephanie Tan | Lai Wei Lin

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The Editor, ETHOS Centre for Governance and Leadership Civil Service College 31 North Buona Vista Road Singapore 275983 Fax: +65 6775 8207 Email: [email protected]

©2008 Centre for Governance and Leadership, Civil Service College

Published by the Civil Service College The Civil Service College (CSC) is a statutory board under the purview of the Public Service Division (Prime Minister’s Offi ce). Established in 1971, the College is an integrated learning institution comprising the Centre for Governance and Leadership, the Institute of Policy Development, the Institute of Public Administration, Public Service Centre of Organisational Excellence, CSC Consultants and CSC International. Its vision is to be the Heart of Learning Excellence and Development for the Singapore Public Service.

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ISSN: 1793-3773

Website: http://www.cscollege.gov.sg/ethos CONTENTS World Cities Summit Issue, June 2008

03 Editorial 62 A City in a Garden Ng Lang 06 Planning and Innovation for City Success 69 Transformative Investments: Alan Altshuler Remaking American Cities for a New Century 13 The Growth of Asian Cities Bruce Katz and Julie Wagner Bindu Lohani 80 The Environment as Capital 18 Achieving Sustainable Dodo J. Thampapillai Urban Development Cheong Koon Hean 88 Human Development and Urbanism 32 The Twin Pillars of Richard Leete Estate Rejuvenation Tay Kim Poh 98 Diversity Through Migration Philippe Legrain 43 Designing Urban Journeys Yam Ah Mee 102 Cities, Culture and Happiness Bruno S. Frey 51 Waste Management and Economic Growth Lee Yuen Hee 3

EDITORIAL

he story of how cities evolve and democracy. Professor Altshuler also and transform continues to compares Singapore’s development with T captivate and inspire. While that of the United States and discusses we marvel at the strength and power of some of the urban innovations in both cities in shaping the world economy and countries. Bruce Katz and Julie Wagner infl uencing societies, we also wonder from the Brookings Institution look at what the next generation of cities how a new class of urban interventions will look like. The key challenge for in the United States, which they term as policymakers and those who govern cities transformative investments, is helping to is how to enable sustainable renewal and change downtowns, neighbourhoods, re-invention so that these cities remain corridors, parks and open spaces, and as unique urban centres, resplendent waterfronts. These investments are in wealth, culture and creativity, while making a signifi cant impact on markets, functioning as attractive and practical people, city landscapes, and spinning off homes for an increasingly diverse and other urban possibilities. well-travelled community. Even as American cities seek to In conjunction with the inaugural re-invent themselves, cities in Asia World Cities Summit 2008: Liveable continue to grow exponentially. and Vibrant Cities, this special issue Statistics show that Asian cities would of Ethos features thoughts and ideas have to accommodate an additional from experts who have been involved 44 million people every year. Some in the development of cities. One of the of the key factors that can effectively determinants of success for any great enhance and transform Asian cities are city is how well it prepares for the next good urban governance, participatory generation. In an interview with Harvard decision-making processes, effective University’s Professor Alan Altshuler, urban management, and environmental he reaffi rms that the age of the city is consciousness. Dr Bindu Lohani of the far from being over. He outlines seven Asian Development Bank cites United factors that make a successful city. More Nations’ estimates that by 2010, 14 of the than just physical infrastructure, a city’s world’s 25 megacities will be in Asia and success and longevity are also dependent most will be in the developing countries on intangibles such as security, equity of Asia. One of the challenges for these

ETHOS | World Cities Summit Issue | JUNE 2008 4 rapidly developing Asian cities is to of the Land Transport Authority. Mr Tay ensure that the city infrastructure keep recounts why and how the strategies of up with the economic and population upgrading and redevelopment are used growth in cities. Similarly, Dr Richard in the rejuvenation of housing estates Leete, former Resident Representative in Singapore, while Mr Yam highlights of the United Nations Development some of the key strategic thrusts Programme for Malaysia, Singapore that shape the city’s land transport and Brunei Darussalam, describes the development and policies, where land urban population growth of cities in transport has a social role in meeting Southeast Asia and urges those in urban the diverse needs of people who live in governance to have planning horizons the city. that extend beyond current needs, in At the same time, environmental anticipation of expected change. sustainability of the city is critical. Lee With a relatively young history Yuen Hee from the National Environment as a nation, Singapore has its own Agency proposes that a city’s economic unique challenges in city-making. For development does not have to mean an insight into its urban development, generating more waste. He describes chief executive offi cers of fi ve Singapore some of the strategies that the Agency public sector agencies share their policy has taken to reduce waste volume, challenges and experience. Cheong recycle, and minimise waste. Besides, Koon Hean of the Urban Redevelopment environmental consciousness has Authority explains the policy decisions substantial soft power—greenery as an and trade-offs in the city’s planning urban strategy can transform an entire and development. The balance between city and help shape a city’s identity. Ng central planning and organic growth, Lang of the National Parks Board refl ects or between redevelopment and on Singapore’s green policy experience conservation, should ultimately serve by reminding us that a city’s greenery Singapore’s development for the next 40 plan, through the conservation of the to 50 years. The city’s physical limitations natural heritage and biodiversity, is require different ways of thinking and one of the ways to develop the soul and planning. Discussions on the city’s key character of a city. The same philosophy infrastructural developments such as on the importance of the environment is housing and land transport policies are echoed by Professor Dodo J. Thampapillai helmed by Tay Kim Poh of the Housing from the Lee Kuan Yew School of Public & Development Board and Yam Ah Mee Policy, who advocates that environmental

ETHOS | World Cities Summit Issue | JUNE 2008 5 economics should play a key role in with us. They have shown that we public governance as well as the training remain at the tip of the iceberg in our and education of policymakers so that understanding and discoveries about they can make substantial contributions city-making. The next chapter in the to the development of urban policies of history of cities will demand just as cities. much grit and imagination, and how A city that is energetic, inspiring and the narrative will unfold is very much vibrant also has an equally gregarious in our hands. and enthusiastic community—one that We hope that you will enjoy this comprises people from a variety of special issue. nationalities and diverse backgrounds. London School of Economics’ Philippe June Gwee Legrain reminds us that the richness Special Edition Editor of cities derives not just from their World Cities Summit Issue locations but also from the interaction of their diverse populations. Cities are appealing for many because of the sense of future and opportunity that they present. He believes that migration into cities is a source of new ideas and innovation which ultimately contributes to the city’s economy. Furthermore, diversity begets cultural variety which adds to a city’s vibrancy. Professor Bruno Frey of the University of Zurich explores the relationship between cities, culture and happiness, and the implications for policy. Research has shown that people who are active consumers of the arts are those who are more satisfi ed with their lives and how they spend their leisure time. We are grateful to all our contributors who have devoted time and effort to share their research, insights and ideas

ETHOS | World Cities Summit Issue | JUNE 2008 6 Planning and Innovation for City Success | Alan Altshuler

Alan Altshuler Planning and Innovation for City Success

In this interview, Professor Alan Altshuler of Harvard University discusses the attributes of a successful city and compares the city success of Singapore with US cities.

What makes a city successful? In comparing cities with reference The fi rst step toward answering this to this defi nition of success, I fi nd question must be to specify what we it most useful to focus on seven mean by success for a city. My own criteria. In no particular order, these starting point is that cities are for their are Prosperity, Personal Security, residents, and consequently that a Sustainability, Equity, Liveability, successful city is one in which the great Liberty and Democracy (see box story majority of residents feel very fortunate for elaboration). to live, and in which they would happily Cities vary in the challenges that think of their descendants continuing they fi nd particularly hard. Singapore to live for generations to come. is notable for the rationality and long-

ETHOS | World Cities Summit Issue | JUNE 2008 Planning and Innovation for City Success | Alan Altshuler 7 term vision that has guided its policy- Capitalism is about private property making since its independence, enabling rights, business competition and it to make remarkable gains in terms of consumer sovereignty. Quite a few prosperity, health, safety, liveability and countries have reconciled two of these sustainability. Cities in the United States three themes at a very high level, but (US), by contrast, tend to be plagued by very few indeed have managed to do so short-term perspectives and policies for all three. driven by narrow interest groups. On the Singapore, for example, has been other hand, US cities are remarkable for highly successful in reconciling the liberty and democracy they afford the tension between planning and their citizens, their overall prosperity— capitalism, primarily by making the although with wide variations—and attraction of international capital the their liveability. highest priority—along with national security—of its planning. The US has Master planning of land use and public been highly successful in reconciling investment has played a large role in capitalism with democracy, mainly Singapore’s development. You have commented elsewhere on tensions that because Americans are so committed to may exist between key attributes of private property rights and business is Planning, Democracy and Capitalism. so infl uential in US politics. Can you elaborate on this? Singapore’s planning success has First, let me emphasise that Singapore’s been signifi cantly attributable, on the planning has been truly exemplary other hand, to its political continuity in terms of its comprehensive, well- and unitary structure (just a single level conceived vision, its integration of of government), which has enabled a the parts, its analytic rationality, highly stable leadership to develop and and its actual impact on the ground. pursue its long-term vision without Nonetheless, intrinsic tensions exist interruption for nearly half a century. In between the imperatives of planning, the US, by contrast, broad governmental democracy and capitalism. Planning, planning is generally impossible because for example, is most centrally about electoral competition is so intense, rational analysis and long-term, leadership turnover is so frequent, and integrated perspectives. Democracy is public authority is distributed among about responsiveness to constituencies a vast array of governments—not just and tends toward a multiplicity of federal, state, and local, but also within discrete, short-term perspectives. each metropolitan area.

ETHOS | World Cities Summit Issue | JUNE 2008 8 Planning and Innovation for City Success | Alan Altshuler

What Makes a City Successful?

Prosperity: All cities with a serious claim sustainability and it has global as well to world-class success seek to provide as local components. It seems to me, their residents with full employment however, that no city can be counted and continuous improvement in their truly successful today if it is despoiling its material circumstances. Since cities are own environment or acting heedlessly very small units in a global economy, with respect to the effects of its this means that they must be highly activities on the global environment. competitive for international capital and that their enterprises must be highly Equity: In order to achieve prosperity, competitive in trade. every city must provide strong incentives for investment, hard work Personal Security: Material wealth does and entrepreneurship, and it must not mean a great deal if one’s family be open to the world economy. So a is highly vulnerable to crime, disease signifi cant degree of inequality is or corrupt, self-serving government inevitable. Extreme inequality is a offi cials. So the cities that people social cancer that devastates the lives with a choice fi nd most attractive are of those at the bottom and eventually notable for their safety, the overall good threatens those higher up the economic health and longevity of their residents, scale as well—due to its effects on the relative incorruptibility of their health, crime and community spirit (or governments, and a general sense that lack thereof), and the justifi cations it their laws are just, humane and binding may provide for repressive government on government offi cials as well as the measures to combat these social ills. public at large. So the successful modern city, in my view, is one with a genuine safety Sustainability: There has been a net for the victims of misfortune and revolution in consciousness over the past other effective programmes to mitigate several decades about the importance extreme inequality while maintaining of leaving our descendants a natural strong work incentives. Getting the world providing at least a comparable balance right is far from easy, but one set of opportunities to those that we can certainly compare cities, and nations, enjoy. There are many dimensions to in terms of how well they do it.

ETHOS | World Cities Summit Issue | JUNE 2008 Planning and Innovation for City Success | Alan Altshuler 9

Liveability: I don’t really like this term this appears to be most likely where because it is so amorphous. It usefully citizens can formulate their views in a conveys, however, that the localities system of free public speech, reasonable in which people most want to live are opportunities for interest group and notable for the excellence of their electoral mobilisation, and genuinely public services (which are typically free and fair elections. The most supplemented by superb private important element, of course, opportunities in such domains as is responsiveness, whatever the education and the arts), the range mechanisms by which it is achieved. and quality of the recreational Can this occur without a high degree opportunities they offer, and the of electoral democracy? Clearly sheer pleasure that people take in the the answer is yes, at least in some environments that they provide. Taken circumstances and for substantial together, these elements of the good periods of time. It is also true that the city seem reasonably captured by the world’s indisputable democracies vary term “liveability”. widely in their specifi c arrangements, and that electoral competition may in Liberty: People yearn to make their some circumstances intensify social own life choices, formulate and express confl ict and/or seriously impede rational their own views, and explore the world. decision making. So I do not take a Really successful cities today are those doctrinaire position about the forms that can attract and retain their fair of democracy that may be suitable share of the most talented, highly for countries with various cultural trained and freest thinking people in traditions and at different stages of the world. So a high degree of personal economic development. Other things liberty is today not just essential for the being reasonably equal, however, as they good life of people in cities, but also often are in comparing the world’s most for achievement of the highest levels of successful cities, I believe that highly economic competitiveness. trained and talented people, those with the widest choices in today’s global Democracy: Finally, the successful economy, will gravitate toward cities modern city is one in which the that breathe both free and democratic. government is highly responsive to – Alan Altshuler citizen views. Viewed internationally,

ETHOS | World Cities Summit Issue | JUNE 2008 10 Planning and Innovation for City Success | Alan Altshuler

It is similarly interesting to compare small trading country without natural the nature of business power in the US resources, mainly capitalist in its versus Singapore. In the US, business economic organisation, and very open has traditionally had enormous direct to the world. It has a tradition of strong, infl uence on the political process—via very thoughtful planning, though, its fi nancing of political campaigns, which goes back hundreds of years, its lobbying prowess, and its great primarily because it is a land reclaimed public communications resources. In from and constantly threatened by the Singapore, by contrast, business seems sea. So its people have always understood to have little direct capacity to infl uence the imperatives of collective action and policy decisions, but since the central have never become imbued with the thrust of government policy is to attract extreme reverence for private property and retain capital, the effect is similar. and individualism that developed in the And indeed we see the same trend wide open spaces of early America. in the US. The great majority of local What do you consider as innovations in businesses that used to infl uence city urban policy? politics have now been absorbed into Some of those that have struck me here national and international corporations. are Singapore’s policies for balancing These corporations have little interest car ownership and usage with road in the details of local politics, but they capacity, for achieving a high level of self- make clear that their investments will suffi ciency in water supply, and for both go where they deem conditions most liquid and solid waste disposal. In each favourable for their pursuit of profi t. of these domains, Singapore is either the So, while they are far less visible than world leader or one of two or three. Each before in day-to-day local politics, they of these policies is not just innovative are in some respects more infl uential but highly conducive to sustainability than ever. and environmental quality. As an American, I am struck by the Are there countries that are terrifi c in all three? fact that many of the ideas and technologies underlying Singapore’s There are a few, I believe, most notably small countries in north-western innovations originated in the west, and Europe, such as the Netherlands, often indeed in the US. But they have, Sweden and Finland. Of these, I am most in general, been far more diffi cult to familiar with the history of planning in implement in the west, and particularly the Netherlands. Like Singapore, it is a in the US. The idea of congestion

ETHOS | World Cities Summit Issue | JUNE 2008 Planning and Innovation for City Success | Alan Altshuler 11 pricing, for example, was originated education, likewise in response to strong by an American, William Vickrey, grassroots pressures. who won the Nobel Prize largely for having done so. For political reasons, A fresh idea or invention though, it has proven impossible to becomes an innovation only implement congestion pricing (except when it is put into practice. on a few stretches of privately managed expressway) anywhere in the US. My key point is that a fresh idea or invention Some other important innovations becomes an innovation only when it is in the US, not purely urban but of great put into practice, and in this regard, urban signifi cance, have involved a mix Singapore is truly a world leader. of public and private sector initiatives. The US is terrifi c at generating ideas Think, for example, of America’s great and private sector innovations, but non-profi t universities, hospitals and generally a bit of a laggard among highly cultural institutions, encouraged by the developed countries in public sector tax system and specifi c public grants but adoption. Where the US has innovated overwhelmingly the products of private in public policy, on the other hand, it initiative. Similarly, America led the way has most typically been as a result of in the development of air transportation, bottom-up pressure. During the 1960s with a mix of private entrepreneurship, and 1970s, the US pioneered in the area of public subsidies and infrastructure citizen participation and environmental investments. More recently, it pioneered protection. Mass motorisation was also the Internet, which started as a public a US (and partly urban) innovation, but sector project but was later developed like many other innovations of great mainly by the private sector. We don’t importance for American cities, it was normally think of these as urban driven mainly by private business and innovations, but they have had, and consumer decisions. The government still have enormous impacts on urban participated, but reactively: by investing development. in roads and urban renewal schemes to accommodate motorisation, and Does the Internet threaten the existence helping to fi nance new private housing of cities? Human interactions have attractive to the new auto-owning moved into a different space where physical boundaries no longer exist. public. If we look back further, the US Everybody has been predicting for led the way in developing mass public decades that cities would decline with

ETHOS | World Cities Summit Issue | JUNE 2008 12 Planning and Innovation for City Success | Alan Altshuler the progress of telecommunications. In Alan Altshuler is the Ruth and Frank Stanton practice, however, cities are growing Professor of Urban Policy and Planning at everywhere. In countries with lots of Harvard University with a joint appointment in space relative to the population size, the John F. Kennedy School of Government. He has taught at Harvard since 1988 and was like the US, Canada and Australia, most recently Dean of the Graduate School modern cities can be more spread out of Design from July 2004 through December than those of yesteryear, but they are no 2007. His research and teaching focus on less cities for that. Urbanisation is about the politics of decision-making about the opportunities for face-to-face interaction built environment and transportation. His rather than specifi c spatial patterns, most recent book, co-authored with David so as travel and communication speeds Luberoff, is entitled Mega-Projects: The increase, land use densities can decrease Changing Politics of Urban Public Investment signifi cantly with little or no loss of (Brookings Institution Press, 2003). agglomeration benefi ts. This is an excerpt of an interview conducted As for communications specifi cally, on 18 February 2008 by June Gwee, Senior the late Ithiel de Sola Pool, who was Researcher at the Centre for Governance my colleague at the Massachusetts and Leadership, Civil Service College Institute of Technology, discovered Singapore, when Professor Altshuler was in the wake of the 1973 oil shock visiting the Lee Kuan Yew School of Public that when travel was curtailed, the Policy, National University of Singapore. volume of telecommunications fell as well. His conclusion: a great deal of telecommunications is about planning for trips and following up on them. It seems that communications and face- to-face interaction are complementary activities far more than alternatives. And this seems to be true of email as well. We phone and email most frequently those whom we also see a lot. With a falloff in face-to-face interaction, electronic communications tend to fall off as well. So there is no indication that the age of the city is passing.

ETHOS | World Cities Summit Issue | JUNE 2008 The Growth of Asian Cities | Bindu N. Lohani 13

Bindu N. Lohani The Growth of Asian Cities

As the main economic engines of growth, Asian cities are increasingly challenged to ensure sustainability while reaping the benefi ts of urbanisation.

n Asia, cities are the backbone meant that more opportunities for of economic growth and central employment were available for millions I to the effective running of the of people, thus reducing the absolute country. Asian cities in particular have levels of poverty in many cities, as well achieved remarkable growth in the last as the developing country as a whole. In couple of decades, by any standard. There Asia, agriculture-based economies like have been several connected drivers India have transformed into industrial that have fuelled this growth. For one, and service-oriented economies within urbanisation brought more and better a span of thirty years, which is half infrastructure that are vital for business the time it took for economies in large and trade. Urbanisation also set the western countries. stage for enormous economic growth The rapid economic growth and for Asian cities. Economic growth urbanisation of Asian cities is expected

ETHOS | World Cities Summit Issue | JUNE 2008 14 The Growth of Asian Cities | Bindu N. Lohani to continue over the next two decades. signifi cant portion of the population As Asian societies and Asian people will be living in thousands of towns and change their lifestyles, culture and cities throughout the region where there social structures, it is important to keep could be between 50,000 to 10 million in mind that cities are, after all, built on people in these towns and cities.2,3 natural ecosystems. The soil beneath the The importance of Asian cities is concrete buildings, the streams fl owing evident. They are (i) the focal points of beneath the asphalt roads and the economic activity and the engines for vegetation alongside buildings are all economic growth; (ii) the centres of essential parts of a city’s infrastructure. excellence for education, healthcare, Environmental sustainability should be innovation, entrepreneurship, business, at the heart of urban management. commerce, industry, culture and social services; (iii) large markets for all THE IMPORTANCE OF ASIAN CITIES types of products, goods and services; To put into perspective, Asia was (iv) well-connected with the wider world predominantly rural in the mid 1960s, through all types of transportation, with a population of about 1.7 billion, telecommunications and information of which only 20% lived in cities. Since technology systems; and (v) the primary then, there has been a massive increase centres for jobs, employment and in the number and proportion of Asians livelihood opportunities. living in cities. It is estimated that by There is strong evidence to suggest 2030, 55% of the regional population that urbanisation enhances productivity will be living in cities.1 Currently, and countries with higher levels of some 40 million people are being urbanisation enjoy higher gross domestic added to Asia’s urban population every product (GDP) per capita than countries year, which is equivalent to 120,000 with lower levels of urbanisation. For people a day. The trend is expected example, the ratio of city GDP per capita to continue. Furthermore, we in Asia compared to national GDP per capita was have witnessed the emergence of very found to be 1.9 for Metropolitan Manila, large urban areas, the megacities, with 2.5 for Calcutta, 3.5 for Bangkok, and 3.7 populations of 10 million or more. It is for Shanghai.4 estimated that by 2010, 14 of the world’s In all countries, cities have a greater 25 megacities will be in Asia and most output per capita than other areas. This will be in the developing countries in explains why income is higher in urban Asia. In addition to the megacities, a areas, the reason for the mass rural-

ETHOS | World Cities Summit Issue | JUNE 2008 The Growth of Asian Cities | Bindu N. Lohani 15 urban migration, which in turn is good housing and sanitation, negative for economic development. Workers impacts on human health, and moving from low productivity rural environmental degradation. These areas to higher productivity urban areas issues have been neglected and under- increase the average productivity of the funded for a long time. For example, country and, consequently, its wealth. Asia’s cities must accommodate an However, the ratio of city GDP per capita additional 44 million people every as compared to national GDP per capita year.5 However, the unmet urban could be even higher if cities could infrastructural needs in Asia are be made to function more effi ciently. estimated to be over $60 billion per year Higher productivity ratios for cities for water supply, sanitation, solid waste would bring substantial benefi ts to the management, slum upgrading, urban national economies and make major roads and mass transit systems.6 inroads against poverty in both urban Urban activities generate close to and rural areas. 80% of all carbon dioxide (CO2) as well as signifi cant amounts of other greenhouse gases which contribute to climate Urbanisation enhances change.7 Direct sources of greenhouse productivity and countries gas emissions include energy generation, with higher levels of vehicles, industry and the burning of urbanisation enjoy higher gross fossil fuels and biomass in households. domestic product per capita Let us take a look at one of these sources: than countries with lower vehicles. Even under the most optimistic levels of urbanisation. current scenarios for managing the

expansion of road traffi c, CO2 emissions from the transport sector will triple in OPPORTUNITIES AND CHALLENGES Asia over the next 25 years.8 The main Rapid urbanisation has brought huge reason for this increase is the increase opportunities and benefi ts to Asians. in the number of vehicles currently However, city infrastructure has not evident and expected in Asian cities over been able to keep up with the tremendous the next two to three decades. Emissions economic and population growth in from vehicles and transport equipment cities. This has brought signifi cant contribute not only to CO2 emissions, resource constraints, diffi culties in but also to local and regional pollution access to basic resources, inadequate problems through the emission of

ETHOS | World Cities Summit Issue | JUNE 2008 16 The Growth of Asian Cities | Bindu N. Lohani carbon monoxide, lead, sulphur oxides report on Urbanisation and Sustainability and nitrogen oxides. Transport is not in Asia highlighted some of the good simply the largest source of greenhouse practice approaches in urban region gas emissions, it is also the fastest development. Research found that there growing source. With the vehicle fl eet were seven criteria for sustainability. in Asia doubling every fi ve to seven These are good governance, improved years, there is an urgent need to come urban management, effective and up with cost-effective CO2 emission effi cient infrastructure and service reduction measures for transport. The provision, fi nancing and cost recovery, current trend is neither manageable nor social and environmental sustainability, sustainable. innovation and change, and leveraging If we look at other environmental international development assistance. issues such as water and wastewater, Here are some thoughts which the solid waste management, slum policymakers and planners may need management and air pollution control, to consider. First, the vision of the we will come to the similar conclusion city government should be to promote that there needs to be a change in safe, liveable, well-managed and thinking, and in some cases, even a environmentally friendly cities that radical shift in the management of are free of poverty. Solutions must be cities. Only then can Asian cities be designed for sustainability and with the sustainable and liveable. Hence the highest level of urban governance. question: how can we turn Asian cities Second, funding needs of the cities into environmentally sustainable cities? for infrastructure should be adequately prov ided for. However, such development SUSTAINABLE DEVELOPMENT should consider an integrated approach The future growth of Asian cities is combining energy, water and wastewater largely dependent on the actions of into a “neighbourhood” system with policymakers and planners of these every possibility for reuse and recycling, cities. The Asian Development Bank’s and sustainability should be the overall (ADB) approach to urban development goal. focuses on improving quality of life, Third, a societal commitment for a reducing urban poverty, maximising low-carbon lifestyle and low-carbon city economic effi ciency of urban areas, that uses fewer inputs (water, energy and and achieving more sustainable forms food) and produces fewer outputs (waste, of urban development.9 ADB’s 2006 heat, air and water pollution) needs

ETHOS | World Cities Summit Issue | JUNE 2008 The Growth of Asian Cities | Bindu N. Lohani 17 to be made. Cities need to minimise on Clean Energy and Environment. Dr the ecological impacts created by its Lohani is an elected member of the National inhabitants, while providing them with Academy of Engineering (NAE) of the United a healthy and comfortable environment, States—the highest professional distinction accorded to an engineer—for his work on attending to their health, comfort, an economic-cum-environmental approach safety and life quality needs. Energy to sustainable development. The views conservation measures, the substitution expressed in this article are those of the of renewable energy sources for fossil author and do not necessarily refl ect the fuels, and new technologies such as views and policies of the ADB, or its Board hydrogen power, fuel cells and biofuels of Governors, or the governments they could also be considered. represent. Fourth, special attention should be given to the development and NOTES servicing of semi-urban areas and more 1. Department of Economic and Social Affairs, Population attention needs to be given to rural/ Division, World Urbanization Prospects: the 2003 revision (New York: United Nations, 2004). urban linkages, land management and 2. Department of Economic and Social Affairs, Population Division, World Population Prospects: The 2002 Revision resources allocation. (New York: United Nations, 2003). Fifth, efforts should be made 3. Human Development Report 2005 (New York: United Nations Development Programme, 2005). For full report, to develop cities beyond work or see http://hdr. undp.org/en/reports/global/hdr2005/ commercial living and enjoyment, but 4. Financing the City: ADB’s Perspective. The Urban Century in Asia. Paper presented by B.N. Lohani at the ADB Annual to make them complete in all means Meeting Seminar on “Financing the City”, May 2005. 5. Urbanization and Sustainability in Asia: Case Studies so that those who live in cities feel that of Good Practice (Philippines: Asian Development Bank, they are self-suffi cient, empowered and 2006). See http://www.adb.org/Documents/Books/ Urbanization-Sustainability/default.asp safe and enjoy a clean environment. 6. Special Evaluation Study on Urban Sector Strategy and Operations (Philippines, Asian Development Bank, 2006). The above actions are “doable”, if For full report, see http://www.adb.org/Documents/SES/ there is a will. REG/sst-reg-2006-03/ses-usso.asp 7. Report on the Dialogue on “Energy: Local Action, Global Impact” at the Third Session of the World Urban Forum, Vancouver, Canada, 22 June 2006, http://www.unhabitat. org/cdrom/dialogues/3b_r.html Bindu N. Lohani is Vice President (Finance and 8. Energy Effi ciency and Climate Change Considerations for Administration) of the Asian Development On-road Transport in Asia (Philippines: Asian Development Bank, 2006). For full report, see http://www.adb.org/ Bank (ADB). Prior to this, Dr Lohani was Documents/Reports/Energy-Effi ciency-Transport/default. asp Director General of the Regional and 9. Asian Development Bank, Urban Sector Strategy, 1999. Sustainable Development Department; Taken from a seminar on “Sustainability and Asian Cities— ADB’s Regional Vision and Singapore’s Role”, a conference concurrently, he was ADB’s Chief Compliance organised by the Institute of Policy Studies in Singapore, 16 Offi cer and Special Advisor to the President March 2007.

ETHOS | World Cities Summit Issue | JUNE 2008 18 Achieving Sustainable Urban Development | Cheong Koon Hean

Cheong Koon Hean Achieving Sustainable Urban Development

Singapore’s urban future hinges on making tough choices that seek to balance economic growth with societal well-being and environmental quality.

he issue of sustainable its comprehensive plan, “PlaNYC”, which development has taken pledged to remake New York into a more T centrestage in recent years. sustainable metropolis.2 In particular, Government agencies, non-governmental the potential impact of global warming organisations and private companies has captured the world’s attention. alike are busy drawing up plans and Today, much of the public debate promises for greater sustainability. In on sustainability centres on reducing 2004, the Mayor of London announced carbon emissions and mitigating the “The London Plan”, which sets out a effects of climate change. There is much framework of policies to accommodate emphasis on using green technology to London’s growth in a sustainable way.1 In help reduce energy usage and keep our 2007, it was New York City’s turn to unveil air and water clean.

ETHOS | World Cities Summit Issue | JUNE 2008 Achieving Sustainable Urban Development | Cheong Koon Hean 19

Indeed, technology is important Singapore has recognised the need and will continue to be a key enabler for such a comprehensive approach. to solve many of the technical Since our Independence,3 we have challenges associated with sustainable taken on the challenges of providing development. However, what may be for a nation in a city-state environment less visible and less appreciated is the with virtually no natural resources. fact that sustainability can be attained Today, ensuring sustainable development only when we take a holistic and in Singapore has taken on greater comprehensive approach. This starts impetus with the formation of an Inter- with making strategic planning choices Ministerial Committee on Sustainable that cascades to the formulation of Development (IMCSD), chaired by innovative policies, and subsequently Ministers of both the Ministry of implementing technologies to tackle National Development (MND) and the urban and environmental problems. Ministry of the Environment and Water At the top end of the continuum, Resources (MEWR). The IMCSD looks sustainable development involves at sustainability from both a national generating economic growth and development and an environmental societal well-being without exhausting perspective. An Inter-Ministerial our limited natural resources. Keeping Committee on Climate Change will also every tree and shrub in Singapore study what Singapore can do to reduce untouched does not constitute carbon emissions and mitigate the sustainable planning. Neither does effects of climate change. building as many petro-chemical plants as we can qualify as sustainable, even THE TRADE-OFFS if this creates jobs and income for Planning for sustainable urban growth our people. Sustainable development within Singapore’s borders is the priority requires a careful balancing of different of the Urban Redevelopment Authority demands and differing priorities. (URA). In fact, it is crucial for the Within this broad planning framework, country’s survival. A city-state without we develop good policies and tap on hinterland, we face the challenge of technology to fi nd the best ways to ensuring we have suffi cient land for deal with issues on protecting the housing, recreation and business. At environment, climate change, clean the same time, we have to set aside energy use, and effective waste and land for defence, power generation, water management. waste disposal and water catchment—all

ETHOS | World Cities Summit Issue | JUNE 2008 20 Achieving Sustainable Urban Development | Cheong Koon Hean within 700 square kilometres of land. These land use plans cater to With one of the largest container ports multiple needs. For example, they try to in the world, our sea-space is limited facilitate economic growth by providing by our international boundaries. As a more industrial land for petro-chemical regional air hub and with fi ve airports and aeronautical industries, hotel and and airbases, building skywards is also tourism projects, as well as an expanding constrained. Deciding on one land use fi nancial sector. These are then balanced over a myriad of other possibilities with social considerations for achieving inevitably involves making trade-offs. a high quality living environment to For example, having more parks and meet rising aspirations. We will provide open spaces means that more of us will more variety of good quality housing, live in high-rise housing. Allocating more greenery and more leisure more land for industries could mean choices. loss of waterfront and heritage areas. The challenge is to fi t it all in. Having more roads and a smoother drive Planners overcome our land constraints to work may result in smoggier air and by developing innovative solutions. We more noise pollution. work towards ensuring that business As URA’s decisions affect many activities use land optimally. For people, we cannot afford to go it alone. example, factories built with ramps We have to make these evaluations and allow trucks to access every fl oor, hence trade-offs together with our partner they function effectively as flatted agencies like the Land Transport Authority, the National Parks Board, the factories. Where possible, facilities such Housing and Development Board, the as polyclinics, libraries and community Public Utilities Board (PUB), the National centres are co-located to maximise land Environment Agency, economic agencies space. Additional structural loading is as well as various other stakeholders. also provided over Mass Rapid Transit The result of many hours of discussions (MRT) stations and underground roads so and consultations are consolidated into that we can build above them. To create our long- and medium-term land use a greater sense of space, our major parks plans. One product of many such debates and coasts are linked up using park and decisions is the Master Plan 2008 connectors.4 Cycling and jogging routes which was unveiled to the public in will increase more than four-fold from May 2008. This Plan guides Singapore’s 100 to 400 kilometres eventually. We development over the next 10 to 15 years also provide incentives for developers in a sustainable manner. to develop more vertical greenery like

ETHOS | World Cities Summit Issue | JUNE 2008 Achieving Sustainable Urban Development | Cheong Koon Hean 21 skyrise gardens5 to mitigate the dense government-led planning is overly rigid; built-up space. In addition, we work centralised planning cannot create closely with PUB to utilise canals and places with suffi cient character, identity inland reservoirs to create beautifully and vibrancy. They see unplanned landscaped “lakes and streams” that growth and a more laissez-faire approach integrate with developments. As a result, to urban planning as the preferred more leisure space is created, built-up alternative. areas are “softened”, and we have been On the other hand, unplanned able to increase real estate values. growth, especially in fast growing and Various agencies also work together densely populated Asian cities, can lead to harness new technologies to to disastrous consequences. Market optimise the use of land. For example, fl uctuations can be very rapid, and the development of the Deep Tunnel private sector short-term responses may Sewerage System by PUB replaces the have ver y long-term repercussions. Once existing six water reclamation plants an offi ce tower or factory is built, it is and about 130 pumping stations. This diffi cult, if not impossible, to “undo” the frees up approximately 1,000 hectares of development. We cannot just walk away land occupied by the existing facilities from mistakes made in our existing city and buffer zones around the plants. and plan a new city. There is simply no Incinerating and recycling our wastes room to do so. Furthermore, the market reduce the need for waste disposal cannot ensure that infrastructure sites. The JTC Corporation6 is piloting a keeps pace with development. We have project to use subterranean rock caverns to make sure that our city works. It for storage. All these initiatives work must accommodate a high population towards making the most of what we density while minimising the usual have. urban problems. A responsible government that is CENTRAL PLANNING OR far-sighted must have the ability and ORGANIC GROWTH? capacity to make decisions that may A common question is “Should the not necessarily pay off in the short term Government leave things more organic but will reap benefi t in the longer term. and unplanned, or should it play an active For example, setting up MRT transport role in shaping the urban landscape?” networks require high upfront costs Supporters of a more market-led that the private sector often shies approach often argue that top-down, away from. Sustainable development

ETHOS | World Cities Summit Issue | JUNE 2008 22 Achieving Sustainable Urban Development | Cheong Koon Hean ultimately means keeping an eye on vehicular emissions. Decentralisation our future. would also offer businesses alternative As a planning agency, URA makes and more affordable offi ce locations. strategic decisions with years ahead in This decision could only come about mind. The Concept Plan is a strategic, through top-down planning (see box long-term land use and transportation story on “Why Jurong?”). Conversely, plan to guide Singapore’s development left on its own, the market would likely for 40 to 50 years. In the 1991 Concept continue to develop and expand the Plan review, it became clear that we CBD—an unsustainable plan for the would face the potential problem long term. of massive traffi c congestion in and Another key consideration in our around the Central Business District planning is to provide crucial facilities (CBD) during peak hours. To tackle this and amenities that will improve the problem before it came to a head, a long- quality of living, but which through term strategy to decentralise commercial normal market forces, would not be activities to commercial centres outside provided by the private sector. Would the central area was adopted. the private sector build parks, park By distributing commercial activities connectors and community facilities throughout the island and bringing jobs instead of alternative, higher value closer to homes, travel into the central uses? Similarly, who will ensure that area would be reduced, and so would there will be a buffer shielding our both peak-hour congestion as well as homes from industrial developments,

FIGURE 1. AN IMPRESSION OF THE MARINA BAY WATERFRONT

Photo: URA

ETHOS | World Cities Summit Issue | JUNE 2008 Achieving Sustainable Urban Development | Cheong Koon Hean 23 or sheltered walkways and universally same time, create a varied and appealing accessible public facilities? The role of urban landscape. Similarly, protecting URA as a central agency ensures that areas rich in fl ora and fauna is critical to the liveability of Singapore will not be ecologically sustainable growth. Today, left to chance. Through comprehensive we have a well-established programme planning, residents can still trek to conserve Singapore’s historically and through the Sungei Buloh Wetlands architecturally signifi cant buildings, or climb Bukit Timah Hill to enjoy the as well as legislation and programmes sunset. to protect our nature areas from Planning also creates business commercial development. opportunities and protects real estate However, conservation of our built values. Through the planners’ vision, heritage and nature areas comes at a new opportunities are created for price—the opportunity cost being the the private sector to invest and to higher value alternative use that such creatively transform dilapidated areas land can be put to. A careful balance has or virgin land into highly valuable to be struck. assets. The Government supports The conservation of buildings found the private sector with timely land in the historical districts of Chinatown, release and infrastructure. Today, Kampong Glam, Little India and Boat the Singapore River, Tanjong Rhu and Quay are good case studies. These Marina Bay (Figure 1) areas are examples districts are all located within the of this successful public-private sector Central Area, and occupy prime land collaboration. Transparent plans and that can potentially be redeveloped orderly development also give certainty into Grade A offi ces or hotels. As and protect the value of homes and our economy expands, so does the business investments. demand for prime land. Nevertheless, a deliberate decision was made to REDEVELOPMENT OR CONSERVATION? safeguard these areas because of their Another dilemma in planning is tremendous architectural, historical deciding between developing or and social signifi cance. At the same retaining buildings and areas. time, we took the pragmatic decision to Safeguarding our built and natural allow conserved buildings to be adapted heritage is undeniably important. for modern-day and higher value uses Physical reminders of our past help tie such as offi ces, shops and hotels, whilst our people to the country and, at the retaining the spirit of the building’s

ETHOS | World Cities Summit Issue | JUNE 2008 24 Achieving Sustainable Urban Development | Cheong Koon Hean

Why Jurong?

FIGURE 2. AN IMPRESSION OF JURONG LAKE DISTRICT IN THE FUTURE

To mitigate congestion within the city Jurong Regional Centre (a commercial area and to bring jobs closer to homes, hub around the Jurong East MRT station URA proposed a strategy to develop on the western part of the island). more commercial centres outside of Some may ask: Why Jurong? To many the central area. We had identifi ed people, the Jurong of today is a sub- several locations that were strategically urban residential area located far away well-spread throughout the island and from the city centre. It is also perceived well-served by MRT stations. Of these as an industrial area. locations, the Tampines Regional Centre Most businesses would likely prefer in the eastern part of the island and to continue to expand within the the Novena Fringe Centre nearer the established offi ce hubs in Tampines and city have already been developed into Novena as they are better established successful offi ce clusters supported and more familiar with these areas. by retail, food and beverage (F&B), and However, the planners took a longer entertainment amenities. As part of the term view, that there is a need to next phase of this development strategy, establish a large commercial centre plans are being rolled out for Paya Lebar to serve the western region. They sub-regional centre (located between recognised that Jurong had a huge Tampines and the city centre) and the untapped potential.

ETHOS | World Cities Summit Issue | JUNE 2008 Achieving Sustainable Urban Development | Cheong Koon Hean 25

Jurong is located within the heart transformed into a vibrant hub with an of a population of 1 million residents. eclectic mix of offi ce, retail, residential, It has ready access to a large talent and hotel, entertainment, F&B and other labour pool. It is central to an established complementary uses. However, Jurong cluster of multinational and global will not be a duplicate of Tampines businesses, ranging from the high- Regional Centre or Novena. Its proximity technology sector around the to the beautiful Jurong Lake presents a International Business Park to huge opportunity to transform Jurong biotechnology, pharmaceutical and into a unique lakeside destination chemical industries in Jurong and Tuas. for both business and recreation. Hence, there are vast opportunities for Lakeside, which is located near to business and commercial services to Jurong, is envisaged to be a key leisure serve these companies. Jurong is also destination for families and visitors, a major transportation hub. It is well- with exciting attractions as well as a connected to the city and the rest of mix of complementary retail, F&B, hotel Singapore by rail and expressways. and other lifestyle developments. This Creating a major commercial centre will make the Jurong area appealing, would also help create extra buzz in the attractive and exciting for residents, western part of Singapore. Jurong will be workers and visitors. original design. Such an approach helps even though there is pressure to do to ensure that old buildings do not so. When it was announced that there become just hollow historical relics, but were plans to redevelop Seletar and its remain economically viable and relevant. surroundings, residents and members of Another way in which we safeguard the the public who enjoyed the lush greenery twin objectives of heritage and value and old colonial architecture of the area preservation is to allow for “old and new” were unhappy. However, developing the development combinations in selected area into an aerospace hub would enable areas. Where appropriate, we have kept Singapore to capitalise on the strong parts of the old buildings fronting the growth in the global aerospace industry street, thus preserving the streetscape and create an estimated 10,000 jobs. and sense of scale, but allow new and In order to best balance both concerns, higher buildings at the rear. inputs from the different stakeholders There are times when halting were sought and their considerations development of an area is not feasible incorporated into the plans. The new

ETHOS | World Cities Summit Issue | JUNE 2008 26 Achieving Sustainable Urban Development | Cheong Koon Hean

Seletar Aerospace Park will now conserve certainly recognise that planners do not a cluster of colonial bungalows, which have all the answers. We need to tap on could be used as training facilities or to the private sector for its market provide amenities, as well as retain areas knowledge and enterprise, and there of greenery and signifi cant biodiversity. must be provision for the natural This way, the development would cater evolution of places and buildings. Have for economic growth while retaining we struck the right balance between Seletar’s distinctive charm. planning and organic development? Some critics think not, lamenting that Singapore has become a too-clean, too- When citizens are given effi cient urban entity that lacks the a chance to voice their needs pizzazz to make it a truly great city. and concerns, the likelihood At the same time, others have lauded that these needs are Singapore’s transformation into one appropriately addressed of the world’s most liveable cities increases. precisely because we offer an irresistible combination of orderliness and fun.8 To strike the right balance, we need Therefore, when it comes down to to engage the public in our planning. deciding whether a building should be When citizens are given a chance conserved or an area safeguarded from to voice their needs and concerns, development, we try to ensure a balanced the likelihood that these needs are evaluation of the social, environmental appropriately addressed increases. and economic factors. We are glad that Having a say in planning also creates our efforts have been recognised. The a greater sense of ownership and Urban Land Institute conferred its responsibility within the community. Global Award for Excellence on URA’s Businesses are in the best position Conservation Programme in 2006. This to give feedback on market needs reaffi rms Singapore’s conservation and changing trends. The collective approach which “… has achieved a experiences will yield important balance between free-market economics insights that might elude a policymaker and cultural conservation”.7 without similar intimate knowledge of the ground. MAKING CHOICES TOGETHER During consultation, it is natural While there are merits to a more that interest groups lobby for their centralised approach to planning, we specific interests. These interest

ETHOS | World Cities Summit Issue | JUNE 2008 Achieving Sustainable Urban Development | Cheong Koon Hean 27 groups could range from nature and “Working with the Private Sector”). conservation champions, business We have also taken a more “hands-off” groups, to real estate developers and approach for selected areas of Singapore architects, as well as residents. The like Holland Village and Joo Chiat. challenge is to weigh these comments These are neighbourhoods that have and ideas before incorporating them grown organically with interesting into our land use plans. clusters of eateries and shops which The Master Plan 2008 is one Singaporeans and visitors love. We example of such a consultation. Part should allow these areas to continue of the Master Plan process involved the to develop their own identity. At formulation of a new Leisure Plan. To the same time, we will plan for the develop the Leisure Plan, focus group necessary infrastructure, such as car discussions were held with leisure parks and utilities, to support these business providers, group representing areas. the interests of the aged, handicapped, nature-lovers, sports enthusiasts, as well We listen to both accolades as local stakeholders. An interesting and criticisms, and continue outcome of putting everyone together to tweak the equation by was that the different interest groups had a chance to hear occasional offering the market more opposing viewpoints from one another. fl exibility where possible. URA then incorporated the focus groups’ inputs into the Leisure Plan, Regulation is practised with a balancing the needs of the various “light touch”, with risk management stakeholders. considerations built in. This can be We listen to both accolades and seen in the relaxation of rules on criticisms, and continue to tweak the home offi ces which has enabled small equation by offering the market more businesses and consultancies to be fl exibility where possible. For example, set up within the home, resulting in URA has introduced more fl exible reduced business costs. We have put “white” zoning, which allows all uses in place mechanisms which allow the except pollutive ones. Developers can private sector to challenge existing decide on different combinations guidelines and to put up new ideas, with of residential, commercial or their views heard by panels comprising recreational uses based on their own private sector representatives. We market outlook (see box story on hold regular dialogues with various

ETHOS | World Cities Summit Issue | JUNE 2008 28 Achieving Sustainable Urban Development | Cheong Koon Hean

Working with the Private Sector

South Beach and Orchard Turn are two FIGURE 3. AN IMPRESSION OF ORCHARD TURN government land sales sites that will feature prominently in Singapore’s urban landscape. The South Beach project which is located along Beach Road, a highly strategic nodal location between Marina Centre and the Civic District, will offer a mix of prime offi ce space, luxury hotels, retail and residences. Orchard Turn, located on bustling Orchard Road, will be a luxury retail and residential development right in the heart of our prime shopping area. Given their strategic locations, it was critical to incorporate urban design Photo: Orchard Turn Developments Pte Ltd guidelines into the tender conditions of these sites to ensure that the resulting For South Beach, a “two-envelope developments would be attractive, and system” was adopted to evaluate the would incorporate features that meet tenders for the site. The “two-envelope the public’s needs. system” is an approach within the The tender conditions for Orchard tender process where price bids and Turn require the successful company concept proposals are submitted under to upgrade the underground link separate envelopes and evaluated between Orchard MRT and Wisma separately. The concept proposals Atria, a private mall, to create a better are fi rst evaluated, and only tenders pedestrian experience. In addition, the that meet the concept criteria will be development has to include a public considered for award. This approach plaza space at the popular Orchard ensures that only the better designs and Road/Scotts Road junction and an concepts are shortlisted, before the land art exhibition space to allow for the is awarded based on the highest bid. showcase of artworks and sculptures. Interested developers of the Beach Road

ETHOS | World Cities Summit Issue | JUNE 2008 Achieving Sustainable Urban Development | Cheong Koon Hean 29

site had to submit a design that provided FIGURE 4. AN IMPRESSION OF SOUTH BEACH for good pedestrian connectivity and public spaces. They also had to ensure that conservation buildings within the site would be sensitively adapted for new uses of offi ce space, luxury hotels, retail and residences. A high bid tender submission in this instance would not have been suffi cient. In both developments, the URA’s role and objective are to engage the private sector towards achieving a high quality urban environment. Photo: City Developments Limited stakeholders and interest groups, isolation but through a consultative and remain open to new ideas and process with a Whole-of-Government suggestions. approach and in collaboration with the private sector. We value public-private LOOKING AHEAD sector partnerships in developing our Singapore’s brand of sustainable city. Collectively, the Government has development is unique. We have already started to pursue innovative and established a good foundation by state-of-the-art green technologies institutionalising a planning process to deal with issues of environmental that takes a long-term view. Our protection, energy usage and urban comprehensive and integrated urban management. All these initiatives planning framework ensures that all will stand us in good stead by giving development needs are considered, and us more room to manoeuvre within the necessary trade-offs are debated and our tight land constraints. We are decided upon. A pragmatic approach is optimistic that this comprehensive taken—one which recognises the need approach can work towards achieving to generate economic growth yet, at a sustainable Singapore where we can the same time, safeguards social and have both economic growth and a high environmental considerations in a quality environment for all who live balanced way. Planning is not done in here.

ETHOS | World Cities Summit Issue | JUNE 2008 30 Achieving Sustainable Urban Development | Cheong Koon Hean Map: URA

ETHOS | World Cities Summit Issue | JUNE 2008 Achieving Sustainable Urban Development | Cheong Koon Hean 31

Cheong Koon Hean is Chief Executive Offi cer of the Urban Redevelopment Authority (URA). She is also concurrently the Deputy Secretary (Special Duties) in the Ministry of National Development, as well as a board member of the JTC Corporation and the National Heritage Board. Mrs Cheong has held several portfolios in the URA and has extensive experience in both strategic and local planning as well as in urban design and conservation. As Chief Executive Offi cer of the URA, her role is to plan and facilitate the physical development of Singapore.

NOTES 1. The London Plan: Spatial Development Strategy for Greater London (Consolidated with Alterations since 2004) (London, UK: Greater London Authority, 2008). http://www.london. gov.uk/thelondonplan/thelondonplan.jsp 2. PLANYC: A Greener, Greater New York (New York, USA: City of New York, 2007). http://www.nyc.gov/html/planyc2030/ html/home/home.shtml 3. Singapore became an independent nation on 9 August 1965. 4. The Park Connector Network is an island-wide network of linear open spaces that link up major parks, nature sites and housing estates in Singapore. They are usually found alongside the many rivers and canals that fl ow through the island and are often used as convenient shortcuts to housing estates, MRT stations and schools. 5. Skyrise gardens refer to gardens on rooftops and sides of high-rise buildings. Skyrise gardens help to optimise land use while improving the environment for quality living. 6. JTC Corporation is one of Singapore’s leading provider and developer of industrial space. 7. Urban Land Institute Global Awards for Excellence: Singapore Conservation Programme.http://www.uli.org/AM/ Template.cfm?Section=Global_Awards_for_Excellence &Template=/CM/HTMLDisplay.cfm&ContentID=71891 8. In 2008, Singapore was listed by the Hub Culture Zeitgeist Cities Ranking as one of the top 20 global vibrant cities and was also voted as the best city to live in for Asian expatriates 10 years running according human resources consultancy ECA International.

ETHOS | World Cities Summit Issue | JUNE 2008 32 The Twin Pillars of Estate Rejuvenation | Tay Kim Poh

Tay Kim Poh The Twin Pillars of Estate Rejuvenation

To renew public housing estates in Singapore, upgrading and redevelopment are key strategies in revitalising and remaking the older estates.

oon after Singapore attained keep up with the changing needs and self-government in 1959, one of aspirations of the people, who were S its key challenges was to ease a beginning to seek bigger and better severe housing shortage. The Housing fl ats, and more comprehensive facilities. This is a critical challenge since living and Development Board (HDB), which in HDB fl ats is a way of life for most was set up a year later to handle this task, Singaporeans. Today, some 900,000 HDB opted to provide small and utilitarian fl ats across the island house 8 out of fl ats, which it was able to build quickly every 10 Singaporeans, where 95% of all and at low cost to house a fast-growing HDB dwellers own the fl ats they live in population. Once the housing shortage (see box story on The Home Ownership eased, the Board’s challenge was to Programme).

ETHOS | World Cities Summit Issue | JUNE 2008 The Twin Pillars of Estate Rejuvenation | Tay Kim Poh 33

The Home Ownership Programme

The Home Ownership Programme is and construction, and responsive public the cornerstone of Singapore’s public housing policies, HDB has achieved near housing. Started in 1964, the programme full home ownership for Singaporeans. aims to give Singaporeans a stake in the This common experience of HDB living country and its future, and promotes thus bonds Singaporeans of different rootedness and a sense of belonging ethnic and socio-economic groups, among Singaporeans, which contributes fostering community cohesion. to the overall economic, social and For its achievement in the political stability of the country. It also development and administration of provides Singaporeans with an asset and the Home Ownership Programme a store of value that can be monetised in that has benefi ted Singaporeans and times of need. improved their quality of living, HDB Today, a framework of housing and received the 2008 United Nations Public mortgage subsidies and the availability Service Award. This Award is given to of Central Provident Fund (CPF)1 public institutions for their creative savings to aid housing payments, make achievements and contributions that HDB fl ats affordable for Singaporean lead to a more effective and responsive families. Together with comprehensive public administration in countries land use planning, cost-effective design worldwide.

For many Singaporeans, the HDB KEEPING UP WITH AFFLUENT CITIZENS fl at is the single biggest asset they AND CHANGING LIFESTYLES own. Hence, HDB has to continuously Public housing in Singapore has been well rejuvenate and renew its public housing managed and maintained. Daily cleaning estates to ensure that they remain and conservancy works carried out vibrant and meet the changing lifestyles by local town councils, together with and growing affl uence of Singaporeans. regular maintenance and repairs to the Where functionality was the focus in the buildings, have ensured good standards building of housing estates in the early of upkeep. Nonetheless, more had to be days, design and quality have become done for the older public housing estates equally important considerations in built between the 1960s and the early HDB’s planning efforts today.

ETHOS | World Cities Summit Issue | JUNE 2008 34 The Twin Pillars of Estate Rejuvenation | Tay Kim Poh

1980s. In terms of design, fi ttings and building blocks and the interior of the facilities, they were lagging behind the fl ats to a standard comparable to those newer estates. For example, residents found in newer estates. It enhances the living in residential blocks built before living environment for HDB residents the 1990s did not enjoy the convenience and helps to sustain the value of their of having lifts serving every fl oor, while fl ats, without uprooting them from their residents living in fl ats completed during familiar environment and community. the peak construction years from 1981 Upgrading has inherent advantages to 1986 faced maintenance issues such as the affected residents are not required as spalling concrete and water seepage. to move out and it is less disruptive Apart from the physical ageing of to the social and economic life of the the fl ats, there was also the greying of community. The relatively minimal the population in these older estates. displacement involved makes upgrading As younger residents formed their a less costly and more affordable own nuclear families and moved out, measure. The results of upgrading are attracted to the latest designs and also more immediate and highly visible, modern facilities of newer towns, they which signifi cantly improves the quality left behind not only their older folks of life and well-being of the residents. but also a vacuum in the social and economic life of the estates. Without Without the economic pull the economic pull and dynamism of and dynamism of a younger a younger population, the vibrancy population, the vibrancy and sustainability of older towns was affected. It became urgent to improve and sustainability of the living environment and inject new older towns was affected. life, as well as fi nd a suitable mechanism to effect the needed changes. However, upgrading cannot fully address the needs of some older public CHOOSING AN OPTIMAL SOLUTION housing estates. For example, due to their An optimal solution is one that is able inherent design, some old housing blocks to meet and balance key needs. There are cannot be retrofi tted with lifts which two practical options for rejuvenating stop on every fl oor. Residents, including older estates. The fi rst is upgrading. the elderly and the handicapped, would Upgrading involves improving the still need to climb some fl ights of stairs physical conditions of the precinct, the to reach their fl ats. Upgrading also does

ETHOS | World Cities Summit Issue | JUNE 2008 The Twin Pillars of Estate Rejuvenation | Tay Kim Poh 35 not help to improve the population Depending on the circumstances, one make-up in the estate. could yield greater benefi ts to the city- The second option is redevelopment. state and the community than the This involves redeveloping an existing other. HDB has therefore relied on both housing precinct by relocating its approaches to regenerate its older public residents and demolishing the existing housing estates. fl ats. Some of the older precincts were built in the earlier years at lower density. MAIN UPGRADING PROGRAMME Preserving them in their existing layout The most comprehensive form of would perpetuate the sub-optimal use upgrading implemented by HDB is the of land. Redevelopment allows the use of Main Upgrading Programme (MUP). land to be intensifi ed—a clear strategic Launched in 1989, the MUP is targeted at benefi t, given Singapore’s land scarcity. blocks more than 20 years old and aims Moreover, the land freed up through the to improve the interior and exterior of clearance of aged blocks enables more the fl ats to standards comparable to fl ats to be built so that the existing those in newer estates. residents can upgrade to new and better Under the MUP, the improvement homes, and younger families and more items comprise a Standard Package of activities can be brought in to revitalise basic works that help to lengthen the the estate. lifespan of the fl at, such as upgrading However, redevelopment may not toilets/bathrooms, repairing spalling be fi nancially viable for all old housing concrete, and improvements to the precincts. In some cases, there are no blocks and precinct, such as lift suitable replacement sites nearby to upgrading and the provision of linkways resettle affected residents. Redevelopment and drop-off porches. For certain blocks, is also an exercise requiring sensitive residents can also opt for additional handling as it involves major displacement space or room of about 6 square metres, and uprooting. Care has to be taken in to be attached to each fl at (Figure 1). planning and implementation to ensure As of March this year, 137 precincts that residents are properly re-housed involving 946 blocks and a total of about and existing community ties are not 136,800 fl ats have been announced severed along with the demolition of for MUP. The acceptance rate of the the fl ats. programme has been high. Of the 137 Both upgrading and redevelopment precincts, 129 have already conducted have their benefi ts and shortcomings. polling exercises, where 127 precincts

ETHOS | World Cities Summit Issue | JUNE 2008 36 The Twin Pillars of Estate Rejuvenation | Tay Kim Poh or 98.4% have opted for the upgrading even those with limited fi nancial means programme. can afford upgrading, fl at owners are Whether a precinct is upgraded allowed to make use of their CPF savings is a collective decision made by the to pay for their share of the cost of residents. At least 75% of fl at owners in upgrading and to stretch their payments a precinct must agree to the programme over a 10-year period. before upgrading can proceed. This As upgrading is done with high support threshold is necessary as residents continuing to live in their the MUP requires signifi cant fi nancial flats, ensuring their comfort and commitment from residents and may convenience is an important factor 1 take up to 2 /2 years to complete, during in the implementation stage. The which residents will have to bear latest construction technologies are with noise, dust and other forms of employed to reduce the negative inconvenience. impact of upgrading works. Pre-cast To ensure affordability, a large share or dry construction techniques are of the cost of upgrading is borne by the used wherever possible to hasten Government. Flat owners are asked to construction works and keep noise and bear a small portion, ranging from 10% dust levels within tolerable ranges. to 25% of the total cost, depending on Additional measures are taken to fl at type. The cost-sharing policy helps to provide alternatives for residents when moderate the demand for improvement the upgrading works are done within works and ensures that only essential their flats; for example, temporary works are undertaken. To ensure that air-conditioned study rooms and rest

FIGURE 1. EXAMPLE OF THE MAIN UPGRADING PROGRAMME

ETHOS | World Cities Summit Issue | JUNE 2008 The Twin Pillars of Estate Rejuvenation | Tay Kim Poh 37 areas, toilets and washing facilities economic performance of the country are provided on site for their use. and the availability of budget surpluses to fund the programme, the Government The Main Upgrading ensured that the programme did not grind to a halt when the country was Programme is an investment facing an economic slowdown. When in housing infrastructure that the economy improved, it stepped up the enhances the environment and programme to enable more residents to provides a better quality of benefi t from upgrading. Up until 2007, it life for residents. has spent about S$2.7 billion on MUP. Secondly, residents must get a real At the point of inception, the sense that upgrading is meeting their Government noted that the programme needs. Feedback on their needs and would substantially increase its preferences is imperative so that the expenditure on public housing over the programme can be tailored accordingly. next 20 years. Nevertheless, it supported A working committee for each MUP the programme, viewing its share of precinct oversees the project to ensure the upgrading cost as a transfer of its that the upgrading package is aligned budget surplus to the fl at owners. It with residents’ expectations before also recognised that the upgrading taking it to the poll. HDB also carries programme would enhance the out regular surveys of completed MUP market value of the fl ats—the single precincts to gauge residents’ satisfaction biggest asset for most citizens. The and identify improvement areas. The programme is also an investment in feedback is used to further fi ne-tune housing infrastructure that enhances the programme in subsequent reviews the environment and provides a better to ensure continued support for the quality of life for residents. programme. The most important element for the Finally, for the programme to success of the upgrading programme be sustainable over the long-term, is the commitment by both the consideration has to be given to the costs Government and residents. Firstly, the involved. The costs must be affordable to G over n ment must be prepa red to prov ide both the residents and the Government. the necessary funding support for the Over the years, HDB constantly reviews programme to be carried out. Although the MUP budget and scope of works to the pace of MUP is dependent on the ensure that only essential items that meet

ETHOS | World Cities Summit Issue | JUNE 2008 38 The Twin Pillars of Estate Rejuvenation | Tay Kim Poh the needs of the residents are included. acquired under the Land Acquisition Non-essential items are omitted. The Act. The older fl ats are demolished tight control over the improvement to make way for new developments items under MUP not only meets the after residents from these older fl ats Government’s goal of fi scal prudence are resettled into replacement flats but also benefi ts the residents who co- (Figure 2). The implementation of SERS pay the upgrading costs. It also stretches is handled with sensitivity because every dollar of the upgrading budget, so of the resettlement of residents. It that as many residents as possible can has been found that this sensitivity benefi t from the programme. during implementation helped to achieve positive ground support for SELECTIVE EN BLOC the programme. HDB surveys showed REDEVELOPMENT SCHEME that most of the affected residents The Selective En bloc Redevelopment appreciated the programme. Support for Scheme (SERS) was introduced in 1995, SERS increased further after residents as part of the Government’s plan to moved into their new fl ats. A majority rejuvenate and intensify development reported being highly satisfi ed with in older estates. Precincts selected for their new homes and surroundings. SERS are those where there are clear economic benefi ts to the city-state. This is assessed by considering the redevelopment potential of the site, taking into account the cost of acquisition and reconstruction, as well as other related costs. Up until March this year, 71 precincts involving some 32,700 sold fl ats in various old estates have been announced for SERS. As SERS serves the national strategic objective while optimising land use, the fl ats identifi ed for redevelopment under SERS are compulsorily

ETHOS | World Cities Summit Issue | JUNE 2008 The Twin Pillars of Estate Rejuvenation | Tay Kim Poh 39

Since residents are uprooted under replacement fl ats at nearby sites to re- SERS, care is taken to minimise the house the affected residents. Through inconvenience caused and also to share joint selection exercises, neighbours get with them the benefi ts of SERS. A generous to choose fl ats where they can continue benefi ts package for affected fl at owners to live close to one another in the new helps secure better buy-in. Owners are precincts. The assured allocation of new offered compensation for their existing replacement fl ats within close proximity fl ats based on the full market value of of their existing fl ats and neighbours their fl ats and an assured replacement preserves the existing community ties. fl at at affordable prices. They only need HDB also builds more new fl ats than to move out of their existing fl ats after required for the re-housing of SERS fl at the construction of replacement fl ats owners in replacement precincts. The has been completed. By trading their surplus new fl ats are then sold to other old fl ats with shorter leases for new ones applicants, with priority given to young with fresh 99-year leases, SERS residents married couples. This helps to bring get to enjoy new fl ats with the latest in younger residents to improve the designs and amenities and at enhanced demographic and socio-economic profi le market values. of the residents in the new Understanding residents’ needs precincts. To encourage married and convincing them of the benefi ts c h i l d r e n t o t a k e c a r e o f t h e i r a g e d of the redevelopment scheme are parents, applicants from outside key to gaining their commitment SERS precincts who apply to stay with or near their parents and confi dence. in replacement precincts are In many countries, relocation is often offered additional priority in the met with apprehension and resistance allocation of fl ats under a “Married Child from affected residents because of the Priority Scheme”. This further helps to uprooting and break-up of existing attract young married couples to move community ties. Cognisant of such back to the old estates to live near their fears, HDB has taken due measures parents, helping to strengthen family in the planning for SERS to ensure ties. Hence, besides the quantifi able that residents can continue living in gains from intensifi ed redevelopment of familiar neighbourhoods with minimal the cleared sites, SERS helps to enhance disruptions to their daily routines. both the physical and social fabric of HDB builds a wide range of new older estates.

ETHOS | World Cities Summit Issue | JUNE 2008 40 The Twin Pillars of Estate Rejuvenation | Tay Kim Poh

At the launch of SERS, the affected housing to best meet their needs. residents are consulted on the types Besides generous benefi ts packages, of fl ats they want, the precinct name a comprehensive communications and the location and type of common plan is critical in rallying residents facilities they wish to have at their to accept SERS. At the launch of every replacement precincts. Feedback from SERS, an exhibition is held to explain to SERS residents shows that they found residents what the scheme entails. HDB the consultation exercises to be useful offi cers also conduct house-to-house and effective in promoting community visits to explain and provide fi nancial bonding and instilling a greater sense of counselling on the various re-housing ownership of the new precinct. options, and to address other concerns. Overall, SERS presents a win-win Some residents, especially the elderly solution for all the parties involved. For and less literate, will need more “hand- the city-state, SERS enables valuable land holding” during the implementation in prime areas to be redeveloped for phase. Such personal interactions allow optimal land use. For the community at residents to give feedback on their large, older estates are given new leases individual concerns and ensure that of life through the modernisation of the residents are able to fully understand physical environment and the injection the basics of SERS. of younger residents. As for the affected residents, they get to move into brand A BLUEPRINT FOR RENEWAL new fl ats with fresh 99-year leases and AND REMAKING in better living environments without Going forward, while upgrading having to move away from their familiar and redevelopment will continue to be surroundings and neighbours. a part of HDB’s estate renewal strategy, The main challenge in implementing they will take on different emphases. SERS lies in gaining residents’ acceptance For example, lift upgrading will be and support. Understanding their needs accelerated to prepare for a rapidly and convincing them of the benefi ts ageing population. The MUP will be of the scheme are key to gaining their replaced by a new programme called commitment and confi dence. Hence, Home Improvement Programme (HIP). before any SERS project is announced, Unlike the MUP which offers only the HDB carries out detailed studies of the Standard Package and space-adding residents’ profi le, and structures the options, the HIP is more affordable and benefi ts packages and replacement fl exible as it allows residents of fl ats that

ETHOS | World Cities Summit Issue | JUNE 2008 The Twin Pillars of Estate Rejuvenation | Tay Kim Poh 41 have not undergone MUP to choose the of individual housing precincts, HDB has improvement works they want in their also drawn up a blueprint to renew and fl ats and co-pay only for those items. remake the HDB heartland. Under the Residents will also be called upon to blueprint, Singapore’s public housing decide on the type of facilities to be estates will be totally transformed provided in their precinct through a over the next 20 to 30 years. Different Neighbourhood Renewal Programme development strategies will be adopted (NRP). With emphasis on resident for each category of estates. New estates engagement, NRP’s consultative approach like Punggol2 will have more attractive will help create a stronger sense of housing forms such as waterfront community ownership over the precinct housing, and the full slate of commercial and facilities. Similar to MUP, the HIP and recreational facilities, to realise and NRP will be collectively decided by the vision of “A Waterfront Town of the the residents and will proceed only if at 21st Century”. For middle-aged estates least 75% of the fl at owners in the block like Yishun,3 where redevelopment and neighbourhood respectively vote for potential is relatively lower as they were the programme. built at higher densities than the older Beyond the upgrading/redevelopment towns, the key thrust is rejuvenation

ETHOS | World Cities Summit Issue | JUNE 2008 42 The Twin Pillars of Estate Rejuvenation | Tay Kim Poh through the enhancement of facilities, NOTES 1. The Central Provident Fund is Singapore’s social security the environment and fl ats. Hence, more savings plan for working Singaporeans. recreational facilities will be added, and 2. Punggol town, where development started in 1998, is one of the youngest HDB towns. Located in the northeastern the housing precincts will be rejuvenated region of Singapore, it is bounded by water bodies on three under the new HIP/NRP. fronts—the north, west and east. 3. Yishun falls under the category of middle-aged towns For old estates like Dawson4 where that were largely developed in the 1980s. 4. Dawson estate is located in the central region and where large tracts of vacant land are now development started as early as the 1950s. available through earlier clearance 5. The concept of “Housing in a Park” sets public housing within a scenic park-like environment, where residents programmes, a new generation of public can enjoy lush greenery close to home. It complements Singapore’s vision of “City in a Garden”. The provision of housing with exciting design concepts Sky Gardens enables residents to enjoy greenery at mid- like “Housing in a Park” (Figure 3) level of residential blocks, and helps to soften the urban built environment. and Sky Gardens5 will be introduced. Singaporeans can therefore look forward to living in even more vibrant and sustainable communities in the coming years.

Tay Kim Poh is Chief Executive Offi cer of the Housing and Development Board (HDB). His role is to lead HDB to develop affordable homes, vibrant towns and cohesive communities. Mr Tay joined HDB in 1986 and took on various management positions, including Deputy Chief Executive Offi cer of HDB’s Estates & Corporate Groups, before he was appointed Chief Executive Offi cer in 2006. Prior to his current role, Mr Tay was also Deputy Secretary in the Ministry of National Development where he was in charge of housing and strategic planning.

ETHOS | World Cities Summit Issue | JUNE 2008 Designing Urban Journeys | Yam Ah Mee 43

Yam Ah Mee Designing Urban Journeys

Social inclusion, a shift in mindset and a holistic strategy are the necessary ingredients in improving Singapore’s land transport system.

n “Transportation for Livable support the sustainable development of Cities”,1 Vukan R. Vuchic described the city. I a liveable cit y as one that is human- So far, Singapore’s land transport oriented and environmentally friendly; policies have established an effi cient economically viable and efficient; and extensive transport network. and socially sound. An effi cient land Increasingly, the Land Transport transport system plays a critical role Authority (LTA) recognises the social role in developing a liveable city. Over the of transport: it has to be accessible and next few years, Singapore will see meet the diverse needs of our people, developments such as the Youth Olympic Games, Formula One Grand Prix, the including the lower-income groups and Integrated Resorts and the Singapore the physically-challenged. Sports Hub. The city’s transport policies Like other cities around the world, have to consider the new demands and developing transport policies in anticipate future needs in order to Singapore has its challenges. Daily

ETHOS | World Cities Summit Issue | JUNE 2008 44 Designing Urban Journeys | Yam Ah Mee travel demand in Singapore is projected to increase by 60%, from the current 8.9 Public transport in Singapore million journeys a day to 14.3 million has to be fast and effi cient to by 2020. This is due to an increase in cater to the masses, and also population and tourist arrivals, as well as remain accessible and affordable increased economic activities generated to the less privileged. by a buoyant economy. As Singapore is a small and densely built-up city-state As the result of a year-long with limited land, it is not sustainable comprehensive review of the 1996 to build more roads indefi nitely to cater White Paper on Land Transport and to the increased travel demand. At the in light of the new challenges ahead, moment, roads take up 12% of our land, LTA released the Land Transport Master compared with 15% for housing. Hence, Plan: A People-Centred Land Transport our transport policies have to make the System2 in January this year. The Master best use of limited resources to meet Plan outlines three strategic thrusts the additional demand, using existing which will shape the land transport infrastructure. development and policies over the next Like most developed cities, the 10 to 15 years. These are: Making Public Singapore population is ageing. At the Transport a Choice Mode; Managing same time, rising affl uence means that Road Usage; and Meeting the Diverse expectations of people have changed. Needs of the People. The objective of the While public transport has to be fast and Master Plan is to build a more people- centred land transport system that effi cient to cater to the masses, it also supports a vibrant and liveable city. has to remain accessible and affordable to the less privileged. In addition, given MAKING PUBLIC TRANSPORT the negative impact of transport on the A CHOICE MODE environment, our transport policies To make public transport a choice mode should also give due emphasis to of travel requires a change in will and protecting the environment. For a city to mindset. Based on load analysis, public be liveable, vibrant and attractive to its transport is the most effi cient people- residents, a well-planned and accessible mover and also an environmentally land transport system is fundamental to sustainable mode of travel. A Mass Rapid the city’s sustained growth in the future. Transit (MRT) train carries an average of

ETHOS | World Cities Summit Issue | JUNE 2008 Designing Urban Journeys | Yam Ah Mee 45

1,100 passengers at any one time during of the population. However, public the peak period, while a single deck bus transportation cannot be solely can carry about 80 passengers—contrast designed from the policy vantage point. this with the average occupancy of about It must be planned and built from 1.5 persons per car. This means that it the commuter’s point of view. This will take more than 50 cars to move means understanding and catering one bus-load of passengers, and more to commuter needs from the moment than 700 cars to move one train-load of they leave their homes to the time they passengers. For a city like Singapore, it reach their destinations. This is the only would put a tremendous strain on the way to ensure that transport is human- road network if everyone were to choose oriented. For instance, to enhance to travel by car. the overall journey experience, more A survey by LTA showed that between covered linkways and overhead bridges 1997 and 2004, the number of car trips will be provided so that commuters increased by 23%, more than double the can enjoy a pleasant walk to the bus 10% increase in car population over the stops, bus interchanges or MRT stations. same period. This increased propensity To complement this, more integrated to drive means that the public transport transport hubs like the ones at Ang Mo mode share has been declining over Kio or Toa Payoh bus interchanges will the years, from 67% in 1997 to 63% in be created (Figure 1). By co-locating bus 2004. We believe that the increase in interchanges with MRT stations and travel demand must be met by public commercial development, transfers transport. Hence, in the Land Transport between bus and train will be more Master Plan, we aim to reverse this decline. The target is to achieve a public transport mode share of 70% for the morning peak hours by 2020, up from 63% today. Our transport system must constantly evolve to cater to the changing demographics and the higher expectations

ETHOS | World Cities Summit Issue | JUNE 2008 46 Designing Urban Journeys | Yam Ah Mee convenient. Commuters can shop or pick up a drink while waiting for their buses or trains, all in air- conditioned comfort. The aim is to transform these transport nodes into fun and exciting places, create more buzz and provide greater comfort and convenience for the commuters. Similarly, providing more real-time public transport travel information would allow commuters to better plan their journeys even before they leave their homes. It is the every origin and destination, transfers entire experience of the journey that are inevitable in such a system. will help make public transport an Today bus routes are planned by the attractive mode of travel. two public transport operators: the In Singapore, we adopted the SMRT Corporation Ltd (SMRT) and the hub-and-spoke model for our public SBS Transit Ltd. Being profi t-driven transport network. This essentially companies, their decisions are largely means relying on buses or Light based on commercial considerations. Rapid Transit (LRT) to serve as feeder There is little integration between services, bringing commuters to MRT the systems run by the SMRT and SBS stations or bus interchanges. The rail network will remain as the backbone Transit as there is no incentive for them of our public transport system given its to do so. This has led to a situation higher speed and capacity. To increase where buses are less frequent than they its coverage and availability, the rail should be, and feeder buses run long network will be doubled by 2020 where and circuitous routes before getting to existing lines will be extended, and the MRT station or bus interchange. This new lines added (Figure 2). This will results in longer waiting and transfer benefi t commuters in areas currently times for commuters. Thus, to enhance not served by the MRT. the hub-and-spoke model, the LTA has While the hub-and-spoke model is decided to take over the planning of bus more effi cient in land-scarce Singapore routes so that a more commuter-centric compared with direct services for approach is taken when bus routes are

ETHOS | World Cities Summit Issue | JUNE 2008 Designing Urban Journeys | Yam Ah Mee 47 planned, with due consideration given Road congestion results in economic to other transport infrastructure such loss as well as externalities such as noise as the rail and road network. With and air pollution. Quality of life will be better integration between bus and rail, affected if daily commute turns into commuters will be able to experience an long, arduous journeys with constant overall improvement in journey time. gridlock amidst noise and air pollution. While public transport has to cater to Congestion needs to be managed in a the masses, we recognise that commuters holistic manner. While improving public have different needs. For example, some transport is key to managing demand prefer taxis which provide personalised on our roads, this alone is not suffi cient. door-to-door service. More can be Where feasible, the road network will done to attract those who have higher be expanded to serve new developments expectations of the public transport but we are mindful that additional system. LTA will be working closely lanes and new roads inevitably attract with the public transport operators to more traffi c which eventually leads to offer more public transport choices to congestion. At the same time, technology this group of commuters. It will also be will be leveraged to maximise existing promoting and facilitating niche services road capacity. The LTA is expanding the such as the premium bus services, which coverage of electronic Junction Eyes3 and provide greater comfort and more direct the Expressway Monitoring and Advisory journeys to those who are willing to pay System (EMAS)4 to more junctions and a higher price. arterial roads. These surveillance MANAGING ROAD USAGE systems allow LTA to monitor traffi c Roads are the arteries of our economy. conditions on the roads and deploy Everyday, nearly 9 million journeys measures to rectify causes of traffi c are made, with about 40% in private congestion expeditiously. Some people vehicles—and this number is growing. have argued that these measures are Our roads have to remain smooth- enough to manage congestion and that fl owing to support economic activities road pricing is unnecessary. However, so that goods and people can reach their after studying the experience of other destinations on time. If demand for cities, it has shown that even with a fi rst- road usage is not managed well, traffi c class public transport system, people congestion will become commonplace, will continue to drive unless there are as seen in other major cities in Asia. measures (for example, implement

ETHOS | World Cities Summit Issue | JUNE 2008 48 Designing Urban Journeys | Yam Ah Mee high parking charges in the city) which through the introduction of additional discourage them from doing so. ERP gantries. In Singapore, we rely on policy tools Yet, even through the enhancement such as the Vehicle Quota System to of ERP, the current vehicle growth rate control the growth in vehicle population, of 3% is not sustainable and we will and the Electronic Road Pricing (ERP)5 lower it to 1.5% from May 2009. system to manage demand on congested roads. We have found that ERP is by far MEETING THE DIVERSE NEEDS the most effective and direct means of OF THE PEOPLE managing congestion because it requires While public transport has to cater to motorists to take into account the cost the masses, the system must also remain of congestion to others as a result of accessible to others with special needs, their driving. The aim of the system is such as the elderly, wheelchair-bound to infl uence the motorist’s decision, so commuters, and parents with infants or that he may consider driving during off- young children. Wheelchair-accessible peak hours or even motivate him to use buses and barrier-free facilities in MRT alternative modes of transport. stations are already available, but more The ERP scheme has remained will be done to improve accessibility. largely the same since it was introduced By 2010, pedestrian walkways, access 10 years ago. As part of the development to MRT stations, taxi and bus shelters, of the Land Transport Master Plan, the and public roads across the island will LTA also conducted a review on the ERP be barrier-free; by 2020, the public bus system to enhance its effectiveness so fl eet will be fully wheelchair-accessible. that it is more responsive to changing Additional lifts will also be installed at traffi c conditions. As a result of the MRT stations so that commuters need review, it was decided that the method not make long detours to look for an of measuring traffi c speeds on ERP- entrance with lift. priced road would be refi ned to assure As we enhance the quality of our that at least 85% of motorists travelling public transport services, we are on these roads will be assured of smooth mindful that public transport should travel; the ERP rate structure needs remain affordable to the masses. The to be updated in order for it to make a Government’s policy is to regulate fares signifi cant difference in infl uencing to ensure public transport remains motorists’ behaviour; and the congestion affordable to the majority. Instead of in the city area have to be managed keeping fares at artifi cially low levels,

ETHOS | World Cities Summit Issue | JUNE 2008 Designing Urban Journeys | Yam Ah Mee 49 they are allowed to go up in small to protect our environment, especially regular steps to keep pace with infl ation. in land-scarce Singapore. Going forward, For the lower-income groups who need we will have to think of new ways to fi nancial assistance, help is available support environmental goals. through various government assistance schemes or community schemes such A PEOPLE-CENTRED SYSTEM as public transport vouchers, which Transport affects people in different is a joint effort by the National Trades ways. To have a people-centred land Union Congress (NTUC),6 public transport transport system, LTA engages the operators and the Government. public to understand their needs and Initiatives to promote public transport expectations. As part of the year- and manage congestion on the roads long Land Transport Review that was are key steps towards sustainability. conducted while developing the Master LTA works closely with the Ministry of Plan, an extensive public consultation exercise was conducted through various the Environment and Water Resources channels over several months. Focus as well as the National Environment group discussions were held where Agency (NEA) to encourage motorists to members of the public and other choose cleaner and more energy-effi cient stakeholders were invited to discuss and vehicles, such as hybrid cars, and adopt share their views. LTA also went online environmental-friendly practices. to seek feedback via the Talk2LTA portal LTA also adopts environmentally and created an online game called the sustainable practices in planning and “Great Transport Challenge 2020”. More developing land transport infrastructure. than 4,500 people gave their views and One such initiative is the use of recycled feedback. municipal, road and building waste Engaging the people has to be a materials currently being disposed of continual effort. LTA actively engages 7 at the Pulau Semakau Landfi ll in road residents and communities who are resurfacing works and road pavement affected by our infrastructure works. construction. This measure, which is These stakeholders are frequently being jointly undertaken with NEA, updated on the progress of the projects SPRING Singapore8 and industry players, and how they might be affected. At will potentially extend the lifespan of the the same time, LTA would seek their Pulau Semakau Landfi ll by another 25 understanding for inconveniences years. This is a signifi cant contribution caused by existing works as well as

ETHOS | World Cities Summit Issue | JUNE 2008 50 Designing Urban Journeys | Yam Ah Mee ask for feedback. LTA recently set up a Yam Ah Mee is Chief Executive of the Land Transport Community Partnership Land Transport Authority (LTA). He led the Division where dedicated teams from Authority in the Land Transport Review which this Division are assigned to each unveiled major initiatives to enhance the land constituency to handle the day-to-day transport system in Singapore over the next road and traffi c management issues 10 to 15 years. Under his leadership, LTA has embarked on many initiatives to improve more effectively, and to establish a public transport, such as the expansion of the closer relationship with the community. rail network, the introduction of wheelchair- To foster stronger rapport, the accessible buses, barrier-free accessibility Community Outreach Programme around train stations and bus interchanges, will periodically share and discuss LTA and the implementation of real-time bus land transport policies and plans with arrival information. Mr Yam was previously grassroots leaders. Deputy Secretary (Sea & Air) in the Ministry In January this year, LTA opened of Transport. the Land Transport Gallery which showcases the development of the Singapore land transport system since NOTES 1. Vuchic, Vucan R., Transportation in Livable Cities (New 1945. This Gallery helps to promote Brunswick, New Jersey: Center for Urban Policy Research, better awareness of the intricacies and 1999). 2. The full report may be viewed online at http://app.lta.gov. challenges of land transport policies sg/ltmp/index.asp and encourage an open exchange of 3. Junction Eyes is a system of surveillance cameras at signalised junctions to spot and rectify causes of traffi c ideas to improve the system. Through the congestion. 4. EMAS performs live-video traffi c surveillance, incident various engagement efforts, we hope that and violation detection, and traffi c advisory functions. there will be greater ownership of the 5. ERP is an electronic system of road pricing based on pay- as-you-use principle. Motorists are charged when they use land transport system. the road during peak hours. By 2020, Singaporeans will have a 6. The NTUC is a national federation of trade unions of workers in the industrial, service and public sectors. more advanced public transport system. 7. The Pulau Semakau Landfi ll is Singapore’s offshore landfi ll Our continual goal is to manage road for waste disposal. 8. SPRING Singapore is the agency for enterprise usage and protect the environment. development. It aims to grow competitive and innovative Land transport plays a critical role as enterprises. Singapore strives to be a city that is human-oriented and environmentally friendly, economically viable and effi cient, and socially sound—a truly liveable city.

ETHOS | World Cities Summit Issue | JUNE 2008 Waste Management and Economic Growth | Lee Yuen Hee 51

Lee Yuen Hee Waste Management and Economic Growth

Cities as the engines of economic growth are also the highest producers of waste and pollution. Find out how economic development does not have to mean more waste generated.

aving developed its industrial kilometres and a population of 4.59 base and achieved high million people. Its population density of H economic growth in the last over 6,500 persons per square kilometre four decades, current day Singapore is is the fourth highest in the world, highly urbanised and industrialised. after Monaco, Macao and Hong Kong. This has had a major impact on the To remain attractive, it is essential for environment—more pollution and waste Singapore to maintain a good quality generated. living environment, where standards The challenge is especially great of public health meet the growing for Singapore as it is an island city- expectations of our local population as state with an area of only 704 square well as those of investors, tourists and

ETHOS | World Cities Summit Issue | JUNE 2008 52 Waste Management and Economic Growth | Lee Yuen Hee a highly mobile international and local In addition, public awareness and talent pool of people. education programmes are conducted Thus, Singapore is highly to educate the public on the protection conscious of the environmental of the environment. This multi-pronged pitfalls of industrialisation and, approach has enabled Singapore to since the early days of industrialisation, achieve and maintain a clean and had developed its own integrated healthy environment, even as the approach to environmental protection economy continues to grow. and management with the aim of ensuring that industrial development THE SINGAPORE GREEN PLAN was not at the expense of the living The need for a fresh approach to environment. The key strategies environmental management was felt are prevention, enforcement and towards the end of the eighties. Over monitoring. the years, there has been a shift of Firstly, great emphasis is placed emphasis from a “top-down” approach on judicious land use planning and towards self-regulation by the industries development and building plan control through various incentive schemes; the for housing, commercial, industrial traditional “command and control” and recreational uses as well as water approach, although proven useful, has catchments. Secondly, investments become increasingly costly to both in waste collection and treatment government and industry. infrastructure are made in tandem with industrial and urban developments By then, basic infrastructure for the to minimise pollution to our land and removal and disposal of solid waste, waters. Thirdly, legislation enacted to sewage and wastewater were in place. control pollution is applied judiciously. Air and water pollution were regulated This is complemented by close through planning controls and emission monitoring of ambient air, inland and standards. However, an increasing coastal waters to assess the adequacy population with higher expectations and and effectiveness of the environmental growing appetites continued to exert pollution control programmes and by pressure on Singapore’s limited capacity strict enforcement to ensure that waste to cope with resource consumption and collection and treatment facilities are waste generation. properly operated and maintained, At the same time, there was and the standards and requirements international consensus on the need to complied with. take action on global environmental

ETHOS | World Cities Summit Issue | JUNE 2008 Waste Management and Economic Growth | Lee Yuen Hee 53 issues, such as global warming, the performance, but environmental protection of the ozone layer, and the sustainability. This updated master plan preservation of wildlife and prevention charts Singapore’s approach to achieve of coastal pollution, in which Singapore environmental sustainability over the was an active participant and advocate. next 10 years and sets out the broad These reasons paved the way for directions and the strategic thrusts that the Ministry of the Environment will help ensure Singapore’s long-term (subsequently renamed the Ministry of environmental sustainability. The SGP the Environment and Water Resources, was reviewed in 2005 and an updated or MEWR) to draw up and publish the edition was published in February Singapore Green Plan (SGP) in May 1992. 2006. The SGP charted the strategic directions that Singapore would be adopting THE SOLID WASTE CHALLENGE to achieve its goal of sustainable With limited land area and high development. It was presented at the population density, it is not surprising June 1992 Rio Earth Summit in Brazil. that the disposal of municipal solid waste To keep the SGP relevant amidst the poses a major challenge to Singapore. changing economic and environmental The strong economic growth achieved landscapes, a review was initiated and in the last 40 years of development the SGP 2012 was launched on 24 August has resulted in a corresponding 2002. explosion in waste generated and, if not The SGP 2012 conveys the message properly managed, would have caused that the new challenge Singapore degradation to Singapore’s environment. now faces is no longer environmental In 1970, about 1,300 tonnes of solid

FIGURE 1. TOTAL WASTE DISPOSED (1970 TO 2007)

ETHOS | World Cities Summit Issue | JUNE 2008 54 Waste Management and Economic Growth | Lee Yuen Hee waste were disposed of daily; by 2000, Strategy 1: Volume Reduction this had increased six-fold to 7,600 Before 1979, all waste was disposed of tonnes per day (Figure 1). The problem in landfi lls carved out of swampy areas was further compounded by Singapore’s on the main island of Singapore. The warm and humid climate, which makes situation was becoming precarious— refuse extremely putrefi able. Refuse has projections showed that space for to be removed and disposed of quickly, landfi lls would run out very quickly effi ciently and safely before it gives rise as waste quantities grew in leaps and to smell nuisance, infectious diseases bounds. Studies indicated that waste- and other public health hazards. to-energy incineration plants were the Furthermore, if the rate of waste way to go in our situation. Being able to disposal were to continue to grow as it reduce waste volume by a drastic 90% in did, scarce land resources would need a short time and in facilities requiring to be set aside to build more expensive relatively small footprints was clearly incinerators and landfi lls. This was an ideal solution to our resource-scarce clearly not sustainable. situation. The fi rst incineration plant was commissioned in 1979. Since then, SUSTAINABLE SOLID three other bigger plants followed in WASTE MANAGEMENT quick succession—1986, 1992 and 2000— The National Environment Agency to meet the ever-increasing waste loads. (NEA) has, in close partnership with key These four modern waste-to- stakeholders in the Private, Public and energy incineration plants are fi tted People (3P) sectors, adopted strategies and with advanced treatment systems to programmes to address this problem. remove acidic gases, dust and other These strategies are: Volume Reduction contaminants from the fl ue gas before through Incineration; Waste Recycling it is released through the chimneys. The and Reduction of Landfi lled Waste; and fl ue gas is closely monitored to comply Waste Minimisation. with Singapore’s clean air emission These measures have increased the standards. Energy is recovered to overall recycling rate from 40% in 2000 generate electricity; scrap iron is also to 54% in 2007, putting the country in a recovered. The resulting incineration good position to achieve its target of 60% ash, which takes up only 10% of its as outlined in the SGP 2012. original volume, is then landfi lled.

ETHOS | World Cities Summit Issue | JUNE 2008 Waste Management and Economic Growth | Lee Yuen Hee 55

Strategy 2: Waste Recycling providing recycling information and Even as incineration offered us an data. It also worked with the largest effective, though expensive, technical owner of industrial land and ready-built solution to our waste situation, factories, JTC Corporation, to set up projections showed that we would have recycling facilities in all its 21 fl atted- still exhausted all our landfi lls on the factory and nine terraced-workshop main island by 1999. We therefore had to industrial estates. look beyond, to enclose a sea space eight The Singapore Land Authority also kilometres south of the main island, helped by allocating some 20 hectares of and at great expense, to build our sole land at Sarimbun for recycling activities. remaining landfi ll off the shores of Sitting on a closed landfi ll, the Sarimbun Pulau Semakau island (see box story). Recycling Park (SRP) is operated by NEA. Moving up the waste hierarchy, the To date, the SRP has been well utilised second strategy was therefore to promote for various recycling activities, such as waste recycling in the industrial/ composting of horticultural waste and commercial sectors and in households, recycling of construction and demolition to reduce the waste disposed of at the waste. incineration plants and landfi ll. This was NEA administers the S$20 million done through a three-pronged approach “Innovation for Environmental of engaging the industry, community Sustainability” (IES) Fund that was and schools. set up by the Government in 2001 to promote the adoption of innovative a) Industry Participation environmental technologies that Less than half of the waste disposed of contribute towards Singapore’s long- in Singapore comes from the industrial term environmental sustainability. and commercial sectors. Such waste In this regard, waste minimisation is includes metals, horticultural and wood one area targeted by the IES Fund. To waste, and paper waste. Recycling in the date, 15 Singapore-based companies industrial and commercial sectors helps had tapped the IES Fund for funding avoid the gate fees charged at the waste of several waste management and disposal facilities and thus contributes recycling test-bedding projects. Some of directly to the bottom line. these projects include the production of The NEA promotes waste recycling pre-cast concrete drainage channels using by conducting talks, running awareness recycled aggregates; the conversion programmes targeted at businesses, and of horticultural waste into packaging

ETHOS | World Cities Summit Issue | JUNE 2008 56 Waste Management and Economic Growth | Lee Yuen Hee

The Semakau Landfi ll

In order to cope with Singapore’s ever- waste, non-hazardous industrial waste increasing amount of waste, a new and inert ash, are transported daily landfi ll was created by constructing from the Tuas Marine Transfer Station a 7-kilometre perimeter rock bund to to the landfi ll. enclose part of the sea between Pulau Semakau Landfi ll is one of the few Semakau and Pulau Sakeng, two of landfi lls in the world to be located so far Singapore’s offshore islands. On-site away from the mainland. Landfi lls are work on the project costing S$610 usually situated close to the mainland, million started in April 1995, and because it makes transportation easier operation began in April 1999, after and less costly. However, due to land Singapore’s only landfi ll at Lorong Halus scarcit y in Singapore, locating a landfi ll was exhausted in March 1999. offshore was the only possible option. Semakau Landfi ll is expected to meet Semakau Landfi ll covers a total the country’s solid waste disposal needs area of 350 hectares and has a landfi ll beyond year 2040. Presently, about 2,000 capacity of 63 million cubic metres. The tonnes of waste, including construction bund is lined with a layer of impermeable

FIGURE 2. SEA ROUTE TO SEMAKAU LANDFILL

Senoko Incineration Plant Lorong Halus Dumping Ground (Closed on 31st Mar 99) Tuas Incineration Tuas South Plant Ulu Pandan Incineration Plant Refuse Incineration Plant Tuas Marine Transfer Station

Sea route Semakau Landfi ll

Photo: NEA

ETHOS | World Cities Summit Issue | JUNE 2008 Waste Management and Economic Growth | Lee Yuen Hee 57 membrane and marine clay to prevent mangrove groves around the sanitary any leachate within the landfi ll area landfi ll facility, the mangroves also act from affecting the surrounding as biological indicators of the water environment. quality around the facility. With all During construction, silt screens the pollution prevention measures put were used to prevent the construction in place, the mangroves have thrived activities from contaminating the and so have the biodiversity of the eco- ecosystem in the vicinity of the landfi ll. system around the facility. The mangroves of Pulau Semakau Singapore chose to protect the which were affected in the construction environment as well as create a sanitary process were replaced and replanted landfi ll out of two islands without on two plots of mangroves of about 14 impacting the surrounding environment hectares located outside the periphery and ecology. The rich biodiversity of the sanitary landfi ll. Over 400,000 around the sanitary landfi ll shows mangrove saplings were replanted in that development and environmental the process. protection can co-exist and need not be Besides helping to preserve the rich mutually exclusive. materials; and the processing of ladle such as aggregates for reuse. At the furnace slag, a by-product of the steel same time, industry best practices and making process, into road construction “less-waste” design and construction materials. methods have also minimised the The waste recycling industry in generation of such waste sent to the Singapore now includes companies with Semakau Landfi ll. the capability to recycle and process In 2007, some 91% of ferrous metal electronic waste, food waste, wood waste, 98% of construction and demolition waste, horticultural waste, used copper waste, 41% of horticultural waste and slag, construction and demolition waste, some 51% of paper waste were recycled ferrous waste and plastic waste. (Figure 3). The major types of non-incinerable waste sent directly to the landfi ll are b) Reaching Out to the Community construction waste, stabilised industrial Changing mindsets and infl uencing sludge, residues and ashes, much of behaviour is important for sustainability, which has been diverted, over the years, but this takes time. To do so, NEA has for reprocessing into useful materials been engaging residents, grassroots

ETHOS | World Cities Summit Issue | JUNE 2008 58 Waste Management and Economic Growth | Lee Yuen Hee organisations, non-governmental Under the NRP, public waste collectors organisations (NGOs) and schools to are required contractually to provide impress upon the community the need recycling bags or bins to every to practise the 3Rs—reduce, reuse, household for storing their recyclables recycle—for resource conservation and to collect the recyclables door-to- and to achieve a sustainable waste door and fortnightly on scheduled management system. One such days. awareness campaign is the annual In addition 1,600 sets of centralised Recycling Day, which aims to reinforce recycling depositories have been placed the need to recycle waste by involving in the common areas of all public schools, community, NGOs and Housing and Development Board (HDB)1 recycling companies. housing estates to complement the door- NEA launched the National to-door collections. This covers about 85% Recycling Programme (NRP) in April of the population centres of the country. 2001 to provide a convenient means for With approximately one set to every fi ve residents living in public and private blocks of fl ats, most residents would be housing estates to recycle their waste. able to access these centralised recycling

ETHOS | World Cities Summit Issue | JUNE 2008 Waste Management and Economic Growth | Lee Yuen Hee 59 depositories within 150 metres from fi eld trips, workshops, and speech their fl ats to deposit their recyclables at writing contests on different aspects any time of the day. of the environment, including waste This network is supplemented by minimisation and recycling. another 2,200 recycling bins placed in To instil a sense of environmental public places with high human traffi c. ownership of the recycling programme, Such places include locations outside students are identified and train stations, food courts and food separately trained to be Environment centres, bus interchanges, the airport, Champions. These Champions are and pedestrian malls. responsible for various environmental programmes in school such as c) School Involvement conducting talks on the environment, and assisting in the planning, Environmental awareness has to be built organisation and running of recycling from young. As such, Singapore’s waste and other environmental activities. management story is incorporated into the school syllabus, including visits Strategy 3: Waste Minimisation to NEA’s incineration plants and the While incineration and recycling are Semakau Landfi ll. end-of-pipe solutions, the third strategy NEA launched the Recycling of waste minimisation or reduction Corner Programme (RCP) for schools in is aimed specifi cally at cutting waste September 2002 to inculcate the habit at source, that is, even before it is of the 3Rs in students. Recycling bins produced. This helps close the waste for paper, drink cans and plastic bottles loop by providing us with the means to are placed at Recycling Corners located move closer to our ideal of a zero waste within school premises. As of 2007, 95% society. of all schools have recycling facilities. An initiative under this strategy is Under the RCP, students take charge the Voluntary Packaging Agreement. of the Recycling Corners and put up The Agreement is aimed at reducing interesting information about the 3Rs. packaging waste from the producers’ end. These activities help to generate interest With packaging waste making up almost a and foster a keener sense of ownership. third of Singapore’s household waste, this Activities with recycling themes are held initiative offers great potential for waste regularly to sustain interest, including reduction. The Agreement is based on competitions, environmental camps, the principle of product stewardship,

ETHOS | World Cities Summit Issue | JUNE 2008 60 Waste Management and Economic Growth | Lee Yuen Hee in contrast to the legislative approach donate 10 cents towards the Singapore which imposes a high compliance cost Environment Council to help fi nance its on industry. This approach directly environmental activities. Shoppers are engages industry players to assume also encouraged to decline bags when greater corporate responsibility for their making small purchases. packaging waste in a non-prescriptive and cost-effective way. CHALLENGES AHEAD On 5 June 2007, NEA signed Singapore has always placed a Singapore’s fi rst Voluntary Packaging strong emphasis on having a clean Agreement for the food and beverage environment and pollution-free air, industry which includes fi ve industry land and water, and the challenges associations representing more than 500 facing Singapore ahead are to maintain companies, 19 individual companies, a clean and green environment amidst two NGOs, the Waste Management and rapid economic progress. To overcome Recycling Association of Singapore these challenges, Singapore must and the four public waste collectors. constantly innovate and optimise its This Agreement seeks to secure the resources. commitment of key players in the packaging supply chain, brand owners, manufacturers, importers, retailers The way forward is to reduce and recyclers, and also offers industry the waste disposal rate a platform to discuss and work together through waste recycling and on feasible, cost-effective solutions to waste minimisation at source. reduce packaging waste. Another initiative to reduce waste is the Bring Your Own Bag Day campaign, As the economy and population launched in April 2007. The fi rst continue to grow and consumption Wednesday of every month has been patterns change, waste generation is designated “Bring Your Own Bag Day”. expected to increase. However, NEA is Shoppers are encouraged to use reusable convinced that economic growth need bags so as to cut down on wastage of not mean generating more waste. plastic checkout bags that are taken The per capita municipal solid waste and discarded without being reused disposed of has decreased from 0.94 kg/ such as for lining waste bins. Shoppers person/day in 2003 to 0.88 kg/person/ needing a plastic bag are encouraged to day in 2007, suggesting that Singapore

ETHOS | World Cities Summit Issue | JUNE 2008 Waste Management and Economic Growth | Lee Yuen Hee 61 is making progress “Towards Zero Lee Yuen Hee is Chief Executive Offi cer of Landfi ll” and demonstrating that the National Environment Agency (NEA). He economic development does not have has led the Agency in major initiatives such as containing the outbreak of the dengue to mean more waste generated. scourge, addressing climate change and In the early days of industrialisation promoting energy effi ciency. As part of the and economic growth, the Singapore national drive to improve energy effi ciency, Government adopted the most cost- NEA led a multi-agency committee known effective solutions at the time to handle as the Energy Effi ciency Programme Offi ce the increasing amounts of solid waste (E2PO) to integrate the overall efforts of being generated in the country. As the public, private and people sectors to waste quantities continue to increase improve energy effi ciency. In his previous appointments, Mr Lee was involved in other with the economy’s robust growth, national projects such as the restructuring the way forward is to reduce the waste of the electricity industry, implementation disposal rate through waste recycling of Electronic Road Pricing and review of the and waste minimisation at source. At full-time national service period. the same time, NEA will continue to actively engage and educate the 3P NOTE sectors—People, Private and Public 1. The Housing and Development Board is Singapore’s public sectors—through various community housing authority and a statutory board under the Ministry of National Development. programmes and campaigns to achieve a clean and sustainable living environment. Through our multi-pronged strategies and sustained efforts, we hope to ensure that Singapore remains as a model of sustainable development in the region.

ETHOS | World Cities Summit Issue | JUNE 2008 62 A City in a Garden | Ng Lang

Ng Lang A City in a Garden

Singapore’s greenery plan has entered a new phase of development where conserving biodiversity and involving the community will further transform the island.

n the 1960s, then Prime Minister as a destination for foreign businesses Lee Kuan Yew mooted the creation and talents. Our green policies have I of a clean and green environment contributed to the transformation of to mitigate the harsh concrete urban Singapore into a distinctive and vibrant environment and improve the quality of global city. life in the city. This was the beginning of Going forward, the plan is to evolve Singapore’s development into a Garden Singapore into a City in a Garden—a City. bustling metropolis nestled in a lush As a result, Singapore’s clean and mantle of tropical greenery (Figure 1). green environment has allowed us to To do this, we will be adding more meet the lifestyle and recreational needs sophistication to our greenery plan, of an increasingly affl uent population, conserving our natural heritage, and and enhanced Singapore’s attractiveness involving the community.

ETHOS | World Cities Summit Issue | JUNE 2008 A City in a Garden | Ng Lang 63

in the subsequent 15 years, incorporated a new Parks and Water Bodies Plan with these guiding principles: • Plan for a hierarchy of pa rk s dist r ibuted throughout the island, from larger parks with more facilities, to smaller parks near homes, with a guideline of 0.8 hectare per 1,000 population provision. A MORE SOPHISTICATED • Cluster groups of parks with GREENERY PLAN complementary ecosystems and The challenge of greening a small activities, like wetlands, hill parks, city-state with a land area of only 700 tropical rainforests, and connect square kilometres and a population of them where possible to give a more 4.6 million (and still growing) is space. holistic experience. However, green space need not necessarily • Bring people closer to nature and, suffer at the expense of economic where possible, integrate nature and population growth. While land is areas within parks. scarce, with careful planning, Singapore • Plan for an island-wide network of has been able to commit 9% of the total green links to connect parks and land area to parks and nature reserves. water bodies with residential areas. Between 1986 and 2007, despite the The matrix of park connectors as population growing by 68% from 2.7 green links and recreational corridors million to 4.6 million, the green cover1 among parks is one of the ways to in Singapore grew from 35.7% to 46.5% expand green space in the city. The (Figure 2). park connector network is a series of The importance of greenery for a seven connecting bikeways or green quality living environment has been paths. Our target is to build 200 underscored in Singapore’s Master Plan kilometres of park connectors by the 2003. The Master Plan, drawn up by the year 2015, covering seven closed loops Urban Redevelopment Authority (URA) for recreational walking, jogging and to steer Singapore’s urban development cycling activities. Properly integrated with their surrounding areas, the park

ETHOS | World Cities Summit Issue | JUNE 2008 64 A City in a Garden | Ng Lang connectors will enhance the sense of Similarly, the Public Utilities Board green space throughout the city. The (PUB) has opened up and developed its fi rst loop of 42 kilometres, which was water bodies for recreational activities. completed in December 2007, is known The Active, Beautiful and Clean (ABC) as the Eastern Coastal Park Connector Waters Programme is one such initiative, Network. It allows users to walk, jog and where the objective is to break down cycle through idyllic coastal areas, six some of the harsh concrete walls of water parks and residential heartland areas. canals, and landscape them for better This park connector network has been integration with surrounding parks and well-received and was the venue for the green space. The pilot project, completed fi rst night-time marathon in Asia in May 2008. in April 2008 along the Kallang River, complements a park connector, and demonstrates how such projects can dramatically transform Singapore’s landscape and enhance green and water-based recreational space for the residents. Skyrise greenery is another example of how we can add new dimensions to the green space in the city. While roof-top and vertical greenery is not a new architectural phenomenon in Singapore, the increasing adoption of skyrise greenery in new iconic buildings such as the National Library Building, and upcoming projects such as the Eco- Precinct by the Housing Development Board (HDB) and the Integrated Resort in Marina Bay augurs well for the development of skyrise greenery in the city. Ongoing research by the National Parks Board (NParks), to identify plants and planting medium to ease maintenance of skyrise greenery, aims

ETHOS | World Cities Summit Issue | JUNE 2008 A City in a Garden | Ng Lang 65 to contribute to developments in this venue for the arts and culture. The new area. Sengkang Riverside Park will feature a As the population’s expectations theme of fruit trees and water recreation, become more sophisticated, there is a while the upcoming new Admiralty need to develop a wider range of parks Park will have a nature appreciation and and recreational amenities. An important conservation component. There will also focus of NParks has been to develop our be a new extreme skate park for those parks into natural gravitational points seeking thrills and excitement within a for play and leisure. While ensuring that green setting. ample green space has been set aside Our biggest commitment is the to cater to those who seek the pleasure Gardens-by-the-Bay project. This is a plan to develop three world-class of a simple, idyllic green hideout from gardens on prime land around the Marina Bay waterfront. The fi rst phase The matrix of park connectors of the project, which is to develop a 52- as green links and recreational hectare garden at Marina South, has corridors among parks is one started and is targeted to be completed of the ways to expand green by 2011. This project will incorporate space in the city. groundbreaking ideas aimed at enriching the lifestyles and recreational activities of Singaporeans and tourists the hustle and bustle of the city, we are through edutainment opportunities in also selectively developing parks along a sustainable garden environment. thematic lines. For instance, the Jacob So far, some 91% of park users Ballas Children’s Garden at the Singapore surveyed in 2006 were satisfi ed with the Botanic Gardens which opened in parks in Singapore. There is also a rising October last year was designed as a haven trend of tourists visiting our parks for children below 12 years old. HortPark and nature reserves. Surveys by the was offi cially opened in May 2008 as a Singapore Tourism Board show that the one-stop gardening hub for gardening Singapore Botanic Gardens ranked sixth lovers and aspirants. Other projects in terms of local attractions in 2006. A such as the Fort Canning Park within good measure of how well we develop the city centre will be better connected and manage our greenery plan will be to the National Museum and the Bras refl ected in how well we sustain, and Basah area to improve its vibrancy as a indeed improve, these indicators.

ETHOS | World Cities Summit Issue | JUNE 2008 66 A City in a Garden | Ng Lang

CONSERVING OUR NATURAL HERITAGE of the region’s rich botanical biodiversity Singapore’s rapid re-development as an in an easily accessible urban setting. urban city is matched by increasing calls It is in this context that the for urban planners to develop a “soul” Government adopted the policy to for the city. A large part of this will legally protect representatives of key involve retaining the essence or heritage indigenous ecosystems. We have four of the old city. Likewise, in developing Nature Reserves, namely, the Bukit Timah Singapore as a city in a garden, we are Nature Reserve (lowland dipterocarp moving beyond paying attention to forest), the Central Catchment Nature mere infrastructure to conserving the Reserve (including freshwater swamp forest), Sungei Buloh Wetland Reserve natural biodiversity in the city. (mangroves) and Labrador Nature Given our small land area and the Reserve (coastal hill forest). The Sungei need for economic growth, we have Buloh Wetland Reserve and Labrador to adopt a pragmatic approach in Nature Reserve were gazetted in January balancing development and biodiversity 2002. Together, the four nature reserves conservation. Our aim has been to cover more than 3,000 hectares or 4.5% create a unique conservation model that of Singapore’s land area. We are probably champions environmental sustainability unique in being one of the few cities in a small urban setting. Fortunately, with nature reserves within its urban Singapore is a city rich in biodiversity setting. In addition, one of the reserves, despite our small land mass. The island the Sungei Buloh Wetland, holds the has some 360 species of birds, which distinction of being an ASEAN Heritage is slightly more than 60% of the 568 Park, as well as an important link in the species listed in the United Kingdom chain of stop-over sites for migratory or 75% of the 467 species found in birds from as far as Siberia. France. Interestingly, some species While the nature reserves are thought to be extinct on the island, sustainable in terms of size, we also need like the Oriental Pied Hornbill, are to ensure their sustainability in terms now establishing healthy colonies here of quality, that is, the species surviving because of the lush green environment. within them and how they react to the Nestled in the midst of the Indo-Malayan long-term impact of environmental rainforest (one of three last remaining change. The Smithsonian Center rainforest blocs in the world), Singapore for Tropical Forest Science has been is well-placed to showcase the richness conducting research of this nature in

ETHOS | World Cities Summit Issue | JUNE 2008 A City in a Garden | Ng Lang 67 the Bukit Timah Nature Reserve for the the right planting schemes, the park past decade. NParks also conducts our connectors can form a matrix of green own periodic biodiversity surveys of the links for bird movement within our urban nature reserves for this purpose. Results setting. Likewise, PUB’s ABC programme from such studies and surveys will help will provide new opportunities to create us to formulate management strategies water-based eco-habitats in the city. for the long-term sustainability of our nature reserves within our unique urban INVOLVING THE COMMUNITY setting. A major project that is being To truly realise Singapore’s vision of a planned is to create an eco-link over City in a Garden, it is important that the the Bukit Timah Expressway which is community shares and takes ownership located close to the Bukit Timah Nature of this vision and is actively involved in Reserve to mitigate the negative effects the greening efforts. Many efforts have of fragmentation and genetic erosion in been made to ensure that NParks’ work the Reserve. is supported by the 3P sectors: people, Outside the nature reserves, public sector agencies and private Singapore’s network of green space, corporations. In 2006 alone, more than streetscape, park connectors and water 1,000 guided walks, educational talks, bodies covers more than 4.5% of our events and programmes were conducted land areas. With proper management, as part of our outreach efforts in this these areas can also be optimised to area. enhance our urban biodiversity. We We are seeing increased public have programmes such as the Heritage interest and participation in community Tree Programme and Heritage Road gardening efforts. The Community-in- Programme to conserve mature trees Bloom (CIB) programme, which seeks in the city. One of the projects in the to cultivate a culture of gardening pipeline includes widening the diversity of in Singapore, has received very good regional native plant species used in support. Since its inception in 2005, the roadside, park and park connector programme has inducted more than 250 planting. The most recent initiative is a gardening groups in the community. project to set up a dipterocarp arboretum What has been most rewarding is how in an urban setting at Yishun Park. We this programme has helped to promote will also need to better build up expertise gardening as a hobby as well as build to create eco-habitats within our urban friendship and the spirit of sharing green space. It is envisaged that with in the community. Our next step is to

ETHOS | World Cities Summit Issue | JUNE 2008 68 A City in a Garden | Ng Lang introduce the CIB-Kids programme. and environmental conservation, and Through partnerships with educators, engage community participation at all we hope to inculcate an appreciation levels, will further enhance the vibrancy for gardening in our young. The Plant- and soul of our City in a Garden. We can a-Tree programme has also been well- look forward to greener days ahead.2 received. Large numbers of individuals and corporations have stepped forward to donate a nominal sum of $200 to Ng Lang has been Chief Executive Offi cer of plant a tree and contribute towards the the National Parks Board (NParks) since 2006, wellness of our living environment. where he has led the growth of Singapore’s garden infrastructure and spearheaded Within the public sector, the Garden developments in nature conservation and City Action Committee has been the biodiversity. Mr Ng has previously served in main coordinating vehicle for ensuring various capacities in the Singapore diplomatic that public sector agencies such as the service and the public healthcare service. URA, HDB, PUB and the Land Transport Authority are well coordinated in their developmental projects and are aligned NOTES 1. This refers to the area covered by greenery. This is based to the City in a Garden vision. on a study conducted by the Centre for Remote Imaging, Sensing and Processing (CRISP), National University of In the private sector, the global Singapore. climate change agenda has also 2. This article was written in April 2008 and since then, our City in a Garden has been further augmented via the seen more corporations take up release of the draft Master Plan 2008 on 23 May 2008. The key thrusts look towards a transformation into a City of environmental programmes as part of Gardens and Water, where greenery and blue spaces would their corporate social responsibility. The be increased, extended and pervasive. As outlined in the new Master Plan, greenery will be signifi cantly increased, Garden City Fund was set up in 2002 to with proposed park areas being upped from 3,300 to 4,500 hectares, which include new major parks as well. The park allow individuals and corporations to connector network will be increased to 360 kilometres of park connectors, inclusive of a 150-kilometre round-the- donate to the greening efforts of the island loop. A signifi cant proposal will be the harnessing of rustic farmland areas like Kranji and Lim Chu Kang as nature Singapore. Increasingly, we have been refuges, featuring nature trails, educational programmes, seeing more private sector companies and even waterway boating. contribute to this Fund which promotes the environmental cause among consumers.

CONCLUSION New initiatives to energise Singapore’s green space, balance economic development

ETHOS | World Cities Summit Issue | JUNE 2008 Transformative Investments: Remaking American Cities for a New Century | Bruce Katz and Julie Wagner 69

Bruce Katz and Julie Wagner Transformative Investments: Remaking American Cities for a New Century

“Transformative investments” is a class of urban interventions that is making an impact on markets, people, city landscapes and urban possibilities.

t the dawn of a new century, Across the United States (US), a broad broad demographic, economic cross section of urban practitioners— A and environmental forces are private investors and developers, giving American cities their best chance government offi cials, community and in decades to thrive and prosper. The civic leaders—are taking ambitious renewed relevance of cities derives in steps to leverage the distinctive physical part from the very physical characteristics assets of cities and maximise their that distinguish cities from other economic, fi scal, environmental and forms of human settlement: density, social potential. diversity of uses and functions, and distinctive design.

ETHOS | World Cities Summit Issue | JUNE 2008 70 Transformative Investments: Remaking American Cities for a New Century | Bruce Katz and Julie Wagner

A special class of urban interventions— learning, entertainment districts, what we call “transformative pedestrian-friendly neighbourhoods, investments”—is emerging from the adjoining rivers and lakes—that are millions of transactions that occur uniquely aligned with preferences in in cities every year. The hallmark of a knowledge-oriented, post-industrial transformative investments is their economy. A knowledge economy places catalytic nature and seismic impact on the highest premium on attracting and markets, on people, on the city landscape retaining educated workers, and an and urban possibilities—far beyond the increasing proportion of these workers, geographic confi nes of the project itself. particularly young workers, value urban Recognising and replicating the quality of life when making their magic of transformative investments, residential and employment decisions. and making the exception become the Finally, cities, particularly those built norm is important if US cities are to in the nineteenth and early twentieth realise their full potential. centuries, are compactly constructed and laid out along dense lines and THE URBAN MOMENT grids, enhancing the potential for the The US is undergoing a period of dynamic, random, face-to-face human dynamic change, comparable in scale exchange prized by an economy fuelled and complexity to the latter part of by ideas and innovation. Such density the nineteenth century. Against this also makes cities perfect agents for the backdrop, there is a resurgence in effi cient delivery of public services as the importance of cities due to their well as the stewardship of the natural fundamental and distinctive physical environment. attributes. Each of these elements— Cities offer a broad range of physical diversity, amenities, and density— choices—in neighbourhoods, housing distinguishes cities from other forms of stock, shopping venues, green spaces human settlement. In prior generations, and transportation. These choices suit these attributes were devalued in a the disparate preferences of a growing nation characterised by the single population that is diverse by race, family house, the factory plant, cheap ethnicity and age. gas, and environmental profl igacy. In Cities are also rich with physical recent history, many US cities responded amenities—mixed-use downtowns, by making the wrong physical bets or historic buildings, campuses of higher by replicating low-density, suburban

ETHOS | World Cities Summit Issue | JUNE 2008 Transformative Investments: Remaking American Cities for a New Century | Bruce Katz and Julie Wagner 71 development—further eroding the very found in all aspects or “building blocks” strengths that make cities distinctly of cities: in the remaking of downtowns urban and competitive. as living, mixed-use communities; in Yet, the US, a nation in demographic the creation of neighbourhoods of and economic transition, is revaluing choice that are attractive to households the quality of life uniquely offered by with a range of incomes; in the cities and urban places, potentially conversion of transportation corridors altering the calculus by which millions into destinations in their own right; of American families and businesses in the reclaiming of parks and green make location decisions every year. spaces as valued places; and in the revitalisation of waterfronts as regional DELIVERING “CITYNESS”: THE RISE OF destinations, new residential quarters TRANSFORMATIVE INVESTMENTS and recreational hubs. Across the US, a practice of city building Yet, as the new city building practice is emerging that builds on the re-found evolves, it is clear that a subset of urban value and purpose of the urban physical investments are emerging as truly landscape, and recognises that cities “transformative” in that they have a thrive when they fully embrace what catalytic, place-defi ning impact, creating Saskia Sassen calls “cityness”.1 an entirely new logic for portions of the The move to recapture the American city and a new set of possibilities for city can be found in all kinds of economic and social activity. American cities: global cities like New York, Los Angeles and Chicago that lie Across the US, a practice at the heart of international trade and of city building is emerging fi nance; innovative cities like Seattle, Austin and San Francisco that are that builds on the re-found leading the global economic revolution value and purpose of the urban in technology; older industrial cities like physical landscape. Cleveland, Pittsburgh and Rochester that are transitioning to new economies; fast- We defi ne these transformative growing cities like Charlotte, Phoenix investments as “discrete public or private and Dallas that are regional hubs and development projects that trigger a magnets for domestic and international profound, ripple effect of positive, migration. multi-dimensional change in ways that The new urban practice can also be fundamentally remake the value and/

ETHOS | World Cities Summit Issue | JUNE 2008 72 Transformative Investments: Remaking American Cities for a New Century | Bruce Katz and Julie Wagner or function of one or more of a city’s • On the social front, transformative physical building blocks”. investments have the potential, This subset of urban investments while not always realised, to alter share important characteristics: the opportunity structure for low- • On the economic front, transformative income residents. When carefully investments uncover the hidden designed, staged and leveraged, value in a part of the city, creating they can expand the housing, markets in places where markets employment and educational either did not exist or were only opportunities available to partially realised. low-income residents and overcome • On the fi scal front, transformative the racial, ethnic and economic investments dramatically enhance disparities that have inhibited city the fiscal capacity of local performance for decades. governments, generating revenues through the rise in property values, DISSECTING SUCCESS: HOW AND WHERE the growth in city populations, and TRANSFORMATIVE INVESTMENTS the expansion of economic activity. TAKE PLACE • On the cognitive front, transformative The best way to identify and assess investments redefi ne the identity transformative investments is by and image of the city. They effectively examining exemplary interventions in “re-map” previously forgotten or the discrete physical building blocks ignored places by residents, visitors of cities: downtowns, neighbourhoods, and workers. They create nodes of corridors, parks and green spaces, and new activities and new places for waterfronts. people to congregate. • On the environmental front, Downtowns transformative investments enable If cities are going to realise their true cities to achieve their “green” potential, downtowns are compelling potential by cleaning up the places to start. Physically, downtowns environmental residue from prior are equipped to take on an emerging industrial uses or urban renewal set of uses, activities and functions and efforts, by enabling repopulation have the capacity to absorb real increases at greater densities to occur and in population. Yet, as a consequence to by providing residents, workers and visitors with transportation America’s sprawling appetite, urban alternatives. downtowns have lost their appeal.

ETHOS | World Cities Summit Issue | JUNE 2008 Transformative Investments: Remaking American Cities for a New Century | Bruce Katz and Julie Wagner 73

Economic interests, once the stronghold time in response to micro- and macro- in downtowns, have moved to suburban economic trends, a subset of inner city town centres and offi ce parks, depressing communities have remained enclaves urban markets and urban value. of poverty. Victims of earlier urban Across the US, downtowns are renewal and public housing efforts, remaking themselves as residential, millions of people are consigned to cultural, business and retail centres. living in neighbourhoods isolated from Cities such as Chattanooga, Washington, the economic and social mainstream. DC and Denver have demonstrated how Cities such as St. Louis, Louisville even one smart investment can inject and Atlanta have been at the forefront new energy and jumpstart new markets. of public housing (and hence The strategic location of a new sports neighbourhood) transformation, arena in a distressed area of downtown supported by smart federal investments Washington, DC fi ts our defi nition of a in the 1990s. For example, the demolition transformative investment. Leveraging of the infamous high-rise Vaughn public the proximity of a transit stop, the MCI housing project in St. Louis enabled the Arena was nestled within the existing construction of a new human scale, urban fabric on a city-owned urban mixed-income housing development in renewal site. The arena’s pedestrian- one of the poorest, most crime-ridden oriented design strengthened, rather sections of the city. This redevelopment than interrupted, the continuity of the cured the mistakes made by failed 7th Street retail corridor.2 Today, the area public housing projects, by restoring has been profoundly transformed as street grids, providing quality design, scores of new restaurants, retail and bars and injecting a sense of social and dot the arena’s surroundings. Residents physical connection. Constructing a mix and visitors rely heavily on the nearby of townhouses, garden apartments and transit to come to this destination. single family homes helped catalyse other public and private sector investments. Neighbourhoods What made this investment Ever since the physical, economic transformative was that it included the and social agglomeration of “city” reconstitution of Jefferson Elementary, was established, the function of a nearby public school. Working closely neighbourhoods has remained relatively with residents, and with the fi nancial untouched. While real estate values support of corporate and philanthropic of neighbourhoods have shifted over interests, the developer helped

ETHOS | World Cities Summit Issue | JUNE 2008 74 Transformative Investments: Remaking American Cities for a New Century | Bruce Katz and Julie Wagner modernise the school, making it one streetcars traverse a three-mile route of the most technologically advanced through residential areas, the water educational facilities in the region. A front, to the university. Since its new principal, new curriculum, and new construction, the streetcar has not only school programmes helped it become expanded transportation choices, it one of the highest performing inner city has helped galvanise new destinations schools in the state of Missouri. along its route—including new neighbourhoods, retail clusters, and Corridors economic districts. City corridors are the physical tissue that knit disparate parts of a city Parks and Open Space together. In the best of conditions, City green spaces (such as parks, nature trails, bike paths) were initially designed corridors are multi-dimensional in to provide the lungs of the city and an purpose, where they are destinations outlet for recreation, entertainment and as much as facilitators of movement. social cohesion. As general conditions In many cities, however, corridors are declined in many cities, the quality simply shuttling traffi c past blocks of of urban parks also declined, to the desolated retail and residential areas great consternation of local residents. or they have become yet another cookie Green spaces were turned into under- cutter image of suburbia—parking lots used, if not forgotten, areas of the city; abutting the main street, standardised or worse still, hot spots of crime and buildings and design, and oversized and illegal activity. Such blight discouraged cluttered signage. cities to transform outmoded uses (such Cities like Portland, Oregon and as manufacturing areas) into more urban counties like Arlington, Virginia green space. In cities with booming have used mass transit investments and development markets, parks failed to be land use reforms to create physically, designed and incorporated into the new economically and socially healthy urban fabric. corridors that give new residents reasons Across the US, cities are pursuing to choose to live nearby and existing a variety of strategies to reclaim or residents reasons to stay. augment urban green spaces. Cities Portland conceived a streetcar to like Atlanta, for example, have created spur high density housing in close- transformative parks from outmoded in neighbourhoods that were slowly economic uses, such as manufacturing shedding old industrial uses. The land along urban waterfronts or by

ETHOS | World Cities Summit Issue | JUNE 2008 Transformative Investments: Remaking American Cities for a New Century | Bruce Katz and Julie Wagner 75 converting old railway lines into urban Waterfronts trail-ways. Many American cities owe their Cities like Scranton have reclaimed location and initial function to the existing urban parks consumed by proximity to water: rivers, lakes and crime and vandalism. This has required oceans. Waterfronts enabled cities to creative physical and programmatic manufacture, warehouse and ship investments, including: redesigning goods and products. Infrastructure was parks (removing physical and visibility built and zoning was aligned to carry out barriers such as walls, thinning these purposes. In a knowledge-intensive vegetation, and eliminating “dark economy, however, the function of corners”); increasing the presence of waterfronts has dramatically changed, uniformed personnel; increasing the refl ecting the pent-up demand for new park amenities (such as evening movies places of enjoyment, activities and uses. and other events to increase patronage);3 As with the other building blocks, and providing regular maintenance of cities are pursing a range of strategies the park and recreational facilities.4 to reclaim their waterfronts, often by addressing head-on the vestiges of City corridors are the physical an earlier era. tissue that knit disparate parts of New York has overhauled the a city together. In the best of outdated zoning guidelines for development along the Brooklyn conditions, corridors are multi- side of the East River, enabling the dimensional in purpose, where they construction of mixed-income are destinations as much as housing rather than prescribing facilitators of movement. manufacturing and light industry uses. Conversely, cities like Austin, Pittsburgh and many of its surrounding Albuquerque and San Antonio have municipalities have embarked on major prodded private sector developers efforts to re-mediate the environmental to create new parks as the prize of contamination found in former industrial new residential development. These sites, paving the way for new research development exactions represent a stark centres, offi ce parks and retail facilities. departure from past practice where new Milwaukee, Providence and Portland housing subdivisions and commercial have demolished the freeways that strips were constructed at a rapid pace, separated (or hid) the waterfront from with little thought of parks and open the rest of the downtown and city, space preservation.

ETHOS | World Cities Summit Issue | JUNE 2008 76 Transformative Investments: Remaking American Cities for a New Century | Bruce Katz and Julie Wagner and unleashed a new wave of private and zoning conventions: In the midst investment and public activities. of massive economic global change, 21st century American cities still bear th Transformative investments are the indelible markings of the 20 century. In the early 20th century, reclaiming the true urban identity for example, government bodies by strengthening aspects of the enacted zoning to establish new ‘physical’ that are intrinsically urban— rules for urban development. be it density, rehabilitation of a unique While originally intended to building or historic row, or protect “light and air” from the incorporation of compelling, immense overbuilding, later if not iconic, design. versions of zoning added the segregation of uses—isolating housing, offi ce, commercial and WHAT IS THE RECIPE FOR SUCCESS? manufacturing activities from each The following are underlying principles other. Thus, transformative investments that set these diverse investments apart require, at a minimum, variances from from other transactions: the rigid, antiquated rules that still defi ne Transformative Investments advance the urban landscape. In many cases, “cityness”: Investments embrace the examples of successful transformative characteristics, attributes, and dynamics investments have become the tool that embody “city”—its complexity, its intersection of activities, its diversity of to overhaul outdated and outmoded populations and cultures, its distinctively frameworks and transform exceptions varied designs, and its convergence of into new guidelines. the physical environment at multiple Transformative Investments require scales. Project by project, transformative innovative, often customised fi nancing investments are reclaiming the true approaches: Cities have distinctive urban identity by strengthening aspects physical forms (e.g., historic buildings) of the ‘physical’ that are intrinsically and distinctive physical visions (e.g., urban—be it density, rehabilitation of distinct districts). Yet private and even a unique building or historic row, or public fi nancing of the American the incorporation of compelling, if not physical landscape, for the most part, iconic, design. is standardised and routinised, enabling Transformative Investments require the production of similar products (e.g., a fundamental rethinking of land use single family homes, commercial strips)

ETHOS | World Cities Summit Issue | JUNE 2008 Transformative Investments: Remaking American Cities for a New Century | Bruce Katz and Julie Wagner 77 at high volume, low cost and low quality. (a new stadium or convention centre) Transformative investments, however, or waterfront revitalisation efforts that require the marrying of multiple sources constructed the wrong projects, having of fi nancing (e.g., conventional debt, misunderstood the market and the traditional equity, tax-driven equity diversifying demographic. investments, innovative fi nancing Telescoping the possibilities and arrangements, public subsidy, patient developing a bold vision must be done philanthropic capital), placing stress through an empirically-grounded on project design and implementation. process. A visioning exercise should In addition, achieving social objectives therefore include: an economic and often require building innovative tax and market diagnostic of the building block; shared equity approaches into particular a physical diagnostic; an evaluation of transactions, so that appreciations existing projects; and the development in property value can serve higher of a vision to transform the landscape. community purposes (e.g., creating From here, disparate actors (public, affordable housing trust funds). As with private, civic, not-for-profi t) will have regulatory frames, the evolution from the best instruments to assess whether exceptional transactions to routinised a physical project could meet specifi c forms of investments is required to market, demographic and physical ensure that transformative investments needs—increasing its chances of becoming become more the rule rather than the truly transformative. exception. Transformative Investments require Transformative Investments often integrative thinking and action: involve an empirically-grounded Transformative investments are often an vision at the building block level: act in “connecting the dots” between the While a vision is not a necessary pre- urban experiences (e.g., transportation, requisite for realising transformative housing, economic activity, education investments, cities that proceed without and recreation), which are inextricably one have a higher probability of making linked in reality but separated in action. the wrong physical bets, siting them This requires a signifi cant change in how in the wrong places, or ultimately cities are both planned and managed. creating a physical landscape that fails On the public side, it means that to cumulatively add up to “ cityness”. It transportation agencies must re-channel is easy to fi nd such examples around the scarce infrastructure investments country, such as isolated mega-projects to leverage other city building goals

ETHOS | World Cities Summit Issue | JUNE 2008 78 Transformative Investments: Remaking American Cities for a New Century | Bruce Katz and Julie Wagner beyond facilitating traffi c. It means that measurable revival. While broader macro agencies driving a social agenda, such as forces have handed cities this chance, schools and libraries, have to re-imagine city builders are also learning from their existing and new facilities to past mistakes. After investing billions of integrate strong design and move away dollars into city revitalisation efforts, the from isolated projects. principles underpinning particularly successful and catalytic projects— Transformative investments are often transformative investments—are an act in “connecting the dots” beginning to be clarifi ed. The between the urban experiences, which most important lesson for cities, however, is to embrace “cityness”, are inextricably linked in reality but to maximise what makes them separated in action. This requires a physically and socially unique signifi cant change in how cities are and distinctive. Only in this way both planned and managed. will American cities reach their true greatness. In the private sector, it means understanding the broader vision of the city and carefully siting and designing Bruce Katz is a Vice President at the Brookings investments to increase successful city- Institution and founding Director of the building and not just project-building. It Brookings Metropolitan Policy Program. He regularly advises national, state, regional means increasing their own standards by and municipal leaders on policy reforms that using exemplary design and construction advance the competitiveness of metropolitan materials. It means fi nding fi nancially areas. He focuses on reforms that promote benefi cial approaches to mixed income the revitalisation of central cities and housing projects and mixed use projects older suburbs, and enhance the ability of instead of just single uses. these places to attract, retain and grow In all cases, it requires holistic the middle class. In 2006, he received the thinking that cuts across the silos and prestigious Heinz Award in Public Policy for stovepipes of specialised professions and his contributions to urban and metropolitan fragmented bureaucracies. America.

BUILDING GREAT CITIES Julie Wagner is the Trans Atlantic Fellow at the Brookings Metropolitan Policy Program. For the fi rst time in decades, American Formerly the Deputy Planning Director for cities have a chance to experience a

ETHOS | World Cities Summit Issue | JUNE 2008 Transformative Investments: Remaking American Cities for a New Century | Bruce Katz and Julie Wagner 79

Washington DC, she is an expert on long- and short-range land use planning. Her research areas include how federal policies of various EU member states are advancing the prosperity of metropolitan regions; how US federal and state policies are encouraging quality physical reinvestments in urban areas; the resolution of urban development projects through land use mediation; and how to design and implement public involvement programmes for controversial urban projects.

The authors want to thank and acknowledge Andy Altman for his intellectual insights on developing this topic.

NOTES 1. Saskia Sassen defi ned the term “cityness” to be the concept of embracing the characteristics, attributes, and dynamics that embody “city”: complexity, the convergence of the physical environment at multiple scales, the intersection of differences, the diversity of populations and culture, the distinctively varied designs and the layering of the old and the new. Sassen, S., “Cityness in the Urban Age”, Urban Age Bulletin 2 (Autumn 2005). 2. Strauss, Valerie, “Pollin Says He’ll Pay for Sports Complex District, Awaits Economic Boost, Upgraded Image”, Washington Post, Thursday, 29 December 1994. 3. Personal communication from Peter Harnik, Director, Center for City Park Excellence, Trust for Public Land, 6 June 2005. 4. Harnik, Peter, “The Excellent City Park System: What Makes it Great and How to Get There”. San Francisco, CA: The Trust for Public Land, 2003. Available online at http://www.tpl.org/tier3_cd.cfm?content_item_id=11428 &folder_id=175

ETHOS | World Cities Summit Issue | JUNE 2008 80 The Environment as Capital | Dodo J. Thampapillai

Opinion Dodo J. Thampapillai The Environment as Capital

ollowing the 2006 Stern environmental economics is that nature report,1 global warming, climate is capital and that without nature, an F change and the scarcity of economy will not exist. This is because basic resources have become dominant while nature acts as a source of an themes in policy forums concerning economy’s basic resources, it is also sustainable development. There a sink for the economy’s wastes. This is now widespread consensus that principle explains why environmental these environmental challenges must economics is centred on the bio-physical be explicitly acknowledged in the realities of the natural environment. formulation of development policies. While all standard economics texts Therefore, the sustainability of cities confi ne the concept of equilibrium will very much depend on policy to and within the economic system, and planning practices that address environmental economics takes this environmental concerns. concept beyond the economy and In the case of existing cities, there exposits the need for a perpetual is a need to modify prevailing practices equilibrium between nature and the and in some instances, adopt drastically economy as the basis for sustainability. different practices. With regard to the The analytics of a sustainable development of new cities, the objective equilibrium does not simply rest on should be to recognise mistakes made a derived game theoretic bargaining in previous planning and development solution, as some might suggest. Instead, practices, and adopt governance it is based on internalising the laws of regimes that offer due recognition to thermodynamics into frameworks in environmental challenges. economics that permit the maintenance Environmental economics plays of a permanent stock of environmental a fundamental role in developing capital (sources and sinks). environmentally-conscious public The challenges posed by the scientifi c governance. The central theme of realities of the natural environment are

ETHOS | World Cities Summit Issue | JUNE 2008 The Environment as Capital | Dodo J. Thampapillai 81 real and formidable. At the risk of over- Pindyck and Rubinfeld,3 production is simplifi cation, these challenges stem attributed to the role of labour (L) and from the diminution of nature as both manufactured capital (KM). However, a source and sink. Hence, the survival early neoclassical economics, such as of cities and communities will depend Jevons,4 Marshall5 and Fisher,6 exposited on how well the sources and the sinks production in terms of not only L and are managed. In most instances, the KM but also KN. Marshall’s explanation source and the sink are one and the on the role of KN was profound: “… man same. For example, the air-shed provides does not create things but only rearranges a community with clean air. At the same matter”. 5 Fisher, who was instrumental time, it is also a sink for the emissions in setting the stage for the development that stem from a wide range of economic of capital theory on stocks and fl ows, activities. Yet the source-sink role of relied on the premise that nature is nature is not clearly understood by a capital stock that provides a fl ow of many policymakers—especially those services. trained as professional economists. The result: a mistaken set of ideologies and The survival of cities and premises that can frustrate meaningful communities will depend on approaches to sustainable development. how well the sources and the sinks are managed. IDEOLOGICAL CHALLENGES The ideological challenges stem from the fact that environmental economics The omission of KN from the began as a peripheral area of study within explanation of production in the discipline of economics—which is contemporary economics is perhaps due the training ground for a signifi cant to two sets of reasons. The fi rst is that the proportion of individuals who are tasked formalisation of a theory of economic with the role of governance. Besides, growth by economists such as Harrod,7 important frameworks in economics, Domar,8 Samuelson,9 Swan10 and Solow,11 especially those dealing with production confi ned the explanation of growth and economic growth, fail to account for (expansion of production) to L and KM. the vital role of environmental capital This simplifi cation—the omission of (KN). KN in the explanation of growth—was In almost all standard economics perhaps premised on the assumption that texts, such as Frank and Bernanke2 and KN is infi nite. The second set of reasons

ETHOS | World Cities Summit Issue | JUNE 2008 82 The Environment as Capital | Dodo J. Thampapillai stem from the belief that technology offered very little space for the study can persistently offset the scarcity of of environmental economics, let alone KN. When the Malthusian notion of giving it the recognition it deserves. “Limits to Growth” surfaced in the 1970s This applies to almost all contemporary to discuss the consequences of a rapidly economics texts as well. For example, growing world population in a world of Frank and Bernanke2 and Pindyck and fi nite resources, overwhelming counter Rubinfi eld3 devote no more than a few evidence on the role of technology was pages to a discussion of environmental presented by the World Bank12 and issues. As the appreciation of the Samuelson and Nordhaus.13 scientifi cally-driven linkages between For instance, Samuelson and KN and the economy is limited within Nordhaus stated that: the economics curriculum, this can lead to mistaken premises which give “The dour Reverend T. R. Malthus rise to the emergence of ineffective thought that population pressures would policies and policy tools. This can be drive the economy to a point where workers seen in the period between 1970 to the were at the minimum level of subsistence... 1980s where the World Bank funded What did Malthus forget or at least several forest clearing programmes15 underestimate? He overlooked the future on the premise that growth needs only contribution of investment and technology. L and KM. Since then, there has been a He failed to realise how technological reversal of this ideology and the World innovation could intervene—not to repeal Bank has subsequently undertaken the law of diminishing returns but to more reforestation programmes accompanied than offset it. He stood at the brink of a by a transmigration programme for new era and failed to anticipate that the people. succeeding two centuries would show the In addition, the Environmental greatest scientifi c and economic gains in Kuznets Curve (EKC) offers a mistaken history—a chastening fact, and one to premise—namely that continued growth keep in mind while listening to modern would eventually lead to lower emission Malthusians sing on their baleful dirge.” loads that demand the sink services (pp 854-5) of KN. Grossman and Krueger16 and Shafi k17 have observed that the EKC is The net result of these two sets of an inverted U-type relationship between reasons has been the development income levels and the emission of of an economics curriculum that specifi c pollutants. This suggests that

ETHOS | World Cities Summit Issue | JUNE 2008 The Environment as Capital | Dodo J. Thampapillai 83 environmental damages which tend pollution loads. Global warming and to increase with the onset of economic climate change are manifestations of growth begin to diminish after a certain the fact that cumulative pollution loads threshold level of income—estimated exceeded threshold levels of environment to be a per-capita income of between sink capacities. The implication of this is US$5,000 to US$6,00018—is reached. This that governance regimes must seek very gives the misguided idea of growth fi rst different types of policies and practices. and the environment later. It is equally important to appropriately train those who will govern. The objective is to prevent CLOSED LOOP SYSTEM pollution loads from entering When the importance of cumulative environmental sinks so that pollution loads is acknowledged, then the sinks have suffi cient time closed loop production systems will to heal and re-commence the begin to fi gure prominently in public provision of service fl ows. policies. A closed loop system is one where waste is either recycled as an Related to the EKC observation is the input into another process or returned growing belief that emissions trading to nature as harmless material. The markets will reduce pollution levels to objective is to prevent pollution loads acceptable ones, such as those dictated from entering environmental sinks so by the Kyoto Protocol. It is certainly that the sinks have suffi cient time to desirable, if not essential, to work towards heal and re-commence the provision much lower pollution loads compared of service fl ows. At least four areas of to present levels. But to contend that closed loop production options are emissions trading will resolve global evident in many city/urban areas. These environmental problems and deliver are: Sewerage Treatment Systems; Air the sustainability of economies is too Conditioning and Heating Systems; ambitious and foolhardy. Both the EKC Energy Supply Systems; and Innovative observation and the Kyoto Protocol Methods of Commodity Development. overlook an important bio-physical reality, which is that the restoration of Sewerage Treatment Systems environmental sinks will not depend Sanitation and hygiene are not the only on the reduction of marginal pollution issues that surround sewerage treatment. loads but a reduction in the cumulative Because this activity eventually relies

ETHOS | World Cities Summit Issue | JUNE 2008 84 The Environment as Capital | Dodo J. Thampapillai on a variety of environmental sinks— the quality of the Pacifi c Ocean on the oceans, lakes, rivers and subterranean Eastern seaboard of Australia could ecosystems—effi cient methods of be seriously compromised. It is this sewerage treatment have far reaching type of practice (amongst others) that implications for sustainability. In this has rendered nearly half the Baltic Sea context, Singapore’s Public Utilities (below a certain depth) to be lifeless. Board (PUB) offers a framework which It is plausible to argue that the sink other cities can emulate. In this city-state, capacity of all oceans in all continents every home is connected to a system is compromised owing to improper where the treatment is so advanced that methods of sewerage treatment. The the recovered water is reusable for both oceans are the world’s largest naturally industrial and potable purposes. occurring carbon sink. The sink capacity Besides the issue of water of the oceans when restored could in conservation, it is equally important to turn restore balance to the carbon note that the extent of treatment renders cycle. the residues that get deposited into the ocean sink to be inert. Most coastal cities The oceans are the world’s in the world deposit untreated sewage largest naturally occurring into ocean sinks on the grossly mistaken carbon sink. The sink capacity assumption that the ocean is an infi nite of the oceans when restored sink. For example, Sydney, Australia pumps out at least 12 million litres of could in turn restore balance untreated raw sewage into the Pacifi c to the carbon cycle. Ocean each day.19 Imagine the cumulative load of pathogenic material that would Air Conditioning and Heating Systems have accumulated if one tallies all other Compared to 20 years ago, every home coastal pumping stations in Australia and building in almost every city is now and the number of years of this activity. equipped with either an air conditioner Some would argue that the ocean is not (in tropical countries) or a heat pump (in a static body of water and that wave temperate countries) or a reverse-cycle actions and oceanic movements will unit (mainly in temperate countries). render the deposits harmless. This may Air conditioners generally pump out be true if the loads of deposition are small hot air—depending on the indoor and not continuous over time. However, temperature setting—and hence raise scientifi c evidence now indicates that the outdoor ambient temperature. Heat

ETHOS | World Cities Summit Issue | JUNE 2008 The Environment as Capital | Dodo J. Thampapillai 85 pumps in winter drives out colder air fossil fuels. For example, the Australian and thereby lower the external ambient fi rm Oceanlinx has developed a device temperature. that converts wave energy into electrical The sceptics’ response would be that energy; it currently has in place about the change in temperature prompted six urban energy supply projects, each by each unit is miniscule relative to delivering between 5 to 15 megawatts the volume of the earth’s troposphere. of peak capacity. Entrepreneurs based However, if one were to add up the in the United States (US) are attempting number of homes across the globe to popularise electric cars that utilise and across a period of time, then the recharging stations on the mobile phone cumulative effect is signifi cant. Using model. the closed loop production system (or at least partially), it would mean searching Greenhouse gas concerns for home/building designs that would have already ushered in reduce the demand for heating and several alternative energy cooling while at the same time enable initiatives which range between the capture of the heat/cold emission energy saving devices and the for reuse within the home/building. For development of alternative example, in a shopping complex, the building could be designed such that energy sources to replace dry-cleaning establishments receive the fossil fuels. hot air exhausts (in tropical countries) and cold rooms for refrigeration receive The closed loop manufacturing model the cold air exhausts (in temperate has already permeated business and is countries). In both cases, the partial reported to have generated revenues loop closure reduces the energy demand amounting to US$53 billion in 1996 imposed on the grid. within the US manufacturing industry. There are numerous other examples of Energy Supply Systems and environmental innovations. One of the Commodity Development more prominent ones is the Hypercar Greenhouse gas concerns have already which uses cheaper and recyclable ushered in several alternative energy material for the car exterior and interior, initiatives which range between energy including a combustion system that saving devices and the development of signifi cantly reduces reliance on fossil alternative energy sources to replace fuels and hence reduces toxic emissions.

ETHOS | World Cities Summit Issue | JUNE 2008 86 The Environment as Capital | Dodo J. Thampapillai

The building industry has also recently environmental stewardship by fi rms proposed the manufacture of building could be feasible. materials from renewable sources Lastly, the theory of production (such as making bricks from pulp and involving KN must be incorporated paper) and, at the same time, designing within the economics curriculum of buildings that signifi cantly reduce the training institutions in order to cultivate demand for heating, insulation and environmental values and awareness in lighting. policymakers.

ENVIRONMENTAL ECONOMICS AND GOVERNANCE Dodo J. Thampapillai is an economist at Governments must choose an appropriate the Lee Kuan Yew School of Public Policy, mix of actions so that environmental National University of Singapore. He also sinks that have been damaged by years of holds a Personal Chair in Environmental neglect, false premises and complacency Economics at Macquarie University and an Adjunct Professorship in the same fi eld at the can be restored. While a zero emission Swedish University of Agricultural Sciences at regime may prove diffi cult in the short Uppsala. Professor Thampapillai has written run, it may be feasible in the long run. over 100 publications, including seven books The lower end of the time scale given and nine refereed monographs. His current in the Stern report for environmental research focus is on Macroeconomics and repatriation is only 50 years. Although the Environment. this estimate is probabilistic, it is prudent to be aggressive in the search for appropriate measures such as those NOTES 1. Stern, N., The Economics of Climate Change—The Stern mentioned in this essay. Some approaches, Review (London, UK: Cabinet Offi ce, HM Treasury, 2006). 2. Frank, R. and Bernanke, B., Principles of Economics (New such as globalising the PUB model of York: McGraw Hill, 2006). sewerage treatment, could be put in 3. Pindyck, R. S. and Rubinfeld, D. L., Microeconomics (New York: Prentice Hall, 2007). place, perhaps much sooner than global 4. Jevons, W. S., An Inquiry Concerning the Progress of carbon trading markets. the Nation, and the Probable Exhaustion of Our Coal-Mines (London: Macmillan and Co., 1866). Equally important is the role of 5. Marshall, A., Principles of Economics (London: Macmillan, environmental economics in guiding 1891). For example, see Marshall, Book II, Chapter III, Paragraph II.III.2. the governance regime. When KN is 6. Fisher, I., “Precedents for Defi ning Capital”, Quarterly Journal of Economics 18 (1904): 386-408. explicitly recognised in the production 7. Harrod, R. F., “An Essay in Dynamic Theory”, The Economic function, business decisions can be Journal, 49 (1939): 14-33. 8. Domar, E. D., “Capital Expansion, Rate of Growth and altered to such an extent that voluntary Employment”, Econometrica, 14 (1946): 137-47.

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9. Samuelson, P.A., Economics (New York: McGraw Hill, 1948). 10. Swan, T. W., “Economic Growth and Capital Accumulation”, Economic Record, 32 (1956): 334-61. 11. Solow, R., “A Contribution to the Theory of Economic Growth”, The Quarterly Journal of Economics 70 (1956): 65- 94. 12. The World Bank, 2005 World Development Indicators, http://devdata.worldbank.org/wdi2005/Toc.htm 13. Samuelson, P. A. and Nordhaus, W., Economics (New York: McGraw Hill, 1948). 14. This paragraph has been removed from more recent editions of this book. 15. http://www.whisperedmedia.org/wbforests.html 16. Grossman, G. M. and Krueger, A. B., Environmental Impact of a North American Free Trade Agreement, Working Paper 3914 (Cambridge, MA: National Bureau of Economic Research, 1991). 17. Shafi k, N., “Economic Growth and Environmental Quality: An Econometric Analysis”, Oxford Economic Papers 46 (1994): 162-78. 18. Thampapillai, D. J., Environmental Economics: Concepts, Methods and Policies (Melbourne: Oxford University Press, 2002). 19. http://www.environment.nsw.gov.au/resources/beach/ bwsob0304/bwar03042.pdf. FURTHER READING Benyhus, J. M., Biomimicry: Innovation Inspired by Nature, 1st ed (New York: William Morrow, 1997). Bunce, A.C., The Economics of Soil Conservation (Lincoln, NE: University of Nebraska Press, 1942). Ciriacy-Wantrup, S. von, “Soil Conservation in European Farm Management”, Journal of Farm Economics 20 (1938): 86-101. Daly, H. E., “Sustainable Growth: An Impossibility Theorem”, Development 40 (1997): 121-5. Gray, L. C., “Rent Under the Assumption of Exhaustibility”, The Quarterly Journal of Economics 28 (1914): 466-89. Hotelling. H., “The Economics of Exhaustible Resources, The Journal of Political Economy 39 (1931): 137-75. Nordhaus, W., “World Dynamics: Measurement without Data”, The Economic Journal 83 (1973): 1156-83. Schickele, R., “Economic Implications of Erosion Control in the Corn Belt”, Journal of Farm Economics 17 (1935): 433- 48. Scott, A., “Conservation Policy and Capital Theory”, The Canadian Journal of Economics and Political Science 20 (1954): 504-13. Thampapillai, D. J and Ohlmer, B, “Environmental Stewardship and the Firm: Perspectives from Environmental Economics”, Forthcoming in Business Management and Environmental Stewardship, ed. Staib, R., (London: Palgrave MacMillan, 2008).

ETHOS | World Cities Summit Issue | JUNE 2008 88 Human Development and Urbanisation | Richard Leete

Richard Leete Human Development and Urbanisation

A critical difference between past and present urban transitions is the impact of globalisation on city growth patterns.

ities are the main of change have been most salient: the benefi ciaries of globalisation— speed of urban growth in less developed C the increasing integration countries, and the growth of megacities. and interdependence of the world’s While still a major feature, megacities economies. People follow jobs, which (those with populations of 10 million or follow investment and economic more) have not grown to the sizes once activities. Most are increasingly projected, accounting for just 9% of the concentrated around dynamic urban total urban population.1 areas of all sizes, but especially capital There is a high correlation between cities. level of urbanisation and development. The nature of city growth has The countries and cities of Southeast changed. In recent decades, two patterns Asia span a wide range, with Singapore,

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Brunei Darussalam2 and Malaysia3 world’s urban population is projected to being the most advanced, and Laos, grow by 48% to 4.9 billion. In contrast, Cambodia and Vietnam the least the world’s rural population is expected advanced. All countries of the region to decline.1 are expected to attain higher levels of Within Southeast Asia, levels of urbanisation and human development. urbanisation have grown sharply over This essay reviews urban population the past 25 years and are expected to growth and its linkages with human continue to rise, particularly for Malaysia, development4 and the achievement Indonesia and the Philippines (Figure 1). of the United Nations Millennium The increases in urban population in the Development Goals (MDGs) in the countries of Southeast Asia are part of a countries of Southeast Asia. second wave of demographic, economic and urban transitions, much bigger and POPULATION GROWTH AND THE NEW faster than the fi rst in Europe and North WAVE OF URBANISATION America that began in the 18th century. The world is at the point of a signifi cant These latter two regions experienced urban transition. In 2008, the world’s the fi rst demographic transition, the urban population numbers, totalling fi rst industrialisation and the fi rst wave over 3.3 billion, have surpassed the of urbanisation. size of rural populations. At the global level, all future population growth will occur in towns and cities, 95% of it in the developing world. These population trends follow expectations given the structural transition of employment away from agriculture and towards urban manufacturing and service industries. Both the number and proportion of urban dwellers will continue to rise rapidly (Figure 1). By 2030, the

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In the past half-century, the less harnessing both human and technical developed countries have begun resources for achieving gains in similar transitions. In both instances, productivity and competitiveness. population and economic growth have Urban settlements tend to account propelled the urban transition, but the for a larger share of national income, speed and scale of urbanisation today outpacing national economic growth. are far greater and the challenges For example, Bangkok, which comprises more daunting. Rapidly expanding just over 10% of the total population of cities require new infrastructure Thailand, accounts for more than 40% of and communications—including power, the country’s gross domestic product.6 water, roads, and commercial and productive facilities—more urgently It is relatively small cities than cities during the fi rst wave of that will absorb the bulk of urbanisation did. Economies must be urban population growth in competitive in terms of infrastructure and technology if they are to succeed in the foreseeable future. the globalised world of the 21st century. The second wave of urbanisation is Cities are key to globalisation, a state also differentiated by the diminished of interconnectedness around the globe role of international migration that, in that transcends and, for many purposes, the fi rst wave, had relieved the pressure largely ignores national boundaries. on cities in the developing countries. The shrinking of the globe through the Contemporary urbanisation, this time continuing technological revolution in less developed countries, is driven makes it possible for business enterprises primarily by natural increase and rural- to utilise services from anywhere in to-urban migration. the world. Global urban economies rely on advanced knowledge-based services, CITIES AS CENTRES OF ECONOMIC such as fi nance, insurance, management AND POPULATION GROWTH consultancy, education, media and No country in the modern era has advertising. achieved signifi cant economic growth The cities of Southeast Asia are without urbanisation. Southeast Asian increasingly providing customer services cities are playing an ever-increasing role at competitive rates by drawing on a in creating wealth, attracting investment, large and increasingly more educated enhancing social development, and and relatively low-cost labour force.

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Three notable examples of hubs of is these relatively small cities that will global activity for specialised services in absorb the bulk of urban population Southeast Asia are Singapore, which has growth in the foreseeable future. The a major role as an international fi nance relatively smaller cities are gaining ever centre, and as sea and air transport more prominence, especially those in hubs; Bangkok, which hosts many the Philippines and Indonesia. regional headquarters for corporations Infrastructure investments in and international agencies; and Kuala urban areas can be cost-effective. Lumpur, which has a multimedia super- The concentration of population and corridor, with Cyberjaya and Technology enterprises in urban areas greatly Park Malaysia forming its nuclei. reduces the unit cost of piped water, Huge, sprawling conurbations— sewers, drains, roads, electricity, garbage megacities and metacities (cities with collection, transport, healthcare and more than 20 million inhabitants)—have schools. However, the cost-effectiveness changed the dynamics of urbanisation of such investments is reduced when and the urban economy. People active they are made too late. For instance, in both the formal and informal sectors when informal settlements or slums are commute long distances to work, to allowed to proliferate, it becomes more and from densely populated outlying diffi cult and more expensive to install towns or suburbs. In cities such as infrastructure and services because no Jakarta, Bangkok and Manila, and even prior provision has been made for the in the craft and industry villages in settlement’s development. Moreover, Vietnam’s Red River Delta, the economic population densities and the spatial base spreads outwards along urban confi guration of slums often do not corridors to peri-urban localities that allow for the subsequent development are cheaper and less strictly regulated. of roads, sewerage systems and other Secondary cities and city systems, often facilities that are easy to install in less located along these corridors, become dense and better-planned localities. interconnected through manufacture and ancillary business enterprises.7 INCREASED HUMAN DEVELOPMENT Despite the prominence given to AMONG CITY POPULATIONS large cities, more than 53% of the The concept of cities as islands of world’s urban population lives in cities privilege and opportunity is supported of fewer than 500,000 inhabitants, and by indicators on health, education and 60% in cities of less than 1 million.5 It income, which generally refl ect better

ETHOS | World Cities Summit Issue | JUNE 2008 92 Human Development and Urbanisation | Richard Leete outcomes in urban areas as compared UN-Habitat’s State of the World’s Cities with rural areas. However, with increased 2006/7 Report6 notes that it is generally globalisation, the urban transition is assumed that urban populations are widening gaps between social groups healthier, more literate, and more and is making inequality more visible. prosperous than rural populations, but Large cities generate creativity and in fact the urban poor suffer from ‘an solidarity, but also make confl icts more urban penalty’: urban slum dwellers in acute. developing countries are as badly off, if Severe inequalities within cities not worse off than their rural relatives.8 are exacerbated by political and social Some slums are much worse than exclusion. One reality of a rapidly others. urbanising world is the rise in relative poverty in cities brought about by Large cities generate creativity large differentials in income and and solidarity, but also make consumption between the haves and the have-nots. National statistics confl icts more acute. tend to underestimate levels of urban poverty, which is often relative However, slums in Southeast Asian rather than absolute. Moreover, the cities are less deprived, with only 26% of measurement of poverty in both rural the slum populations living in conditions and urban areas is generally based on of extreme shelter deprivation.6 Indeed, income, which does not necessarily the proportion of slum dwellers in provide an accurate picture of the Southeast Asian cities has itself declined scale and multidimensional nature of in recent years. poverty. One view is that urban poverty For example, Thailand has not is a transient phenomenon of rural-to- only managed to reduce slum growth urban migration and will disappear as in the last 15 years but has made cities develop, thus absorbing the poor considerable investment in improving into the mainstream of urban society. its slums through specifi c upgrading and This view is refl ected in most national prevention policies. The Philippines and poverty reduction strategies, which tend Indonesia have managed to prevent slum to be rural-focused with the result that formation by anticipating and planning interventions have had limited effect in for growing urban populations. They reducing relative poverty, exclusion and have done this by expanding economic inequality in cities. and employment opportunities for

ETHOS | World Cities Summit Issue | JUNE 2008 Human Development and Urbanisation | Richard Leete 93 the urban poor, investing in low- ACHIEVING THE MILLENNIUM cost, affordable housing for the most DEVELOPMENT GOALS IN CITIES vulnerable groups, and instituting pro- Although cash income is more important poor reforms and policies that have had in cities than in villages, income poverty a positive impact on low-income people’s is only one aspect of urban poverty. The access to services. Similarly, in Bandar other indicators of poverty are poor Seri Begawan, Brunei Darussalam, most health and lack of education, poor houses have access to piped water and quality and overcrowded shelter, and electricity supplied by public utilities. lack of public services such as piped water, sanitation facilities, and garbage As countries become more urban, collection, as well as insecure land levels of human development tend to tenure. rise. This phenomenon is clearly visible Water, for example, is a scarce for the countries of Southeast Asia and expensive resource for the urban (Figure 2). For example, Malaysia and the poor.11 It is obtained in small quantities Philippines, where urbanisation levels from street vendors, which entails have reached 67% and 63% respectively, higher unit costs than those incurred have attained or are close to attaining by people who have running water in high human development. By contrast, their homes. If there is piped supply, Cambodia and Laos, where urbanisation obtaining it may involve long journeys is just 20%, are a little above low human to the neighbourhood standpipe development.9 (commonly by women and girls), long waits, tiring trips back home with full containers, careful storage to minimise wastage, and reuse of the water several times, increasing the risk of contamination. As levels of urbanisation rise and the benefi ts of modernisation spread, gender gaps tend to diminish. Thus, in the most urbanised Southeast

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Asian countries, the ratio of girls’ to child mortality levels are lowest (Figure boys’ enrolments in secondary school 3). This is because access to health is at, and even above, parity. However, services, including clinics and hospitals, where urbanisation has made limited as well as the quality of care, tends to be progress, such as in Cambodia and superior in urban areas. Laos, the proportion of girls’ enrolments in secondary school is much lower than that of boys. Accessing healthcare, especially reproductive healthcare, is critical for women, not only because of their reproductive function and that they are disproportionately burdened with providing care for the elderly and the sick, but also because they do more to relieve poverty at the community PARTICIPATORY level. Not all urban women have equal URBAN GOVERNANCE access to reproductive healthcare or Urbanisation offers significant contraceptive services. For poor women, opportunities to improve human lack of time, money and freedom to development and achieve the MDGs. make household decisions, can negate Yet, the rapid and often unplanned these advantages of urban location. growth of developing world cities of all In Southeast Asia, for example, the sizes poses great challenges for attaining estimated unmet contraceptive need is human development goals: these cities 23% among the urban poor, compared to must expand the provision of essential only 16% among the urban non-poor.1 infrastructure and services while But, in general, urban populations ensuring that such expansion does not tend to have better health outcomes than compromise existing living conditions their rural counterparts. In countries or generate more air pollution. where urbanisation levels are highest,

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For example, in Southeast Asian How can cities best respond to the cities such as Bangkok, Kuala Lumpur, inevitability of growing populations Manila and Jakarta, growth of urban and growing affl uence? Improved urban traffi c is creating serious levels of governance will need to provide a large congestion and unprecedented levels part of the answer.14 “Urban governance” of carbon emissions and pollution. denotes both government responsibility Growing affl uence has led to a high and civic engagement. Generally, it refers concentration of vehicles in Malaysian to the processes by which local urban cities, especially Kuala Lumpur. This has governments—in partnership with other resulted in carbon emissions increasing public agencies and different segments of by 221% from 1990 to 2004, the highest civil society—respond effectively to local rate of increase among the world’s top needs in a participatory, transparent polluters.13 Some cities have implemented and accountable manner. As urban urban planning and greening policies growth continues, cities need long-term aimed at signifi cantly reducing private strategies for expected change. The motorised transport and consequently planning horizons of good governance air pollution. must extend beyond current needs. Other countries have implemented In many developing countries, major, long-term slum upgrading national governments are devolving programmes. For example, Thailand has some of their powers and revenue-raising focused almost 30 years of attention on authority to local governments. This low-income housing. Most recently, the construction of 1 million low-income opens up new opportunities for local houses in partnership with commercial governments to take a more active role and public banks, has helped to cut in social and economic development. the slum growth rate by an average Attention to human rights and the rise of nearly 20% a year since 1990.6 In of civil society, along with movements 1992, the Thai government created the towards democratisation and political Urban Community Development Offi ce pluralism, have also given local- (UCDO), the largest community-driven level institutions more responsibility. programme for assisting the urban poor In Indonesia, decentralisation laws, in the developing world. UCDO extends approved in 1999 and amended in 2004, loans, grants and technical assistance assign local governments responsibilities to community organisations and for most public functions including encourages collective bargaining with service delivery. These reforms promote city and provincial authorities. the development of a clear mandate for

ETHOS | World Cities Summit Issue | JUNE 2008 96 Human Development and Urbanisation | Richard Leete the funding and delivery of education, of good governance, including upholding health services, and public works.15 the rule of law; promoting human Trends supporting localisation rights; and transparent, participatory, and decentralisation are signifi cant and accountable decision-making because a large proportion of processes. It also requires pro-poor and urban demographic growth is gender sensitive policies to narrow rich- occurring in small cities of less poor disparities. than 1 million inhabitants. Local governments have the advantage of fl exibility in “Urban governance” refers to the making decisions on critical processes by which local urban issues such as land use, governments—in partnership with infrastructure and services, other public agencies and different and are more amenable to segments of civil society—respond popular participation and effectively to local needs in a political oversight. However, participatory, transparent and they need signifi cant support accountable manner. from both the public and private sectors as they tend to be under-resourced, under- fi nanced, and lack critical information City growth provides opportunities and the technical capability to utilise it. for modernisation and cultural enrichment, and accelerates social CONCLUSION change. Rapidly growing cities, Continued sustained growth of the especially the larger ones, will include Southeast Asian economies and structural various generations of migrants, changes in the patterns of employment, each with a diversity of social and from agriculture to modern sectors, cultural backgrounds. In a diverse will inevitably lead to higher levels of global network of vibrant cities, there urbanisation. Further progress towards needs to be continual adjustment and the achievement of the MDGs and high adaptation to the mix of traditional human development will require a values and contemporary perspectives stronger commitment to the principles of communities and governments.

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Richard Leete is Director and Head of the 8. A slum household comprises a group of individuals living under the same roof in an urban area who lack one Department of Social Affairs of the General or more of the following: durable housing; suffi cient living Secretariat for Development, Government of area, access to improved water, access to sanitation, and secure tenure. As the focus of poverty shifts from rural Qatar. Dr Leete was formerly the Resident areas to urban centres, the world’s one billion slum dwellers are more likely to die earlier, experience more hunger and Representative of the United Nations disease, and attain less education and have fewer chances Development Programme for Malaysia, of employment than urban residents outside slums. 9. The Human Development Index (HDI) is a composite of Singapore and Brunei Darussalam, a position three measurable dimensions of human development, viz. he held from October 2003 to April 2008, (i) to have the capacity to live a long and healthy life; (ii) to be educated and knowledgeable; and (iii) to have access to during which he concurrently served as the assets, decent employment and income. Resident Co-ordinator for the United Nations’ 10. UNDP (2007) Human Development Report 2007/2008: Fighting Climate Change: Human solidarity in a divided world, Operational Activities for Development in New York. Malaysia, as well as UNFPA Representative. 11. UNDP, Human Development Report 2006: Beyond Scarcity: Power, Poverty and the Global Water Crisis (New In June 2007, he was awarded the Darjah York, Palgrave Macmillan, 2006). Kebesaran Panglima Jasa Negara (PJN) 12. http://unstats.un.org/unsd/databases.htm (Honorary) that carries the title “Datuk”. 13. UNFPA, State of World Population 2007: Unleashing the Potential for Urban Growth, Appendix Table 1.1 (New York: United Nations Population Fund, 2007), p69. 14. United Nations Millennium Project, Investing in Development: NOTES A Practical Plan to Achieve the Millennium Development Goals (London and Sterling: Earthscan, 2005). 1. UNFPA, State of World Population 2007: Unleashing the Potential for Urban Growth (New York: United Nations 15. Asian Development Bank, Annual Report 2005 (Philippines: Population Fund, 2007). Asian Development Bank, 2005). 2. Brunei Darussalam: Millennium Development Goals and Beyond (Brunei Darussalam: Brunei Darussalam Department of Economic Planning and Development and UNDP, 2005). 3. Malaysia: Achieving the Millennium Development Goals: Successes and Challenges (Kuala Lumpur, Malaysia: Malaysian Economic Planning Unit and United Nations Country Team Malaysia, 2005). 4. Human development is the conceptual approach to development that goes beyond income. Conceptualised by the United Nations Development Programme, human development is a process of increasing people’s capabilities and widening choices. The ultimate aim is the realisation of human rights and human freedom. 5. United Nations, Department of Economic and Social Affairs, Population Division, World Urbanization Prospects: The 2005 Revision (New York: United Nations, 2006). 6. UN-Habitat, State of the World’s Cities 2006/7: the Millennium Goals and Urban Sustainability (London: United Nations Human Settlements Programme, Earthscan, 2006). 7. Leete, R., Malaysia: From Kampung to Twin Towers: 50 Years of Economic and Social Development (Selangor, Malaysia: Oxford Fajah, 2007).

ETHOS | World Cities Summit Issue | JUNE 2008 98 Diversity through Migration | Philippe Legrain

Opinion Philippe Legrain Diversity through Migration

ities have always been at the NODES OF NEW IDEAS forefront of economic and Cities are often analysed through C cultural progress: they are the lens of trade, where their role as laboratories of innovation, hotbeds marketplaces for products from near of enterprise, and forums of mutual and far is emphasised. While the exchange. The close proximity of a large role of cities as trading entrepôts is variety of other people lies at the heart vital—think of London or Singapore—it of their success. Dynamic cities attract can be misconceived that cities live go-getting people from far and wide off the profi ts of other lands. In fact, who together come up with new ideas, cities do not just create value through start new businesses and create new mutual exchange; they also foster high- forms of cultural expression that enrich productivity activities. While cities do lives. It is that combination of individual not produce food, and are not necessarily self-selection and collective interaction central to manufacturing, they are the that makes cities great, especially when birthplace of most new ideas and creative those who are attracted to a city are services. Thus cities are both production becoming incredibly diverse. Nearly centres and trading hubs, and their half of New Yorkers, who come from outputs, specifi cally knowledge and its over 180 different countries, speak a application, are particularly valuable. language other than English at home. In Contrary to the notion that cities remove the London Olympics of 2012, as in the value from rural areas, they are nodes Sydney Games of 2000, there will be a that spread new ideas and prosperity. local community cheering for nearly The richness of cities does not derive every national team competing. In our solely from their location, but also grows increasingly globalised world, a growing from the interaction of the diverse number of cosmopolitan cities capture people who live there. Cities are central the whole world in one place. to economic growth in the way they attract and breed success. This is fuelled

ETHOS | World Cities Summit Issue | JUNE 2008 Diversity through Migration | Philippe Legrain 99 by migration to cities, and in turn or on second-order effects, such as how stimulates further migration. In effect, to foster increased trade with countries prosperity in the 21st century derives with which the diverse population from the convergence of a diversity have cultural ties. The main economic of talented people in cities. Creative impact of spurring productivity- people are drawn to cities like London enhancing innovation is often ignored. and New York because they are exciting and cosmopolitan. According to Richard VALUE OF DIVERSITY Florida in The Rise of the Creative Class, Migrants are a ready source of brilliant “Regional economic growth is powered new ideas. Instead of following by creative people, who prefer places conventional wisdom, they tend to see that are diverse, tolerant and open to things differently, and as outsiders, are new ideas”.1 more determined to succeed. A third of the US’ recent Nobel laureates in physics are foreign-born. The contribution The richness of cities does not of migrants is vast, yet inherently derive solely from their location, unpredictable. When Sergey Brin but also grows from arrived in the US as a refugee from the the interaction of the diverse Soviet Union at age six, nobody could people who live there. have guessed that he would go on to co-found Google. Had he been denied Conventional economics makes entry, Google would not exist today; and little allowance for this. Many economic America and the world would not have models take no account of location; realised the opportunity that had been most derive collective outcomes from missed. Through strict immigration aggregating individual attributes which policies, governments have doubtlessly in effect ignore the huge gains from turned away many potential Brins, not dynamic interactions among diverse to mention deter ambitious individuals people. Mainstream economists attribute from moving at all. the vast majority of productivity growth The collective diversity of migrants to a black box called technological is also vital. Most innovation comes change, which they do little to explain. from groups of talented people sparking As a result, policymakers underestimate off each other—and foreigners with the economic value of diversity, and different ideas, perspectives and focus instead on its cultural benefi ts, experiences add something extra to the

ETHOS | World Cities Summit Issue | JUNE 2008 100 Diversity through Migration | Philippe Legrain mix. A growing volume of research has into contact with persons dissimilar to shown that collective wisdom is a source themselves, and with modes of thought of new ideas. If there are 10 people trying and action unlike those with which to come up with a solution to a problem they are familiar… it is indispensable and they all think alike, those 10 heads to be perpetually comparing [one’s] are no better than one. But if they all own notions and customs with the think differently, then by bouncing experience and example of persons in ideas off one another, they can solve different circumstances… there is no problems better and faster. Just look at nation which does not need to borrow Silicon Valley: Google, Yahoo! and eBay from others.”3 were all co-founded by migrants who arrived in America not as graduates, Most innovation comes from but as children. Nearly half of America’s groups of talented people venture-capital-funded start-ups have sparking off each other—and migrant co-founders. foreigners with different ideas, The value of diversity does not perspectives and experiences apply only in high-tech industries; an add something extra to the mix. ever-increasing share of our prosperity comes from solving problems, such as developing new medicines, computer CONCLUSION games and environmentally-friendly The value of diversity comes into its technologies, designing innovative own in societies that are at the forefront products and policies, and providing of rapid change. When countries are innovative management advice. In fact, technologically backward, they can Scott Page explains in The Difference: How make huge leaps forward simply by the Power of Diversity Creates Better Groups, copying what more advanced economies Firms, and Schools2 that a diverse team of are doing. They may benefi t from talented individuals is actually better at being culturally uniform, since this solving problems than a group of like- makes it easier for everyone to move minded geniuses. forward in unison. Likewise, in periods As John Stuart Mill rightly wrote this when economic change is slow, more in 1848 in Principles of Political Economy: homogeneous companies and countries “It is hardly possible to overrate the may fi nd it easier to organise themselves value, for the improvement of human effi ciently than more heterogeneous beings, of things which bring them ones.

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But in advanced economies during NOTES 1. Florida, Richard, The Rise of the Creative Class (New York: periods of rapid economic change such Basic Books, 2002). as we are experiencing now, diversity 2. Page, Scott E., The Difference: How the Power of Diversity Creates Better Groups, Firms, Schools, and Societies (New is vital because of the creativity that Jersey: Princeton University Press, 2007). is generated—and the benefi ts of the 3. Mill, John Stuart, Principles of Political Economy (New York: Prometheus Books, 2004). creativity that it stimulates are mostly FURTHER READING generated in cosmopolitan cities where Legrain, Philippe, Immigrants: Your Country Needs Them different people interact everyday. (London, UK: Little, Brown, 2007). The benefi ts of migration and diversity are signifi cant. Ultimately, they are key factors of why cities are a catalyst for innovation and are so economically successful. Thus, countries—and cities—that do not attract newcomers increasingly risk falling behind. Their priority should be nurturing diversity, not trying to stifl e it.

Philippe Legrain is a visiting fellow at the London School of Economics’ European Institute. His research interests are globalisation, migration and European issues. Previously special adviser to World Trade Organisation’s director-general Mike Moore and trade and economics correspondent for The Economist, Mr Legrain has written for publications, such as the Financial Times, the Guardian, the Wall Street Journal Europe and Foreign Policy. His latest book, Immigrants: Your Country Needs Them, was shortlisted for the 2007 Financial Times Goldman Sachs Business Book of the Year Award.

ETHOS | World Cities Summit Issue | JUNE 2008 102 Cities, Culture and Happiness | Bruno S. Frey

Bruno S. Frey Cities, Culture and Happiness

The arts as a means to enhance individual well-being can have an impact on how culture should be encouraged by policy.

CITIES AND CULTURE concentration has been supported by Cultural activities have always been the great increase in megacities (defi ned closely related to urban living. While as those with a population of more than some manifestations of culture, such 10 million people), of which there were as churches or palaces, can be found in only two (London and New York) in rural areas in abundance, most cultural 1950, while in 1994 there were already activities have been undertaken in 22 such cities (of which 16 were in less cities, often in the largest cities of the developed regions). In 1950, about 30% times. They are seen as loci of cultural of the world population lived in urban diversity and inter-culturality, and areas; this share is expected to rise to therefore of cultural creativity. The 60% in 2025.1 concentration of culture in urban areas Culture in the broad sense can be applies to culture understood in a broad defi ned in many different ways. It may, and also in a more narrow sense. This for example, be understood to mean an

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“expansion of human capabilities and of agglomeration consist more in the choice” as defi ned in the UNESCO World economies of scope which large cities Culture Report,2 or as a “common value make possible. The cross-fertilisation of system, viewpoints, conventions, rules, ideas and the creativity produced fi nd ways of life and practices of a certain its most fertile ground in large numbers group of people…”.3 Cities provide an of people with different views, interests intensive communication network for and backgrounds. the meeting of minds; enable easy access In view of these considerations, it is to new technologies and the news media; not surprising that the most important and support creativity by facilitating opera houses are found in major cities, the interaction of people with different often the capital city or the largest city cultural backgrounds and ethnicities. in a country, such as in Paris (Opéra de Culture can also be understood in la Bastille), Vienna (Staatsoper), London a narrower sense, namely as cultural (Covent Garden), Milan (La Scala), New industries comprising entertainment, York (Metropolitan Opera) or Chicago the media, radio, TV, printing and (The Lyric). The same can be observed for publishing, design and advertising. This the theatre and ballet. essay focuses on an even narrower, but Painters, sculptors and writers can generally used, defi nition of culture work in isolated rural areas. Think of as art comprising the performing arts Henry David Thoreau, Emily Dickinson, (theatre, opera, ballet) and the visual Glenn Gould, John Hughes, Thomas arts (painting, sculpture, music and the Pynchon or J. D. Salinger. However, it like).4-15 It seems that the relationship should be noted that they often decide between cities and the arts has been to do that only later in life, after having somewhat neglected in scholarly found their individual style, and after research.16 having established themselves in the A striking economic aspect of the art community which is based in cities. performing arts is the economies of Important art movements such as scale in production and consumption. In impressionism and expressionism have order for a ballet or opera house to be evolved in Paris, and more recent ones profi table, they require large audiences emerged in New York. that are found in large cities. The larger Museums and art galleries are the audience, the lower the total average certainly possible in rural areas but costs per visitor. In other art forms such the advantages of agglomeration are as painting or design, the economies nevertheless strong as the most important

ETHOS | World Cities Summit Issue | JUNE 2008 104 Cities, Culture and Happiness | Bruno S. Frey museums are located in major cities, This close connection between cities for example, the Prado in Madrid, the and culture, the arts more narrowly, has Louvre in Paris, the Kunsthistorisches also been made evident by an initiative Museum in Vienna, the Rijksmuseum in the European Union to name each in Amsterdam, the National Gallery in year a “European City of Culture” which, London, the Metropolitan Museum in interestingly enough, since 1999 has been New York or the J. Paul Getty Museum in renamed “European Capital of Culture”. Los Angeles. This was initiated in 1985 and has since received huge prominence. The fi rst Cities provide an intensive cities to carry the title were Athens communication network for the (1985), Florence (1986), Amsterdam meeting of minds; enable easy (1987), West Berlin (1988) and Paris access to new technologies and the (1989). In the year 2000, no less than news media; and support creativity nine cities were named “European Capitals of Culture”—Reykjavik, by facilitating the interaction of Bergen, Helsinki, Brussels, Prague, people with different cultural Krakow, Santiago de Compostela, backgrounds and ethnicities. Avignon and Bologna. This same idea has been taken up in other For similar reasons, the traditional continents. There are now programmes and the modern media as adduced above naming “American Capitals of Culture” also tend to be concentrated in large as well as “Arab Cultural Capitals”. cities. A study by Stefan Krätke on “Global Obviously, the choices made in Europe Media Cities in a Worldwide Urban and elsewhere have only partially 3 Network” analyses the distribution been based on artistic merit; of great of 33 global media fi rms with 2,766 importance is a politically “fair” enterprise units. The most important distribution over space and countries. media cities in the world turn out to be What matters in our context is that New York, London, Paris, Los Angeles, this programme identifi es cities and Munich, Berlin and Amsterdam; each capitals, with culture as a fundamental of these cities is host to between 64 and consideration. 185 enterprise units and between 18 and 29 global fi rms. This set of major “Global HAPPINESS AND CULTURE Media Cities” is similar to the major For many people, consuming art cities with respect to the performing obviously provides a highly satisfactory arts and museums.

ETHOS | World Cities Summit Issue | JUNE 2008 Cities, Culture and Happiness | Bruno S. Frey 105 experience. This opinion is supported based on surveying 22,000 comparable by the enormous number of people who persons for their entire lives yielding visit museums and, above all, special 125,000 observations. These proceedings exhibitions, and attend the thousands of allowed changes in life circumstances festivals that are held all over the world. and preferences of particular persons It has to be remembered that nobody to be captured over time. To answer the is “forced” to visit such a cultural site question if and to what extent “art makes (except perhaps school children). Rather, people happy”, two survey responses people do it willingly and expect to must be combined. It must measure how receive some pleasure from such an happy people consider themselves while activity. establishing, at the same time, how often they attend cultural activities. Individuals, who consider The survey question with respect to themselves happy, laugh happiness is: “Overall, are you satisfi ed with the life you lead?” The answer to more, have fewer problems this question captures a long-term and and absences from their deep-seated evaluation of one’s well- workplace, are more sociable being, which in scientifi c terminology and more optimistic. is called “subjective, self-reported life satisfaction”.21 It thus differs from a Modern social science can help us to short-term affect. Those indicating “0” on shed light on the relationship between the scale ranging from 0 to 10 consider happiness and the arts due to advances themselves “deeply unhappy”, while in survey research and statistical those indicating “10” are “extremely estimation techniques. In particular, happy”. Most persons are quite satisfi ed it is possible to answer the question to with the life they lead; the average what extent people derive satisfaction person chooses values between 6 and 8. from artistic activities. Over the last few The subjective life satisfaction indicated years, it has become possible to capture by the respondents corresponds well to the subjective well-being of persons in objective observations. Individuals, who a satisfactory way.17-20 One of the ways consider themselves happy, laugh more, is through large scale surveys. In the have fewer problems and absences from following, the German Socio-Economic their workplace, are more sociable and Panel, generally considered to be the best more optimistic, and are less prone to data source in the world, was used. It is attempt suicide.

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The next question captures attendance Figure 1 shows the results of the at cultural activities: “How often do you surveys on life satisfaction and cultural attend cultural activities such as concerts attendance. Persons who attend or theatre performances during your cultural events often are more satisfi ed leisure time?” It was found that almost with the life they lead than those half the respondents (45%) “never” who consume art rarely or never. The attended any cultural activity. Thus, the positive correlation between happiness consumption of culture thus does not and cultural consumption is marked. seem to be very popular in Germany, Those who “never” attended any artistic a country proud to be considered a manifestation have a self-reported life “nation of culture”. This impression is satisfaction of 6.7 (on a scale from 0 to strengthened when taking into account 10). In contrast, those who had attended that 44% of the respondents stated that a cultural event “weekly” reveal a they attend a cultural event “less than happiness level of 7.3, and therefore once a month”. Hence, almost 9 out of 10 indicated that they are much more Germans have little, if any, active contact satisfi ed with the life they lead. with cultural activities. 15% of respondents stated that they visit a cultural occasion “once a month” and a minute 1% stated that they do so “weekly”. These fi gures may well be an over- estimation, as at least some of the respondents tend to state that they attend more cultural events than they actually do so as not to look “uncultured”. These fi gures indicate that “culture” in the sense of attending artistic activities takes place in an Figure 1 also shows the relationship isolated sphere away from the interests between artistic consumption and of the large majority of the population. satisfaction with leisure (instead of, as Great efforts are needed to change this before, with life as a whole). There is again picture.

ETHOS | World Cities Summit Issue | JUNE 2008 Cities, Culture and Happiness | Bruno S. Frey 107 a marked positive correlation between relationship graphically shown in Figure the two. Those who are culturally active 1 is supported: the more artistic events consumers are also those more satisfi ed people attend, the more satisfi ed they with how they spend their leisure time. are with their lives. This positive relationship between DOES CULTURE MAKE PEOPLE HAPPY happiness and culture is good news OR DO HAPPY PERSONS ATTEND MORE for the cultural sector and the CULTURAL EVENTS? cultural industries. However, the It might be argued that the positive causal direction remains open. Does relationship revealed in Figure 1 is due attending more cultural events raise to quite different factors. It could, for life satisfaction, or is the opposite true, instance, be claimed that persons with namely, are happy people more likely to higher income are happier and attend attend cultural events? So far, scientifi c more cultural activities because they research has not been able to answer can more easily afford to do so. Both this question decisively, mostly because statements are indeed in line with the the data available are of insuffi cient results of scientifi c research. Persons quality. Nevertheless, various aspects with higher income more often report strongly suggest both causal directions that they are happy than those with being relevant. Happier persons are lower income. At the same time, it is well- cognitively more open, more inquisitive known that mostly persons with above and socially more active, resulting in average income visit artistic events. more visits to cultural venues catering The argument raised must therefore be to these preferences. At the same time, it is obvious that art can contribute to taken seriously. an individual’s well-being. However, A more thorough analysis considers the effect does not necessarily apply the relationship between artistic to the same extent to all types of art. consumption and happiness using An individual who attends a deeply advanced statistical (or econometric) pessimistic theatrical play, or visits a methods, in particular multiple, museum that shows depressing or even simultaneous regression estimates. distressing paintings is unlikely to The empirical results confi rm that become happier. On the other hand, a art is mostly consumed by persons beautiful play or an attractive show of with above average incomes. Even paintings is likely to raise people’s well- with this fact taken into account, the being.

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POLICY CONCLUSIONS be encouraged by policy. As has been The empirical results have been discussed extensively in the Economics produced with the help of data from of Art, there are many different ways Germany. The situation may be different for the government to support the arts. in other countries. This is certainly true If the state supports the arts through and must be left to future research. direct subsidies, it makes a decision at On the basis of what is known today, it the same time about what kind of art is may, nevertheless, be proposed carefully supported. This would, for example, be that similar relationships pertain to the case if the government subsidises different countries and regions of the or fully fi nances the establishment of world: persons with higher income exert an opera house. In such a case, only a higher demand for culture than do this particular form of art benefi ts. Art people with low income and, at the same can also be supported by granting tax time, people consuming culture tend to reductions to patrons of the arts. In that be more satisfi ed with the life they lead. case, the preferences of the individual supporter, rather than those of the government, are decisive. Countries experiencing successful For example, a wealthy person donates $10 million to establish economic development should take into a museum for impressionist account that their population will exert art. Assuming a marginal an increasing demand for cultural tax rate of 60%, the donation activities in the future. The decisive would cost 40% or $4 million, question is in what way culture should but the donor can nevertheless be encouraged by policy. impose his/her preferences on the museum and benefi t from the social recognition These insights are of immediate that comes with having a museum relevance for policy. Countries named after oneself. While the loss of experiencing successful economic tax income to the state of $6 million development should take into account must be borne by the population as a that their population will exert whole (since the money cannot be used an increasing demand for cultural for other purposes), it has no say with activities in the future. The decisive regard to the funds that are going to the question is in what way culture should museum. Strict regulations concerning

ETHOS | World Cities Summit Issue | JUNE 2008 Cities, Culture and Happiness | Bruno S. Frey 109 tax deductibility can change this bring the substantial share of people who outcome, but has the disadvantage of an admit to “never” or “rarely” attending unfortunate bureaucratic interference. cultural events to start engaging in it. A visionary alternative to direct Even if culture vouchers are passed on, subsidies or tax reductions would be culture is associated with value. This the establishment of a system of culture establishes a benefi cial link between the vouchers. The recipients of these vouchers “culture-absent” part of the population could be anyone, for example, every and the arts. resident of a country or all taxpayers; The various ways of supporting the the total value of these vouchers could arts differ with respect to how they take be freely determined. The recipients into account the increasing demand could use the voucher as if it were cash for artistic events. Culture vouchers to pay for access to art institutions the refl ect most strongly the preferences government deems worthy and puts on of the population, while tax reductions a corresponding list. The venues can do this for a particular group of people, then cash the vouchers they received in general high-income recipients who, at the treasury. As a consequence, the due to their higher marginal tax rates, suppliers of cultural services would have profi t the most. Direct subsidies shift a strong interest to offer art experiences the decision about what form of art is to the population appreciates; in addition, be supported to politicians and public they would be induced to advertise their offi cials. The various forms of public services in an attractive way. In contrast support can well be combined, especially to what many people believe, culture for art forms requiring high set-up costs— vouchers do not necessarily induce for instance, opera houses or museums; suppliers of art to cater to the masses, a part of the total subsidies can be given that is, to produce “popular” art, only. ex ante by a direct subsidy to mitigate They can also offer art forms appreciated the initial fi nancing problems and to by only a minority that is prepared to provide more planning security for the spend a large part of their vouchers on administrators of the cultural venues. these products. One of the strong points The fi nding that the consumption of a voucher system is that the recipients of art raises happiness also has policy of vouchers have a strong incentive to implications. It adds a novel answer to use the vouchers and to attend cultural the question of why government should events rather than to let them go to support culture. Up to now, the literature waste. They serve as a welcome means to on the Economics of Art argued that

ETHOS | World Cities Summit Issue | JUNE 2008 110 Cities, Culture and Happiness | Bruno S. Frey the existence of positive externalities, Professor Frey currently researches in the form of education, existence, economics and psychology, economics of option and bequeath values,8 legitimises art and culture, and political economics. government intervention. Happiness Some of his books include Happiness: A Revolution in Economics (MIT Press, 2008), research points to an additional reason, Economics and Psychology: A Promising namely, that attending cultural events New Cross-Disciplinary Field (MIT Press, increases people’s life satisfaction. 2007), Happiness and Economics (Princeton The consumption of culture is, to a University Press, 2001), Successful considerable degree, an experienced Management by Motivation: Balancing good, i.e., many persons appreciate the Intrinsic and Extrinsic Motivations (Springer, good only after they have consumed 2001), and Arts & Economics: Analysis & it. People are insuffi ciently aware, and Cultural Policy, 2nd ed (Springer, 2004). perhaps some not at all, that culture is a source of happiness.22 This fact NOTES legitimises the support of the arts for 1. Jelin, Elizabeth, “Cities, Culture and Globalization,” in a restricted period of time, until those World Culture Report. Culture, Creativity and Markets (Paris: UNESCO, 1998), pp105-24. induced to visit cultural events have 2. McKinley, Terry, “Measuring the Contribution of Culture to Human Well-Being: Cultural Indicators of Development”, become fully aware of the positive effect in World Culture Report. Culture, Creativity and Markets on their subjective well-being. (Paris: UNESCO, 1998), pp322-32. 3. Krätke, Stefan, “Global Media Cities in a Worldwide This essay demonstrates that cities, Urban Network”, European Planning Studies 11 (2003): 605- 28. culture and happiness are closely 4. This has been the object of the interdisciplinary fi eld of intertwined. It also suggests direct the “Economics of Art” which by now is well established. See monographs in Notes 5 to 10, and the collections of consequences worth considering as an articles in Notes 11 to 15. important element of a visionary public 5. Baumol, William J. and William G. Bowen, Performing Arts—The Economic Dilemma (Cambridge, MA: Twentieth policy. Century Fund, 1966). 6. Peacock, Alan T., Paying the Piper. Culture, Music and Money (Edinburgh: Edinburgh University Press, 1993). 7. Benhamou, Françoise, L’économie de la culture (Paris: La Découverte, 2000). Bruno S. Frey is Professor of Economics 8. Throsby, David, Economics and Culture (Cambridge, UK: at the Institute of Empirical Research in Cambridge University Press, 2001). Economics at the University of Zurich. He 9. Frey, Bruno S. and Werner W. Pommerehne, Muses and Markets: Explorations in the Economics of the Arts (Oxford: is also a Visiting Professor at ETH-Zurich. Blackwell, 1989). Professor Frey co-founded the Centre for 10. Frey, Bruno S., Arts & Economics. Analysis & Cultural Policy, 2nd ed (Berlin, Heidelberg; New York: Springer, 2004). Research in Economics, Management and 11. Peacock, Alan T. ed., Does the Past have a Future?: The Arts (CREMA) in Switzerland, of which he is Political Economy of Heritage (London: Institute of Economic Affairs, 1998). Research Director. A leading researcher and 12. Rizzo, Ilde and Ruth Towse, The Political Economy of thinker in the area of welfare economics, the Heritage: a Case Study of Sicily (Cheltenham, UK and Northampton, MA: Edward Elgar Publishing, 2002).

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13. Ginsburgh, Victor A. and David Throsby, eds., Handbook of the Economics of Art and Culture (Amsterdam: North- Holland, 2006). 14. Towse, Ruth, ed., A Handbook of Cultural Economics (Cheltenham, UK: Edward Elgar Publishing; Northampton, MA: Edward Elgar Publishing, 2003). 15. Hutter, Michael and David Throsby, eds., Beyond Price: Value in Culture, Economics and the Arts (New York: Cambridge University Press, 2008). 16. See example in Krätke (Note 3, p 605): “What has mostly been overlooked (in the literature on cities and culture, BSF), however, is the fact that cities are also places where goods and services are produced for a local and supra-regional cultural market”. 17. Frey, Bruno S. and Alois Stutzer, Happiness and Economics: How the economy and institutions affect human well-being (Princeton: Princeton University Press, 2001). 18. Layard, Richard, Happiness: Lessons from a New Science (New York: Penguin, 2005). 19. Bruni, Luigino and Pier Luigi Porta, eds., Economics & Happiness. Framing the analysis (Oxford: Oxford University Press, 2005). 20. Frey, Bruno S., Happiness: A Revolution in Economics (Cambridge, MA and London: MIT Press, 2008). 21. For simplicity, and in line with the literature, the terms “happiness” and “life satisfaction” are used interchangeably in this paper. However, the reference always corresponds to the longer term and deeper feeling of subjective well-being rather than a short-term affect. 22. Stutzer, Alois and Bruno S. Frey, “What Happiness Research Can Tell Us about Self-Control and Utility Misprediction”, in Frey, Bruno S. and Alois Stutzer, eds., Economics and Psychology (Cambridge, MA and London: MIT Press, 2007): pp169-95.

ETHOS | World Cities Summit Issue | JUNE 2008 Ethos is a biannual publication of the Centre for Governance and Leadership, Civil Service College.

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