Sustainable Urbanization in Asia and Latin America
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SUSTAINABLE URBANIZATION IN AsIA AND LATIN AMERICA ASIAN DEVELOPMENT BANK © 2014 Asian Development Bank and Inter-American Development Bank All rights reserved. Published in 2014. Printed in the Philippines. ISBN 978-92-9254-588-8 (Print), 978-92-9254-589-5 (PDF) Publication Stock No. BKK146703-2 Cataloging-In-Publication Data Asian Development Bank. Inter-American Development Bank Sustainable Urbanization in Asia and Latin America Mandaluyong City, Philippines: Asian Development Bank, 2014. 1. Urban planning. 2. Sustainable development. 3. Asia. 4. Latin America. I. Asian Development Bank. This is a copublication of Asian Development Bank and the Inter-American Development Bank. The views expressed in this book do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or the Inter-American Development Bank (IDB) or their respective Board of Governors or the governments they represent. ADB and IDB do not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB and IDB do not intend to make any judgments as to the legal or other status of any territory or area. ADB and IDB encourage printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB and IDB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB and IDB. Note: In this publication, “$” refers to US dollars. Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 632 4444 Fax +63 2 636 2444 www.adb.org Inter-American Development Bank 1300 New York Avenue, N.W. Washington, D.C. 20577, USA Tel: +202 623-1000 Fax: +202 623-3096 www.iadb.org iii Preface This report on sustainable development of cities in Asia and Latin America is part of the Asian Development Bank (ADB) and Inter-American Development Bank (IDB) joint project on Enhancing Knowledge Sharing and South–South Cooperation between Asia and Latin America. Among other topics where cooperation is explored, urbanization was seen as a key issue because the process is expected to continue for both regions as incomes and economies grow. Urbanization is a result as well as a driver of growth. Opportunities for bettering one’s income and stature tend to be more plentiful in cities, while the concentration of resources and talents in a geographical area allows for higher productivity in the employment of resources. The rush of people and economic activities into cities, combined with the limited capacities and experience of developing country governments, has often been accompanied by negative externalities such as pollution, congestion, slums, and damage to the environment and ecosystems. As the two regions still struggle to deal with the consequences of past and continued urbanization, the question arises: Are there ways of optimizing the benefits of cities, while minimizing or altogether avoiding their negative externalities? In other words: How can sustainable urban development be achieved? Realizing the goal of sustainable living in cities involves understanding and tracing the pathways of resource consumption and waste generation in cities or what is generally termed urban metabolism. The concept of urban metabolism informs how economic activities, urban form, and infrastructure influence the metabolic process of a city. This information will be of immense value to urban planners and policy makers for taking advantage of industrial synergies, planning new infrastructure investments or reconfiguring existing ones, prioritizing institutional investments, etc. Having well-planned and managed cities directly improves the well-being of urban denizens and the environment. But it is also a wise investment from a fiscal point of view in terms of savings on costs related to accidents, health hazards, time resources, and longevity of physical capital investments. This comparative report is but a first step in placing Asian and Latin American cities into such a framework. It is in this context that ADB and IDB are collaborating, to respond to and anticipate their developing member countries’ needs for meeting the challenges of urbanization in a sustainable way. iv Preface That the process of massive urban expansion started and occurred during different periods in Asia and Latin America offers opportunities for each region to learn from the other’s experiences. Latin America is the most urbanized developing region in the world and experienced the fastest expansion from the 1950s to early 2000. Governments in the region have long experience with assisting the urban poor, including through provision of housing and the now widely adopted conditional cash transfer programs. Asia, however, is a late comer—its urbanization started accelerating in the 1980s, and is expected to continue the fast paced expansion well into the next 3 decades. Because Asia is highly populous and has experienced sustained growth for the last 3 decades, its urbanization gave birth to some of the largest and densest cities in the world, supported by massive investments in infrastructure. Historically, urbanization is generally far from being a consciously planned, deliberate, and anticipated process. Rather, governments tend to react and discover accompanying problems when coming face to face with them. But the bright side of the story is that the two regions are home to the most dynamic countries in the world and that will dominate the narrative of growth and development of the recent past and the foreseeable future. This dynamism offers hope for designing solutions because information is now far more readily available than when the high-income countries of today underwent their urbanization processes. The first part of this report introduces motivation for the comparative report. The second part describes the processes of urbanization in Asia and Latin America and the resultant urban forms. Section three analyzes the urban metabolism of cities in the two regions and broadly classifies them based on resource consumption. Section four discusses how infrastructure can influence the metabolic process in cities. Section five discusses the role of governance, and the last section summarizes and concludes with the lessons learned from the two regions. Juzhong Zhuang Jose Juan Ruiz Deputy Chief Economist Chief Economist Economics and Research Department Inter-American Development Bank Asian Development Bank v Acknowledgments The completion of this report was made possible with the help and collaboration of many individuals from various institutions. The direction and guidance provided by the former Chief Economist Changyong Rhee of Asian Development Bank (ADB) and Chief Economist Jose Juan Ruiz of the Inter-American Development Bank (IDB) was instrumental in ensuring that the direction of the report is geared toward operational relevance in serving the knowledge interest of ADB’s client countries and of IDB’s member countries. Representatives from ADB member countries participated in the inception workshop in Manila to share their perspectives and ensure that topics covered in the report reflect their most immediate needs and concerns: B. Mahendra from the Bangalore Metropolitan Region Development Authority, Maria Josefina Faulan and Shiela Gail Satura from the Metropolitan Manila Development Authority, Qiu Aijun from the China Center for Urban Development, Sang-Il Kim from the Urban Information Center of Seoul Institute, Saranat Kanjanavanit of the Green World Foundation based in Bangkok, and Nguyen Trong Hoa and Du Phuoc Tan from the Ho Chi Minh Institute for Development Studies. Toby Melissa Monsod and Rachel Racelis from the University of the Philippines brought the perspectives of an urban economist and an urban planner. This report was prepared by a team comprising Cesar Bouillon and Mariana Racimo from IDB and Douglas Brooks and Eugenia Go from ADB. It benefitted substantially from inputs from a background paper prepared by Paulo Ferrao, André Pina, and Samuel Niza on the urban material flows of six Asian cities and from five background papers for Latin American cities: The report for Caracas was prepared by Roger Martinez (research leader), Marina Fernández, Federico Ortega, and Angélica Schaper from Universidad Simón Bolívar and Universidad Central de Venezuela; the report for Mexico City, Cuernavaca, Toluca, and Pachuca was prepared by Marisol Ugalde Monzalvo (research leader), Miguel Ángel Gómez Albores, and Víctor Katsumi Yamaguchi Llanes in Tecnologico de Monterrey; the report for Medellin was prepared by Francesco M. Orsini (research leader), Monica Ospina, Santiago Leyva, Nora Cadavid, and Juan P. Ospina from Centro de Estudios Urbanos vi Acknowledgments y Ambientales Escuela de Administración, Finanzas y Tecnología at the Escuela de Administración, Finanzas, y Tecnología (URBAM–EAFIT); the report for Rio de Janeiro was prepared by Jose A Gemal (research leader), Rogerio Valle, Ricardo Pontual, Marcello Guerreiro, and Eduardo Infante from the Laboratório de Sistemas Avançados de Gestão da Produção, Coppe, (COPPE–SAGE), Universidad Federal de Rio Janiero; the report for Santiago de Chile and Valparaiso was prepared by Roberto Moris (research leader), Arturo Orellana, Marcelo Miranda, Luis Fuentes, Horacio Gilabert, Carmen G.