Partnerships for the Sustainable Development of Cities in the APEC Region Editors Brian H Roberts, Michael Lindfield, Florian Steinberg

Contributors Dr John Abbott, Michelle Addison, Marcela Allue, Dr Jun-Ski Bae, Dr Miree Byun, Dr Wei-Bin Chen, Holly Xueyao Duan, Theresa Esteban, Dr Shu-Li Huang, Soo-Hyun Kim, Dr Inhee Kim, Dr Mook Han Kim, Juana Kuramoto, Alain Maulion, Richard McAlary, Wahyu Mulyana, Dr Hitomi Nakanishi, Dr Aijun Qui, Fernando Ramirez, Simone Roberts, Dr Wicakson Sarossa, Dr Hisashi Shibata, Jose Tomas Videla, Dr Chang Yi.

The views expressed in this publication are those of the authors and do not necessarily represent those of APEC member economies, APEC Secretariat, or the Cities Alliance. This publication is based on the APEC Policy Support Unit report on Partnerships for the Sustainable Development of Cities in the APEC Region, Publication Number APEC#214-SE-01.22. Reproduced with permission of the APEC Secretariat, Singapore. It was originally published online in June 2017 at: http://publications.apec.org/publication-detail.php?pub_id=1866.

Published by Asia-Pacific Economic Cooperation Policy Support Unit Asia-Pacific Economic Cooperation Secretariat 35 Heng Mui Keng Terrace Singapore 119616 Telephone: +65 6891 9600 Email: [email protected]

Cities Alliance Rue Royale 94, 3rd Floor Philanthropy House 1000 Brussels, Belgium Telephone: +32 2 880 40 88 Email: [email protected] ii Partnerships for the Sustainable Development of Cities in the APEC Region TABLE OF CONTENTS

ABOUT THE CONTRIBUTORS...... xii 2.5 Social Integration ACKNOWLEDGEMENTS...... xiv and Multiculturalism ...... 44 PREFACE...... xv 2.6 Urban Governance ...... 46 KEY FINDINGS AND RECOMMENDATIONS...... xvi 2.7 Partnerships for Sustainable Development ...... 49 EXECUTIVE SUMMARY...... xviii 2.8 Examples of Best Practice Partnerships ...... 52 1. NEW AGENDA FOR SUSTAINABLE 2.9 Conclusions ...... 54 DEVELOPMENT OF APEC CITIES...... 2 Brian H. Roberts, Michael Lindfield 3. BANDUNG, INDONESIA...... 56 and Florian Steinberg Wicaksono Sarosa, Wahyu Mulyana 1.1 Urbanization in the Regional Context ..... 4 and Brian H. Roberts 1.2 A Region with More, Bigger 3.1 Introduction...... 57 and Greying Cities...... 7 3.2 Economic Dynamics...... 59 1.3 Cities are the Region’s Drivers of Economic Growth and Prosperity...... 10 3.3 Strategic Infrastructure and Assets...... 67 1.4 Challenges Facing the Future 3.4 Social and Environmental Systems Development of APEC Cities ...... 11 and Sustainability...... 71 1.5 The New Economic Geography 3.5 Urban Governance...... 73 of Cities in the Region...... 12 3.6 Partnerships for Sustainable 1.6 Changes in the Typology of Cities ...... 14 Development...... 77 1.7 The Sustainable City Debate...... 15 3.7 Conclusions ...... 79 1.8 Defining Sustainable Cities ...... 17 4. BANGKOK-PHNOM PENH-HO 1.9 A Framework for Sustainable City Development...... 17 CHI MINH CORRIDOR, GREATER MEKONG SUB-REGION...... 80 1.10 Challenges to Achieving Sustainable Urban Development in the Region ...... 19 Alain Maulion, Florian Steinberg and Michael Lindfield 1.11 A New Sustainability Agenda for Cities in the Region...... 23 4.1 Introduction...... 81 1.12 New Models for Urban Governance 4.2 Major Corridor Cities...... 84 in Sustainable City Development...... 24 4.3 Intermediate Corridor Towns...... 94 1.13 Focus and Purpose of the Book ...... 28 4.4 Corridor Development Governance...... 97 1.14 Building Momentum for an APEC 4.5 Conclusions...... 98 Asia-Pacific Partnership for Urbanization and Sustainable City Development...... 31 5. GREATER BRISBANE REGION, AUSTRALIA...... 100 2. AUCKLAND, NEW ZEALAND...... 32 Brian H. Roberts, John Abbott Brian H. Roberts and Michelle Addison and Simone E. Roberts 5.1 Introduction...... 101 2.1 Introduction...... 33 5.2 Economic Environment...... 103 2.2 The Economy...... 34 5.3 Social and Environmental 2.3 Strategic Infrastructure Sustainability...... 111 And Assets...... 40 5.4 Effectiveness of Governance...... 113 2.4 Environmental Systems 5.5 Challenges to Sustainable and Sustainability...... 43 Development ...... 116

Introduction iii 5.6 Good Practice Partnerships 9. METRO MANILA, PHILIPPINES...... 178 for Sustainable Development...... 117 Theresa Audrey O. Esteban and Michael Lindfield 5.7 Conclusions...... 122 9.1 Introduction...... 179 6. JING-JIN-JI REGION, PEOPLE’S 9.2 Economic Environment...... 180 REPUBLIC OF CHINA...... 124 9.3 Strategic Infrastructure ...... 186 Michael Lindfield, Xueyao Duan 9.4 Social Environment...... 190 and Aijun Qiu 9.5 Effectiveness of Urban 6.1 Introduction ...... 125 Governance ...... 195 6.2 Economic Environment...... 128 9.6 Partnerships for Sustainable Development ...... 196 6.3 Innovation, Creativity and Business Entrepreneurship ...... 131 9.7 Conclusions...... 199 6.4 Strategic Infrastructure ...... 132 10. MEXICO CITY, MEXICO...... 200 6.5 Social and Environmental Sustainability ...... 135 Fernando Ramirez and Florian Steinberg 6.6 Effectiveness of Urban 10.1 Introduction...... 201 Governance ...... 137 10.2 Economic Environment...... 203 6.7 Partnerships for Sustainable 10.3 Strategic Infrastructure...... 212 Development ...... 139 10.4 Social and Environmental 6.8 Conclusions...... 140 Sustainability...... 214 10.5 Urban Governance ...... 215 7. KITAKYUSHU CITY, JAPAN...... 142 10.6 Good Practice for Sustainable Hitomi Nakanishi and Hisashi Shibata Development ...... 216 7.1 Introduction...... 143 10.7 Potential APEC Partnerships ...... 218 7.2 Economic Dynamics...... 145 10.8 Conclusions...... 219 7.3 Strategic Infrastructure and Assets...... 147 7.4 Social and Environmental Systems 11. RIVER DELTA SUPRACITY, and Sustainability...... 149 PEOPLE’S REPUBLIC OF CHINA...... 220 7.5 Urban Governance ...... 154 Michael Lindfield, Xueyao Duan and Aijun Qiu 7.6 Partnerships for Sustainable 11.1 Introduction...... 221 Development ...... 156 11.2 Economic Environment...... 223 7.7 Conclusions ...... 157 11.3 Strategic Infrastructure ...... 231 8. LIMA, PERU...... 158 11.4 Social Sustainability...... 235 Florian Steinberg and Juana Kuramoto 11.5 Environmental Sustainability: Policies and Measures...... 236 8.1 Introduction ...... 159 11.6 Effectiveness of Urban Governance ...... 237 8.2 Economic Environment...... 161 11.7 Partnerships for Sustainable 8.3 Strategic Infrastructure ...... 169 Development ...... 238 8.4 Social and Environmental 11.8 Conclusions...... 241 Sustainability...... 174 8.5 Effectiveness of Urban Governance...... 175 12. SANTIAGO, CHILE...... 242 8.6 Sustainable Development Florian Steinberg, Marcela Allué Partnerships ...... 176 and Jose Tomás Videla 8.7 Potential APEC partnerships ...... 176 12.1 Introduction...... 243 8.8 Conclusions ...... 177 12.2 The City in Context ...... 243

iv Partnerships for the Sustainable Development of Cities in the APEC Region 12.3 Economic Environment...... 245 15. I-5 HIGHWAY CORRIDOR 12.4 Competitiveness of the Economy ...... 247 (SEATTLE–VANCOUVER)...... 322 12.5 Strategic Infrastructure...... 250 Richard McAlary

12.6 Social Environment ...... 254 15.1 Introduction...... 323 12.7 Sustainability and Environmental 15.2 Economic Dynamics...... 325 Management ...... 256 15.3 Strategic Infrastructure ...... 332 12.8 Effectiveness of Urban Governance...... 259 15.4 Social and Environmental Sustainability...... 338 12.9 Partnerships for Sustainable Development...... 260 15.5 Urban Governance and Planning ...... 340 12.10 International Partnerships...... 262 15.6 Partnerships for Sustainable Development...... 343 12.11 Potential Partnerships Through APEC...... 262 15.7 Conclusions...... 345 12.12 Conclusions...... 265 16. SUSTAINABLE DEVELOPMENT 346 13. SEOUL, KOREA...... 266 AGENDA FOR APEC CITIES...... Brian Roberts, Michael Lindfield Miree Byun, Chang Yi, Mook Han Kim, and Florian Steinberg Jun Sik Bae and Inhee Kim 16.1 Findings from the Case Studies 13.1 Introduction...... 267 of APEC Cities...... 347 13.2 Population Growth and Economic 16.2 Need for a New Agenda Development...... 268 for APEC Cities...... 353 13.3 Strategic Infrastructure 16.3 Principles Underpinning a and Assets...... 276 Sustainable Development Agenda 13.4 Social Systems and Sustainability...... 281 for APEC Cities...... 354 13.5 Environmental Management 16.4 Five Agendas to Shape Partnerships and Sustainability: for Sustainable Cities...... 355 Policies and Initiative...... 283 16.5 Vision and Agenda for Sustainable 13.6 Urban Governance...... 286 City Development ...... 367 13.7 Partnerships for Sustainable 16.6 Priority Actions for an APEC Cities City Development...... 289 Partnership Initiative ...... 368 13.8 Conclusions...... 299 16.7 Roadmap For APEC Partnerships for Inclusive and Sustainable 14. TAIPEI METROPOLITAN AREA, Growth ...... 370 CHINESE TAIPEI...... 300 16.8 Implementing the Wei-Bin Chen and Brian H. Roberts Sustainable Cities Agenda for the APEC Region...... 371 14.1 Introduction...... 301 16.9 Concluding Remarks ...... 372 14.2 The Economy...... 303 14.3 Strategic Infrastructure 17. NOTES...... 374 and Assets...... 310 14.4 Planning, Environmental and Urban Governance Systems...... 313 14.5 Sustainable Development Initiatives ...... 314 14.7 Metropolitan Partnerships...... 319 14.8 Conclusions...... 321

Introduction v LIST OF TABLES

Table 1.1 Urban Population of APEC Table 3.5 Contribution of Small - and Member Economies, millions, Medium-sized Enterprises 2000–2050...... 5 (SMEs), Bandung...... 64

Table 1.2 Urban Population Growth Rates Table 3.6 Inter-municipality Cooperation, in APEC Member Economies, Bandung...... 65 percentage, 2000–2050...... 6 Table 3.7 International Cooperation, Table 1.3 Population in APEC Member Bandung...... 66 Economies by City Size as a Percentage of the Total Table 3.8 Status of Physical Infrastructure World Urban Population, 2015...... 9 and Assets in Bandung City...... 69

Table 1.4 Potential for Developing Table 3.9 Human Development Index (HDI) Multilevel Partnerships within Cities for Bandung City, 2006–2013...... 71 in APEC...... 26 Table 3.10 Employment Conditions in Table 1.5 Potential for Strategic Bandung City, 2008–2012...... 72 Partnerships between Cities Table 3.11 Employment by Sector of Person in the APEC Region...... 28 Age 10+, Bandung City, 2012...... 72 Table 2.1 Key Economic Facts – Auckland.... 34 Table 3.12 Local Partnerships for Sustainable Table 2.2 Economic Competitiveness Development in Bandung City...... 76 of Auckland, Melbourne Table 3.13 Partnership Opportunities and Sydney, 2013...... 36 for Sustainable Development Table 2.3 Employment by Sector for Auckland in Bandung City...... 77 Subregions, 2010...... 37 Table 4.1 Features of the Southern Economic Table 2.4 Employment Location Quotients Corridor...... 95 (LQs) for Employment Regions, Table 4.2 Key Economic Facts – Bangkok, 2010...... 39 Phnom Penh, Ho Chi Minh City...... 96 Table 2.5 Inventory of Auckland’s Table 5.1 Key Economic Facts – Greater Strategic Assets...... 40 Brisbane...... 103 Table 2.6 Targets for Emissions Reduction, Table 5.2 Structure of the Brisbane Region Auckland City...... 44 Economy, 2000/01–2010/11...... 104 Table 2.7 Population and Ethnic Structure Table 5.3 Employment Trends in Greate of Auckland, 2001–2013...... 45 Brisbane...... 108 Table 2.8 Examples of Partnerships Table 6.1 Annual GDP Growth Rate for Sustainable Development, in the Jing-Jin-Ji Region, percent... 126 Auckland City...... 50 Table 6.2 Official Resident Population Table 3.1 Area, Population and Urban Density of the Jing-Jin-Ji Region, 2012...... 127 for the Bandung Metropolitan Area. 58 Table 6.3 Key Economic Facts – Jing-Jin-Ji Table 3.2 Key Economic Facts – Bandung .... 60 Region, 2013...... 129 Table 3.3 Economic Competitiveness Table 6.4 Key Industrial Sectors in the of Singapore, Jakarta, Surabaya Jing-Jin-Ji Region, 2014...... 129 and Bandung, 2013...... 62 Table 7.1 Main Trading Destinations Table 3.4 Location Quotient (LQ) of Economic of Container Cargo at Hibiki Sectors in Bandung City, Container Terminal, 2014...... 148 2008–2011...... 62

vi Partnerships for the Sustainable Development of Cities in the APEC Region Table 7.2 Employment Trends in Kitakyushu, Table 12.2 GDP by Sector, Santiago by Sector, percent...... 151 Metropolitan Region, 2011...... 246

Table 7.3 Employment Creation in Kitakyushu, Table 12.3 Economic Competitiveness 2008–2011...... 152 of New York, Buenos Aires and Santiago, 2012...... 247 Table 7.4 Evaluation of the Kitakyushu Environmental Model City Table 12.4 Exports by Industry Sector, Basic Plan...... 153 Santiago Metropolitan Region, million USD ...... 248 Table 8.1 Economic Competitiveness of New York and Lima, 2012...... 160 Table 12.5 Value of Exports from the Santiago Metropolitan Region, Table 8.2 Key Economic Facts – Lima...... 161 by Geographical Zone, million USD...... 249 Table 8.3 Clusters in the City of Lima...... 168 Table 12.6 Infrastructure Deficit Projection Table 8.4 Lima’s Required Logistics in Santiago ...... 252 Investment...... 170 Table 12.7 Examples of Sustainable Table 8.5 Lima’s Mega-Projects...... 173 Development Partnerships, Table 9.1 Key Economic Sectors – Santiago Metropolitan Region...... 259 Metro Manila, 2014...... 181 Table 12.8 Sister City Partnerships Table 9.2 Economic Competitiveness for Santiago ...... 261 of New York, Singapore Table 13.1 Estimated Population of Seoul and Manila, 2012...... 183 and the Seoul Metropolitan Area, Table 9.3 Operating Economic Zones 2011–2014...... 268 in the Philippines, 2015...... 186 Table 13.2 Key Economic Facts – Seoul Table 9.4 Employment by Sector, and Seoul Metropolitan Area...... 270 Philippines...... 190 Table 13.3 Number/Share of Establishments Table 10.1 Key Economic Facts – Mexico...... 204 and Annual Growth Rate by Industry, Seoul, 2010 and 2013...... 271 Table 10.2 Employment, Regional Shift and Location Quotient (LQ), by Industry Table 13.4 Exports, Imports and Growth Rates Sector, in the Federal District by Economy, Seoul, 2014...... 272 and the Central Region,2013...... 206 Table 13.5 Industrial Specialization Table 10.3 Economic Competitiveness and Competitiveness by Industry, of New York, Los Angeles Seoul, 2013...... 273 and Mexico City, 2012...... 211 Table 13.6 Applications for Intellectual Table 11.1 Key Economic Facts – Property, Seoul, 2007–2013...... 274 Pearl River Delta, 2013...... 224 Table 13.7 New Business Formations, Table 11.2 Key Industrial Sectors Seoul, 2013...... 275 in the Pearl River Delta, 2014...... 225 Table 13.8 Transportation Mode Share Table 11.3 Total Imports and Exports of Goods in Seoul, percent...... 277 for Hong Kong, China, million USD, Table 13.9 Evaluation Indicators of Seoul’s 2013 ...... 225 Sustainable Development...... 285 Table 11.4 Clusters in the Cities Table 13.10 Examples of Partnerships of the Pearl River Delta ...... 229 for Sustainable Development...... 290 Table 11.5 Key Transport Infrastructure Table 13.11 Resolving Conflicts between Investments in the Pearl River Major Stakeholders of the Delta...... 233 Yonsei-Ro Transit Mall Project, Table 12.1 Key Economic Facts – Santiago..... 245 Seoul...... 292

Introduction vii Table 14.1 Key Economic Facts – Taipei Table 15.2 Metro Labour Force (Non-Farm Metropolitan Area...... 303 Employment), I-5 Corridor, March 2015...... 326 Table 14.2 Output by Industry, Taipei Metropolitan Area, 2014...... 304 Table 15.3 Estimated Gross Metropolitan Product (GMP), I-5 Corridor, 2014.. 326 Table 14.3 Economic Competitiveness of Taipei ...... 305 Table 15.4 Estimated Valuation for Exports, I-5 Corridor, 2014 ...... 327 Table 14.4 Unemployment Rate in the Taipei Metropolitan Area, 1995–2014 ...... 306 Table 15.5 Largest Export Sector by Metro Area, I-5 Corridor, 2014...... 327 Table 14.5 Trends in Average Annual Household Income for the Taipei Metropolitan Table 15.6 Key Economic Facts – United States Area, 2001–2013 ...... 306 and Canada, April 2015...... 328

Table 14.6 Employment Location Quotient (LQ) Table 15.7 Enrolment of Selected Universities for Industry Sectors, Taipei within the I-5 Corridor, Metropolitan Area ...... 307 2014–2015 ...... 330

Table 14.7 Employment by Sector, Taipei Table 15.8 Distance between Downtown Seattle Metropolitan Area ...... 308 and Other I-5 Corridor Cities...... 339

Table 14.8 Sector Missions of the New Taipei Table 16.1 Examples of Development City Sustainable Development Partnerships from the Case Studies Commission...... 317 of APEC Member Economies...... 350

Table 15.1 Population of the Pacific Northwest Metro Area, 2015...... 324

LIST OF FIGURES

Figure 1.1 Asia-Pacific Region and APEC Figure 2.5 Monitoring and Evaluation Framework Member Economies...... 3 of the Auckland Plan...... 48

Figure 1.2 Expected Growth in Cities by Size Figure 2.6 Ten-year Forecast for Assets in APEC Member Economies, and Liabilities, Auckland City...... 49 2015–2025...... 8 Figure 2.7 Auckland’s Formal Partnerships..... 51 Figure 1.3 Emerging Urban Economic Development Corridors HCMC, Figure 3.1 Growth of the Bandung Urban Viet Nam...... 15 Area, 1991–2012...... 59

Figure 1.4 Five Key Transactional Elements Figure 3.2 Economic Structure of Bandung of a Sustainability Framework City, 2008–2012, based on for Cities...... 18 current prices...... 60

Figure 2.1 Breakdown of GDP (percent) Figure 3.3 Export Commodities of Bandung of Auckland’s Economy...... 35 City in 2012, percent...... 61

Figure 2.2 Key Economic Growth Sectors Figure 3.4 Industries and Universities of Auckland Economy, in Bandung...... 63 million NZD, 2010...... 36 Figure 3.5 The Focus on Infrastructure Figure 2.3 Employment Regions in the Development in Bandung’s Medium City of Auckland...... 38 Term Development Plan (RPJMD) 2013–2018...... 69 Figure 2.4 The Influence of Infrastructure in Auckland...... 42 viii Partnerships for the Sustainable Development of Cities in the APEC Region Figure 3.6 Bandung City Vision – City Figure 9.2 Mega Manila Urban Region...... 181 Spatial Plan and Local Development Plans...... 74 Figure 9.3 Philippines Export and Imports...... 182

Figure 3.7 Revenue Projection for Bandung Figure 9.4 Doing Business in the Philippines: City, 2014–2018, in billion IDR...... 75 Major Issues and Barriers...... 184

Figure 4.1 The Southern Economic Corridor Figure 9.5 Business Process Outsourcing (SEC) of the Greater Mekong (BPO) and Information Technology Subregion (GMS)...... 82 (IT), 2004-–2011...... 185

Figure 4.2 Connecting Bangkok, Figure 9.6 Intra-urban Region Inequity Phnom Penh and Ho Chi Minh (Gini Coefficients)...... 192 City – The Southern Economic Figure 9.7 Baseline Greenhouse Gas Corridor (SEC): The Viet Nam Emissions Estimates and Cambodia Connection...... 83 for the Power and Transport Figure 4.3 Bangkok Regional Plan 2057...... 87 Sectors, Philippines...... 194

Figure 5.1 Twelve Local Governments Figure 9.8 Institutional Structure for of the Greater Brisbane or Delivering Urban Development...... 195 Southeast Queensland (SEQ) Figure 9.9 The Triangle Park, Quezon City Region...... 102 (Proposed Plan)...... 196 Figure 5.2 Export Value By Industry, Figure 10.1 Map of the Central Region, Brisbane Local Government Mexico...... 202 Area, 2011–2031...... 105 Figure 10.2 .Breakdown of GDP (%) of Mexico’s Figure 5.3 Map of South East Queensland...... 115 Economy, First Quarter 2015...... 205 Figure 5.4 Australia Trade Coast and its Figure 10.3 Mexico’s Trade, by Region/ 32 Development Precincts...... 118 Economy, 2014...... 208 Figure 6.1 Main Transportation Infrastructure Figure 10.4 Mexico’s Trade with Asia, in Jing-Jin-Ji Region...... 133 by Economy, billion USD, 2014...... 208 Figure 6.2 High-Speed Railway Network in Figure 10.5 Foreign Direct Investment (FDI) Jing-Jin-Ji Region...... 134 Flows into Mexico, by Economy, Figure 7.1 Map of City of Kitakyushu...... 145 billion USD, 2014...... 211

Figure 8.1 Map of Peru...... 162 Figure 10.6 Map of Mexican Road Corridor to the NAFTA Region...... 212 Figure 8.2 The Dominance of Lima in Peru’s Economy, GDP by Region...... 163 Figure 10.7 Map of Mexico City’s Urban Footprint and Its Local Figure 8.3 Production Growth Rates in Peru, Government Boundaries...... 216 by Region...... 163 Figure 11.1 Nine Policy Zones in the Figure 8.4 Economic Activities in Lima, Pearl River Delta...... 222 2012...... 164 Figure 11.2 Hong Kong, China’s Imports Figure 8.5 Traditional Centres of Lima’s by Origin (right) and Domestic Urban Economy...... 166 Exports by Destination (left), 2013...... 226 Figure 8.6 Lima: Local Productive Development Policies...... 166 Figure 11.3 Relocation of Industry from Hong Kong, China...... 227 Figure 8.7 Peru's Logistics Nodes...... 169 Figure 11.4 Cross-Boundary Transportation Figure 8.8 Lima’s Complementary Vital Facilities in the Greater Pearl Corridors...... 171 River Delta City–Region...... 232 Figure 9.1 Map of Metro Manila...... 179

Introduction ix Figure 11.5 Development of the Regional Figure 13.6 Employment and Unemployment Intercity Railway Network, Rates, Korea ...... 281 Guangdong...... 235 Figure 13.7 Percentage of Workers Figure 11.6 Government Structure in the by Industry, Seoul...... 282 Pearl River Delta (PRD)...... 237 Figure 13.8 Plans to Guide Development Figure 11.7 Outbound High-Speed Railways in Seoul...... 288 of the Greater Pearl River Delta Region...... 239 Figure 13.9 Promotion Committee for the Yonsei-ro Transit Mall Project, Figure 11.8 Institutional Arrangements Seoul...... 291 for Railway Development in the Pearl River Delta through Figure 13.10`Energy-Independent Villages Province–Ministry Cooperation...... 240 in Seoul...... 295

Figure 12.1 Map of Santiago Metropolitan Figure 13.11 Power Savings in 2013 and 2012, Region...... 243 Seoul and the Energy-Independent Villages...... 296 Figure 12.2 Regional Metropolitan Highway Network...... 251 Figure 13.12 Establishments in the Manufacturing Industry by Neighbourhood (Dong), Figure 12.3 Infrastructure and Social Seoul, 2011...... 297 Development Needs, Santiago...... 253 Figure 13.13 Trends in Establishments and Figure 12.4 Labour Market Occupied Persons Workers at the Seoul Digital by Occupational Category, Industrial Complex...... 298 Santiago Metropolitan Region...... 254 Figure 14.1 Taipei Metropolitan Region ...... 301 Figure 12.5 Human Development Index of Santiago by Commune Figure 14.2 Population Trends, Taipei (District)...... 255 Metropolitan Area, 1995–2014...... 302

Figure 12.6 Santiago Local Government Figure 14.3 Distribution of Industries, Communes (Districts) ...... 258 Taipei Metropolitan Area...... 308

Figure 12.7 Bi-oceanic Corridors: Pacific–Atlantic Figure 14.4 Taipei Mass Rapid Transit (MRT) Axes in the 1990s...... 263 System, 2017...... 310

Figure 13.1 GRDP of Seoul and the Seoul Figure 14.5 Taipei Riverside Bike Metropolitan Area, million USD, Parkway Map...... 311 2005–2013...... 269 Figure 14.6 Organizational Structure of the Figure 13.2 Proposed Light Rail Lines New Taipei City Sustainable in Seoul...... 278 Development Commission...... 316

Figure 13.3 Nambu Express Line (Proposed).... 279 Figure 15.1 Map of the I-5 Corridor (Seattle–Vancouver)...... 323 Figure 13.4 Shin Bundang Extension Line (Proposed)...... 279 Figure 16.1 Roadmap for Building Better Partnerships for Inclusive Figure 13.5 KTX Extension Line (Proposed)...... 279 and Sustainable Growth of Cities in the APEC Region...... 370

x Partnerships for the Sustainable Development of Cities in the APEC Region LIST OF PHOTOS

Photo 1.1 Expansion of Chinese Cities: Photo 8.1 Larcomar Shopping Mall, Tianjin South...... 7 Miraflores, Lima – A Commercial Highlight...... 159 Photo 1.2 Lights Showing Emerging Corridors of Cities in South America (left) Photo 8.2 San Isidro’s Financial District...... 167 and East Asia (right)...... 9 Photo 9.1 Metro Manila...... 180 Photo 1.3 The Greying of Cities: Hunter’s Point Naval Shipyard Buildings, Photo 10.1 City Centre of Mexico City– San Francisco...... 11 Main Square with City Hall and Cathedral...... 201 Photo 1.4 Slum Settlements: A Major Challenge to Improving Living Conditions Photo 10.2 Reforma Street (left) and Santa Fe in Some APEC Economies...... 19 Business District (right) in Mexico City...... 203 Photo 2.1 Auckland City...... 33 Photo 10.3 Mexico City’s Metro (left) Photo 2.2 Wynyard Quarter Rejuvenation and Metrobus (right)...... 213 Project, Auckland...... 52 Photo 10.4 Suburban Train in Mexico City...... 218 Photo 3.1 Pasupati Bridge, Bandung City...... 57 Photo 11 .1 Macau Central District...... 221 Photo 3.2 Bandung Command Centre...... 68 Photo 12 .1 Sanhattan Business District, Photo 4.1 Bangkok’s Old City Centre ...... 84 Santiago, Chile...... 244

Photo 4.2 Phnom Penh – City Centre near Photo 13.1 Central Seoul...... 267 the Tonle River...... 89 Photo 13.2 High Concentrations of Solar Photo 4.3 Ho Chi Minh City – Central Area..... 91 Power Panels Installed on Homes in Shipjaseong Village...... 294 Photo 5.1 Brisbane Central Business District (CBD)...... 101 Photo 14.1 Taipei: A Metropolitan River City..... 301

Photo 5.2 Port of Brisbane, Brisbane Photo 14.2 Taipei 101 Tower...... 305 Airport and the Australia Trade Coast Area...... 110 Photo 15.1 Seattle Space Needle...... 325

Photo 5.3 Powerhouse Brisbane – From Photo 15.2 False Creek, Vancouver...... 329 Power Station to Arts and Cultural Photo 15.3 Aerial View of Vancouver...... 334 Facility...... 119 Photo 15.4 Ships Awaiting Loading, Photo 7.1 City of Kitakyushu...... 143 English Bay, Vancouver...... 335 Photo 7.2 Overcoming Severe Environmental Photo 15.5 Seatle Waterfront...... 336 Pollution, City of Kitakyushu...... 144 Photo 15.6 Portland Waterfront...... 342 Photo 7.3 Refurbished Wine Bar in Kitakyushu City’s Central Business District (CBD)...... 154

Introduction xi ABOUT THE CONTRIBUTORS Editors Theresa Esteban holds a master’s degree in urban management and development with a specialization Professor Brian H. Roberts is Emeritus Professor in urban governance. She has 17 years’ experience in at the University of Canberra and Director of Urban urban planning and development, and has managed Frontiers and an expert in urban management based projects throughout Asia. in Brisbane, Australia. Dr Shu-Li Huang graduated with a PhD in urban Dr Michael Lindfield is an urban management planning from the University of Pennsylvania and is a specialist and Director of Urban Infrastructure lecturer at the Graduate Institute of Urban Planning at Services, based in Sydney, Australia. National Taipei University.

Dr Florian Steinberg is a senior urban management Soo-Hyun Kim is President of the Seoul Institute and specialist and consultant for development agencies conducts surveys and studies on urban development worldwide, based in Pereira, Colombia. for Seoul.

Authors Dr Inhee Kim has a PhD from the Institute of Urban and Regional Planning at Technische Universität Dr John Abbott holds a PhD in urban and regional Berlin. Dr Kim is Director of the Office of Research planning. He lecturers in urban and regional planning and Coordination at the Seoul Institute. at the University of Queensland and is the Principal of John Abbott Planning. Dr Mook Han Kim holds a PhD in planning and public policy from Rutgers, The State University of Michelle Addison holds qualifications in geographical New Jersey. Dr Kim is a Research Fellow at the Seoul sciences and environmental management from the Institute. Queensland University of Technology and Griffith University. She is Director of Michelle A. Addison Juana Kuramoto Huamán has a background in Consulting. economics and political and public administration from the University of Lima and Carnegie Mellon Marcela Allué holds qualifications in economics and University. She is Director of Policy and Programs for business from Pontificia Universidad Católica de Chile Concytec, which is involved in scientific, technological and Universidad del Desarrollo, Chile. She is General and innovation development in Peru. She is also a Manager of the Asociación de Concesionarios de Research Associate with the Group for the Analysis of Obras de Infraestructura Pública Chile. Development (GRADE) in Peru.

Dr Jun-Ski Bae has a PhD in public economics in the Alain Maulion is an international consultant on defence sector from the University of York. Dr Bae is competitiveness and inclusive growth with experience a Research Fellow at the Seoul Institute. in policy research and development. Geographical areas of focus include cities, towns, community Dr Miree Byun holds a PhD in sociology and is enterprises, industries in the Philippines and the Asia- Director of the Department of Future and Social Pacific. Policy Research at the Seoul Institute. Richard McAlary is an international consultant in Dr Wei-Bin Chen is Assistant Professor at the urban and regional economics. He is Past President Chinese Cultural University and holds a PhD in city of the Association of Professional Economists of and regional planning from the Ohio State University. British Columbia and has published extensively in Holly Xueyao Duan has a master’s degree in his field. He was educated at the University of New urban and regional planning from the University of Brunswick and Carleton University. Sydney. She holds qualifications in environmental Wahyu Mulyana is an urban planner and management and development and forestry development expert specializing in urban economics and management from the Australian development, environmental management, and National University and Beijing Forestry University. strategic planning for local development. He is Executive Director of the Urban and Regional Development Institute (URDI) in Jakarta, Indonesia.

xii Partnerships for the Sustainable Development of Cities in the APEC Region Dr Hitomi Nakanishi holds a doctorate in urban and Dr Hisashi Shibata has a doctorate in engineering regional planning and is Assistant Professor at the from the Tokyo Institute of Technology and is a University of Canberra. She has over 100 publications professor in the Department of Civil Engineering at in the field of planning. Fukuoka University.

Dr Aijun Qui is Deputy Director General of the China José Tomás Videla is an architect and holds Centre for Urban Development (CCUD), National qualifications in sustainability, management and Development and Reform Commission (NDRC). urban and regional planning, with experience in Chile, Spain, Viet Nam, Japan and Australia. Fernando Ramirez is Director of Real Sustainability, an economic consulting firm, and is an advocate of Dr Wicaksono Sarossa is an urban and regional responsible economic development. His experience planner, teacher and consultant. He chairs the includes consulting on urban economics, lecturing at Executive Board of Kemitraan Habitat, Indonesia. Anahuac University, analysing the Mexican financial He was formerly Director of URDI and has sector and serving as policymaker for the Australian worked extensively on urban and regional policy Capital Territory’s Treasury in Canberra. and development studies in Indonesia and other economies in the region. Simone Roberts holds qualifications in community development and urban and regional planning from Dr Chang Yi holds a PhD in urban planning from the the University of Canberra and the University of University of Austin and is an Associate Research Queensland. She is a researcher with Urban Frontiers Fellow at the Seoul Institute. and is currently Social Planning Consultant with Urbis in Brisbane.

Introduction xiii ACKNOWLEDGEMENTS

The editors would like to express their appreciation to The editors are also grateful for the considerable the following for their inputs in preparing the various support given by the APEC Secretariat in Singapore, chapters: Ms Rosalie Roberts of Urban Frontiers; especially Dr Denis Hew Wei Yen, Mr Emmanuel Professor Leslie Chenoweth, Griffith University; A. San Andres, Ms Bernadine Zhang Yuhua and Mr Professor Bob Stimson, University of Melbourne; Mr Carlos Kuriyama. Excellent copyediting was provided Michael Kerry, THG Resource Strategists; Mr Tony by Ms Yen Ong. Duncan, Duncan Planning Consultants; Professor The authors of Chapter 7 wish to thank the City of Harvey C. Perkins, University of Auckland; Mr John Kitakyushu and the Ministry of Economy, Trade and Courtney, China Specialist, Sydney; Mr Richard Industry (METI) of Japan for providing materials and Harris of Jasmax Architects, Auckland and Mr Suparb advice during the preparation of the chapter. Treethanya, Department of Public Works and Town and Country Planning, Thailand.

xiv Partnerships for the Sustainable Development of Cities in the APEC Region PREFACE

Over the past three decades, cities in the Asia-Pacific just local; they involve governments, business and region have experienced unprecedented economic communities working together to overcome common growth and development. Until the global financial problems and issues and to improve service delivery. crisis in 2007, it seemed that nothing could slow The new model of partnership involves various their development. The global financial crisis and the levels of government collaborating domestically slowdown of the Chinese economy, however, has had and internationally through networks, alliances and a profound impact: the region’s cities face a range associations to address the complex sets of problems of challenges related to slower investment growth that are common to many cities, and to foster the and job creation, and an increasing shortage of expansion of knowledge, trade, investment and housing and basic services. Factors such as climate other exchanges that benefit the development of change, security issues, and increasing disparities communities, and especially wealth creation and jobs. between personal and regional wealth, development, and quality of life are also having a big impact on This book explores the ways cities in the region are shaping the agenda for the future development and supporting partnerships for sustainable development. management of cities in the region. It builds on previous APEC work on sustainable urbanization, using 14 case studies to assess The pressures since the global financial crisis economies, infrastructure, social and environmental have given rise to a period of reflection and systems and urban governance. The case studies debate by governments and communities about evaluate cities at secondary city, metropolitan region, the sustainability of urbanization and economic and regional economic trade-corridor levels. development of cities in the region. Fresh approaches are needed to the way cities are managed and The book will contribute to existing knowledge developed to ensure their future prosperity, quality of on ideas and practices that can help build more life and the sustainable use of resources. This calls sustainable cities and economies in the region. It will for governments and cities to work more cooperatively be of interest to community leaders, administrators, and collaboratively in fostering the development of business, and academics. The lessons outlined partnerships for urban governance, trade, investment, will have relevance for governments, other public services delivery, and human capital development, policy organizations and business, for infrastructure and for resolving environmental problems. This is investment, and for managing structural and central to APEC’s agenda for sustainable urbanization technological change, the development of human and the development of cities in the region. capital and fostering improvements in the quality of life. These lessons provide the basis for an action Partnerships involving collaboration is a new business agenda under APEC’s Asia-Pacific Partnership on model for development as we move towards a more urbanization and sustainable cities development. sharing global economy. Such partnerships are not

Introduction xv KEY FINDINGS AND RECOMMENDATIONS

The Asia-Pacific region comprises 46 economies level. These could be significantly enhanced through and has the largest geographic concentration of support by APEC member economies, to the benefit population, wealth and urban settlements on earth. of their economies and that of the region. APEC and The region includes some of the fastest-growing and its Secretariat could support priority partnerships most developed economies and cities in the world. as part of an initiative focused on Building Better Cities in the region constitute around 80 percent Partnerships for Inclusive and Sustainable Urban of economic product in most member economies. Growth of Cities in the Region initiative. This report Unfortunately, the rapid development of the Asia- identifies key areas meriting such priority support: Pacific region has resulted in significant and manifest • Partnerships to Lift Economic Performance growth management challenges for cities across the and Trade: While urban areas and systems economic, social and environmental dimensions of could help lift economic outcomes at the regional sustainability. Overcoming these challenges will be or member-economy level, the city case studies difficult. Given the complexity and scale of many of in this report and the literature have found these challenges, governments and cities will need limited evidence of them doing so. The case to work much more collectively to address them. The studies present good examples of sustainable sustainable development of APEC cities should thus development practices; but very few have been constitute an issue to be addressed at the highest expanded to a city, or system of cities, scale. level of government. The development of economic industry clusters, APEC, as the representative organization for 21 corridors and city to city economic linkages economies in the region, should play a leading role across urban systems will be central to scaling in facilitating partnerships for the development of up such partnerships. The Jing-Jin-Ji, Pearl River sustainable cities. This report uses a case study Delta, Vancouver–Seattle, Ho Chi Minh City and approach to develop a framework for an initiative by Mercosur trade development corridors provide APEC to help realize the vision for Building Better relevant lessons in the management, financing, Partnerships for Inclusive and Sustainable Urban and development of such corridors and systems. Growth in Cities in the Region. • Partnerships to Foster Sustainable Urban Forms: Many cities have evolved toward lower Primary action agendas density, high carbon and dispersed forms of urban development which are environmentally This report identifies five primary action agendas unsustainable and economically inefficient. focused on the economic, physical, social, natural Shortfalls in metropolitan planning, in particular, (environmental) and governance spheres. These five the lack of integration of land-use and transport/ agendas are all equally important for improving the logistics solutions, and in governance are the sustainability of development in the cities of APEC primary cause of such problems. The chapters member economies. on Mexico, Lima, Auckland and Manila show that While cities in the region will have their own priorities urban sprawl is responsible for issues associated when it comes to implementing the agendas, they with congestion and adding to the costs for will have many agenda items in common. Given business, government and communities. the wide range of experience available – with some Increasing urban density and consolidation cities displaying very good practice – there is scope of development is vital to improving the for learning from each other. Partnerships constitute sustainability of development across the region. an effective way of disseminating that learning and • Partnerships to Support Development of supporting the adoption of best practice across a Strategic Infrastructure: The governance range of agendas. agenda should promote partnerships for strengthening programme development and Priority partnerships implementation mechanisms for strategic infrastructure, and for addressing systemic faults A wide range of partnership arrangements exist – related to preparing, financing and implementing from city-specific ones to those at the multilateral investments needed for sustainable

xvi Partnerships for the Sustainable Development of Cities in the APEC Region development. Infrastructure investment tends the development of such capacity. Responsible to be opportunistic and ad hoc and lacks the ministries should tap the substantial body of expertise context of a ‘nested’ set of plans at the member- in academic and policy institutions. economy, regional and local levels together The APEC Secretariat should form a Sustainable with integrated metropolitan asset management Urban Development group to coordinate activities plans. Private-sector and community inputs are to implement an urban agenda. The representatives not systematically and equitably canvassed in of this group would be drawn from the economic respect of such investments. planning ministries of member economies, or their • Partnerships for Financing Investment for nearest equivalent having a strategic overview of Sustainable Development: Urban governments city infrastructure needs. The group would report do not have revenue-raising mandates in line directly to the Senior Officials Meeting owing to its with city infrastructure needs. Local governments cross-cutting nature and the potential involvement have no incentive to maximize tax yields or of several committees of APEC. The activities of leverage private and community resources. the group would fall into two areas. The first would Funding requirements, in many cases, are entail the formation of advisory groups for the five unknown. Strategic and asset management agenda areas. The second, and related, activity plans seldom exist; where they do exist, the area concentrates on priority actions for partnership investment required has not been adequately initiatives. These activities could be coordinated by a estimated. Enterprises in secondary cities often small ‘Initiative Secretariat’, which would also act as have less access to funding; and micro, small the repository of data on APEC urban systems. and medium enterprises suffer restricted access In conclusion, because of the economic importance of to funding no matter where they are located. cities to member economies, the issue of sustainable • Partnerships to Enhance City Information, urban development is one to be addressed at the Trade Data, and Asset Management Systems: highest level of government, in partnership with all For trade and investment to grow, information, levels of government. Only such a coordinated and trade, services and infrastructure need to be collaborative approach will enable the expansion and more closely integrated, and the nature, volume, development of trade, and the proactive adaptation capacity and spatial identity of assets and value- to new models of economic development and to new adding inputs to production and waste streams technologies. better known. The report makes the following recommendations: Key recommendations • APEC, through the Friends of the Chair meetings on urban issues, should create an initiative The economic planning ministries of APEC member aimed at Building Better Partnerships for economies could develop dedicated units capable of Inclusive and Sustainable Urban Growth of analysing urban economic systems and of fostering Cities in the Region. best practices in sustainable urban development. The focus should be on providing appropriate • The APEC Secretariat is mandated by the enabling frameworks for acquiring, adapting and Friends of the Chair to implement the four key implementing best practices through supporting partnership initiatives and the collaborative effective partnerships with cities, communities and the arrangements required for better data collection. private sector. The implementation of best practices • The APEC Secretariat publishes this report should extend across the various systems – planning; to support the launch of the Building Better project development and assessment; project Partnerships for Inclusive and Sustainable Urban procurement; and finance. Improving only one area is Growth of Cities in the Region initiative. unlikely to improve outcomes. APEC should support

Introduction xvii EXECUTIVE SUMMARY

The Asia-Pacific region comprises 46 economies Until the global financial crisis, it seemed nothing and has the largest geographic concentration of could slow the momentum of development in the population, wealth and urban settlements on earth. region. However, the crisis and the slowdown in the The region includes some of the fastest-growing Chinese economy have had a profound impact on and most developed economies and cities in the the performance and development of economies and world. The rapid development and urbanization in the cities in the region. Population and economic growth region have created significant growth management rates have slowed. challenges for cities. Overcoming these challenges The region’s cities face a range of development, will be difficult. Given the complexity and scale of environmental, social and political challenges. many of these challenges, governments and cities will Factors such as climate change, terrorism, and need to further work collectively to address them. security issues; increasing income and wealth APEC is well-placed to play a role here. APEC disparities between cities and communities; rising represents 21 economies in the region, including poverty; unemployment; and inadequate affordable the world’s three largest economies – the USA; housing are increasingly shaping the agenda for the China; and Japan. APEC’s primary goal is to future development and management of cities in the support sustainable economic growth and prosperity direction of sustainability and change. in the region, but its focus extends into social, The pressures facing the development of APEC environmental and governance issues affecting the member economies have given rise to a period of development of its member economies. In 2015, the reflection and debate about the sustainability of APEC region’s vision was expanded to embrace urbanization and economic development of cities economic prosperity and interconnectedness at all by member economies at various levels of levels – beginning at the grassroots. As regional government and community. The region’s cities are economic integration continues, APEC policies not producing the economic growth, jobs and wealth and initiatives will also be implemented through they once did. The model to achieve competitive its inclusive growth strategy for the benefit of its advantage which focused on developing strong members’ economies and their people. Most of these agglomeration economies and pitching cities in people live and work in the region’s cities. competition against each other has done little to Over the past three decades, cities in the Asia-Pacific prevent a flatlining of economic growth. Climate region, and especially those in the APEC member change, congestion, pollution, urban sprawl, and economies, have experienced unprecedented issues such as renewable resources and future economic growth and development. The 21 APEC energy needs, are giving rise to broad-ranging economies account for approximately 42 percent debates across the region on sustainable city of the world’s population, 57 percent of the world’s development and ways to achieve it. total GDP and 44 percent of global trade. In 2014, Fresh approaches are needed in the way APEC APEC GDP was estimated at USD 41 trillion, based member economies develop their economies and on purchasing power parity (PPP). APEC member manage their cities. This is vital to ensure the economies include half the world’s megacities, 22 resilience of cities, to maintain prosperity, ensure a (55%) of the world’s cities with populations of 5–10 better quality of life for citizens and make cities more million, 185 (41%) of the cities with populations of 1–5 efficient. million, and 284 (48%) of the cities with populations of 0.5–1 million. These percentages are expected As APEC member economies move toward a to increase slightly over the next three decades, as development model based on the concept of a population growth and urbanization rates rise. The sharing economy, governments will need to work rapid development comes at an environmental cost, more cooperatively and collaboratively with each with growing exposure to risks. other, with business and with their communities to

xviii Partnerships for the Sustainable Development of Cities in the APEC Region foster sustainable regional and local economic and The report was prepared by a team of urban experts social development. This model of development living in the cities of member economies. The will lead to the development of a broad range of research is intended as a knowledge document partnerships to support urban governance, trade, and to share ideas on good urban management investment, services delivery, human capital practices to improve the sustainability of development development and environmental management. of the region’s cities and their economies. The findings are expected to be of interest to a wide APEC could play a useful role in working with audience of readers – including community leaders, governments to facilitate partnerships supporting administrators, business and academics. the sustainable urbanization and development of cities in the region. Such partnerships will involve The lessons presented in the report have relevance governments, business and communities working to all levels of government, policymakers, planning together to innovate, to share resources and organizations, business, investors, and community information and to raise the capital, technology and professional interest groups. The report highlights and skills to overcome common problems and the importance of partnerships for advancing good issues affecting the sustainable development of the urban governance; encouraging greater infrastructure region’s cities. A new model for the partnerships will investment and innovation; managing structural and involve central and city governments collaborating technological change; improving the development of domestically and internationally through networks, human capital; and fostering a better quality of life in alliances and associations to foster the expansion of cities. knowledge, trade, investment and other exchanges that benefit the development of communities, Urbanization in the Regional Context especially wealth creation and jobs, while concurrently addressing complex problems that Over the next 35 years to 2050, an unprecedented require a collective effort to resolve. increase will occur in the urban population of the APEC member economies. Currently, 1.8 billion Purpose of the Report people or around 60 percent of the region’s population live in urban areas; this is expected to This report explores the ways cities in the region are reach 77 percent by 2050. Table ES.1 shows urban supporting partnerships for sustainable development. population growth and expected trends to 2050 for It documents the state of urban systems and the APEC member economies. By 2050, the urban lessons gained from the development of cities and population is expected to increase to 2.4 billion, or urban corridors using case studies. The 14 case by 33 percent. Some economies are more than 80 studies assess economic, physical development, percent urbanized and many others are urbanizing social and environmental management, and urban rapidly. Fourteen of the world’s 37 megacities are governance systems. The case studies include located in APEC member economies. secondary cities, metropolitan regions, and regional economic trade development corridors. This report builds upon previous research by APEC on shaping the future partnership for urbanization and sustainable city development between member economies. The report presents a framework for an initiative by APEC member economies for Building Better Partnerships for Inclusive and Sustainable Urban Growth of Cities in the Region.

Introduction xix Table ES.1 Urban Population of APEC Member Economies, millions, 2000–2050

APEC 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 economies

Australia 16.8 18.1 19.9 21.4 22.9 24.4 25.8 27.2 28.6 30.0 31.3

Brunei 0.2 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.4 0.4 0.5 Darussalam

Canada 24.4 25.8 27.6 29.4 31.1 32.8 34.3 35.7 37.1 38.3 39.6

Chile 13.3 14.3 15.2 16.0 16.8 17.5 18.1 18.6 19.0 19.2 19.4

China 459.4 560.5 669.4 779.5 874.4 947.5 998.9 1,030.0 1,044.4 1,050.8 1,049.9

Hong Kong, 6.8 6.9 7.0 7.3 7.5 7.7 7.9 8.0 8.0 8.0 8.0 China

Indonesia 87.8 103.1 120.2 137.4 154.2 170.1 184.9 198.0 209.2 219.1 227.8

Japan 98.9 109.2 115.3 118.6 119.4 118.7 116.9 114.4 111.5 108.6 105.8

Korea 36.6 38.3 39.7 41.0 42.2 43.2 44.1 44.7 45.0 45.0 44.7

Malaysia 14.5 17.2 20.1 22.9 25.5 28.0 30.2 32.0 33.5 34.9 36.2

Mexico 77.6 84.5 91.7 99.2 106.3 113.0 119.0 124.2 128.6 132.1 134.8

New Zealand 3.3 3.6 3.8 4.0 4.2 4.4 4.5 4.7 4.9 5.0 5.2

Papua New 0.7 0.8 0.9 1.0 1.1 1.3 1.5 1.8 2.1 2.5 3.0 Guinea

Peru 19.0 20.8 22.5 24.5 26.5 28.4 30.2 31.7 33.1 34.4 35.4

Philippines 37.2 40.0 42.3 45.2 48.9 53.5 59.2 65.9 73.3 80.8 88.4

Russia 107.7 105.7 105.8 105.2 104.4 103.2 101.9 100.9 100.0 99.1 98.0

Singapore 3.9 4.5 5.1 5.6 6.1 6.3 6.6 6.8 6.9 7.0 7.1

Chinese 15.3 16.4 17.3 18.0 18.6 19.0 19.2 19.3 19.1 18.8 18.3 Taipei

Thailand 19.6 24.6 29.3 34.0 37.9 41.0 43.1 44.3 44.7 44.7 44.3

United 225.0 238.3 252.2 265.4 278.8 292.2 305.4 317.7 329.0 339.8 350.3 States

Viet Nam 19.7 23.2 27.1 31.4 35.7 39.9 43.7 47.2 50.4 53.3 55.7

Total urban 1,287.7 1,456.0 1,632.6 1,807.2 1,962.9 2,092.6 2,196.0 2,273.6 2,328.9 2,372.0 2,403.8 population

Source: United Nations, Department of Economic and Social Affairs, Population Division, World Urbanization Prospects: The 2014 Revision (New York: United Nations, 2015). xx Partnerships for the Sustainable Development of Cities in the APEC Region A Region with More, Bigger, rates peaked. Australasian cities have continued and Greying Cities to grow steadily. Populations and cities in many APEC member economies are ageing rapidly, which APEC member economies have more than 825 will bring about significant challenges in caring for cities with populations greater than 300,000 people. an ageing community, and historic buildings and The pattern of urban development varies in density, infrastructure. rates of growth and age across the region. Most of the region’s cities are less than 100 years old. Over the next three decades, urban populations in During the late nineteenth century to the latter half most APEC member economies are expected to live of the twentieth century, cities in North and South in cities of 500,000 to 1 million people. Figure ES.1 America and Japan grew rapidly, and urbanization shows the anticipated growth in cities (by size) in APEC member economies between 2015 and 2025.

Figure ES.1 Expected Growth in Cities by Size in APEC Member Economies, 2015–2025

400 353 350 2015 2025

300 284 249 250

No. 200 185

150

100

50 33 14 17 22 0 10 million of more 5 to 10 million 1 to 5 million 500,000 to 1 million

Source: United Nations, Department of Economic and Social Affairs, Popluation Divisions, World Urbanization Prospects: The 2014 Revision (New York: United Nations, 2015)

Many of the smaller cities (population less than The dominant feature of the Asia-Pacific region is its 300,000) have fewer financial and physical megacities. There are 15 of them, and it is predicted assets, skills and resources to plan, manage and that a further 17 will be added by 2025, mostly in accommodate urban growth. Most will continue to China. Collectively, the megacities are home to 7 struggle to attract investment, leading to a widening percent of the region’s total population or 15 percent of the per capita income and development gap of the urban population. Many of these large cities are between cities. expanding and merging along corridors to form supra cities of 50 million, as has occurred along the Pearl An additional 64 cities with populations of 1–5 million River Delta between Guangdong and Hong Kong, and 67 cities of between 0.5–1 million people are China. Other corridors of cities are developing in expected to be added to the region by 2050, mostly North and South America, and Southeast Asia. in China. Cities such as Tianjin are growing rapidly while some cities in Japan are experiencing declining populations. South America is the most urbanized part of the Asia-Pacific region, and the population of many cities there has stabilized.

Introduction xxi Table ES.2 Population in APEC Member Economies by City Size as a Percentage of the Total World Urban ` Population, 2015

No. of No. of Percent Pop. of Pop. of Percent Percent Cities’ cities in cities in world cities in APEC world pop. APEC populations the world APEC cities (%) the world cities (%) urban pop. economies (‘000s) (‘000s) (%)

10 million or 29 14 48 451,145 227,692 50 14 more

5 to 10 million 40 22 55 281,226 149,617 53 9

1 to 5 million 449 185 41 887,590 376,993 42 23

500,000 to 1 587 284 48 403,053 198,409 49 12 million

Less than - - - 1,903,779 681,654 36 42 500,000

Total - - - 3,926,793 1,634,365 42 100

Source: United Nations, Department of Economic and Social Affairs, Population Division, World Urbanization Prospects: The 2014 Revision (New York: United Nations, 2015).

Table ES.2 shows the distribution of the urban to make economies and cities more efficient and population in APEC member economies for cities of competitive. These changes have boosted growth, different sizes. In 2015, an estimated 54 percent of but they have often been associated with high levels the population of APEC member economies live in of environmental damage and social dislocation cities or towns of less than 1 million people, while associated with rural–urban migration, including 14 percent live in megacities. By 2025, the urban cross-border and international migration. population is estimated to increase to 2.4 billion, with In the cities of developing APEC member economies, a rising proportion of the urban population living in economic development and employment have grown medium-sized cities of between 1 and 5 million. rapidly. However, shortages of investment and By 2030, the percentage of the population living limitations on public capital from taxes and loans in the region’s megacities is expected to remain have resulted in severe shortfalls in public and private stable at around 15 percent. People living in cities sector infrastructure and services. Poor environmental of less than 1 million are expected to account for management affects public health and the productivity less than 42 percent of APEC member economies’ of urban workers. For the disadvantaged and poor, urban population by 2050. Secondary cities, with urban poverty and the shortage of housing add populations of between 1 million and 5 million, to the stress of living in cities. These are priority are expected to experience the strongest growth areas in the sustainability debate on improving the pressures over the next 30 years. Many such cities competitiveness, efficiency and liveability of cities. are likely to be components of a cluster of cities in Improvements in urban governance, liveability, metropolitan regions or larger urban development competitiveness, and support for local economic corridors. development, trade, and urban management are needed to improve the functionality and efficiency of Sustainability Challenges cities in the APEC region. Cities in APEC member economies are transforming In advanced APEC member economies, many rapidly. Growth in middle-income economies has cities have experienced a tough transition from been driven by rapid industrialization achieved manufacturing to advanced services-based through a focus on developing agglomeration of economies. A significant diversity of economic economies, but also by progressive reforms to activities and employment has been generated in the central and local governance systems designed advanced services sector, the knowledge sector and xxii Partnerships for the Sustainable Development of Cities in the APEC Region technology-based manufacturing industries. However, unemployment and underemployment rates, income Figure ES.2 Five Key Transactional Elements of a disparities and social disadvantage remain stubbornly Sustainability Framework for Cities high. Urban regeneration is bringing about the revitalization of old city centres, resulting in new economic activities and significant socio-demographic changes. These inner-city centres are beneficiaries Physical of proactive responses to change, which increasingly Environment involve partnership arrangements with business and local communities. As a necessary first step toward a model of sustainable urban development, APEC member Natural Governance Economic economies and city governments, business and Environment Environment Environment communities must recognize the need for change. Perhaps the two greatest challenges to sustainable urban development among APEC member economies are to demonstrate a commitment to change and to Social Human Environment decide how to go about that change. One certainty is that change will occur in response to the need to address the impacts of disruptive technology events, and growing pressure on governments to reduce Source: Authors. congestion and pollution, and open up systems of governance to greater community engagement, There are five key systems environments in the increasingly through the use of social media. framework for explaining the sustainable development A second major challenge to creating sustainable of cities. cities is the need for more multi-sector and integrated • Economic Environment includes a profile of strategies and solutions to support well-managed the economies of cities and support for fostering urban development, problem-solving and innovation. the investment environment, business support, Many of the strategies and solutions to urban and innovation. Business support and innovation development issues will require governments and involve initiatives aimed at building local cities to be more visionary and less risk averse. economic dynamism through financial and other They need to be responsive to disruptive and support, e.g. through the development of green transformative events, and foster positive attitudes industry in local clusters and their supply chains. and commitment to innovation and collaboration. Collaborative governance through a broad range of • Physical Environment includes not just built partnerships with stakeholders and interest groups infrastructure and assets, but also the quality of is vital to drive more sustainable solutions and service delivery provided by them. It includes outcomes to address urban development problems in infrastructure that is important to add value and the cities of APEC member economies. generate higher levels of efficiency in urban economies. Building green logistics systems Framework for Sustainable Systems and other infrastructure to support local industry clusters; and the knowledge, health and of City Development wellbeing infrastructure that make cities smarter, Urban sustainability is a difficult concept to healthier and less risky places to do business, understand, and even harder to implement. Figure are crucial elements of strategic infrastructure. ES.2 shows a framework employed in the report to • Social Environment involves initiatives fostering help explain and analyse the sustainability of urban a good quality of life, and more knowledgeable, development using a systems approach. Cities are creative, innovative and inclusive cities. It also made up of an intricate set of interacting systems. includes building levels of trust, lowering levels There is a metabolism of cities, which in a way of corruption, and improving human rights and mimics natural systems and structures. workplace health and safety conditions, which affect the productivity and performance of workers, especially in the low-paid services and manufacturing industries.

Introduction xxiii • Natural Environment (Environmental to address wider ranging issues associated with Sustainability) is concerned with maintaining sustainable urban development. the environmental quality of cities and ensuring the replenishment of degraded natural resources. Value of Case Studies in Learning about Environmental sustainability is linked to systems used to provide clean water, soil, etc. It also Urban Partnerships includes reducing the use of non-renewable The approach used to analyse the sustainability of resources, and supporting cleaner energy and the region’s cities in the report involves an extensive production, industrial ecology, and materials literature review and 14 case studies. The case recycling. studies examine two different typologies of the systems of cities. These are ‘stand-alone’ cities • Urban Governance Environment is core and metropolitan regions; and urban economic to the sustainability of cities. It is concerned development ‘corridors’. with building institutions that are effective in managing multi-level urban systems and Each case study investigates the five elements producing outcomes that make the development for sustainable city development identified in of cities more sustainable. Urban governance Figure ES.2. The case studies provide a deeper is concerned with good urban management, understanding of some of the challenges facing the integrated planning, participatory decision- development of cities. The stand-alone city case making, accountability and sound financial studies include Auckland, Bandung, Brisbane, Manila, management of cities and public institutions. Kitakyushu, Lima, Mexico City, Santiago de Chile, Urban governance extends to areas of Seoul and Taipei. The urban development corridor collaborative governance, partnerships and cities include the Pearl River Delta, the Ho Chi Minh resource sharing. City–Bangkok trade corridor, the Jing-Jin-Ji Circle, and the Seattle–Vancouver urban corridor. These five environmental systems of cities are all The case studies highlight many examples of interconnected and interdependent in many different sustainable urban development good practice. ways. The structure and dynamics of urban systems However, examples of urban partnerships that could vary enormously in the cities of APEC member be scaled up are too few. Many examples of good economies. The systems operate, interact and practice are limited in scope and scale. While there pulsate through a broad range of networks, patterns are some examples of integrated or city-to-city and flows. Flows include the movement of goods, systems, partnerships involving the planning and services and people, data and information, learning, management of cities, many examples of good local energy and environmental services, etc. A change partnerships, especially in smaller cities, are poorly or disturbance in one flow system invariably impacts documented. on the dynamics other systems. In all cities, there Case studies are an excellent learning tool to study are a myriad of changes and disruptions occurring the way cities in the region address and adapt to daily to urban systems, yet there are harmonics problems that impact on the sustainability of urban which continually stabilize them to enable cities to development. Data, examples and knowledge of good develop, grow and function, albeit not necessarily in a practice enable APEC as a whole to adapt better to sustainable manner. the disruptive ‘mega-trends’ of social, climate and To make the cities of APEC member economies technological change and to support the development more sustainable, policymakers need to understand of ideas, policies and actions to underpin a more that development decisions involve trade-offs in broad-based approach to urban development that the use of resources and the ways these are used could have a transformative impact on cities. for consumption, exports, and asset creation. The The case studies show that partnerships among economy’s accounting systems measure these APEC economies and cities could facilitate better factors, including GDP and other economic data. knowledge and practical action to improve outcomes. Governments and business rely heavily on this data However, there is not, as yet, a systematic effort to for planning, budgeting and expenditure outlays. address the scope of issues required to promote However, in a more globalized world, trade-offs sustainable urban development partnerships in the between the region’s economies (not just APEC cities of APEC member economies. The case studies member economies) are necessary. Interregional show a need to develop partnerships for sustainable networks and partnerships of interest are an important development that span key economic, spatial, way of internalizing and externalizing APEC member- social, environmental and governance dimensions economy and city decision-making arrangements of sustainable city development. More cross-cutting partnership arrangements are needed for addressing

xxiv Partnerships for the Sustainable Development of Cities in the APEC Region climate change, public–private partnerships (PPP), realities and resources needed to keep them going. community involvement, risk and resilience, and The willingness of stakeholders to commit and stay knowledge-sharing. committed to being open, honest and self-critical about the workings of governance arrangements is The case studies show the importance of good essential. governance and networks in making partnerships work. Some partnerships have open governance Finally, partnerships must be flexible, especially systems. Others are more formalized. Some are when dealing with the need to respond to change more like networks than partnerships. The case and destabilizing events. The best cases in this studies show many ways that cities in APEC member report show that partnerships need to be innovative, economies are engaging in partnerships. Many focused, responsive and progressive. They need to partnerships are new. Others have been established be inclusive and accountable in their governance for a long time. The research shows urban arrangements. Partnerships for sustainable urban partnerships take time to develop, beginning with development also need to recognize that there comes an important period of trust building. It is important a time for renewal and closure when a better solution that the expectations of partners match the risks, comes along.

Auckland, New Zealand

KEY DEVELOPMENT INDICATORS

Value of the economy USD 66 billion (2013)

Total: 4,894 km2 Area Urban: 1,102.9 km2 (23%), Rural: 3,791 km2 (77%)

Total: 1,527,000 (2014) Estimated residential population Urban: 1,413,700 (92.6%) Rural: 113,300 (7.4%)

Urban density 1,280 people per km2

Economic growth 2.9% (2013)

Unemployment 5.4% (2013)

Key export sectors Dairy, meat, wool and wood products, fish and machinery

URBAN SUSTAINABLE DEVELOPMENT ISSUES Environmental: Auckland faces significant unpredictable environmental risks from climate Urban development: Sustainable urbanization is change to tectonic activity. The city’s natural location a challenging developmental issue. Auckland has and topography make it susceptible to earthquakes, low-density development and traffic congestion rising sea level, and potential tsunami impact. problems. It must increase its urban density through redevelopment to make land management more Governance: The city previously experienced sustainable. significant integrated planning and development issues, which have led to a backlog of crucial Social: Auckland faces challenges of integration infrastructure and public transport services. This and multiculturalism with high levels of domestic requires major changes in urban governance and and international immigrants. Lack of social housing management arrangements. provision is also an important factor in the sustainable social development of the city.

Introduction xxv LEARNING OUTCOMES: SUSTAINABLE CITY • The decentralization of employment, investment DEVELOPMENT PARTNERSHIPS and services has been advanced through planning support for polycentric city development • The amalgamation of seven local governments to decrease pressure on the CBD, ensuring has created collaborative government and sustainable land use, employment, transport and governance, resulting in better managed urban services delivery systems. urban, social, environmental and economic development. • Strong domestic and international partnerships provide the city with global recognition. Initiatives • The introduction of comprehensive, holistic such as sister cities and free trade agreements planning policy and practices involving have resulted in significant economic benefits, partnerships has led to a more sustainable and attracted attention to Auckland’s educational development growth model for the city. institutions, and to the city as a place of opportunity for immigrants.

Bandung, Indonesia

KEY DEVELOPMENT INDICATORS

Bandung: USD 3.89 billion (constant value, 2012) Value of the economy Bandung Metropolitan Area: USD 11.17 billion (constant value, 2012)

Bandung: 2,455,517 (2012) Estimated residential population Bandung Metropolitan Area: 8,002,462 (2012)

Employment 1,064,167 (2012)

Unemployment 9.17% (2012)

Number of non-formal businesses Bandung: 71,204 (2012)

Key export sectors Bandung: Trade USD 669.2 million (2012)

URBAN SUSTAINABLE DEVELOPMENT ISSUES Environmental: Due to the lack of infrastructure development, Bandung faces significant problems Urban development: The city of Bandung is home to related to environmental degradation such as flash 2.5 million people while Greater Bandung (Bandung floods, landslides and air pollution. The conversion city and the surrounding urbanized municipalities) of lands in the hilly areas in the northern parts of the has a population of more than 8 million. It is a tourist city from green to residential and other uses could destination with total number of visitors reaching potentially endanger the availability of clean ground 6 million annually. The main challenges involve water. urban infrastructure deficits. Bandung has chronic traffic congestion, especially during weekends; Governance: Given that the city has limited and experiences serious problems with regular financial capacity to develop urban infrastructure, floods, waste treatment, expanding slums and other the government has embraced the vision of infrastructure-related challenges. public–private partnerships in urban infrastructure provision as well as in other development areas. Social: Bandung has more than 80 higher education Institutional and regulatory reforms are needed to institutions and is the economic centre of the West improve the enabling conditions for the public–private Java Province, the most populous province in partnerships. Indonesia. These lead to increased need for housing, not only for students but also for low-income groups.

xxvi Partnerships for the Sustainable Development of Cities in the APEC Region LEARNING OUTCOMES: SUSTAINABLE CITY • Efforts have been made to improve partnerships DEVELOPMENT PARTNERSHIPS with various stakeholders, both at domestic and international levels, to support the city’s vision. • The city of Bandung has become one of the Initiatives such as sister cities and corporate few cities in Indonesia thought to be achieving social responsibility (CSR) from private and above average progress and experiencing state-owned companies have resulted in significant improvements. Under Mayor Ridwan significant contributions to city development. Kamil, previously a highly-accomplished Some initiatives are in the development stage architect, Bandung has become more vibrant and need strong institutional and regulatory and promising. The mayor envisions making support. Bandung the best city in Indonesia by integrating innovation, creativity and collaboration as the core spirit.

Bangkok to Ho Chi Minh Corridors

KEY DEVELOPMENT INDICATORS

Bangkok Phnom Penh Ho Chi Minh City

Population 11,190,037 (2012) 2,301,725 (2012) 7,521,138 (2011)

Area (km2) 1,568.7 678.46 2,094

Value of the economy (billion USD) 129.38 (2013) 2.053 (2009) 71.1 (2015)

Nominal GDP per capita (USD) 15,192 (2013) 1,130 (2014) 5,538 (2014)

Share of member economy’s GDP (%) 30.8 (2013) 25 (2014) 38 (2014)

GDP growth (%) 4.3 (2012) 6.1 (2012) 9.2 (2012)

URBAN SUSTAINABLE DEVELOPMENT ISSUES Bangkok and Ho Chi Minh City have modern, world- class infrastructure, high-end services and residential The Southern Economic Corridor in the Greater areas; and Phnom Penh is trying to rapidly catch up Mekong Subregion spans Cambodia; China (Guanxi and be a compatible city partner. and Yunnan provinces); Lao PDR; Myanmar; Thailand; and Viet Nam. This region in Southeast Social: Bangkok provides the best service situation and East Asia is as big as the European Union. The among the three cities, followed by Ho Chi Minh Greater Mekong Subregion by its nature represents City. Phnom Penh suffers from weak social services regional and city-to-city economic cooperation. (health and schooling). Despite their economic dynamism, all three cities are struggling with Urban development: In economic and spatial unemployment, particularly among their youth. terms, the corridor between Bangkok, Phnom Penh and Ho Chi Minh City is one of the Greater Mekong Environmental: Bangkok and Ho Chi Minh City find Subregion’s busiest economic corridors. The flow of their economic activities threatened by impacts of goods is largest between Bangkok and Phnom Penh, climate change, particularly flooding, as does Phnom and between Ho Chi Minh City and Phnom Penh. Penh. Bangkok’s traffic remains congested and air Less flows in the reverse direction. Thailand uses the pollution is an ongoing issue. Ho Chi Minh City has Southern Economic Corridor as an alternative route started to invest in major flood abatement measures. to the sea for many of its products since the Bangkok Governance: Bangkok is the heart of an upper port is often clogged, and harbour processing can be middle-income economy and is so governed. done more efficiently and at lower cost in Viet Nam.

Introduction xxvii Politically, Bangkok has seen much unrest and LEARNING OUTCOMES: SUSTAINABLE CITY upheaval, but it has also demonstrated remarkable DEVELOPMENT PARTNERSHIPS resilience and continuity due to investor support and its strong economic position. Ho Chi Minh City, at the • The membership of Thailand; Cambodia; other end of the corridor, is an example of stability and Viet Nam in regional economic networks, and planned growth. Phnom Penh assumes the including APEC and the Greater Mekong middle ground, with many problems originating from Subregion, strengthens their quest for market inequality and labour unrest. prominence. Bangkok, in particular, has been able to develop balanced relationships with all major APEC member economies (USA; China; Japan; and recently, Korea). Brisbane Metropolitan Region

KEY DEVELOPMENT INDICATORS

Value of the economy USD 170 billion (2014)

Area 22,900 km2

Estimated residential population 3,300,000 (2015)

Urban density (Brisbane City local government area) 827 persons per km2

GDP per capita USD 62,175 (2012)

Unemployment 5.9% (2014)

Manufacturing, business services, hospitality, and Key export sectors education

URBAN SUSTAINABLE DEVELOPMENT ISSUES development and the knowledge economy needs to be strengthened. Economic: The region needs to grow and diversify its economy, especially the knowledge economy, if it is to achieve world city recognition. Brisbane City has LEARNING OUTCOMES: SUSTAINABLE CITY developed a new world city vision and action plan. DEVELOPMENT PARTNERSHIPS Urban Development: The challenge is to maintain • Greater Brisbane provides a model of and strengthen the planning focus on compact urban collaborative partnerships at a megacity region development activity centres for employment growth, scale in which multiple governments exchange and residential infill. information, work together and collaborate on Social: There is a need to improve housing urban management, planning and infrastructure affordability and employment prospects, as well as issues. services and infrastructure provision to vulnerable • Collaboration also occurs at a local scale in key residents in some outer parts of the region. economic areas. In the Australia Trade Coast Environmental: Climate change will impact area, governments and large private corporations significantly on coastal and flood-prone areas of have collaborated and planned to develop a the region. An effective plan for climate change positive business and investment environment adaptation needs to be put into place. that allows them and smaller businesses to flourish and innovate. Governance: The State government and 12 local governments of the Greater Brisbane Region should • Brisbane City Council initiated the Asia-Pacific maintain their focus on collaborative planning, urban Cities Summit in 1996, and has been resourcing growth management, and infrastructure coordination it since. The forum now plays a key role in through the South-East Queensland (SEQ) creating links and sharing knowledge about Regional Plan. Collaborative planning for economic sustainable city development among APEC member economies and cities. xxviii Partnerships for the Sustainable Development of Cities in the APEC Region Beijing–Tianjin–Hebei (Jing-Jin-Ji) Region, China

KEY DEVELOPMENT INDICATORS

Value of the economy USD 936 billion (2013)

Area 231,418 km2

Total: 108.6 million (2013) Estimated residential population Urban: 62.0 million

Up to 26,700 per km2 in Beijing with the average for the Urban density (urban districts) urban area at approx. 5,000 per km2

GDP per capita USD 8,610 (2012)

Economic growth 9.1% (2013)

Unemployment 3.2% (2013)

Metals, machinery, electronics, petrochemicals, automotive Key export sectors products and pharmaceuticals.

URBAN SUSTAINABLE DEVELOPMENT ISSUES LEARNING OUTCOMES: SUSTAINABLE CITY Urban development: Better coordination of strategic DEVELOPMENT PARTNERSHIPS infrastructure provision (particularly public transport • Recognition at the highest levels of central and logistics) with urban development is needed to government of the need to manage the Jing- make land management sustainable. Jin-Ji Region as a whole is a significant step Economic: Innovation systems need boosting forward for more collaborative government and through industry partnerships. Significant investment governance resulting in better management in human capital development and support to SMEs of urban, social, environmental and economic are necessary to enhance productivity, support higher development. value-adding industry, assist the lower-skilled and to • Decentralization of employment, investment develop a service-sector-led economy. and services is needed to support polycentric Social: A key challenge lies in integrating large regional development but also has the potential numbers of rural, low-skilled workers and providing for ineffective regulation and wasteful duplication social services to economically important migrant of strategic infrastructure. Better approaches groups. Unequal distribution of income and access to coordination are necessary to address to public welfare via the hukou system have the environmental problems and support sustainable potential to increase social tension. development. Environmental: The challenges include freshwater • Stronger domestic and international partnerships supply, elevated levels of pollution and environmental will allow the region to increase its importance risks from climate change. The region’s topography as a service-focused centre for high value-added makes it susceptible to increasing desertification, industry, but partnerships will require proactive rising sea levels and tsunamis. support through the development of international city-to-city economic links. The region needs Governance: Due to the lack of effective regional to prioritize areas such as education (e.g. governance structures, the region has significant partnering with cities in Australia), aerospace integrated strategic planning, financing and (e.g. partnering with cities in the European development issues which have led to serious Union), and heavy industry (e.g. partnering with shortfalls in the provision of social infrastructure. cities in Korea). Significant challenges exist with coordination, transparency and accountability of agencies dealing with key urban functions and local government.

Introduction xxix City of Kitakyushu, Japan

KEY DEVELOPMENT INDICATORS

Value of the economy USD 32 billion (2013)

Area 489.6 km2

Estimated residential population 1 million (2014)

Urban density 1,950 persons per km2

GDP per capita USD 31,945 (2013)

Economic growth 3.3% (2012)

Unemployment 7.7% (2010)

Steel materials, machinery, shipping containers, electrical Key export sectors equipment

URBAN SUSTAINABLE DEVELOPMENT ISSUES LEARNING OUTCOMES: SUSTAINABLE CITY Urban development: The City of Kitakyushu has DEVELOPMENT PARTNERSHIPS relatively high population density in some areas • The City of Kitakyushu survived severe because of topographic constraints, but over the last environmental pollution and transformed itself few decades, it has experienced urban sprawl. This into an environmentally friendly city. While will potentially cause an increase in CO2 emissions improving its environmental management, due to the growing use of private cars. Kitakyushu the city invested in economic development by City’s urban development aims to develop towns promoting new technology and extending its along public transport networks (consists of JR line, logistics/transport networks. monorail, Chikuho railway and bus) • The new, growing sector of environmental Environmental: The City of Kitakyushu was technologies will be the key for the City of developed by the steel industry in the modern era (the Kitakyushu to be more competitive internationally 1900s) and confronted severe environmental pollution and to be a technology hub in Asia. in the 1960s. The city dramatically recovered from the environmental degradation and evolved toward • The city could invite trainers from partner sustainability. It was designated a ‘Green Growth economies/cities and disseminate knowledge City’ by the Organisation for Economic Co-operation in logistics and infrastructure maintenance and and Development (OECD) in 2011. Kitakyushu design. has been one of the most engaged Japanese • Employment creation is one of the Kitakyushu cities in international environmental cooperation, region’s biggest challenges. The city needs to demonstrating a high level of commitment. provide opportunities for the younger generation Governance: The City of Kitakyushu has been to increase confidence among youths that they engaged in government reform to cope with are able to achieve a better quality of life and the challenges brought by societal, economic environment for them to raise their families. and environmental changes. The current plan • It is important to stop urban sprawl and provide proposes collaboration among residents, non-profit high-quality living close to transit corridors. organizations and the private sector.

xxx Partnerships for the Sustainable Development of Cities in the APEC Region Metropolitan Lima, Peru

KEY DEVELOPMENT INDICATORS

Local Government Area (2013) Greater Lima Region (2013)

Value of the economy USD 70.1 billion n.a.

Population 8,617,314 n.a.

GDP per capita USD 5,120 USD 8,137

Employment 4,607,100 n.a.

Unemployment 4.7% n.a.

Number of businesses n.a. 842,522

Key export sectors Agriculture, agroindustry, clothing and chemicals

URBAN SUSTAINABLE DEVELOPMENT ISSUES transcontinental road and pipeline connectivity from Peru’s coast toward neighbouring Brazil, • Urban development: Over the previous will favour the development of Lima and Peru, decade, Lima has improved its physical not only as a point of transit but as a location infrastructure through an array of public and for industrial development and trade. Peru and private-sector projects. This has resulted in its capital city of Lima will be part of the new the overall modernization of the economy: economic geography which will transform the telecommunications, financial services, South American region infrastructure, and logistics services. • Social: Underemployment has been high LEARNING OUTCOMES: SUSTAINABLE CITY for decades, and there is a large informal economic sector, particularly for youths. Labour DEVELOPMENT PARTNERSHIPS participation of young persons is also determined • Peru will see significant benefits from its by inequality; those from poorer social membership in the Pacific Alliance (Mexico, backgrounds find it harder to enter and prevail Colombia, Peru, and Chile) and APEC. in the labour market. Delinquency and security The fact that Lima will be the entry point for have become problematic in the city. transcontinental east-west connectivity greatly • Environmental: The environment of greater enhances its importance. Lima is very susceptible to the impacts of climate • The city’s historical linkages with Asia – foremost change. Rapid urban expansion has caused China and Japan, and recently Korea – are a reduction of agricultural land near Lima. assets that could be utilized much more in future, Contamination due to inadequate waste disposal and stimulate new synergies. and industrial pollutants threatens the health and wellbeing of its citizens. • Peru’s membership in regional groupings such as the Andean Pact economies and the Pacific • Governance: Improvements in the business Alliance complements its APEC membership climate and competitiveness factors have helped and ensures a broad reach for the economy’s Lima to maintain a mid-ranking level worldwide. products and services. The prospects for further expansion of the oil, gas and mining sectors, and the development of

Introduction xxxi Metro Manila, Philippines

KEY DEVELOPMENT INDICATORS

Value of the economy USD 80.9 billion (2013)

Area 638.55 km2

Total: 11.86 million (2010) Estimated residential population Urban: 10.98 million (92.6%) Rural: 877,342 (7.4%)

Urban density 18,600 people per km2

GDP per capita USD 6,700

Economic growth Approx. 10% (2013)

Unemployment 6% (2014)

Tourism, education, electronic products, clothing/ apparel Key export sectors and business process outsourcing

URBAN SUSTAINABLE DEVELOPMENT ISSUES and accountability of agencies dealing with key urban functions and local government. Urban development: Many areas of strategic infrastructure, particularly public transport and logistics, need to be further developed. The LEARNING OUTCOMES: SUSTAINABLE CITY provision of transport must be coordinated with DEVELOPMENT PARTNERSHIPS urban development to make land management more sustainable. • The potential for effective partnerships, both at the strategic level and at the level of individual Economic: Innovation systems need to be boosted. renewal projects, is significant, with Manila being Significant investment in human capital development home to the Philippines’ leading universities, and support for SMEs are necessary to enhance and a network of non-government organizations. productivity, support higher value-adding industry, and The involvement of academe can spark to absorb the lower-skilled. In addition, there is a need intellectual debate and knowledge exchange for improved logistics, energy and communications among experts, as well as the private and public infrastructure to reduce the cost of doing business in stakeholders in and around the city. Examples of the city. such partnerships exist and could be scaled up. Social: A highly unequal distribution of income • Partnerships encompassing central and local has the potential to increase social tension. Lack government to foster a more comprehensive of effective and inclusive urban renewal processes approach to managing the city are desperately means that the provision of shelter for low-income needed. The Urban Land Institute has called groups falls far short of basic requirements. for the creation of an Urban Development Environmental: Manila faces high environmental Commission similar to institutions in Hong Kong, risks from climate change. The city’s location, China (Harbourfront Commission), Vancouver geotechnics and topography make it susceptible to (Urban Design Panel), and Singapore (Urban earthquakes, rising sea level and tsunamis. Redevelopment Authority) to formulate and implement a Metro Manila master plan. Governance: Owing to the lack of effective metropolitan governance structures, the city has • Public–private partnerships in the economy significant integrated planning and development are quite strong, with the central government issues which have led to serious shortfalls in the relying on these types of partnerships to meet provision of strategic infrastructure. Significant infrastructure needs. The PPP Centre catalyzes challenges also remain in respect of the transparency and has oversight over such partnerships and is operating quite well. xxxii Partnerships for the Sustainable Development of Cities in the APEC Region Mexico City Region, Mexico

KEY DEVELOPMENT INDICATORS

Federal District Estado de México

Value of the economy USD 200 billion (2013) USD 112 billion (2013)

Area 1,485 km2 22,357 km2

Urban area 792 km2 2,370 km2

Estimated residential population 8.85 million (June 2015) 16.87 million (June 2015)

Urban density 11,175 persons per km2 7,119 persons per km2

Persons employed age 15+ 4.06 million 6.88 million

Unemployment 6.0% 5.3%

Value of exports USD 2.63 billion (2013) USD 18.51 billion (2013)

Key export sectors Manufacturing, chemical products. Motor vehicles.

URBAN SUSTAINABLE DEVELOPMENT ISSUES Governance: Despite having higher income levels than most of its regional competitors, Mexico City Urban development: Previously known as one of the ranks only fifth in terms of city competitiveness in world’s most polluted cities, Mexico City is cleaning Latin America and the Caribbean. By 2050, Mexico up its act, starting with Plan Verde (Green Plan). will have the fifth largest city economy in the world. This 15-year initiative began in 2007 and is backed Mexico City urgently needs better governance by the United Nations and the World Bank. Plan structures to address problems of competitiveness, Verde aims to set aside approximately 8 percent of which are undermining Mexico’s ability to reap the the city’s annual budget for implementing extensive full potential of being a vital part of Latin America’s and ambitious initiatives to make the city more productive base. environmentally friendly. There is a strong focus on sustainability targeting improved air quality and reduced traffic congestion. LEARNING OUTCOMES: SUSTAINABLE CITY Social: Despite its poor overall human capital DEVELOPMENT PARTNERSHIPS performance, Mexico has a large, well-educated • Mexico has benefited from cooperation with labour force. Many decide to work abroad because various APEC members (in particular, the USA; of a lack of opportunity at home and are welcomed Japan; Korea; and more recently, China) and for their quality and performance. Remittances from regional groupings like the North American Free Mexican citizens working in the United States account Trade Agreement (NAFTA), and the Pacific for 0.2 percent of Mexico’s GDP. Alliance. Environmental: The metropolitan region is expected • Sister cities are a form of legal and social to struggle with environmental problems, which agreement between cities to promote cultural may increase. In 1992, the United Nations declared and commercial ties. Mexico City (Federal Mexico City the most polluted city on the planet. The District) as a megacity has many sister cities Mexican government was forced to act. It banned old including Chicago, Los Angeles, Athens, Beijing, cars, removed lead from gasoline, embraced natural Beirut, Berlin, Rio de Janeiro, Sao Paulo, Seoul, gas, expanded public transportation, and relocated Tel Aviv, Istanbul, Lisbon, Paris, Rome, Sydney, refineries and factories to outside the city. Today, air Bogota and Buenos Aires. pollution in Mexico City has improved, but particle emissions levels remain high.

Introduction xxxiii Pearl River Delta, China

KEY DEVELOPMENT INDICATORS

Value of the economy USD 856.7 billion (2013)

Area 54,754 km2

Urban: 48.0 million (2014) Estimated residential population Total: 63.7 million (2014)

Up to 109,600 per km2 in Hong Kong, China with average Urban density (urban districts) mainland urban area at 10,000 to 15,000 per km2

GDP per capita USD 13,450 (2012)

Economic growth 12.2% (2013)

Unemployment n.a.

Machinery, electronics, petrochemicals, textiles, automotive Key export sectors products and pharmaceuticals.

URBAN SUSTAINABLE DEVELOPMENT ISSUES Significant challenges also remain in respect of the coordination, transparency and accountability of Urban development: Better coordination of strategic agencies dealing with key urban functions and with infrastructure provision, particularly of public transport local government. and logistics with urban development, is needed to make land management more sustainable. LEARNING OUTCOMES: SUSTAINABLE CITY Economic: Innovation systems need to be boosted through strategic industry partnerships. Significant DEVELOPMENT PARTNERSHIPS investments in human capital development and • Recognition of the need to manage the Pearl support for SMEs are necessary to enhance River Delta as a whole is a significant step productivity, support higher value-adding industry, to forward and has created the opportunity for absorb the lower-skilled and to develop a service- more collaborative government and governance, sector-led economy. resulting in better management of urban, social, Social: Challenges include maintaining its environmental and economic development. attractiveness to labour and providing the social • Decentralization of employment, investment services needed by economically important migrant and services supports polycentric regional groups. Unequal distribution of income and access development, decreasing pressure on a given to public welfare via the hukou system have the centre; but it carries with it the potential for potential to increase social tension. wasteful duplication of strategic infrastructure. Environmental: The Pearl River Delta faces high Better approaches to coordination are needed environmental risks from climate change and tectonic to ensure sustainable land use, employment, activity. The region’s natural location and topography transport and urban services delivery systems. make it susceptible to rising sea levels, cyclones, • Stronger domestic and international partnerships and tsunami. will allow the Pearl River Delta to increase its Governance: Owing to the lack of effective regional importance as a service-focused centre for high governance structures, the Pearl River Delta has value-added industry. significant integrated strategic planning, financing and development issues which have led to serious shortfalls in the provision of social infrastructure.

xxxiv Partnerships for the Sustainable Development of Cities in the APEC Region Santiago, Chile

KEY DEVELOPMENT INDICATORS

Value of the economy USD 88.4 billion (2011)

Area 641.4 km2 (2002)

Greater Santiago: 6,246,244 (2014) Estimated residential population Metropolitan Region: 7,228,581(2014)

Urban density 85 persons per hectare (urban area 2002)

GDP per capita USD 14,150

Unemployment 5.9% (2014)

Financial and business services, manufacturing, wholesale Key industry sectors and retail

Key export sectors Tourism, mining, wines and manufacturing

URBAN SUSTAINABLE DEVELOPMENT ISSUES • Santiago is a very competitive city in Latin America. For many years, the city has ranked as Urban development: While the city has experienced the best place to do business in Latin America; intense physical and economic transformation and and due to its openness to world markets, it is development since the 1990s, it still faces many likely to maintain this position. Consequently, the development problems. It is an economically divided government has encouraged the use of Santiago city, with significant areas of urban poverty. as an ‘investment platform’ for multinational Social: Despite steady growth in real wages and corporations planning to operate in the region. higher income levels than most of its regional • The newly initiated transcontinental connectivity competitors, Santiago has significant inequality in projects, particularly with Argentina, Brazil and income and wealth distribution. Bolivia, will further strengthen its role as an entry Environmental: The city faces many environmental point and hub in the region. challenges associated with air pollution and waste • Development of modern road infrastructure management, as well as the threat of natural hazards through urban expressway concessions has such as earthquakes. enlivened the city’s activity and its connectivity Governance: Greater Santiago lacks a metropolitan with the airport and Chile’s main seaports. Such government for its administration, which is currently infrastructure development is part of a broader distributed between various local authorities. Although long-term globalization strategy to counterweigh the central government can intervene and coordinate, the city’s geographic isolation. this governance arrangement has complicated the • The expansion of the metro network, the longest operation of the city as a single entity. in South America, and its integration with the bus network will increase accessibility to employment LEARNING OUTCOMES: SUSTAINABLE CITY centres and services. DEVELOPMENT PARTNERSHIPS • The city is addressing many of its environmental • Chile has recognized the importance of tertiary problems, developing innovative yet replicable or service sectors to the economy, boosting its collaborative approaches to solving issues such international liberalization and leading to the as water treatment, waste management and air signing of several free trade agreements. quality.

Introduction xxxv Seoul, Korea

KEY DEVELOPMENT INDICATORS

Value of the economy USD 31.9 billion (2013)

Area 605.2 km2

Estimated residential population Total 10,118,000 (2014)

Urban density 16,700 persons per km2

GDP USD 31.9 billion (2013)

Economic growth 1.6% (2013)

Unemployment 4% (2013)

Industrial products, finance and insurance, information and Key export sectors communications

URBAN SUSTAINABLE DEVELOPMENT ISSUES LEARNING OUTCOMES: SUSTAINABLE CITY Urban development: In an era of weak economic DEVELOPMENT PARTNERSHIPS growth, Seoul is in the middle of a transition from • Efforts to build international partnerships through profit-oriented redevelopment to urban restoration active participation in various international focusing on participatory processes in policymaking. organizations have attracted major international Social: With a steady increase in its elderly cities to economic opportunities in Seoul. population, Seoul needs to address issues arising • Public–private partnerships with global and from the shrinking labour market. The Seoul local business networks have contributed to Metropolitan Government recognizes unemployment, job creation and the attraction of investment in in particular youth unemployment, as a serious communities around Seoul. problem for the future. • Shifting the focus of urban regeneration from Environmental: There is growing pressure from physical improvement to community participation inside the economy and from the international and economic development has produced a community to reduce CO2 emissions. Seoul has more sustainable development model for the to develop viable environmental strategies in the future. transportation, energy and planning sectors. Governance: ‘Rebuilding Community’ is a core theme of the urban policies of the Seoul Metropolitan Government. Seoul is undertaking the important task of creating collaborative governance with various stakeholders. The current top-down decision-making process, organizational culture and relations between civil servants and citizens need to change so that citizen participation is encouraged.

xxxvi Partnerships for the Sustainable Development of Cities in the APEC Region Taipei Metropolitan Area, Chinese Taipei

KEY DEVELOPMENT INDICATORS

Value of the economy USD 167 billion (2012)

Total: 1,576 km2 Area Urban: 1,024 km2 (65%) Rural: 552 km2 (35%)

Total: 6,669,133 (2014) Estimated residential population Urban: 6,424,421 (96.3%) Rural: 244,712 (3.6%)

Urban density 4,232 persons per km2

Economic growth 1.9% (2013)

Unemployment 3.94%

Wholesale and retail trade, information and communication, finance Key export sectors and insurance activities, manufacturing, construction

URBAN SUSTAINABLE DEVELOPMENT ISSUES community empowerment, environmental sustainability and cultural conservation. There is a need for Urban development: Rapid industrialization and improved integration of the governments which make urbanization left the central and local governments up the region. Better vertical integration of policy ill-equipped to regulate and control development. With is needed between central and local governments, weak planning and governance systems were weak, especially given party political differences. the city developed severe shortages of infrastructure and unplanned urban sprawl. Open spaces and parkland were also used for new industries. Urban LEARNING OUTCOMES: SUSTAINABLE CITY renewal is a major issue for urban development. DEVELOPMENT PARTNERSHIPS Economic: With localized transaction costs • The integration of public transportation, water of production rising, the region is losing its resources and city-wide emergency response competitiveness. As a result, Chinese Taipei’s management and spatial planning strategy manufacturing sector has found itself in a difficult between the Taipei City and New Taipei City situation. The need to innovate, an ageing population, governments have resulted in better managed integrated urban planning and regulatory reforms are social, environmental and economic development. having an impact on the region’s competitiveness. • The metropolitan city government has been Social: An ageing society and high housing prices, working with private industry and public lack of social housing and a comprehensive housing enterprises to develop a green transportation policy are the major challenges. system, an infrastructure system and ecological Environmental: Protecting agriculture and protection projects. The private sector has environmentally sensitive areas from development adopted and practised socially responsible and establishing a governance system for improved approaches to environmental sustainability. metropolitan management are some of the major • Non-governmental and non-profit organizations challenges. Air and water pollution, loss of natural play an important role in emergency response habitat, congestion and waste management are issues in the Taipei Metropolitan Area because they that were neglected for decades. have strong connections with the community. Governance: Significant issues include managing Such organizations also focus on environmental urban restructuring and competition, democracy education and improvement activities in in urban governance, and the new urbanism of supporting sustainable development.

Introduction xxxvii Vancouver, Canada and Seattle, USA

KEY DEVELOPMENT INDICATORS

Urban corridor population 9,630,000 (est., 2015)

Value of the economy USD 576.42 billion (est., 2014)

Exports USD 97.67 billion (est., 2014)

I-5 Corridor Seattle to Vancouver 180km (110miles)

Labour force 4,543,200 (March 2015)

Unemployment 5.2% (March 2015)

Aircraft products, primary products, semiconductors, Key export sectors software and tourism

URBAN SUSTAINABLE DEVELOPMENT ISSUES LEARNING OUTCOMES: SUSTAINABLE CITY Urban development: Within the I-5 urban corridor, DEVELOPMENT PARTNERSHIPS the United States and Canadian border formalities • Creating urban green spaces full of walking have become increasingly challenging to the natural and biking paths and reclaiming parts of the flow of trade and population between Seattle and waterfronts for urban open space have created Vancouver. The ageing north–south transportation world-renowned ’liveable cities’. infrastructure needs to be upgraded and/or replaced both from a natural disaster management perspective • Urban transportation in all its forms is a very and to allow increased economic development to high priority and better intercity transportation occur. solutions are needed. Lessons can be learned from other APEC cities with larger population Economic: Seattle and Vancouver are well advanced bases. towards becoming global cities. The depth and growth of the technical, research and tourism sectors and • Major urban renewal and relocation of large, the ‘green industries’ are a feature of this growth clean industries back into the city centre is corridor which was previously almost entirely focused being undertaken. The scale of the urban centre on the still important but relatively declining primary as a place to live and work can be a workable production sectors. model for other urban areas and could be further examined by APEC. Social: Seattle and Vancouver appear to face very similar social challenges and a more regional • Mega urban areas, which span international approach, or at least an increased consultative borders, have varied and unique economic and approach, would likely be of benefit to all parties. social challenges above and beyond normal Affordable housing and improvements in core growth issues. Harmonized border clearance transportation issues are a key to helping solve some procedures can work effectively even under of the higher profile social issues. changing political and economic circumstances. Environmental: Efforts on environmental and natural disaster planning need to have ongoing priority. Unpredictable risks from natural disasters abound. The entire region is coastal and in an earthquake and volcanic zone. Governance: Urban planning and governance challenges are many. Difficult urban amalgamation options will need to be faced as the region continues to grow.

xxxviii Partnerships for the Sustainable Development of Cities in the APEC Region Key Lessons from Case Studies of Cities in the case studies, that demonstrate a strong in APEC member economies commitment to sustainable development. Some cities, such as Mexico City and Chicago, have The findings of the case studies and related advanced to develop collaborative networks for investigations reveal universal lessons for the cities economic cooperation and trade partnerships. of APEC member economies, which call for actions The development of city-to-city trade by governments, interest groups and communities to partnerships and agreements is the next step make the development of cities in the region more down from free trade agreements. sustainable. Overall, the findings show that: • If cities in the APEC region are to become more • Despite the overwhelming importance of cities sustainable, ways to realize the latent potential to the development of the region, there is still a of underutilised physical, social and economic poor understanding, at all levels of government, capital to support development need to be of the structural base for local economies, and addressed through a broad range of policies, how to manage the economic base of cities to plans and actions by governments, business and proactively support competitive, inclusive and communities. The global economy is evolving sustainable urban development. A model based rapidly under transformative social, technological on a more collaborative, cooperative and open and climate changes. Exogenous growth models, system of engagement for urban development even in successful examples such as China, and management is required for cities in APEC have been found to have limits in propelling member economies to become more dynamic, economies past ‘middle income’. Endogenous liveable and sustainable. growth models will be needed for the next stage • The analytic, policy and implementation shortfalls of development. Such models rely on acquisition, of central and city governments have resulted adaptation, dissemination and adoption of new in many APEC cities failing to achieve their full techniques and practices in larger industry potential as drivers of development in APEC clusters. member economies. The current approaches • APEC cities, in general, are not providing the to urban development and management are enabling environments, and economic and not having a significant impact on entrenched social infrastructure needed to create new problems of inequality, poverty, productivity, enterprises and trade development, investment and unemployment, or on improving living and endogenous job growth opportunities. These conditions. Overall there is substantial room for issues are attributable to poor metropolitan and improvement. urban governance and planning, and to severe • Some cities have shown remarkable resilience congestion and poor management of networks in the face of natural and manmade disasters, and service failures. These factors are adding and global economic shocks, to recover and significantly to the transaction and externality grow back into healthy and dynamic cities. costs of production, government and living in Christchurch in New Zealand and Yogyakarta cities across the region. in Indonesia are examples of cities which have • Data on APEC cities are poor, especially for suffered severe earthquakes and have worked secondary and smaller cities. The lack of hard on resilience strategies to ensure their good data on urban economies (i.e. trade, the recovery. value of public and private investment, and • There are significant opportunities to improve private transfers) makes it difficult to develop productivity and the liveability of the region’s policy, to plan, to conduct market research, cities. As most cities do not realize their full and to improve logistics systems and spatially development potential, changes in policies coordinate development and investment. In and initiatives are required that foster greater this area, shortfalls occur in key dimensions: in collaboration in leveraging resources and the availability of city assets and product data, infrastructure, creativity, innovation and social trade data, and data on natural capital; and contracts that give greater protection to the in the techniques of analysis that enable the vulnerable and disadvantaged. formulation of effective economic, environmental and social policy. Effective partnerships for • Many cities in the APEC region are encouraging gathering, sharing and assessing data are and developing a broad range of partnerships needed but do not exist. as a way of sharing risk, reducing transaction costs and leveraging resources. Many types of • Efforts to address climate change and other partnerships have emerged in cities, as shown environmental issues, and create greener

Introduction xxxix economies, remain inadequate. Ways to scale-up urbanization and sustainable cities – not only at the promising initiatives to address these concerns regional level – but also globally. at member-economy and regional levels must be Partnerships are a tool that could significantly improve identified. Cities in the APEC region are failing the sustainability of cities in the APEC region. The to provide the necessary social infrastructure to case studies show clearly that partnerships identified maximize the productivity and inventiveness of in cities and development corridors in the region human resources. Many are failing to preserve can be local and specific, system or cross-system, and build the levels of social and natural capital and multi-levelled. There is no universal model of needed to manage cities in the future. partnership. There are, in fact, a myriad of ways • Sustainable development is recognized as an to form partnerships. The quality and performance important issue for cities, but efforts by cities of partnership governance are the most significant to become more sustainable are sluggish and factors in improving the effectiveness of partnerships not sufficient to slow the negative externalities to improve the sustainability of cities in the region. resulting from rapid urbanization, congestion, Governments, international development assistance increasing travel times, growing housing agencies and financing banks must identify ways to shortages, and rising income and wealth improve the urban management and development of inequalities. cities, including their peri-urban areas. For example, • Despite the significant improvement in substantial investment in infrastructure is not international relations and connectivity of sustainable if those assets cannot be maintained, or business enterprises between cities, the strategic costs recovered. Similarly, appropriate governance infrastructure of most cities in the region do not arrangements to integrate transport, infrastructure support global learning and trade development. and land-use planning activities are essential. The links are mostly confined to symbolic ‘sister One way some cities in the region are addressing city’ relationships. The breadth and depth of metropolitan and urban management issues such relations are far too narrow and shallow. is through collaborative urban governance. Fostering improved linkages is an economic Collaborative urban governance involves government priority for member economies, but is seldom agencies working in collaborative networks, rather seen as such. than in a structural/hierarchical way, to manage urban development and services delivery. Collaborative Partnerships as Tools for Creating urban governance extends to new public-sector Sustainable Cities in the APEC Region management models to privatize or franchise the provision and delivery of infrastructure and services, The need for sustainable development in cities in through public–private partnerships, public–public the APEC region is becoming more apparent as community and NGO-based services delivery, and many sustainability indicators show. Rising traffic partnerships between the community and the private congestion, poor metropolitan urban governance and sector. management, impacts of climate change, pollution, poverty, crime, lack of low-income housing, poor The issues of economic, environmental and social liveability and job creation are challenges faced by sustainability must be aggressively addressed in nearly every city in the region. the region’s cities. Effective action is within the remit of ‘city governance’ at both central and city This report uses a systems analysis of city and government levels. The challenges of managing corridor development derived from the sustainability urbanization occur at different scales, scopes, framework in Figure ES.2. The analysis provides a geography, and levels of development. The model basis for APEC to develop and support a sustainable of cross-organizational partnerships offers efficient development agenda for cities in the APEC region service delivery and management mechanisms that is based on partnerships. Such an agenda calls for sustainability which can be embedded at the for changes in the management and development operational, not just the policy level, in those cities. of cities, along with a strong focus on innovation, and collaborative business and governance Many opportunities exist for partnerships involving models. It emphasizes renewable energy and collaboration and resource sharing arrangements, resources; efficiencies in transport, logistics and to minimize public and private transaction costs knowledge management systems; green building in the region’s cities. Table ES.4 shows some of design; technologies; and finance. Given the these in relation to themes and interest groups. This global significance of APEC’s economic position, report explores good-practice examples of some of its population, and the scale of development, it these types of partnerships that are supportive of should have a key role in shaping a new agenda for sustainable urban development in the region’s cities.

xl Partnerships for the Sustainable Development of Cities in the APEC Region Table ES.4 Potential for Developing Multilevel Partnerships within Cities in APEC

Economic Research Technology Governance Infrastructure Labour Environmental and and skills innovation

Central Co-funding Collaborative Partnerships Multilevel Co-investment Partnerships Collaborative government LED projects research to for planning and in infrastructure with partnerships improve the development resource for inner-city labour, and and funds for Funding efficiency of of regional sharing revitalization professional city and local support urban systems technology processes, and and environmental for green and ICT truly inclusive redevelopment knowledge management economy services of cities, for projects industries projects initiatives development projects and building capacity for collaborative competition

Local (city) LED Collaboration One window Collaborative PPPs for Partnerships PPPs for government partnerships on urban and single governance infrastructure with integrated with business, R&D with porthole involving delivery and unions and waste providing universities access to departments maintenance professional management infrastructure government and other organizations services and support services local on skills for greener governments development production and consumption

Global Industry-cluster R&D Local Partnerships PPPs with Partnerships Local business development opportunities technology for assessing GC for for skills environmental partnerships for small-scale partnerships and infrastructure development charters and on best research on transfer mitigating delivery, based on support for local practice programmes economic operations, and demand environmental in green risks maintenance improvement development programmes

Member- Support for R&D Industry Partnerships PPPs for Partnerships Local economy micro-credit opportunities groups for business smaller scale for skills environmental level schemes for small-scale collaboration infrastructure development charters and business and business research between delivery, based on support for local support for cities operations and demand environmental sustainable maintenance improvement development programmes

Local Local Collaborative Technology Collaborative Local area Job Partnerships business business and localized partnerships marketing services experience, for application government research for localized of local repairs and workplace of industrial networks for partnerships product products and maintenance partnerships ecology and disseminating for SMEs adaptation services partnerships with cogeneration best practice in education green industry facilities

Public Low carbon Collaborative Collaborative Collaborative PPPs Job Cogeneration utilities and investments, R&D partnerships governance experience, and waste institutions collaborative partnerships for technology agreements workplace recycling maintenance development partnerships and revenue with systems education facilities

Introduction xli Economic Research Technology Governance Infrastructure Labour Environmental and and skills innovation

NGO Budgeting and Monitoring Localized Local Local services Labour Local community planning of and evaluation technology community delivery and training environmental LED projects, of local transfer and planning and maintenance schemes management of fostering programmes development budgeting for skills drainage and awareness projects development waste of green consumption

Other Green economy initiatives

GC = Good coordination; LED = local economic development; NGO = non-governmental organization; PPP = public–private partnership; R&D = research and development; SME = small and medium-sized enterprise

Source: Authors.

City-to-City Partnerships fashion strategic partnerships with their natural trading partners’ cities to expand the flow of ideas, Some cities in the APEC region have realized investment, talent, and goods and services between development opportunities created by international their markets. This can be done by examining ways and regional free trade agreements and have to remove barriers to trade and investment at a local reoriented their strategic infrastructure and government level, and by fostering collaborative governance systems to reap the benefits through partnerships between like and competitive clusters of innovative networks and partnerships arrangements. industries to help reduce local transaction costs. One of the most significant to date is the Global City-to-city partnerships, like that between Mexico Cities Economic Partnership agreement signed City and Chicago, add a new dimension to the way between Mexico City and Chicago in 2013. This is cities in the APEC region can create collaborative not a typical sister city partnership, but a series of advantage and enhance the sustainability of cities in joint initiatives in trade, innovation and education to the region (Table ES.5). Such arrangements seek to increase employment, expand advanced industries, reduce resource use and transaction costs. They also and strengthen overall global competitiveness. This offer co-investment opportunities to add value to trade Mexico City–Chicago partnership demonstrates and supply chains, especially for secondary cities a new model for how cities can work together in along economic trade development corridors. APEC the future. As the region’s economies become could foster such partnerships focusing on the ‘green increasingly integrated, so too does the network of and sustainable’ aspects of practice. Such initiatives cities and metro areas that form its backbone. will also have strong synergies with ongoing low As with corporate business, city political and carbon initiatives. business leaders need to examine new ways to

xlii Partnerships for the Sustainable Development of Cities in the APEC Region Table ES.5 Potential for Strategic Partnerships between Cities in the APEC Region

City partnerships City-to-city level Regional and member- International level economy level

Economic and trade Intra-regional trade and City-to-city trade City-to-city economic and trade investment partnerships to development partnerships development partnerships foster development of clusters

Infrastructure Metropolitan collaborative Collaborative partnerships Collaborative partnerships partnerships between local for infrastructure for infrastructure development government units (LGUs) on development between cities between cities in a member infrastructure development in a member economy or economy or the region the region

Social Regional skills, education Skills, education and International skills, education and knowledge sharing and knowledge sharing and and knowledge sharing and development partnerships development partnerships development partnerships between cities between cities in a member between cities economy

Environmental Integrated resource Integrated resource Cross-border partnerships for management partnerships management partnerships conservation and natural resource between metropolitan, regional between cities and sub- management governments regional governments

Governance Metropolitan economic and Economic and trade Multiple economic and trade trade development corridor development corridor development corridor authorities authorities authorities of member economies

Source: Authors.

Cities can foster a broad range of partnerships, both contribute significantly to managing urbanization within their jurisdictional boundaries and hinterlands and sustainable development processes in the cities and with other cities. Tables ES.5 shows possible of the APEC region. The vision and agenda must partnerships identified by the research and the case be realistic, achievable and acceptable to member studies that could be developed, using a systems economies and the cities they represent. They should approach, at a local and international level within be capable of responding to the dynamics of change, cities in the APEC region to encourage value adding, be progressive, and collectively agreed. and reduce transaction costs through improved access to common user services and facilities. Such BUILDING BETTER PARTNERSHIPS partnerships could make a significant contribution to sustainability by reducing unnecessary duplication APEC has given its support to Building Better and better utilization of resources and infrastructure. Partnerships for Inclusive and Sustainable Urban This is crucial to reducing resource demand and Growth of Cities in the Region. Such a partnership operational costs of business and governments. initiative needs a vision that APEC member economies and cities can direct their support towards sustainable urban growth in the region. The vision proposed by the report is for APEC to An APEC Partnership for Sustainable support collaborative governance arrangements and Urban Development partnerships as the preferred operational model of public-, private- and community-sector engagement The research for the report shows that APEC could and inclusive decision-making on policy, investment, play a valuable role in leading an initiative for building development and urban management that results in better partnerships for inclusive and sustainable more competitive, inclusive, equitable and sustainable urban growth of cities in the region. Such an initiative, development outcomes for the region’s cities. however, needs a clear vision and agenda if it is to

Introduction xliii Urban Partnerships Agenda • Economic and Trade Development Corridors: The development of these corridors focus on: APEC, as the representative organization for 21 (i) major transit corridors within cities; (ii) city economies in the region should play a leading role regions or urban areas; (iii) emerging trade in facilitating partnerships for the development of development corridors. sustainable cities. The report proposes a framework for an initiative by APEC to help realize the vision • Industry Clusters and Business Networks: for Building Better Partnerships for Inclusive and These bring together various stakeholders Sustainable Urban Growth of Cities in the Region. involved in industry clusters and business networks to support the development of value- The framework is developed from five primary adding and creative businesses in economic agenda items: economic, physical, social, natural corridors, metropolitan regions, and secondary (environmental), and governance. The five agenda cities. items are all equally important to improving the sustainable development of the region’s cities. The • Cluster Investment: Given the opportunities and priorities in implementing these agendas will be city- constraints identified in the report for the major specific; however, many agenda items are common to clusters and business networks, the next step the systems of cities in the region. is to determine enabling actions and to assign responsibility for implementing and addressing Further, there is a broad range of experience in the them. In this activity, all levels of government region. Some cities display very good practice from should be involved, working in partnership with which others could learn. Partnerships constitute business, professionals, labour, and community an effective way of disseminating learning and and professional interest groups. supporting the adoption of best practice across a range of agendas. A wide range of partnership arrangements exist and can be significantly City Competitiveness: Enhancing the enhanced through support by the governments competitiveness of cities in the APEC region requires of member economies to the benefit of their cooperation between a wide range of interest groups economies and that of the region – from city-specific (including enablers, researchers, entrepreneurs, to multilateral levels of partnerships. Some priority producers and suppliers) to conduct analysis of: (i) partnerships, meriting the support of APEC and the changing nature of competitiveness in the region’s its member economies, are described in the five cities; (ii) comparative as opposed to competitive agendas below. These action agendas will provide advantage; (iii) collaborative advantage, the new concrete support for the inclusive and sustainable agenda for sustainable cities. urban growth of cities in the region. Value-Adding in Urban Industry Clusters: Urban economies will require greater support for: (i) fostering ECONOMIC DEVELOPMENT AGENDA endogenous growth and import substitution; (ii) the growth of innovative, creative and smart industries. The economies of cities are their existential backbone. Strong city and metropolitan-region Property Market Dynamics: The aim is to improve economies are key to sustainable urban growth and the dynamics and efficiency of property markets to development, and the ability of cities to innovate, ensure: (i) better security of tenure, especially for revitalize and transform. Central and city governments tenants; (ii) transparency and accountability in land have a crucial role to play in removing barriers to administration and management; (iii) the application trade, encouraging cities to become more competitive of market value applied to all land and property. and improving the flow of logistics systems. Financial Market Reform: The aim is to reform Innovation and support for business are critical and develop financial markets to deliver: (i) access to supporting sustainable city development. More to enterprise finance, particularly SME finance; (ii) coordinated and collaborative support for business access to more affordable microfinance; (iii) regulated is needed to foster the development of competitive bond markets; (iv) leveraging or sinking (future) industry clusters, public–private partnerships, funds, e.g. the Chicago Infrastructure Trust. collaborative research, reforms to intellectual capital, targeted industry grant schemes, and risk Implications of the Third Industrial Revolution management. There is a need to support partnerships Economy: A proactive response is required for for city-to-city learning in respect of innovation and effective adjustment to, and adoption of, advances collaborative business development. in technology that will fundamentally change the way of doing business in all member economies. Key partnerships required to support the sustainable The advances include developments in 3D printing; economic development of the region’s cities include computer-aided manufacturing; robotics; artificial those focused on:

xliv Partnerships for the Sustainable Development of Cities in the APEC Region intelligence; energy storage, production, and maintenance processes could be improved and distribution; and new materials. implemented. • Improved Performance in Cross-Cutting • Effective Collaboration with Potential Social and Environmental Issues: Education Investors and Other Stakeholders: Various and health, in particular, cross-cut the economic partnership arrangements can support private agenda, largely determining the productivity and community participation in the development of the labour force, and increasingly the of infrastructure, buildings and other structures. environment plays a role in determining a city’s Ways of engaging stakeholders in policy attractiveness to investment. dialogue need to be designed.

PHYSICAL (ASSET) DEVELOPMENT AGENDA SOCIAL DEVELOPMENT AGENDA Infrastructure, buildings and structures are crucial Health, education, legal and emergency services are assets supporting the development and operation crucial to the development of sustainable and liveable of cities. Infrastructure assets may be hard or soft. cities in the APEC region. Access to these services Nearly all cities in the APEC region have shortfalls is critical to the economy of cities: healthy, better- in strategic infrastructure. In developed member educated and safe workers are more productive. economies, logistics, enabling environments and It is also important to a city’s social stability and integrated planning issues are priority areas for wellbeing. Social development programmes will addressing how to overcome ageing infrastructure, lead to improvements in security, education, health, congestion and capacity issues. In developing and housing. High levels of exclusion from these member economies, integrated planning and services result in unemployment, constraints to career development, provision of strategic infrastructure, development, rising crime, and violence. Particularly management of peri-urban areas, the protection of disadvantaged are women, the aged, the physically utility corridors and value capture are high priority challenged, and children. matters needing attention to support sustainable city Key partnerships required to support the sustainable development. social development of cities in the APEC region Key partnerships needed to support the sustainable include those focused on: physical development of the region’s cities are those • Mapping of the Socioeconomic Profiles of that support: Cities: There is a need for public agencies to • Integrated Capital Works and Development partner in mapping the social wellbeing and Programmes: The preparation of integrated development of cities, providing baseline profiles capital works development plans and of the socioeconomic characteristics of citizens programmes is essential to efficient development including comprehensive, spatially tagged, and should be linked to city, departmental and gender-disaggregated statistics and data on corporation budgets which include financing families, incomes, shelter circumstances, skills plans for identified capital works. and livelihoods; the levels of housing, health, education and security services provided; and • Land Value Capture for Infrastructure: Capital levels of risk associated with crime, disease and works development plans should also identify exposure to disaster by socioeconomic groups developer financing and value capture financing and geographic location. options. Obtaining revenue from these sources is critical to the funding of works programmes. • Development of Social Services Audits and Inventories: It is necessary to identify the • Improved Practice in Asset Inventory various stakeholders involved in the provision Preparation and Management: The type, of vital social services – in particular, housing, location, age and other characteristics of assets health and education – for the region in question. need to be rigorously and comprehensively Ways of engaging these public agencies in recorded and assessed as the basis for partnerships with private service providers in analysis to determine priority investments and policy dialogue and integrated planning of social maintenance. The cost of collecting data and and community services needs to be identified records and maintaining asset inventories is for each major social service. In the absence of reduced substantially when public and private comprehensive data, stakeholder partnerships utility agencies collaborate on data collection, can provide significant and useful information as information sharing and revenue-raising from a basis for preliminary assessment. selling services from a single central city assets registry. Based on such data, operations and

Introduction xlv • Engagement and Inclusiveness: Participation ENVIRONMENTAL MANAGEMENT AGENDA has become a valuable tool for engaging Cities in the APEC region are particularly vulnerable communities in planning, budgeting, resource to the potential impacts of climate change which mobilization, service delivery and emergency include: an increase in extreme weather events; sea management. Partnership mechanisms for level rise; storm surges and flooding; and increased engaging communities in these participatory temperatures – all with related public health concerns. processes are necessary to reduce public-sector Amelioration of other environmental problems such costs and outlays on social and community as water, air and soil pollution, flooding, depletion services, and to improve outcomes regarding of natural resources, and invasive species, requires inclusive delivery of services. This supports a appropriate policies, improved skills and institutional policy change for economic development agreed arrangements, and adequate funding. These issues at the 2015 APEC meeting. are particularly challenging for smaller cities which • Access to Affordable Housing: Housing are facing relatively slow economic growth or rapid is a vital element in a citizen’s quality of life; urbanization. Resolving environmental issues is distorted housing markets result in reduced something that often requires multi-jurisdictional quality of life for many. Shelter policy and cooperation and agreement. At the city level, these housing development need to take into account issues can be successfully addressed through affordability to the full spectrum of income groups partnerships at the local level. and delivery systems which match appropriate Key partnerships needed to support the sustainable housing types and finance to all parts of the environmental management of cities in the APEC spectrum. Better partnership mechanisms are region include those focused on: needed to expand affordable housing and bring large numbers of vacant units of accommodation • Restoration of Natural Capital and and/or land into the housing market – both are Environmental Services: To improve the essential to addressing urban housing problems. environmental management of cities in the APEC region, it is necessary to document the • Healthy Cities: Healthy cities are vital to the state of the natural capital, its vulnerabilities, wellbeing and productivity of workforces in and pollution sources within the development cities. Creating healthy cities requires the cities, corridor, city region or urban area. More collectively, to take action to improve water, comprehensive, spatially tagged statistics air and food quality; ensure better urban living on water, forest and other natural-resource and working conditions; and better health care stocks and usage are needed as the basis for services. Health programmes must provide such analysis. For this, cities need to develop better facilities and services but also policy measures of natural-capital stock and the measures for preventative health, social and depletion and restoration rates. Based on this mental wellbeing to reduce health costs and data they need to develop partnerships for action demand for services. Many of these programmes and investment to counter the degradation of can be delivered through partnerships with non- key capital assets. Restoring natural capital is government and community-based organizations fundamental to the sustainability of cities and to and cadres. reducing ecological footprints. • Safer Cities: Safer cities are essential to public • Climate Change Resilience: Several very large safety, investment, emergency and disaster cities in the region like Bangkok, Jakarta, Manila, prevention and management. Inadequate and Shanghai are among the most vulnerable security, dangerous working environments, poor cities in the world to the impacts of climate roads and utility services cost the region’s cities change. The threat of climate change calls for billions of dollars annually in lost productivity, the future-proofing of cities.While that will be premature deaths, disabilities, and damage to life difficult to achieve, it is vital if the most at-risk and property caused by natural and manmade cities are to safeguard their economies against disaster. Actions to improve public and workplace this threat. Climate change will call for action safety are needed. Creating safer cities requires plans to be prepared for adaptation measures multiple levels of partnerships in planning, for all cities in the region which are less than management and development coordination, and 10m above sea level. While high priority should in improved and enforced laws and regulations. be given to fostering economic resilience in response to climate change and sharing best practice in this area, the pathways to achieving this are likely to include promotion of strong community-level support and partnerships.

xlvi Partnerships for the Sustainable Development of Cities in the APEC Region • Circular Economies: Cities in the APEC region integrated strategic planning; (iii) integrated must implement policies to encourage the spatial multi-sectoral budgeting; (iv) integrated development of circular economies where waste services delivery based on multi-sectoral materials, resources and energy are recovered planning; (v) infrastructure investment and reused. Cities can apply industrial ecology prioritization processes. and cleaner production as standard practices • Enhanced Public Revenue: There is a need to reduce waste and heat emissions to the to improve the efficiency and equity of: (i) lowest levels possible. The development of intergovernmental fiscal relations so as to circular economies in cities requires a collective provide incentives for local revenue mobilization approach to waste and energy recovery and and leveraging; (ii) property tax collection; (iii) partnerships for the dissemination of appropriate land value capture; (iv) asset leveraging. planning techniques and technologies. • Reform of Regulatory Systems: There is a • Green Cities: Green cities embody a wide range need for: (i) realistic, responsive and enforced of environmental management practices and add development and planning regulations; (ii) to the focus on the role of cities in mitigating the effective and enforced environmental regulations; impact of their population on the environment (iii) respect for the rights of citizens. and on resilience. The sustainability of cities in the region will, in particular, be highly dependent • Development of Anti-Corruption Cultures: on the creation of more energy-efficient green More transparent political processes, cities. Green cities will involve cities moving to government and business operations are vital. alternative or renewable energy sources, and • E-Governance: There is a need to develop developing local energy grids and energy storage modern IT-based management information buildings. The transition to green cities offers systems and public information systems. many opportunities to support more renewable and less fossil-fuel dependent cities. It will • Effective Monitoring and Evaluation: There require the development of partnerships to share is a need for systems at regional and member- good practice and to link cities to technology and economy levels to monitor and evaluate: (i) service providers. policy environments relevant to the agenda areas; (ii) capital investments related to agenda areas; (iii) operations and maintenance URBAN GOVERNANCE DEVELOPMENT AGENDA programmes; (iv) The performance of cities and city competitiveness across the agenda Better urban governance is essential to effectively areas; (v) Longitudinal studies on dynamics implement all of the above agendas, but it is one and changes in urban economic, social and of the most difficult challenges. At the central environmental systems. government level, many urban and spatial economic development strategies and plans lack clarity and are not integrated. Decentralization policies are poorly Priority Actions for an APEC Partnership aligned to the fiscal and administrative responsibilities of the different levels of government. At the city level, Initiative there is confusion over responsibility for the urban Many actions are necessary to address key shortfalls fringe and the functional responsibilities for city-wide and realize opportunities identified by the report to delivery and maintenance of local services. improve the performance and sustainability of cities in Key partnerships needed to support the sustainable the APEC region. APEC’s mandate is limited to policy, urban governance of cities in the APEC region would but the organization could work with its members need to focus on: on a limited number of priority actions that could make a meaningful contribution to the sustainable • More Collaborative Governance: This could development of cities in the APEC region. cover: (i) city-to-city trade partnerships; (ii) a collaborative governance culture (planning, The research identifies four key areas that could be budgeting, resource sharing) replacing current supported by APEC and its Secretariat as part of an ‘siloed’ systems which are inefficient and stifle initiative focused on Building Better Partnerships innovation. for Inclusive and Sustainable Urban Growth of Cities in the Region. They are: • Improved Metropolitan Management: Effective management would require attention to: (i) 1. Partnerships to Lift Economic Performance metropolitan governance arrangement; (ii) and Trade: While there appear to be many sensible theoretical reasons why city networks

Introduction xlvii and partnerships could help lift economic 2. Partnerships to Foster Sustainable Urban outcomes, the city case studies and literature Forms: Many cities have evolved toward lower have found limited evidence of them actually density, high carbon and dispersed forms of doing so. The case studies present good urban development that are environmentally and outstanding examples of sustainable unsustainable and economically inefficient. development practices, but very few have Shortfalls in metropolitan planning, in particular, been expanded to a city or system of cities the integration of land use and transport/logistics level. Scaling up the individual lessons drawn solutions, and in governance are the primary from the case studies into central and regional causes of such problems. The chapters on systems of cities through partnerships – city-to- Mexico, Lima, Auckland and Manila all show city clusters, trade, economic development and that urban sprawl is adding to the costs and investment exchanges (such as the Chicago– issues associated with congestion for business, Mexico City partnership) – is vital to enhancing government and communities. Increasing urban the performance and sustainability of cities in the density and consolidation of development is vital APEC region. to improving the sustainability of development across the region. A critical element of development partnerships to enhance economic performance is the 3. Partnerships to Support for Development development of more specialised spatial clusters of Strategic Infrastructure: The governance of industry and economic activities. Economic agenda should promote partnerships for development strategies and government strengthening programme development and enabling support to the development of export- implementation mechanisms for strategic orientated industry clusters is important, but the infrastructure, and for addressing the systemic focus on support endogenous growth is equally faults occurring at all levels in systems related important. With the advancement in ITC and to financing investments for sustainable other technologies (especially 3 D printing), there development. In many cases, infrastructure are many opportunities for the glocalization and investment tends to be opportunistic and ad localization of production of goods and services hoc and lacks the context of a ‘nested’ set of in large, medium and small cities across the integrated metropolitan asset management region. and local development plans. Private-sector and community inputs are not systematically The development of economic corridors and equitably canvassed in respect of such and economic linkages across urban investments. In addition, and importantly, systems will be central to such partnerships. investments are seldom subject to independent, The dominance of one or two cities tends to transparent analysis that relates to performance multiply agglomeration diseconomies in the criteria once a project has been implemented primate cities and to intensify underutilization and throughout its life. of enterprise and human capital in smaller cities. The lack of institutions to manage trade 4. Partnerships to Improve Systems related corridors, facilitate access to domestic and to Financing Investments for Sustainable international economic opportunities, is a major Development: Urban governments do not contributor to such problems. The development have revenue-raising mandates in line with of trade corridors comprising networks of city infrastructure needs. Local governments linked and interdependent cities is an emerging lack any incentive to maximize tax yields or phenomenon, but the challenge lies in how leverage private and community resources. to develop and manage these corridors. The Funding requirements, in many cases, are Jing-Jin-Ji, Pearl River Delta, Vancouver– unknown. Strategic and asset management Seattle, Ho Chi Minh City, and Mercosur trade plans seldom exist; and where they do exist, development corridors are vital to fostering funding requirements have not been adequately commerce and development between cities, but estimated. Enterprises in secondary cities often the management, financing and development have less access to funding for investment. of these will be a significant challenge, Micro, small and medium enterprises suffer which is best addressed through partnership restricted access to funding no matter where arrangements between APEC member they are located. economies and city governments.

xlviii Partnerships for the Sustainable Development of Cities in the APEC Region Supporting these initiatives will be Partnerships position in representing several of the largest and to Enhance City Information, Trade Data, and most influential economies in the world, that APEC Asset Management Systems: APEC member identifies and agrees upon how to develop the economies are becoming more closely linked to initiative, along with the scope and scale of activities expanding trade, investment, tourism and other types the organization engages in. of exchange. For trade and investment to grow, Figure ES.4 is a roadmap showing the structure information, trade, services and infrastructure need to and scope of a possible urban partnerships agenda be more closely integrated, and the nature, volume, and programme for APEC. The scale of these capacity and spatial identity of assets and value- activities initially might be limited to a few member adding inputs to production and waste streams better economies and cities. It is essential that the activities known. Most cities in the region have incomplete be designed as part of a learning experiment to information about their economies, what they import identify how APEC can best support sustainable and export, where and how value-adding occurs urban development activities within and between a spatially and the changing dynamics of technology few member economies and cities before attempting and skills requirements for expanding service sector to scale up some of these. APEC should select economies. The development of integrated city activities where member economies feel confident information and management systems is vital to that experimental outcomes will generate results improving logistics for supply chains and movement and positive learning outcomes that can be shared systems, streamlining administrative systems and or possibly adopted or adapted by other member developing higher levels of risk assessment and economies and cities where successful. Even when preparedness in cities. It is also crucial that these there are experimental failures, much can be learned partnerships and ITC systems are made more open from these. In urban development, the margins to micro business and the urban poor to enable between success and failure are often small; what them to gain equitable access to new knowledge, succeeds in one city will not always succeed in technology and markets in the transformation to another, and vice versa. more service sector driven economies. The economic planning ministries of APEC member economies The APEC Secretariat will need to form a Sustainable should develop dedicated units capable of analysing Urban Development group to coordinate activities urban economic systems and of fostering best to implement an urban agenda. The representatives practices in sustainable urban development. The of this group would be drawn from the economic focus should be on providing appropriate enabling planning ministries of the member economies or their frameworks for acquiring, adapting and implementing nearest equivalent having a strategic overview of city best practices through supporting effective infrastructure needs. partnerships with cities, communities and the private The group would report direct to the Senior Officials sector. The implementation of best practices should Meeting owing to its cross-cutting nature and the extend across the various systems – planning; project potential involvement of several committees of APEC. development and assessment; project procurement; These activities would fall into two main and related and finance. Improving only one area is unlikely areas. The first would entail the formation of advisory to improve outcomes. APEC should support the groups for the five agenda areas (see Figure ES.2). development of such capacity. Responsible ministries These groups would be voluntary, but specific studies should tap the substantial body of expertise in could be undertaken with groups – depending on the academic and policy institutions. availability of funds. They should meet at least yearly The following section provides a suggested roadmap and at these meetings, the focus should be on a of how such support could be organized. particular topic – which can then be documented as a knowledge product. Roadmap for Building APEC Better The second activity area would concentrate on the Partnerships for Inclusive and priority actions for partnership initiatives. Again, Sustainable Urban Growth depending on the funding available, an ‘Initiative Secretariat’ could be established. This secretariat In shaping a roadmap to move forward on an would have two primary functions. The first would be agenda for Building Better Partnerships for to service the work of the initiatives and the second Inclusive and Sustainable Urban Growth of Cities would be to act as a repository for data on APEC in the Region, it is essential, given APEC’s pivotal urban systems.

Introduction xlix Figure ES.4 Roadmap for a Strategy for an Urban Agenda for Building Better Partnerships for Inclusive and Sustainable Urban Growth in the APEC Region.

Senior Officials Meeting (SOM)

APEC SECRETARIAT

APEC Sustainable Urban Development Partnership

Agenda Advisory Groups Initiative Partnership Secretariat Economy, Physical Development Social, Environmental, Governance Lift Economic Strategic Performance of Cities Infrastructure City Information Data Sustainable Financing Sustainable Urban Form Development

Public-Private Group Region A, Public-Private Group Region B, Others Member Economy X Member Economy Y

Source: Authors

Conclusions It cannot be left to the largely under-resourced cities themselves. This report has highlighted many good examples of sustainable development practices and partnerships While the expansion and development of trade between cities in the APEC region. The region’s are important to support the growth of economies cities, however, still have many challenges to and cities in the region, new models of economic overcome to become more sustainable. To address development with a stronger focus on endogenous these challenges will require changes to the ways growth will be necessary to create the jobs, business, governance and trade function; a greater investment opportunities and impact the changes focus on sustainable use of resources; investment technology will have on them. Technology offers a tool in people; and a more collaborative approach to to improve the sustainable development of cities in developing innovative solutions that will ensure the the region, but will not tackle all of their challenges. sustainable development of cities in the region. Finally, the report has highlighted many promising It requires cities to move to green platforms of initiatives by APEC member economies and cities to production, greater inclusiveness and involvement work with different levels of government, business in public decision-making, and a higher level of and communities in developing better and more consciousness in communities about providing for sustainable cities through a range of partnerships. the needs of future generations. Because of the Partnerships offer one avenue of using precious importance of city economies to the central economy, resources more wisely in developing and managing the issue of sustainable urban development is one cities. Partnerships are a valuable mechanism for to be addressed at the highest level of government. the sustainable development of cities in the APEC

l Partnerships for the Sustainable Development of Cities in the APEC Region region. They can be expected to occur on many RECOMMENDATIONS different levels across the region. They include but go The report makes the following recommendations: far beyond the dissemination of information. Effective partnerships help cities solve problems • APEC, through the Friends of the Chair meetings and catalyze investment – both in public facilities and on urban issues, should create an initiative in private enterprise. APEC, as a forum representing aimed at Building Better Partnerships for the interests of governments, can play an influential Inclusive and Sustainable Urban Growth of role in fostering the development of partnerships Cities in the Region. between economies and cities, particularly in • The APEC Secretariat is mandated by the facilitating the sharing of knowledge, innovation, and Friends of the Chair to implement the four key ideas for improving the management, development partnership initiatives and the collaborative and transitioning of cities. It is vital that APEC takes arrangements required for better data this up as part of an initiative for Building Better collection. Partnerships for Inclusive and Sustainable Urban Growth of Cities in the Region. • The APEC Secretariat publishes this report to support the launch of the Building Better Partnerships for Inclusive and Sustainable Urban Growth of Cities in the Region initiative

Introduction li NEW AGENDA FOR SUSTAINABLE DEVELOPMENT OF APEC CITIES 1Brian H. Roberts, Michael Lindfield and Florian Steinberg The economies of the Asia-Pacific region form the percent per annum, which makes it almost impossible largest geographic concentration of people, wealth, to meet demand for housing, infrastructure and basic cities and natural resources on earth. The region has services. some of the fastest-growing and most developed In 2014, APEC released a discussion paper outlining economies in the world. Its impressive development a framework for an Asia-Pacific Partnership to has reduced greatly levels of poverty and brought Shape the Future of Urbanization and Sustainable many benefits to people living and investing in the City Development.1 The paper sought to bring to region, but development has also created problems the attention of APEC member economies the critical and challenges of a physical, economic, social, role that could be played by better management of environmental and governance nature. APEC can urbanization and city development, for the future play a key role in bringing governments and business prosperity and sustainable development of the region. together to meet these challenges and help make the development of cities in the region more sustainable. The discussion paper called for the adoption of a new agenda for APEC to make the region’s cities Overcoming the challenges will be difficult; and better more sustainable, by making them better places in linkages, partnerships, coordination and collaboration which to live, learn, enjoy, invest and do business. between governments and business at various levels The agenda calls for creative, collaborative and of government, along with governance arrangements innovative solutions and thinking; new forms of involving multilateral organizations, will be necessary. partnerships for the development of the region’s The Asia-Pacific is vast, with 46 economies spread cities; together with new policies and strategies to around the Pacific Ocean rim. Distances and travel improve the management of urban and economic times between cities and economies in the region development. It calls for greater inclusiveness, are substantial. Despite this, APEC economies are equity, and engagement of women and the poor in becoming increasingly interconnected and dependent the management and development of cities. These on each other for their growth, development, trade, elements are essential to advance the development investment, and security. of cities in the region. With over 75 percent of gross domestic product The discussion paper set out why there is a need for (GDP) and jobs produced by cities, the future an Asia-Pacific Partnership to address urbanization of the APEC region depends on the sustainable and sustainable city development. It drew on a development of its cities. However, the population series of working papers on five cities and four urban of some of Asia’s cities is growing at more than 5 corridors, highlighting important lessons about the

Figure 1.1 Asia-Pacific Region and APEC Member Economies

Source: APEC, 2014.

New Agenda for Sustainable Development of APEC Cities 3 ways cities in the region were addressing urbanization and sustainable development issues.2 The role of Partnerships are part of the new innovation and partnerships in identifying solutions Agenda for the Sustainable was stressed. Development of APEC Cities The working papers provided valuable insights into sustainability initiatives by cities in the region, involving partnership arrangements to support sustainable development of cities, and presents the framework urban development. APEC saw merit in developing used for the presentation of the case studies which these working papers further as exemplars of good are presented as separate chapters. The rationale practice, and to conduct some additional studies which for selection of the cities, metropolitan regions and would expand upon different aspects of sustainability corridor studies is discussed later in the chapter. The in areas of urban governance, finance, planning and closing chapter draws together the findings, learning development, social and community needs provision, and insights gained from the case studies. It draws and environmental management. conclusions about the benefits of using partnerships to This book presents a series of case studies that facilitate sustainable urban development projects and describe initiatives and partnerships to support the programmes for the region’s cities. Finally, it outlines sustainable development of cities in the APEC region. a potential role for APEC to support good practice It commences with a profile of urbanization and cities partnerships for sustainable urban development in the in the region, discusses some challenges facing the Asia-Pacific region.

1.1 URBANIZATION IN THE REGIONAL CONTEXT

Urbanization – the process leading to the greater are urbanizing rapidly. Fourteen of the world’s 37 spatial concentration of people and economic megacities are in the Asia-Pacific region. activities in urban settlements – has been occurring Table 1.1 shows urban population growth and for centuries. At the turn of the twentieth century, expected trends to 2050 for APEC member an estimated 15 percent of the world’s population economies. The population growth rates of cities lived in cities.3,4 Since then, the urban population across the region’s economies vary significantly. The has risen to 53 percent of the global population.5 current average urbanization growth rate for APEC Unique to the APEC region is the speed and scale at member economies is around 1.8 percent per annum. which urbanization has occurred, especially in Asian This is projected to fall to 0.3 percent by 2050. economies. Urbanization has boosted productivity in all APEC economies, driven by the liberalization Urban growth rates of APEC member economies of world trade and capital markets and, increasingly, in North and South America are generally much by labour markets. However, economic gains have lower than those in Asia, Oceania, and Australasia. come with social and environmental costs, which are Economies like Japan have a negative urbanization impacting on the productivity and liveability of cities in rate, with their population in decline. Many of the the region, at both local and global levels. developed economies of the region will continue to grow at over 0.6 percent per annum due to high Over the next 35 years to 2050, an unprecedented levels of international migration. The Asian APEC increase will occur in the urban population in the APEC member economies’ urban growth rates will expand at region. The region currently accounts for around 46 much higher rates, generally over 2 percent. This will percent of the world’s urban population, or 1.8 billion challenge their ability to provide services. people. Currently, around 60 percent of the region’s population live in urban areas; this is expected to reach 77 percent by 2050. By 2050, the urban population is expected to increase to 2.4 billion. Some economies are more than 80 percent urbanized; and many others

4 Partnerships for the Sustainable Development of Cities in the APEC Region Table 1.1 Urban Population of APEC Member Economies, millions, 2000–2050