The State of Pacific Towns and Cities Urbanization in ADB’s Pacific Developing Member Countries This report investigates urbanization trends across the 14 Pacific developing member countries of the Asian Development Bank. It examines the history of Pacific urbanization, current state Pacifi c Studies Series of infrastructure and service provision within urban areas, and systems of urban governance. It presents key actions that Pacific countries need to take to manage urban growth, to meet the needs of their urban citizens, and to benefit from the potential of the urban economy. About the Asian Development Bank ADB’s vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries reduce poverty and improve the quality of life of their people. Despite the region’s many successes, it remains home to two-thirds of the world’s poor: 1.8 billion people who live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration. Based in Manila, ADB is owned by 67 members, including 48 from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. The State of Pacifi c Towns and Cities URBANIZATION IN ADB’s PACIFIC DEVELOPING MEMBER COUNTRIES Asian Development Bank 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines www.adb.org Printed on recycled paper Printed in the Philippines Pacif ic Studies Series The State of Pacifi c Towns and Cities URBANIZATION IN ADB’s PACIFIC DEVELOPING MEMBER COUNTRIES © 2012 Asian Development Bank All rights reserved. Published in 2012. Printed in the Philippines. ISBN 978-92-9092-870-6 (Print), 978-92-9092-871-3 (PDF) Publication Stock No. RPS125025 Cataloging-In-Publication Data. Asian Development Bank. The state of Pacific towns and cities: Urbanization in ADB’s Pacific developing member countries. Mandaluyong City, Philippines: Asian Development Bank, 2012. 1. Urbanization. 2. Pacific. I. Asian Development Bank. The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. ADB encourages printing or copying information exclusively for personal and noncommercial use with proper acknowledgment of ADB. Users are restricted from reselling, redistributing, or creating derivative works for commercial purposes without the express, written consent of ADB. Cover photo: ADB photo library. Note: In this report, “$” refers to US dollars unless otherwise stated. Asian Development Bank 6 ADB avenue, Mandaluyong City 1550 Metro Manila, Philippines Tel +63 2 632 4444 Fax +63 2 636 2444 www.adb.org For orders, please contact: Department of External Relations Fax +63 2 636 2648 [email protected] Printed on recycled paper Contents Tables, Figures, Boxes, Map, and Appendixes Foreword vi Acknowledgments viii Abbreviations vii Key Terminologies Used in Th is Report ix Key Messages of Th is Report xiii Introduction 1 Th e Nature of Pacifi c Urbanization 7 Current Trends in Pacifi c Urbanization 23 Features of Pacifi c Urban Areas 31 Urban Governance in the Pacifi c 61 Responses to Pacifi c Urbanization Challenges 77 Strengthening Urban Governance in the Pacifi c 95 References 131 Appendixes 1 Pacifi c DMC Urbanization Indicators, 2011 105 2 Country Case Studies 106 3 Questionnaire 125 | iii Tables, Figures, Boxes, and Map Tables 1 Urbanization in Pacifi c DMCs: Th e Rural–Urban Continuum 20 2 Key Pacifi c Population Indicators, 2011 24 3 Urban and Peri-Urban Population in Selected Urban Municipalities in Fiji, 2007 28 4 Sectoral Composition of GDP in Selected Pacifi c DMCs, 1990, 2000, and 2010 33 5 Urban Water Supply Coverage in Selected Pacifi c DMCs, 1990, 2002, and 2015 47 6 Urban Sanitation Coverage in Selected Pacifi c DMCs, 1990, 2002, and 2015 49 7 Climate Change and Natural Disaster Impacts in Pacifi c DMCs 57 8 Local Governance Structures in Selected Pacifi c DMCs 63 9 Th e Impact of Urban Management and Planning Systems on Achieving Desired Urban Outcomes in Tonga 74 10 Checklist for Identifying Possible National and Local Level Entry Points for Reform of Urban Management Systems in the Pacifi c 104 Figures 1 Rural–Urban Migration as a Driver of Social, Economic, and Physical Change 16 2 Percentage Share of Pacifi c Urban and Rural Population 24 3 Percentage Share of Rural and Urban Population in Melanesia, Micronesia, and Polynesia 26 4 Urban and Peri-Urban Populations in Selected Urban Municipalities in Fiji 28 5 Incidence of Rural and Urban Poverty, Selected Years 39 6 Land Leased from Landowners by Government in Betio, South Tarawa, Kiribati 42 7 Factors Determining Security of Land Tenure in Pacifi c DMCs 47 8 Functions of the Urban Management and Planning System in Samoa 65 9 Major Challenges of Managing Pacifi c Urbanization 99 Boxes 1 Th e Changing Face of Pacifi c Island Life 2 2 Recognizing Urban Management as a National and Regional Development Priority 5 3 Th e Defi nition of “Urban” in the Pacifi c Context 11 4 Levuka: Colonial Capital of Fiji 12 5 Th e Functions of the British Colonial Offi ce 13 6 New Forms of Villages and Social Structure: Urbanization on Kiritimati Island 19 7 Tourism Supports the Urban Economy of Port Vila, Vanuatu 32 8 Th e Diversity of Informal Urban Economic Activities in Four Mile Settlement, Port Moresby 36 9 Th e Importance of the Informal Economy to Kiritimati Island, Kiribati 36 10 Squatter and Informal Settlements in the Pacifi c Context 40 11 Squatting on Government Leased Lands in South Tarawa 42 12 Life’s not getting any better—Port Moresby 43 13 Water Supply in Dili, Timor-Leste 48 iv | Tables, Figures, Boxes, and Maps 14 Th e Urban Environment and Health in South Tarawa 52 15 Urban Lifestyle and Health in South Tarawa 52 16 Th reats to Sustainability of Urban Water Reserves in South Tarawa 55 17 Rising Sea Level Forces a Village in Fiji to Move 58 18 Operational Defi nition of Urban Management and Urban Planning in Samoa 64 19 Initiatives under the Vaitele Urban Governance Pilot Project in Apia 66 20 Tonga’s Urban Planning and Management System 67 21 Th e Challenges of Local Government in Service and Infrastructure Delivery 70 22 Th e Urban Development Program for South Tarawa, Kiribati 78 23 Urbanization and the Australian Aid Program: Th e Review of Aid Eff ectiveness 79 24 Partnership between Mount Hagen Urban Local Level Government, Papua New Guinea; and Orange City Council, New South Wales, Australia 81 25 Th e Pacifi c Region Infrastructure Facility 82 26 Th e Pacifi c Urban Agenda Regional Action Plan 2008–2012 85 27 Toward Inclusive Urban Development in the Greater Suva Urban Area 87 28 Th e National Urbanisation Policy for Papua New Guinea, 2010–2030 90 Map Th e Pacifi c’s Th ree Subregional Groupings: Melanesia, Micronesia, and Polynesia 8 | v Foreword In late 2009, the Asian Development Bank (ADB) launched a new Pacifi c Approach, a framework for its role in the development of its 14 Pacifi c developing member countries (DMCs). Th e Pacifi c Approach expresses concern for the poorly managed urbanization processes in the Pacifi c DMCs and recognizes the strain urbanization has placed on urban infrastructure and services. Selecting urban development as one of its operational priorities, the Pacifi c Approach commits ADB to supporting good urban development through the supply and delivery of urban services in the Pacifi c. Th is publication examines the urbanization process in the Pacifi c, the condition of urban infrastructure and services across the region, and the urban governance and management systems in place to manage urban development. Th e report points to ways in which ADB, Pacifi c DMC governments, and other urban stakeholders can improve urban governance, management, and development within the Pacifi c. Th is report expands on the earlier publication of the same title which presented the highlights of the research on urbanization in the Pacifi c. Th is report was prepared by ADB’s Pacifi c Department under the supervision of Andrea Iffl and, director of the Urban, Social Development and Public Management Division. Andrea Roberts, urban development specialist, led the preparation and publication. Consultant Paul Jones, associate professor, Urban and Regional Planning Program, Faculty of Architecture, Design and Planning, University of Sydney, conducted the research and authored the report. Lynette Mallery edited, while Leticia de Leon proofread the publication. Emma Veve provided editorial assistance, Cecil Caparas coordinated the publishing process, and Emerlinda Macalintal provided overall administrative assistance. Xianbin Yao Director General Pacifi c Department vi | Abbreviations ADB – Asian Development Bank AusAID – Australian Agency for International Development CDIA – Cities Development Initiative for Asia CLGF – Commonwealth Local Government Forum DMC – developing member country EU – European Union FSM – Federated