International Policy Workshop on Rural-Urban Poverty Linkages Hangzhou city, Zhejiang province, People’s Republic of China September 2-4, 2014 Rural-urban poverty linkages in small town development in the Mekong region Ramola Naik Singru Sr . Urban Development Consultant Urban Development and Water Division Southeast Asia Department, Asian Development Bank This presentation is an input to the international policy workshop on rural-urban linkages, Zhejiang, PRC on 2-4 September 2014. The views expressed in this presentation are those of the author, and do not necessarily reflect the views and policies of the organizers (the Asian Development Bank [ADB] and the International Poverty Reduction Center in China [IPRCC]), or ADB’s Board of Governors, o r the governments they represent. ADB and IPRCC do not guarantee the accuracy of the data and information in this paper.
Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 Overview • Asia’s urban challenge • Urbanization in Asia and Southeast Asia • Urban rural poverty • Spatial forms of urbanization • Understanding urban • Balanced regional urbanization through the development of second tier cities and secondary towns in Viet Nam 2
Economy Energy Cities produce 75% of GDP Cities use about 85% of energy Asian Drivers of economic growth Asia - 35% CO2 emissions URBAN Vulnerable to impacts of CC- Air pollution can have estimated 2%- Challenge inundation, sea level rise 4% negative impact on GDP Environment Climate Change
Asia’s Urban Challenge
Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 Why urbanization matters • Urbanizing Asia • Urban poverty is lower than rural • Services are better in urban areas • Urban productivity is more than 5.5 times that of rural areas Source: ADB 2011. Green Urbanization. Key Indicators 2012. Asian Development Bank. Manila 5
Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 Asia’s Urbanization - Features • Unprecedented • Fast Paced • Highest densities • New forms emerging • Mega-cities getting larger • Low starting base • High vulnerability to impacts of Climate Change Source: ADB 2011. Green Urbanization. Key Indicators 2012. Asian Development Bank. Manila
Vulnerable urban population in Asia Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014
Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 Understanding Urban • Minimum population • PHI- 1000 persons • VIE- 4000 persons • IND- 5000 persons • PHI – establishment with 100 • Non-agricultural employees employment base • VIE – 65% • IND – 75% (male) • Density • IND – 400 per/sq kms • Administrative status • VIE – centrally run, provincially run, district • PRC - 8
Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 Spatial forms of urbanization • Vertical growth • urban densification • Horizontal - Urban • Metropolitanization, villages Satellite • peri-urbanization town Peri Metro urban • suburban area city • Satellite towns Satellite town • Urban villages 9
Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 Spatial forms of urbanization Radial Growth Satellite city development Vinh City Center Yen Mixed use Residential MEGA Suburban Satellite Satellite CITY City city Ha Noi Peri Urban Satellite city 10
Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 Country Poverty Data -Poverty headcount at $1.25 and $ 2 a day Vietnam [VIE] Thailand [THA] Philippines [PHI] Malaysia [MAL] Lao PDR [LAO] Indonesia [INO] India [IND] China [PRC] Cambodia [CAM] Poverty headcount ratio at $2 a day (PPP) (% of population) SI.POV.2DAY Unit (0.0) 0 10 20 30 40 50 60 70 80 11 Poverty headcount ratio at $1.25 a day (PPP) (% of population) SI.POV.DDAY Unit (0.0) Source: created from World Bank 2014, Poverty and Inequality Database
Urban-rural poverty • Poverty rates are lower in urban areas but • Urban inequality higher than in rural areas • Incidence of poverty higher in small cities and towns than in large urban areas • Urban poor most vulnerable to environmental problems and impacts of extreme weather events and climate change. 12
Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 DIMENSIONS OF URBAN POVERTY • Employment insecurity, casual • Housing tenure insecurity work; unskilled labor • Inadequate housing, • Lack of access to job markets & overcrowded and unhygienic living conditions opportunities • Lack of access to Governance & • Inadequate access to water and sanitation services decision-making • Lack of access to solid waste • Macroeconomic crises facilities • High costs of living • Exposure to hazardous chemical • Cash Economy waste due to proximity to • Lack of safety nets & labor industries protection • Exposure to air and noise • Lack of assets pollution • Personal insecurity INCOME & ENVIRONMENT SOCIAL POVERTY POVERTY EDUCATION HEALTH POVERTY POVERTY • Constrained access to • Inadequate cash income Education, • Food insecurity and • Inability to afford school malnutrition expenses • Overcrowded and Unhygienic • Lack of access to schools living conditions • Exposure to crime & violence • Exposure to food • Lack of safe, affordable and contamination, air and noise reliable public transport pollution etc. 13 Source: Naik-Singru, R. and Lindfield, M. 2014. Inclusive Cities Toolkit. Asian Development Bank. Manila. Diagram is based on World Bank, 2002, A Sourcebook for Poverty Reduction Strategies , Vol. 2, Washington DC.
Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 Urbanization, growth and inequality • Greater employment opportunities : Rising incomes but growing disparity • High demand for land for development: Worsening access to land and housing – Low growth of public housing, non-compliance of regulations – Densification of slums – migration (renting, smaller houses) – Lack of affordable housing in city = growing urban sprawl and commuters – Greater risks from living in risk areas, growing intensity and frequency of disasters – flooding, cyclones, – Greater risks of tenure insecurity • Worsening access to services – Water stress in cities- poor worst affected – Insanitary environments – poor worst affected, – More income spent on survival services – water, commuting, housing, security, transport 14 14
Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 Urban poverty and slum poverty in Asia MDG Indicator 7.10: Proportion of urban population living in slums 15 The proportion of urban population living in slums is the percentage of the population living in a slum household that lack one or more of the following basic services: improved water, improved sanitation, durable housing, sufficient living area or security of tenure. 15
External factors affecting slum Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 population EMPLOYMENT SEASONAL MIGRATION INCOME SLUM POPULATION ENFORCEMENT RURAL 16 OF URBAN DEVELOPMENT LAND POLICY MANAGEMENT 16
Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 ADB Urban Operational Plan 2012-2020 Economy Environment Equity Competitive Cities Green Cities Inclusive Cities 17
What are Smart Systems? I NTEGRATED P LANNING AND M ANAGEMENT Innovative Finance U RBAN -R URAL LINKED P OLICIES Institutional Structures L AND M ANAGEMENT Smart S MART G OVERNANCE Governance I NNOVATIVE F INANCING I NSTITUTIONAL S TRUCTURES Urban- AND C APACITY Rural Policies Integrated Planning and Management
Secondary Cities Development Program ( Gr EEE n cities)
VIETNAM – Smart Systems Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 • Average economic GOV growth over 7% per Decentralization Policy annum, • Doi Moi - Economic Framework Master Plan for Urban restructuring towards Development in industrialization, Vietnam 2020 Sector • Urbanization pressures Orientation Plans – • Pollution, loss of drainage, natural capital, low transport, etc. returns on public National Action Plan on Climate investments, low Socio-Economic Change 2012 - economic development 2020 Strategy 2011- competitiveness. 2020 • Natural disasters and National Green climate-induced Growth Strategy impacts 2012 20
Viet Nam Urban Centers Regional balanced urbanization through second tier city development 21 Ramola Naik Singru, 2014
Regional balanced urbanization through second tier city development Ramola Naik Singru, 2014 Viet Nam model of urbanization • Development of provincial capital cities or second tier cities • Established governance systems and regional primacy • Unlock the economy of the rural hinterlands • Providing connectivity and opportunity for growth • Strengthening rural- urban linkages 22
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