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DRAFT OUTLINE OF THE GLOBAL AGENDA OF LOCAL AND REGIONAL

GOVERNMENTS FOR HABITAT III


This document is an initial outline of the main points to cover (and develop further) for the
Global Agenda of Local and Regional Governments for Habitat III. Its purpose is to stimulate
debate on: whether this is a compelling story for local and regional governments to tell the
world; whether any issues are missing or unclear; whether the approach taken to each
issue is appropriate or should be reformulated. It is a live, working document, open to
comments, criticisms and contributions.

Local and regional governments as levers of change in the future development


agenda
1.

The world has changed since Habitat II. Urbanization, globalization, the threat of
climate change, increasing inequalities, impact of new technologies and citizen
demands for democracy are reshaping our societies and our planet.

2.

Economic globalization has changed urban and territorial geography, which now spans
from small villages to megacities in an immense world web interconnected by new
information and communications technologies. But not everyone is benefiting from
these new opportunities. The inequalities created by the current model of development
are generating new gaps and increasing old ones. This model also has dramatic
consequences on the environment: pollution, natural resource depletion,
impoverishment of biodiversity, climate change, and the increasing impact of natural
disasters on our cities and territories.

3.

The pace of change will increase over the next two to three decades; while the rural
population will decline, the urban population will increase by 60%, at which point two
thirds of humanity will be urban. With the current model of development, urbanized
areas will triple in the next two decades with dramatic impacts on environment and
the quality of life of our communities.

4.

Our current pattern of development is incompatible with planetary boundaries. New


patterns of consumption and production are essential for sustainable development.
And the time available to make these changes and prevent irreparable damage to our
planet is running out. The next twenty years will critical. We need a structural
change in how we approach development.

5.

In this increasingly urbanized, interconnected world, local and regional governments


are uniquely placed to put people at the center of development agenda and, thereby,
to act as levers of change. As the level of government closest to the people, we can
listen to and understand the priorities of all sectors of our communities, including the
most marginalized, and adapt and target development policies accordingly. As public
elected authorities, we also have a democratic mandate to take action, and can be
held to account by our citizens if we fail to carry out our responsibilities.

6.
a)

To fulfil our potential, we propose taking action in five areas:


Lead local coalitions to develop a shared vision for the future of our cities:
elected local leaders are uniquely placed to develop a strategic vision and plan in
partnership with citizens and public and private partners to make more sustainable,
inclusive, resilient and safe cities (SDG). We can help to adapt models of
governance to the needs of our own urban areas; regulate and defend the commons
and mobilize local resources to finance sustainable development.

b) Renew the social contract and strengthen local democracy: local and
regional governments are on the frontline of strengthening democracy at local level.
We are in a unique position to promote citizen participation in the management of
local affairs, particularly the inclusion and empowerment of women in local public life.
We can also facilitate the participation of young people, minorities and marginalized
groups, and ensure accountability and transparency in local governance. By
supporting democratic debate and multi-stakeholder dialogue, we can define and
implement policies and strategies to tackle all forms of exclusions and reduce
inequalities
c) Connect cities and regions to unlock local potential: local and regional
governments can use our knowledge of local actors and of the opportunities in our
cities and regions to boost economic development and environmental sustainability.
This territorial approach to development pays special attention to more equitable
urban-rural linkages; the role of intermediary cities in structuring local markets and
the delivery of basic services in their hinterlands, and the strengthening of the
governance and competitiveness of metropolitan and megacities.
d) Drive bottom-up national development: the territorial approach to the
development also encourages a bottom-up approach to national development. Cities
are increasingly the motors of national economies; promoting innovation, creativity
and connectivity in cities and territories should be at the top of every national
government agenda. Local governments are willing and committed to work with
national governments to create more effective partnerships (multilevel governance),
based on the principle of subsidiarity. This requires the decentralization of national
development policies, particularly national urban policies, and adequate access to
finances for subnational governments. Territorial cohesion should be ensured by
means of equalization policies.
e)

Take a seat at the global table and cooperate in a spirit of solidarity: local
and regional governments are committed to build on our legacy of decentralized
cooperation and international solidarity. Through this cooperation the links between
local and regional governments are strengthened and citizens gain shared values and
understanding of the importance of peace, human dignity and respect for one
another. Local and regional governments are acting locally to address global
challenges (climate change, peace-building, development cooperation) and to
manage the impact of global phenomena at local level (the integration of migrants,
the mediation of globalizing economic and cultural forces). We can contribute to
more transparent and accountable global governance if we are recognized as
partners in international and regional institutions and included in international
development policies.

The five dimensions of local and regional government development agenda


I.

Lead local coalitions to develop a shared vision for the future of our cities

7.

In this increasingly urbanized, interconnected world, local and regional governments


are uniquely placed to put people at the center of development agenda and,
thereby, to act as levers of change. As the level of government closest to the
people, we can listen to and understand the priorities of all sectors of our
communities, including the most marginalized, and adapt and target development
policies accordingly. As public elected authorities, we also have a democratic
mandate to take action, and can be held to account by our citizens if we fail to carry
out our responsibilities.

8.

Urbanization is among the most significant global trends of the 21 st century and is
dramatically transforming our societies. Its potential to drive sustainable global
development has been widely recognized. However, current models of urbanization
are not sustainable in many respects (e.g. unplanned cities, urban sprawl, social
exclusion, and environmental degradation).

9.

Local and regional authorities are well-placed to lead the sustainable development of
urban areas and territories. Our democratic mandate and knowledge of local issues
put us in a unique position to develop a strategic vision with our communities
that integrates the four pillars of development (social, economic, environmental and
cultural). We work best by creating broad local coalitions to shape this sustainable
urban future. Successful cities have developed comprehensive and flexible planning
strategies to respond to the increasing complexity and speed of urbanization.

10. Local and regional governments can learn from these experiences to promote new
models of governance for expanding mega cities and metropolitan areas,
peripheral cities, intermediary cities and towns. These new models of governance
should promote innovative planning and coordination mechanisms that enable
sustainable urban and regional development. E.g. strategic planning can generate a
process to bring together broad coalitions of all sectors (civil society, the private
sector, and public institutions) and create a shared vision, empower local institutions
and communities to guide urban growth, boost economic development and
strengthen environmental sustainability. Flexible planning strategies can help cities
to adapt faster to a changing social and economic environment (e.g. aging
population, youth bulge, economic restructuring, and the transition toward a green
economy).
11. Cities can contribute to new patterns of consumption and production.
Mayors and other local elected leaders are seeking to make our cities more compact,
socially and economically mixed, with walkable local environments, universal access
to public services, mass public transport and resilient local communities (both to
natural risks, social and economic threats). We also hope to reduce the
environmental footprint and fossil-fuel dependence of our communities and use new
technologies to make cities smarter and more energy efficient.
12. One of our core goals as local and regional governments is to regulate and defend
the commons, e.g. water, air, land use, public services and public space. We have
ambitions to guide urban development through land use regulation and management
and by improving our regulation of the real estate market.
13. We would like to be able to finance the development of our cities by mobilizing
local and national resources and, given the growing scarcity of resources,
improving the management of our assets and heritage. Massive public and
private investments will be necessary to renew old infrastructures, particularly to

cope with the impact of climate change and to build the new cities that will host 2.5
billion of new urban residents during next three decades, mostly in developing
countries.
14. To adapt these principles and prepare to face the challenges of urbanization, local
governments, particularly in low-income countries, will require one anothers
support and that of national governments and of the international
community. We need to act now to anticipate these pressures because it is always
more complex and costly to intervene to transform or improve precarious
settlements or to upgrade slums once they already exist.
II.

Renew the social contract and strengthen local democracy

15. Growing inequalities (between and within countries and territories) is a global
challenge. Predictions of international institutions indicate that this trend will worsen
over the coming decades. It is a source of accumulated social frustrations and of
increasing popular unrest, particularly in urban areas.
16. In cities, inequalities create new forms of poverty and exclusion, for example, in
urban peripheries in developed countries, and exacerbate slum expansion in
developing countries. Slum-dwellers make up more than 50% of urban population in
some developing countries. Gender inequalities persist globally, denying the full
political, economic, social and cultural potential of half of the worlds population.
Intergenerational inequalities are increasing in all regions, particularly in developing
countries where young people make up a substantial part of the population. The
growth of migration creates new challenges of integration and inclusion, as well as
opportunities for exchange and innovation. Urban violence blights the lives of many
urban-dwellers, and acts as a major impediment to development, prosperity and
wellbeing.
17. The retreat of the welfare state means that local policies will be more necessary in
the future to tackle social and economic exclusion and promote community cohesion.
While the powers and resources of local and regional governments are, in general,
inadequate to tackle many contemporary forms of inequalities, we are in the position
to address others, particularly if we work in partnership with the communities we
serve. We will not abdicate our responsibility to tackle social exclusion,
reduce inequalities and promote social justice.
18. With the appropriate support, local and regional governments are in a strong
position to identify inequalities in our communities and target policies to address
them efficiently and empower all inhabitants to fully participate in local political,
social, economic and cultural life.
19. Local government initiatives to tackle social exclusion and urban violence can
take many forms, e.g. neighbourhood regeneration, social housing, support the
integration of migrants, targeted social assistance (e.g. for the unemployed or
elderly), youth programmes (e.g. vocational training, jobs, post-gang reinsertion)
and initiatives to tackle the digital divide. Slum-upgrading and support to the
informal sector are most effective when they are developed in partnership with
NGOs and local communities.
20. Local and regional governments are committed to the principle of gender sensitive
local governance, mindful of the specific needs of women and men and fostering
equal participation in local decision making and policy definition.

21. Local and regional governments want to draw on the meaning and legitimacy of
our local cultures to engage and mobilize citizens to collaborate in development in
a way that works for them. The Agenda 21 for culture shows how local culture can
be harnessed for sustainable development.
22. Local democracy and citizen participation in local decision making are also
essential to foster a strong feeling of belonging, particularly in contexts of social and
cultural diversity. Local governments have developed recognized innovative
approaches to local democracy (e.g. participatory planning and budgeting,
neighborhood committees, digital democracy and referendums). We should support
civil society rights to self-organize, facilitate their access to local government
information, improve transparency to enable citizens to hold sub-national
governments to account, and tackle corruption.
23. A human rights approach in local policies is a basic condition to guarantee
peoples ability to fully take up active local citizenship. An example of this approach
can be found in the Global Charter-Agenda for Human Rights in the City, adopted by
UCLG in 2011 (right to participate in political and city management process, civic
peace and safety, gender equality, accessible public services, and housing, etc.)
III.

Connecting cities and regions to unlock local potential and promote a


territorial approach to development

24. Economic development and environmental sustainability are at the centre of the
global and local development agendas. How will the world create decent jobs and
opportunities for 2.5 billion new urban dwellers, when the unemployment of young
people and informality are already widespread in many regions? How can the world
produce enough food and drinkable water for 9 billion human beings? The impacts of
these global challenges are experienced at the level of villages, towns, cities and
regions.
25. Local and regional governments can help to unlock the local potential of cities and
territories to drive economic growth in an environmentally sustainable way by
adopting a territorial approach to development. A successful territorial approach
is one that integrates the different dimensions of development, strengthens
urban-rural linkages, brings together local and national institutions and actors to
define priorities, plan and implement joint strategies to support economic growth in
a way that is compatible with environmental sustainability and a better quality of
life.
26. Sub-national governments
development policies:

are

increasingly

involved

in

local

economic

a) Many local and regional governments actively promote the attractiveness and
dynamism of their territories to attract and expand firms and create quality jobs.
In OECD countries, they manage around 70% of total public investments.
b) We contribute to increase economic productivity (e.g. good infrastructures
and public services), as well as a business friendly policies (e.g. procurement and
contracting policies favouring local businesses) and services to enhance economic
activities and innovation (e.g. incubators of enterprises, training, support to
MSME and informal sector).
c) Nonetheless, we do not want to be forced into a dynamic of competition against
one another. Attractiveness, productivity and jobs should not be the result of

reduced social,
deregulation.

environmental,

and

labor

standards

or

low

taxes

and

d) These local economic development policies are instrumental to an effective


territorial approach of development and to complement national economic
strategies, but we require an appropriate institutional framework and
support from national governments.
27. A territorial approach to development is one that promotes urban and rural
interaction and complementarities and strengthens urban-rural linkages:
a) Urban and rural local governments can foster socio-economic development and
environmental sustainability by facilitating dialogue and cooperation, using joint
planning instruments and regional development policies, ensuring food security,
access to services, jobs and amenities in functionally integrated urban and rural
areas.
b) A territorial approach to development requires a stronger engagement of local
and regional authorities in horizontal cooperation. This should be accompanied
by national policies and regulations that encourage rural-urban partnerships
and facilitate sub-national government cooperation.
28. Global urbanization is seeing an increasing variety of forms and sizes of urban areas,
each with its distinct advantages and limitations. This necessitates, more than ever
before, a localized approach to city planning and policy-making. Such an approach
implies each local government identifying and addressing the unique resources and
needs of its jurisdiction in collaboration with the other local governments in the
same urban area:
a) Mega-cities and metropolitan areas are nodes where global and regional flows
of people, capital, goods and information combine, becoming the main engines of
development. However, increasing negative externalities and management
problems can erode their economic advantage of economic of scale, and degrade
quality of life, particularly in peripheral marginalized urban areas.
b) Intermediary cities are where most of the future urban expansion will take
place, and therefore play an increasing role in supporting the development of
subnational economies and the emergence and development of local and regional
markets. However, they struggle with the rapid urbanization and accumulated
gaps with respect to larger cities (in basic services, infrastructures, connectivity,
job opportunities, etc.).
c) There is a pressing need to reduce these gaps between the largest and
intermediary
cities,
supported
by
adequate
territorial
approaches,
decentralization and equalization policies that strengthen their management
capacities and competitiveness.
29. This new urban geography creates opportunities, but also environmental
constraints (e.g. pollution, GHC emissions, natural resource depletion, and
impoverishment of biodiversity):
a) Many of our cities and territories are experiencing the increasing impact of
natural disasters and natural resources depletion (e.g. water stress, or air
quality degradation). All coastal cities and towns will be affected by sea-level rise.
b) Local and regional governments want to increase the resilience of our cities
and territories by addressing risk in planning and land management, tackling

the deficit of basic infrastructures and services, and promoting community


involvement in risk preparedness, particularly for more vulnerable groups.
c) Successful climate change adaptation and disaster risk reduction depend on the
strengthening of local and regional governments capacities and resources, and
on coordinated responses with civil society and other levels of government.
d) National climate change policies should focus on urban adaptation to climate
change and risk prevention and create a financial framework though which subnational governments can fund ambitious climate actions.

IV. Drive bottom-up national development


30. A territorial approach to the development is also instrumental in driving bottom-up
national development policies and strategies. Local and regional governments can
support national governments in achieving their goals by taking action on the
ground to foster local development. To harness local potential, national governments
must ensure an enabling environment in which local and regional governments can
experiment, innovate, and capitalize on the resources and points of competitive
advantage afforded by their locations and populations. The integrated management
of cities and a territorial approach to development cannot be achieved from outside
or from above. National and sub-national governments need to strengthen their
collaboration and take a more enduring, cooperative, flexible and integrated
approach to development. Sub-national governments need adequate and
effective powers, capacities and resources to develop innovative solutions
to local and national challenges.
31. After two to three decades of structural reforms, while local democracy has made
impressive progress in almost all regions of the world, effective decentralization
with empowered local authorities, are still unfulfilled promises in many countries.
32. Poorly implemented decentralization processes lead to ineffective multi-level
governance, weak planning processes, overlapping and economic inefficiencies that
undermine an integrated approach to development and waste resources.
33. In order to be effective, multilevel governance should be rooted in the
principle of subsidiarity, respect for local autonomy and genuine
partnership.
34. With regard to urbanization challenges, the world has a window of opportunity
in the next twenty years to promote a more sustainable development model (5th
IPCC Report, 2014):
a) Urban policy must be moved up the national agenda, within the framework
of reinforced cooperation with local and regional governments, to harmonize the
dynamics of urbanization with the overall process of national development and
cohesive territorial policies.
b) Sustainable financing for development is a major challenge, e.g. the
investments needed for urban infrastructure, land use, and energy are around
US$90 trillion, according to The New Climate Economy Report, 2014.
c) However, current financing and investment patterns will not deliver sustainable
development. Governments should mobilize adequate public financing and
create an enabling environment to attract investment. This will require a great

mobilization of domestic resources (public and private), and, in particular in


developing countries, a revision of taxes and financing mechanisms. National and
local governments need to join forces to mobilize domestic resources and tackled
tax evasion. International financing should complement these national efforts,
while limited ODA should be concentred in less developed countries and fragile
states.
d) Fiscal decentralization and improved local government capacities are
necessary to improve budget management, increase local resource mobilization
and create adequate mechanisms for financing (e.g. bonds, pooling funding,
crowdfunding). The distribution of national budgets, including equalization
mechanisms, should be improved to ensure an adequate distribution of national
wealth to support urban and territorial development.

V.

Take a seat at the global table and cooperate in a spirit of solidarity

35. Our century-old international municipal movement is playing an increasing role on


the international stage and is being increasingly being recognized as a partner in
development.
36. Peace and international solidarity were the first objectives of the international action
of local and regional governments. City-to-city cooperation has contributed to
keeping channels of dialogue and friendship even when at the level of national
governments the bridges were cut. We own to the long standing partnerships
between local governments around the world the promotion of the concept of
partnering as equals, later adopted by the international community that still
struggles to implement it fully despite recurrent calls for empowerment and
ownership proclaimed in the Paris Declaration, the Accra Agenda for Action, and the
Busan partnership on effective development cooperation.
37. Decentralized cooperation are open to a large range of opportunities and exchanges
between local institutions, including schools, health centers, civil society
organizations, the business sector, not forgetting local governments officials and
officers. Cities and regional governments contribute to educate citizens to support
international solidarity and cooperation for development. This education effort
should target particularly young people.
38. Subnational government initiatives at global level contribute to provide solutions
when states are at a deadlock. Increasingly, the work, vision and solutions of
subnational governments transcend local political confines and exert national and
global influence. At the same time, local leaders act to channel and mediate the
impact of global economic, environmental and cultural forces in our local
communities.
39. From local to global: Local and regional leaders act at local level to solve global
challenges (peace building, post-conflict and post-catastrophe cooperation, climate
change mitigation, global development agenda) and defend public goods (water,
land, coastal areas, ecosystems); e.g. Compact of Mayors to reduce GHC city
emissions and enhance resilience and the Global Task Force for the Post-2015
Agenda and toward Habitat III.
40. Global to local: local governments contribute to mitigate the impact of global
forces in our communities (economic and cultural globalization, migration, climate
change adaptation and resilience).

41. Global networks for cooperation: as mentioned above, local and regional
governments have a long tradition of mutual solidarity and decentralized
cooperation. In the coming years, local governments have committed to promote
networks and learning processes between cities and regions, strengthening southsouth cooperation and our coordination of initiatives to support the implementation
of the global development agenda and the new urban agenda that will be adopted in
Habitat III. Local and regional governments are convinced that effective
development cooperation would be better assured if at least 25 per cent of the ODA
were channeled through decentralized cooperation mechanisms that have been
successfully implemented by local and regional authorities around the world.
42. Global governance strengthening the recognition of subnational
governments: in the last decade, the global movement of local and regional
governments has made important steps in our recognition by international
institutions (e.g. European Union, Rio+20, GPEDC, Post-2015 Development Agenda
process).
43. Similarly, international financing institutions should recognize the role of subnational
governments. Such institutions should explore how they can directly support urban
and territorial development. ODA could be a lever to encourage sub sovereign
financing for urban and territorial development (basic infrastructures need
concessional rates and long-term repayment). Our access to Green Climate Fund
and Global Environmental Facility should be facilitated.
44. Local and regional governments will push for a qualitative leap in our recognition in
the institutions of global and regional governance over the coming years. Today we
have the same status as civil society organizations, and our access to UN and
multilateral processes is limited. Our democratic legitimacy as a sphere of
government should be recognized with a unique status in the UN and multilateral
system to contribute to a more democratic and accountable global system of
governance.

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