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Urban Development

Why public transit is a key economic issue for growing cities

MD Staff

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We’d love to take our daily commute for granted. Except, we can’t. It is essential that we continue to make public transportation as efficient as possible for commuters.

Over the decades, as a nation we have put investing in our transportation infrastructure, particularly our bus and rail systems, on the back burner. The result: Today’s public transit backlog sits at $90 billion, according to the U.S. Department of Transportation. This is a missed opportunity to make our public transportation systems more efficient and our cities more productive, and it has serious economic implications.

For instance, a lack of investment in our public transportation infrastructure costs the U.S. economy $340 billion in revenue over a six-year period, according to the study, “The Economic Cost of Failing to Modernize Public Transportation.” The study was conducted by the Economic Development Research Group Inc. for APTA.

“Our failure as a nation to address America’s public transit modernization needs has wide-ranging negative effects,” says APTA president and CEO Paul P. Skoutelas, “because lost time in travel makes a region’s economy less productive.”

Failing to meet growing public transit needs

As the number of U.S. workers continues to rise, so do the pressures on all areas of our infrastructure.

Since 1995, the U.S. has seen a 42 percent rise in public transit miles traveled. Despite that, needed improvements to our bus and rail assets have not kept pace with growth, the study concludes. Furthermore, the study shows how, as the U.S. fails to invest in the upkeep and maintenance in the nation’s public transit assets, it leads to service interruptions and lost time, which leads to lost wages.

Dorval R. Carter Jr., president of the Chicago Transit Authority, oversees a legacy rail system that’s more than 100 years old, and faces the challenge of fixing or replacing aging infrastructure.

“Parts of our rail system date back to the late 1800s,” Carter says, “we are facing an unmet — and growing — capital need of nearly $13 billion and meeting it has become even more challenging given funding constraints not only at the federal level, but especially at the state and local levels.”

The impact of public transit on local economies

Service interruptions and delays because America has not kept up with transit investments have a direct and immediate effect on the economy. If workers can’t get to work on time, it affects their productivity.

When an aging road and rail system adds time and delays to commutes, that puts the brakes on economic output.

“Based on recent surveys of our riders in Central Ohio, we know 70 percent of our customers rely on our service to reach work,” says Joanna Pinkerton, president and CEO of the Central Ohio Transit Authority. “This is just one example of why it is vital to continue investment in public transportation infrastructure to support residents and the economy.”

Pinkerton adds that over the next 30 years, Central Ohio’s public transit system will have to evolve to prepare for 1 million additional residents and 600,000 jobs.

The quality of a city’s public transportation system is an important factor for companies that are looking to expand or relocate. For example, in 2014, Atlanta’s public transportation system played a role in State Farm Insurance’s bid to locate 8,000 new jobs there. One year ago, when Amazon asked cities to create proposals for its second headquarters, the online retailer indicated that it wanted to hear from cities with access to public transit.

The good news is, Congress has allocated a spending increase for the 2018 fiscal year budget for public transit.

“While this is a positive step forward in helping to address the nation’s aging public transit infrastructure,” Skoutelas says, “this momentum must be maintained by providing similar funding levels for 2019.”

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Urban Development

As urbanization grows, cities unveil sustainable development solutions on World Day

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Over half of the world’s population now live in cities, with numbers expected to double by 2050, but while urbanization poses serious challenges, cities can also be powerhouses for sustainable development; something the UN is spotlighting on World Cities Day, marked 31 October. 

The UN Educational, Scientific and Cultural Organisation (UNESCO) will host a celebration at its Paris Headquarters on Thursday, convening representatives from all corners of the world for discussions on how cities can combat the climate crisis, create more inclusive urban spaces, and contribute to technical innovation. 

Cities provide a wealth of opportunities, jobs included, and generate over 80 per cent of gross national product across the globe, according to UN estimates. Urban areas also account for between 60 and 80 per cent of all energy consumption, despite only occupying three per cent of the planet’s surface and are responsible for three quarters of all greenhouse gas emissions.

In addressing these pros and cons, the Organisation has advocated for a “people-centred” development model, and aims to “re-humanise cities” in the face of trends impacting them, from population growth, demographic shifts, and increasing the risk of disasters induced by climate change. 

This year’s theme: “Changing the world: innovations and better life for future generations” spotlights the role of technology and young people in building sustainable cities. To do so, Thursday’s commemorative event will be organized along four key discussion themes: ‘Cities 4 Sustainable Development Goals (SDGs)’, ‘Cities 4 Climate Action’, ‘Cities 4 Communities’, and ‘Cities 4 the Future’.

In line with its multidisciplinary mandate, UNESCO’s 2004 Creative Cities Network continues to harness the various ways cities spanning the globe are placing creativity and cultural industries at the heart of their development plans. 

From gastronomy in Tucson, Arizona, to design in Nagoya, Japan, the network engages more than 246 cities, which integrate creative approaches in their development plans, 66 of which UNESCO announced as newcomers on the World Day. See the complete list of cities, and their creative undertakings here.

For World Cities Day this year, UNESCO is partnering with the UN”s Food and Agriculture Organisation (FAO)UN-Habitat, and refugee agency (UNHCR) to amplify the concerted action of the United Nations for cities alongside their planners and other urban players. 

The UN-proclaimed World Day serves as a call for States, municipalities and city dwellers to work together for transformative change and sustainable strategies for cities, as urbanization continues to swell. 

UN chief calls cities a battleground for climate crisis

Secretary-General António Guterres explained in a statement attributable to his spokesperson,  that “the choices that will be made on urban infrastructure in the coming decades…will have decisive influence on the emissions curve. Indeed, cities are where the climate battle will largely be won or lost.” 

From electric public transport to renewable and energy and better waste management systems, cities are “hubs of innovation and creativity, and young people are taking the lead.” 

In addition, he highlighted that World Cities Day comes as “urban October” concludes, a month dedicated to raising awareness of urban challenges, and successes in sustainability. 

“Let us commit to embracing innovation to ensure a better life for future generations and chart a path towards sustainable, inclusive urban development that benefits all”, he encouraged.

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Urban Development

Spotlight on cities

MD Staff

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Over half the world’s people live in cities. As more and more people move into cities from rural areas a number of environmental and social challenges arise, including overcrowding in slum areas, poor sanitation and air pollution. However, urbanization can also present great opportunities and is a critical tool for achieving the 2030 Agenda for Sustainable Development if done right.

Cities have always been drivers and incubators of innovation. It is often said that the battle for achieving the Sustainable Development Goals will be won or lost in cities. For this to happen, cities will have to continue to drive innovation to achieve a lasting impact in communities and to ensure that “no one and no place” is left behind.

This year’s World Cities Day, hosted by the City of Ekaterinburg, Russian Federation and co-organized by UN-Habitat, the Shanghai People’s Government and the City of Ekaterinburg, will focus on technology and innovation: digital innovations that can be used for urban services to enhance people’s quality of life and improve the urban environment; technologies for building more inclusive cities; opportunities for generating renewable energy and; technologies that can promote social inclusion in cities.

This year’s theme for World Cities Day on 31 October is “Changing the world: innovations and better life for future generations.”

Technologies such as artificial intelligence, virtual, augmented and mixed reality and the internet of things present efficiency and communications opportunities requiring new governance frameworks. This rapid rate of innovation also puts pressure on urban policymakers and managers to strengthen their capacity when it comes to understanding, procuring and regulating new technologies.

The UN Environment Programme (UNEP) works in partnership with UN-Habitat and others to promote the sustainable development of cities.

Jointly with the World Health Organization, the Climate and Clean Air Coalition and the World Bank, we lead BreatheLife, a global campaign to mobilize cities and individuals to protect our health and our planet from the effects of air pollution.

Together with Cities Alliance, the United Nations Human Settlements Programme (UN-Habitat) and the World Bank, we launched the Knowledge Centre on Cities and Climate Change (K4C), an online repository of information on climate change that advocates informed decision-making in local governance.

Check out UNEP’s work with partners relating to cities, covering green spaces (and the importance of trees in soaking up pollution), sustainable transport, district heating and cooling, sustainable waste management, sanitation and more.

UN Environment

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Urban Development

Four Regional Development Banks Launch Joint Report on Livable Cities

MD Staff

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Rapid urbanization has provided most cities in the world with opportunities to provide more sustainable, vibrant, and prosperous centers for their citizens. But they must first address challenges such as inadequate infrastructure investments, pollution and congestion, and poor urban planning, according to a new report released today. 

The report, Creating Livable Cities: Regional Perspectives, looks at urbanization trends across emerging and developing economies in Africa; Asia and the Pacific; emerging Europe, Central Asia, and the Southern and Eastern Mediterranean; and Latin America and the Caribbean. It is a joint publication by four regional development banks (RDBs) operating in these regions—African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), and Inter-American Development Bank (IDB).

“Cities offer access to key infrastructure, institutions, and services for a good quality of life,” ADB President Mr. Takehiko Nakao said. “They can be centers of innovation for a more livable future for all. But realizing that potential requires forward thinking and flexible planning, adequate capacity at the municipal level, and good governance.”

Mr. Nakao took part in a launch event at the IDB headquarters today in Washington, D.C., with the presidents of the other three development banks: Mr. Akinwumi Adesina of AfDB, Mr. Suma Chakrabarti of EBRD, and Mr. Luis Alberto Moreno of IDB.

The world’s urban population has grown from just 750 million in 1950 (or 31% of the total population) to 4.2 billion in 2018 (55% of the total population)—a number that is estimated to reach 5.2 billion in 2030 (60% of the total population). While the majority of leading economic hubs are still in advanced economies, the center of economic activity is moving toward the developing and emerging markets, the report says. Asia and Africa will account for 90% of urban population growth between 2018 and 2050, with more than a third of this growth to happen in just three countries—the People’s Republic of China (PRC), India, and Nigeria.

Although large and still dominant, megacities of more than 10 million people and national capitals are not the fastest-growing urban areas. Urban areas with fewer than 1 million residents account for 59% of the world’s urban population and are experiencing a faster growth rate across the regions, the report says. 

Cities need large scale investments to develop and maintain infrastructure and services such as urban transport, water supply, sanitation, and solid waste management. In the face of rapid growth, overstretched services, skills shortages, and increased vulnerabilities to disasters are adding to cities’ environmental stress.

The publication examines the types of policy interventions and approaches needed to promote competitive, inclusive, equitable, and environmentally sustainable and climate-resilient cities—four factors that taken together make cities “livable.”

“RDBs play an important role in identifying, distilling, and diffusing knowledge and actions that can accelerate progress toward creating more livable cities,” the report says. Making cities more livable is one of the seven operational priorities of ADB’s Strategy 2030. ADB’s Livable Cities approach puts people and communities at the center of urban development, and promotes strengthening urban institutions through holistic and participatory urban planning and sustainable financing, and use of data and digital technologies to improve urban services to the residents.

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