Cities are the driving
forces of economic development. While their concentrations
of industry, commerce and services contribute to the larger
part of production and wealth creation in any national economy,
their centrality in transportation links and distribution
networks, and their sophisticated infrastructures and advanced
forms of human capital are the foundations of continuing
technological innovation and increasing productivity. Six
clusters of innovative policies and practices contribute,
together with their multiple interrelationships, to the
‘economic dimension’ of urban development. They
This cluster looks into macro-economic development and finance;
including new analyses of relationships between urban economic
growth and urban poverty, new assessments of urban competitiveness,
and new guidelines for urban development strategies, urban
taxation and financial improvements.
The documents here collated discuss the theme of informal
economy including measures to provide recognition of rights,
regularisation of land and informal housing developments
and street trading. In this section are also discussed matters
related to conflict and confrontation over space use.
This section focuses on employment and labour markets, including
small and medium enterprise development, income generation
initiatives and opportunities, skills enhancement, and new
directions in labour market segmentation.
The documents included in this section draw our attention
to the achievements of the urban poor in developing resources
directly by building up their own capacities. Examples of
micro-finance initiatives include new practices in savings
and loan schemes, community asset management, and finance
This cluster highlights a number of responses to current
globalisation processes and structural adjustment programmes
including new policy analyses of urban economies, new initiatives
and practical measures to modify the impact of adjustment
on poor communities.
This cluster reflects the increasing recognition of the
significance of urban-rural interactions and interdependence
for economic growth and poverty reduction. The documents
included here highlight the importance of appropriate forms
of peri-urban governance to manage the processes of urbanisation
and to protect the rights of the rural and urban poor.