City Development Strategy (CDS)

A rapidly increasing share of the world's population is living in cities. In the next 15 years the population of many cities in Asia and Africa will nearly double. In order to confront the challenges posed by this unprecedented rate of urban growth and increasing urban poverty, cities need to plan ahead in order to make more informed choices about the future and they need to act now. A city development strategy supports cities in this critical decision making process and is focused on implementation. It is an action-plan for equitable growth in cities and their surrounding regions, developed and sustained through participation, to improve the quality of life for all citizens.

The Alliance supports cities in preparing city development strategies that link their economic growth and poverty reduction objectives, often including citywide slum upgrading strategies. To-date the Alliance has worked with over 150 cities worldwide providing over $40 million in grants which are in turn linked to $5 billion in investments, of which $2.7 billion has come from World Bank investments.

  Essentials of a CDS

  Key Lessons

Essentials of a CDS

Assess the state of the city and its region

Each city needs to identify and analyse its own opportunities and problems; the values and preferences of itsresidents; its change drivers, including its relationship to its region and the national and global economy; and its assets and resources.

Develop a long-term vision
A shared strategic understanding among all stakeholders is essential to align energies to work cohesively for the good of the city. Thinking citywide provides a mechanism for local stakeholders to assess the linkages between their respective priorities for health, security, jobs, housing, education, transport, and the environment and to develop a shared vision.

Act now with focus on results
Although the vision has a long-term perspective, the strategy should focus on short-term results and accountability – indicating the role for many key stakeholders, not just local government. It is helpful to start with a limited number of actions that respond to common concerns and that are challenging but have a high probability of producing results.

Value the contributions of the poor
The urban poor have demonstrated enormous resilience and ingenuity in mobilising and organising themselves when formal institutions have failed to serve them. The CDS process capitalises on the enormous potential of the urban poor as development agents by supporting their participation in decision-making processes that affect their livelihood.

Encourage local business growth
Involving key stakeholders and collaborative leadership and responsibility is a more effective way of creating a business-enabling environment than just relying on tax-based incentives that sometimes divert resources needed for critical infrastructure investments.

Engage networks of cities
Learning from peers through city-to-city knowledge-sharing networks has proven the most effective and sustainable way to transfer knowledge. The involvement of local government associations is considered crucial for the institutionalisation and replication of a CDS.

Focus on implementation
Implementation is at the heart of a CDS, not the development of a perfect plan. Successful strategies mix means, clearly identify institutional responsibilities, and provide incentives for performance. Stakeholders learn to integrate evaluation and impact targets from the beginning, learn from errors, and revise the strategy in the next
round.

Concentrate on priorities
A strategy reflects tough choices and focuses on a limited number of actions as well as on available resources to shape emerging opportunities. Strategic planning involves making informed decisions in a rapidly changing environment.

Foster local leadership
The sustainability and effectiveness of the CDS process depend to a great extent on the active involvement of the mayor, high-ranking local government officials, and representatives from the municipal council. If not anchored in the yearly municipal budget with a sustainable financing strategy, the CDS will remain just another planning
document.

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