Brazil Launches New Economic Growth Programme (PAC)

Brazilian President Luiz Inacio Lula da Silva unveiled an economic programme on 22 January 2007 projected to boost the country’s economic growth during the period 2007 to 2010. The Programme for the Acceleration of Growth (PAC) calls for a total of 504 billion real (US$235 billion) to be invested in building and repairing highways, airports and ports nationwide; boosting energy development in the north; and providing housing, water and sewage systems that will benefit poor Brazilians. Some US$205 billion of these funds is expected to come from state-owned companies and the private sector, while the rest would come from the federal government.

The PAC is important for Brazil’s poor since it pays unprecedented attention to slum upgrading and the construction of new houses. The programme increases the US$3 billion allocation for direct interventions in favelas (informal settlements) to US$7 billion, a US$4 billion increase. The social housing component of the programme is managed by the Ministry of Cities through the National Housing Secretariat.

ILO Workshop Focusing on Job Creation in CA Projects

In February, 2007, the International Labour Organization (ILO) organised a two-day brainstorming session in Geneva to discuss improving the integration of job creation into CA urban development strategies and programmes. The discussions followed-up the November 2006 CA Consultative Group meetings in Washington, DC, where urban employment issues were highlighted. Participants in the February meetings included representatives of the ILO, the Swedish International Development Cooperation Agency (SIDA), the UK Department for International Development (DFID) and UN-HABITAT. Pascale Chabrillat attended on behalf of the Cities Alliance Secretariat. As a result of the talks, a core group (SIDA, DFID, UN-Habitat, World Bank and ILO) was set up to assess urban cooperation programmes on job creation, with the expectation that this group will strengthen and expand. Group members also discussed evaluating the impacts of their bilateral or multilateral development and infrastructure investment funding for job creation. With the findings, the ILO, with support from the Cities Alliance, will lead group efforts in preparing a concept note policy paper on LED and urban employment, and developing a joint work programme. Both will be presented by ILO at the Cities Alliance annual meetings in Manila, 5-9 November 2007.

Formulating a Local Economic Development Competence Network in Africa (LED-CAN)

In March, 2007, a meeting of invited donors was hosted by the French Ministry of Foreign Affairs to discuss a preliminary concept note on developing a local economic development competence network in Africa (LED-CAN). Its aim would be to upgrade African LED skills and share knowledge across the continent. The concept note was prepared at the request of United Cities and Local Governments of Africa (UCLGA) by the Municipal Development Programme (MDP), West and Central Africa.

The idea for the network was first proposed by UCLGA and was formally initiated at the September, 2006 Africities Congress in Nairobi where a paper on furthering the local economic development agenda was presented and roundly supported by more than 300 representatives of local government across Africa. Following a formal resolution from Africities, the donors met several times and are now in detailed discussions with counterparts on how the network could be established. The donors first met at a meeting hosted by the Swiss in December. The next step will be a fact finding mission to South Africa (end of May) to learn from their experiences in establishing LED competence centres. Following this, a more formal proposition will be made and donor and partner funding will be sought.

Participants in the meeting included the French Ministry of Foreign Affairs, GTZ, ILO, the Swiss Agency for Development and Cooperation, the United Nations Capital Development Fund and the United Nations Development Programme. Pascale Chabrillat represented the Cities Alliance Secretariat. Other donors have also expressed interest in joining this endeavour and all are welcome as this is a big agenda and one of UCLGA's top six priorities.

For further details please contact MDP's LED External Adviser Gwen Swinburn (gwen.swinburn@gmail.com) or Francois Yatta, MDP's LED Regional Specialist (fyatta@yahoo.com).

UCLGA Confirms its Leadership

The United Cities Local Governments of Africa (UCLGA) announced the election of Mr. Jean Pierre Elong Mbassi as Secretary General and Fr. Smangaliso Mkhatshwa as President. Under the new leadership, the organisation aims to further solidify the UCLGA’s institutional set-up, secure recognition from the African Union of UCLGA’s role in representing local government in Africa, gain constitutional recognition of local governments, and build the capacity of member municipalities to attract investment and deliver results. The UCLGA, a regional branch of the UCLG, was launched in South Africa in 2005.

http://www.uclgafrica.org/HomeEng.htm.

Cities Alliance and Asian Development Bank sign MoU
A January 2007 MoU signed between the Cities Alliance and ADB enables the ADB, already a contributing CA member, to become a recipient of grant funds to finance activities in its developing member countries in Asia. For more information, please see the ADB and CA announcements:

http://www.adb.org/Media/Articles/2007/11286-asian-urban-poor-improvements/

http://www.citiesalliance.org/publications/homepage-features/jan-07/ca-mou-adb.html.

Field Report from South Africa

In February, 2007, Cities Alliance Senior Programme Officer Pelle Persson travelled to South Africa to participate in a workshop on South African application of the city development strategy (CDS) methodology. City leaders, urban development practitioners and researchers from the nine metropolitan areas that initially formed the South African Cities Network, many of which are involved in CA-funded activities, participated. The purpose of the workshop was to discuss ways to develop visionary, multi-faceted CDSs that complement existing five-year integrated development plans.

The mission also visited implementing partners who are using CA financing to define innovative ways to implement the new government policy “Upgrading for Growth: Implementing the Breaking New Ground Policy.” Discussions were held with the Department of Housing on a nationwide strategy aimed at transferring funds and initiatives for implementing the new policy at the local level. A visit was paid to the Ekurhuleni metro area to see progress on this initiative as local authorities work innovatively with communities in informal settlements to facilitate integrated, in-situ upgrading, instead of relocating entire populations. The project involves new thinking on ways to integrate social, physical and habitat issues by using housing subsidies more liberally, particularly for job creation. As part of this initiative, a socio-economic survey of 5,800 households to determine employment skills has been completed. Survey findings will be used to create a local economic development (LED) strategy.

Discussions were also held on progress in the Tshwane Comprehensive Sustainable Human Settlement Strategy and Financing Plan. This plan forms part of a strategy for integrating formerly racially segregated neighbourhoods by concentrating urban development along bus rapid transit routes.