This report captures the end of the internal restructuring that has revitalised the Cities Alliance after its first decade. With the adoption of a new Charter and new business model in Mexico City last October, the Secretariat spent the bulk of FY2011 implementing these decisions.

The Cities Alliance is now poised to move into a new phase in its short history, building upon its existing portfolio and experience. The most important challenges in the year ahead include:

 -- The potential of the Catalytic Fund to dramatically improve the quality and the strategic impact of relatively small grants;

 -- The vital work of realising the very evident investment potential created by the Country Programmes;

 -- The need to increase the impact of the Cities Alliance’s advocacy messages.

Central to achieving all of these objectives will be the mobilisation of significant resources, the identification of new partners, and the leveraging of public and private sources of investment.

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