Urban development, good governance

Joris van Etten and Florian Steinberg, Institute for Housing and Urban Development Studies, Jakarta Regional Office, Ihsjro@pacific.net.id

Currently over 6,000 participants from 189 countries are gathering in Bali to review the implementation of agreements made ten years ago during the Sustainable Development Conference in Rio de Janeiro. One of the most important documents agreed upon at that time was the Local Agenda 21. Local Agenda 21 has evolved into a dynamic and innovative phenomenon in many countries which wants to make cities more livable.

The intention of the approach is to escape the deterioration associated with rapid urbanization of poverty, social exclusion, environmental degradation and control of climate change, requires bold new action. Local Agenda 21 is projecting positive action for the improvement of the quality of life through participatory urban planning and management and urban demonstration projects.

While municipal development, urban planning and environmental management have been in the shadow of official concern for a long time, civil society and NGOs have stimulated a strong Local Agenda 21 movement, the world over. From isolated environmental concerns the notion of environmental planning and management has become broad-based and cross-sectoral in order to secure better coordination and management. In addition it has been acknowledged that democratic debate and participatory decision-making are the key to better urban governance. In some countries Local Agenda 21 and the urban governance process has become a movement that has started to enroll an ever-growing number of cities.

In addition a large number of other programs and approaches have been introduced in order for cities to better deal with the social, economic and environmental challenges that they are facing. Among others City Consultation Processes, Healthy Cities program, The Urban Governance Initiative, Cities Development Strategies and the Urban Management Program provide cities with various approaches which help cities to work better.

Among the lessons learnt from these approaches are the need to establish new governance systems that encourage participation beyond democratic representation and involve local stakeholders in (all) aspects of decision making and resource allocation; the need to treat the private sector as partners in development based on real win-win situations rather than conventional for-profit and commercial interests which are balanced with broader public interests within a broader framework for environmental management, better public services and quality of life.

Other factors include the process of Local Agenda 21 consultations, the value of information sharing as a pre- requisite for participatory decision making, the strategic value of (small-scale) demonstration projects, particularly those which can be funded through local resources right from the beginning.

Most participants of this process are aware of the fact that introducing change is a longterm process which requires flexibility in implementation and a systematic approach to monitoring and back-up support.

Among the prominent lessons learnt, there figures also the issue of capacity building. This was also confirmed by the United Nations Conference on Habitat (Habitat II, Istanbul 1996 and 2001), the topic of Capacity Building for Local Governments assumes a critical dimension if sustainable development and good governance is to be achieved inadequate human and organizational capacities and unfavorable institutional environments are seen to be hindering factors for good urban governance.

What is required is a "two track approach" in addressing institutional capabilities: Organizational systems and promotion of professionalism through training of work units and individuals, in managerial and technical skills.

The Institute for Housing and Urban Development Studies (IHS) has been involved with the development of this Capacity Building approach in a variety of countries and projects. IHS has been supporting cities and national governments in the execution of concrete capacity building programs.

For instance, here in Indonesia -- where some 1.9 million civil servants need to be introduced to principles and experiences of good governance in the context of governmental decentralization -- IHS is presently supporting the Asian Development Bank (ADB) and the Ministry of Home Affairs.

Capacity building is more than a fashion. Capacity building is a key to better management of cities. At the same time it needs to be recognized capacity building for sustainable development is a complex process which demands major efforts over extended periods of time.

Quick and tangible results are difficult to achieve so commitment and support of all those involved in the capacity building process is of key importance in achieving results.