The Urban Sector at IDB

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The Urban Sector at IDB

• Eduardo Rojas
• Sustainable Development Department

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Latin America is one of the most urbanized
Regions of the world
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All population growth has taken place in urban
areas in the last 25 years
Source Habitat 2001 op.cit.
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Urbanization is good business
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More urbanized countries grow faster
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Than the less urbanized countries
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IDB lending with direct impact on cities 1961 -
2002
Source IDB, 2002
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IDB lending for urban development is growing in
volume and number of projects
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(No Transcript)
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Becoming more varied and complex
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Municipal Development
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Lending for municipal development has become more
complex and encompassing

• Municipal infrastructure in the 1980s
• Fiscal and institutional development in the 1990s
• Subnational sector reform in the 2000s and beyond

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Topics of concern in municipal development have
increased

• Sector issues
• Intergovernmental relations
• Democratic governance
• Intuitional development
• Financing
• Own sources
• Borrowing
• Privatization

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• Municipal level issues
• Revenue mobilization
• Financial planning
• Project planning and execution
• Operation and maintenance

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Paraná Cidade The municipal development program
of the State of Paraná in Brazil
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Paraná Urbano actual expenditures
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Paraná Urbano executing arrangements
IDB
Parana Development Agency
Paranacidade
Repayments
Loans
Municipalities
Technical Assistance
Associations of Municipalities
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Integrated Urban Development
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Lending for integrated urban development has
moved from the periphery to city centers

• Catching up with rapid settlement in the urban
  periphery in the 1980s
• Urban heritage preservation in the 1990s
• Downtown revitalization in the 2000

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Prcentro Sao Paulo downtown renewal program
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• Objective
• Promote economic and social development and
  increase social diversity in downtown Sao Paulo
• Components geared to
• Reverse the decline in downtown property values
• Transform the areas economic profile
• Restore the urban environment
• Improve transportation and accessibility

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Prcentro Sao Paulo proposed expenditures
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Housing
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Lending for Housing has undergone a significant
change focusing on housing sector reform

• Finished houses in the 1960s
• Sites and services in the 1970s
• Settlement upgrading in the 1980s
• Housing sector reform in the 1990s

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Ecuador Housing Sector Support Program
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• Objective
• Consolidate and expand private sector
  participation in housing sector operations
• Consolidate the housing incentives system
• Improve living conditions of households living in
  informal settlements
• Promote local government involvement in housing

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Public and private sector cooperate in housing
financing
Household income
US1000 A
savings credit from the financial sector
US 500 B
savings government subsidy credit from the
financial sector
US 300 C
US 200 D
savings government subsidy
US 100 E
fully subsidized settlement upgrading
Year
4
5
1
3
2
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Ecuador Housing Sector Support Program