Urban Development and the Environment

The purpose of this note is to help both local and national government officials think through possible strategies for addressing one of the fundamental issues facing Serbian municipalities today: How do Serbian local governments increase the revenues they need to improve their public infrastructure while simultaneously creating an environment favorable to private investment and local economic development? This is a dilemma that local governments face throughout the world but which is particularly pressing in many developing and transition countries where local governments must address huge deficits in urban infrastructure without at the same time over taxing their business communities upon which their future growth depends. It is also of particular importance in Nis, the third largest city in Serbia and the economic engine of the southern and least developed part of the country.

In response to the challenges posed by the Millennium Development Goals, the key stakeholders in international development set out a new agenda to improve the effectiveness of aid. This agenda, embodied in the Paris Declaration on Aid Effectiveness, articulates a series of commitments reflected by the following tenets: ownership, alignment, harmonization, managing for results, and mutual accountability. The goal of this study was to identify lessons learned from the application of the Paris Declaration tenets in the infrastructure sector and, specifically, to determine whether the unique characteristics of this sector result in unique challenges and opportunities for implementing the tenets. This report, submitted to the Steering Committee by The Urban Institute, presents detailed findings on the Study on Aid Effectiveness in the Infrastructure Sector.

This study, the first comprehensive look at IRS data on more than 26,000 environmental and conservation organizations – 8,000 of which had revenues of $25,000 or more – reveals a core of prominent national organizations and a larger, more rapidly growing universe of regional, local, and other specialized groups. Taken as a whole, the environmental movement expanded in number of organizations, members, and in total revenues almost every year since 1960. It focused less on advocacy than on projects and education, and was younger, more densely networked, and more dependent upon grants and contributions than was the nonprofit sector in general.

Africa's cities purchase much more food domestically than the continent imports or exports; they represent economic hope if rural and peri-urban producers learn to meet their particular food demands, including more meat, dairy, and processed foods. Increased efficiency will come with more onsite processing, contract enforcement, and distribution centers. Best practices from South Africa include the Johannesburg Fresh Produce Market and Thohoyandou Spar Supermarket requiring their agents to purchase a share of their fresh vegetables from small growers. Efforts to strengthen regulation and raise standards must remember that the urban poor depend on public markets, the informal sector and "inferior" products.

Charles Cadwell, a University of Maryland expert on the political economy of reform in developing nations, the relationship of institutions to economic development, and the implementation of legal and judicial reforms, has joined the Urban Institute as the director of its International Activities Center.