Habitat III - Special Sessions
  • Monday 17
  • Municipal Finance

    Special Sessions
    Venue: R17
    Speakers:
    Lead Organizations:
    World Bank; Lincoln Institute; UN Capital Development Fund (UNCDF); United Nations Human Settlements Programme (UN-Habitat)
    World Bank (World Bank)
    United Nations Human Settlements Programme (UN-Habitat)
    Partner organizations:
    Capital Development Fund (UNCDF); Center For Biological Diversity (CBD)
    UN Capital Development Fund (UNCDF); Center For Biological Diversity (CBD)
    United Nations Capital Development Fund (UNCDF)
    Convention on Biological Diversity (CBD)

    Revenue Generation from Local Sources, Intergovernmental Transfers, and Mobilizing External Resources to Finance Urban Infrastructure

    There needs to be a coherent and internationally supported national process to implement the New Urban Agenda with financially sustainable urban systems. The system must integrate municipal finance, legal frameworks, and spatial planning and design to promote urban development in the area of governance, endogenous resources, financial management, infrastructure systems, and exogenous sources of finance. In this context, the session advocates for:
    a)     Governance reform: a national process to clarify responsibilities for, and build institutions to deliver and finance urban infrastructure and other services across different levels of government in an efficient, transparent and accountable manner.
    b)     Expanding endogenous resources: national and local reform processes to provide opportunities and incentives for increasing the local resource base and efficiency in the use of these resources and of government assets, including enabling local government to access the capital markets and to leverage its funds with private sector resources.
    c)      Strengthen financial and asset management: strengthening national and local institutions to encourage more effective management by national/local governments of local revenues and expenditures, and of their assets.  
    d)     Improving urban finance systems: a nationally facilitated process to expand sources of, and instruments for, financing for capital investments and the recovery of costs from the beneficiaries of such investments.
    e)     Developing systems for effective use of exogenous sources of finance: national governments providing the opportunities and incentives for effective use of exogenous resources on the one hand and the conditions for the prudent supply of such resources on the other.  

    Guiding Questions
    ·    Discuss initiatives for:  Revenue Enhancement, Finances of Urban Expansion, Local Infrastructure.
    ·       Intergovernmental Transfers: Describe relevant initiatives
    ·       What are the instruments available to guide the design of policies for municipal finance aligned to the New Urban Agenda?
    ·       How can available tools be scaled up at local and national level?
    ·       What are the challenges to  ensuring adequate resources and technical expertise at the local level?
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    Keywords: Municipal Finance Finance