L Sisulu: City Development World Africa 2006

7 November 2006

Chairperson,
Senior officials in government,
Chief Executive Officers representing various companies from the private
sector,
Invited guests,
Ladies and gentlemen,

I am pleased to have been invited to attend the conference which is ideal
for those of us who are keen to invest in the building of our collective
future. I believe the conference is intended that we should learn from each
other and thereby gain 'deeper insight' into the development challenges we
face. For me this was sufficient, and in fact, it was compelling to honour the
invitation. For here is present a good mix of all those who in the structure of
our society matter in development. City and Regional Investment and Development
Agencies are here. Local government specialists including property developers
and property owners, property investors, city transport operators and
authorities, facility and asset managers, systems integrators and auditors; I
have been told that they are all here, as indeed they should be if we are
dealing with city development. The setting therefore holds a promise for a good
substantive interaction. Today everybody that matters in the developing of
cities is here, I hope.

At the opening of the 1976 United Nations conference on Human Settlements in
Vancouver, the Prime Minister of Canada, the late Pierre Elliot Trudeau, had
this to say:

"Human Settlements are linked so closely to existence itself, represent such
a concrete and widespread reality, are so complex and demanding, so laden with
questions of rights and desires, with needs and aspirations, so racked with
injustices and deficiencies, that the subject cannot be approached with the
leisurely detachment of the solitary theoretician." (Vancouver, 31 May
1976)

This complex reality has, for these past three decades, posed difficult
challenges that cross both developmental and disciplinary divides. All nations
and citizens are confronted with these challenges whether they are from rich or
poor nations, developed or developing, international, continental and
local.

This conference could not have come at a more opportune time, as we all
grapple with these complexities. Decisions we take will have enormous impact on
our future. We are at a critical phase in our development. The year 2007 will
mark a turning point in human history. According to the State of the World
Cities Report 2006/07:

"The world's urban population will for the first time equal the world's
rural population. Although it is difficult to predict on which day or month,
this milestone will herald the advent of a new urban millennium: a time when
one out of every two people on the planet will be a City-Zen."

These cities are facing unprecedented challenges. Their very existence is
threatened by the consequences of climate change. Their social cohesion and
stability is being tested by social exclusion, inequities and shortfalls in
housing and basic services. The quality of life and health of their inhabitants
are increasingly affected by congestion and deteriorating air and water quality
and are also areas of concentration of the deficiencies of human existence that
the Millennium Development Goals (MDGs) seek to correct.

As African Ministers for Housing and Urban Development, we have been keen to
emphasise that we should avoid the overemphasis on urbanisation as a negative
development to see its benefits.

Cities are sites for extraordinary cultural, social and political progress
in the world, and for the world's prosperity. As a result, we have been arguing
for sustainable cities as an essential condition for meeting the goals as set
out in the Millennium Declaration. The theory is that sustainable cities will
maximise opportunities for growth.

Urban growth needs to be understood from its positive impact on the growth
of the cities. Urbanisation provides an opportunity for increased economic
activities, through diversification of means of incomes, expansion of options
for affordable services and widening horizons for skills acquisition.

In 2005, the world's urban population was 3,17 billion out of the world
total of 6,45 billion. Current trends predict the number of urban dwellers will
keep rising, reaching almost five billion by 2030. Between 2005 and 2030, the
world's urban population is expected to grow at an average annual rate of 1,78
percent, almost twice the growth rate of the world's total population. On the
other hand, the rural population is decreasing at an average annual rate of
0,32 percent, a decrease of more than 155 million people over 15 years.

The trend of intense urbanisation has now shifted to the developing regions
of Asia and Africa. In�migration and natural population increase are
contributing to a rapid urban transformation of these regions. Annual urban
growth rates are the highest in sub-Saharan Africa (4,58%). In Northern Africa
they are estimated at 2,48%).

Asia and Africa will continue to dominate global urban growth through to
2030. Currently the least urbanised regions in the world, with 39,9% and 39,7%
of their populations living in cities in 2005, respectively, by 2030, both
regions will become predominantly urban. The urban population of Africa (748
million) will by 2030 be larger than the total population of Europe at that
time (985 million).

Within the international context, at the beginning of October, we all in the
developing world welcomed the good news that Muhammad Yunus, a Bangladeshi
national who received the 2006 Nobel Peace Prize said the following:

"The one message that we are trying to promote all the time, is that poverty
in the world is an artificial creation. It does not belong to human
civilisation, and we can change that, we can make people come out of poverty
and have the real state of affairs. So the only thing we have to do is to
redesign our institutions and policies, and there will be no people who will be
suffering from poverty. So I would hope that this award will make this message
heard many times, and in a kind of forceful way, so that people start believing
that we can create a poverty-free world. That's what I would like to do."

In a world that has become increasingly concerned about issues of stability,
crime and the disintegration of societies, the recognition could not have come
at a better time. It was significant not only on account of the fact that an
individual from one of the most poverty stricken countries was being recognised
but also for the forceful message it communicated that in dealing with poverty
it is not only desirable but also possible and urgent to transcend conventional
wisdoms.

South African cities as part of the continent and the globe experiences
similar challenges faced by the world cities. South Africa's urbanisation is
increasing at 2,09% per annum. The nine major South African cities contribute
about 36% to the overall national population. For South Africa, it is estimated
that 70% of the people will be residing in urban areas by 2030[1]. The current
numbers indicate that increased access to economic opportunities coupled with
perceived better standard of life in urban areas will continue to attract
migrants to urban areas.

The challenge for all of us is how we ensure that we can unlock the economic
potential of our cities so that they are able to fulfil their responsibility as
engines of growth for all.

Our problem is that we are urbanising faster than we are able to grow the
cities. This is the crisis facing us. This means therefore that we have got to
ensure maximum growth of cities so that they are in a better position to absorb
the urbanising citizen, so that we can curtail the present problem of the
urbanisation of poverty. Already, it is reported that though a proportion of
people living in poverty has declined from 51,1% in 1995 to 48,5% in 2002, the
number of those living on less than a $1 per day has increased from 9,4% in
1995 to 10,5% in 2002[2], with most of these residing in urban areas.

The question we have to address urgently is: "can we accept this projected
state of the world and continent, where in just 14 years one out of every three
people living in the world cities will live in impoverished, overcrowded and
insecure living conditions? How in the context of intense urban growth are
cities to confront these local challenges while advancing the global
imperatives and goals of sustainability?"

With roughly 80% of urban residents in the lowest-income countries already
living in slum conditions and given the projected demographic trend whereby
this population of slum dwellers is expected to increase to 1,4 billion by
2020, meeting the MDG Target 7 must be much more focused and involve a
two-pronged approach - upgrading today's slums and planning alternatives to
slums for the future.

The situation has resulted because as the world becomes increasingly
urbanised so does poverty and homelessness increase. Current projections are
that the urban population will grow to two-thirds, or six billion people, by
2050. The implications for population densities, spatial distribution, and
economic activity are immense and far reaching, providing thus the background
to increased instability and the breakdown of law in many parts of the world.
For in belying what conventional economists regarded as a natural process of
growth bringing prosperity (according to the World Bank an 'economic,
political, and social necessity') urbanisation has instead laid bare not only
the contradictions in our development but also our inability to of necessity
infuse into urban planning and development the imperative of arresting and
reversing what is presently rampant and run-away slum growth.

More than 200 million people became new slum-dwellers in our cities and
towns in the decade between 1990 and 2001, for example. And close to three
billion, representing about 40 percent of the world's population would be in
need of housing and shelter by 2030. In Africa, those who reside in slums
constitute 72 percent of the urban population, indicating the precariousness of
the situation.

If we are to reduce the development of new slums, how can we also open up
vast tracts of land for new, affordable housing, ensuring liveable places for
the poor with affordable transport to jobs? How do we ensure efficient, clean
and affordable transport networks to connect the living and working spaces?
And, how do we best govern these vast tracts of urbanism that spill over
existing political boundaries into other jurisdictions, while ensuring that
these cities raise revenues to support the whole?

Insecurity and risk does undermine the long-term sustainability of cities
worldwide, in political, economic and social terms. Multiple forms and new
manifestations of violence in cities stemming from polarisation and exclusion
require us to reach out beyond the traditional policy realm of cities. How do
we address this multiple layering and new complexity? Safety, security and
justice are often outside the purview of local authorities and are highly
centralised. However, many forms of crime in cities cut across local and
national boundaries so there is now a heightened need for cities and national
governments to co-operate closely on crime prevention and enforcement. Cities
need to make efforts to create cities without violence, crime, insecurity and
engage with all spheres of governments on issues of immigration, border
security, and gun control legislations.

Cities worldwide, whether rich or poor, confront the challenge of civic
engagement and how to effectively foster an inclusive governance process in
their local political environment. An inclusive approach to governing cities
requires a deepening awareness of the intersection between civil society and
government and the creation of new institutions and processes for fostering
inclusiveness, empowerment and engagement.

These include some of the major considerations that the cities in the
continent need to take care of. These will assist the cities in the creation of
the urban cities that are socially just, environmentally sustainable,
economically vibrant and politically open and accountable with public safety
and inclusiveness.

A 2004 study by United Nations-Habitat highlights that despite the positive
achievements in the last few years in getting governments and development
partners to recognise the need for improvements in shelter and infrastructure,
both multilateral and bilateral assistance for housing and urban infrastructure
still falls far short from the requirements.

Because of the inaccessibility of the finance needed to help them to get
homes and therefore out of poverty, the poor have evidently been finding ways
of organising themselves to either exert their power or empower themselves.
Thus here lies the critical challenge that has posited the themes of stability
and security and poverty on the other hand as the two most dominant from the
beginning of the 21st Century.

Thus even though it is widely recognised that in a world of liberalised
trade and finance cities have now become the fulcrum for investment,
communication, commerce, production and consumption the emergence of two dual
worlds standing in full contrast of each other now wholly threatens our
civilisation.

It is in recognition of this fact, which sadly remains oblivious to some,
that as African Ministers dealing with housing needed to urge the international
community in 2005 to inject more resources into housing and urban
infrastructure, pleading in this regard for committed partnerships.

Truth be told, outside of the United Nations, we have not seen any campaigns
or programmes by either the private sector or non-governmental organisations
(NGO) aimed at communicating or monitoring the outcomes relating to slum
prevention and upgrading of the World Summit in 2005.

And so, it would perhaps be appropriate to use this occasion to implore
media companies such as Terrapinn, the organisers of the conference, to utilise
the advantage they have in reaching out to those that matter in the development
of partnerships. There is need to increase and expand innovation and skills
within the construction sector. And there is need too to reach out to
commercial property investors including financial institutions to continually
sensitise them of the huge challenge we face.

From these sectors is a pool of our middle class with the skills and
technical capacities urgently needed to harness the resourcefulness of the
poor? It is for these reasons that I look forward to the outcomes of this
conference. That we might all move a step closer to resolving the problems that
we face, because they are in our power to resolve.

I thank you.

[1] National Department of Housing (2006). Investigation into urbanisation
trends in South Africa and the implications for housing. Unpublished
document
[2] South African Minister of Finance (Mr Trevor Manuel) at the joint National
Treasury/ World Bank workshop in Pretoria (2004).

Issued by: Department of Housing
7 November 2006
Source: Department of Housing (http://www.housing.gov.za)