29 September 2015: Urban population growth places stress on local governments as they strive to address urban poverty and inequity, to provide infrastructure and services and enable economic development, according to a discussion paper released by the UN Human Settlements Programme (UN-HABITAT) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ). The paper aims to contribute to the debate on transforming urbanization and on developing the New Urban Agenda.

‘Unpacking Metropolitan Governance for Sustainable Development’ examines how and why metropolitan regions work, or do not work, and how to operationalize effective metropolitan governance through institutional arrangements, mechanisms and instruments. The paper discusses the benefits and disadvantages of four institutional arrangements: inter-municipal cooperation mechanisms; metropolitan/regional authorities; second level metropolitan local government; and consolidated local government. The paper presents case studies and policy recommendations on metropolitan governance, including recommendations for governments in metropolitan regions and development partners.

A metropolitan approach for local governments is to cooperate on certain topics and services while competing on cost effectiveness and service quality, according to the paper. It considers Good Urban Governance Principles (GUGP): sustainability; equity; efficiency; transparency and accountability; and civil engagement and citizenship. The paper observes that Organization for Economic Co-operation and Development (OECD) countries have addressed metropolitan governance and created governance and institutional arrangements and legal frameworks that could provide lessons for developing countries, particularly when tailored to national and local conditions.

The paper recommends, inter alia: active citizen engagement; accountable institutions; and objective third-party advisors to catalyze non-political decision-making. It suggests that joint service delivery can help save costs through economies of scale.

It further recommends: providing a legal or regulatory framework for metropolitan governance; creating incentives for metropolitan governance advances; anticipating the need to evolve over time, particularly as circumstances and needs change; ensuring horizontal and vertical coordination; and ensuring clarity on division of functional and expenditure responsibilities. [UN-HABITAT Press Release] [Publication: Unpacking Metropolitan Governance for Sustainable Development]