What is the relationship between urban governance and poverty? Whilst economic growth and what the poor do for themselves may still be the main determinants of poverty reduction, city governance can make a difference.

City governance refers not just to the formal activities of municipal government but to a gamut of relationships – formal and informal – between civil society and the state at the local level. Decentralisation has focused attention on the city level while democratisation and the re-emergence of civil society in many countries have provided opportunities for more responsive urban governance and for the poor to have an influence on the agenda of the institutions involved.

Collaborative research led by the University of Birmingham sought to identify what sorts of political and institutional systems and processes, both formal and informal, result in inclusive and pro-poor decisions and outcomes. Whilst there are no simple answers, and what actually happens in any city depends on a range of economic, political and social factors, the research identified a number of insights:

• There is often very poor information on poverty at city level, a limited understanding of the differentiated nature of urban poverty, and a failure to recognise the negative impact that interventions can have on economic relationships, social networks and livelihood systems of the urban poor.
• An active and motivated civil society can play an important role in poverty reduction through enabling the poor to organise and make claims, for example. Civil Society however, can be unrepresentative, exclusionary, perhaps manipulated by those in power, and subject to conflicting interests that need recognition.
• NGOs can play a beneficial role and can influence policy at local or national level. Not all NGOs are equipped to do so, however. Many have weak links with, and are regarded with suspicion by, the urban poor.
• Whilst clientelism can bring benefits to some of the poor, organised political engagement and persistence by poor groups can move the political process beyond clientelistic relationships towards more open political bargaining.
• Lack of resources, legal constraints and conflicts with higher tiers of government, constrain city governments in their ability to address the needs of the poor.

Donors need to understand the local political dynamics, engage with the institutions of city governance, build on what is already happening locally, and be willing to consider long-term engagement. Further policy implications include the need for:

• electoral systems in which the votes of the poor count
• mechanisms of local accountability and participation beyond periodic elections such as participatory budgeting and access to information about resource use
• a free and investigative media.
• an elected sub-city level of government at the neighbourhood level with real resources to help bring decision-making closer to the poor
• more appropriate regulations and standards to increase access to shelter and economic opportunities, for example tolerance of informal trading to help strengthen the position of the poor
• improved infrastructure and services (particularly water and sanitation) including better maintenance and access for the poor
• access to land for housing and economic activities for poor people.

Source(s):
'Urban Governance, partnership and poverty: lessons from a study of ten cities in the south', International Development Department (IDD), School of Public Policy, University of Birmingham by Nick Devas with Philip Amis, Jo Beall, Ursula Grant, Diania Mitlin, Carole Rakodi, and David Satterthwaite, June 2001

id21 Research Highlight: 23 October 2001

Further Information:
Nick Devas
International Development Department (IDD)
School of Public Policy
University of Birmingham
Birmingham B15 2TT
UK

Tel: +44 (0)121 414 5036
Fax: +44 (0)121 414 5032
Contact the contributor: c.n.devas@bham.ac.uk

International Development Department (IDD), University of Birmingham, UK

For copies of the report -

Contact the contributor: c.a.fowler@bham.ac.uk

Other related links:
'Who Runs Cities? Relating urban governance to poverty'

'Polity quality – how does governance affect poverty?'

'Governing Our Cities - will people power work?' from Panos

The World Bank focuses on Urban Development

Visit the Globalisation and Governance programme at the Nautilus Institute

See also the Commission on Global Governance

IDS examines the interplay between civil society and governments