“Rapid growth, without efforts to boost resilience, is exposing cities around the world to huge risk. Population growth and human migration are on the rise, and climate change is poised to have dramatic effects, which means we’re approaching a tipping point for the safety of cities all over the world.”— Ede Ijjasz-Vasquez, the World Bank Group’s Senior Director for the Social, Urban, Rural and Resilience Global Practice
- Lack of government capacity. Cities may struggle with political uncertainty, regulatory systems that deter private investment, and difficulties planning, financing, and implementing projects.
- Lack of private sector confidence. Private-sector investors are frequently concerned about limited institutional capacity, weak governance, currency risk, and the limited benchmarking data that can be used to measure an investment’s performance.
- Challenges in project preparation. The technical capacity and up-front costs to prepare projects mean that cities are able to offer few ready-to-go urban resilience projects to investors for financing.
- Financing challenges. With their lack of creditworthiness and limited sources of local revenue, cities in the developing world struggle to fund their investment needs – and, at times, even their public services. Resilience investments are needed urgently and at scale, and public investment, even along with official development assistance, will not be enough.
While both the public and private sectors can provide infrastructure, only the public sector can plan and regulate it.— Investing in Urban Resilience