卜 d & 芝 芝 織 残磯 日日日日日日日日日日日日日日日日 CONTEXT Urbaniろation in Mリanmaris still in an earlg phase The report,的anmar&SUrbanなatI&On:Creating with slightlリless than one-third ofthe population OPportunitieS forAllaims to understand livingincities.Thispresentsanenormous urbaniろationinMリanmardrawingonthegrowing opportunitgforthe countrg. Cities are engines of literature onthetopic in M9anmar& especiallgfor growth and prosperitg,which foCilitate industries to Yangon. It uses an inclusive urbaniろation lens and growjobs,services and innovations. Cities are also proposes a set of prioritg policg areQs for urgent fundamental to lifting people out ofpovertg through attention that will help to ensure the bene6ts of increased emplogment opportunities and incomes urbaniろation are wideIg realiろed given the projected to citiろens. No countrリhas reached middle income growth ofcities.An inclusion lens isparticularlリ status without urbaniろing. important in Mganmar as the countrリtransitions from a complex historリthat has been characteriろed Thatbeingsaid,thewaリthatcitiesurbaniろe b9decadesofeconomicandpoliticalisolation, 15 importQnt to growth,povertg Qnd livQbilitリ. conflict,and underdeveloprnent・ If adequQte investments Qre not mQde in basic infrQstruCture and services,urbQn plQnning,and in Inclusive urbaniろation 15 reliant on three keg ensuring a governance and 6nancing structure that dimensions;economic,social and spatial. Economic can deliverforresidents,cities instead can end up inclusion refersto equitable accessto emplogment with mQjor problems of congestion,pollution,sprawl,and income-generating activities in a citg,and and inequalitgwhichcan create orworsensocial resilienceto shocks. Spatial inclusionrefersto divisions,andpotentiallg contributeto crime and equitable and af=fordable accessto land,housing, violence. infrastructure and basic public services. Social inclusion relates to individual and group rights, equitg,securitg and dignitg. Such aspects of social inclusion and exclusion are relevant to groups who are often marginaliろed in dag-to-daリurban life. 2 MAIN FINDINGS AND KEY CHALLENGES Urbani6ation in Myanmar is steadily on the rise with Despite the positive benefits of growth, the increase approximately 30 percent of the population now in urban population has begun to put a strain living in cites. Much of this is attributed to internal on cities and the needs for affordable housing, migration flows. In Yangon, for example, 81 percent infrastructure and services. In Yangon, for example, of the population growth between 2009 and 2014 only 33 percent of the city's population have access was attributed to internal migration. The majority of to piped water, traffic congestion is on the rise, as migrants move to cities for employment. Other push is solid waste, flooding and pollution. There is also factors of rural-to-urban migration include market a rise in the number of informal settlements as shocks, rural poverty, landlessness and natural new residents cannot afford the existing supply of disasters. housing. If left unaddressed, these infrastructure needs will lead to further congestion, slums, The robust growth in recent years has brought pollution, and growing inequality, putting a drag a decline in urban poverty from 32.2 percent in on opportunities for future growth and poverty 2004/5 to 14.5 percent in 2015. The economic reduction. growth in cities has been fueled by an expansion in construction, services, and manufacturing. Yangon is the country's most dominant city and contributes approximately 25 percent of the country's GDP. ECONOMIC Economic inclusion in cities eludes many as they face challenges in the labor market related to: their lack of skills; high levels of informality; and INC LU SION discriminatory practices which particularly affect some subgroups. Levels of risk to natural ha6ards and economic shocks are high in Myanmar with the urban poor most acutely impacted. The lack of resilience to shocks affects their economic inclusion. S PAT IAL Spatial inclusion is a challenge given high land and housing costs (e.g.in Yangon) and the overall lack of basic infrastructure and services in cities. The needs for INC LU SION urban transport, water and sanitation, solid waste services, and drainage are substantial. The lack of affordable housing, especially in Yangon, means that many end up in informal settlements, particularly in periphery areas away from the central business district where many jobs are located. Conditions in informal settlements can be extreme with access to even the most basic services being limited or unaffordable when purchased through small scale private providers. This can have negative outcomes on health indicators and ability to increase income generation from home-based microenterprises further exacerbating exclusion SOCIAL Social inclusion is also challenging for subgroups -- in the case of urban areas in Myanmar, these have been identified as the urban poor, migrants, non-Bamar INCLUSION ethnic groups, religious minorities, women and the disabled. These groups often face exclusion from jobs, housing, and infrastructure and social services for various reasons. Beyond the precarious living conditions facing low income populations (many of whom are migrants), there are challenges related to legal documentation, tenure security and crime leave many at high risk. Given the high costs in cities, the urban poor often must seek loans in the informal sector to cover illness, other unforeseen events, or to make ends meet. A survey of poor households in Yangon found that 86 percent had taken such loans, with interest rates in excess of 20 percent. High levels of indebtedness are thus widespread and can perpetuate the cycle of poverty. Ilk4 Women may face security challenges in their subnational governments which presents an communities as reported in numerous studies, opportunity to better reach urban residents. and disabled are often excluded in accessing basic In practice, however, local governance is often services. Ethnic and religious minorities also face hampered due to limited implementation of policies/ challenges in accessing identification cards which frameworks, financial resources, and technical are important to social inclusion. capacities and is in much need of moderni6ation. These challenges result in inadequate service Current structures of urban governance and delivery and financing to meet growing needs on the finance have evolved to shift a number of political, ground. administrative and financial responsibilities to Approximately on 11> O0000% OO00- go000DOM- of Myanmar's population now reside in cities, much of which is due to internal migration flows 5 PRIORITIES FOR INCLUSIVE, SUSTAINABLE AND COMPETITIVE URBANIZATION Given Myanmar's relatively early stages of urbani6ation, the policies and investments made today will shape cities for decades to come. Prioriti6ing an inclusive cities approach will help to ensure that cities grow in an equitable way, which will have significant benefits for livability, prosperity and competitiveness. The framework of economic, spatial and social inclusion points to several priority policy recommendations that can be implemented in the short, medium and longer term (See Table below). Many of the recommendations come back to the need for investments in: i) sustainable urban infrastructure and urban upgrading to provide basic services for all and ensure mobility for the flow of people, goods and services; ii) building resilience to mitigate the impact of shocks on the economy and on people's livelihoods and health; iii) facilitating access to legal documentation for migrants and Taking these recommendations forward will require specific subgroups, and targeting social additional work to identify champions, find relevant programs for those that are particularly entry points for private sector investment, and vulnerable to exclusion and may not be ensure a stable governance framework aligned able to benefit from urban opportunities; with sufficient technical capacity and financing for and implementation. These are challenges that the World Bank and other iv) capacity building and new financing for development partners can support in partnership urban development. with the Government of Myanmar. 6 Indicative Time Frame: Short term (S): 1-2 years Medium term (M): 2-3 years Priority Policy Recommendations Longer term (L) 3-5 years for Inclusive Urbani6ation in Myanmar CHALLENGE OUTCOME PRIORITY ACTIONS LEAD AGENCIES Promoting economic inclusion to foster job creation and resilience to shocks High informality Improve In-situ community based urban Development limits opportunities for upgrading (M) Affairs opportunities and informal workers begin identification of high risk Organi3ations links to exclusion areas, needs and upgrading plan (S) (DAOs)/ City * secure financing (S-M) Development * implementation (M-L) Committees (CDCs) Access to micro finance for small Ministry of entrepreneurs (M-L) Construction; * develop enabling environment and Ministry of incentives to foster micro finance Education; (M-L) Planning and * ensure gender equality in access Finance (M) Transport investments to enable mobility to jobs and markets (L) * Education and training for skills in urban jobs (L) * prioriti3e vulnerable groups (S-M) * investments in access and quality improvements (L) Some areas in Build resilience to In-situ community based urban DAOs/ CDCs cities highly natural ha6ards upgrading in high risk areas (S-M) * Ministry of vulnerable to * identify and prioriti5e investments Construction flooding and other (S) * Ministry of natural ha5ards * begin implementation (M) Social Welfare, Relief and Drainage/solid waste management Resettlement (M - L) * identify and prioriti5e highest risk areas (S) * implementation (M) Early warning systems (S) * design and implement approach to reach the most vulnerable (S) 7 Indicative Time Frame: Short term (S): 1-2 years Medium term (M): 2-3 years Longer term (L) 3-5 years CHALLENGE OUTCOME PRIORITY ACTIONS LEAD AGENCIES Promoting spatial inclusion to improve access to affordable land, housing and services for low income, and vulnerable populations Substantial Invest in equitable Infrastructure investments needed DAOs/ CDCs infrastructure access to in water, sanitation, roads, drainage, Ministry of deficits limiting sustainable urban solid waste management (M-L) Construction; successful infrastructure identify and prioriti3e needs with Ministry urbani3ation targeting of areas for greatest of Natural and contributing impact (S-M) Resources and to poor living ensure participatory design that is Environmental conditions gender, disabled-informed (S) Conservation begin implementation (M-L) (MOREC) Shortage of Improve and In-situ upgrading of existing stock and DAOs/ CDCs affordable expand affordable slum areas (M-L) Ministry of housing, large and housing diagnostic needs assessment and Construction; growing number development of affordable housing Construction of informal plan (S) and Housing settlements ensure target is for low income Development populations (S) Bank (CHDB); * create enabling environment for * Ministry of housing supply and demand (M) Planning and * develop approach to incentivi5e Finance private sector for low income market (S-M) * implementation (L) Implement the National Land Use Policy (S-M) * enable and train staff for implementation (S-M) Limited urban Improve Align plans across agencies (land use, DAOs/ CDCs planning results integrated spatial transport, environment, disaster risk) Ministry of in congestion, planning for (S) Construction sprawl, ha5ard inclusive and set up coordination mechanism (S) Ministry of risk, inequality, resilient urban invest in geospatial data and sharing Social Welfare, and can affect development platforms (e.g. plan for national Relief and city growth spatial data infrastructure) (S) Resettlement opportunities Ensure planning is gender and disability -informed Capacity building (M-L) * identify needs and develop longer term strategy (M) * implementation (L) 8 Indicative Time Frame: Short term (S): 1-2 years Medium term (M): 2-3 years Longer term (L) 3-5 years CHALLENGE OUTCOME PRIORITY ACTIONS LEAD AGENCIES Promoting social inclusion to improve conditions for vulnerable groups to fully participate in society Some are not able Target social Targeted programs designed to: link DAOs/ CDCs to fully participate programs to migrants with job opportunities, and Ministry in job markets or marginali3ed provide assistance for disabled (M) of Labor, access services groups identify and prioriti3e needs (S) Immigration and (migrants, ethnic program design, implementation (M) Population; groups, disabled, Ministry of women) Addressing gender and other Social Welfare, discrimination (S-M) Relief and * awareness raising, education (S) Resettlement * policy reform (M) Lack of Facilitate Reform of identification card system DAOs/ CDCs documentation access to legal to ensure equity and remove obstacles Ministry and identification documentation linked to migration status (M) of Labor, can prevent identify equitable approach and Immigration and citi5ens from design system (S) Population; accessing jobs, implementation (M) Home Affairs services. Ensuring good governance and finance for urban development is fundamental to creating inclusive, competitive and sustainable cities Fragmented Strengthen Streamline processes for urban * DAOs/ CDCs governance coordination management, delivery (S) * Relevant hampers decision between * carry out diagnostic assessment sectoral making and government of processes and develop Ministries improvements on agencies for recommendations for efficiency for the ground. decision making core urban services (S) and urban * implement changes in a phased management manner (S-M) Hori5ontal and vertical coordination needed (S-L) * carry out institutional mapping and assessment for core agencies and recommend reforms (S) * implement changes in a phased manner (M-L) Invest in capacity building for implementation (M-L) 9 Indicative Time Frame: Short term (S): 1-2 years Medium term (M): 2-3 years Longer term (L) 3-5 years CHALLENGE OUTCOME PRIORITY ACTIONS LEAD AGENCIES Ensuring good governance and finance for urban development is fundamental to creating inclusive, competitive and sustainable cities Urban plans and Strengthen Engage communities and citi3ens to DAOs/ CDCs programs can be participatory help to promote inclusion (S) Ministry of disconnected from planning for urban mainstream participation in urban Construction citi3en's needs. development planning and program design (S) * train relevant staff (S) * ensure low income communities are included (S) Strengthen Develop a holis- Utili5e intergovernmental fiscal Ministry of participatory tic and equitable transfer mechanisms to equalie Planning and planning for urban approach to fi- regional disparities (M) Finance; development nancing for urban diagnostic work to identify approach Ministry of development for reform (S) Commerce * implementation (M) Strengthen local revenue generation (M - L) * diagnostic work to develop proposals for increasing property tax revenues (S) Allow more local discretion over funds use (S) * Develop transparent decision making and implementation process (S) Scale up private sector financing through improvements in enabling environment (M-L) * Address existing bottlenecks through reform (M-L) * Invest in capacity building (S-M) Explore use of Land Value Capture for larger cities (S-M) * Carry out diagnostic work to identify key opportunities (S) * Implementation (M) 10 w - - *- a a, i n • * a I For more information and the full report, please visit: www.worldbank.org/myanmar WORLD BANK GROUP