CDS and Sustainable Urbanization in Developing World.

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Proceedings, AcE-Bs 2011, Savoy Homann Bidakara Hotel, Bandung, Indonesi, 15-17 June 2011
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City Development Strategies (CDS) and Sustainable Urbanization
In Developing World
S. Mostafa Rasoolimanesh
1
, Nurwati Badarulzaman
2
& Mastura Jaafar
3
1, 2, 3
Universiti Sains Malaysia, Pulau Pinang, Malaysia
rasooli1352@yahoo.com
ABSTRACT
A process that balances among economic, environmental and social perspective on urban area is prominently known as
“Sustainable urbanization”. There is an expert system required to create this balance. Alternatively, to balance various aspects,
urban planning is a conventional tool adapted. To achieve sustainability, urban planning has a key role in providing the balance.
In significantly represented portion of developing countries, City Development Strategies (CDS) is an emerging strategic urban
planning approach to maintain sustainability. This achievement varies at different level based on various definitions of CDS. By
choosing some specific definitions of CDS by international agencies, this paper studies and compares the accomplishment.
© 2011 cE-Bs, FSPU, UiTM. All rights reserved.
Keywords: City Development Strategies (CDS), Sustainable urbanization, developing countries
1. Introduction
The balance between economic, environmental, and social necessities is the aim of sustainable urbanization. Cities
should develop their social and economic structure to build the sustainable urbanization, without damaging their
natural environment and achieve appropriate equilibrium amidst humans and the natural resources, upon whom they
depend to live. (Abu-Ghazalah, 2008) Attainment of this equilibrium is possible based on system that combines
individual opinion provided by participation of citizens with in this process and scientific knowledge that can be
provided by scientific analysis. (Jepson, 2001 as cited in Roy, 2009) In this system, sustainable urban development
accounts for “as a new large-scale vision to guide the planning agenda for the twenty-first century”. (Saha &
Paterson, 2008, p.22)
To make a balance between different aspects, urban planning is a conventional tool used which also can be a
significant tool for promoting the interaction among planners and officials and the local community. (Diamantini &
Zanon 2000) In making sustainable urban development, urban planning can play an eminent role. In order to make
balance between four aspects economic, environmental, social, and governance is the aim of sustainable urban
development .This further reaches to livable productive and inclusive cities, towns and villages (UN-HABITAT
2009) especially the methods that render participation of decision-makers and stakeholders and new tools that enable
decision-makers to answer sufficiently. (Malkina-Pykh, 2002)
To ascertain the social, economic, and environmental impacts of urban policies is where the where guidance
provides by City Planning Tool. It enables for a systematic analysis of the relationship between social, economic,
and environmental developments, which further helps in describing the reciprocal dependence of city planning and
consistent development at the strategic and operational level. (Rotmansa, Asselta & Vellingab, 2000) In order to find
a new role for urban planning in sustainable urban development, the current approaches of planning must change
toward strategic planning. The main aim especially for developing world is played by planning area for sustainable
urbanization in promotion of future urban and regional sustainability in response to global changes and major trends
in the world that affect in cities. In order to evaluate the sustainability of city policies, the strategic urban planning

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systems evolved over the last decade(s) most of the times comprise of a framework coupled with a set of indicators.
( Rotmansa, Asselta & Vellingab, 2000) So in order to evaluate of sustainability in the process of development, it
should compare significant features of sustainable urban development to key features of the process of urban
development.
Cities Alliance and its member organization such as World Bank, UN-Habitat, Asian Development Bank (ADB)
and others basically funded and made prominence of CDS as a strategic urban planning approach. By developing
and enhancing of local governance, CDSs try to improve local economics and reduce urban poverty while also
contributing towards relationship between sustainable urbanization goals and local objectives and priorities. (ECON
& CLG, UTS, 2005) Greater than 200 cities in developing world applied CDS until the year of 2009. However
CDSs have many definitions and are different especially in content and themes and do not possess equal proportion
of attaining sustainable development and as such study of this achievement is very important. In order to find the
relationship between CDS and sustainability in this paper, the definitions of CDS in developing world has been
reviewed and compared to aspects of sustainable urbanization.
2. City Development Strategies (CDS), Concepts and Contents
In 1998, the CDSs were started by the experiences in East Asia. The earliest of CDSs were funded by the World
Bank and were applied in Indonesia, Philippine, Thailand, Vietnam and China. In 1999, poverty reduction became
one of the fundamental objectives of CDS after establishing Cities Alliance. Few of the focuses that some cities had
were on the local economic growth, enhancement of local governance, sustainable development, Millennium
Development Goals (MDGs), and so on. (ECON & CLG, UTS, 2005) Till date, more than 200 cities mostly in
developing countries have adopted and reaped the benefits associated with this approach.
“For answering to economic realities within a competitive environment, CDS targets on the process change,
focuses on urban dynamics and opportunities, and adopts a flexible strategy. It also helps to build stakeholder
capacity to manage a city more effectively and to reassure and invite businesses in national and global markets. It
does this by encouraging stakeholder participation and empowerment. Thinking about the future within a CDS
framework often changes the way that a city is managed and planned.” (ADB, 2004, P.5)
Developing cities require the effective approaches to use restricted financial and human resources in a competitive
and unpredictable economic condition in order to accomplish objectives. The capital flows to cities having good
economic situation and an effective CDS can attract both capital and usage in suitable condition. (Cities Alliance,
2006a) Local stakeholder plans a process called CDS to formulate a vision for their city through a participatory
process. This engages assessment and analysis of the city’s perspectives for development, the acceptance of
priorities for investment and development, and implementation of this vision via partnership-based approaches. It is
therefore both a process and a content to promote competitiveness, livelihood, management, and bankability of the
respective city (Kyung-Hwan, 2002). To develop a sustainable vision for their cities and a strategy for achieving it
The City Development Strategies (CDS) provides a methodology for mayors, private sectors, and citizens. However,
comprehensive approaches to connect the environmental sustainability to economic growth, poverty reduction, and
the other urban challenges are not yet customary in many CDSs (Cities Alliance, 2006b).
Depending on the location, the context, and the involvement of players, CDSs assume different forms. There are a
several city objectives and themes. For cities there are wide ranges of objective and themes and the two categories of
themes by the World Bank and UN-Habitat has been explained in Table 1 as follows. (ECON & CLG, UTS, 2005)
The two international agencies namely the World Bank and UN-Habitat set up and fund some CDSs in developing
countries. The World Bank and UN- habitat which focuses on four and five themes respectively have some of them
in common.
Following five themes for CDS have been presented by cities Alliance (2006b) after having attained the
experience of preparing 150 CDS around the world and having conducted most important research in East Asia that
have emphasized the importance of infrastructure in pro-poor development and urban competitiveness by ADB &
JBIC and the World Bank has presented five themes for CDS.

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Table 1: The Themes of CDS by the World Bank and UN-Habitat
The World Bank UN- Habitat
Livability: the poor achieve a healthy and dignified living
standard
Shelter: Adequate housing and basic services; security of tenure;
access to land and credit
Social Development & Eradication of Poverty: Equal opportunities
for a safe and healthy life; social integration; support for disadvantaged
groups; gender equality
Competitiveness: buoyant, broad-based growth of employment,
incomes and investment
Economic Development: Stronger small and micro enterprises;
public/private partnerships; access to productive employment
Good governance: inclusion and representation of all groups in
the urban society; accountability, integrity and transparency of
local government
Governance: Participation and civic engagement; transparent,
accountable and efficient governance; sound financial management;
decentralization and strong local authorities
Bankability: sound financial management of local government
Environmental Management: Balanced settlement structures; water
management; reducing pollution; disaster prevention; environmentally
sound transport etc
Source: (ECON & CLG, UTS, 2005)
• Livelihood;
Livelihood covers three areas: (i) the business climate and capacity for creating small-business, the business
climate is very different in cities, but cities try to attract investment in a diversity business climate and make a
suitable business area to organize small business and business network (ii) urban competitiveness, a CDS should
determine a comparative and competitive advantage that and create economic cluster in order to attract investor and
achieve economic growth ; and (iii) human resource development, that has key role to prevent or relieve poverty.
It fulfills based on accessing to training, quality of that.
• Environmental sustainability;
Environmental sustainability in CDS process can be brought out designers in three areas: i) environmental quality
such as air & water quality are very important in environmental sustainability; ii) service delivery including
geographical coverage, accessibility and affordability should be sustainable especially in developing countries, this
concerns is very significant; and iii) energy efficiency that affect in welfare of residents.
• Spatial form and its infrastructure;
Without required infrastructures, urban economic competitiveness and welfare of a city’s residents can’t be
accomplished. A major role is played by spatial form in urban congestion, energy efficiency accessibility and
distribution of services; therefore it can be essential in poverty reduction.
• Financial resources;
How finance resources need to enforce infrastructures, public facilities etc. can be determined by financial
analysis of a city. Financial analysis predicts and provides prior condition to attract private sector funding, issuing

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bonds, and financial innovation. Revenue diversity and rising them on one hand and the control of expenditures,
cash-flow management on the other hand, and in sum financial planning and budgeting are very important in a CDS.
• Governance;
Due to close proximity between local government and main decision makers, Governance has a main role in CDS
playing a critical role of a catalyst between public and private sectors, civil society and labor market decreasing
negative effects in low-income and vulnerable people. (Cities Alliance, 2006b)
Relating to the objective of the CDS, location, and players involved, the contents and themes of CDSs differ from
one city to another. There is a wide range of objectives and themes. To evaluate and compare CDS content with the
principle of sustainable development, we need specific definitions of CDS. The three chosen definitions of CDS by
international agencies in this paper to assess the commitment of CDS to sustainable development are the World
Bank, UN-Habitat, and Cities Alliance.
3. The concepts and aspects of Sustainable Urbanization
In 1972 at the United Nations Conference, the concept sustainable development was brought out on the Human
Environment in Stockholm and in 1992 among the United Nation Conference on Environment and Development in
Rio De Janeiro approved Agenda 21 in order to promote Sustainable Human Settlement Development and in 1996 in
Habitat II try to present a statement to Localize Agenda 21 (LA21) in urban areas. (Whitehead, 2003) In response to
urban challenges, the concept of sustainable development was stated. Due to some major trends such as
globalization, decentralization, and rapid population growth, cities faced some challenges. The problems such as
social inequalities, slums and informal settlement, and climate change had the impact in economic, social and
environmental condition. In economic, social, environmental and governance aspects the sustainable development
was articulated in order to respond to urban conflicts. (Malkina-Pykh, 2002) There are about 200 definitions for
sustainable development but the definition of sustainable development is still not clear. (Parkin, 2000, as cited in
Keivani, 2010) The review of definitions of sustainable development often presents the problems that sustainable
development should response those but the endpoint seem so broad and there is not specific point. (Saha & Paterson,
2008)
However the urban sustainability can categorize in two major sections; i) Urban sustainability or sustainable city,
and ii) sustainable urban development or sustainable urbanization. The terms urban sustainability, and sustainable
city apply to the suitable conditions such as the proper use of resources, protection of the natural environment, least
possible use of non-renewable resources, economic growth and variety, community self-confidence, individual
welfare, and satisfaction of basic human needs. (Shen et al. 2011 & Roy, 2009) According to the United Nations
Sustainable Cities Program, development of a sustainable city depends on its continuing natural resources. A
sustainable city sustains a stable security from environmental adventures that may threaten development
achievements. (Whitehead 2003) According to Whitehead (2003, p.1188), “it is asserted that the sustainable city
represents an economic space within which the social, economic and ecological contradictions of capitalism are
being managed and strategically addressed.” whilst sustainable urbanization and sustainable urban development
apply to a dynamic process towards the suitable conditions, that in this process is paid attention to environmental,
economic, social and governance sustainability as an equal concern. (Shen et al., 2011)
In order to balance economic, environmental, and social necessities, sustainable urbanization is needed. Local
Agenda 21 (LA21) was proposed at the United Nations Conference on Environment and Development (UNCED) in
1996 to make the balance. LA21 is “an agenda that sets tasks and a vision in order to promote sustainable
development at the local level and shows the menu of action.” (Nakaguchi, 2004, p. 28 as cited in Mori, 2007)
According to LA21 sustainability has four dimensions, social, economic, environmental and institutional aspects.
(Spangenberg, Pfahl & Deller, 2002)
Saha & Paterson’s (2008) study reviewed Protney (2003), Jepson (2004) and Conroy (2006) and defined four
aspects of sustainable urbanization, i) Environmental Protection, ii) Economic Development, iii) Social Justice and
Equity, and iv) Administration and Governance that Saha & Paterson emphasize on environmental, economic and
equity aspects. (Table 2) The elements of these aspects and the principle of sustainable urban development are

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presented in this research. To evaluate the commitment of principles of sustainable urban development on CDS this
study is befitting because these activities have been used to assess local government and urban plan to accomplish
sustainability.
Table 2: The Aspects of Sustainable urbanization
Environmental protection Economic Development Social Justice and Equity
1. Alternative energy offered to consumers
2. Energy conservation effort (other than
green building requirements)
3. Environmental site design regulations
4. Green building program
5. Renewable energy use by city government
6. Curbside recycling program
7. Environmental education programs for the
community
8. Green procurement
9. Water quality protection
10. Environmentally sensitive area protection
11. Open space preservation program
12. Operation of inner-city public transit (buses
and/or trains)
13. Transportation demand management
14. Ecological footprint analysis
1. Agricultural protection zoning
2. Brownfield reclamation
3. Cluster or targeted economic development
4. Eco-industrial park development
5. Infill development
6. Purchase of Development Rights and/or
Transfer of Development Rights
7. Tax incentives for environmentally
friendly development
8. Urban growth boundary and/or urban
service boundary
9. Business retention programs
10. Empowerment/enterprise zones
11. Local business incubator programs
1. Affordable housing provisions
2. Daycare services for service sector and
low-income employees
3. Homeless prevention and intervention
programs
4. Inclusionary and incentive zoning
5. Jobs–housing balance
6. Living wage ordinance
7. Mass transit access with local income
subsidies
8. Neighborhood planning
9. Sustainable food systems or food
security programs
10. Women/minority-oriented business
Community Development Corporations
(CDCs) and investment programs
11. Youth opportunity and anti gang
programs
Source: (Saha & Paterson, 2008)
4. Comparison of City Development Strategies and the principle of Sustainable Urbanization
There has been a comparison between three definitions of CDS by the World Bank, UN-Habitat, and Cities
Alliance and a specific definition of sustainable urban development presented by Saha & Paterson (2008) that has
been applied by some cities and local government in this section. The three aspects of sustainable development,
namely, environmental protection, economic development, and social equity have been compared to the themes and
contents of definitions of CDS (Tables 2, 3, and 4).
The four major themes i.e. livability, competitiveness, good governance and management, and bankability are
included in the definition of CDS by the World Bank. Livability includes poverty reduction, reducing inequality,
building a healthy urban environment, increasing personal security, political accountability, and creating recreational
facilities available to all. Some parts of environmental protection activities which are found in Table 2 come under
the components of this theme (livability) cover, and many activities on social equity which is found in Table 4.
However, according to Table 2, the environmental protection dimension is weak in this definition of CDS, because
the key attention of the World Bank definition focuses on the economic and social aspects. A competitive city with
competitive advantages attracts capital investment and creates a good business climate, promotes city products,

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provides employment, and increases citizen satisfaction. This theme covers activities on economic development
which are found in Table 3, and social equity.
Shelter, Social development, Economic development, Governance, and environmental management are the five
themes defined in The UN-Habitat definition. Shelter theme mainly aims at the needs of poor and low- income
people by improving their housing .Social development focuses on public health, gender and minority rights,
education, crime and so on. Some issues such as access to job, attention to small business, infrastructure, and
competitiveness are focused by Economic development. Governance theme includes transparency and
accountability, improving local democracy, and stakeholder’s participation. And environmental theme include water
and air quality & pollution waste management, public space management, preventing disaster, energy efficiency,
and public transport. These themes based on the comparison in Table 2,3, and 4 cover eight activities on
environmental aspect, four activities on economic aspect, and eight activities on social equity aspect of sustainable
urbanization.
Table 3: The Comparison Environmental Aspect of Sustainability with CDS Themes
Environmental Protection
CDS Themes
Cities Alliance
CDS Themes
The World Bank
CDS Themes
UN- Habitat
1. Alternative energy offered to consumers 9
9
2. Energy conservation effort (other than green building
requirements)
9
9
3. Environmental site design regulations 9 9
9
4. Green building program
5. Renewable energy use by city government
6. Curbside recycling program
9
7. Environmental education programs for the community 9
8. Green procurement
9. Water quality protection 9 9
9
10. Environmentally sensitive area protection 9 9
11. Open space preservation program 9 9
9
12. Operation of inner-city public transit (buses and/or trains) 9 9
9
13. Transportation demand management 9 9
9
14. Ecological footprint analysis 9
9 : relevant (Yes)
The Cities Alliance definition of CDS has five key themes, in which livelihood covers three major areas, namely,
i) business climate and the capacity for creating small-businesses (creating suitable jobs, especially for low-income
and poor people), ii) urban competitiveness (a CDS should determine a comparative and competitive advantage that
creates economic clusters) to attract investors and achieve economic growth, and iii) human resource development,
that plays a key role in preventing or reducing poverty. This theme covers economic development and social equity
of sustainability in Tables 3, 4. Environmental sustainability and spatial form are two other key themes defined by
the Cities Alliance. These include such areas as i) environmental quality, such as air and water quality; ii) service

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delivery, including geographical coverage, accessibility, and affordability; iii) energy efficiency, which affects the
welfare of residents; iv) infrastructure; and v) spatial form, which plays a key role in urban congestion, energy
efficiency, accessibility, and distribution of services.
Table 4: The Comparison Economic Aspect of Sustainability with CDS Themes
Economic Development
CDS Themes
Cities Alliance
CDS Themes
The World Bank
CDS Themes
UN- Habitat
1. Agricultural protection zoning 9
2. Brownfield reclamation 9
3. Cluster or targeted economic development 9 9
9
4. Eco-industrial park development
5. Infill development 9
6. Purchase of Development Rights and/or Transfer of
Development Rights
9
7. Tax incentives for environmentally friendly development 9
8. Urban growth boundary and/or urban service boundary 9 9
9. Business retention programs 9 9
9
10. Empowerment/enterprise zones 9 9
9
11. Local business incubator programs 9 9
9
9 : relevant (Yes)
Table 5: The Comparison Social aspect of Sustainability with CDS Themes
Social Justice and Equity
CDS Themes
Cities Alliance
CDS Themes
The World Bank
CDS Themes
UN- Habitat
1. Affordable housing provisions 9 9
9
2. Daycare services for service sector and low-income
employees
9 9
3. Homeless prevention and intervention programs 9 9
9
4. Inclusionary and incentive zoning 9 9
5. Jobs–housing balance 9 9
9
6. Living wage ordinance 9 9
9
7. Mass transit access with local income subsidies 9 9
9
8. Neighborhood planning 9 9
9
9. Sustainable food systems or food security programs

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10. Women/minority-oriented business Community
Development Corporations (CDCs) and investment programs
9
9
11. Youth opportunity and anti gang programs 9
9
This theme covers many activities on environmental protection in Table2 and some activities on economic
development and social equity. Financial resources is another theme defined by Cities Alliance, which is important
in the implementation of a sustainable plan, but as mentioned earlier, does not take into account other definitions of
sustainability.
This analysis and comparison clarify various definitions of CDS, which result in different forms and proportion of
sustainability. In other words the focus of CDSs seems to lie solely on one aspect and there is yet to be a
comprehensive approach to connect all aspects of sustainability.
An appropriate and universally accepted definition of sustainability is very important. Different result comes with
different definitions and components of sustainability. Considering this, relationship between CDS and sustainable
urban development assessed, it is vital for one to know which type of CDS and definition of sustainable urban
development is to be used adequately to measure sustainability.
5. Conclusion
Due to global changes and changes in urban area the cities face new challenges, and require different approaches
in urban planning. The strategic planning can pact with these challenges and attains sustainable urban development.
CDS is a strategic planning approach that applies to reduce urban poverty, improve economic growth and achieve
sustainable development. However, what need to be resolved is the relationship between CDS and sustainable
urbanization. The varied definitions and concepts of CDS and sustainable urbanization were discussed in section 2
and 3. In order to compare the content of CDS and the aspects of sustainable urbanization, three concepts of CDS
and one set of elements and activities of sustainable urbanization were picked out. This comparison explained varied
definition of CDS result in different proportion and different form of sustainability. So the proportion of
achievement to urban sustainability by CDS relate to definition of CDS that apply and the definition of sustainable
urbanization that are used to assess sustainability.
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