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World Cities Day: challenges and strategies for sustainable and resilient urbanism

October 29, 2021 por Tatiana Gallego Lizon - Gonzalo Lanfranco - Federica Volpe - Editor: Daniel Peciña-Lopez Leave a Comment

Este artículo está también disponible en / This post is also available in: Spanish


This Sunday, we join the global celebration of World Cities Day, highlighting the promotion of sustainable urbanization and international cooperation in tackling shared urban challenges. As we mark this anniversary alongside the United Nations Conference on Climate Change in 2021, we dedicate this blog to addressing the key urban threats faced by our region, with a particular focus on the interplay between cities and the environment. Our aim is to raise awareness of the pivotal role cities play and the critical juncture we find ourselves in, striving for sustainable and resilient development in Latin America and the Caribbean (LAC).

What challenges do cities in our region face?

With 81% of the population residing in urban areas, LAC stands out as one of the most urbanized regions worldwide. However, significant challenges persist within the urban landscape, including the pressing need to address the housing deficit, as 45% of the urban population in the region live in precarious housing conditions. High levels of housing informality, inadequate urban planning, limited access to services, and the impacts of climate change on informal neighborhoods are among the challenges that demand urgent attention.

Despite the efforts made in recent decades, at least 20% of LAC’s urban population still resides in informal neighborhoods. These communities often find themselves situated in high-risk areas without basic infrastructure, rendering them particularly vulnerable to severe weather events associated with natural disasters. This issue is of paramount importance considering that, over the past 30 years, more than 91 million inhabitants and 24 million homes in our region have been affected by floods or storms.

In 2020 alone, the hurricanes Eta and Iota affected approximately 9.9 million people, causing substantial damage to infrastructure, especially in Honduras, Guatemala, Nicaragua, and Colombia. This year, in addition to grappling with the ongoing COVID-19 emergency, LAC continues to battle the consequences of climate change and natural disasters that have plagued the region. The recent 7.2 magnitude earthquake in Haiti on August 14 stands as a poignant example, leaving 2,246 dead, 12,763 injured, and displacing over 26,200 individuals. Thus, the question arises: how can we forge safer and more resilient cities that account for climate change and natural disasters?

The IDB and its 2025 Vision: Opportunities for Sustainable and Resilient Urban Development

Within the IDB’s Housing and Urban Development Division, we are steadfast in our commitment to integrate the mitigation of climate change effects into city management and address the existing development gaps within the region. Notably, last year, 57.4% of the Division’s investments were allocated to adaptation and mitigation projects. This demonstrates that, for the IDB, climate change, housing, and cities form part of a cohesive framework.

Throughout 2021, our efforts have centered around supporting a green and equitable recovery process. This includes actions targeting informal areas, comprehensive sustainability strategies, and initiatives that bolster adaptation and mitigation of climate change impacts within cities. One such example is the neighborhood improvement project in Chile, which provides $100 million in financing to support vulnerable populations.

Furthermore, we strive to ensure that cities in our region do not lag behind in the economic and social recovery necessitated by the pandemic. To achieve this, we are dedicated to enhancing climate change resilience through capacity building, dialogues, and the exchange of knowledge and solutions. Aligned with the IDB Vision 2025, our Division operates with the primary objective of constructing a sustainable recovery from the pandemic. This vision prioritizes the adaptation of our cities to climate change and the creation of sustainable formal employment opportunities.

Outlined below are key areas of action being pursued by our Division in 2021. These initiatives align with the 2025 vision and strive for the sustainable and resilient development of our cities:

  • Adapting Cities to Climate Change and Strengthening Resilience

To ensure our cities can withstand the adverse effects of climate change, it is crucial to incorporate local population knowledge and opinions into urban planning and investment decisions. Engaging local stakeholders, following latest urban trends, and utilizing cutting-edge urban tools and institutions can significantly enhance project design and execution. Moreover, reducing the local financing gap can be achieved through financial innovation tools such as local fundraising, sustainable bonds, green funds, and multilateral banking, enabling cities to implement green and climate-focused projects effectively.

  • Promoting Biodiverse Cities

Accelerating the recognition of natural capital and biodiversity within urban areas is a pressing necessity. We must prioritize nature-based solutions and foster the coexistence of diverse life forms in our cities. How can biodiversity and ecosystem services become critical pillars for enhancing urban quality of life beyond human existence? The publication “Biodiversity and Resilient Cities in Latin America and the Caribbean” serves as a valuable guide for decision-makers, providing practical strategies and methodologies to generate tangible benefits from biodiversity promotion in cities. It emphasizes the importance of dialogue, understanding, and financing mechanisms that protect and enhance biodiversity within urban environments.

  • Developing the Housing Sector to Accelerate Economic Recovery

The housing sector serves as a powerful tool to stimulate sustainable and resilient recovery in LAC. Its direct impact on economic reactivation is evident, as the construction sector accounts for 13.1% of the region’s GDP, with residential construction representing 45% of the total. By prioritizing housing sector development, we can drive economic growth while addressing pressing social and environmental challenges.

The future of cities in Latin America and the Caribbean

Climate change, biodiversity loss, and urban informality loom as significant challenges confronting cities in our region. These tensions, compounded by the devastating impacts of the COVID-19 pandemic, have led to widespread social, cultural, economic, and health repercussions. However, the cities of Latin America and the Caribbean possess the potential to recover, adapt, and prepare for the array of challenges that lie ahead in the short, medium, and long term. The Housing and Urban Development Division of the IDB is committed to supporting the innovative and robust development of cities across the region, providing technical and financial assistance, sharing knowledge, and promoting best practices that enable LAC to meet its climate change adaptation goals.

To ensure you stay updated on the latest blogs, news, and publications from the Housing and Urban Development Division, we invite you to register for our monthly newsletter. We also encourage you to share your thoughts and opinions on the significance of resolving the housing deficit and adapting our cities to climate change in the comments section below.

Authors listed by alphabetical order


Filed Under: Emerging cities, Sustainable development

Tatiana Gallego Lizon

Tatiana Gallego Lizon is the Chief of the Housing and Urban Development Division (HUD) of the IDB's Climate Change and Sustainable Development Sector (CSD). Between February 2015 and May 2017, she was the Director of the Urban Development and Water Division of the Southeast Asia Department of the Asian Development Bank (ADB). Between 2002 and 2014, she led the business development and identification, formulation, processing and implementation of urban lending and non-credit assistance to several countries in Asia. She was also responsible for the conceptualization and development of special sector work on topics such as competitive cities, cluster city development and metropolitan planning, PPP and urban infrastructure, climate change resilience in cities, e-government and smart cities, and other local government reform initiatives. Tatiana holds a PhD and MEng in Environmental Engineering from Imperial College London and a PGD in Political Studies from the School of African and Oriental Studies.

Gonzalo Lanfranco

Gonzalo worked as a consultant for the Inter-American Development Bank, being responsible for the communication and positioning strategy of the Cities Lab and Cities Network initiatives. He has 10 years of experience managing innovation projects, new product development and marketing strategies in 14 Latin American countries. Previously, he worked in the private sector for Scotiabank, BBVA, Belcorp, DDB and McCann Erickson. Gonzalo has a Master's Degree in Management of Creative Business & Social Innovation from EDHEC Business School (France), a PGDip in International Marketing from ESAN Business School (Peru) and a Bachelor's Degree in Communication and Advertising from the Peruvian University of Applied Sciences (Peru).

Federica Volpe

Federica Volpe is an international expert on urban development and urban innovation. She worked at the Inter-American Development Bank for the Housing and Urban Development Division for several years, working on housing policy issues and for the Cities LAB platform, whose objective is to promote urban experimentation in Latin America and the Caribbean. She has produced several publications and courses on urban development issues, including “Alquiler en numeros” a country fact sheet booklet on the rental housing situation in Latin America and the Caribbean. Previously, she worked in international organizations, NGOs and in the private sector in Chile, Austria, the United States and Italy. She holds a master's degree in Latin American Studies and Sustainable Development from the Edmund A. Walsh School of Foreign Service at Georgetown University, a master’s degree in International Relations from the University of Florence, and an undergraduate degree in Diplomatic Studies from the University of Trieste, Italy.

Editor: Daniel Peciña-Lopez

Daniel Peciña-Lopez is a specialist in international affairs, external relations and communication. He has more than 10 years of professional experience in diplomatic delegations, and international organizations in cities such as Washington DC, New York, Chicago, Madrid, Mexico City and Hong Kong, among others. Daniel is Master of International Affairs from Columbia University, Master of Science from the University of Oxford Brookes and Licenciado from Universidad Complutense de Madrid. In 2010 Daniel received the First National Award for Excellence in Academic Performance, from the Ministry of Education (Government of Spain) for being the university level student with the highest average GPA score in the country.

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Este es el blog de la División de Vivienda y Desarrollo Urbano (HUD) del Banco Interamericano de Desarrollo. Súmate a la conversación sobre cómo mejorar la sostenibilidad y calidad de vida en ciudades de América Latina y el Caribe.

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