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The Challenge of

Sustainable Cities

Remarks by Alvaro Uribe VélezNovember 2012

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A world governed by cities

What stresses has globalization put on cities in Latin America? Are you

learning from each other how to deal with development of the cities?

Who do you look to for models?

+The big facts…

1. 600 Urban Centers generate 60% of the world’s GDP

2. Almost half of the world GDP in 2010 was generated in 362

cities located in developed nations.

3. 20% of the world GDP in 2010 was generated in 187 from

North America

4. In 2010 China’s Metropolitan Areas generated 78% of the

Nation GDP.

5. 74% of the Latin American and Caribbean population leaves

in cities.

McKinsey Institute Research shows…

+Latin American biggest cities…

City Population 2010 Population 2025 GDP 2010 (US$B) GDP 2025

Sao Paulo 19.7 23.2 437 912

Mexico City 20.1 21.6 255 459

Buenos Aires 13.1 15.2 191 384

Rio de Janeiro 11.8 13.6 181 356

Lima 9.2 11.8 77.3 184.7

Santiago 6.1 7.3 93 196

Bogota 8.5 11.4 85 184

+China’s Urban Revolution

City Population 2010 Population 2025 GDP 2010 (US$B) GDP 2025

Shangai 22.3 30.9 250 1.112

Beijing 18.8 29.6 206 1027

Tianjin 11.1 15.2 128 624

Guagzhou 11.1 14.9 146 573

Shenzhen 10.4 13.7 141 526

Chongqing 15.7 19.4 88.6 458

+How cities will impact the world…

1. From 2010 to 2025, the GDP of the world biggest 600 cities will rise

by over $30 trillion.

2. Over$10 trillion in additional annual investments needed in cities by

2025.

3. 1 billion new consumers in emerging market cities by 2025.

4. 60% of the new urban consumers will be bases in 440 emerging

cities.

5. Annual consumption in Emerging 440 cities is set to rise by $10

trillion by 2025.

6. Cities are expected to need to build floor space equivalent to

85%of today’s building stock (An area de size of Australia)

7. Nearly80 billion cubic meter increase in municipal water demand

expected in the world’s cities by 2025.

8. Over 2.5 times today’s level of port infrastructure needed to meet

rising container-shipping demand.

+The challenges of an

urbanized Latin America

Latin America has many emerging global cities. What is the right mix of

international and local goals for these cities? Would you say this is a

balance most countries in developing regions should be cognizant of?

+The big 4 big challenges…

Security

Transportation

Business Climate

Environmental Quality

The right mix of goals in Latin American Cities

+1. Security

City Country Homicides Rate per 100K

San Pedro Sula Honduras 1143 158

Juarez Mexico 1974 147

Maceio Brazil 1564 135

Acapulco Mexico 1029 127

Tegucigalpa Honduras 1123 99

Caracas Venezuela 3164 98

Torreon Mexico 990 87

Chihuahua Mexico 690 82

Guatemala Guatemala 2248 74

San Salvador Salvador 1343 58

Ciudad de Panamá Panamá 543 31

Medellin Colombia 1624 70

Cali Colombia 1720 77

Bogota Colombia 1387 19

+1.Security

Prevention

Education

Youth Employment

Citizen Participation

Social Programs

Social inclusion

Sanction

Intelligence

Man Power

Technology

Risk Mapping

Effective Judicial Systems

Technology

Call Centers

City Cameras

Rapid Response Tracking

Criminal Databases

Crime Scene Profiling

CSI

Communitary Support

Informants

Neighborhood Councils

Prompt denouncements

Policy framework…

+Transportation

1. Buenos Aires receives 1.4 million cars per day

2. Bogota has one million cars and 400.000 on average circulate every day

3. In Sao Paulo people who drive lose almost 3 ours in one of the many 100km traffic jams the city faces every day

4. The increase in per capita income has triggered the most rapid demand for cars in our region recent history

City Cars Motorcycle Taxis

Bogota 792.000 116.000 49.000

Buenos

Aires

4.285.000 470.000 45.000

Caracas 820.000 114.000 12.400

Mexico City 5.592.000 108.420 182.000

Sao Paulo 4.386.000 652.000 38.639

Lima 453.000 27.000 81.826

Key Figures 2007

(Source CAF 2009-2010)

+Transportation

Policy Actions

Integrated Massive

Transportation Systems

Reduce daily car circulation

Promote Car Pooling

Toll Roads for Rapid Access

Expand metro-lines

Improve urban planning

promoting functional districts

Policy framework…

+Business Climate

Country DB 2011 DB 2010 DB 2012

Mexico 35 41 48

Peru 36 46 43

Colombia 39 38 45

Chile 43 53 37

Argentina 115 113 124

Uruguay 124 122 89

Ecuador 130 127 139

Brazil 127 124 130

Venezuela 172 170 180

1. Countries are measured by their

capacity to create an adequate

environment for doing business.

2. Cities thus are the true epicenter

of economic activity, requiring

the right institutions to guarantee

a competitive development of

private initiative.

3. The World Bank Doing Business

report represents a good

instrument of measurement

+Business Climate

Indicator Brazil Chile Mexico Colombia Peru Venezuela

Starting a

Business

(Proceadures)

13 8 6 9 6 17

Starting a

Business (Days)119 22 9 14 27 141

Days for

Construction

Permits

411 155 105 50 188 395

Hours devoted to

pay taxes (Hours

per year)

2.600 316 404 208 380 864

Days to enforce a

contract616 480 415 1.346 428 510

Enforcing

Contracts (Cost %

Claim)

16.5 28.6 32 47.9 35.7 43.7

Cost to export

US$ per ContainerUS$1.730 US$745 US$1.420 US$1.770 US$860 US$2.590

The regional challenge to improve our business climate

+Business Climate in Colombian

Cities

City Procedures to

start a

business

Days to start a

business

Procedures for

a construction

permit

Hours

paying taxes

Time to enforce

contracts

(days)

Contract

enforcement

% of Claim

Bogota 9 20 11 208 1346 52.6

Medellin 9 12 13 208 768 40.1

Cali 11 13 19 208 1320 35.7

Barranquilla 9 17 13 208 1520 28.8

Cartagena 11 27 14 208 1300 44.8

+Business Climate

Cutting Red Tape

Simplifying procedures

Online services

Expedite Business

registration

Expedite contractual

judicial execution

Entrepreneurial Spirit

Incentives for starting a business.

Access to credit

Tax compliance simplification

Bankruptcy legislation

Investor Protection

Legal stability

Security

Zero tolerance with corruption

Incentives

Infrastructure

Energy

Roads

Water and sanitation

High Quality Utilities

Broad Band

Human Capital

Access to tertiary

education

Proficiency in math and science.

Bilingual professionals

High Quality Universities

Policy framework…

+Environmental Quality

1. Nine of 17 cities derive more than 80% of their electrical energy from renewable sources. São Paulo for

example relies entirely on hydropower and has no greenhouse gas emissions from electricity production

at all, contributing to its well above average performance in this category.

2. Often those cities with the most renewable energy tend to have the weakest climate change policies. Of

the nine cities with over 80% renewable energy, only three score better than average in this Index

category.

3. Only nine cites have full or partial eco-building standards. Just five have full regulations in place to

motivate households and business to lower their energy use.

4. Only four fully promote citizen awareness on ways to improve the energy-efficiency of buildings.

5. According to official data, fourteen cities collect and dispose over 95% of waste, and for eight cities the

figure is 100%.

6. Waste generated per person, at an Index average of 465 kg per year, is noticeably lower than the figure

in last year’s European Green City Index, at 511 kg per year.

7. On average 94% of residents in cities in the Index have access to sanitation, and for 13 cities the figure

is over 90%.

8. Wastewater treatment, on the other hand, is very poor. On average only 52% of wastewater is treated,

and eight of 17 cities treat less than half their water. Two treat none.

9. Medellin is the only city ranked well above average on sanitation, and it has invested heavily over the

last 15 years.

10. Index cities take the issue seriously through policies. All monitor their air quality, and codes and air

quality promotion in some form are also universal.

Latin American Green City Index

+Environmental Quality

Policy FrameworkEnergy

• Efficiency

• Energy Matrix in favor of renewable energy.

• New building codes

Emissions

• CO2 reduction targets

• Air Quality norms

• Transportation Standards

• Greener Vehicles

Waste Management.

• Better Standards

• Improvement of collection techniques.

• Capture and energy use of methane gases.

Water and Sanitation

• Better service provision

• Resolve coverage for low income informal settlements.

• High technology in residual water treatments.

Environmental Governance

• Better statistical information.

• High technical personnel

• International Best practices in policy design.

Land use

• Orderly planned expansion

• Utilities coverage

• Prevent informal settlements

• Land titles policies

Policy framework…

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Medellin Story

Medellin used to be associated with the drug cartel. Today we hear of

the Medellin project and Medellin just put in a bid to host the Youth

Olympics? How did you do it?

+12 Pillars of change

Road to

change

Democratic Security Urban

implementation.

Police Intelligence

Demobilization policies

National Government support for fiscal

Sustainability Agenda (Metro)

Vibrant entrepreneurial

spiritInvestment

Climate

New Business Development

Social Investments

High Quality Universities

EPM as a model of utilities MGT

Broad Band Access

Culture and creativity policies for social

cohesion

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www.alvarouribevelez.com