Regardless of average income, cities and towns have been acting as the engines of economic growth in the Asia-Pacific region, which now hosts half of the world’s mega-cities. New configurations like mega urban regions, urban corridors and city-regions testify to the close links between urban prosperity and new patterns of spatio-economic activity. Productivity and creativity now enable some Asian-Pacific cities to diversify away from manufacturing and move into the global ‘knowledge economy’. These remarkable achievements have enabled Asia-Pacific to take the lead in socio-economic progress, too, with significant reductions in extreme poverty as well as improved conditions for slum-dwellers, an area where some countries have already reached the Millennium Development Goals.
Still, much remains to be done to reduce poverty in cities, where inequality is on the rise. It is incumbent on national and local government to deploy the strategies that will ensure a fairer distribution of the benefits of urban prosperity. Another, daunting challenge is now facing Asian-Pacific cities. In their pursuit of economic growth, they have not paid sufficient attention to urban environment and climate change issues. Demographic pressure weighs on natural resources. No other region in the world is more exposed to all sorts of natural disasters. Asia-Pacific owes most of its prosperity to coastal cities, which are vulnerable to sea-level rises. Now the imminent effects of climate change are compounding the problem, which calls for local mitigation and adaptation strategies. Some countries in the region have begun to understand the need for inclusive and sustainable urban development. This can only be achieved through broad-ranging policies and huge financial resources which require comprehensive institutional reform, including decentralisation and participatory approaches. This report highlights the major role which well-devised partnerships between national governments, urban authorities, business and civil society can engage in to meet the current and prospective challenges to Asian-Pacific prosperity.