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Building Resilient Urban Economies

The UN has designated October 2 as World Habitat Day, a day when we reflect on the state of our cities and towns and the fact that everyone has the right to adequate housing. It is a day to remind the world that each of us has the power and responsibility to shape the future of our communities. This year, World Habitat Day focuses on the theme "Resilient Urban Economies: Cities as Drivers of Growth and Recovery," exploring how cities can position their economies to benefit their residents. The year 2023 has been especially challenging for urban economies, with global economic growth at around 2.5%. This is the slowest growth rate since 2001, except for the initial impact of the COVID-19 crisis in 2020 and the global financial crisis in 2009.


Resilient urban economies refer to the capacity and related capabilities of urban communities to effectively navigate and respond to challenges as defined by the UN Capital Development Fund. This includes planning for and anticipating negative shocks, whether short-term crises or long-term stresses, and being prepared to reallocate and mobilize resources to withstand and recover from these shocks. Resilience goes beyond returning to pre-crisis levels; it aims to place urban economies on a sustainable growth path while simultaneously strengthening their capacity to handle future shocks.


Cities and metropolitan areas are confronted with a diverse threats and challenges such as natural disasters or aging infrastructure systems, including roads, bridges, water systems. When these threats impact urban systems, they often place a heavy burden on the local economy. Recent global shocks, such as the COVID-19 pandemic and geopolitical events like Russia's invasion of Ukraine, have highlighted the urgency of preparing and reinforcing urban systems to ensure they can respond swiftly and effectively to crises. Considering that cities contribute more than 80% of the global GDP, according to the World Bank, it becomes clear that their economic resilience has a direct bearing on global economic stability.


Building economic urban resilience is a collaborative effort with urban planning at its core, enhancing adaptability through integrated strategies that simultaneously address economic, social, and environmental considerations. For instance, investing in green infrastructure, such as parks, green roofs, and sustainable drainage systems, not only enhances environmental sustainability by mitigating flooding and heat stress but also contributes to social well-being. Furthermore, rigorous risk assessment, which includes input from various stakeholders such as government agencies and local authorities, helps identify vulnerabilities and potential threats to the city's economy. This leads to proactive measures and infrastructure improvements that go beyond just physical structures; they also include digital and social aspects to ensure functionality during crises. Involving the community is also crucial, as it fosters a shared sense of responsibility and collective action, empowering citizens, local businesses, and organizations to actively contribute to the city's ability to bounce back from challenges.

Building urban economic resilience is not only a response to challenges but also an opportunity to achieve inclusive development, strengthen social protection, enhance global health, embrace digital and innovative processes, and promote climate adaptation. By focusing on these strategies and working collaboratively across sectors, we can make our cities more resilient, ensuring a Future-ready urban communities worldwide.

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