By Lisa Da Silva and Daniel Perea
COVID-19 has unleashed a global shockwave unlike any seen in our lifetime. Not only has it cost human lives and stressed healthcare systems, it has inflicted psychological, economic, and political havoc as businesses shut, jobs are lost, and borders are closed around the globe. But pandemics are only one of many crises that can impact cities: extreme weather, civic unrest, financial crises, and technology disruptions can strike simultaneously, or concurrently.
In recent years, major shocks have occurred more often, each requiring city leaders to respond decisively to safeguard residents and businesses. For example:
· In the last two decades, New York City endured multiple shocks: the 9/11 terrorist attacks, the subprime mortgage crisis, and Hurricane Sandy. But today, the city is grappling with multiple crises; first it became the epicenter of America’s COVID-19 pandemic, then it saw the eruption of mass protests and civic unrest. Such crises stretch city resources and attention as mayors try to mitigate disease spread, address the root causes of the protest, and stem the human, political and economic devastation caused by both.
· Similarly, Cape Town in the Western Cape province in South Africa recently experienced a series of challenges. At the height of its 2017–18 water crisis, the city was forced to divert 60 percent of its agricultural sector water to urban sites and came close to reaching ‘Day Zero’, when the water taps would be empty. Just as the water crisis eased in 2019, Cape Town experienced power shortages and electricity rationing. Then last month the Western Cape became the epicenter of South Africa’s COVID-19 outbreak, with most cases occurring in townships and informal settlements.
Crises can exacerbate the economic divide between those who have resources to manage the obstacles presented, and those forced to absorb the brunt of its impact. With the continued rate of stresses and shocks, can city leaders avoid incorporating resilience measures that mitigate negative impacts and speed up recovery, into their long-term planning? Not if they want their city to attract talent and businesses, be competitive, grow, and offer improved quality of life to all!
In the wake of the pandemic, many IFC clients have sought help to meet increased health and emergency response costs, ensure continuity of essential public services, and support a sustainable and resilient recovery.
IFC is listening carefully, helping cities address their unique challenges. It is assisting the city of Izmir, Turkey to deploy an open data platform to catalyze innovative recovery solutions and utilizing behavioral science to improve tax payments in the waste sector. IFC is also helping two Ukrainian cities develop community outreach programs and track and manage disease spread using digital solutions.
Though destructive, catastrophes can force leaders to rethink and redesign old systems to address new challenges. Launched in 2007 with the support of IFC and other partners, Peru’s Municipio al Dia is a website cities use to help manage public investments. Post Covid-19, the citizen engagement platform was repurposed to rapidly disseminate information about the government’s pandemic responses. Such efforts build resilience and can fast track recovery.
San Jose (Costa Rica) is also rethinking urban development to revitalize its city center. Rather than depend on an investment approach dictated by budgetary constraints, the municipality, with support from IFC and other investors, is implementing an ambitious plan with parallel investments and policy interventions. Its revitalization strategy connects dimensions of urban mobility, broadband connectivity and heritage tourism to create a resilient ecosystem that enables sustainable prosperity and growth.
Looking ahead, cities will need to take proactive measures to build resilience and inclusivity into public service delivery, ensuring customized solutions to address each city’s unique circumstances, resources, and needs. What actions will the urgent challenges of 2020 require in the months and years ahead? What changes do you expect and hope to see in cities of the future?
Related Links:
· For more on IFC’s work in infrastructure and cities, please visit: www.ifc.org/infrastructure.
· Check out this recent webinar with Lisa Da Silva on the future of municipal finance and COVID-19 impact on investments in cities. Click here to watch the webinar (enter password: 5s.a375b).
· For more on Covid-19 impact on infrastructure, check out this series by IFC.
Lisa Da Silva is IFC’s global cities lead.
Daniel Perea is results measurement specialist at IFC.
