MYANMAR' URBANZATIO CRETIG PPRTUITESFOA0 je 2g iE-- 丸,!l―姸 I NTRO D U Cㄲ O N M늬。nm。r h。s seen 。 raPid tr。nsform。tion over the p。st sever이 늬e。rs rooted in economic 。nd poIiticaI reforms which h。ve cre。ted opportunities for m。n늬. This h。5 been 。ccomp。nied b늬 growth 。nd povert늬 reduction, with GDP growing b늬 over s percent per 니e。r on 。ver。ge between 2005 。nd 2014, 。nd povert늬 decre。sing from 48 percent to 32 percent during the s。me period.1 Much ofthe growth is haPpening in cities, driven b늬 。n exp。nsion in construction, services, 。nd m。nuf。cturing. This h。5 resulted in 。 fuster incre。se in priv。te expenditures, 。nd 。 sharper declinein povert늬 in percent。ge point terms rel。tive to rural 。re。5. With aPProximQtel늬 30 Percent of the PoPuIotion Iiving in urban oreQs, M늬。nm。ris sti∥ considered to be 。t 。 reI。tiv이늬 e。rI늬 st。ge of urb。ni石。tion, especioI―늬 in rel。tion to m。n니 Other countries in the region. This me。ns th。t the timing 15 criticaI for putting in place 。 strong found。tion of urb。n govern。nce 。nd dev이叩ment thQt focuses on ensuring thQt urbon growth is both incIusive 。nd sustain。비e. While urb。ni乙。tion often bringsimmense oPportunit늬 for urb。n dwellers, keePing p。ce with the growing needs of citi石ens in cities often presents 。 chaIIenge. -n。dequ。te planning, 。nd 。 Iack of investments in infr。structure 。nd the provision of b。sic services c。n le。d to sprowl, environmentoI poIIution, congestion 。nd inequoIit니. OvertimeinequaIit늬 c。n undermine the benefits th。t urb。ni石。tion t늬PicaI―늬 brings 。sit c。n cre。te or worsen sociaI divisions, 。nd contribute to rising crime 。nd vioIence in cities. This 。ccentu。tes the urgent need to focus 。ttention on investing equit。비니 in urb。n develoPment I Ministr늬 of PIQnn&ing 。nd Fln。nce Qnd world B。nk. 2017b. M9。nm。r P0vertg 。nd Living Conditions surve또 Technicol P0vertg Estim。te RePort. P0vertg estimQte bQsed on 20ㅓ5 living conditions 2 Furthermore, as MyanmQr transitions from Q complexity of issues or develop solutions must complex history that has been characteri6ed by consider all three. For example, challenges in decades of economic and political isolation, conflict, accessing income earning opportunities may be and underdevelopment, the importance of ensuring linked to macro level problems in the economy and that growth is inclusive is ever more critical. A focus structural problems in the labor market, but also may on inclusive urbQni6Qtion can bring shared prosperity be linked to where people live and the possibilities to citi5ens, contribute to peace and stability, and for affordable transport to jobs and markets, limited enhance urban productivity and competitiveness. basic infrastructure for home- based work, and/ or exclusionary policies or social practices for some An inclusive urbani6Qtion framework is defined in groups that are discriminatory. In the case of this study to include three key dimensions; economic, urban areas in MyanmQr, marginali6ed groups are social and spatial. identified as the urban poor, migrants, non-BQmQr ethnic groups, religious minorities, women and the The three dimensions of inclusion are highly disabled, who face exclusion fromjobs, housing, and interlinked, and any approach to understand the infrastructure and social services for various reasons. Figure 1: Multi-dimensional Framework for Inclusive Cities Spatial inclusion: Improving access to affordable land, housing and services for all Social Economic inclusion: inclusion: Improving Ensuring the terms for opportunities for vulnerable groups all urban residents to take part in to contribute to society and share in rising prosperity Source: Adapted from World Bank 2015 2 2 This draws on the framework developed in World Bank, 2015, World Inclusive Cities Approach paper, World Bank Report AUS8539, Washington, DC -low This overview presents, presents key findings and policy recommendations on inclusive urbani5ation in Myanmar drawn from the main report entitled, Myanmar's Urbani6ation: Creating Opportunities for All. The report, which draws on numerous studies that have been carried out by development partners and researchers, aims to understand and analyse the challenges that cities in Myanmar currently face, using the lens of inclusive urbani6ation, and proposes a set of priority policy areas for Myanmar given the projected growth of cities. Many of the examples and the data used in the study are particularly focused on Yangon due to the availability of information. While substantial additional analysis on other INCLUSIVE urban areas is needed, many of the challenges are UR BA NI ZAT ION similar as those found in Yangon, though would be on a smaller scale given si6e. There are many areas HAS MANY that would benefit from further in-depth analysis, BENE FITS FOR particularly using primary data analysis which was beyond the scope of this report, and are proposed for CITIZENS future analytical work. KO fN --;軫 KEY FI N 미 NGS AN D CHALLE N G ES URBANIZATION IN MYANMAR 15 STEADlLY ON THE RISE VVITH NOTABLE REDUCㄲONS IN POVERTY M늬。nm。rremains 。 predomin。ntl늬 rural countr늬, Figure Z: Shαre of Urbαn PoPulαtion with 15 million ofthe countr늬’s 51.5 mi∥ion peoPIe 棘[ . th。n the countr늬’s second largest cit니, M。ndaI。늬 (l.22 million), 。nd contributes 。pProxim。te―늬 20-25 source:2014census percent ofthe countr늬’s GDP. 5 tin -,,q Vir- IR 1K rw mr "M Figure 3: Yangon dominates among Myanmar's largest cities 5000000 4500000 4000000 3500000 0 3000000 2500000 0 CL 2000000 1500000 1000000 500000 0 Largest Cities Source: 2014 Census Much of the growth in urban areas is attributed to particularly given the potential links of inequality internal migration floWS.3 In Yangon, for example, and social tensions in cities. 81 percent of the population growth between 2009 and 2014 was attributed to internal migration. The The increase in urban population has begun to put majority of migrants move to cities for employment. a severe strain on cities, particularly Yangon, and Other push factors of rural-to-urban migration the needs for affordable housing, infrastructure and include market shocks, rural poverty, landlessness services. In Yangon, for example, only 33 percent and natural disasters. of the city's population have access to piped water, traffic congestion is on the rise, as is solid waste, Urbani5ation thus far has brought reductions in flooding and pollution. There is also Q rise in the urban poverty, with a substantial decline from 32.2 number of informal settlements as new residents percent in 2004/5 to 14.5 percent in 2015 .4 Urban cannot afford the existing supply of housing. If left inequality is higher than in rural areas, with a Gini unaddressed, these infrastructure needs will lead to coefficient of 38.6 in 2015 (as compared to 28.3 in further congestion, slums, pollution, and put Q drag rural areas).' This is similar to many other countries, on opportunities for growth. but cause for attention as urbaniSation increases 3 UNFPA, 2017, Myanmar 2014 Census, Thematic Report on Population Projections 4 MPLCS 2015 and 2017, World Bank Poverty Report. Estimate based on World Bank methodology 5 Data on trends is not available 6 ECONOMIC INCLUSION CITIES ARE CENTERS OF Overall employment levels in urban areas are high, estimated at 78.2 percent for men and 53.5 percent ECONOMIC G ROW TH for women.' This rate is higher than in 2005 for every BUTN OT EVE RYO NE age group, with the greater increases seen for women (though their overall rates are still lower than men). BENEFITS Urban workers spend long hours working, on average 53 hours, considerably higher than the national Cities are centers of economic activity and job average of 40 hours per week.7 creation, but for some, there are barriers in accessing income earning opportunities given issues linked to ano an Manay repre ta hir of the labor market that result in high informality, low all firms in the country, but more than half of the skils,bor disrimintatn resnumber of formal sector workers (60 percent), and 50 percent of total value added and capital owned.' Growth is highest in the Yangon Region, which, with This high concentration is especially prevalent in 13% of the total population in Myanmar, currently manufacturing jobs, where Yangon represents 47 produces 25% of the country's GDP. Other growth percent of all jobs, and Mandalay 16 percent. Most centers include Mandalay, for its role in regional of the very large firms are located in Yangon given trade and logistics for Northern Myanmar and link the concentration of industrial 5ones and more to the Belt and Road Initiative, and Nay Pyi Taw established infrastructure, particularly electricity. because of its role as the capital. Smaller secondary Despite the high employment rate and long hours cities also have an important role to play and would worked, most of the jobs are low-productivity and benefit from more detailed analysis. low-paid jobs in household enterprises or small firms. Key constraints affect vulnerable groups in various ways as summari6ed below. THE LACK OF SKILLS IS HINDERING BETTERJOBS FOR MANY Firms have cited the lack of skills as a major obstacle which is also seen as a major deterrent for those entering the labor market.9 Half of Myanmar's workers did not reach middle school. Twenty percent said that they never attended school (or only attended monastic schools) while another 39 percent of workers in M yanmar did not complete primary school. Only 21 percent had had a high school a high school education or above.10 education or above 6 World Bank, 2017, Poverty Study 7 MPLCS, 2015 8 Myanmar Economic Monitor, 2018 9 Cunningham and Hertas 2017) 10 MPLCS, 2015 Among the more vulnerable groups, there are several H IG H INFORMALITY CONSTRAINS specific factors that prevent higher educational INCLUSIVE GROWTH achievement and skills development (though not specific to urban areas). For the poor, children The largest share of the population in cities, dropout because they need to enter the labor market. particularly the poor who typically have low For the disabled, studies show that children living educational attainment and skills, work in the with one or more disability have much lower rates of informal sector, many in microenterprises. One enrollment in education than those without. Even if . survey estimated that approximately 95 percent enrolled, discrimination in school can cause children of workers have no contracts, and that informal living with disabilities to drop out.1 employment was the most common form of work among Myanmar's manufacturing enterprises.12 Working in the informal sector can present Women overall earn about challenges to inclusion as wages tend to be lower than the formal sector, and informal workers typically do not have social protections, labor regulations are often not adhered to, and there less than men, even when is increased vulnerability to external shocks and controlling for factors exploitation.13 that may drive the wage differential 11 Eden Center for Disabled Children, 2015 12 2017 survey of Myanmar's Micro, Small and Medium Enterprises, Ministry of Planning and Finance and UnU-WIDER, 2017) 13 Baker and Gadgil, 2017 8 As in other developing countries, the widespread For children with disabilities, discrimination begins informal economy in Myanmar plays an important at an early age with difficulties in accessing birth role in creating income for many in the labor market, registration documents, enrolling in school, and but will require attention to ensure that more staying in school. This then affects their ability workers can gain access to markets, microfinance, to enter into the labor market and participate and eventually transition to the formal sector. productively in society. DISCRIMINATION IN THE LABOR MARKET AFFECTS VULNERABLE Approximately GROUPS 0R95 Examples of discrimination affecting labor market entry and wages in Myanmar can be drawn from the of workers in Myanmar literature. Women overall earn about 30 percent have no contracts. less than men, even when controlling for factors Informal employment is that may drive the wage differential.14 Unlike most countries, Myanmar labor laws do not stipulate the tmost comm r k principle of equal remuneration for work of equal value, and do not contain a provision of gender manufacturing nondiscrimination in hiring, which may contribute to enterprises the wage discrepancies. 14 The gender wage gap and could be due to various factors stemming from the literature: "unobservable or unmeasured factors that lower women's productivity (such as intermittent labor force participation, ownership of factors of production particularly land in highly agricultural Myanmar), employer or family (or self) selection out of more lucrative jobs, or competing time demands linked to gender roles (homecare, childcare) (World Bank 2011) ..... -- - - RISK TO NATURAL HAZARDS, Myanmar's high exposure to a range of natural ECONOMIC AND HEALTH SHOCKS haards, including cyclones, earthquakes, floods, landslides, tsunamis, and volcanoes, puts the country near the top of many high risk lists. The AND CAN HAVE DEVASTATING main economy-wide shock households in Myanmar IMPACTS ON HOUSEHOLD face is reported to be fluctuations in the prices of WELFARE basic needs that stem from exchange rate shocks, supply shocks, or shocks to transport and logistic Natural haSards and economic shocks have been costs. shown to negatively impact economic inclusion and to slow poverty reduction. When a natural disaster Increases in food prices and in the prices of other hits thre s mch vlatlit inthe conmy,andbasic commodities and services make it harder for hits, there is much volatility in the economy, andthwoknporibthualndranres it is often the poor that are hardest hit. The urban the rng poor, n b o rura and banes poor are particularly vulnerable as they typically live whe ne c ers, te t heir asi ees. At the household level, health shocks are the most in less desirable and higher risk locations such as in lss esiableandhiger rsk ocaionssuc asfrequently reported (at the national level). 80 percent hillsides and flood prone areas. Economic and health frequetl repor n al eve cnt shocks are also significant. Low-income populations of ho in Myanar ret he are ots in ctie oftn d no hav saetynets failyrelated to inpatient or outpatient care and, of these, in cities often do not have safety nets, familyneryaftheptdtatheelhsocfcd networks, or agricultural production to fall back on ny th eortadta the heat sokaced as tey oul inrura aras eavng tem t rsk,by their household had a severe negative impact on as they would in rural areas leaving them at risk.wefr.1 Shocks that cause a change in incomes can reduce w investment in productive assets and can affect the education of future generations. 15 MOPF and World Bank, 2017, An Analysis of Poverty in Myonmar 10 :4 PATIAL INCLUSION CHALLENGES IN THE of urban policies and plans. This is underscored by technical capacity constraints, with a small number DELIVERY OF AFFORDABLE of trained urban planners available to draw up and HO USIN G, BAS IC implement plans across all levels of government. INFRASTRUCTURE AND SERVICES PARTICULARLY URBAN LAND ADMINISTRATION IS COMPLEX AND RESULTS IN HIGH AFFECTTHE URBAN COSTS FOR LAND POOR AND RESULT IN Secure land tenure and property rights are essential DISPARITIES IN LIVING to inclusive urban development, as they underpin CONDITIONS economic development and social inclusion. When land is poorly managed, associated problems often lead to disputes and corruption, land degradation, Given Myanmar's early stage of urbani5ation, there la odsue n orpin addgaain Give Mynma's arlystae o urani6tio, tere and lost socio-economic opportunities. In Myanmar, is an important opportunity to shape cities so . . that they are well-planned, allow for job creation, for historical reasons, there are issues with insecure land and property rights which are linked to exclusion affordable housing, and the movement of goods and ancncusvlerbittoieihd. people. Patterns of spatial inequality that segregate groups can ripen the conditions for instability particularly in cities given the density. Vulnerable anaris curr t nad nistration ang groups in Myanmar face challenges of spatial areei oe iish coniaQeri d n exclusion related to accessing urban land markets, subseqe and an be h a dated by housing, and basic services in large part due to where mul.les nd ove lan n situ tion nts6a well as a weak system of land classification. In 2016, they live or their citi6enship status. the Government adopted the new National Land Use Policy (NLUP) which is promising, however, there are many complexities that make implementation SPATIAL PLANNING IS LIMITED difficult including indeterminate land entitlements; AND HAMPERED BY CAPACITY lack of a comprehensive land registry and geospatial CONSTRAINTS information; lack of a formal method to protect and recognise customary land rights; lack of Free, Prior While a spatial planning policy has been developed and Informed Consent (FPIC) process (critical for at the national, regional and township levels, Myanmar's Indigenous population); excessive use challenges to implementation exist. Most cities of state power on eminent domain; and policies for lack a comprehensive, integrated land use and land concessions that override customary rights and infrastructure plan to guide urban growth. A lack other rights holders.6 of clarity in roles and responsibilities - both across different levels of government and within individual government bodies - also hampers implementation 16 FAO, 2016 11 Weak awareness and knowledge of land laws, ACCESS TO AFFORDABLE land policies, and land regulations by government HOUSING IS VERY LIMITED staff, business, civil society and professionals has contributed to disputes, conflicts, and confusion in Myanmar's land sector.7 SETTLEMENTS Overall the supply of land for affordable housing is Given the recent urban population growth and high very limited and results in high housing prices. Large prices of urban land, there are major of shortages in pieces of land were transferred to private developers adequate and affordable housing in cities, especially and individuals associated with the military in 2010 Yangon. Since economic liberali6ation, much of and 2011, which led to a shortage of government- the housing construction has been for high-rise owned land to develop affordable housing. apartments and condominiums, adding stress to the affordability of housing as well as the cities' basic Aspects of exclusion to land in cities noted in the infrastructure and services. literature relate to citi5enship (or obtaining proof of citi5enship through the Citi5enship Scrutiny Card In Yangon, only 25% of the households reside in which can be more difficult for ethnic or religious formal housing units such as condominiums, minorities), documentation of inheritance, transfers apartments, and brick houses (also categori6ed as and ownership, literacy in Burmese, and high costs "pucca"). The remaining 75% of households live in of registering deeds which can be prohibitive for low semi-pucca or temporary structures that require or middle-income families.' Tenure security is also a frequent upgrades and retrofitting. Furthermore, major challenge for many particularly those living in prices are on the rise forcing some low-income informal settlements which prevents poor residents' residents to move into cheaper (and often poor access to legal documents and municipal services, condition) rental units or in worse cases, out of prevents them from investing in the houses and the rental housing market to squat in informal improving their own living conditions, brings fear of settlements.19 eviction, creates high level of turnover, uncertainty, and tension, and hinders social cohesion. 18 Rhoades, 2017, Literature review, social inclusion in Myanmar 19 UN Habitat, 2018 12 While there is no national level statistic on urban Housing finance in Myanmar, both supply (financing populations living in informal settlements, it is for housing developers) and demand (financing for estimated that slum residents account for at least home buyers), remains underdeveloped. The general 10-15 percent of Myanmar's population.20 In Yangon, financial system in Myanmar is limited, with access the total area occupied by informal settlements to basic financial services extremely low. As with in Yangon is over 2,000 acres with approximately most banks, only higher income households qualify 475,000 people (or 155,000 households) living in for a housing loan as prices for houses that can serve such settlements.21 About three quarters of informal as an acceptable collateral for the loan are typically settlements are located in peri-urban areas.22 The high which excludes lower income populations. In housing conditions in the settlements are poor, 2013, under the initiative of MoC, the Construction with most households living in small, low-quality and Housing Development Bank (CHDB), as a temporary houses, with limited access to basic development bank with semi-government ownership, services. To address the growing housing shortage, to stimulate housing construction by providing the government put forth a "Million Homes Plan" affordable loans to potential developers and home to develop one million new housing units by 2030 owners though a huge unmet demand remains. though implementation has been slow due to capacity and financial constraints. 20 International Growth Center, 2016 21 GAD, 2017 22 Mapping Yangon, UN-Habitat and Cities Alliance, 2017 I7 INFRASTRUCTURE AND BASIC Those living in informal settlements are most SERVICE NEEDS IN URBAN AREAS affected as access to even the most basic services is ARE HUGE limited. These limitations have negative outcomes on health indicators and ability to increase income generation from home based microenterprises. For One estimate finds that for Myanmar to keep pace those living in periphery areas, the limited availability with its infrastructure needs in large cities alone, of roads or access to public transport makes access approximately $146 billion would be needed between to job markets and some urban services prohibitive. 2010 and 2030.23 According to this estimate, close to 60 percent of the urban capital investment would In general women are particularly affected by likely be required for residential housing; more inadequate services. Women's safety is also placed than 10 percent for commercial real estate; over at risk through inadequate sanitation infrastructure. 20 percent for hard infrastructure such as water, In Myanmar's slums, open defecation, which often sewage, power, waste, roads, and mass transit; and takes place at night for the sake of privacy, subjects more than 5 percent for soft infrastructure including women and girls to greater risk of attack.24 Even health care, education, public administration, and when shared sanitation facilities are available, social services such as fire brigades and police studies have shown that harassment and gender- buildings. While this estimate is very approximate based violence is more likely to occur at toilets that and can be contested, there is no doubt that the are located away from home.25 investment needs in cities are massive. 23 McRinsey Global Insitute, 2013, Myanmar's moment: Unique opportunities, major challenges. Note: These estimates assume that Myanmar's large cities reach infrastructure levels in 2030 similar to what we see today in cities of comparable si5e in China, Indonesia, South Africa, and other developing countries 24 2014 Myanmar Population and Housing Census Thematic Report on Housing Conditions and Household Amenities, published by the Government of Myanmar and UNFPA 25 Tacoli, 2012, Urbani5ation, Gender and Urban Poverty: Paid Work and Unpaid Carework in the City. International Institute for Environment and Development: United Nations Population Fund, London, UR 1 14V URBAN MOBILITY AND TRANSPORT (in Yangon, motorcycle share is low as they have ARE CHALLENGES FOR MANY been prohibited from entering the city center). With the rapid increase in personal vehicles as well as Urban mobility is essential to spatially inclusive challenges in public transport, traffic congestion has urban development as it allows people to access emerged an urgent challenge. jobs, services and city resources. If segments of tobs,ie s p andhav challrengues. In mn s od Furthermore, the conditions of urban mobility remain the population have challenges in moving around Qciia hleg ndneyppltdifra due to access and where they live, cost, safety, aertl challngesinlden ae informal or discriminatory practices, this can affect their settlements andtre settlement aa inclusion in urban life. Conditions for Myanmar's in on 4% of the m eenhv urban transport have rapidly declined since 2012. internal rodtnetworksnrovidedtbyote governmen With the economic recovery and 2011 relaxation uilt by the commu n t ot roads ae of restrictions vehicular imports and licensing, the unae andon 1. cen of the raha number of private vehicles has rapidly increase drain e oigs cmonuinte ainy in major cities. In the case of Yangon, the vehicle son in ths r whicgni tae fleet grew by 37% between 2012 and 2015 - the number of cars doubled. Outside of Yangon, cities are experiencing the rise of private motorcycles 26 UN-Habitat and Cities Alliance, 2017 r:J' Ira 'Vo COVERAGE FOR URBAN WATER dwellers rely on bottled water for drinking.29 Even in AND SANITATION IS LOW LEADING Yangon and Mandalay water is only partially treated. TO H EALTH RISKS With regard to sanitation, 96 percent of the population in urban areas have access to improved The urban access rate for water supply is 94 percent, sanitation, either a flush toilet or water-sealed yet only 18 percent have piped water supply to latrine (MPLCS, 2015) and only three cities (Yangon, the premises.27 While the accessibility data look Mandalay and Nay Pyi Taw) have piped sewerage comparable to those in other Southeast Asian systems or centrali5ed wastewater treatment countries, the health risks of diarrhea-related and systems. Most households outside of these three water-related vector-borne diseases are significantly cities, in formal residential areas, have septic tanks higher in Myanmar, due to underinvestment but these are not routinely serviced or treated and in preventive healthcare and water/sanitation there is no systematic collection and treatment infrastructure. Nearly all urban areas in Myanmar of domestic wastewater. Households in informal have suffered chronic under-investment in urban settlements rely on improvised latrines and storm- infrastructure though conditions are worst in water drains that carry untreated sewage in open smaller cities and towns. Thus, most urban water channels. Furthermore, small-scale enterprises and supply is untreated, and likely to be contaminated industries often allow chemical waste (such as dyes by bacteriological contaminants (and arsenic in for silk and weaving cloth) to run into the roadside the Ayeryawady delta groundwater). Networked drains, causing severe environmental impacts and services rarely exist in most smaller cities and many pollution of water courses and ground water. residents have developed their own private or shared water sources, which are often unsafe and not sustainable.28 It is estimated that a third of urban 27 UNICEF 2015, Delivering Results for Children 2015. Programme of Cooperation between the Government of the Union of Myanmor and UNICEF 28 Ibid 29 ADB, 2017 16 SOLID WASTE MANAGEMENT for SWM workers, where many of the urban poor SERVICES ARE LIMITED, work, are often inadequate. PARTICULARLY IN SLU MS, AND In slums, conditions are even worse with very limited CREATE URGENT CHALLENGES access to municipal, community-organi5ed, or private-sector led solid waste management services. Solid waste management (SWM) is essential to the Littering is widespread and waste is left uncollected, functioning of cities and to individual's livelihoods with most slum residents dumping their garbage as the absence of services will lead to serious in open spaces, roadsides, rivers, or ponds, further environmental and public health issues. With rapid exacerbating poor sanitary conditions.31 However, economic growth and shifts in consumption and although large amounts of household solid waste production patterns since 2012, waste generation remain uncollected, the informal plastic collection has significantly increased in Myanmar. Collection is and recycling chain is si5able, helping to recycle labor intensive, landfills remain open dumping sites, plastic waste and providing a source of income to recycling is undertaken mainly by informal sector, thousands of households in Myanmar.32 and large amounts of uncollected waste are open disposed in drains and canals, causing degradation of environment and public health, breeding opportunities for mosquitoes and other waterborne diseases, as well as increases in flood damages due to reduction of drainage capacity.30 Safety measures 30 ADB, 2017a 31 UN-Habitat and Cities Alliance, 2017 32 Netherlands Enterprise Agency, 2017 17 DISASTER RISR MANAGEMENT IS EXACERBATED BY POOR DRAINAGE CREATING SUBSTANTIAL FLOOD RISR DURING THE MONSOON SEASON A resilience lens is critical to an inclusive and sustainable urban development in Myanmar given its high exposure to natural haards. In terms of infrastructure, most cities in Myanmar lack proper storm water drainage networks and face severe flooding during the monsoon season. In Yangon, inadequate tertiary drainage networks and blocked primary and secondary networks result in monsoon season flooding with inundations 0.5 to 1.0 meters deep. The drainage network and the capacities of pumping stations are insufficient to discharge excess water out of the city area.3 Lack of dredging and maintenance of the storage ponds and canals also exacerbate the issue, particularly in combination with other urban sanitation challenges such as the dumping of solid waste. Mandalay and secondary cities share similar challenges. Various development partners have highlighted the urgency of mainstreaming and strengthening resilience in Myanmar's urban development and are supporting investments in drainage, flood protection and improving of early warning systems though there is still much to be done, particularly in the vulnerable slum areas. 33 ADB2017a SOCIAL INCLUSION INEQ UI TABLE subgroup was very limited." The exclusion can affect access education, employment and health services. OPPORTUNITIES AFFE CT MANY Inequality, closely linked to social exclusion, is higher in cities, as well as more starkly evident given the density of people. Informal settlements exist side- Social inclusion relates to fostering and enabling by-side with better-off neighborhoods in larger cities. inclusive attitudes towards marginalied groups, For subgroups, this plays out in various ways. For regardless of differences in gender, ethnicity example, a citi5enship scrutiny card (CSC) is needed or region of origin. In Myanmar, there are a fewtownppey,raiclw,cesuivst, subgoup tha hae ben ientfiedas ulneabl to to own property, practice law, access university, subgroups that have been identified as vulnerable to apply for electricity, and buy health insurance; those exclusion in the urban context -- internal migrants, who lack one report difficulty in buying and selling the urban poor, people with disabilities, and some land, accessing rights to security, legal protection, ethnic and religious minorities. Exclusion also exists and inheritance; difficulties are also reported with based on sexuat orientation and gender identity getting cash transfers in social protection schemes, minorities (SOGI) though information on this stipends, and scholarships (World Bank, 2017). 34 World Bank. Social Inclusion in Myanmar, 2017 draft paper AF- -*,w> URBAN MIGRANTS 14 Most migrants in Myanmar move for work (56%), 1 4 % or to accompany those who move for work (38% of Myanmar migrant move to join a family member). Many migrants work as micro entrepreneurs and only 7% of migrant workers reported being in workers had a written contract which exposes a situation of trafficking them to exploitation. Some literature points to for forced labor various problems faced by immigrant entrepreneurs including poor knowledge about existing markets, limited access to finance and connections with the THE URBAN POOR local population.35 Despite the significant decline in urban poverty in Interviews with migrants as well as local government Mamr aypo oshls anydeln officials reflect gaps in access to services in urban in.r of ciis livehinwit mh.d .prvain areas.36 Officials across ministries and regions all string o mesi livi ataow cite miratin a animpotan phnomeon hat struggling to meet basic needs for living. Data show cited migration as an important phenomenon that thshoeolsgapewhamstcrncfd has major impacts on the way they work for example inseu se d a di tiamo nt of with regard to urban planning, or the delivery of incme on eaa social services, but also reported that the lack of existing data made it difficult to know how and Financial inclusion is another challenge among the where to support migrants. urban poor. A survey of poor households in Yangon found that 86% had taken loans in the informal sector, with interest rates in excess of 20%. High levels of indebtedness and high-interest loans are thus widespread. 35 Fairlie and Woodruff 2010, OECD 2010, Marchand and Spiegel 2014 36 World Bank, 2016, A Country on the Move: Domestic Migration in Two Regions of Myonmar, A qualitative Social and Economic monitoring thematic study 20 Although the majority of informal settlers send Crime and violence further affects vulnerable groups. their children to school, the number of children Informal settlements, especially large ones such as enrolled drops drastically after the age of 13 when Hlaing Thayar township, are infamous for high level many leave school to seek work in the informal of crimes. Many informal settlers themselves are sector.31 Common informal work for girls includes victims of crimes. As police are not seen as playing a employment in garment factories, or as housemaids, proactive role in upholding law and order, residents while boys tend to work as street vendors or casual tend not to report crime to them or to other ward laborers. Many girls also leave school to care for authorities, particularly when they have newly younger family members, allowing parents to go arrived in a settlement. Women, particularly single to work. Without an income, these girls are often women and widows, are reported as being afraid to considered a financial burden for their families, walk the streets of informal settlements alone at night. They are also less likely than men to report Challenges related to legal documentation, tenure crimes, as they feel more vulnerable and fear revenge security, and crime also exist. A significant number from the criminals.39 of urban residents do not have legal identity documents. Residents in informal settlements have difficulties in accessing legal documents which in PEOPLE WITH DISABILITIES turn hinders their access to formal employment, municipal services and low-interest loans." For An estimated 2.3 million people, or some 4.6 percent example, a National Registration Certificate (NRC) is of Myanmar's population, is reported to live with often required to be employed in larger factories. To some sort of disability.4o The disabled are excluded obtain one, proof of a permanent address has to be in various ways -many cannot access education, shown, which is often not possible for those renting employment and health services.41 Illiteracy levels spaces in illegal settlements. among the disabled are more than 10 times as high as for those without disabilities. Children with disabilities may lack proper birth registration documents, which then constrains their access to services over the long term. 37 YCDC and Save the Children, 2016 38 Myanmar Ministry of Immigration and Population Report, 2015 39 DIIS, 2017 40 The definitions of disability used in the census were in line with international standards and UN recommendations, and consist of having self-reported difficulties with seeing, hearing, walking, and remembering or concentrating. These are four of the six developed by the Washington Group on Disability Statistics 41 Ministry of Labour, Immigration and Population, 2017 GO VERNANCE AND Subnational governments remain reliant on Union government transfers for revenue - currently 90% FINANCING FOR of revenues come from such transfers. In the larger UR BA N DEVELO PMENT cities of Yangon and Mandalay, half of the cities' revenues comes from transfers, while the remaining IS CHALLENGED IN half are raised through own-source revenues. As tax administration is generally weak, property FULFILLING REY ROLES tax constitutes a small proportion of subnational revenue. Building inclusive and sustainable cities requires strong institutions and good governance at all Both international and domestic private resource levels of government, particularly at the local flows have increased significantly in Myanmar since level. The 2008 Constitution laid the groundwork 2011. In terms of international private resource for increasing political (transfer of decision- flows, foreign direct investment (FDI) grew more making power and accountability), administrative than six-fold between FY 2012/13 FY and FY (distribution of managerial responsibilities) and 2015/16. While the share is small compared to FDI, fiscal (expenditure responsibilities and corresponding domestic private investments have also increased financial resources) decentrali5ation in Myanmar. incrementally, especially in the sectors of real estate, State and region governments, for instance, were transport, and manufacturing. This growing appetite legally established, providing them the right to enact presents an opportunity for cities to leverage the laws, prepare budgets, collect taxes, and manage private sector in financing inclusive and sustainable entities under their control. urban development. While urban service delivery functions have been devolved to subnational governments, in practice, local governance is often hampered due to limited implementation of policies/frameworks, financial resources, and technical capacities. Lack of transparency and fair decision making as well as insufficient resources to successfully implement programs and policies on the ground may lead to unequitable urban development and intra-city disparities, which may further lead to social tensions, crime and violence. 90% of subnational government revenues come from Union government transfers 22 ... .. . � :�. � � . � � Г� � � � � � � � г 4. д■ � � {г � "�, ЕΡ� . � * � � � � Е . Е � ' # � .,а .�� ! ,� , а � �. .i. з у.у� # ` �� � � �� ! 1 й � � , . �� . . .�� ���� � f �� >:� �� � s � � 1 � '$ � � � ' т'r1 � � �� � q g w.a. . � . ... .. мь � � �I ` � � � � � �� + ' � ,Ъ.. . �а � �� ,� ��:. � � , � .� � 9 � . � �" ��,� . � � . .�_ . � � у r\'� � , �'. � �. ' ` '' � � � � �# � r„�a , . ,�. � '� �. � . � � �,� . ..�.., _ _ , � ..� _ � �.. � � � G Ф. ". � � � . , �� � , , � �ч - � ^' , �,; � ����� ' ��е� а �Е'�} ... < ... Y...ir.�/. а.� � . � ! а� .. � � , � v �'е к ,. 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'... � .. � . . � . �� � 23 Given MyanmQr's relatively early stages of Taking these recommendations forward will urbani5ation, investments and policies made today require additional work to identify champions, key will shape cities for decades to come. Prioriti5ing stakeholders, find relevant entry points for private an inclusive cities approach will help to ensure that sector investment, and ensure Q stable governance cities grow in an equitable way, which will have framework aligned with sufficient technical significant benefits for sustQinQbility, prosperity and capacity and financing for implementation. These competitiveness. are challenges that the World Bank and other development partners can support in partnership The framework of economic, spatial and social with the Government of MyanmQr. inclusion used in the report points to several priority policy recommendations, outlined in the table below including indication of short, medium and longer PROMOTING ECONOMIC term prioriti5ation. Many of the recommendations come back to the need for: INCLUSION TO FOSTER JOB investments in sustainable urban infrastructure and in-situ community based urban upgrading to CREATION AND RESILIENCE provide basic services for all, ensure mobility for TO SHOCKS the flow of people, goods and services; building resilience to mitigate the impact of From Q broad policy perspective, there are many shocks on people's livelihoods and health; opportunities for promoting economic inclusion reforms to policies in order to facilitate access through better access to and quality of education to legal documentation for migrants and specific for all, and addressing issues in the macro economy subgroups, and targeted social programs and labor market to create increased opportunities for those that are particularly vulnerable to for employment and income generation. At the exclusion and may not be able to benefit from urban level using an economic inclusion lens, two urban opportunities; and key priorities stand out: addressing the high levels capacity building and new financing for urban of informality; and improving resilience to natural development hQ5Qrds and economic shocks. L CREATING OPPORTUNITIES FOR BUILDING RESILIENCE THOSE IN THE INFORMAL SECTOR. Given Myanmar's exposure to risk, building A full discussion of issues in the labor market that resilience, particularly for marginali5ed groups who may contribute to high levels of informality is are often hit the hardest by disasters or shocks beyond the scope of this report. Myanmar still has will be important to economic inclusion. Building major work in addressing bottlenecks to improving resilience can be achieved by ensuring infrastructure the environment for the private sector which will investments are resilient, by creating insurance and attract more and diversified foreign investments to catastrophic risk pools, and through strengthening sustain job creation (World Bank, 2018b). For those disaster planning and early warning systems in groups that are more prominent in the informal urban areas. The Myanmar Southeast Asia Disaster sector (e.g. the urban poor, migrants, and women), Risk Management Project aims to build resilience opportunities to enhance their income and access to through improving drainage services, and the the formal sector include: urban upgrading to provide structural performance of selected public facilities better infrastructure services that will enable more in Yangon, and enhancing the capacity of the home based work; better transportation to enable Government to facilitate disaster response. mobility to jobs and markets; education and training programs that are linked to the skills needs in For the urban poor and other marginali5ed groups urban based industries; and micro finance for small who are typically at highest risk, key priorities entrepreneurs. include in-situ community based urban upgrading, and programs that invest in early warning systems Such investments will have complimentary impacts, which can help plan for shocks and mitigate impacts though implementation will require a phased on the population. approach as outlined in the summary table below. 25 ..04. AX- A./ PRO M OTIN G SPATIAL are particularly acute for those living in informal settlements. Addressing some of the fundamental IN C LU SION TO IMP ROVE building blocks related to land administration, ACCESS TO AFFORDABLE urban and land use planning will be essential, and improving access to affordable and reliable LAN D, HOUSING AND transportation will help to open better access to employment opportunities, services and amenities SERVICES FOR LOW for many. Together, these investments can help to INCOME, AND VULNERABLE reduce spatial disparities within cities. POPULATIONS In-situ urban upgrading of low income areas would have a significant impact on promoting spatial The current needs in Myanmar's cities are inclusion and help to address existing inequalities. substantial. Investing in affordable, safe, and Participatory approaches are important to ensuring reliable housing, sustainable infrastructure, and community needs and those of vulnerable groups transportation services, particularly in underserved such as women or the disabled are addressed. areas, can reduce spatial inequality, open up This may include universal access, better street new employment opportunities, and reduce lighting for safety, or other approaches. Community health and disaster risk. Building capacity to participation has been demonstrated to have better carry out integrated planning is also essential. outcomes in terms of sustainability of interventions. Sustainability, in the case of Myanmar, particularly includes resilience, but given the lock-in effects of As the population in cities rise, the needs for infrastructure, approaches for compact low carbon affordable housing are also on the rise. The deficit urban development are also critically important. particularly in Yangon is substantial. Several existing initiatives, such as the "Million Homes INVESTING IN EQUITABLE Plan" or slum upgrading programs are important to ACCESS TO SUSTAINABLE addressing housing needs and need to be scaled up. Ensuring that affordable housing options are linked INFRASTRUCTURE AND to reliable and affordable transport will be critical AFFORDABLE HOUSING to ensuring spatial and economic inclusion for those living in the periphery. A number of examples such Infrastructure needs exist across sectors including as the Vietnam Urban Upgrading or the Indonesia affordable housing, urban transport, water, Approach to Affordable Housing and Slum Upgrading sanitation, solid waste, and drainage. Such needs are highly relevant for Myanmar. 26 IMPROVING INTEGRATED Building capacity for integrated urban planning is URBAN PLANNING WHICH IS important for Myanmar, particularly considering its complex subnational governance structures and the current practice of urban planning being carried INVESTM ENT PLANS out at different levels of government, often without coordination. The finali5ation of the National Urban The physical layout of a city is one of several Development Strategy presents an entry point for factors that can impact access to jobs and services. further engagement in this regard. The Singapore Residents of a low-income area with no direct experience is one that demonstrates how integrated access to transport routes, for instance, have planning has effectively been carried out, and the considerably fewer opportunities for employment strong role of participation in the planning process. and income-generation. Adopting an integrated planning approach is one key way to ensure that there is more equitable access to infrastructure and amenities. Robust urban planning can also pre- emptively mitigate some of the challenges commonly associated with a quickened pace of urbani5ation, such as sprawl, congestion and the proliferation of informal settlements. i IN, -VI PRO M OTIN G SOCIAL For the subgroups in cities that do not fully benefit from urbaniSation due to the many reasons IN C LU SION TO IMP ROVE discussed in this overview, targeted social programs, CONDITIONS FOR and policies to allow for the formali5ation of their identity in the city, will help to promote social VULNERABLE GROUPS inclusion. TO FULLY PARTICIPATE IN SOCIETY 28 TARGETING SOCIAL PROGRAMS FACILITATING ACCESS TO LEGAL DOCUMENTATION Programs that reach marginali5ed groups such as the disabled or new migrants that may not Evidence from other countries shows that enabling have the skills or networks to find employment the flow of people through migration, particularly are in need. For the disabled in urban areas, there when driven by economic forces, is a positive and are good practice examples from other countries selective process (World Bank, 2009). Stemming that use universal design approaches to planning the flow of people can create unnecessary friction to implement technical standards for accessible and impose the cost of forgone opportunities infrastructure and transport. Speciali5ed school for economic growth and convergence in living programs would allow many children, who are standards. By removing obstacles linked to currently unable to attend school, to attend. migration status for access to basic services such as health and education, and addressing various forms A focus on migrant populations is important for of economic, political, and cultural discrimination social inclusion in urban areas. International against migrants, governments can foster economic evidence shows that policies to remove obstacles growth and promote social inclusion. linked to migration status for access to services, and addressing various forms of economic, political, Given the difficulties in obtaining legal documents by and cultural discrimination against migrants are certain minorities in Myanmar, reforms are needed, important as are tackling stereotypes and promoting for example, for the National Registration Certificate intercultural dialogue and understanding. For (NRC) which is often required to be employed in Myanmar, there are important opportunities for larger factories but only available for those with a such awareness raising, targeted programs in permanent address. Such policies are a deterrent to linking migrants with job opportunities, facilitating inclusion and can perpetuate the cycle of poverty. migration through affordable loans or subsidy programs, and ensuring rental and affordable housing options can facilitate their transition to the city. Vietnam, for example, offers several types of financial assistance to migrants, including loans with preferential conditions and a program which pays travel-related expenses and provides preferential credit to poor workers. In the China Rural Migrant Project (through the Government of China with World Bank support), information, employment assistance, and other services are used to enhance migration as ajobs strategy. Such programs could be adapted for the Myanmar context. 29 FOSTERING GOOD STRENGTHEN PARTICIPATORY GOVERNANCE AND PLANNING INVOLVING COMMUNITIES AND CITIZENS FOR FINANCING TO CREATE STRONGER LOCAL GOVERNMENT THE BASIS FOR INCLUSIVE, ACCOUNTABILITY FOR INCLUSIVE COMPETITIVE AND URBAN DEVELOPMENT SUSTAINABLE CITI ES Engaging communities and citi5ens in decision- making processes is important in strengthening As Myanmar transitions from a highly centrali5ed policies, enhancing service delivery, and ensuring system, strong institutions and good governance social stability in cities. Enhancing community that include transparency and fairness in decision participation ensures that priority needs are making will be important at the local level to identified and that local governments are held foster an inclusive approach. It is also essential accountable. Currently, the TDACs of DAOs are to sustainability and city competitiveness goals. composed of seven members, of which four are Among key priorities are improving coordination indirectly-elected community representatives. and operational processes for urban planning, This can be further enhanced to allow for stronger management and local service delivery, ensuring community participation. local participation, and developing a more comprehensive approach to improving financing for urbaniSation. DEVELOP A COMPREHENSIVE APPROACH TO IMPROVING STRENGTHEN COORDINATION FINANCING MECHANISMS FOR BETWEEN THE VARIOUS INCLUSIVE URBAN DEVELOPMENT GOVERNMENT AG ENCI ES AND A holistic approach to improve the SNG financial STREAM LINE OPERATIONAL mechanism, including revenue allocation, budgeting, PROCESSES RELATED TO URBAN and financing capacity is urgently needed to PLANNING, MANAGEMENT AND enable municipalities to fulfill their service delivery responsibilities. Among key elements are: intergovernmental fiscal transfer mechanisms to improve disparities across SNGs; increasing own- Currently the lack of integrated planning and source revenue generation to allow SNGs to have budgeting with little vertical/horiSontal coordination higher discretion over the use of funds to meet local and cross-sectoral planning between government needs; strengthening the property tax system agencies hampers planning and service delivery. so that it can over time become a major revenue Strengthening horiSontal/vertical/cross-sectoral source for sub-national governments; increasing coordination and streamlining operational processes opportunities for private sector financing for are critical to improving the efficiency of local inclusive urban development; and utili5ing innovative service delivery. In parallel, efforts are needed to financing mechanisms such as Land Value Capture. build capacity to implement such priorities through training and technical assistance programs. 30 This report has brought together a substantial C O N C LUS IO N amount of accumulated knowledge from recent studies. The information provides a basis for understanding key issues facing inclusive urbani5ation in Myanmar, with a particular emphasis on Yangon. As discussed above, there is much work to be done in increasing investments in cities and in implementing reforms. The World Bank and other donors are increasingly engaging in the urban sector in Myanmar, with scope for scaling up to assist with the reform process. This will take further coordination, and a strong commitment from government for implementing a bold reform agenda as summari5ed in the table below. 4131 55. . . . . *SP R * *S .5rim _41 ffI J;I S S S I . be. 131 Indicative Time Frame: Table 1. Priority Policy Short term (S): 1-2 years Medium term (M): 2-3 years Recommendations for Longer term (L) 3-5 years Inclusive Urbani6ation in Myanmar CHALLENGE OUTCOME PRIORITY ACTIONS LEAD AGENCIES Promoting economic inclusion to foster job creation and resilience to shocks High informality Improve In-situ community based urban Development limits opportunities for upgrading (M) Affairs opportunities and informal workers begin identification of high risk Organi5ations links to exclusion areas, needs and upgrading plan (S) (DAOs)/ City * secure financing (S-M) Development * implementation (M-L) Committees (CDCs) Access to micro finance for small Ministry of entrepreneurs (M-L) Construction; * develop enabling environment and Ministry of incentives to foster micro finance Education; (M-L) Planning and * ensure gender equality in access Finance (M) Transport investments to enable mobility to jobs and markets (L) * Education and training for skills in urban jobs (L) * prioritiSe vulnerable groups (S-M) * investments in access and quality improvements (L) Some areas in Build resilience to In-situ community based urban * DAOs/ CDCs cities highly natural hagards upgrading in high risk areas (S-M) - Ministry of vulnerable to * identify and prioriti6e investments Construction flooding and other (S) - Ministry of natural ha6ards * begin implementation (M) Social Welfare, Relief and Drainage/solid waste management Resettlement (M -L) * identify and prioriti6e highest risk areas (S) * implementation (M) Early warning systems (S) design and implement approach to reach the most vulnerable (S) 32 Indicative Time Frame: Short term (S): 1-2 years Medium term (M): 2-3 years Longer term (L) 3-5 years CHALLENGE OUTCOME PRIORITY ACTIONS LEAD AGENCIES Promoting spatial inclusion to improve access to affordable land, housing and services for low income, and vulnerable populations Substantial Invest in equitable Infrastructure investments needed * DAOs/ CDCs infrastructure access to in water, sanitation, roads, drainage, * Ministry of deficits limiting sustainable urban solid waste management (M-L) Construction; successful infrastructure * identify and prioriti5e needs with * Ministry urbani5ation targeting of areas for greatest of Natural and contributing impact (S-M) Resources and to poor living * ensure participatory design that is Environmental conditions gender, disabled-informed (S) Conservation * begin implementation (M-L) (MOREC) Shortage of Improve and In-situ upgrading of existing stock and * DAOs/ CDC affordable expand affordable slum areas (M-L) Ministry of housing, large and housing * diagnostic needs assessment and Construction; growing number development of affordQble housing Construction of informal plan (S) and Housing settlements ensure target is for low income Development populations (S) Bank (CHDB); create enabling environment for Ministry of housing supply and demand (M) Planning and develop approach to incentivi6e Finance private sector for tow income market (S-M) implementation (L) Implement the National Land Use Policy (S-M) enable and train staff for implementation (S-M) Limited urban Improve Align plans across agencies (land use, * DAOs/ CDCs planning results integrated spatial transport, environment, disaster risk) * Ministry of in congestion, planning for (S) Construction sprawl, ha5ard inclusive and * set up coordination mechanism (S) * Ministry of risk, inequality, resilient urban * invest in geospatial data and sharing Social Welfare, and can affect development platforms (e.g. plan for national Relief and city growth spatial data infrastructure) (S) Resettlement opportunities * Ensure planning is gender and disability-informed Capacity building (M-L) * identify needs and develop longer term strategy (M) * implementation (L) 33 Indicative Time Frame: Short term (S): 1-2 years Medium term (M): 2-3 years Longer term (L) 3-5 years CHALLENGE OUTCOME PRIORITY ACTIONS LEAD AGENCIES Promoting social inclusion to improve conditions for vulnerable groups to fully participate in society Some are not able Target social Targeted programs designed to: link * DAOs/ CDCs to fully participate programs to migrants with job opportunities, and * Ministry in job markets or marginali5ed provide assistance for disabled (M) of Labor, access services groups * identify and prioriti5e needs (S) Immigration and (migrants, ethnic * program design, implementation (M) Population; groups, disabled, * Ministry of women) Addressing gender and other Social Welfare, discrimination (S-M) Relief and * awareness raising, education (S) Resettlement * policy reform (M) Lack of Facilitate Reform of identification card system * DAOs/ CDCs documentation access to legal to ensure equity and remove obstacles * Ministry and identification documentation linked to migration status (M) of Labor, can prevent * identify equitable approach and Immigration and citi6ens from design system (S) Population; accessing jobs, implementation (M) * Home Affairs services. Ensuring good governance and finance for urban development is fundamental to creating inclusive, competitive and sustainable cities Fragmented Strengthen Streamline processes for urban * DAOs/ CDCs governance coordination management, delivery (S) * Relevant hampers decision between * carry out diagnostic assessment sectoral making and government of processes and develop Ministries improvements on agencies for recommendations for efficiency for the ground. decision making core urban services (S) and urban * implement changes in a phased management manner (S-M) Hori6ontal and vertical coordination needed (S-L) * carry out institutional mapping and assessment for core agencies and recommend reforms (S) * implement changes in a phased manner (M-L) Invest in capacity building for implementation (M-L) 34 Indicative Time Frame: Short term (S): 1-2 years Medium term (M): 2-3 years Longer term (L) 3-5 years CHALLENGE OUTCOME PRIORITY ACTIONS LEAD AGENCIES Ensuring good governance and finance for urban development is fundamental to creating inclusive, competitive and sustainable cities Urban plans and Strengthen Engage communities and citi5ens to * DAOs/ CDCs programs can be participatory help to promote inclusion (S) * Ministry of disconnected from planning for urban * mainstream participation in urban Construction citi5en's needs. development planning and program design (S) * train relevant staff (S) * ensure low income communities are included (S) Strengthen Develop a holis- Utili6e intergovernmental fiscal * Ministry of participatory tic and equitable transfer mechanisms to equaliSe Planning and planning for urban approach to fi- regional disparities (M) Finance; development nancing for urban * diagnostic work to identify approach - Ministry of development for reform (S) Commerce implementation (M) Strengthen local revenue generation (M-L) diagnostic work to develop proposals for increasing property tax revenues (S) Allow more local discretion over funds use (S) Develop transparent decision making and implementation process (S) Scale up private sector financing through improvements in enabling environment (M-L) Address existing bottlenecks through reform (M-L) Invest in capacity building (S-M) Explore use of Land Value Capture for larger cities (S-M) Carry out diagnostic work to identify key opportunities (S) Implementation (M) 35 Table 2. Priority Policy Recommendations by Time Frame THEMATIC SHORT TERM MEDIUM TERM LONG TERM AREA YEARS 1-2 YEARS 2-3 YEARS 3-5 In Situ Community Based Urban Upgrading Identify high risk areas, needs and upgrading plans ECONOMIC 0 0 INCLUSION Secure Begin financing implementation Microfinance for small entrepreneurs Ensure gender equality in access Develop enabling environment and incentives to foster microfinance * *0 Transport investments to enable mobility to jobs and markets Education and training for skills in urban jobs Prioriti5e vulnerable groups Invest in access and quality * 0 Drainage/solid waste management Identify and prioriti5e Begin high risk areas implementation * 0 Early warning systems Design and implement Ensure approach to reach the most vulnerable 36 THEMATIC SHORT TERM MEDIUM TERM LONG TERM AREA YEARS 1-2 YEARS 2-3 YEARS 3-5 SPATIAL Invest in infrastructure needs - water, sanitation, roads, INCLUSION drainage, solid waste management In-situ upgrading of existing housing stock and slum areas Create enabling environment for housing supply and demand Diagnostic needs assessment and development of affordable housing plan Ensure target is for low income populations Develop approach to incentivi5e private sector for low income market ** Begin implementation Implement the National Land Use Policy Enable and train staff for implementation 0 Align plans across agencies (land use, transport, environment, disaster risk) Set up coordination mechanism Invest in geospatial data and sharing platforms (e.g. plan for national spatial data infrastructure) Ensure planning is gender and disability-informed 3 37 THEMATIC SHORT TERM MEDIUM TERM LONG TERM AREA YEARS 1-2 YEARS 2-3 YEARS 3-5 SOCIAL Targeted programs designed to: link migrants with job INCLUSION opportunities, and provide assistance for disabled Identify and prioriti5e Program design and begin needs implementation * * Addressing gender and other discrimination Awareness raising, Program design and education implementation Policy Reform ** Reform of identification card system to ensure equity and remove obstacles linked to Identify equitable migration status approach and design system (S) Begin implementation * * GOVERNANCE Streamline processes for AND FINANCE urban management, delivery Carry out diagnostic assessment of processes and develop recommendations for Prioriti5e efficiency for core urban services HoriSontal and vertical coordination needed Carry out institutional Implement Changes in a phased mapping and assessment manner for core agencies and Invest in capacity building services * * Engage communities and citi3ens to help to promote inclusion Mainstream participation in urban planning and program design Train relevant staff Ensure low income communities are included 38 THEMATIC SHORT TERM MEDIUM TERM LONG TERM AREA YEARS 1-2 YEARS 2-3 YEARS 3-5 GOVERNANCE UtiliSe intergovernmental fiscal transfer mechanisms AND FINANCE to equaliSe regional disparities Improvements in enabling environment Address existing bottlenecks Invest in capacity building through reform ** UtiliSe intergovernmental fiscal transfer mechanisms to equaliZe regional disparities Diagnostic work to identify Begin implementation Approach for reform ** Strengthen local revenue generation Diagnostic work to develop proposals for increasing property tax revenues Allow more local discretion over funds use Develop transparent decision making and implementation process Scale up private sector financing through improvements in enabling environment Invest in capacity building Address existing bottlenecks through reform ** Explore use of Land Value Capture for larger cities Carry out diagnostic work to identify opportunities Implementation * 0 39 I fd For more information and the full report, please visit: www.worldbank.org/myanmar WORLD BANKGROUP