Transcript South Africa

Governance for the
Built Environment
Prof. Ivan Turok
HSRC
BRICS+ CityLab, Moscow, December 2016
Adaptive governance:
why its important
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Global economic slowdown and uncertainty
Changing balance of power from N to South
Threats to international order
Rising inequality within nations
Political and turbulence instability
Climate change
Traditional government
Adaptive governance
• Sovereignty
• Power to authorise or
regulate
• Power to allocate
• Top down planning
• Hierarchical control
• Long-term predictability
 ‘Driving’ or ‘rowing’
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Convening power
Coordination
External relationships
Social responsiveness
Co-production
Partnership
Influencing
‘Steering’ or ‘guiding’
The value of comparisons
• Shock value – surprise from diversity –
– Different societies, processes, outcomes
• BRICS and major transitions away from central
control over last 2-3 decades
• Exploring particular issues for deeper
understanding and policy learning – adaptive
governance, judgement and power
Foundation of successful cities
State
investment in
infrastructure
Mixed economy
Requirements
change over time
Coordination
generates value
Household
investment in
housing
Business
investment
and jobs
Adaptive governance in the built
environment – how to coordinate?
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Signalling via good information
Nudging via incentives
Partnerships to share risks and rewards
Transparency and accountability
Consultation & social responsiveness
Market sensitivity & anticipation
Shared vision, voluntary cooperation
Learning and innovation
But not enough
Inertia in built environment
Legacy of historic policies & old industries
Powerful vested interests in property
Contestation & competition for land
Exceptional infrastructure costs
Popular resistance to paying taxes
Business as usual with national silo policies
Robust governance capacity in the landinfrastructure-finance nexus
Governance
of land
Finance for
Investment
Property taxes
• Property rights &
expropriation
• Land valuation systems
• Rules controlling real
estate development
• Capacity to enforce
Urban
infrastructure
Certainty for
long-term
investment in
skeleton of
metropolitan
system
= Empowered metropolitan
government
Neglecting these is a recipe for sprawling
& fragmented cities, excessive congestion,
overloaded infrastructure, extensive
informality, economic stagnation, social
instability and environmental
degradation!