The development objective of the Urban Management Programme is to strengthen the contribution that cities and towns in developing countries make towards human development, including participatory governance, economic efficiency, social equity, poverty reduction, and environmental improvement. This is to be achieved through more efficient and equitable use and distribution of resources, including the harnessing of skills and initiatives of individuals, communities, private and voluntary organizations and local authorities.

The UMP has undergone radical changes in the three phases of its history since 1986.

Phase 1 of the programme (1986-1991) focused on applied research in the four theme areas of land management, municipal finance and administration, infrastructure and urban environment, with the purpose of developing urban management policy frameworks and tools at the global level.

Phase 2 (1992-1996) was aimed at using these frameworks and tools to build capacity at the regional level and to extend it to the country and city levels. A fifth component, the alleviation of urban poverty, was added to the substantive components of Phase 1. The main mechanisms were the establishment of regional capacity, including regional panel of experts and the holding of workshops and consultations at the country level to introduce these policies and tools. The programme structure was decentralized to give the regional offices the responsibility for carrying out these activities.

The over-riding thrust of the Urban Management Programme in Phase 3 (1997-2001) was to build and strengthen the capacity of governments and other stakeholders to address urban problems specifically through city consultations involving partner institutions at the regional country and local levels.

Phase 4 (2001-2004). Continue with similar themes as in the phase 3, but with stronger focus on pro-poor governance and activities that lead to a definite impact on the living conditions of the urban poor. The partner institutions are expected to be fully engaged in city consultations, while the UMP regional offices are expected to focus on knowledge management through the network of regional institutions and municipal associations.