The accelerated urban development of the last few decades proves the importance of the role  of local authorities next to States in providing basic infrastructure and essential services  which are indispensable for local development. Nevertheless, a growing number of local  authorities lack the sufficient financial resources to make these investments. They need to  find external financial resources under satisfactory conditions.For several years now, Metropolis, The World Association of Major Metropolises has been
active in obtaining financial opportunities for local authorities from the international
community. The absence of specific proposals coming from States as well as the international community has led Jean-Paul Huchon, President of Metropolis, to propose that local authorities contemplate solutions themselves. Thus, he has decided to study a project to “create an innovative financial tool that serves to complement existing mechanisms” known as the “Bank of Cities” in order to bring this need into focus. 

After being ratified by the General Assembly at the Congress in Berlin (May 2005), this  project was a topic of discussion during the Board of Directors meetings in Toronto (June
2006) and in Paris (December 2006). A preliminary study report was validated by the
Metropolis Board of Directors in Antananarivo (September 2007), and then by the Executive Bureau and the General Assembly of United Cities and Local Governments during the Congress in Jeju (October 2007).
The Bank of Cities project is written into the final declaration of  the UCLG Congress, and its members hope to make it a reality by 2010.  The Sydney Congress (22-25 October 2008) will represent a new and important step for the  project. Proposals regarding organisation and financial tools will be presented, as well as  the execution of specific projects concerning: public transport in Antananarivo, the  reformation of the historic district of Makati (Manila) and protection against rain flooding  in Belo-Horizonte. It is an opportunity for close partnership between Metropolis and  the Cities Alliance, and for a strengthened dialogue with representatives of the World Bank,  regional banks, private banks and the large international foundations. The Sydney Congress  will be a moment of exceptional debate on the theme of financing for local authorities.

Text and photograph for this highlight courtesy Metropolis, a Partner and Cooperating
Organization with dgCommunity Urban Development.