1st Part of the study on the mobilization of local resources in preparation for Habitat III

The Committee on Local Finance of UCLG is working on a cross-cutting study to sharpen its advocacy on local finance in preparation for Habitat III.

This study aims at analyzing the triggering factors of success of public policies dedicated to financing urban development, with a focus by territory on the main financing sources of local governments:

  • Local taxation and recurrent local resources (local governments’ structural resources necessary to cover public services’ operating costs)
  • Land and real-estate value capture (endogenous resource that enables “the city to finance the city”)
  • Long-term external resources (reimbursable resources enabling to leverage new funding dedicated to investments, mainly through borrowing, PPP and climate finance).

The study of each of the components above-mentioned proceeded along the same methodology, starting with a literature review aiming at bringing out the key issues, based on well-documented examples of cities and countries.

This phase is now completed; each expert has produced preliminary versions of their reports that highlight the main conditions for each financial instrument to be implemented effectively and efficiently.

Details on the three reports:

- Land and real estate valuation, by David Albrecht, with the contribution of Vincent Renard and Claude de Miras

- Access to long-term external resources, by Matthieu Collette

- Local finance and recurrent local revenue, by Guy Gilbert

The study is coordinated under the supervision of a steering committee made of a team of experts, international financial and technical partners: the French Development Agency and the French Ministry of Foreign Affairs.