In the two decades from 1995 to 2015, Australian local governments experienced a fourfold increase in expenditure. Even more striking though, is that during this same period many local governments were stripped of their water and sewerage functions – so these figures actually underrepresent the real picture. This report proposes a range of suggestions to address the financial sustainability of local government.

The analysis of urban development of the past twenty years presented in this maiden edition of the World Cities Report shows, with compelling evidence, that there are new forms of collaboration and cooperation, planning, governance, finance and learning that can sustain positive change. The Report unequivocally demonstrates that the current urbanization model is unsustainable in many respects. It conveys a clear message that the pattern of urbanization needs to change in order to better respond to the challenges of our time, to address issues such as inequality, climate change, informality, insecurity, and the unsustainable forms of urban expansion.

How we plan, build, and manage our cities today will determine the outcome of our efforts to achieve a sustainable and harmonious development tomorrow. Well-planned cities allow all residents the opportunity to have safe, healthy, and productive lives. Well-designed cities present nations with major opportunities to promote social inclusion, resilience, and prosperity

At the 2015 United Nations General Assembly, 193 UN member states unanimously adopted the 2030 Agenda for Sustainable Development, a global development agenda that lays out 17 Sustainable Development Goals (SDGs) to be achieved by 2030. The SDGs, which came into effect in January 2016, are a universal set of goals, targets and indicators that set out quantitative objectives across the social, economic, and environmental dimensions of sustainable development. Addressing critical sustainability issues such as poverty, climate change, inequality, economic development, and ecosystem protection, the SDGs will be implemented in all countries, across different territorial scales. Cities and human settlements will be key to achieving the global SDGs. The SDGs come into effect in a world that is increasingly urban, with a little over half the global population now living in cities. Urbanization has thrown up some of the world’s greatest development challenges, but it also has tremendous opportunities for advancing sustainable development. SDG 11 recognizes the central role of urbanization in sustainable development, and calls for ‘mak[ing] cities and human settlements inclusive, safe, resilient and sustainable.’ As one of the 17 SDGs that will shape public policy priorities and guide development finance flows for the next fifteen years, the ‘urban SDG’ provides a tremendous opportunity for cities to build robust partnerships and gain additional resources for advancing sustainable urban development. For mayors and local leaders that are working to improve the quality of life in urban environments, the SDGs provide a roadmap for more balanced and equitable urban development. All cities aim to increase prosperity, promote social inclusion, and enhance resilience and environmental sustainability. In this way the SDGs capture large parts of the existing political agenda in virtually every city. When aligned with existing planning frameworks and development priorities, they can strengthen development outcomes and provide additional resources for local governments.