This paper identifies a range of governance mechanisms to support the efficient and equitable provision of public services and improve policy coordination in metropolitan areas. It provides examples from cities in the Global North and Global South, and takes a closer look at metropolitan governance in Brazil, where the constitution makes it challenging to create formal metropolitan structures. The paper suggests that the choice of metropolitan governance structure depends upon how one weighs conflicting considerations—prioritizing efficiency, access, and accountability points to smaller local government units whereas economies of scale, externalities, and equity suggest larger governments. The review of metropolitan governance models does not point to one model that could work everywhere because national and local context matter. Nevertheless, the paper suggests that countries should develop more effective systems of governance for metropolitan areas if they want to improve service delivery, cost sharing, and decision-making. A regional structure that encompasses the entire economic region would ensure that services are delivered in a coordinated fashion across municipal boundaries and improve the process as a whole by reaping the benefits of economies of scale and internalizing externalities.

Capital Cities and Urban Sustainability examines how capital cities use their unique hub resources to develop and disseminate innovative policy solutions to promote sustainability. Cities are taking a leading role in defining a sustainable future at a time when national, state, and regional governments in several countries do not provide sufficient leadership. Capital cities stand out among cities as likely leading drivers in the effort to empower sustainable innovation as they provide a hub for connecting a variety of key constituencies. While acknowledging the successes capital cities have achieved, the international, multi-disciplinary contributors to this work discuss how there is room to do more and improve. The promotion of specific sustainability policies in crucial areas such as clean water provision, high tech innovation, public procurement contracting, and improving flood control in capital cities is examined through various global case studies. The examples range from relatively rich capital cities, such as Copenhagen, where the well-financed hub would be expected to succeed in generating sustainable policies, to poorer cities such as Phnom Penh, where such an optimistic outcome can seem less likely.

Cities are assets, solutions and drivers of economic and social development. Cities possess huge untapped economic potential that can and should be leveraged to create wealth and economic opportunities for all. This requires good urban planning that supports urban compactness, integration, and connectivity. However, even the best urban plans risk ending up unused if they are not accompanied by financial and regulatory strategies for implementation. Strategic public investments must go hand in hand with strategic funding mechanisms and supporting governance systems. The report also identifies successful governance mechanisms for efficient and equitable provision of public services in metropolitan areas of developing countries, and shares experiences and methods to making public service provision more viable in peri-urban areas of large cities and in smaller urban centres of these countries.

This Sustainable Urbanization Strategy outlines how UNDP is responding to rapid urbanization in developing countries and its consequences for sustainable development. It outlines how UNDP will support countries and cities, building upon its past and current work on urbanization. The strategy presents the complex and evolving urban challenges and the interrelated development choices which cities face as they strive to achieve the SDGs and implement the New Urban Agenda. It also sets out UNDP’s comparative advantage and experience in core thematic areas which are relevant to achieving the SDGs in cities and urban areas.