URP 4221

An assignment
On
Indicators of characteristics of good urban governance

Student no: 030432

Date of submission: 17th September, 2007
 Table of contents

Page no.
Table of contents i
Defining urban governance 1
Characteristics and indicators of UNCHS 2
Characteristics and indicators of Global Urban Governance 11
Concluding remarks 18

i
 Characteristics and indicators of good urban governance

Defining urban governance

Urban governance is a process and based on specific goal. The goal is to improve the
quality of life of the people of urban area. For sustainable urban development urban
governance has patch up all things of urban area. It include host of problems such as
lack of urban services, employment etc. To address all these things we need urban
governance in urban area.
Urban governance wields power to people and it helps to bridge the gap between
ruled and ruling parties. Urban governance is the exercise of political, economic,
social, cultural and administrative authority in the management of a country’s affairs
at all level. Good urban governance raises the voice of the people of all strata of
society. So, urban governance plays a vital role in sustainable urban development.
Concept of indicators
Indicators are the factors through which the virtue or fault, effectiveness or
ineffectiveness, efficiency or inefficiency of a thing or matter can be identified or
justified. Indicator refers to those which are used to show the presence or state of a
condition or trend. Indicators are measuring instruments which provide information
about something. Indicators need to cover the key stages involved in the management
of society Indicators may be quantitative or qualitative, and will relate to some
specific aspect of interest (Manual for Governments and Other Stakeholders,
Commonwealth Secretariat, 1999)
Indicators need to have the following characteristics-
ƒ Indicators should be universal, acceptable, workable and operational.
ƒ Indicators should be based on factual information
ƒ Indicators should be commonly achievable
ƒ Indicators should be object oriented
ƒ Indicators should be replicable
ƒ Indicators need to have adopted methodology
ƒ Indicators should be commendable
Operational process of justification
Urban governance comprises some characteristics. But we can not easily say that
these characteristics are the best. To establish these characteristics as the best, it is
necessary to justify or to analyze each characteristic from various dimensions.
Various dimensions of a characteristic are called indicators. So, indicators provide
the clue or strong basis of judgment of characteristics of urban governance.

1
 Characteristics and indicators of good urban governance

There are many characteristics of urban governance. The characteristics and their
tentative indicators are given below-
According to United Nations Center on Human Settlement (UNCHS) the
characteristics of good urban governance are-
1. Sustainability
2. Subsiderity
3. Equity
4. Efficiency and effectiveness
5. Transparency
6. Accountability
7. Civic engagement and citizenship
8. Security
The indicators are given below according to characteristics-
1. Sustainability
It is a holistic approach addressing the matters of all walks of life living in different
societies of a city concern. Sustainability must endure whenever we run a project. It
refers to the continuation of a process. Such as poverty alleviation project in urban
area.
Indicators Explanations
Strategic Plans For sustainable development some strategic plans need
to undertake and in some case need to modify the main
plan through strategic process.
Vision/mission statements For sustainable development vision and mission need to
state clearly and should be implemented properly.
Communication strategy Communication among various development
organizations is one of the main key factors of
sustainable development. Communication reduces cost.
For example, electric polls, sewerage line can be
fabricated simultaneously at the time of road
construction.
Gender perspective It is necessary for sustainable development to provide
scope of participation both male and female in decision
making process.

2
 Characteristics and indicators of good urban governance

Revenue growth Total growth of revenue is necessary for sustainable

development through proper and gradual tax collection
system for rich and poor people.
Funds known in advance The scope of fund for a existing and future project is
necessary to know for sustainable development.

Setting targets Targets need to set for sustainable development within a

specified timeframe.
Existence of planning Sustainable development requires planning department
department
for future plan and for continuing the tasks
simultaneously and in a aggregated way.
Equity in tax system Equity should be ensured in tax system. Otherwise the
poor can not survive in competitive market.

Incorporation of excluded It is necessary to raise the voice of vulnerable people and

groups in the consultation
properly identify their necessities.
process
Access to basic services Accessibility in basic services needs to ensure for people
for disadvantaged groups
of all strata of society, mostly the disadvantaged group of
city. Because they are the part of a city and play a vital
role in economic development of a city.
Ratio of price of water in Mainly the poor people are living in informal
formal informal
settlements. So, subsidized price of water is applicable
settlements
for them.

Existence of local media Local media can raise the voice of local people and
highlight their needs and in this way it helps in
sustainable development.
Resource allocation Spatial allocation of resources is necessary for
sustainable development. Resources should be allocated
gradually and rationally according to spatial
requirements.
Rental Rental need to determine on the basis of income ratio in
formal and informal settlements.
Civil freedoms Civil freedom is necessary for sustainable development
to highlight the actual fact. Such as the freedom of press.

3
 Characteristics and indicators of good urban governance

Annual budgeting Annual budgeting is an important issue of sustainable

development. Budget should be practical and its target
should be in aggregated development.
Development commitment Development process should be executed according
commitment for sustainable development.
Consultation Consultation with stakeholders about policy and strategy
for execution of a project can make it more sustainable.
Protection of culture and Protection of culture and heritage is necessary for
heritage sustainable development because these have social,
ethical and economic value.
Promoting transfer of Transfer of technology can help to increase production,
technology reduce cost and ensure sustainability of industry and
product.

2. Subsiderity
Subsiderity means to help a project or policy. Subsiderity is the provision of
supportive services or supportive things. It is closeness with the appropriate function
in terms of resource allocation, cost effectiveness, caliber of science.
Indicators Explanations

Service charge Higher for rich and lower for poor and in some case
free service for poor. Such as, provide subsidy for
license fees for micro enterprise.
Capacity building Capacity building through training and providing
services can help efficient management of a project.
Regulatory help It refers to support of law at the time of construct a
new project if necessary.
Adoption of local legislation Its application is necessary to approve a project within
a short time but in legal process.

4
 Characteristics and indicators of good urban governance

3. Equity
Equity means the accessibility and participation of people of all strata of society in
decision making process. It mainly emphasize on the most vulnerable group in the
society. Equity should be ensured in terms of income, capabilities and opportunities
(UNDP, 1997).
Indicators Explanations
Human rights Rights of male and female should be ensured for
good urban governance.
Participation of male and Good urban governance ensures the participation of
female male and female in decision making process.
Justice Good urban governance ensure justice for people of
all strata of society such as rich and poor, powerful
and powerless etc.
Regulatory equity Regulations are equally applicable for all and it is
ensured by good urban governance.
Raise the voice of vulnerable Good urban governance raises the voice of city’s
and excluded group vulnerable group about their needs and ensures equity
in their rights.
Delegation of power Delegation of power is necessary form national to
local level so that local problems can be solved
through local authorities.
Koota system It is necessary to provide opportunities to special
group of people such as freedom fighters.
Equity in tax system Tax should be collected according to income ratio.
Allocation of resource Allocation of resource should be targeted towards
regular tax payer and poor people.
Rental Rental need to determine on the basis of income ratio
in formal and informal settlements.
Existence of local media Local media can raise the voice of local people and
highlight their needs and in this way it helps in
sustainable development.

5

4. Efficiency and effectiveness
Delivery of services which promote the social and economic development of city
should be efficient. Efficiency means the services must meet the need of society and
ensure the best use of resources.
Indicators
Evaluating responsibility of
authority
Central-local government
partnership
Consumer satisfaction
Capacity for delivery of
services
Income and expenditure of
local government
Development targets
Environmental quality
Economic development
Promote equity
Characteristics and indicators of good urban governance
Explanations
Evaluation processes need to continue for effective
execution of the responsibility of authority and
increase its efficiency.
Central-local government partnership ensures the best
use of resources and effective development.
Efficiency can be justified on the basis of consumer
satisfaction by a service. For example, we can treat a
water supply system as efficient if the people of its
command area are satisfied.
Efficiency depends on to what extent a service can
serve according its capacity. For example, suppose
an overhead tank has capacity to support 1000
people. If it can then we treat it as efficient.
Income and expenditure of local government should
be balanced and surplus income of local government
makes it more efficient. For example, in India the
local government helps the central government by
their internal surplus income.
If the development target is achieved by an
organization within the specified timeframe then can
be treated as efficient organization.
Environmental quality should be kept simultaneously
with the development process to prove a project as
efficient.
All kinds of social and economic overheads should
be targeted to economic development. If it possible
then efficiency will be achieved.
Promote equity in terms of tax payment system.
6
 Characteristics and indicators of good urban governance

5. Transparency
Transparency need to exist within the service providing and receiving body. There
will be no gap between service provider and receiver. Transparency means that the
decisions and actions should follow rules and regulations and everyone get access in
information.
Indicators Explanations
Impartial enforcement of Transparency need to exist in enforcement of rules and
rules and regulations regulations fairly for people of all strata of society.
Reflection of good Transparency ensures the reflection of good practices.
practices For example, accountability in income and expenditure
of a municipality to concerning authority.
Access to public It refers to access in the government system, civil
administration
service, and local governance activities.
Access to public financial It helps to remove the question of a general people about
management
the financial state of government. For example, how
much a person is paying taxes and to what extent he gets
the services.
Municipal revenue Municipal revenue collection and expenditure should be
collection and expenditure in black and white and in appropriate way.
Access to information Accessibility in information is necessary for ensuring
transparency. It helps to reduce corruption.
Community participation Community participation in decision making process will
helps to know what will be going on in future and it
helps to bridge the gap between provider and consumer.
Control of Corruption Transparency reduces the abuse of public power for
private gain and ensures efficiency and sustainable
development of a city.
Transparency of economic Economic policy should be transparent for sustainable
policy-making
economic development. For example, budged,
expenditure, sources of funds for execution of a project
should be mentioned clearly.
Transparency of the Public administration should be transparent so that
public administration
everyone can get the legal support for a problem.

7
 Characteristics and indicators of good urban governance

Up to date information It increases the transparency provider and consumer.

Promote ethical value It helps to increase transparency among stakeholders.

6. Accountability
Accountability need to exist among government, private and civil society in terms of
policies and actions. In general an organization or an institution is accountable to its
stakeholders.
Indicators Explanations
Professionalism Everything should be executed in professional way.
That is a development project should be executed in
defined timeframe and allocated budget.
Rule of law Accountability is ensured if the rule of law is applied
properly for service provider and receiver. An
authority is bound to provide service to a tax payer in
its command area.
Adherence to legal Both service provider and receiver should adherence
requirements and to legal requirements of providing services and in
administrative policies. case of municipal services, services should be
provided according to municipal ordinance.
Efficient and economical use It indicates to unnecessary use of resources,
of resources properties and excess use of fund. Excess manpower
should not be employed if necessity arises.
Participatory and Accountability ensured if a project is executed
decentralized activities in the through a participatory process. The duties and
planning and implementation responsibilities need to decentralized and clearly
of programs/projects defined so that the project is managed efficiently and
brought an effective result.
Evaluation of economic Economic performance need to evaluate to identify
performance the benefit of a project and it should have written
document so that anyone can get it if necessary.
Indicators Description
Professionalism Everything should be executed in professional way.
That is a development project should be executed in

8
 Characteristics and indicators of good urban governance

defined timeframe and allocated budget.

Rule of law Accountability is ensured if the rule of law is applied
properly for service provider and receiver. An
authority is bound to provide service to a tax payer in
its command area.
Regularity Services should be provided regularly. If not possible
then it need to have logistic cause.
Municipal record It is necessary to have municipal record on tax
collection, service charge etc.
Open consultation To execute a program or to solve a problem open
consultation among stakeholders can carries an
effective result.
Citizens report card Through this cards express their opinion about the
effectiveness and regularity of service.

7. Civic engagement and citizenship

It means the involvement of citizens in all civic services.
Indicators Explanations
Existence of emergency It is necessary to have existence of emergency laws
laws against public meetings, tradition of public actions etc.
Organization of groups Organization of groups is necessary to establish a single
opinion for the betterment of society.
Status of local leadership Good urban governance bridges the gap between local
leader and local people and helps to accelerate the
development process.
Allocation of resources Resources should be allocated according to need of local
people.
Reform of existing Create scope in existing policies for participation of
policies vulnerable and most disadvantaged group of people.
International co-operation International co-operation though civic engagement is
necessary for betterment of the citizen and improve the
quality of life.

9

8. Security
Security should be ensured for people of all strata in society in terms of basic needs
such as health, education etc.
Indicators
Percentage of unsafe areas
Crime rates
Feeling of safety
Cost of various services
Percentage economic
Growth
Security of basic services
Characteristics and indicators of good urban governance
Explanations
Security is higher if the percentage of unsafe city areas
is comparatively lower.
If crime rate such as murder, robbery is lower in an area
then it can be treated as secured area.
Feeling of safety is one of the most important indicators
of security. It is mainly ensured by the activity of police
in an area against an unwanted matter.
It refers to the financial security. If the service charges
are lower then the poor are feeling financial security in
an area.
Rapid economic growth provides employment
opportunity and it ensures financial security.
Security of basic services refers easy access to basic
services of the people and in subsidized cost.
10
 Characteristics and indicators of good urban governance

Global urban Governance has identified the following characteristics of good

urban governance. The characteristics are-
1. Accountability
2. Responsiveness
3. Management innovation
4. Public-private partnership
5. Local government and citizen interaction
6. Decentralized management
7. Networking
8. Human resource development
In respect of the characteristics the indicators are given below-
1. Accountability
Those who are providing services must be very much open minded. Who is
accountable to whom is depending on functional policy. Accountability ensures the
proper development of a city and ensures the improvement of quality of life of city’s
people.
Indicators Explanations
Professionalism Everything should be executed in professional way.
That is a development project should be executed in
defined timeframe and allocated budget.
Rule of law Accountability is ensured if the rule of law is applied
properly for service provider and receiver. An
authority is bound to provide service to a tax payer in
its command area.
Adherence to legal Both service provider and receiver should adherence
requirements and to legal requirements of providing services and in
administrative policies. case of municipal services, services should be
provided according to municipal ordinance.
Efficient and economical use It indicates to unnecessary use of resources,
of resources properties and excess use of fund. Excess manpower
should not be employed if necessity arises.
Participatory and Accountability ensured if a project is executed
decentralized activities in the through a participatory process. The duties and

11

planning and implementation
of programs/projects
Evaluation of economic
performance
2. Responsiveness
Responsiveness means that the duties of organizations and agencies should be
executed in a specified timeframe. Everything should be in time is the main theme of
responsiveness.
Indicators
Develop mechanism to
ascertain the need of the
stakeholders
Prioritization
Maximum coverage of
services
Budget allocation and
planning for basic service
Conflict resolution
Better allocation of domestic
resources
Government Effectiveness
Efficient production and
Characteristics and indicators of good urban governance
responsibilities need to decentralized and clearly
defined so that the project is managed efficiently and
brought an effective result.
Economic performance need to evaluate to identify
the benefit of a project and it should have written
document so that anyone can get it if necessary.
Explanations
It is necessary to ascertain the need of the
stakeholders take initiatives according to it.
Services need to provide based on the priority. For
example, municipal water supply should be higher in
industrial area.
People are paying taxes in municipal area. So, a
person who pay 2 taka tax should be ensure that he is
getting at least 1 taka equivalent service.
Budget allocation should be practical and benefit
oriented. It is necessary to plan properly for
development project such as construction of road,
water supply system etc.
Conflict may arise at the time of execution of a
project. Conflict resolution is possible through
participatory process.
Through the better allocation of domestic resources a
project can execute in defined time frame.
It is necessary for measuring the competence of the
bureaucracy and the quality of public service
delivery.
Efficient production and effective programs help to
12

programs
Economic growth
Administrative flexibilty
Regular assessment of
services
Future planning
Reform city management
system
Provide platform for
participation
Identify the weakness of
service delivery system
Training of concernicg stuff
Institutional reform
Project monitoring system
Simplified procedure
Availability of information
Characteristics and indicators of good urban governance
improve the quality of life of city’s people.
Economic growth indicates the increase of income
and development of quality of life.
In a policy or program there need to exist scope for
some changes for practical application if necessary.
It makes the services efficient and ensures consumer
satisfaction.
Future planning for development of social and
economic development is necessary for long term
develoopment.
Creation of scope of public participation for effective
management and development of city and improve
the quality of life.
It indicates the access of people of all strata of
society in decision making process.
It indicates to the better services for the consumers.
Training of concernicg stuff will help an efficient
continuation of a project.
Creating scope of participation of other urban actors
in development process.
To determine that goals and desirable social ends of
the programs/projects are attained and delivered to
targeted number of beneficiaries.
Process of getting services should be simplified.
It helps to know the general people about the
constitutional provision of service delivery process of
local and central government.
13
 Characteristics and indicators of good urban governance

3. Management innovation
It means to develop innovative ideas for development of urban system. Computerized
tax collection system may be an example of management innovation.
Indicators Explanations
Use of technology Use of new technology can make a service efficient and
better.
Development of inquiry Sudden monitoring system of higher authority can help to
and monitoring system successful and effective execution of a project.
Quality award Quality award will increase the competition among
executing organizations and it may carries a better output.
Bureaucratic strategy Existing strategies have been improved to conform to
service standards such as efficiency, effectiveness,
timeliness and economy.
Application of new It indicates to quality management, information
management technology and computerization.

4. Public-private partnership
Public-private partnership refers to the joint working arrangement. In recent time the
city beautification procedure is the best example of public-private partnership.
Indicators Explanations
Implementation of policies In executing programs public sector may provide
and programs subsidy to private sector so that they can contribute in
development process.
Improve efficiency of local It indicates towards the technology improvement,
government training, etc.
Joint involvement of public In planning, funding and implementation of programs
and private sector the joint involvement can accelerate the development
process. For example, city beautification process is
the best example of joint involvement of public and
private sector.
Privatization of local It indicates towards the efficient and better delivery
government services of services. In this case it is necessary to have some
control of public sector on private sector.

14
 Characteristics and indicators of good urban governance

5. Local government and citizen interaction

There need to close interaction between local government and the citizen of its
command area. The problems can be solved locally then it carries effective result.
Local government need to emphasize on bottom up approach.
Indicators Explanations
Reform of existing policies Ensure participation of vulnerable and most
disadvantaged group
Cooperation Cooperation between local government and citizen
can accelerate the development process.
Collaboration Collaboration of public and private sector is
necessary to meet the need of urban people. Because
of financial shortage as the public sector can not
fulfill all requirements, involvement of private sector
is necessary.

6. Decentralized management
It refers to the delegation of power. Let the local government to mobilize the local
resources for local people and make sure the best use of resources.
Indicators Explanations
Delegation of power It is necessary so that a project can run or a problem
can be solved not only through top down approach
but also through bottom up approach.
Presence of a monitoring It is necessary to provide feedback on the
system implementation of delegated tasks
Consistency Consistency in terms of organizational hierarchical
structure and actual delegation of tasks.

15
 Characteristics and indicators of good urban governance

7. Networking
Various organizations should be connected in networking system in terms of policy
and actions.
Indicators Explanations
Inter-local government It helps to aggregate development among districts.
networks
Intra-local government It helps to execute the development activities within a
networks district efficiently.
Central and local It helps to accelerate overall development of a country.
government network
Extent of international It indicates the cooperation among local unit in one
network country with various local units in other countries for
development and improves the quality of life.
Technological Through the networking process among countries people
improvement can share their technological knowledge for rapid
development.
Exchange of expertise It helps to sharing knowledge and helps in mass
and training production by use of same resources.

8. Human resource development

Human resource development means the capacity development of the people who are
working in urban system. It can be achieved through various training program.
Indicators Explanations
Employment/job creation Through employment an individual can improve his
skills.
Training It helps to improve the capabilities of local government
personnel.
Education It helps to make people aware about his rights.
Awareness building Awareness building in various aspects such as health,
education is helpful for human resource development.
Access to information An individual can able to know about his scope and
opportunities through the access of information.
Extent of the coverage of It is necessary to improve the different aspects of human
policies resource management.

16
 Characteristics and indicators of good urban governance

Concluding remarks
Urban governance is a process and its target is to bridge the gap among public, private
and civil society. Urban governance comprises some characteristics and all the
indicators of the characteristics are targeted towards the social, economic, cultural
development of a city. These are helpful to city’s sustainable and effective
management and improve the quality of life the citizens.

17
Concluding remarks
Urban governance is a process and its target is to bridge the gap among public, private
and civil society. Urban governance comprises some characteristics and all the
indicators of the characteristics are targeted towards the social, economic, cultural
development of a city. These are helpful to city’s sustainable and effective
management and improve the quality of life the citizens.
 Bibliography

ƒ Manual for Governments and Other Stakeholders, Commonwealth Secretariat,

1999
ƒ http://www.china.org.cn/english/BAT/31.htm
ƒ http://www.unescap.org/huset/hangzhou/paper/model2.gif

ƒ http://www.gdrc.org/u-gov/ugov-define.html

ƒ http://www.ipu.org/parline-e/parlineadvanced.asp
ƒ The Urban Governance Initiative/UNDP
ƒ UNDP, 1997 “Governance for Sustainable Human Development”