CAF Highlights the Need for More Inclusive, Competitive and Eco-Efficient Cities

(Panama, October 2013) -In Latin America, statistics show that 470 million people live in urban areas, which represents 80 percent of the population, while roughly 25 percent of the population lives in informal settlements. In terms of infrastructure needs, estimates peg the region's investment requirements at USD200 billion (50 percent higher than current levels), and in terms of competitiveness only 13 cities, including Panama, are among the 120 most competitive cities of the world.

Based on such findings, CAF-development bank of Latin America-has launched its "Cities with a Future" program that aims to develop more inclusive, competitive, eco-efficient, intelligent and sustainable cities to improve the quality of life of the region's urban populations.

The program's pillars consist of inclusive urban development, productive transformation, environmental sustainability, institutional strengthening and safety for all citizens.

Cities with a Future includes measures that enhance urban and rural planning and development policies, provide game plans for infrastructure development, analyze vulnerabilities and make adaptations for climate change as well as support the identification and incorporation of various synergies from a comprehensive zoning and planning perspective.

Through the use of CAF financial instruments over the last decade, more than USD4 billion in investments and technical assistance have been approved for use in the cities of Bogotá, Guayaquil, Panama, Lima and Caracas.

These and other topics were presented at the VII Americas Competitiveness Forum in Panama City, which saw the participation of CAF's Chief Regional Executive for Public Policy and Competitiveness Marco Kamiya, who pointed out that "Latin American cities are a reflection of the growth taking place in our countries. A more integrated and coordinated vision will result in cities that will be inclusive, competitive, efficient and sustainable over time. "

In addition to the Cities with a Future program, CAF is working to respond to shortcomings in the availability of reliable and updated data in the transportation sector to better address mobility in the region, chiefly by setting up an Urban Mobility Observatory for Latin America, which was born out of analysis of 15 metropolitan areas in nine countries in the region. Data compiled by the observatory indicate that due to heavy vehicular traffic in Latin America, people conduct on average two trips a day mainly between work and home. Meanwhile in developed countries, people take on average three and a half trips a day, which suggests that such commuters are conducting more extracurricular activities upon completing the day's work, which tends to improve the quality of life for the inhabitants of such cities.

Locally, CAF supports projects that improve competitiveness and make progress at the city level, including work improving the Panama metro system, expansion work on the Panama Canal and a bay sanitation project. Such projects will improve physical, socioeconomic and environmental conditions in Panama City.