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 14. In general, urban growth has often preceded the establishment or a solid, iversified economic base to support the build-up of housing. infrastructure. and employment. In many places, the problems are linked to inappropriate patterns industrial development and the lack of coherence between strategies for agricultural and urban development. 'hc between national economies and international economic factors has been discussed in Part I of this report. The world economic crisis of the 1980s has not only reduced incomes, increased unemployment. and eliminated many social programmes. It has also exacerbated the already low priority given to urban problems, increasing the chronic shortfall in resources needed to build, maintain, and manage urban areas. {{c|

2. The Situation in Industrial World Cities
}} 15. The Commission's focus on the urban crisis in developing countries is not meant to imply that what transpires in the cities of the industrial world is not of crucial importance sustainable development globally. It is. These cities account for a high share of the world's resource use, energy consumption, and environmental pollution. Many have a global reach and draw their resources and energy from distant lands, with enormous aggregate impacts on the ecosystems of those lands.

16. Nor is the emphasis on Third World cities meant to imply that problems within the cities of industrialized countries are not serious. They are. Many face problems of deteriorating infrastructure, environmental degradation, inner-city decay, and neighbourhood collapse. The unemployed, the elderly, and racial and ethnic minorities can remain trapped in a downward spiral of degradation and poverty, as job opportunities and the younger and better-educated individuals leave declining neighbourhoods. City or municipal governments often face a legacy of poorly designed and maintained public housing estates, mounting costs, and declining tax bases.

17. But most industrial countries have the means and resources to tackle inner-city decay and linked economic decline. Indeed, many have succeeded in reversing these trends through enlightened policies, cooperation between the public and private sectors, and significan investments in personnel, institutions, and technological innovation. Local authorities usually have the political power and credibility to take initiatives and to assess and deploy resources in innovative ways reflecting unique local conditions. This gives them a capacity to manage, control, experiment, and lead urban development. In centrally planned economies, the ability to plan and implement plans for urban development has been significant. The priority given to collective goods over private consumption may also have increased the resources available for urban development.

18. The physical environment in many cities of the world has improved substantially over the decades. According to the historical records of many major centres like London, Paris, Chicago, Moscow, and Melbourne it was not too long ago that a major part of their population lived in desperate /…