This chapter addresses the wide range of problems that face municipal authorities in financing urban development as they respond to the challenges of major shifts in their economic base, resulting from falling trade barriers and a globalizing economy. Concurrently, the devolution of administrative and financial responsibility from central governments has forced them to finance a growing proportion of their recurrent and capital expenditures at a time when, in most countries, the urban population is expanding rapidly. This chapter particularly highlights new and innovative approaches to financing urban development, as well as the contextual relevance of urban development finance to finance for shelter development. ...

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