Financing Localization and Localizing Finance at the 12th Urban Forum

The 12th Urban Forum presents an opportune platform to explore the nuances of financing localization and localizing finance, crucial aspects for sustainable urban development. In collaboration with the Lincoln Institute of Land Policy, the Inter-American Development Bank (IADB), and the Organization for Economic Cooperation and Development (OECD), and UN Habitat ‘s Global Land Tools Network (GLTN), we propose a networking event focusing on the specific conditions and obstacles faced by local governments in accessing both public and private sector finance for local development initiatives. Through an open dialogue, we aim to highlight effective strategies, foster collaboration, and increase awareness regarding the importance of financing at the local level in achieving the Sustainable Development Goals (SDGs).

Key issues and themes to be addressed during the panel include understanding the challenges encountered by local governments in accessing public and private sector finance, identifying strategies that have proven effective in overcoming these challenges, and exploring the role of revenue raising in municipalities, land value capture, local fiscal management, accountability, and transparency in unlocking access to private finance for the SDGs. These discussions will shed light on the diverse mechanisms and approaches that can be employed by municipal officials and other stakeholders to enhance access to finance at the local level and promote sustainable urban development.

The panel will feature insights from the OECD, offering a global comparison of revenue-raising and access to financing in municipalities utilizing the latest data from the World Observatory on Subnational Government Finance and Investment (SNG-WOFI); contributions from the Lincoln Institute of Land Policy, ensuring a global and comparative perspective with a focus on land value capture issues in Africa, particularly South Africa, and innovations in accelerating capital investments in the North American context; lessons and updates on the application of land based financing tools in the Global South from the GLTN; and insights from the IADB, presenting recent research on municipal financial intermediaries that defines criteria for developing modern subnational credit markets that contribute to national economic objectives and suggests ways to increase the positive impact of these agencies in addressing infrastructure financing challenges and promoting sustainable urban development.

By bringing together expertise from these institutions, the proposed panel aims to support local officials and stakeholders by generating actionable insights and facilitating collaboration towards enhancing access to finance at the local level.