Published in Asia Environmental Review (ASER), March 1999

Key factors contributing towards sustainable urban development include being cautious in the use of subsidies, according to the chief of the US-Asia Environmental Partnership (US-AEP) Peter Kimm. "More often than not, subsidies go to the better off. We need realistic pricing for water, garbage collection, land and housing that are affordable for the majority. This, and transparency, is key to having your finances in order." Other key factors nominated by Kimm in a speech to the Mayors’ Asia Pacific Environment Summit in Hawaii last month include:

• Ensuring financial policies allow cities to conduct their business efficiently and fairly. "Improved municipal creditworthiness, within an appropriate legal and regulatory framework, will enable municipalities to have greater access to both debt and equity financing to meet their growing needs";

• Keeping in mind the links between the economy and the environment. "Clean water, clean air, and a clean environment demand extensive investment. And, at the same time, they create jobs and investment opportunities. There should not be a trade-off between them, whether in good economic times or bad."