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2. The Capable City in the Context of Sustainability and Governance
In the context of sustainability, a capable city is one that is able to meet the present and future needs of its citizens for social, economic, cultural and environmental well-being while not preventing others from meeting their needs. A capable city or region can meet the challenges and seize the opportunities posed by change in all its various forms. It is resilient in the face of shocks and threats.
Governance is distinguished from government by the fact that it involves harnessing the collaborative energies of all sectors of a community – traditional government institutions, the private sector, and civil society. Urban governance has been described by HABITAT as "the sum of many ways individual citizens and institutions, public and private, plan and manage the common affairs of the city. It is a continuing process through which conflicting or diverse interests may be accommodated and cooperative action can be taken. It includes formal institutions as well as informal arrangements and the social capital of citizens."2 Whereas traditional government institutions can be likened to machines that are designed to do specific jobs, governance institutions are like complex organisms that can learn how to adapt to a rapidly changing and complex environment.3
Governance is often referred to as a cross cutting theme of sustainability – a fourth element that is essential to support the economic, social and ecological components of sustainable development.3 To meet the challenges of sustainability, cities will require both better governance models and increased capacity to deliver services and meet citizens' needs using these models. Improved governance and capacity-building go hand in hand, because capacity-building liberates energies and resources hitherto unavailable. "Capacity development builds on and harnesses indigenous capacity. It is about promoting learning, boosting empowerment, creating enabling environments, integrating cultures, and orientating personal and societal behaviour."5
Cities can no longer face mounting challenges and diminishing resources by using a top-down authoritarian and/or exclusively service delivery model of administration. Nor can they tap their full potential as vehicles for sustainability in this way. By definition, sustainability requires buy-in and engagement by all major sectors of society. Moreover, the challenges of the coming decades will require that local governments broker a wider array of resources and energies to do what needs to be done.
To be effective, each organization or constituency within this broader governance matrix must possess the necessary financial resources, attitudes, knowledge, and skills to perform its role well. Non-profit groups, for instance, often need a minimum of financial and other resources to ensure that they can function and be effective partners and advocates. These resources may be provided by governments, foundations, members or donors. While acknowledging that the financial capacity of many NGOs and small private sector firms may need enhancing to encourage participation, their contribution is essential to developing sustainable solutions to urban issues. When involving poverty groups it is important not to equate lack of education or skills with lack of intelligence or diminished capacity to contribute valuable opinions about what will work and what will not. In many cases these agents are very sophisticated and have much to teach governments and other participants. Moreover, in many developing nations, it is the small entrepreneurs and NGOs that are providing much of the infrastructure and are thus the organizational foundation for community action.6 A sustainable approach to governance must assess what each sector has to contribute as well as its capacity deficits.