INVESTIGATING URBAN FINANCE AND THE FORM OF THE CITY IN INDONESIA

The United Nations Capital Development Fund’s (UNCDF) Local Development Finance team is committed to facilitating effective urban infrastructure financing solutions in the world’s least developed countries (LDCs). As LDCs experience rapid urbanization, municipalities face mounting pressures to deliver a variety of public services. As urban inequality increases, LDCs also encounter additional challenges to providing basic infrastructure to marginalized communities living in informal settlements and slums. UNCDF enlisted a Capstone team to create strategies to improve and democratize access to basic services through urban form. The team conducted research on proven practices for creating livable cities that prioritize human connection and mobility, and for urban development that promotes health, prosperity, and sustainability. The team also investigated existing financing mechanisms that prevent municipalities from realizing the ideal urban form and proposed alternative solutions for community development finance. The team’s findings inform new efforts by UNCDF to create localized and specialized urban development funds.