Sri Lanka and India tackle urbanization challenges through innovative projects

Sri Lanka and India tackle urbanization challenges through innovative projects
Banking & Financial Services
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Ajay Banga 14th President of the World Bank Group | https://encrypted-tbn1.gstatic.com

Urbanization is a powerful tool for sustainable development and job creation, yet it poses challenges related to inclusion, sustainability, and service provision. In South Asia, projects in Sri Lanka and India are addressing these issues by fostering livable, sustainable, and inclusive communities.

Sri Lanka's Local Development Support Project (LDSP) empowers local authorities to create jobs and improve services. A beneficiary of the LDSP-funded Katupathwewa water supply project stated, “Previously we only received water once in 2 days...Now we get piped water 24 hours a day.” Another business owner noted improvements in financial stability thanks to support from the project.

India's Uttar Pradesh Pro-Poor Tourism Project (UPPTP) promotes pro-poor tourism. Farzana from Muzaira Self-Help Group saves INR 6,000 monthly to expand her business. Sabreen of Ayan Self-Help Group has increased her earnings through improved weaving skills.

The World Bank supports these projects aiming for sustainable communities via green practices. The LDSP began in 2019 with World Bank financing to empower local authorities across four provinces with block grants for community services such as water supply and rural roads.

The UPPTP launched in 2018 as India's first World Bank-financed tourism project using a pro-poor approach. It aims to benefit craftspeople and women by mapping cultural assets and maximizing tourism benefits locally.

Results show transformative impacts: LDSP benefited over one million people by implementing sub-projects like road construction and health centers; UPPTP enhanced urban areas' infrastructure benefiting nearly 16,000 individuals while increasing domestic tourists’ spending.

Funding for these initiatives came from various sources including IDA credits and EU grants for LDSP, alongside an IBRD loan for UPPTP. Partnerships were crucial with entities like UNDP enhancing capacity building efforts.

Looking forward, both projects demonstrate models of how urban planning can drive economic growth while supporting marginalized communities. The approaches have been adopted locally within Sri Lanka’s national systems and globally as strategies post-COVID-19 pandemic recovery efforts continue.