Let’s face it, municipal finance is not very exciting. When it comes to urbanization and smart city planning, talk of government bonds and regulatory frameworks isn’t nearly as captivating as smartphone apps that ease urban transport headaches or drone technologies to deliver goods to your doorstep.
But regardless of how mundane, public finance is a fundamental component of any city’s planning because it pays for the spaces and services that can allow private innovations to thrive. Municipal finance can itself be innovative. Perhaps the most creative component to it is the idea that cities inherently have sources of revenue that can pay for ongoing efforts in sustainable urbanization.
Much of municipal finance is actually political. Cities can create equity for local businesses and citizens by regulating the way urban areas are zoned or taking inventory of titled land. And they can unlock existing funding by working with national governments to formalize laws that mandate efficient intergovernmental transfers — a process referred to as “decentralization.”
About the author
Naki B. Mendozamfbmendoza
Naki is a former reporter, he covered the intersection of business and international development. Prior to Devex he was a Latin America reporter for Energy Intelligence covering corporate investments and political risks in the region’s energy sector. His previous assignments abroad have posted him throughout Europe, South America, and Australia.
