TheChallengesofUrbanGovernment•CitiesandTownsaremarvelousandvitalinstrumentsofexchange,vitalforthedevelopmentofeconomicsystemsandsocialorganizations.PaulM.Hohenberg(1988)•TheextentofUrbanizationlargelydefinestheplaceofexchangeineconomiclife,andwithittheextentofspecializationandtheroleofmarkets,moneyandcredit.1.Economic•Urbanizationandeconomicgrowtharewellcorrelated.•Nationalincomeisproducedinurbanareas,accountingfor55%ofgrossnationalincome(GNP)inlow-incomecountries,73%inmiddle-incomecountriesand85%inthoseofhighincome(WorldBank1999).2.Political•Citiesandmunicipalitiesarethebasisofthepoliticalstructureofanydemocraticcountry,•(wherepoliticalactivityoccurs;constituentselecttheirrepresentativesandleaders;urbandwellersmaketheirelectedleadersaccountableforthetaxescollectedandfortheimplementationofpromises).•Urbandilemmasarealmostalwaysmultisectoralandcitymanagementhastobestudiedfromavarietyofanglesanddisciplines.Mayors’interests(1)•Howglobalinfluenceswillaffecttheircityandthewaytheircityrelatestotheexternalworld;•Howtoprepareanimplementastrategicplan;•Howtogenerateandadministertheresourcesrequiredfordailytasksanddevelopmentprojects;Mayors’interests(2)•Howtopartnerwiththeprivatesectorwhilekeepingthepublicinterestinsight;•Howtofavorororientthespatiallocationofthecity’sactivities;•Howtoreducepoverty,curbenvironmentalproblems,andusethetransportinfrastructuretoimprovethewellbeingoftheirconstituents.Challenges1•GlobalizationandMetropolitanDevelopment;Challenges2•CityStrategyandGovernanceChallenges3•City/MunicipalFinancialManagementChallenges4•Private-SectorInvolvementinPublicServiceProvisionChallenges5•LandandReal-EstateMarketsChallenges6•UrbanPovertyChallenges7•TheUrbanEnvironmentChallenges8•UrbanTransportandMetropolitanDevelopment