The center of gravity for public policy is shifting towards cities - but local governments are traditionally the weakest layer of the public sector. Employment - new entrants into the labor force will be overwhelmingly urban. The comparatively educated urban population, which is also young and aware of deprivation, presents a particular political pressure on these local and national governments. Infrastructure - to meet the new and existing demands and replace deteriorated stock. Finance - will have to come from new and untapped sources, requiring vastly improved management and stronger urban economies.
Fiscal federalism is central to the debates about fiscally sustainable development.
Habitat Commitments 8. At that time, the Bank identified three dynamically interrelated priorities for public policy emerging from the megatrends of accelerated globalization, urbanization, and decentralization. These three remain our priorities. We also remain committed to work as a full service partner in helping to build a better urban future for the Bank's most important clients - the poor people in developing countries. We remain committed to helping countries to break out of the vicious circle of financial insecurity, poverty and environmental decay.