Seyyed Mohsen Tabatabaei Mozdabadi, the secretary of IUESA in an interview with Mehr News Agency said: today, cities, as the places that housed most of the population in the world and as the centers of gravity of population, are of great importance in economic issues and it increases more than before.

Noting that one of the most important problems of urban management institutions is lack of adequacy of urban sustainable revenues for financing urban project costs so that sustainable revenues finance only 20 to 25 percent of urban projects, he said: this approach leads to finance urban projects through unsustainable and destructive methods such as selling density and land use change.

Emphasizing that global experiences show us that management in developed cities finance than more 60 percent of their revenues through sustainable ones, he added, for example, 78 percent in Tokyo, 73 percent in Taipei, 65 percent in Seoul and Stockholm are financed from the revenues of urban management institutions.

Saying that, on the other hand, private sector participation fulfills high percent of these needs in some countries, he further said: for instance, private sector invested more than 755 billion dollars in more than 2500 urban projects in developing countries during 1990 to 2001.

This amount is considerable, but unfortunately, adequate infrastructures have not been considered for private sector participation in urban projects in Iran. Adding that, financing via financial papers can be very influential in line with avoiding the destruction of urban infrastructures and helping urban sustainable development.

Urban economy is dependent on active economic institutions. These institutions either administered by private sector and corporative or urban management institutions that are very effective on urban product, urban employment, inflation, consumption, and investment. Supporting the economic institutions can be very influential in legal, economic area and flourish urban and national economy consequently.

One of the most important proposed issues in the policies of exiting from recession is improving business environment, supporting the development economic institutions focusing on small and average businesses, stimulating product, and supporting product investment projects in different of financial, legal and bureaucracy dimensions and using new financing tools. Since most of urban economic institutions are small and average, anti-recession packages are appropriate capacity for helping this sector.

Source : Mehr News Agency