Planning for development in rapidly urbanizing Asia requires a fresh look. This book analyzes emerging urbanization patterns and explores the potential of city cluster development in Asia.

City cluster development takes into account the provision of infrastructure and services in connection with spark potentials of economic growth and dispenses with the urban–rural dichotomy of traditional development planning, recognizing that urban centers are not only hubs for economic growth but also service centers for surrounding areas.

Based on the review of how city clusters form and develop, this book explores strategic planning framework for city cluster development and includes some cases of possible city cluster development in India.

Executive Summary
The Asian Development Bank’s (ADB’s) recent adoption of a new long-term strategy (Strategy 2020) to reduce poverty in developing member countries through inclusive development and growthpromoting activities provides an excellent opportunity for achieving sustainable economic and social development through city cluster development (CCD).

Cluster-based development has become an increasingly attractive topic during the last decade in the field of business competitiveness and among economic development professionals. CCD is an urban-led approach that enhances the developmental potential of cities and towns within an urban region by strategically linking their development fields through efficient provision of urban infrastructure and services and innovative financing techniques.

Since ADB was launched in 1966, Asia has urbanized rapidly, and it is projected to become 55% urban by 2030. Asia already has more than half of the world’s megacities, and city clusters made up of small and medium-sized cities are growing at a faster rate in Asia than elsewhere.

The approach can be strategically used to spark overall economic growth with the use of modalities such as

• prioritized investments in urban infrastructure and services by governments and the private sector;
• long term comprehensive development planning that encompasses whole urban regions;
• innovative financing schemes, including public–private partnerships, domestic and foreign investments, new revenue sources through taxation reforms, levying of user charges, and new credit schemes;
• unlocking the value of land as an instrument of development and capturing increases in the value of land and property because of the improved infrastructure provision;
• establishing clustered economic development zones, hightech enclaves, and industrial parks as integral parts of CCD schemes; and
• adopting innovative forms of urban region governance.

This flagship study traces the theoretical antecedents of CCD and analyzes its emergence in Asia. It proposes a framework for assessing the use of CCD as an urban-led strategy for economic and social development. It suggests various approaches that ADB can use to encourage CCD among its developing member countries. It also outlines a CCD approach for the development of selected urban regions in India.

Visit City Cluster Development: Toward an Urban-Led Development Strategy for Asia Download Page

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K. CHOE and A. LAQUIAN
Asian Development Bank
ISBN: 978-971-561-697-3
Publication Date: August 2008

Contents
Executive Summary vi
Background 1
City Cluster Development 7
Urban, Urbanization, and City Clusters 7
Views on the Role of Urbanization in Development 12
Beneficial Aspects of Clustered Urbanization 14
City Cluster Development in Asia 21
Urban Corridors 22
Megacity-Dominated Clusters 25
Subnational City Clusters 29
Transborder City Clusters 31
Special Economic Zones and Other Enclaves by Distinctive Functions 33
A Strategic Framework for City Cluster Development 37
Barriers to City Cluster Development and Measures to Mitigate Them 38
Approaches for Developing City Clusters 50
A Road Map for Pursuing City Cluster Development Initiatives 61
Including Urban Sector Initiatives in Country Development Strategies 63
Identifying Potential Areas for CCD Initiatives 63
Adopting a Set of Guidelines for Selecting Potential CCD Projects 64
Seeking and Using Local Expertise 66
Mobilizing Financial Resources 67
Conclusions and Recommendations 69
References 73
Appendix: City Cluster Development in India 79

About the Asian Development Bank

ADB's vision is an Asia and Pacific region free of poverty. Its mission is to help its developing member countries substantially reduce poverty and improve the quality of life of their people. Despite the region's many successes, it remains home to two thirds of the world's poor. Nearly 1.7 billion people in the region live on $2 or less a day.

ADB is committed to reducing poverty through inclusive economic growth, environmentally sustainable growth, and regional integration.

Based in Manila, ADB is owned by 67 members, including 48 from the region.

Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. In 2007, it approved $10.1 billion of loans, $673 million of grant projects, and technical assistance amounting to $243 million.

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