FSS Discussion Paper No. 2

 

 The City of Addis Ababa: Policy Options for the Governance and Management of a City with Multiple Identity

Meheret Ayenew (Ph.D)

Faculty of Business and Economics

Addis Ababa University

 

FORUM FOR SOCIAL STUDIES

Addis Ababa

December, 1999

 

 FSS Discussion Papers are published to stimulate debate and critical comment.

The opinions expressed in this paper are those of the author and do not necessarily reflect the views of FSS or its Board of Advisors.

 The publication of this paper has been made possible by financial support from the FRIEDRICH EBERT STIFTIJNG for which we are grateful.

Copyright. The Author and Forum for Social Studies, 1999.

Meheret Ayenew is a member of the Department of Management and Public Administration, Faculty of Business and Economics, Addis Ababa University. He is the coordinator of the graduate program in Regional and Local Development Studies. He is also a member of the Forum for Social Studies. His interests include development management, governance and decentralization.

Address.

Forum for Social Studies

P.O. Box 3089

Addis Ababa

Tel.:  (251-1) 12 95 79; 55 61 21

 TABLE OF CONTENTS

List of Acronyms

Summary

I.    Introduction

II.  Background Information about Addis Ababa

III. Socio-Economic Problems of Addis Ababa

Inadequate Water Supply

Inadequate Refuse Collection and Solid

Waste Management System

Primitive Sanitary Conditions

The Transport and Road Nightmare

Shortage of Residential Housing and Overcrowding

Other Socio-Economic Problems

 

IV. Theoretical Discussion

 

Nature and Task of Urban Governance

Models of City Government

 

V.   Challenges and Problems Facing the City

 

The Problems of Multiple Identities

Administrative and Fiscal Challenges of Multiple Identity

Limited Legal Authority over Public Utility Corporations

Absence of Defined Working Relationship with Public Utility Authorities

Inadequate Capacity for Revenue Collection

Underutilized Revenue Potential

Erratic Revenue and Expenditure Pattern

Absence of Property Taxes

 

 

 


VI. Policy Options

 

Grant Addis Ababa Genuine Autonomy

Give the City a Vision and Mission

Redefine the City’s Jurisdiction

Establish a Career Public Service for the Municipality

Institutionalize a Professional Urban Leadership

Depoliticize the Management of the City

Differentiate the Roles of Career Municipal Personnel and Politicians

Establish a Federal Urban Planning and Management Training Institute

Decentralize the Administration

Promote Citizen Participation in Urban Governance

Encourage Non-Governmental Actors to Participate in Urban Governance

Use Alternative Systems of Service Delivery

 

VII Conclusion

 

 

VIII References

 

 

LIST OF ACRONYMS

AACC                          Addis Ababa City Charter                                                                      

AACG                          Addis Ababa City Government

AAMPPO                    Addis Ababa Master Plan Project Office

AARH                          Agency for the Administration of Rented Houses

AAWSSA                     Addis Ababa Water Supply and Sewerage Authority

ANRS                           Amhara National Regional State

BUWD                          Bureau of Works and Urban Development

CSA                              Central Statistical Authority

CSB                              Civil Service Bureau

EEPCO                                     Ethiopian Electric Power Corporation

EPRDF                                     Ethiopian Peoples Revolutionary Democratic Forces

ETC                              Ethiopian Telecommunications Corporation

FDRE                            Federal Democratic Republic of Ethiopia

GTZ                              Deutsche Gesellschaft fur Technische Zusammenarbeit

NGOs                            Non-Governmental Organizations

SNNPRS                       Southern Nations, Nationalities and Peoples Regional State

TGE                             Transitional Government of Ethiopia

UDSS                            Urban Development Support Services

UNCHS                        United Nations Center for Human Settlements

UNICEF                       United Nations Children’s Fund

WUDB                          Works and Urban Development Bureau

 


The City of Addis Ababa: Policy Options for the Governance and Management of a City with Multiple Identity

Meheret Ayenew

 

Summary

 This paper argues that the city of Addis Ababa should adopt the council-manager model of government. Ethiopia ‘s foremost city faces complex socio-economic problems that are related to its governance and leadership structure. Addis Ababa should be led by an elected council that will make laws and policies, and a professionally competent management that will be responsible for the day-to-day running of the municipality. Both the elected councilors and the non-elected municipal bureaucracy should he aware of the core functions and responsibilities of effective urban governance. It is important that the management of the city government should explore alternative means of service delivery, including contracting, privatization and joint management of municipal services. Apart from cost considerations, these alternative means are preferred because they have been found to be more efficient, flexible and less bureaucratic than large municipal departments.

Io this paper, the challenges and problems of Addis Ababa have been discussed and policy options forwarded to improve its governance and management. It is argued that one of the problems of Addis Ababa‘s current governance and management structure is that it is not participatory and transparent. Urban management in Ethiopia has a Long-standing tradition of upward accountability to the government rather than to the people. What is needed is a democratically elected municipal council that will be accountable to the electorate and a career public service that will he judged by its performance in managing the city. Public participation and the involvement of institutions of civil society in urban management are aspects of democratic governance. This practice can enhance the responsiveness of the municipal administration to the needs and problems of the community.

 

I. Introduction

The governance and management of cities in the developing world will continue to be issues of concern for development policy makers well into the next millennium. According to a UN study, over half of the developing world or about two and half billion people will be urbanized by the year 2020. It is unlikely that cities with such a rapid population growth will satisfy demands for increased services given the economic difficulties of many developing countries, including their backbreaking debt. It is fairly easy to predict some alarming consequences of this irreversible process of unprecedented urbanization. Most cities will be confronted with enormous challenges, including mass poverty, unemployment and environmental degeneration. In addition, most cities will be left with inadequate financial and political power to provide social and economic services for their residents, such as education, health, housing and urban transport. Such a scenario calls for innovative governance and management approaches to solve the complex problems confronting urban centers in developing countries (UNCHS, 1987; World Bank, 1995; Davey, et.al., 1997).

Addis Ababa is a fast growing urban center that is beset with problems afflicting most cities in the developing world, including extensive urban poverty, joblessness, inadequate housing, severe overcrowding and congestion and undeveloped physical infrastructure. Moreover, mounting social ills, such as prostitution, beggary, homelessness and youth delinquency are grim realities of life in the city. In recent years, urban problems in Addis Ababa have been compounded by poor urban management that has not been sufficiently responsive to its constituency. The crumbling infrastructure and the precipitous decline in urban services are manifestations of the governance and management crisis plaguing the city. The city is in need of competent management that can address the problems and concerns of its residents.

 

The problems of Addis Ababa are two fold. First, there is little awareness on the part of the municipality’s leadership of the core functions and responsibilities that a modern city government should undertake. In other words, the city administration does not seem to have a mission or a vision. Second, the current governance and management structure of the city is highly politicized. The city’s multiple identity as the federal capital, the capital city of the Regional State of Oromia and its status as a self-governing local authority are contributing factors to the politicization of its governance. More important, most of the people in positions of authority within the administration of the city got their positions not by their merit or through professional competence hut because of their political allegiance. As such, there is little room for professional urban management and leadership. This phenomenon has produced two inter-related and mutually reinforcing consequences, viz, a fast deteriorating Addis Ababa and an urban government with little accountability to the residents.

 

This is a discussion paper on the governance and management of the city of Addis Ababa. Its objective is to suggest policy options to improve the governance and management of the city, and enhance its institutional capacity to solve its major problems. The paper has seven parts. Part I is an introduction. Part II provides general background information about the city of Addis Ababa. Part III surveys the main socio-economic and infrastructure problems of the city. Part IV presents a brief conceptual review of the tasks of urban governance and alternative organization models for city government. In part V. the state of urban governance and management in Addis Ababa will be assessed within the framework of the theoretical discussion provided in part IV. Suggestions and recommendations to improve the overall organization and management of the city are discussed in part VI. Part VII contains the conclusion and summary.

 

II.  Background Information About Addis Ababa

 

The city of Addis Ababa is over a hundred years old. It was established in the late 19th century by Emperor Menelik II as the permanent capital of the then emerging modern Ethiopian state. Over the years, the city has grown into an important urban center following the process of modernization and economic development which Emperor Haile Selassie I zealously pursued in the aftermath of World War II. The city covers a total area of 540 square kilometers. This is roughly the size of the city state of Singapore with about 2.5 million inhabitants or half the size of Hong Kong with a little more than 5 million citizens. Out of Ethiopia’s estimated urban population of nearly 9 million, about 27 per cent of the total lives in Addis Ababa, and this qualifies the city as the country’s foremost urban center (CSA, 1998).

Prior to 1974, Addis Ababa was one of the few chartered cities of the Empire of Ethiopia administered by a lord mayor (kantiba) appointed by the Emperor.’ It had considerable local autonomy because the lord mayor was largely free from the political control of the then powerful Minister of interior. In addition, it was the only local government authority empowered to finance projects by issuing its own bonds and borrowing from internal and external sources on its own right. The municipality had a 30-member law-making council. This council consisted of 8 government officials appointed by their respective ministries and 22 elected members from the residents of the city (2 councilors from each of the 10 weredas). Only residents who owned immovable property could elect and be elected for council membership. This stood out as a manifestation of the undemocratic character of the city’s governance. Nevertheless, it needs to be pointed out that Addis Ababa qualified as a properly governed and well-managed city judging by the broad powers and legitimate functions given to it by imperial charter (AACC, 1954; Koehn, 1974).

 

In 1999, Addis Ababa had a population of nearly 2.5 million, out of which about 87 per cent were Christians, 13 per cent were Moslems and the rest followed different religions. As the data in Table 1 indicate, the city’s population has been growing at annual rate of 3 per cent between 1994-1999. Migration from other parts of the country and people displaced by ethnic conflict, famine and poverty have added to the increase in population.

                                     Table 1:

Growth of Population of Addis Ababa  1994-2000

Year                                       Male               Female    Total
1994           1,023,452         1,089,285             2,112,737
1995          1,045,000         1,112,000             2,157,000
1996          1,074,000         1,146,000             2,220,000
1997          1,105,000         1,181,000             2,286,000
1998          1,136,000         1,218,000             2,354,000
1999          1,132,000         1,292,000             2,424,000
2000          1,202,000         1,293,000             2,495,000

                    Source: CSA, Statistical Abstract, 1998.

 

In terms of ethnic composition, the breakdown of Addis Ababa’s total population is as follows: about 48.3 per cent are Amharas, 19 per cent are Oromos, 17.5 per cent are Guraghes, 7.6 per cent are Tigreans and the remaining belong to other ethnic groups. Based on data obtained from the municipality, the city’s economically active population is estimated to be about 600,000 representing nearly 24 per cent of the total. This figure does not favorably compare with the 37 per cent dependency ratio for the city’s population as a whole (CSA, 1999)

 

The coming to power of the Derg in 1974 significantly affected Addis Ababa in a number of ways. It lost a great measure of municipal autonomy and its administration was very much influenced by the politics of the day. The appointment of the mayor and other officials took a significant political dimension because membership of the ruling Workers Party of Ethiopia became an essential condition for employment in the municipality. Most of the people who worked in the city’s 25 Higher and lower kebeles were either Party members or trusted individuals of the state. As a result, upward accountability dominated the modus operandi of municipal government, and the city was run by amateurish politicians rather than a competent cadre of professional managers. This legacy has persisted to this day and is one of the main factors accounting for the deteriorating quality of urban governance in Addis Ababa.

 

Apart from the politicization of its bureaucracy, Addis Ababa’s revenue base suffered a severe setback following the nationalization of urban land and rental houses that took place in 1975. This measure deprived the city of the lucrative property tax. An indication of the latter’s significance was the fact that between 1969-1972 more than a third of Addis Ababa’s revenue came from building and land tax. Over the years, Addis Ababa has continued to suffer from the consequences of the Derg’s urban land policy which was an ideologically motivated measure. It dealt a heavy blow to the municipality’s financial self-sufficiency and thus crippled its capacity to expand services and infrastructure in the city (Koehn, 1974).

 

Municipalities are not recognized as distinct and separate institutions of local governance in the on-going decentralization process in Ethiopia. An indication of this observation is the fact that municipal administration is not mentioned either in the constitutions of regional governments or the constitution of the Federal Government of Ethiopia. At present, the majority of municipalities and urban centers in the country are administered by zonal and wereda councils, which are also made responsible for administering rural areas. Most often, these councils are dominated by people with rural background and have limited expertise in urban management and policy making. Despite the fact that urban areas should be administered differently from rural ones, the leaderships of these councils do not make a distinction between rural areas and municipalities. As such, urban management receives low priority and limited resources to solve the socio-economic problems of cities and municipalities in Ethiopia (Meheret, 1998).

 

Recently, there have been some attempts in the Amhara National Regional State (ANRS) to set up autonomous urban administrations. For example, Bahir Dar has been recognized as the regional capital and a special zone by the regional government. Such moves are indicative of the increasing awareness of the distinct identity and problems of urban areas. If most regions continue to use same zonal and wereda councils to administer both urban and rural areas, there will be very little attempt at both the federal and regional levels to come to grips with the serious challenges and problems of urban management in Ethiopia (UDSS-GTZ, 1999).

 

Since 1997, Addis Ababa has been designated a chartered city government with considerable degree of self-rule. It has also been declared the capital Of the Federal Government of Ethiopia. It has been organized as a multi-purpose local authority embracing 24 functions with their own sectoral bureaus and large numbers of employees. The diversity of functions has made the city’s bureaucracy too cumbersome and unwieldy for efficient operations. According to data obtained from the Civil Service Bureau, the city government had more than 21,600 permanent employees in 1998 out of which about 48 per cent were female employees. Table 2 presents the total municipal labor force of Addis Ababa by levels of education and training.

 

The Addis Ababa City Government Charter Proclamation No. 3711997 provides for an elected council to administer the city for a term of five years. In 1998, the council had 96 members. The main function of the council is to make municipal laws and approve the annual budget. There is an executive committee of 15 members drawn from the full council. This body is responsible for the day-to-day management of the city. The head of the city government is the chairman of the general council and its executive committee. The executive committee is further sub-divided into three standing sub­committees, namely economic, social affairs and administration. These sub-committees have five members each and all of them report to the executive committee. It is stipulated in the law that the governor of the city and the council will be accountable to the residents and the Prime Minister of the Federal Government.

 

 

 

 

Table 2

Number of Addis Ababa City Government Employees by Level of Education--19971 1998:

Level of Education

Number of Employees

Total

Male                                Female

0-8 Grade

2339

2550

4889

9-12 Grade

2330

2882

5212

Grade 12 + Diploma

4008

3998

7996

B.A. / BSc Degree

1954

458

2412

Masters Degree

201

56

257

Post-Masters and Others

507

398

905

Total

11339

10332

21671

Source: Region 14 Civil Service Bureau, Addis Ababa, 1998.

 

Addis Ababa’s governance structure fuses legislative and executive responsibilities in the same body because the elected council formulates policies and laws and its executive organ implements the same. Three tiers of administration are recognized in the Charter, viz. the central city administration, Weredas and Kebeles. Based on this, the city is divided into 6 zones, 28 weredas and 328 kebeles, out of which 23 are classified as rural localities. There is no mention of zones in the charter and their roles and functions remain unclear although in practice the municipal administration often uses them as coordinating administrative structures over a number of weredas. The zonal administration is manned by officers appointed by the central administration of the municipality. Figure 1 depicts the organizational structure of the city government of Addis Ababa (Proclamation No. 87/1997).

 

FIGURE 1

ORGANIZATIONAL STRUCTURE OF THE CITY GOVERNMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Following the coming to power of the EPRDF in 1991, the city of Addis Ababa assumed a multiple identity. First, it was declared the capital city of the Federal Government of Ethiopia in 1995. Second, it serves as the seat of government of the Oromia Regional State2. Third, it is also an autonomous local government authority in the Ethiopian federal system of government with an elected council and city governor answerable to the residents. From a management perspective, Addis Ababa’s multiple status has made it difficult to clearly determine the formal lines of responsibility. More importantly, the organizational overlap has compelled the city to assume conflicting roles. Such a situation has had serious implications for the effective governance and management of Ethiopia’s major metropolis. Among other things, the municipality’s management continues to suffer from the problem of divided loyalty and thus has been unable to devote its full attention to reversing the general deterioration in the urban quality of life.

 

It will be argued in this paper that Addis Ababa’s multiple identity is a critical factor affecting the city s governance and management. The contention is that the management of the city has not been responsive to the needs and problems of the residents mainly because it has to balance between its accountability to the federal government, the Oromia regional government and the electorate. In this power equation, the electorate is the least served especially when nearly all the municipal councilors are members of the ruling Party and are likely to owe more allegiance to the party than to the public who elected them. Clearly, this kind of political arrangement compromises the disposition of the city’s leadership in favor of upward accountability and relegates the needs and concerns of the residents to a secondary status. The following discussion is a concrete manifestation of this reality.

 

III. Socio-Economic Problems of Addis Ababa

 

The city of Addis Ababa suffers from a chronic shortage of essential socio-economic services, an awfully inadequate physical infrastructure and an unhealthy environmental condition. An inept administration that has failed to maintain, upgrade and expand the city’s infrastructure and services in line with the growing population and economic activity has exacerbated its woes. There is no dearth of statistics to indicate the magnitude of urban problems in Addis Ababa. Some discussion about the city’s bleak socio-economic condition is in order before forwarding helpful suggestions to resolve the insurmountable problems the residents are experiencing. Most of the following discussion is based on data obtained from two municipal documents.

 

Inadequate Water Supply

 

One of the perpetual problems of the city of Addis Ababa is that it has not been able to supply enough drinking water to the residents. The Addis Ababa Water Supply and Sewerage Authority (AAWSSA) can supply only 60 per cent of the current demand for water in the city, and this has caused severe water shortages in many parts of the city, especially during the dry season. It is estimated that between 30-40 percent of the potential water supply does not reach the consumer and is wasted due to leaking pipes and aging distribution infrastructure. As a result, rations and interruptions in the water distribution system are frequently experienced causing agonies to many Addis Ababans.

 

Inadequate Refuse Collection and Solid Waste Management System

 

The state of refuse collection and solid waste management in the city is most deplorable. An estimated 35-40 per cent of the solid waste generated is left uncollected and dumped on any available waste ground. Hence, it is not uncommon to see mountains of garbage and solid waste blocking sidewalks and streets in many parts of the city. Apart from being eyesores to the residents and visitors of the city, the health hazards of such unsanitary conditions can indeed be incalculable (AAMPPO, 1994).

Addis Ababa has an inadequate drainage and sewerage treatment system. This is one indicator of the extremely low level of development of physical infrastructure of the city. By the municipality’s admission, the city is served by a sewerage network that is 110 Kms long and most of this is confined to the central parts of the city. This represents only 3.7 per cent of the total requirement for the city as a whole. Based on this figure, it means that a minuscule 5 per cent of Addis Ababans is served by some kind of sewerage and drainage system.

 

Primitive Sanitary Conditions

 

A major problem that contributes to the extremely poor sanitary conditions in the city of Addis Ababa is the shortage of toilets. According to the municipality administration, 16 per cent of the population have private toilets, 54 per cent use shared latrines and about 30 per cent (or some 900 residents) do not have any toilets and are forced to use whatever available open space in the city. The lack of enough toilets is a major factor contributing to the deteriorating sanitary condition in the city, particularly in overcrowded areas inhabited by the poor segment of the urban population. Given Addis Ababa’s sizable homeless population, including street children and the increasing number of poor people and beggars in the city, the question of providing sufficient public toilets facilities is of crucial significance.

 

Sanitary conditions and services are inadequate or non-existent in many areas of the city. For example, the severe shortage of public toilet facilities in the entire Merkato area with a population of more than a million people is a case in point. Extremely hazardous sanitary conditions with raw sewerage coming out of residential houses and factories are commonly encountered problems in the city. Collected excreta and garbage are often transported in unhygienic conditions and dumped on the periphery of the city or in the nearest refuse site without any treatment. Households with little technical orientation often install pit latrines everywhere and the usual consequence is pollution of the environment and surface and ground water.

 

A major health risk looms over Addis Ababa because the municipality has virtually ignored its responsibility for public health and sanitation. It has failed to control the movements of stray dogs, pack animals and cattle roaming the city. For example, it is not uncommon to see a pack of stray dogs wandering in many places in the city or stray cattle feeding from collected piles of garbage. In addition to the potential health risk to the community, the unregulated movement of the city’s animal population causes a great deal of inconvenience and nuisance to the residents on a daily basis. Donkeys carrying loads of grain or firewood jamming traffic and street and homeless children living and sleeping with stray dogs are common sites in Addis Ababa reminiscent of pre-industrial cities in Europe.

 

The Transport and Road Nightmare

 

Driving on the streets of Addis Ababa is a nightmarish experience because of the traffic congestion and hazardous driving conditions on account of the extremely poor quality of roads. One report puts the length of Addis Ababa’s asphalt road network at 400 kms. It is estimated that a city of its size requires 3000 kms of asphalted road. Because of poor planning, city streets are narrow, poorly maintained and shared by cars, pedestrians, donkeys, sheep and goats. For lack of regular maintenance, most streets are fast changing to gravel roads. In addition, the city does not have sufficient parking space and drivers wantonly park their cars on sidewalks causing traffic jams and a great deal of inconvenience to pedestrians. There is obviously an urgent need for improving the road system because of the increasing volume of traffic. Nevertheless, the city has been unable to properly maintain the existing infrastructure let alone build new roads to meet the demand.

 

 

Shortage of Residential Housing and Overcrowding

 

Addis Ababa has an acute shortage of residential housing which has resulted in severe congestion and overcrowding. According to data obtained from the municipality, the total housing stock in Addis Ababa was 350,000 in 1996. Out of this, 112,000 were occupied by businesses and shops; and 238,000 were residential units. The number of households was estimated to be 460,000 during the same year. This would mean that 222,000 households or nearly 1,000,000 residents lack decent housing. The huge gap between the supply and demand for housing has led to illegal housing construction and squatter settlements in many places throughout the city’s jurisdiction (AACG, 1997).

 

There is a huge gap between the housing need and the supply in Addis Ababa. According to one study, the government has to build 10,000 housing units every year for the next 10 years at a cost of 750 million Birr in order to meet only the backlog demand for housing in Addis Ababa. This projection does not take into account the growing demand for housing due to population growth. The housing shortage is exacerbated by Ethiopia’s low investment in the housing industry. It is reported that the country’s investment in urban and rural housing construction is below 3 per cent of GDP. Compared to the 6 per cent recommended by the UN for developing countries, Ethiopia’s investment is not likely to make much difference in easing the problem (Gutama, 1994; Region 14 WUDB, 1996).

 

Only a third of Addis Ababa’s housing stock is owner-occupied, the rest being owned by the government. More than three-fourths of the existing housing units are either dilapidated or old, and need major repairs. Most houses are of sub-standard quality built from traditional building materials, mainly from mud and wood. The majority of the poor neighborhoods are densely populated (400-700 persons/ha.), in many of them there are no paved roads, sewerage and drainage systems; and modem waste disposal and collection arrangements are also unavailable (TGE-CSA, 1994).

 

Other Socio-Economic Problems

 

There are additional grim statistics to depict the severity of Addis Ababa’s social and economic problems. For example, unemployment in the city is running at an average of 30-35 percent. 35.5 per cent of Addis Ababans do not earn sufficient income to cover their food requirements and thus qualify as absolutely poor. Addis Ababa has a street population of 40,000 children or nearly 40 per cent of the nation’s total homeless children. According to some estimates, this population increases at the rate of 5 per cent per year (UNICEF, 1996; Region 14 Administration, 1998).

 

It will require immense resources to solve the socio-economic problems discussed above and to improve the quality of life of the residents of Addis Ababa. The full force and commitment of the federal government is required if the city is to overcome the pressing problems most residents face on a daily basis. Much of Addis Ababa’s grim socio-economic data also underscores the need for competent and responsive municipal governance to solve the seemingly insurmountable problems that Ethiopia’s foremost city is facing.

 

In summary, Addis Ababa faces problems of governance and accountability that arise from its multiple status. It also faces many organizational and management problems that have affected its capacity to serve the residents. It is proper to review some conceptual issues in urban governance and management before discussing the management and organizational constraints of the city government.

 

 

IV.  Theoretical Discussion

 

As was noted earlier, the purpose of this paper is to assess the governance and management of the city of Addis Ababa within a theoretical framework. Hence, the following theoretical review of the tasks of urban governance and models of city management is provided to serve as a conceptual framework within which the city’s performance and problems will be analyzed. In addition, this discussion is also aimed at identifying practical suggestions to ease urban problems in Addis Ababa.

 

Nature and Task of Urban Governance

 

It is necessary to have a working definition of the term ‘urban governance’ in order to assess the current state of urban management in Addis Ababa. The term ‘urban governance’ is used to refer to both the institutions that are involved in the running of urban governments as well as the major tasks performed by these institutions. The institutions referred to are the network of government and non-government organizations operating in urban areas, including central, state, and provincial governments, municipal authorities, public utility corporations, and a wide array of institutions of civil society, such as private businesses, professional and trade associations, voluntary and community organizations (Castells. 1983; Mbaogunje, 1990; Davey, 1997). The term also embraces the functions conducted by governmental and non-governmental organizations in an urban setting. Broadly, the functions relate to the supervision, financing, planning and execution of socio-economic policies by the nexus of organizations in urban areas. Specifically, these policies emphasize the following:

 

     Providing infrastructure essential to the efficient operation of cities;

     Providing services that develop human resources, improve productivity and raise the standard of living of urban residents;

     Regulating private activities that affect community welfare and the health and safety of the urban population;

     Providing services and facilities that support productive activities and allow private enterprise to operate efficient