Deputy State Secretary of Foreign Affairs János Hóvári’s Address to the 13th Annual Conference of Global Development Network Hungarian Academy of Sciences, June 16, 2012.

Ladies and Gentlemen, Excellencies,
Mr Chairman, dear Guests,
I would like to welcome you wholeheartedly to Budapest for the 13th annual global development conference, dedicated to exploring the link between urbanization and development. We are happy and honoured to host this conference organized by the Global Development Network and the Central European University.

The Global Development Network performs a unique and vital task by advancing academic exchanges on issues related to development policy, and provides an important platform to discuss many of the most pressing global issues. Hungary fully aligns itself with the objectives of GDN. Therefore we are particularly happy to host this event, as taking a more proactive role in global affairs is also an explicit aim of the new Hungarian foreign policy.

Indeed, one of the most important changes in our new foreign policy strategy that has been recently adopted is that it puts huge emphasis on increased global awareness as an overarching goal; global opening – as we refer to it. While implementing this goal we strive to play a more active role in dealing with global issues and challenges.

Let me also take this opportunity to inform you that Hungary plans to become a member of the GDN family. We are currently performing the necessary internal procedures required for that.

Ladies and Gentlemen,
The fast-changing world we live in today is increasingly multi polar. The influence of non-state actors is becoming more important. We are also more and more connected and the issues we are facing are increasingly global in character. The fact that the Global Development Network links scientists and academia from across the globe provides a great opportunity to address global challenges.

You will dedicate the next few days to discussing the implications of urbanisation on development. Urbanization and development are linked in complex ways. As countries develop economically a larger and larger share of the population lives in urban centres. Cities become simultaneously the sources of new social problems and solutions to pressing problems.

Urbanization is becoming one of the most important global issues. For the first time in human history more than half of all people live in cities. 

Beyond the challenges of running adequate social services for the people concentrated in these so called „millionaire” cities – the future of our planet is shaped by the emergence of global cities. There are a number of cities whose economies are comparable in size to some of the G20 countries. These cities act as economic super powers on the global stage and are becoming international actors themselves.

The geography of wealth distribution is changing and with it the dividing lines between those who benefit from development and those who are left behind are less defined by national boundaries and more by their place in this new emerging global urban system. Downtown Bangalore, Sao Paulo, or Shanghai feel closer to Manhattan than to their immediate surroundings. A key policy question discussed in the coming days in your conference as well is how to replicate the amazing success of these cities and expand the area of relative wealth and the resulting better quality of life to improve the well-being of those who are left outside these mega centres. What we need to achieve globally is however a more inclusive, pro- poor urban development. As you will discuss policies that promote growth and wealth creation in global cities, it is important to remember that the other half of the global population still lives in rural areas and the bulk of urbanites live and will continue to live in smaller, second and third tier cities.

The proportion and the absolute number of city dwellers will keep on rising. By 2030 over 60% of us will have become city dwellers. Much of the driving force of global urbanization in the next decade will concentrate in Africa and Asia.  Most of the growth will take place in smaller towns.

The challenges urban areas face across the globe are highly differentiated, problems are not the same everywhere. Not all aspects of the success in urban planning are relevant for all parts of the world. Nonetheless, I am convinced that we can all learn from each other.  One of the key challenges we need to address is to identify what lessons can be drawn that help define sustainability in terms applicable for newly urbanizing areas.

Ladies and Gentlemen,
As the world is about to gather for the RIO+20 global summit on sustainable development, let me refer briefly to one crucial aspect of urbanisation, the impact of climate change.  Cities are both exposed to the risks of climate and are sources of climate change.  The battle for the mitigation of adverse effects of climate change will be also decided in cities. Cities occupy a tiny portion of the earth’s landmass, but have an enormous environmental impact. Cities consume over 75% of the world’s energy and are responsible for over two thirds of global greenhouse gas emissions. Climate change at the same time poses a real threat to cities’ development and competitiveness. 90% of urban areas in the world are located near coastlines making them especially vulnerable.

But let us not forget that when we talk about sustainability, we must not limit ourselves to environmental sustainability. Urban planning decisions have major long term impacts on social and economic development of a society. This is a lesson that is particularly pertinent in areas of the world undergoing rapid urbanisation. Perhaps more than anywhere else, long term and sustainable economic growth of cities is closely tied to subjective well-being. This, in turn, also requires openness, inclusiveness and education promoting a culture of tolerance and mutual understanding. We cannot talk of social sustainability, without equitable access to urban amenities and opportunities, such as education and jobs; these are critical challenges for urban sustainability.

Access to clean water and sanitation are likewise critical for pro-poor growth. I highlight this aspect in particular, as this is one of the main focal areas of Hungary’s development cooperation policy. We have been advocating strongly, including during our recent EU Presidency, a more complex consideration of the water and development nexus. Hungary, which is now a high-income EU country, had its own transition process during the last decades. Being abundant in water resources, sustainable water management has traditionally been important for us. We are now promoting the importance and role of water in all international for a, and we are ready to share our experience and contribute to the international policy dialogue.

Ladies and Gentlemen,
Our global future lies in urban innovation and policy actions. So as the majority of humans will live in cities, solutions to our most pressing global problems will also reside in these urban areas.  Your work in the forthcoming days here in Budapest will contribute greatly to the work of how to plan urban development better and how to facilitate a better urban quality of life and wellbeing for all.

I wish you a productive conference and a good urban experience in Budapest, not only here at the university but outside the conference venue as well.

(Ministry of Foreign Affairs)