LocationsChoices made today in Asia-Pacific will affect billions in the decades to come
The challenges and opportunities of rapid urban expansion
October 29, 2025
While Asia-Pacific cities have become engines of economic growth and innovation, they are also exposed to climate risks, deepening inequality and infrastructure deficits.
Photo: Brijender Dua
Asia-Pacific’s cities are projected to grow from 2.48 billion residents in 2023 to 3.38 billion by 2050—an increase of 900 million people. A new UNDP report warns that the region’s urban future hinges on one critical factor: strong governance.
In recent years, the Asia-Pacific region has shifted from predominantly rural to predominantly urban. By 2050, nearly one billion more people are expected to live in the region’s cities. Much of this growth will occur in countries still developing their urban systems, underscoring the urgency of acting now to shape a sustainable and inclusive future for urban development. A new report, Rethinking Urban Governance for Tomorrow’s Cities in Asia-Pacific, reveals the urgent challenges that also bring about extraordinary opportunities.
The report highlights that while cities have become engines of economic growth and innovation, they are also at the frontline of climate risks, deepening inequality and infrastructure deficits. More than one billion people in the region still lack safe, inclusive and resilient urban environments, with marginalized communities in informal settlements facing the greatest vulnerabilities.
Many cities are hamstrung by outdated governance models, limited fiscal autonomy and fragmented authority. On average, Asia-Pacific cities operate with less than 10 percent fiscal independence, severely restricting their ability to invest in infrastructure, climate adaptation and inclusive services. Over 60 percent of urban residents are exposed to extreme weather events, with marginalized communities facing the greatest risks. In some cities, up to 70 percent of the workforce is informal, often lacking social protection or secure livelihoods.
“Governance will be the make-or-break factor. Where governance is weak, inequality grows and services falter. Where it is strong, cities can advance equitable development, build resilience and unlock long-term prosperity.”
- Kanni Wignaraja, UN Assistant Secretary-General and Director of UNDP’s Regional Bureau for Asia and the Pacific
Governance marked by visionary leadership, effective and agile institutions, citizen engagement and innovative finance is helping Asia-Pacific cities chart new paths.
Photo: Chaojie Ni
Urban governance innovation
Despite these challenges, the report showcases innovative governance marked by visionary leadership, effective and agile institutions, citizen engagement and innovative finance, which is helping cities chart new paths.
- Bangkok: Digital governance in action. In Bangkok, the Traffy Fondue platform is transforming city management. Residents can report issues like waste or flooding in real time, with complaints routed directly to the right department. Since its launch, response times have dropped by more than 90 percent, and over 700,000 issues have been resolved. The strong engagement of the platform has also enabled authorities to quickly respond to the damages caused by the March 2025 earthquake. The platform’s success is credited to strong political leadership and a commitment to transparency, showing how digital tools can make governance more responsive and participatory.
- Beijing: Coordinated policy for clean air. Beijing’s Clean Air Action Plan demonstrates the power of coordinated, accountable governance. By integrating strict regulations, real-time monitoring and regional cooperation, the city cut fine particle pollution by 66 percent in a decade. The plan linked environmental outcomes to the performance of local officials and engaged citizens through open data, setting a new standard for urban environmental management.
- Ahmedabad: Smart city, smart governance. Ahmedabad, India, tackled infrastructure and service delivery gaps through its Smart City initiative. The city established an Integrated Command and Control Centre, connecting over 30,000 smart devices to monitor traffic, waste and utilities. Finance combining government grants, municipal bonds, and public-private partnerships funded projects from smart toilets to slum redevelopment. Participatory planning campaigns ensured that citizen voices shaped priorities, making governance both high-tech and inclusive.
- Iloilo: Nature-based solutions and collaborative leadership. In the Philippines, Iloilo City’s River Esplanade project converted a polluted waterway into the country’s largest linear park. The initiative relocated thousands of informal settlers to better housing, restored mangroves and improved flood protection. The project’s success is rooted in collaborative governance, with local authorities, communities and the private sector working together.
Expanding fiscal autonomy, transparent government, and prioritizing nature-based solutions and inclusive planning can help make Asia Pacific’s burgeoning cities livable for all their residents.
Photo: Falaq Lazuardi
Governance is key to progress
The report concludes that the future of the region's cities will be determined not just by technology or investment, but by the quality of governance. It proposes a set of key actions: expanding fiscal autonomy so cities can invest in infrastructure and services; embedding digital platforms and open data to make governance more transparent and accountable; linking environmental and social targets to the performance of city officials; prioritizing nature-based solutions and inclusive planning, especially for vulnerable communities; and building partnerships across government, civil society and business to expand what works. These steps are essential for cities to move from crisis management to long-term, sustainable transformation.
Putting vision into action
UNDP is helping cities and urban leaders to turn challenges into opportunities. Since 2023, more than 100 city leaders have joined UNDP’s Leadership for the Future dialogue.
In 2025 alone, UNDP has supported over 10 cities and states from the Philippines, India, Thailand, to Vietnam, embedding foresight and systems thinking into urban planning and climate action plans. In Bangladesh, UNDP’s work has built climate resilience for four million urban poor in 19 cities.
Looking ahead, UNDP aims to help 30 more cities craft future-ready policies, empower over one million people to create solutions, and leverage more than US$100 million in public and private co-financing for low-carbon, inclusive urban transformation—all to ensure cities remain engines of progress, not inequality
As urbanization accelerates, the report argues that cities must move beyond reactive, project-based approaches and embrace anticipatory, adaptive and agile governance. The choices made today will shape the lives of billions in the decades to come.
Read the full report here.
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