Daniel Madariaga. Latin America and the Caribbean (LAC) are the most urbanized developing region in the world, with 80% of the population living in cities.
This trend has been especially pronounced in recent decades. Between 1950 and 2014, urbanization in the region accelerated, increasing the urban population from 50% to 80%, and it is projected to reach 86% by 2050.
According to the World Bank, this rapid urbanization presents both opportunities and challenges. While urban areas serve as hubs for economic growth and social mobility, they also face significant issues related to infrastructure, basic services, and sustainability.
A particular phenomenon in LAC is the rise of intermediate cities. Over the past two decades, both population and economic growth have become concentrated in these urban centers, which are undergoing rapid expansion.
The United Nations Economic Commission for Latin America and the Caribbean (CEPAL, in Spanish) reported that in 2020, over half of the region’s urban population lived in intermediate-sized cities—making them essential for LAC’s sustainable development.
Citizenship and Sustainability
In response to this reality, the Emerging and Sustainable Cities Program (ESC) of the Inter-American Development Bank (IDB) has become a key tool.
This program offers non-reimbursable technical assistance, supporting national and subnational governments in designing and implementing action plans for sustainable urban development. Its multidisciplinary approach allows for the identification, organization, and prioritization of necessary urban interventions to address the challenges faced by emerging cities.
The ESC approach is built on three essential pillars:
1.Environmental Sustainability and Climate Change: Promoting practices that minimize environmental impact and support climate change adaptation. A 2021 study by the International Monetary Fund (IMF) recommended that investments in green infrastructure could reduce disaster-related costs by up to 21%.
2. Urban Sustainability: Integrating urban planning with a focus on quality of life, accessibility, and social inclusion. A CEPAL analysis highlights that improving urban infrastructure can raise well-being by up to 30% in intermediate cities.
3. Fiscal Sustainability and Governance: Fostering effective and fiscally sustainable governance to ensure the implementation of efficient public policies. Proper fiscal management is essential to guarantee the continuity and impact of urban programs.
The accelerated urbanization of Latin America and the Caribbean presents both major opportunities and complex challenges. The Emerging and Sustainable Cities Program demonstrates how urban development in the region can be strategically addressed to ensure sustainability in all its dimensions.
As the urban population continues to grow, it is imperative that governments and communities take a proactive approach to urban planning and policy execution.
The transition toward more sustainable cities in LAC is not only vital for the quality of life of their residents, but also crucial for the ecological well-being of the planet. A renewed commitment to sustainability can pave the way for a future where emerging cities not only accommodate millions of people but also thrive in harmony with their environment.
In this context, all members of society have a critical role to play in building a resilient and sustainable urban future.
From vertical farming to green mobility, Daniel Madariaga drives sustainable change in Mexico. An EGADE graduate, he leads efforts in ecological innovation, recycling, and responsible tourism.