OECD Urban Policy Reviews CHILE Contents OECD Urban Policy Reviews Assessment and recommendations Chapter 1. The Chilean urban system and its challenges CHILE Chapter 2. Frameworks and sector policies for urban development in Chile Chapter 3. Revitalising Chile’s urban governance architecture O E C D U r b a n P o lic y R e v ie w s C H Consult this publication on line at http://dx.doi.org/10.1787/9789264191808-en. IL E This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information. 2013 ISBN 978-92-64-19179-2 -:HSTCQE=V^V\^W: 04 2013 02 1 P OECD Urban Policy Reviews Chile 2013 This work is published on the responsibility of the Secretary-General of the OECD.The opinionsexpressedandargumentsemployedhereindonotnecessarilyreflecttheofficial viewsoftheOrganisationorofthegovernmentsofitsmembercountries. 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FOREWORD Foreword U rbanissueshaveemergedaskeyfeaturesonnationalpolicyagendas.Theimportanceofcities andtheircorrespondingmetropolitanareastothenationaleconomymakesthemcriticalplayersin theinternationalmarketplace.Thisinturnleadsgovernmentstorenewtheirsupporttocities.Ata time of increasing globalisation and international competition for investment, urban regions have becomethefocusofawiderangeofpublicinterventions.ThroughoutOECDmembercountries,these policies encompass plans to solve traditional urban problems –urban sprawl, abandoned districts and poverty– and newer issues such as competitiveness strategy, city marketing, environmental sustainabilityandinnovation. TheseriesonUrbanPolicyReviewsrespondstoademandfromOECDmembercountriesvoiced atmeetingsoftheTerritorialDevelopmentPolicyCommitteeandaimstoanalysetheroleofurban areasinregionaldevelopmentandnationalperformance.Nationalreviewsarealeadingfeatureof the OECD’s mandate to examine macroeconomic, educational, industrial, tax, environmental and regionaldevelopmentpolicies,inadditiontootherareasofinteresttotheOrganisation.TheOECD UrbanPolicyReviewsseektoprovideacomparativesynthesisofurbanpoliciesinOECDcountries, focusingontheroleofcentralgovernments. AnUrbanPolicyReviewprovidesacomprehensiveassessmentofacountry’surbanpoliciesas seenthroughmultiplelenses,includingeconomic,socialandenvironmental.First,thereviewsfocus on the policies designed and introduced by the central government that directly address urban development and regional development policies with an urban development focus. Second, the reviews analyse how national spatial planning for urban regions, along with specific sectoral policies, impact urban development, directly and indirectly. Often, public policies are designed to targetsectoralobjectiveswithlittleornoregardfortheirprofoundimpactonurbanareas,andthe means available to implement policies at the local level. Third, the reviews address issues of governance, including inter-governmental fiscal relationships and the various institutional, fiscal and policy tools aimed at fostering co-ordinated urban development among different levels of government and different administrations at the central level. For example, reducing the fragmentationamongurbangovernancestructurescanhelpenhanceeffectivenessandoutcomesin public service delivery and other policy areas. From country to country, the OECD Urban Policy Reviews follow a consistent methodology that features cross-national comparisons and recommendationsontheintegrationofsectoralpoliciesintourbandevelopmentpolicy,planningand management. OECDURBANPOLICYREVIEWS:CHILE©OECD2013 3 ACKNOWLEDGEMENTS Acknowledgements T he OECD Urban Policy Review of Chile is part of a series of OECD Urban Policy Reviews produced by the OECD Public Governance andTerritorial Development Directorate (GOV) anditsRegionalPolicyDivisionledbyJoaquimOliveiraMartins,undertheauspicesofthe OECDTerritorialDevelopmentPolicyCommitteeanditsWorkingPartyonUrbanPolicy. The OECD Secretariat is grateful to the Secretariat for Regional Development and Administration (Subsecretaría de Desarrollo Regional y Administrativo, SUBDERE) in Chile’s Ministry of Interior and Public Security and to the Ministry of Housing and Urbanism for theiractivesupportinthisreview.Invaluableinsightwasalsoprovidedbyawiderangeof central,sub-nationalandotherpublicinstitutionsaswellascivilsocietyorganisationsin Chile. Special thanks are given to the international peer reviewers, Anne-MarieRomera (Directricedel’économieetdudéveloppementlocalattheInstitutd’aménagementetd’urbanismeof Ile-de-France, France) and PiotrZuber (Director, Department of Structural Co-ordination, Ministry of Regional Development, Poland), for their insight and participation while on missiontoChileandthroughoutthereviewprocess. This report was drafted by IoannisKaplanis, M.Varinia Michalun, AlexisRobert and JavierSanchez-Reaza. It benefited from thematic contributions by DavidGierten, CarlosIcazaLaraandIstarVignal,andfromcommentsandinputbyMarioMarcel,Deputy DirectoroftheOECDPublicGovernanceandTerritorialDevelopmentDirectorate,andfrom WilliamTompson. The report draws on key contributions from EduardoRojas and JuanPabloValenzuela. It was co-ordinated by M.VariniaMichalun, and the manuscript was edited by VictoriaElliott and KateLancaster and prepared for publication by GemmaSheenandCarolThornton. The preparation for this report was co-financed through the Inter-American Development Bank’s Institutional Capacity StrengtheningThematic fund, thanks to a donationbythegovernmentofthePeople’sRepublicofChina. 4 OECDURBANPOLICYREVIEWS:CHILE©OECD2013 TABLEOFCONTENTS Table of contents Acronymsandabbreviations................................................. 9 Assessmentandrecommendations........................................... 13 Chapter1.TheChileanurbansystemanditschallenges......................... 31 Introduction:Chileanditsurbanareas..................................... 32 UrbantrendsinChile.................................................... 41 Economicperformance .................................................. 48 Chile’surbanchallenges ................................................. 57 Conclusions............................................................ 71 Notes.................................................................. 74 Bibliography............................................................ 75 Chapter2.FrameworksandsectorpoliciesforurbandevelopmentinChile ........ 77 Introduction............................................................ 78 Chile’sframeworkforregionalandurbandevelopmentplanning.............. 78 Elaboratingpoliciesintegraltoanationalurbandevelopmentstrategy ......... 93 Conclusions............................................................ 130 Notes.................................................................. 131 Bibliography............................................................ 133 Chapter3.RevitalisingChile’surbangovernancearchitecture .................... 141 Introduction............................................................ 142 Currenturbangovernanceinstitutions:Central,regionalandlocal............. 142 Currenturbangovernanceframeworks:Sub-nationalfinance andcompetenceallocation............................................... 148 Fragmentationintheurbangovernanceframework.......................... 158 Consideringinstitutionalurbanandmetropolitangovernancemodels ......... 162 Reinforcingstrategicplanningframeworksandcapacity ..................... 191 Conclusions............................................................ 201 Notes.................................................................. 202 Bibliography............................................................ 203 Annex3.A1. ............................................................ 207 Tables 1.1. StatisticalandadministrativeunitsinChile............................. 35 1.2. Chile’sfunctionalurbanareasbysize .................................. 37 1.3. FunctionalurbanareasinChilebymunicipality ......................... 39 2.1. StatusoftheMunicipalRegulatingPlans................................ 81 2.2. StatusofInter-municipalandMetropolitanRegulatingPlans .............. 82 OECDURBANPOLICYREVIEWS:CHILE©OECD2013 5 TABLEOFCONTENTS 2.3. StatusoftheRegionalPlansforUrbanDevelopment(PRDU)............... 82 2.4. Flexiblezoningtopromotemixeduse:ThecaseofGermany............... 98 2.5. OverviewofprimaryhousingsubsidiesinChile(2012).................... 106 2.6. Incomedistributionofhousingsubsidybeneficiaries..................... 108 3.1. Own-sourcerevenuegeneratorsinChile................................ 149 3.2. Servicecompetencesummaryforurbanactors.......................... 156 3.3. Publicinstitutionsinterveninginurbanplanningandmanagement........ 162 3.4. Institutionalmodesofmetropolitangovernance......................... 175 3.5. Functionsdelivered/co-ordinatedbymetropolitanregions ................ 175 3.6. Allocationofexpenditureresponsibilitiesinatwo-tiermodel.............. 176 3.A1.1. GovernmentandmainattributionsofChile’ssub-national administrativeunits ................................................. 207 3.A1.2. Allocationofurban-relatedresponsibilitiesacrosslevels ofgovernmentinChile............................................... 208 Figures 1.1. LocationoffunctionalurbanareasinChile.............................. 38 1.2. UrbanisationinOECDandnon-OECDcountries.......................... 41 1.3. ShareofpopulationbytypeofareainChile ............................. 42 1.4. UrbanandruralpopulationinChile.................................... 42 1.5. UrbanisationandcitysizeinOECDcountries............................ 43 1.6. PopulationgrowthinOECDmetropolitanregions ........................ 44 1.7. PopulationgrowthinOECDregions .................................... 45 1.8. UrbanisationinOECDcountries ....................................... 46 1.9. Populationgrowthbyfunctionalurbanarea............................. 46 1.10. DemographicdynamicsinChile’sfunctionalurbanareas ................. 47 1.11. Populationandpopulationgrowthbytypeoffunctionalurbanarea ........ 48 1.12. PopulationgrowthbymunicipalityinChile.............................. 49 1.13. DensityintheSantiagofunctionalurbanarea ........................... 50 1.14. Densitybyfunctionalurbanarea ...................................... 50 1.15. EconomicgrowthinChileanfunctionalurbanareas(2009-11).............. 51 1.16. EconomicgrowthinChileanfunctionalurbanareas(2003-06).............. 52 1.17. Functionalurbanareacontributionstonationalgrowth(2003-06) .......... 53 1.18. SizeanddynamisminOECDpredominantlyurbanareas.................. 53 1.19. Chileanfunctionalurbanareasizeandeconomicgrowth(2009-11)......... 54 1.20. Chileanfunctionalurbanareasizeandeconomicgrowth(2003-06)......... 54 1.21. UrbanpopulationandincomeinOECDcountries ........................ 56 1.22. CitysizeandincomeinChile.......................................... 56 1.23. UrbaninequalityinChileanfunctionalurbanareasandtheOECD.......... 58 1.24. GrowingurbaninequalityamongChileanfunctionalurbanareas .......... 59 1.25. UrbanpovertyinChile ............................................... 59 1.26. Growthinurbanpoverty.............................................. 60 1.27. InitialpovertylevelsandpovertygrowthinChileanfunctionalurbanareas... 60 1.28. HousingstockinOECDcountries ...................................... 62 1.29. HousingstockinChileanfunctionalurbanareas......................... 62 1.30. Growthinhousingstock.............................................. 63 1.31. Socialhousingstock(2009-12)......................................... 64 1.32. TenurestructureinOECDcountries .................................... 64 6 OECDURBANPOLICYREVIEWS:CHILE©OECD2013 TABLEOFCONTENTS 1.33. ResidentialmobilityinOECDcountries................................. 65 1.34. NO emissionsinChileanfunctionalurbanareas(2009)................... 65 x 1.35. SO emissionsinChileanfunctionalurbanareas(2009)................... 66 x 1.36. PM emissionsinChileanfunctionalurbanareas(2009) ................. 66 2.5 1.37. Accesstomunicipallymaintainedgreenareasinfunctionalurbanareas.... 67 1.38. Accesstomunicipallymaintainedgreenareas inSantiagoMetropolitanRegion(2009) ................................. 68 1.39. Correlationbetweenpercapitamunicipalown-sourcerevenue andgreenareasinSantiagofunctionalurbanarea(2009)................... 69 1.40. MunicipalwasteinOECDandBRIICScountries.......................... 70 1.41. MunicipalwastegenerationinChileanfunctionalurbanareas............. 71 1.42. WastewatertreatmentinOECDandnon-OECDcountries.................. 72 2.1. MunicipalRegulatingPlan(PRC)approvalprocess........................ 81 2.2. MunicipalRegulatingPlan(PRC)streamlinedapprovalprocess............. 81 2.3. Illustrationofaproposalforconditionalplanning........................ 96 2.4. Publicspendingonhousingandcommunityamenities ................... 105 2.5. ResidentialmobilityinOECDcountries................................. 110 3.1. Central/regionalinstitutionalreportingstructure ........................ 146 3.2. Sub-centralgovernmenttaxrevenues .................................. 150 3.3. Compositionofsub-centralgovernmenttaxrevenue ..................... 151 3.4. Shareofsub-centralgovernmentsintotalpropertytaxrevenue(2009)...... 151 3.5. CurrenturbanprogramminghierarchyinChile.......................... 199 3.6. Buildingamorecoherenturbanprogramminghierarchy.................. 200 Box 1.1. Differentcriteriafordefiningthegeographicalextentofcities............. 33 1.2. MethodologyfordefiningOECDfunctionalurbanareas................... 35 1.3. DefinitionofurbanareasinChile...................................... 36 1.4. Whatmakesregionsgrow?............................................ 55 1.5. How’sLifeinChile? .................................................. 72 2.1. UrbanplanninginstrumentsinChile................................... 79 2.2. TheprincipalorientationsofPLADECO ................................. 84 2.3. Improvingterritorialco-ordination:ThecaseofPoland ................... 86 2.4. Improvingnationalandsub-nationalcollaboration inurbandevelopmentandmanagementinChile ........................ 90 2.5. Determininglandusewithoutzoning:ThecaseofHouston ............... 96 2.6. TheRegionalRealEstateObservatoryofParis/Île-de-France ............... 99 2.7. Beyonddensity:Thecharacteristicsofcompactcities..................... 99 2.8. Portland’s“refillrate”asatargetforbrownfielddevelopment.............. 100 2.9. TheFrenchNatural-HazardPreventionPlans ............................ 102 2.10. TheFebruary2010earthquakeandtsunami............................. 107 2.11. Socialsegregationwithinamunicipality:PuenteAlto andtheBajosdeMenacommunity..................................... 109 2.12. Mixed-incomehousinginitiativesintheUnitedStates.................... 114 2.13. MINVU’sProgramadeRecuperacióndeBarrios .......................... 115 2.14. Chile’sConcessionProgramme ........................................ 118 2.15. Santiago’sbustransportsystemandtheTransantiagoPlan................ 120 2.16. ComparingmetroticketpricesinSantiago,MadridandParis .............. 121 OECDURBANPOLICYREVIEWS:CHILE©OECD2013 7 TABLEOFCONTENTS 2.17. Air-shedmanagementplansandstrategies ............................. 125 2.18. Riverbasinorganisationsandwaterinformationsystems forwatershedmanagement........................................... 126 2.19. LosAngeles’AugustusHawkinsNaturePark............................. 128 2.20. PlanSantiagoRecicla................................................. 129 3.1. Primaryactorsintheurbandevelopmentprocess atthecentralgovernmentlevel........................................ 144 3.2. SUBDERE’sCreditProgramme ......................................... 154 3.3. Ascribingcompetencesaccordingtomunicipaltier: Luxembourg’sproposal............................................... 157 3.4. FranceandtheDotationdeSolidaritéCommunautaire ................... 160 3.5. Aspectrumofmetropolitanandurbangovernancemodels................ 163 3.6. Examplesofmetropolitangovernmentalauthorities...................... 164 3.7. Characteristicsofsupra-municipalarrangements........................ 166 3.8. ConstitutionalChartersformetropolitanandotherurbanareas ........... 168 3.9. Examplesofinter-municipaljointauthorities................................ 170 3.10. Centralandsub-nationalsupportingbodiesforurbandevelopment andmanagement.................................................... 179 3.11. CommunityinvolvementinChile’sRecuperaciónBarriosProgramme: Valparaíso .......................................................... 182 3.12. Co-ordination,co-operation,collaboration:Adefinitionofterms........... 182 3.13. TheAssociationofChileanMunicipalities............................... 184 3.14. Municipalco-operation:ThecaseofFranceandEPCIs .................... 185 3.15. TheInter-ministerialCommitteeonInfrastructure, CityandTerritory(CICYT) ............................................... 186 3.16. ContractualarrangementsinurbanareasinFrance andWesternCanada................................................. 187 3.17. ProgrammingAgreementsinChile..................................... 188 3.18. Norway’sperformanceindicatorssystem(KOSTRA) ...................... 189 3.19. MainperformanceindicatorinitiativesinChile.......................... 190 3.20. Australia2020Summit ............................................... 193 3.21. FormulatinganewNationalUrbanDevelopmentPolicyinChile............ 193 3.22. Usingconsultationmechanismsforgreaterstrategicinsight .............. 194 3.23. Approachestostrategicplanningformetropolitan andurbandevelopment .............................................. 196 3.24. Nationalobjectivesandcriteriaforfuturestrategicplanning ofAustralia’scapitalcities ............................................ 197 8 OECDURBANPOLICYREVIEWS:CHILE©OECD2013