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URBAN DEVELOPMENT
Machu Picchu Heritage Site (Peru)
Leveraging Cultural Heritage Assets for Local Economic DevelopmentMs. Katherine Sierra
1THE WORLD BANK
Ms. Katherine SierraVice President, Sustainable Development, The World Bank
October 1, 2009
Short Video G P i P j t i Chi
URBAN DEVELOPMENT
Gansu Province Project in Chinahttp://digitalmedia.worldbank.org/SSP/silkroad/index.html
Click here to start playing the video through internet
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Broadband internet connection and speakers required
Sustaining Growth and Reducing Poverty
URBAN DEVELOPMENT
Cultural heritage preservation has three objectives:has three objectives:
Rehabilitating real estate assets (e g housing stockassets (e.g., housing stock, public spaces, historic buildings, and heritage sites);
Improving the living conditions of local communities in historic settlements; and
President Zoellick asking about the details of the restoration
Developing the local economy through sustainable tourism.
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gof Huguang Huiguan Guild Complex, a cultural heritage site in the city of Chongqing (China) restored with Bank resources
Source: Bigio, A. et al. (2008). Development strategies for Morocco’s historic towns. Policy note. Washington: The World Bank.
Sustaining Growth and Reducing Poverty
URBAN DEVELOPMENT
Preserving cultural heritage and developing sustainable tourism provides economic opportunities, especially in countercyclical periods.
It reduces poverty by creating labor‐intensive jobs and stimulates the local economy by supporting the private sector.
80% of Country Assistance Strategies supported by the Bank include 80% of Country Assistance Strategies supported by the Bank include recommendations for tourism development.
Several governments of developed countries (the United States, Germany France the United Kingdom Spain Italy Australia andGermany, France, the United Kingdom, Spain, Italy, Australia, and Japan) have included significant investments in cultural heritage and sustainable tourism in their stimulus packages.
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Sustaining Growth and Reducing Poverty
URBAN DEVELOPMENT
A recent study from the International Monetary Fund demonstrated a positive relationship between tourism receipts (as a share of exports) and growth.
The study showed that an increase of one standard deviation in tourism
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Source: Arezki, R., Cherif, R. and Piotrowski, J. (2009). Tourism specialization and economic development: evidence from the UNESCO World Heritage List. Washington: International Monetary Fund.
The study showed that an increase of one standard deviation in tourism specialization leads to an increase of around 0.5 percent in annual growth.
Sustaining Growth and Reducing Poverty Directly or indirectly, the tourism industry employs more than 215 million people
worldwide. In the G20 countries, tourism represents 5 percent of their GDP and 6 per cent of jobs. In developing countries, tourism generates a growing contribution to their GDP, in some
10 tcases over 10 percent. Tourism is the principal source of foreign currency revenue in 83 percent of developing
countries. Tourism is the primary source of foreign exchange in the 49 least developed countries.
International Tourism Receipts
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The Bank’s Approach has Evolved Substantially over time
1 1970 19801. 1970‐1980, “do not harm”: avoiding damaging tangible cultural heritage assets in infrastructural project implementation,
2. 1980‐2000, “specific intervention”: investing on single tangible cultural heritage assets to develop tourism, and
3. 2000‐now, “integrated approach”: integrating cultural heritage in local economic development, considering tangible and intangible assets comprehensively with a specific focus onand intangible assets comprehensively, with a specific focus on historic cities rehabilitation and sustainable tourism (historic cities as service hubs for residents and sustainable tourism destinations)
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destinations).
URBAN DEVELOPMENT
Sustaining Growth and Reducing Poverty
Cultural heritage and sustainable tourism projects create direct labortourism projects create direct labor opportunities.
Ordinary infrastructure projects:Ordinary infrastructure projects: 70% materials, 30% labor
Cultural heritage and sustainable tourism projects: 30% t i l 70% l b30% materials, 70% labor
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Source: Rypkema, D. (2009), Measuring the Economic Impacts of Historic Preservation , Presentation at the Cultural Heritage and Sustainable Tourism Thematic Group, April 22, 2009. Washington: The World Bank.
Materials Labor Local workmen preserving a heritage site, Banteay Chmar (Cambodia)
URBAN DEVELOPMENT
Sustaining Growth and Reducing Poverty
Cultural heritage and sustainable tourism projectssustainable tourism projects support local economic development
Following nomination in the World Heritage List, in five years those sites have:y
Increased tourist arrivals by 30%;
Boosted retail store incomeBoosted retail store income by 20%; and
Handicraft industry rose by up to 15%
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up to 15%.
Source: UNESCO (2009).
Preserved historic city center, Pingyao (China)
URBAN DEVELOPMENT
Why Should Developing Countries Invest morei C lt l H it d S t i bl T i ?
It implies green and clean technologies
in Cultural Heritage and Sustainable Tourism?
p g gand is environmentally friendly.
Preserving and reusing existing buildings, las an alternative to new construction:
Cuts dramatically carbon emissions caused by the production of new building materials (up to 50% comparedbuilding materials (up to 50% compared to new construction) ,
Promotes the use of renewable resources and materials having limitedresources and materials having limited ecological footprint (e.g., wood, lime, bricks, and textile), and
Reduces debris landfill due to building
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gdemolition. Traditional house preserved and reused as a
small hotel, Marrakesh (Morocco)
Source: UNESCO (2009).
URBAN DEVELOPMENT
Why Should Developing Countries Invest morei C lt l H it d S t i bl T i ?
It helps local communities to look
in Cultural Heritage and Sustainable Tourism?
positively at economic development, as it links productivity to their social identity.
A community’s identity is valorized, with a positive impact on productivity and local tax revenues.
Jordan has distinguished itself in linking its craft and cultural industry to its growing tourism market.
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Artisan producing traditional rugs in Madaba (Jordan)
URBAN DEVELOPMENT
Why Should Developing Countries Invest morei C lt l H it d S t i bl T i ?It can improve the living conditions in neglected neighborhoods.
Rehabilitating under serviced inner cities improves access to services for
in Cultural Heritage and Sustainable Tourism?
Rehabilitating under‐serviced inner‐cities improves access to services for the urban poor.
The cultural heritage, tourism, and urban development project in Jordan (US$56 million) is an innovative operation aiming at reducing poverty in(US$56 million) is an innovative operation aiming at reducing poverty in five secondary cities through restoring and upgrading historic housing stock and revitalizing the local craft and cultural industry.
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Cultural heritage assets in the vicinity of the inner‐city of Jerash (Jordan)
URBAN DEVELOPMENT
Why Should Developing Countries Invest morei C lt l H it d S t i bl T i ?
It is gender inclusive.
in Cultural Heritage and Sustainable Tourism?
Cultural heritage preservation and sustainable tourism development provide opportunities for social development.
It also facilitates market opportunities to the handicraft and cottage industries, in productive sectors that employ women.
The Bank provided three grants to India (US$610K) to help develop traditional handicraft industry in O i d R j
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Orissa and Rajastan.Small enterprise for handicraft production in India
URBAN DEVELOPMENT
Why Should Developing Countries Invest morei C lt l H it d S t i bl T i ?It helps communities living in areas prone to natural disasters.Within the Istanbul seismic risk mitigation project in Turkey, the Bank
in Cultural Heritage and Sustainable Tourism?
provided resources (US$4 million) to address the seismic vulnerability of buildings that represent the community’s identity, including Haghia Sophia.
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Haghia Sophia, Istanbul (Turkey)
URBAN DEVELOPMENT
Why Should Developing Countries Invest morei C lt l H it d S t i bl T i ?It enhances country and city branding in the global economy and can facilitate strategic
in Cultural Heritage and Sustainable Tourism?
global economy and can facilitate strategic relations across countries.
The reconstruction of the Mostar Bridge 1930
(US$12.5 million) enhanced the visibility of Mostar and Bosnia Herzegovina through heritage preservation and urban d l k b d hdevelopment. Turkey contributed to this project by providing highly skilled labors.
2002
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Mostar Bridge (Bosnia Herzegovina) ‐ 2004
URBAN DEVELOPMENT
How Is the Bank Contributing to Cultural H it d S t i bl T i D l t? Since the 1970s, the Bank has financed 241 operations (208 lending and 33 non‐lending) having components in heritage conservation and
Heritage and Sustainable Tourism Development?
33 non lending) having components in heritage conservation and promotion of local economy through sustainable tourism, for an investment of US$4 billion.
There are currently 117 operations under implementation (100 lending There are currently 117 operations under implementation (100 lending and 17 non‐lending), for an actual investment of US$1.8 billion.
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The figures refer only to the actual Bank commitment in cultural heritage and sustainable tourism, and not to the overall project amounts.
URBAN DEVELOPMENT
How Is the Bank Contributing to Cultural H it d S t i bl T i D l t?Heritage and Sustainable Tourism Development?
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The figures refer only to project components featuring direct investments in cultural heritage and sustainable tourism.
Challenges
Preparation of project that integrate urban development and cultural heritage (third generation projects) need solid knowledgecultural heritage (third generation projects) need solid knowledge of the country potential, urban features, tangible and intangible heritage assets.
Project preparation therefore needs economic sector studies, technical assistance, feasibility studies, and inventories.
Consequently, new projects can be designed only by providing funding to carry out these studies.
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Addressing Challenges
Bank’s response: since 2000, the Bank has been addressing these h ll i h h f h I li G hi h hchallenges with the support of the Italian Government, which has provided funding through a Trust Fund aiming at financing studies to design new projects.
The Present Single Donor Trust Fund has financed 34 grants for US$6 million.
The Trust Fund has generated tremendous interest amongst clients and the overall Bank investment in the theme has significantly increased over the last decade, from US$1 billion (1990‐99) to US$2 6 billi (2000 09) d it h f th i thUS$2.6 billion (2000‐09), and it can grow much further, given the interest of developing countries in third generation projects.
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How Can the Bank Do more in Cultural H it d S t i bl T i ?
URBAN DEVELOPMENT
Heritage and Sustainable Tourism?Expanding partnerships ‐‐ Establishing a Multi Donor Trust Fund
Framework Agreement
Technical Advisors
Donor Committee
Symposia
New projects in
Grants to projects in
IDA and IBRD
Countries
TTLs
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Using a mobile crane to stabilize and preserve the amphitheatre, Cyrene (Libya)
URBAN DEVELOPMENT
How Can the Bank Do more in Cultural H it d S t i bl T i ?Heritage and Sustainable Tourism?Involving our technical partners to ensure aid effectiveness
IGOs Technical advisorsIGOs Technical advisors
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URBAN DEVELOPMENT
How Can the Bank Do more in Cultural H it d S t i bl T i ?Heritage and Sustainable Tourism?Establishing a Multi Donor Trust Fund as a facility to work on cross‐cutting themes
Physical preservation and adaptive
reuseEnvironment, disaster riskJob creation
C lt l h it d
disaster risk, climate change
and poverty reduction
Cultural heritage and sustainable tourism
Economic growth, local economic
development, small and medium
enterprises
Education
enterprises
Communication marketing and
media
Social development, community‐
driven development
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developmentPreserving a heritage site with locally available materials, Çatalhöyük (Turkey)
Thank You!URBAN DEVELOPMENT
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Children involved in the “Vietnam World Heritage in Young Hands Program,” a formal two‐year education initiative
What Indicators can be Used in Cultural H it d S t i bl T i P j t ?
URBAN DEVELOPMENT
Heritage and Sustainable Tourism Projects?Output indicators: Jobs created during and beyond project implementation; Jobs created during and beyond project implementation; Household income; Retail stores income; Tourist arrivals and overnight stays; and Tourist receipts.
Impact indicators: Historic fabric preservation implemented; Improved housing stock; Urban revitalization promoted; Sustainable development ensured;
S d b di d i i ti b ildi Saved energy embodied in existing building; Reduced automobile dependence due to more concentrated population; More responsible use of non‐renewable resources; Reduced development pressure on landfills; and
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Reduced development pressure on landfills; and Reduced construction debris.
What Indicators can be Used in Cultural H it d S t i bl T i P j t ?
URBAN DEVELOPMENT
Heritage and Sustainable Tourism Projects?Operational indicators measured by the Aga Khan Trust for Culture, a World Bank partner supported by the Present Trust Fund, show that each S$ illi i d i l l h i i f i bl iUS$1 million invested in cultural heritage preservation for sustainable tourism
development generates the following:
Work‐days generated during project implementation: A hi d h i i 32 000 k dArchitects and technicians: 32,000 work‐daysMasons and workers: 85,000 work‐days
Buildings restored (including public and private): 35 i l di h d i f ili i35, including houses and community facilities
Roads rehabilitated: 11 Km
Sewerage rehabilitated: 5 Km
Training:
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Training: 5 engineers and 30 masons trained in cultural heritage preservation
Data measuring the average impact in AKTC projects, worldwide.