World-class dreams, marginalized realities: Neoliberal urban governance in the Global South

Abstract

This paper examines the lasting influence of neoliberalism on urban planning and policy in the Global South, shaped significantly by the Structural Adjustment Policies (SAPs) promoted by International Financial Institutions (IFIs) during the 1980s and 1990s. These policies introduced key elements such as market-based governance, privatization of state-owned enterprises, the promotion of private property rights, and the weakening of public interest criteria, all of which have become central to urban development processes.

Urban governance in Global South cities remains heavily influenced by these IFI-driven policies, with a focus on world-class infrastructure projects that often overlook equity and the needs of the urban poor. These cities increasingly rely on market mechanisms rather than state intervention to allocate scarce resources, further entrenching socio-spatial disparities.

Using examples from the water sector in Bolivia and Jakarta, the housing sector in Ghana, urban development in African cities, and emerging urban governance models in India, the paper demonstrates how neoliberal policies have struggled to prioritize socio-spatial redistribution. Instead of mitigating social inequalities, these policies often exacerbate them. The paper advocates for a reimagined urban governance approach that centres on equity and improved access to essential services, underscoring the need to rethink development paradigms in the Global South.