Many cities around the world are missing out on significant development opportunities by ignoring, underutilizing, or mismanaging their public-space assets. Yet there is enormous potential to use these spaces more strategically and to unlock the hidden value they generate for communities, neighborhoods, and cities as a whole. The World Bank’s report, The Hidden Wealth of Cities: Creating, Financing, and Managing Public Spaces, presents a rich array of creative and innovative strategies that cities can adopt to plan, finance, and manage public spaces, whether publicly or privately owned, in ways that enhance urban livability, inclusion, and resilience.
The rapid pace of urbanization
The rapid pace of urbanization has transformed the spatial, social, and economic dynamics of cities worldwide. Between 1960 and 2017, the global urban population quadrupled from 1 to over 4 billion. Projections indicate that by 2050, two-thirds of the world’s population will live in urban areas, with 90 percent of future urban growth concentrated in Asia and Africa. While cities offer productivity gains through agglomeration, they also face mounting pressures on land, infrastructure, and the environment. One of the most visible arenas where these tensions manifest is the public realm, the streets, parks, plazas, and facilities that constitute the connective tissue of urban life.
In many rapidly growing cities, public spaces are under strain. Streets often prioritize vehicular traffic over pedestrians; parks are poorly maintained; and limited accessibility hinders community use. In highly dense cities like Dhaka and Nairobi, congestion and limited transit options significantly restrict job access, while substandard public spaces degrade urban livability and resilience. Conversely, cities that invest in high-quality, inclusive public spaces—such as Copenhagen or Seoul—reap dividends in health, safety, economic vibrancy, and environmental performance.
Public Space as Urban Infrastructure
Public spaces are broadly categorized into three types: streets and pedestrian areas, open and green spaces (e.g., parks and waterfronts), and public facilities (e.g., libraries, markets). Each contributes to the core functions of a city: mobility, social interaction, ecological balance, and economic activity. For example, walkable streets and pedestrian infrastructure reduce greenhouse gas emissions while enhancing access and safety, particularly for vulnerable groups. Open and green spaces mitigate urban heat island effects, support physical activity, and to improve biodiversity. Public facilities promote inclusion, learning, and social cohesion.
Yet public spaces are often viewed as fiscal liabilities due to their operating and maintenance (O&M) costs and limited revenue generation. In many cities, investment is piecemeal, with little long-term planning or coordination. The result is a cycle of disrepair and underuse. However, global case studies demonstrate that well-designed and maintained public spaces can significantly increase land and property values, boost business revenues, and enhance tax bases. Projects like the Gyeongui Line Forest Park in Seoul, Dashilar in Beijing, and Aghmashenebeli Avenue in Tbilisi exemplify how urban space interventions can catalyze local economic revitalization.
Strategic Planning for Inclusive and Livable Cities
Strategic planning of public spaces must consider both their physical attributes and their social functions. Human-centered design, spaces that are safe, walkable, shaded, and accessible, builds a sense of place and facilitates inclusive use, as Jacobs (1961) noted, “eyes on the street” foster safety, vibrancy, and community interaction. Contemporary placemaking approaches prioritize diversity of use, co-creation with communities, and flexible programming. Successful interventions often blend informal and formal processes, allowing for gradual enhancement and tactical urbanism (e.g., parklets, pop-up markets) while aligning with long-term master plans.
Public spaces also play a vital role in supporting the informal economy, particularly in low- and middle-income countries. Street vendors, hawkers, and market traders depend on accessible and functional public areas for their livelihoods. Equitable provision of public facilities—such as restrooms, lighting, and shelter—can significantly improve the working conditions of these groups and support more inclusive economic development.
Governance, Partnerships, and Financing
The creation and stewardship of public spaces involve a range of actors, including governments, communities, and the private sector. While municipalities typically own and manage most public spaces, their capacity is often constrained. Community-driven initiatives have emerged as powerful forces for bottom-up urban revitalization, particularly when empowered through participatory processes and supported by philanthropic or local business funding. Examples from Karachi, where civic groups led the restoration of historic public areas, highlight the potential of tactical urbanism and localized partnerships.
The private sector can also play a transformative role. Business Improvement Districts (BIDs), public-private partnerships (PPPs), and land value capture (LVC) instruments allow cities to leverage private investment for public benefit. In Brooklyn’s Tech Triangle and Singapore’s Orchard Road, private contributions helped finance public space enhancements that, in turn, supported innovation districts and creative economies.
Land-based financing tools, including impact fees, exactions, density bonuses, and tax increment financing, are increasingly employed to integrate public spaces into urban development projects. Incentive zoning schemes, such as New York City’s policy of granting additional floor area in exchange for creating plazas and arcades, have yielded hundreds of privately owned public spaces (POPS). However, the quality, accessibility, and inclusiveness of such spaces remain critical considerations. Policymakers must strike a balance between incentivizing investment and safeguarding the public interest.
Data-Driven Spatial Strategies
Effective planning requires comprehensive data on public space assets, type, condition, location, ownership, and use. However, many cities lack such inventories. Recent innovations in remote sensing, street-view imagery, and machine learning offer low-cost, scalable tools to assess spatial equity, walkability, and user patterns. Analysis of cities such as Tbilisi and Wuhan revealed that even centrally located public spaces can be underused due to poor design or lack of amenities. Integrating these insights into urban planning can help prioritize investment in underserved areas, reclaim residual spaces (e.g., along infrastructure corridors), and create connected networks of public amenities.
Inclusion remains a critical goal. Cities must plan for the equitable distribution of public spaces across neighborhoods, especially those with low-income or marginalized populations. This includes allocating land in newly urbanizing areas, adapting infrastructure for multifunctional use, and ensuring that spaces are accessible to children, the elderly, and persons with disabilities.
Sustainable Management and Institutional Frameworks
To sustain the quality and functionality of public spaces over time, cities must adopt a life-cycle management approach. This includes clear institutional arrangements for O&M, legal frameworks for contracts and concessions, and financial strategies for long-term funding. Outsourcing maintenance to private firms or community organizations can enhance efficiency and responsiveness, provided that accountability mechanisms are in place.
The governance of public spaces often requires inter-agency coordination. Steering committees, development corporations, and dedicated units can help align planning, infrastructure, and cultural initiatives. For example, Seoul’s Yonsei-ro pedestrianization involved collaboration across transport authorities, local government, universities, and civic groups.
A critical challenge is avoiding the erosion of public space through privatization, land conversion, or neglect. Parks and plazas, unlike buildings, do not have a defined lifecycle but require ongoing investment in physical renewal and programming. The transformation of Seoul’s Cheonggyecheon stream and Lima’s Plaza 31 exemplify how underused infrastructure can be reclaimed for people-centered purposes.
Toward Resilient and Inclusive Urban Futures
High-quality public spaces enhance resilience by mitigating urban heat, absorbing stormwater, and promoting social cohesion in times of stress. Integrating green infrastructure into public spaces can amplify both ecological and social benefits. In Colombo, Sri Lanka, the Beddagana Wetland Park provides both flood protection and recreational value. In Singapore, the Park Connector Network integrates transit, green spaces, and active mobility.
Looking forward, technological disruptions, such as autonomous vehicles, dockless mobility, and digital public space management, will reshape how cities design and regulate urban space. Cities must anticipate these shifts through adaptive planning, agile governance, and strong civic engagement.
Conclusion
Urban public spaces are not just aesthetic enhancements; they are essential infrastructure for equity, sustainability, and productivity. When thoughtfully designed and managed, public spaces generate social capital, economic value, and environmental benefits that far exceed their costs. The challenge for urban planners and policymakers is to unlock these benefits through inclusive strategies, innovative financing, robust data, and collaborative governance. As the global urban population continues to grow, the quality of public space will increasingly define the quality of urban life.