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Asia and the Pacific has the world’s fastest growing cities and urban centres. The region is home to 2.2 billion urban residents, which will increase by an estimated 48 million more each year until 2050.

While urban growth brings opportunities, the region faces growing urban divides, with nearly 700 million people living in slums or informal settlements, and many lacking adequate housing, reliable services, decent work and safe living environments.​

The 2026 Asia-Pacific SDG Partnership Report highlights urban policies and initiatives that can tackle these inequalities and recommends practical policy actions to advance inclusive urban futures and drive progress towards the Sustainable Development Goals.

Dimensions of urban inequalities

Urban inequalities are prevalent across three interconnected areas.

 
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Unequal access to housing and basic services

Inequalities in access to housing, transport, water and sanitation, electricity, clean energy, Internet and financial services persist, particularly for those "furthest behind."

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Widespread informal employment​

Over 65 per cent of urban workers are engaged in the informal economy, often in insecure and low paid jobs with no labour rights, protections or upward mobility.

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Worsening urban environments

Air pollution, unmanaged waste and climate shocks are escalating, deepening urban inequalities and health vulnerabilities among those least able to adapt.

Good practices​ to tackle urban inequality

Across Asia and the Pacific, governments, cities and communities are driving change through practical, scalable solutions.

Enablers for Inclusive Urban Futures

Four critical enablers underpin inclusive urban transformation in Asia and the Pacific, creating the institutional, financial and knowledge ecosystems needed to sustain and scale solutions.

 
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Additional and innovative financing

  • GSSS bonds
  • Green municipal bonds
  • Contingent credit lines
  • Parametric insurance
  • First-loss credit enhancement
  • Partial credit guarantee facilities

 

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Science and technology

  • Digital twins
  • Remote sensing
  • Geographic information systems
  • IoT and real-time monitoring systems
  • AI-enabled climate risk management systems

 

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Effective governance

  • Robust legal frameworks for inclusive urban growth
  • Planning tools such as priority-aligned investments
  • Digital governance for efficiency and inclusivity
  • Public participation mechanisms

 

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Multilateral and multi-stakeholder partnerships

  • Inter-city cooperation
  • Cross-border bilateral urban partnerships
  • Multilateral city alliances
  • Private sector partnerships
  • Research partnerships