Page 46 - A U4SSC deliverable - Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects

Box 14: Saw-shaped curve to map cash-positive and -negative projects

Recommendation 7: use multilateral dialogue to inspire institutional innovation

It is critical to ensure that the legislative component of the development framework of a city is
transparent, making it easy for all involved stakeholders and partners to operate. An investment
environment which is supported by transparent legislation makes a city attractive for potential
investors.

In order to create transparent rules and enforcement mechanisms, intensive participation by the
public sector, civil society, academia, and the private sector is required; this is mainly in order to
determine the conditions that will facilitate stakeholder involvement in urban development projects.
This “multilateral dialogue” can generate “institutional innovation”, resulting in clear and improved
legislation and frameworks. A clear operational framework with transparent rules will attract reliable
partners. Moreover, reliable partners who agree to operate within the transparent legislative system,
once involved in the project, will enhance the quality of the framework. As discussed above, all
parties should adopt the sustainable development framework with people, planet and prosperity
at its centre. This factor should also be considered when creating legislature. As well as developing
new transparent legislature, cities should examine existing frameworks, reconsidering rules and
enforcement mechanisms, questioning them, and accepting the creation and use of new ones.

28 U4SSC: Guidelines on tools and mechanisms to finance Smart Sustainable Cities projects