Development impact exactions. An alternative method of financing urban development in less developed countries
Urban areas in LDCs are increasingly faced with infrastructure deficiencies, which are in turn often directly linked with deteriorating environmental conditions in many cities. Existing urban planning, management and financing techniques used in these countries often fail to address responsibly the explosive urban growth that occurs along with increasing national economic development. This paper describes a method of urban planning, management and in particular capital improvement financing which addresses these issues in a comprehensive manner. The Development Impact Exaction (DIE) is used quite successfully in the US where it was developed as a growth management technique and alternative to municipal financing based completely on property taxation. The development impact exaction is assessed on a developer of property in order to finance additional facilities and services necessary to mitigate adverse impacts on existing members of the community caused by the development
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