Abstract One of the challenges facing policy-makers in the 21st century is to reconcile the economic and social needs of urban populations in ways that are sustainable. Cities will need to be economically efficient, socially integrated, financially responsible, environmentally conscious, and institutionally capable if they are to survive and prosper. Cities have become the focal points of the global sustainability challenge, as they are centers of large-scale consumption and distribution of goods and services. With their increasing dependency on trade and the consumption of resources, the ecological impact of major cities extends well beyond their geographical footprint (OECD 1996). To address this disequilibrium, cities have begun to apply the criteria of sustainability to the myriad systems, organizations, and policies under their jurisdiction. The aim of these criteria was defined concisely during the preparatory meetings for the Urban 21 Conference (2000). The following definition was drafted to articulate the goals of sustainable urban development: Improving the quality of life in a city, including ecological, cultural, political, institutional, social and economic components without leaving a burden on the future generations. A burden which is the result of a reduced natural capital and an excessive local debt. Our aim is that the flow principle, that is based on an equilibrium of material and energy and also financial input/output, plays a crucial role in all future decisions upon the development of urban areas. (Urban 21 Conference 2000)


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