When planned responsibly, and based on sound - but not necessarily exhaustive - cost/benefit analysis, and when supported by adequate regulations, the financing and development of infrastructure can be used as an engine for the development of institutions, policies, and capacities at all levels and across all sectors of governance.

To this end, the mandates of all levels and sectors of government should be clear and without gaps or overlaps. All relevant levels and sectors of government must be involved in making decisions on investment, instead of only those involved in collecting taxes and other revenues.

It is crucial to improve the effectiveness of managing urban development through better collaboration between different levels and sectors of government. Furthermore, the success of efforts to decentralize responsibilities to subnational levels is highly dependent on existing governance systems and traditions, even if they are supported by fiscal devolution and authority of sub-sovereign borrowing.

Urban planning is crucial to prepare for the orderly expansion of cities to guide investment, prepare subdivisions of land and install skeletal infrastructure before building. Retrofitting informally built areas is complex and much more expensive.

Responding to the surge in urban population seems to result in either the time-consuming process of building capabilities to harmonize goals and collaborate effectively, or a tendency to address the urgency by developing infrastructure without any consideration of the former. However, infrastructure development cannot be put on hold while perfect policies and institutions are put in place. These ends need not be mutually exclusive: investment in urban development does not have to be withheld until fully capable institutions are in place, nor do governments need to resort to "non-invasive" planning and building of urban infrastructure regardless of institutions and policies