Investment in urban heritage conservation in developing countries: Concepts, methods and data

- The historic cores of Third World cities are vulnerable to urban development.
- Adaptive re-use of heritage assets can be analysed as an investment project.
- We show how investment appraisal methods can be applied to such projects.
- We highlight problems facing urban heritage planning in developing countries.
- We discuss applications of these methods to cities in Macedonia and Jordan.

Many towns and cities in countries of the developing world contain a historic centre comprising streets, buildings and traditional activities that have resisted the forces of modernisation. However, the inexorable pressures of population growth and urban expansion often pose a serious threat to these heritage assets which are seen as standing in the way of progress. This paper considers the application of the principles and methods of heritage economics to the evaluation of investment in the conservation of urban heritage in towns and cities in developing countries. The characteristics of cultural heritage in this environment are considered and the choices facing urban planners are discussed. The paper outlines the methodology of investment appraisal of projects aimed at adaptive re-use of urban heritage assets, with specific reference to the scarcity of appropriate data in the typical developing country situation. To illustrate the application of ex post investment appraisal methods to urban heritage conservation projects in Third World cities, two examples from studies in Macedonia and Jordan are discussed.