Sustainable human settlements development is essential to sustainable development. The need to intensify efforts and cooperation to improve living conditions in the cities, towns, villages and rural areas throughout the world is recognized. Approximately half the world's population already lives in urban settlements, and by early in the next century the majority - more than 5 billion people - will be urban residents. Urban problems are concerns common to both developed and developing countries, although urbanization is occurring most rapidly in developing countries. Urbanization creates both challenges and opportunities. Global urbanization is a cross-sectoral phenomenon which has an impact on all aspects of sustainable development. Urgent action is needed to implement fully the commitments made at the United Nations Conference on Human Settlements (Habitat II) consistent with its report,15 and in Agenda 21. New and additional financial resources from various sources are necessary to achieve the goals of adequate shelter for all and sustainable human settlements development in an urbanizing world. Transfer of expertise and technology, capacity- building, decentralization of authority through, inter alia, strengthening of local capacity and private-public partnerships to improve the provision and environmentally sound management of infrastructure and social services should be accelerated to achieve more sustainable human settlements development. Local Agenda 21 programmes should also be actively encouraged. Global targets could be established by the Commission on Sustainable Development to promote Local Agenda 21 campaigns and to deal with obstacles to Local Agenda 21 initiatives.