(1) National legislation shall provide for the governance and management of urban areas and cities and shall, in particular--
(a) establish criteria for classifying areas as urban areas and cities,
(b) establish the principles of governance and management of urban areas and cities; and
(c) provide for participation by residents in the governance of urban areas and cities.
(2) National legislation contemplated in clause (1) may include mechanisms for identifying different categories of urban areas and cities, and for their governance.