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Title: INFORMAL LAND MARKET AND URBAN POVERTY


1
INFORMAL LAND MARKET AND URBAN POVERTY
UPA Package 3, Module 2
2
Informal Settlement and Urban Poverty
  • Poverty is a multidimensional phenomenon
  • Lack of access to employment
  • Lack of tenure security
  • Lack of social protection
  • Lack of access to health, education and personal
    security.

3
Informal Settlement and Urban Poverty
  • Poverty can be defined as lack of security
    and choice
  • Lack of adequate housing and services
  • Live and work in informal and illegal settlements
  • Do not have secure tenure in these settlements
  • Lack of adequate transport infrastructure
  • Great commuting distance
  • Lack of access to credit

4
Informal Settlement and Urban Poverty
For the urban poor, both two elements are missing
in the urban land and housing market
Reading What Is Urban Poverty? --World Bank,
2001
5
World Population Growth Will Be Mainly in Urban
6
Almost All Growth Will Take Place in Cities of
Developing Countries
7
Developing Country Rapid Urbanization Leads to an
Increase in Informal Settlements
  • Urban growth in developing countries comes
    primarily from individuals migrating from the
    rural areas (Nairobi 90 of recent arrivals to
    the slum areas came from rural Kenya).
  • In the cities of developing countries there is
    restricted access to formal serviced land by the
    urban poor (limited formal land market
    activities, and limited access to credit)
  • The urban irregular informal land market meets
    the demand of the urban poor (and is apparently
    both more profitable and easier to develop) .
  • The result has been a rapid increase in the
    informal or slum areas. The formal serviced land
    market is not responding to the demand.

8
Informal Settlement
  • Dense settlements comprising communities housed
    in self-Constructed shelters under conditions of
    informal or traditional land tenure.
  • Common features of developing countries and are
    typically the product of an urgent need for
    shelter by the urban poor.
  • A significant problem especially developing
    countries housing the world's disadvantaged.

9
Informal Settlement
  • Informal settlements occur when the current land
    administration and planning fails to address the
    needs of the whole community. These areas are
    characterized by rapid, unstructutured and
    unplanning development.
  • On a global scale informal settlements are a
    significant problem especially in third world
    countries housing the world's disadvantaged.
    Slums, squatter settlements and illegal
    settlements are unique characteristics of
    informal settlements.

10
Informal Settlement
Example Participation in Informal Settlement
Nairobi ,Kenya --Dorothy Abonyoof 1999 Coping
With Informality And Illegality In Human
Settlements In Developing Cities --Leuven and
Brussels, 2001 The Improvement of Informal Areas
in El-Monira, Egypt --UN HABITAT 1996
11
Informal Settlement
  • Hout Bay Informal Settlement Images South Africa

1994
1993
Hout Bay derives its name from the Dutch for Bay
of Wood, for which it was apparently known in the
early settlement days of the Western Cape as a
good source of wood for ship building and
repairs. The need for labour in the harbour
attracted migranting workers who were precluded
from ownership or secure leases by group areas
legislation. Squatting occurred sporadically by
pockets of people for more than fifty years. by
the late 1990 more than 2000 people lived in five
main informal settlements, the largest being
Princess Bush and Sea Products near Hout Bay
harbour.
12
Informal Settlement
  • Hout Bay Informal Settlement Imagessouth Africa

1996
1997
13
Informal Settlement - Slum
  • Slums are legal but overcrowded,
    under-serviced settlements,they are legal but
    substandard settlements. Slum dwellers could be
    either renters of the shelter, or the land or
    they could be owners of the land and dwelling.
    Slums are normally found in the centers of
    cities, although it is not uncommon to find
    slums, where land is rented, in the urban
    periphery.

Reading Urban Slum Reports The case of Nairobi,
Kenya -- Winnie Mitullah 2003 Slums of The World
The Face Of Urban Poverty In The New
Millennium? -- UN HABITAT 2003
14
Informal Settlement - Slum
  • The term slum includes the traditional meaning,
    that is, housing areas that were once respectable
    or even desirable, but which have since
    deteriorated, as the original dwellers have moved
    to new and better areas of cities. The condition
    of the old houses has then declined, and the
    units have been progressively subdivided and
    rented out to lower-income groups.A typical
    example is the innercity slums of many historical
    towns and cities in both the industrial and the
    developing countries.

15
Informal Settlement - Slum
16
Informal Settlement - Slum
Hualoujie, Wuhan, China A former residential
houses. Once, more then fifty years ago, as the
desired houses where located in the busiest area
of Wuhan city. It was demolished in May 2003
17
Informal Settlement - Slum
18
Informal Settlement - Slum
The term slum has, however, come to include also
the vast informal settlements that are quickly
becoming the most visual expression of urban
poverty. The quality of dwellings in such
settlements varies from the simplest shack to
permanent structures, while access to water,
electricity, sanitation and other basic services
and infrastructure tends to be limited. Such
settlements are referred to by a wide range of
names and include a variety of tenurial
arrangements.
19
Informal Settlement - Slum
20
Informal Settlement - Slum
  • Slums of The World
  • The Face Of Urban Poverty In The New Millennium?

Reading The new paper presents the results of a
first global enumeration of slums at the country
level by UN habitat in 2003.This document is the
culmination of attempts to come to grips with
changes in the way we measure slums, starting by
providing an agreed universal, definition of this
type of settlements and a clear methodological
approach. The preliminary estimations presented
in this document represent a baseline year level
that permits the preparation of quantitative
estimates for future trends. By providing the
methodology and the quantitative knowledge base,
the document strives to enhance the use of
information on urban poverty, as a powerful
policy-making tool to help induce the desired
structural changes for poverty alleviation. -- UN
HABITAT 2003
21
Informal Settlement - Squatter Settlements
  • Squatter settlements are unplanned, often
    unserviced illegal settlements.
  • Squatter settlements are often found on marginal
    or environmentally hazardous lands, such as
    beside railway tracks, along rivers and canals
    etc. They are also found on government land or
    land whose ownership is unclear.
  • Squatter settlements are spontaneous or organic
    settlements with little or no planning.
  • Squatter settlements are substandard housing
    conditions and Minimum amounts of capital
    investment because their land tenure is illegal.

22
Informal Settlement - Squatter Settlements
  • Usually, a squatter settlement is highly
    organized despite being illegal. The occupants
    have clearly defined behavioral rules, spatial
    boundaries and methods of solving tenurial
    disagreements. Illegal housing is sold, land is
    subdivided and leased, and other transactions are
    possible as if the land or housing was legal. The
    settlement is also typically recognized by the
    public or private landowner, and, if the
    landowner is private, rents are often
    transferred. Squatter settlements have gradually
    become an integral part of the urban fabric.

Reading Defining Squatter Settlements
-- Hari Srinivas
23
Informal Settlement - Squatter Settlements
  • A squatter settlement in city periphery, China
  • A settlement, lacking services, which consists of
    a collection of small, crude shacks made of
    discarded materials and serving as habitation for
    poor people on the outskirts of towns.

24
Informal Settlement - Squatter Settlements
  • A squatter settlement in city periphery, China

25
A Squatter Settlement in E. Santiago
In their early stages squatter settlements are
characterized by haphazard settlements patterns,
poor quality of housing and an absence of public
infrastructure and services such as piped water
supply, sewerage, roads and electricity. Over
time, people find ways of accessing basic
services. In some squatter settlements water is
bought through vendors and charges could be as
high as ten times the municipal water rates. In
other cases squatters have been known to
illegally tap into the main water pipe lines to
access water.
26
A Squatter Settlement in E. Santiago
27
A Squatter Settlement in E. Santiago
28
A Squatter Settlement in E. Santiago
29
A Squatter Settlement in E. Santiago
30
A Squatter Settlement in E. Santiago
31
A Squatter Settlement in E. Santiago
32
A Squatter Settlement in E. Santiago
Although generally regarded as an important
aspect of sanitation, the removal or treatment of
solid waste by a household has not been widely
collected in surveys. In urban areas this is
especially critical and for many observers the
condition of solid waste disposal is the first
impression of an unacceptable living condition.
33
Informal Settlement - Illegal Subdivisions
  • Illegal subdivisions are planned and organized.
    These usually occur in cities where the
    government owns large tracts of vacant land, with
    low opportunity cost, in the periphery of the
    city.
  • Illegal subdivisions are started by unscrupulous
    land developers who are often in league with
    corrupt elected and appointed government
    officials, including the police. With the
    protection of these corrupt officials these
    developers occupy government land, level it and
    subdivide it, according to government planning
    regulations, planning space for commercial,
    residential zones, schools, hospitals, religious
    institutions, recreation areas, primary,
    secondary and tertiary roads etc.

34
Informal Settlement - Illegal Subdivisions
  • These plots are sold, at almost nominal prices,
    without services to low-income households in
    desperate need for shelter. The only thing they
    provide is water through tanker trucks.
  • Such subdivisions often pay little attention to
    health and fire safety considerations. As the
    motive behind their development is maximum profit
    they often have no provision of public amenities
    like parks or open spaces. narrow roads
    contravening planning rules and a lack of
    coordination of transport access to lands around
    them can cause traffic congestion.

35
Informal Land Market
  • Substandard and insecure housing conditions are
    recognised as a crucial aspect of urban poverty.
    In most large cities in the developing world, the
    formal market serves only a minority of the
    population. It is estimated that between 30 and
    70 live in irregular settlements and that up
    to 85 of the new housing stock is produced in an
    extra-legal manner.
  • The conventional sequence of Planning-Servicing-Bu
    ilding-Occupation is a key factor in both market
    and state failures. Each of these steps leads to
    a steep price increase and speculation, and in
    effect raw land is turned into a scarce and
    expensive commodity. The effects to the urban
    poor is that they have be locked out of formal
    urban land markets.

36
Informal Land Market
When the poor are locked out of the formal land
and housing markets they revert to the informal
land and housing markets to meet their
needs. Why do they work?
Reading Learning from informal markets
Innovative approaches to land and housing
provision
--Erhard
Berner2000 Informal land delivery processes in
six african cities --Carole
Rakodi and Clement Leduka 2003
37
Informal Land Market
  • Invasions
  • Homeless urban dwellers who group together to
    take away a piece of land from speculators or
    listless governments is certainly appealing. low
    quality public land, is a common condition for
    invasions on a massive scale. In these cases the
    land is uncontested and can be occupied by
    squatters even without being organized

38
Informal Land Market
Squatting in marginal locations Illegal
settlements fill the gaps left by urban
development. there is no free squatting
distinction between non-commercial and commercial
articulation of illegal land supply becomes,
thus, questionable. Where traditional systems of
land allocation exist they are often losing
significance or becoming commercialized
themselves.
Reading Learning from informal markets
Innovative approaches to land and housing
provision --Erhard Berner2000
39
Informal Land Market
Extra-legal subdivisions This implies that
houses are built without permits and their
quality as well as the provision of
infrastructure may be below regular standards,
which is precisely what makes them affordable for
low-income groups. It is their ability to cut
cornersand costswhich has helped the commercial
subdividers to expand their operations and to
provide plots which are more appropriate,
affordable and easily available than any other
housing option. The serviced land can then be
subdivided and soldwhat is actually sold is the
right to squat on a certain plot, and no one
mistakes this for a legal title. It is not
uncommon that part of the land is set aside for
speculation purposes.
40
Informal Land Market
  • Renting and subletting
  • Recent figures compiled by UNCHS indeed suggest
    that in most cities, the majority of the
    population is renting accommodation It is
    reasonable to assume that a large proportion of
    these tenants is poor, and renting because owner
    occupation is not accessible to them. there is a
    wide variation of rental sub-markets in terms of
    accessibility and quality of infrastructure of
    the location, form and security of tenure, and
    the quality of housing and facilities. A close
    relation between land markets and rental
    accommodationIn many cities, the bulk of
    affordable rental housing is now provided in the
    homes of low-income homeownerswhether they have
    legal, semi-legal or no legal tenure of their
    land and house.

41
Bring the Poor Into Formal Land Market
  • The key to sustainable poverty alleviation is not
    to make the poor dependent on governments or
    non-governmental organizations but to empower
    them to increase their security and choices. In
    other words to enable the poor to operate in
    formal markets like other citizens.
  • Experience has shown that bringing the poor into
    the formal land and housing markets needs a two
    pronged strategy increasing the choices
    available on the supply side and increasing
    affordability on the demand side.

42
Bring the Poor Into Formal Land Market
  • Housing opportunities for the urban poor has
    become an increasingly urgent task for
    municipalities to tackle. Most of the initiatives
    to provide low-income groups access to land for
    housing introduced later are implemented by
    governments. These include sites-and-services
    schemes and settlement upgrading. Apart from
    sites-and-services schemes and settlement
    upgrading, incremental development is an approach
    which lets the target group decide when to
    develop their land. A figure may display the
    basic difference between these three concepts and
    conventional housing programmes.

43
Bring the Poor Into Formal Land Market
44
Increasing Supply of Land for the Poor
  • Early attempts
  • Governments provides low-income housing focused
    on the provision of fully serviced public housing
    units.
  • Urban migrants and squatter settlements were
    treated with open hostility.and were often
    flattened with the help of bulldozers.
  • During the 1960s and 1970s
  • Government housing programmes were completely
    incapable of keeping pace with the enormous
    demand.

45
Increasing Supply of Land for the Poor
  • After then,Many experts advocated
  • Provide security of tenure to low-income groups
  • Provide some basic infrastructure
  • Residents would with time gradually improve their
    housing.
  • The role of the government in housing
  • - to be an enabler rather than provider.

46
Site-and-Services Schemes
  • Provide the target group with a plot and basic
    infrastructure, such as water, roads and
    sanitation facilities. The beneficiaries either
    lease or buy the allocated land. they are
    provided access to a loan with reasonable terms
    as well as an additional loan for the
    construction of a house. It is better option
    than government built housing, often failed to
    meet the housing needs of the urban poor.

47
Site-and-Services Schemes
Some of the problems which have been discussed
are
  • Location.
  • Failure to include one or more components.
  • Selection of eligible households.
  • Standards.
  • Administrative delay and shortage of skilled
  • staff.
  • Removal of community leaders

During the 1970s and 1980s, sites-and-services
schemes were implemented in nearly 100 countries
mostly on the behest of international agencies
like the United Nations and the World Bank.
48
Site-and-Services Schemes
Example Case Sites and Services for low income
population on the north zone, Buenos Aires (Award
Winning in Best Practices of UN HABITAT 1996)
Argentina. This is a project on sites and
services for family groups with a low income
living in the north area of Buenos Aires,
Argentina. It was carried out by APAC, a civil
association with no profit purposes working in
habitat themes with marginal populations, themes
concerning both land and housing.
49
Site-and-Services Schemes
Example Case The project consists in 173 plots
provided with a basic infrastructure such
this - water supply system - electricity supply
system - road constructions - open rainwater
drainage system - light pillars - streets lighting
50
Settlement Upgrading
Settlement upgrading is based on investments
already made in the existing housing stock and is
therefore less costly to implement. Settlement
upgrading provides existing settlement dwellers
land tenure as well as some or all of the
components indicated in table the fundamental
feature being the provision of basic
infrastructure.
51
Settlement Upgrading
Physical Social Economic
Road infrastructure and footpaths Health facilities Housing and infrastructure loans
Sanitation Education facilities Small business loans
Garbage collection Community facilities (parks, playgrounds) Employment generation
Drainage Other community activities Training
Water Trade association
Street lighting Establishment of cooperatives
52
Settlement Upgrading
An Overview of Upgrading
53
Settlement Upgrading
  • Characteristics of Stressed Communities
  • Lack of basic services
  • Insecure or unclear tenure of land
  • Low household incomes
  • Dependence upon informal work opportunities

54
Upgrading As A Response
  • Objectives
  • Improve overall conditions
  • Safeguard from displacement
  • Encourage self-rehabilitation
  • Stimulate small business expansion
  • Ensure affordability

55
Upgrading As A Response
  • Factors to Consider
  • Scale of the problem
  • Severity of conditions
  • Tenure
  • Community participation
  • Institutional framework
  • Financial structure

56
Upgrading As A Response
57
Upgrading As A Response
  • Types of Upgrading Programs
  • Community Infrastructure
  • Lot titling
  • Comprehensive Upgrading

58
Upgrading As A Response
Community Infrastructure
  • Simple and rapid
  • Poor environmental conditions poor, secure tenure
  • Cost less per capita
  • Benefits per household low
  • Financed by municipal taxes and user charges
  • Comprises of physical improvements such as
    footpaths, sanitation, water supply, drainage

59
Upgrading As A Response
Lot Titling
  • Minimal infrastructure
  • Fairly good environmental conditions, insecure
    tenure
  • Establishes secure of tenure
  • On-plot services such as wells and sanitation
    provided by individual household
  • Low public investment

60
Upgrading As A Response
Comprehensive Upgrading
  • Combines community infrastructure and lot
    titling
  • Poor environmental conditions, insecure tenure
  • Greater administrative requirements and
    community involvement
  • Costly but benefits per household great
  • Include individual service connections

61
Upgrading As A Response
National Upgrading Programs require guidelines
for assessing the positive and negative impacts
of projects on the natural resource base.
62
Upgrading As A Response
Properly planned and implemented upgrading at
local and national levels can improve depressed
communities, stimulate residents to improve their
own homes, and make the community an integral
part of the urban fabric.
63
Kampung Improvement Program, Surabaya Indonesia
(Case 1)
The Kampung Improvement Programme (KIP) in
Indonesia probably rates as the foremost
settlement upgrading achievement in the world.
The objectives of the programme were to provide
access roads, footpaths, drainage, sewage
solutions and drinking water and social
facilities such as schools and health centres for
urban low- and medium income groups in
Indonesia's popular kampung settlements. has
improved more than 500 kampungs and provided
basic services to about 3.8 million people
(United Nations, 1989). Indonesia's
five-year-plan for 1989-1994 was to be
implemented in 500 cities and included projects
for urban renewal encompassing settlement
upgrading programmes (Silas, 1992).
64
Kampung Improvement Program, Indonesia1981
Aerial view, the Kampung Improvement Programme
has created healthier urban environments by
providing municipal services
Kampung Improvement Program, Surabaya Indonesia
(Case 1)
65
Kampung Improvement Program, Surabaya Indonesia
(Case 1)
Aerial view
Kampung Improvement Program, Indonesia 1981
66
Kampung Improvement Program, Surabaya Indonesia
(Case 1)
Detail, drainage channel
A pedestrian bridge
Kampung Improvement Program, Indonesia 1981
67
Kampung Improvement Program, Surabaya Indonesia
(Case 1)
Detail, drainage channel
Kampung Improvement Program, Indonesia 1981
68
Kampung Improvement Program, Surabaya Indonesia
(Case 1)
Kampung Improvement Program, Indonesia 1981
House under construction
69
Kampung Improvement Program, Surabaya Indonesia
(Case 1)
A resident upgrades his home Kampung Improvement
Program, Indonesia 1981
70
Kampung Improvement Program, Surabaya Indonesia
(Case 1)
A newly paved street and drainage
channel Kampung Improvement Program, Indonesia
1981
71
Settlement Upgrading Project Senegal (Case 2)
  • Senegal, like many developing countries is under
    pressure from the the urban squatter settlement
    problem. In order to deal with such uncontrolled
    urbanization which represents almost 25 of
    Senegal's urban areas and meet the strong demand
    for decent housing, the government has engaged in
    three series of actions among which is the
    upgrading housing programme.

72
Settlement Upgrading Project Senegal (Case 2)
  • This programme which started in 1987 Dalifort
    (Pilot Project), was designed and implemented
    with technical and financial support from the
    German Technical Cooperation in 1987. It relies
    on the involvement (financial and physical) of
    squatters' population in the improvement process
    of their living conditions.The programme's
    expected result is to achieve adequate shelter
    through an enabling approach to shelter
    improvement which is environmentally sound, i.e
    actively promote the legalization and upgrading
    of settlements.

73
Settlement Upgrading Project Senegal (Case 2)
74
Tianjin Comprehensive Housing Improvement Scheme
(Case 3)
At the end of 1993, the Tianjin Municipality
Committee and Municipal Government put forward a
scheme to complete the rehabilitation of unsafe
and dilapidated buildings in the inner city in 5
to 7 years. This comprehensive rehabilitation
scheme has transformed both the old and the newly
built areas into functional and rational land use
pattern. A large number of educational, cultural
and commercial facilities have been created and
the green space has increased. At the same time,
major improvements have been made to urban
infrastructure, including the construction of 35
roads and 20 bridges. While the Municipal
Government ensured overall co-ordination and
planning, the implementation of the project was
developed to the District level, bringing the
projects much closer to the people.
75
The Figures Showing the Increasing of Housing,
Road and Heating of Tianjing Between 19972001
Tianjin Comprehensive Housing Improvement Scheme
(Case 3)
Houses equipped with central heating increasing
(Sq.m)
Per capita residential floor space increasing
between 1997-2001 (Sq.m)
Roads construction (Km, Sq.m)
76
Settlement Upgrading
Successful squatter settlement regularization/upgr
ading projects have the following
characteristics 1. Upgrading projects are
relatively cost-effective in a situation of high
demand for shelter and services. 2. Upgrading
projects are most successful if they are simple
and down to earth. Basic programmes of service
provision were relatively successful, whereas
additional components such as income generation
and home improvement credit have been less
effective. Simple programmes have extended
coverage and ensure faster implementation.
77
Settlement Upgrading
3. Components to improve land tenure had to be
carefully implemented to enhance the perceived
land tenure security, as well as, to recover
costs. 4. Community participation was essential
for the success of upgrading programmes. 5.
Participatory approaches in all stages concept
development, planning of layout, decision making
on level of services and implementation were
extremely important to the success of projects.
78
Land-Sharing
The concept of land sharing is that the landowner
and the land occupants (squatters or tenants)
reach an agreement whereby the land owner
develops the economically most attractive part of
the plot and the dwellers build houses on the
other part with full or limited land ownership.
Both the landowner and the squatters benefit from
land sharing. Squatters get to stay on the land
legally while the land owner can sell or develop
a portion of the land and avoid long legal
battles.
79
Land-Sharing
  • Several advantages
  • Overcome difficult to find land for public
    housing schemes in locations near
    income-generating activities
  • Unnecessary to clear land for development
    projects.
  • Both parties gain the landowner can obtain the
    most desired land and the occupants can continue
    living in the area, with secured tenure.

80
Land-Sharing
  • The five basic requisites of land sharing are
  • Community organization
  • - Negotiations for land sharing require that
    slum dwellers organize to counter the thread of
    eviction.
  • A land sharing agreement
  • - This requires a binding agreement to
    partition the land. Usually the land parcel with
    the best development potential is allocated to
    the landlord.
  • Densification
  • - Rehousing the community in a smaller area
    requires increased residential densities.

81
Land-Sharing
  • Reconstruction
  • - The increase in density and the need to
    clear part of the site usually necessitates the
    reconstruction of houses.
  • Capital investment
  • - Reconstruction requires capital from the
    domestic savings of the residents or loans
    from outside sources.

82
The Sengki land-sharing project(Case)
The Sengki slum of about 140 households was
located in one of the oldest parts of Bangkok and
the land belonged to the King of Thailand. The
King's Property Bureau was responsible for the
management of the plot sized 25,080 square
metres. Most of the slum dwellers returned after
slum demolished in 1978 by a fire and rebuilt
less permanent dwellings owing to the lower
tenure security. Some new dwellers also moved in
at the time. The Sengki slum had several
characteristics which made it suitable for
land-sharing
83
The Sengki land-sharing project(Case)
  • There was no serious development pressure on the
    land
  • The community had been living on the land for a
    considerable period of time
  • The community was well established and residents
    relatively close to each other
  • Most households in the area did not belong to the
    low-income group
  • Most of the existing housing stock was temporary
  • The leaders of the Sengki slum were keen on the
    land-sharing arrangement and could refer to
    experiences at Wat Ladbuakaw.

84
The Sengki land-sharing project(Case)
Land sharing usually results in major
improvements in housing and a significant
increase in asset formation. The conditions for
its success are assessed by comparing land
sharing slums with other slums with potential for
land sharing. Land sharing is not successful
where communities are weak, and once implemented
may result in the resale of some of the houses,
which then command a higher market value.
85
The Sengki land-sharing project(Case)
Land Sharing in Bangkok
86
The Sengki land-sharing project(Case)
Land Sharing in Bangkok
87
The Sengki land-sharing project(Case)
Land Sharing in Bangkok
88
The Sengki land-sharing project(Case)
Land Sharing in Bangkok
89
Land Sharing Is Increasingly Viable in the
Following Situations
  • The lower the development pressure.
  • The better the cooperation of the landlord.
  • The more legitimate is the occupation of the
    land by the slum dwellers.
  • The earlier the stage in the eviction process.
  • The stronger the community leadership.
  • The stronger the support from outside agencies.
  • The lower the existing residential density.
  • The smaller the existing size of houses.
  • The lower the value of existing houses.
  • The higher the ability to pay for housing.
  • The better the access to sources of housing
    finance

90
Land-Sharing
Some of the problems which have been encountered
with land-sharing projects include 1.
Availability of land. Often the land available is
too small and/or the population density too high
within slum communities. Furthermore, this
shortage of land may force the building of
walk-up apartments which are generally unpopular
among slum dwellers.
91
Land-Sharing
2. Community cohesion. A land-sharing project
requires considerable cooperation efforts among
slum dwellers who often have a different
background. This is particularly a problem during
the allocation of plots. 3. Complex and
time-consuming. The necessity of community
participation and agreement throughout the
complex process is very time-consuming. The delay
in implementation has typically led to increased
costs. Furthermore, there is a problem with
enforcement as there are no clear rules and each
individual household has so far had the powers to
block all major decisions.
92
Incremental Development
Incremental development can be described as a
sites-and-services scheme without the services.
The approach includes mechanisms whereby groups
of households are encouraged to organize
themselves, accumulate funds and to provide
infrastructure gradually. Construction begins
when the group has collected a certain percentage
of the required funds. Through the incremental
development scheme the government seeks to
establish a planned and legal squatter
settlement. Infrastructure and services are
provided incrementally when the residents are
able to pay for these.
93
Khuda-ki-Basti Incremental Development Scheme
(Case)
Khuda-ki-Basti is a grid-like, planned layout
within the 5500-acre Gulshan-e-Shabbaz housing
development located in Hyderabad. It is the site
of a development scheme devised by the Hyderabad
Development Authority (HDA) to help the poorest
families house themselves. In this sector
homeless Pakistanis are given the chance to
settle on land, and to obtain permanent. Given
security of tenure, the families build their
houses and provide infrastructure incrementally,
as resources become available. The incremental
development scheme is entirely self-financing -
-there is no subsidy, formal or informal.
94
Khuda-ki-Basti Incremental Development Scheme
(Case)
The entire cost of the developed plots is borne
by the beneficiaries, in installments spread over
a period of 8 years. The family designs and
constructs its house in any material or style it
can afford. Residents apply for individual house
connections to all utility services after they
have paid the charges monthly installments
eventually repay the actual cost. Khuda-ki-Basti
is also provided with education and health
facilities as well as affordable transport
service. The jury commends this successful effort
to create affordable housing for the urban poor,
seeing it as a model that can be widely applied
everywhere.
95
Khuda-ki-Basti Incremental Development Scheme
(Case)
Demonstration of the Procedure for Securing a
Plot Khuda-ki-Basti Incremental Development
Scheme, Hyderabad, Pakistan 1990
96
Khuda-ki-Basti Incremental Development Scheme
(Case)
Khuda-ki-Basti Incremental Development Scheme,
Hyderabad, Pakistan 1990
Site Plan
      
97
Khuda-ki-Basti Incremental Development Scheme
(Case)
Khuda-ki-Basti Incremental Development Scheme,
Hyderabad, Pakistan 1990
Aerial View of Site
98
Khuda-ki-Basti Incremental Development Scheme
(Case)
Exterior View of Development
Khuda-ki-Basti Incremental Development Scheme,
Hyderabad, Pakistan 1990
99
Khuda-ki-Basti Incremental Development Scheme
(Case)
Khuda-ki-Basti Incremental Development Scheme,
Hyderabad, Pakistan 1990
Typical Shelter
100
Khuda-ki-Basti Incremental Development Scheme
(Case)
Exterior, Courtyard of a House
Khuda-ki-Basti Incremental Development Scheme,
Hyderabad, Pakistan 1990
101
Khuda-ki-Basti Incremental Development Scheme
(Case)
Khuda-ki-Basti Incremental Development Scheme,
Hyderabad, Pakistan 1990
Typical Shelter
102
Khuda-ki-Basti Incremental Development Scheme
(Case)
Gathering of Community Members and Local
Authorities
Khuda-ki-Basti Incremental Development Scheme,
Hyderabad, Pakistan 1990
103
Increasing Effective Demand For Land For The
Urban Poor
Traditional government approaches have
concentrated on subsidizing the poor. The key
problem with subsidies is that with scarce
resources, most governments have been unable to
subsidize all the poor who need housing.
Subsidies are not sustainable and often do not
reach the intended target group. Subsidies in
general, make the poor dependent on the
subsidizer, be it the government or a
non-governmental organization
104
Increasing Effective Demand For Land For The
Urban Poor
  • Effective demand is defined as demand for a good
    or service which can be paid for.
  • There are two basic elements to increasing the
    effective demand of the poor organization and
    access to finance.

105
Increasing Effective Demand For Land For The
Urban Poor
South Africa - The Housing Subsidy Scheme is the
main programme for delivering urban land to the
urban poor. over 1.4 million subsidized
plots/houses have been delivered since 1994.
Subsidized housing delivery in the 1994-2003
period averaged 158 000 units per year, which is
less than the estimated annual growth in the
urban backlog (which was estimated by the
Department of Housing in 1997 as 178 000
households per year). The net result has been
growing informal settlements and growing numbers
of inadequately housed people, especially in
metropolitan areas. For example, in Cape Town the
estimated number of shacks in informal
settlements increased from 24 000 in 1993 to 68
000 in 1998 to 83 000 in 2003.
106
Housing Rent Market for the Poor
It should be noted that the great majority of
shelter is provided by individuals today through
private ownership and subletting. Renting as a
means of getting access to affordable shelter is
becoming more and more common. A large
proportion of residents in cities and towns of
developed as well as developing countries are
tenants. Despite this, the number of governments
actually trying to support rental housing
development is rather small.
107
Housing Rent Market for the Poor
The cities of developing countries have very
different kinds of housing and land systems.
Where it is possible to obtain land cheaply the
poorest of the poor often build their own
accommodation. In other cities, they do not have
this choice and, if they are unable to share,
they rent accommodation. Consequently, in some
cities, when differences in age, family
structure, etc. are discounted, tenants tend to
be among the poorest families. In other places,
there is a more complicated pattern some
informal settlement owners may be quite affluent
and others very poor, with tenants somewhere
between the two.
108
Community Organizations
  • The poor as individuals are seldom able to afford
    land and housing. Experience has shown that the
    poor as a group are able to afford not only land
    but also housing. They are also better able to
    negotiate with the government or the private
    sector as a group rather than as individuals.
  • Community-based organizations take several forms
    from welfare associations, to slum-dwellers
    federations to coalitions of poor. Communities
    often organize themselves when they face a common
    threat or need, such as the threat of eviction or
    the need for water supply.
  • Non-governmental organizations have played a
    major role in organizing the poor. They have
    assisted the poor in building their capacities to
    work in group environments and to negotiate with
    government or the private sector.

109
Missionvale Community Housing Initiative South
Africa (Case1)
The Missionvale Community Housing Initiative
based in Port Elizabeth, although essentially an
innovative housing project initiated by the Delta
Foundation, approaches the provision of housing
to the poorest of the poor as a process which not
only provides for the physical needs of the
beneficiary Community but also its social needs.
Set against the background of a significant
housing backlog which largely resulted from the
apartheid era in South Africa and the existing
Government's attempts to deliver adequate housing
within the context of the re-integration of South
African Cities, this project managed by a
Community Based Organisation, The Missionvale
Housing Development Trust (M.H.D.T.), uses the
process of housing delivery as a vehicle for
broader social reconstruction and upliftment.
110
Slum Networking of Indore City, India (Case2)
Slum networking is a community-based sanitation
and environmental improvement programme for the
textile manufacturing and industrial engineering
centre of Indore, to transform its 183 slums into
settlements that integrate the poor into the
urban population as a whole. This city of 3,218
sq. km has a total population of 1,400,000
(1995), 28 percent of whom live in the slums. New
government-built sewer, storm drainage, and fresh
water services follow the natural courses of
Indore's two small rivers near the heart of the
city. All of the slums face a riverbank. As an
incentive, a state government ordinance gave the
slum dwellers long-term land leases, and the
residents paid for and built their own private
toilets and washrooms. The rivers, once filled
with untreated sewage and solid waste, are now
clean, the streets paved, street lighting added,
community halls built, and the housing upgraded.
The dwellings of the poor are not slums any more.
111
Slum Networking of Indore City, India (Case2)
Aerial view
Slum Networking of Indore City, Indore, India
112
Slum Networking of Indore City, India (Case2)
Plan showing slums, proposed green areas, and
natural drainage patterns
Slum Networking of Indore City, Indore, India
113
Slum Networking of Indore City, India (Case2)
Aerial view, garbage and raw sewage once filled
the river bed
Slum Networking of Indore City, Indore, India
114
Slum Networking of Indore City, India (Case2)
Plan showing slum locations in relation to sewer
lines
Slum Networking of Indore City, Indore, India
115
Slum Networking of Indore City, India (Case2)
Street view, typical road in a slum before
improvements
Slum Networking of Indore City, Indore, India
116
Slum Networking of Indore City, India (Case2)
Site Plan
Slum Networking of Indore City, Indore, India
117
Slum Networking of Indore City, India (Case2)
Street view, newly paved streets have sewage
lines underneath
Slum Networking of Indore City, Indore, India
118
Slum Networking of Indore City, India (Case2)
Landscaped walkways along the river
Slum Networking of Indore City, Indore, India
119
Slum Networking of Indore City, India (Case2)
Street view, footpaths, storm drainage, sewerage
hook-ups, and street lighting
Slum Networking of Indore City, Indore, India
120
Slum Networking of Indore City, India (Case2)
Street view
Slum Networking of Indore City, Indore, India
121
Increasing Savings and Providing Access to Finance
It should be noted that the poor are not without
income. What they lack is capital. Formal lending
institutions, such as banks, often require
collateral which the poor cannot provide. The
poor feel intimidated or unable to deal with
banking procedures which require high levels of
literacy. Experience has shown that
community-based savings-and-credit schemes assist
the poor in increasing their incomes and capital.

122
Increasing Savings and Providing Access to Finance
Community-based savings-and-credit schemes
preserve organized communities and increase the
status of women in the community in addition to
providing access to finance. In many countries ,
savings-and-credit schemes have formed
federations or loose coalitions and as such
control sizable capital. Governments can assist
this process by creating finance facilities which
act as reserve banks for these "mini banks of the
poor".
123
Increasing Savings and Providing Access to Finance
Philippines Community Savings and Credit One
community dollar equals a thousand development
dollars" It has been said that a single
community dollar is equal to a thousand
development dollars, because that community
dollar represents the commitment of thousands of
poor people to their own development.
124
Increasing Savings and Providing Access to Finance
Philippines Community Savings and Credit Without
the direct commitment of a savings scheme,
people can participate in any kind of
development freebie that comes along. But when
development comes from people's own savings,
it's theirs, they own it. Without this,
development and improvements have no meaning
Payatas community 1999
125
Community-based Women-oriented Initiative to
Fight Poverty, Kerala,india
Case The urban CDS system of Kerala offers the
poor urban women an open forum to express their
anguish, anxieties, aspirations and developmental
needs. After identifying and prioritizing the
developmental needs, the poor women themselves
formulates micro plans to overcome their
problems. Moreover the women themselves implement
various poverty reduction programmes. For
economic and social empowerment of poor women,
promotion of micro enterprises for the
sustainable development of poor families and
educational and cultural upliftment of target
class etc. get priority in CDS structure, formed
under Kudumbashree Mission.
126
Bring the Poor Into The Formal Land Market
  • Recommended Cases for Assignment
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    Study Of Khuda-ki-basti In Hyderabad, Pakistan
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  • Upgrading Of Low Income Settlements --Senegal
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