KNOWLEDGE PAPERS Inclusive Cities and Access to Land, Housing, and Services in Developing Countries Design: miki@ultradesigns.com Cover photos: left/Bartus Hendrikse/Thinkstock.com; right/Zlikovec/Thinkstock.com. Back cover/Norman Krauss KNOWLEDGE PAPERS Inclusive Cities and Access to Land, Housing, and Services in Developing Countries Mona Serageldin Contributors: Sheelah Gobar, Warren Hagist, and Maren Larsen February 2016, No. 22 Urban Development Series Produced by the World Bank’s Social, Urban, Rural & Resilience Global Practice, the Urban Development Series discusses the challenge of urbanization and what it will mean for developing countries in the decades ahead. The Series aims to explore and delve more substantively into the core issues framed by the World Bank’s 2009 Urban Strategy Systems of Cities: Harnessing Urbanization for Growth and Poverty Alleviation. Across the five domains of the Urban Strategy, the Series provides a focal point for publications that seek to foster a better understanding of (i) the core elements of the city system, (ii) pro-poor policies, (iii) city economies, (iv) urban land and housing markets, (v) sustainable urban environment, and other urban issues germane to the urban development agenda for sustainable cities and communities. Copyright © World Bank, 2016 All rights reserved Global Programs Unit; Social, Urban, Rural & Resilience Global Practice World Bank 1818 H Street, NW Washington, DC 20433 USA http://www.worldbank.org/urban This publication is a product of the staff of the World Bank Group. It does not necessarily reflect the views of the Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. This note is provided for information only. The World Bank has no responsibility for the persistence or accuracy of URLs and citations for external or third-party sources referred to in this publication, and does not guarantee that any content is, or will remain, accurate or appropriate. Acronyms ANHI Agence Nationale de Lutte contre l’Habitat Insalubre (National Agency for the Fight against Unsanitary Housing) ARRU Agence de Réhabilitation et de Rénovation Urbaine (Urban Rehabilitation and Renovation Agency) CBO Community-Based Organization CEDEST Centro de Estudos das Desigualdades Socio Territoriais (Center for Social- Territorial Inequalities Studies) CODI Community Organizations Development Institute GCC Gulf Cooperation Council GDP Gross Domestic Product IDB Inter-American Development Bank IMV Instituto Municipal de la Vivienda (Institute of Municipal Housing) ISDF Informal Settlements Development Facility KIP Kampung Improvement Program MENA Middle East and North Africa MIG Municipal Infrastructure Grant NGO Nongovernmental Organization RDP Reconstruction and Development Program SEWA Self-Employed Women’s Association UDCO Urban Community Development Office ZEIS Zonas Especiais de Interesse Social (Special Zones of Social Interest) iii Contents Acronyms iii 1. The Growing Importance of Inclusion in Urban Areas 1 1.1 Defining Inclusion 2 1.2 Measuring the Dimensions of Exclusion: São Paulo’s Exclusion/Inclusion Indicator Mapping 3 2. Trends Affecting Social Inclusion in Urban Areas 4 2.1 Demographics 4 2.2 Mobility and Migration 5 3. Infrastructure and Public Services: A Powerful Tool to Promote Social Inclusion 7 3.1 Rethinking the Approach to Slum Upgrading and Regularization of Informal Settlements 7 3.2 South Africa’s Municipal Infrastructure Grant Program (MIG) 9 3.3 Access to Public Services: Social Missions in the the República Bolivariana de Venezuela 10 4. Restoring the Social Function of Public Space 11 4.1 Rio de Janeiro’s Favela Bairro Program 11 5. Access to Land: A Critical Factor at the Core of Inclusion and Exclusion 13 5.1 Regularizing Tenure in Informal Settlements: Impacts on Social Inclusion 13 5.2 Impacts of Property Registration on the Inclusion of Informal Settlers 15 5.3 Integrated Projects to improve the Living Environment: The Role of State Agencies 16 5.4 Egypt’s Informal Settlements Development Facility (ISDF) 18 6. The Erosion of Inclusive Options for Affordable Housing 20 6.1 Affordable Housing and Spatial Segregation in Chile 21 6.2 Looking to Rental Markets as Instruments of Inclusion 22 iv 7. Generating Revenues to Finance Urban Improvements: Land-Based Financing 24 7.1 Cuenca’s Improve Your Neighborhood Program 25 8. The Right to the City 27 8.1 Implementing the Right to the City in Brazil 27 8.2 National Legislation and Local Implementation: Colombia’s Policies of Decentralizing the Improvement of Lower Income Settlements 29 8.3 An Emerging Urban Agenda in the Middle East 30 8.4 Recife, Brazil (ZEIS) 31 9. NGOs and CBOs as Strategic Partners in Driving the Implementation of Inclusionary Programs 32 9.1 Grassroots Initiatives: A Rights-Based Approach 32 9.2 SEWA 33 9.3 CODI, Thailand 33 10. Concluding Remarks 36 References 39 Appendix 1: Indicators of Urban Exclusion and Inclusion in São Paulo, Brazil 41 Appendix 2: Property Tax and Registration in Middle Eastern Countries 43 Appendix 3: Statistical Appendix 45 Appendix 4: Resources 48 Endnotes 51 v 1 The Growing Importance of Inclusion in Urban Areas Historically, urban society has always been stratified and ness sector have found well-remunerated jobs and avenues somewhat hierarchical. Economic forces and political for upward mobility for both young men and women. In events have shifted people among strata and reshuffled the Mashreq countries of the Middle East, women now the composition of elites. Palaces and streets lined with account for close to half of enrollments in universities, the mansions of notables have continued to stand in sharp even in the engineering departments. contrast to the unsanitary tenements where the poor crowd. Today’s concern with the situation emanates from In China, although the gap between urban and rural the convergence of several forces that have affected the incomes and the disparities within cities have widened, city’s traditional role as the locus of upward mobility. household incomes have all increased albeit at different rates. Massive migration to cities has absorbed surplus The growing disparities in income and wealth experienced rural labor and supported rural development through re- worldwide since the mid-1980s have contributed to the mittances. This feeling of improvement in one’s condition erosion of social cohesion in cities and created a patch- has helped minimize social unrest except in situations of work of disjointed urban areas linked physically by trans- eviction, appropriation of land, and loss of employment. port networks but sharing few other connections. In the In Brazil and the República Bolivariana de Venezuela, past two decades, the widening gap in wealth and oppor- programs extending public services, microcredit, and sub- tunity has fractured urban society, and the pervasiveness sidized housing helped lift a significant segment of the of corruption at all levels of governance has led to public population above the poverty line and have led to a wide- institutions being viewed as cumbersome and exacting spread feeling of decreasing exclusion. bureaucracies and ruling elites as insular and acquisitive (see figure 1.1). Figure 1.1 Inequality in Selected MENA and Latin American Countries The sheer scale of urbanized areas affects spatial and so- 50 60 cial cohesion. Rapid technological change has accelerated 45 this process. Cultural attitudes are increasingly influenced 50 40 by unfiltered information on the internet and in particu- Percent of total income 35 40 Gini Coefficient lar the propagation of images of modernity, wealth, and 30 achievement. This has contributed to one of the most so- 25 30 cially significant trends in the past three decades, namely, 20 the rifts within the middle classes, which have tradition- 15 20 ally acted as the flexible hinges linking the upper and low- 10 10 er strata within the social structure. The neighborhoods 5 where the middle classes live, their housing conditions, 0 0 and their way of life shape the perceptions and aspirations p. o ic a l le a o zi c ic isi bi bl hi Re a oc ex om n C pu Br Tu or b M of poorer strata and hence play an important role in defin- Re ol ra M C ,A ab ing exclusion. Differences in lifestyles within the middle t Ar yp Eg n ria classes attributable to differences in incomes have been ag- Sy gravated by diverging cultural attitudes mainly due to dif- n Income share held by the highest 10% n Income share held by the lowest 20% ferences in levels and quality of education. Those able to ● Gini Coefficient acquire the skills required to function in the private busi- Source: World Bank Indicators, latest available. 1 2 Inclusive Cities and Access to Land, Housing, and Services in Developing Countries An expected consequence of the growing perception and tion by gangs that operate and control migration routes reality of exclusion is political destabilization and civil un- and by labor contractors and employers; the latter issues rest where modern technologies and the media played a affect particularly temporary and seasonal workers, house- major role. Turmoil and civil strife erupted in the larger hold domestics, and day laborers. cities in the Middle East. In Iraq, Libya, and the Syrian Arab Republic, widespread destruction of the urban fabric The social dimension of exclusion encompasses barriers and the fragmentation of cities into ethnic and religious that are more difficult to break down. Prejudice and dis- enclaves reflecting the cleavages within the society have crimination embody cultural behavior patterns (ethnic, created a challenging situation of exclusion that will have religious, and customary) that are deeply rooted and hence to be addressed during postwar reconstruction. difficult to overcome. Behavioral distance and marginaliza- tion lead to an uncaring attitude toward certain segments Throughout the developing world, rising levels of social of the population resulting in delay or denial of access to consciousness and societal expectations of governments public services. Practices and behavior patterns considered have sharpened perceptions of inequity and exclusion and acceptable and normal in one cultural setting can be viewed fueled forceful demands for economic opportunity, social as discriminatory and marginalizing in another cultural set- inclusion, and meaningful participation in governance. ting. No universal norms are found, but we find fundamen- tal principles of rights, equity, and security. 1.1. Defining Inclusion The spatial dimension is a cornerstone of social inclu- sion and deserves more attention than it usually receives. The concept of inclusion encompasses a multidimensional Spatial issues when they are considered focus on access web of interconnected factors that can become mutually to infrastructure, basic public services, and road improve- reinforcing. On a negative path, these factors interact to ments lumped together under the title of “upgrading the trap people in a stigmatized space of poverty and margin- quality of the living environment.” Urban land underpins alization. Working in the opposite direction, they can lift all spatial issues, and access to land is a fundamental factor people out of social exclusion. to foster inclusion. At the city level, inclusion is easier to define than to mea- Informality is not in itself a barrier to inclusion because sure. Although general agreement is found on the key fac- tors that contribute to its economic dimension, wide vari- different categories of settlements with different irregulari- ations surround the relative significance of many aspects ties are lumped under this designation. In terms of land, it of its social, spatial, and environmental dimensions that originally referred only to areas where land ownership was encompass cultural differences in practices and behavior. acquired legally while subdivision and construction ac- tivities occur illegally without a permit and in violation of The economic dimension of inclusion basically involves existing regulations. Today the term is applied to all types job availability, earning capacity, and opportunity for ad- of unplanned settlements. Most informal settlements that vancement. Underpinning factors are the state of the lo- fit the original definition are in locations that can be inte- cal economy; skills and access to education and training; grated more or less easily in the city’s economic and social availability of public transport to employment centers; structure. When the infrastructure and public services in and access to noncollateralized credit and microfinance. such areas are adequately upgraded through public in- An important component of the economic dimension is vestments and community effort, the living environment migration and mobility, which allow people to move in improves over time. Some areas become regular middle- search of better economic opportunity. Cities are mag- class neighborhoods of the city whereas others reach only nets for rural migrants, particularly youth who find their lower-middle-income status because of their less desirable attraction irresistible. Larger cities are also magnets for locations, higher densities, and dearth of amenities, be- transnational migrants. Unskilled and illegal migrants cause the provision of such facilities requires displacement need to fend off discrimination, harassment, and extor- to clear the parcels on which they can be built. The Growing Importance of Inclusion in Urban Areas 3 1.2. Measuring the Dimensions ing the interlinkages among the different components of exclusion. The mapping highlighted the spatial dimension of Exclusion: São Paulo’s of urban exclusion while underscoring the importance of Exclusion/Inclusion Indicator interpreting physical indicators included in the quality- Mapping of-life index and socioeconomic indicators included in the Human Development Index with sociocultural in- One of the most ambitious studies to address the multiple dicators of deprivation, marginalization, and discrimina- dimensions of exclusion was undertaken by the city of tion reflecting the particularities of the place. At the city São Paulo with a research team led by Professor Aldaíza level, it is the interaction among the different factors that Sposatti of Pontifical Catholic University of São Paulo, determines the level of inclusion in the city. A complete at the CEDEST.1 The study analyzed the determinants of list of the indicators studied by CEDEST is provided in exclusion in the city’s districts at the subdistrict level. The Appendix 1. team identified seven main thematic dimensions of exclu- sion for which sets of measurable indicators were defined In analyzing the spatial distribution of the different indi- to provide an objective assessment of the level of exclu- cators, it is interesting to note that the composite index of sion: exclusion developed by the team shared but did not match the quality-of-life index. It was also clear that the two in- ■■ Self-Sufficiencies (five indicators) dicators that best reflected the exclusion/inclusion index ■■ Quality of Life (14 indicators) were income and education, key instruments in enabling ■■ Equality (two indicators) upward mobility. This study inspired other municipalities ■■ Human Development (15 indicators) in Brazil to look into urban exclusion applying simpli- fied versions of the São Paulo methodology. The work ■■ Lack of Conditions to Participate in Civil Society undertaken by Santo Andre, considered one of the best (two indicators) managed municipalities in Brazil, led to the creation in ■■ Living in a Situation of Social Limitations and 2001 of a new Secretariat for social inclusion within the Abandonment (four indicators) organizational structure of the municipality separate from ■■ Living under Daily Subsistence Conditions (seven the Secretariat for Housing and Urban Development. indicators). Programs aiming to improve the situation of lower- The range of values obtained for each indicator were income families have all sought to raise their purchasing indexed on a −1/0/+1 scale to provide a measure of the power through food, fuel, education, and housing subsi- level of exclusion relative to the city mean or to a rec- dies in the Arab Republic of Egypt, direct cash transfers ognized reference standard adopted by the city. Some in Brazil, or targeted services programs in the case of the economists and statisticians voiced technical reservations República Bolivariana de Venezuela and have managed about the methodology of creating composite indicators to deliver important results that contribute to fostering by summing sets of indexed values. These reservations inclusion, despite their inefficiencies and leakage. notwithstanding, the study team’s mapping of the differ- ent indicators at the district and zone level was impressive The national policies and programs and the local projects and effective at visually demonstrating the degree of de- reviewed in this report highlight the ingredients of suc- privation for each indicator of exclusion within the city’s cess, discuss the difficulty in organizing integrative proj- boundary. Furthermore, comparative assessments through ects, and underscore the shortcomings arising from acting overlays made a significant contribution to understand- on one dimension of inclusion while ignoring others. 2 Trends Affecting Social Inclusion in Urban Areas 2.1. Demographics Latin America and the Middle East share demographic and urbanization trends: Growth rates have declined over the past two decades, but youth constitute a large share of the population with the age groups below 25 accounting for 42 percent in Brazil and 51 percent in Egypt (see figure 2.1).2 As a matter of fact, large cities in Middle Eastern countries have the largest youth cohorts in the world. Improvements in transport and increasing mobility in different cultures allow young people to travel from villages to cities and between cities seeking employment and access to education and amenities. Figure 2.1 Youth Population: Selected Latin American and MENA Countries 250 60 200 50 Proportion of the population (%) Absolute population (millions) 150 40 100 30 50 20 0 10 l le a o p o ic a i az ic cc bi Re isi bl hi ex om n o C pu Br b Tu or M a Re ol M Ar C b t, a yp Ar Eg n ria Sy n Total population ■ Population (0-24) n Population (15-24) ◆ Population 0-24 as % of total ◆ Population 15-24 as % of total Source: World Urbanization Prospects, 2012 Revision (for the year 2010). 4 Trends Affecting Social Inclusion in Urban Areas 5 2.2. Mobility and Migration The combination of large numbers of entrants into the la- Studies by international and multilateral development bor force and the lack of stable employment offering living organizations focus on remittance flows seeking to chan- wages is driving hundreds of thousands of 20- to 30-year- nel them toward “productive” investment rather than old job seekers in poorer countries to leave in search of the “consumption”-oriented uses to which the receiving economic opportunity. The International Organization families put them (see figure 2.2). Lack of focus on the for Migration has documented the growing numbers of migrants’ own economic and social strategies has clouded young migrants worldwide driven by conditions ranging the contribution remittances make to both exclusion and from desperation to looking for better remunerated em- inclusion. Migrants readily accept exclusion in host cities ployment. Exclusion is a prime driver of migratory move- with the hope of achieving inclusion in the hometown ments. Unmet expectations in migrants’ home countries where it reflects on the family’s social status. in terms of employment and earnings are also a major motivator, whether expectations are realistic or not. Figure 2.2 Personal Remittances as Percentage of Gross Domestic Product (GDP), Selected Countries 25 20 15 10 5 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Honduras El Salvador Guyana Nicaragua Guatemala Belize Source: World Bank Indicators, latest available. a. Highest remittances-to-GDP ratio in Latin America (excludes the Caribbean). The need to minimize housing expenditures in host coun- migrants, the road to inclusion in the home city is pri- tries has given rise to migrant enclaves characterized by marily through investment in land. Access to secure oc- overcrowded lodging, hostels, and ethnic markets as well cupancy and tenure enables immediate access to housing as boarded-up businesses and buildings vacated by their and the opportunity to set up a business or add rental previous local inhabitants. These enclaves stand in con- units, as well as to incrementally build up the economic trast to surrounding neighborhoods and are “bad address- value of these assets for the next generation. The social es” that prevent those who live there from obtaining stable status conferred highlights the contribution of migration jobs. Those seeking upward mobility eventually leave.3 For to social inclusion. 6 Inclusive Cities and Access to Land, Housing, and Service in Developing Countries The decision to migrate is a complex one requiring weigh- ies in Argentina, Brazil, Chile, Paraguay, and Uruguay are ing current conditions and future expectations in the city becoming destinations for migrants from Bolivia, Colom- of residence versus potential risks and perception of pro- bia, Peru, and many Central American countries. Malay- spective earnings in destination cities. A survey by the Pew sia is attracting migrants in this rapidly developing region Foundation of a small sample of Egyptian youth in the im- despite the growth of local economies. These population mediate aftermath of the January 2011 revolution showed movements create situations of marginalization and exclu- that the momentous events did not significantly alter deci- sion. Peruvian migrants are marginalized and exploited in sions on migration (Pew Global Attitudes Project 2011). Ecuador. Colombians fare better in Chile (Jordan 2013). Nearly all large and many secondary cities of Latin Ameri- Wars and turmoil in the MENA region (Middle East and ca, Asia, Africa, and the Middle East are both sending and North Africa) have resulted in massive population move- receiving migrants at the same time. They act as gateways ments that have overwhelmed receiving cities. A signifi- for incoming migrants or stations on transnational migra- cant number of refugees and internally displaced persons tion routes where the ultimate destinations may be North from the wars in Iraq are physically and economically un- America, Western Europe, or the Gulf Cooperation able to reinhabit their former dwelling areas. The ongo- Council (GCC) countries. The economic crisis of 2008 ing Syrian crisis has displaced close to 7 million persons, and the recession in Italy and Spain are prompting poten- of which 4.3 million are internally displaced and 2 to 3 tial migrants to look to more prosperous countries around million have left the country. Jordan and Lebanon have them. In the Middle East, the GCC countries continue received about 1 million Syrian refugees each, and more to be the prime destination despite stringent work visa than 20,000 Kurds have crossed the border into Iraq’s au- requirements, spatial segregation, low-quality living con- tonomous Kurdish region. The majority of refugees are ditions, and social exclusion. women and children, and cities in receiving areas are hard pressed to provide basic needs such as water. The situation Elsewhere, intraregional migration is on the increase. In is being dealt with as a temporary humanitarian crisis. Africa, South Africa is the major magnet attracting mi- However, the lingering effects create pockets of poverty in grants from all over the Sub-Saharan region. Rapidly de- the cities of origin and enclaves of marginalization in the veloping Ghana and oil-producing Angola and Nigeria are receiving cities that can last for a decade or more after the destinations for workers from surrounding countries. Cit- resolution of the conflicts. 3 Infrastructure and Public Services: A Powerful Tool to Promote Social Inclusion Statistics on access to basic services in Latin America and Figure 3.1 Roads Paved (% of total) the Middle East are indicative of the progress made during 45 n 2008 n 2009 n 2010 the past two decades but cloud wide variations in quality. 40 In the MENA region, underserviced periurban areas and 35 outlying unserviced villages are urbanizing informally partly because of migration but more so because of intraurban 30 population movements. Three factors are fueling informal 25 urbanization: the demand for housing sustained by high 20 rates of household formation, the infusion of capital from 15 remittances, and the high cost of urban land. 10 In Latin America, with the exception of Brazil and 5 Guatemala, rural migration to the cities began in the 1950s. 0 However, the high rates of access to infrastructure still do ia il le a o az ic m hi liv not reflect the significant disparities in quality and cost ex na C Br Bo M Pa in cities due to the expansion of underserviced informal Source: World Bank Indicators. settlements and pockets of poverty and exclusion located in environmentally hazardous areas, most of which lack basic 3.1. Rethinking the Approach infrastructure and public services. A major concern is the to Slum Upgrading and inadequacy of roads and transport that impede access by Regularization of Informal emergency response services (see figure 3.1).4 Settlements Bolivia, Honduras, and Nicaragua trail the region in the Four decades of focus on infrastructure upgrading and provision of improved sanitation with rates straddling the provision of urban services in underserviced areas and the 50 to 60 percent mark.5 Drainage systems are im- unserviced urban extensions have improved living condi- portant yet often overlooked components in upgrading tions temporarily or more permanently in some areas of projects and are not reflected in current indicators. Lack most major cities and some secondary towns. Neverthe- of adequate systems exposes communities living in vul- less, they have had little impact on social inclusion at the nerable areas (floodplains, marshland, estuaries, shore- city scale. In all cities, spatial segregation has increased lines, natural drainage channels) and areas on or near and aggravated perceptions of social exclusion. steep slopes to risks of recurrent flooding and landslides, which disrupt access, isolate communities, and cause fa- Since the 1970s, upgrading programs often combined with talities, injuries, and damage to dwellings (see table 3.1). a project offering small serviced building lots have been the standard approach to address the deplorable unsanitary The spatial segregation, marginalization and exclusion of conditions under which the poor live. The World Bank underserviced communities and the social tensions they alone has funded more than 150 such projects. Each round create point to the necessity of integrating inclusion as of projects has introduced changes and new components a fundamental component in the development of infra- to the upgrading template and contributed to a better un- structure plans and in particular transport due to its im- derstanding of effects and accomplishments, particularly pact on mobility, asset building, and image of the area. through evaluations of achievements and impacts. 7 8 Inclusive Cities and Access to Land, Housing, and Service in Developing Countries Table 3.1 Access to Basic Services in Selected MENA and Latin American countries Latin America Access to Improved Sanitation Access to Improved Water Source Facilities (% of Population) (2011) (% of Population) (2011) Access to Electricity Country Natl. Urban Rural Natl. Urban Rural (% of Total) (2010) Brazil 97.2 99.5 84.5 80.8 86.7 48.4 98.7 Chile 98.5 99.5 90.1 98.7 99.8 89.4 99.4 Colombia 92.9 99.6 72.5 78.1 82.3 65.4 97.4 Mexico 94.4 95.9 89.3 84.7 86.7 77.4 N/A MENA Access to Improved Sanitation Access to Improved Water Source Facilities (% of Population) (2011) (% of Population) (2011) Access to Electricity Country Natl. Urban Rural Natl. Urban Rural (% of Total) (2010) Egypt, Arab Republic 99 100 99 95 97 94 99.6 Morocco 82 99 61 70 83 52 98.9 Syrian Arab Republic 90 93 87 95 96 94 92.7 Tunisia 96 99 89 90 97 75 99.5 Source: World Bank Indicators. The high price and rapid appreciation of urban land, still carry water to their houses, as do the residents in the which has far outstripped increases in incomes worldwide, outlying areas and upper floors of middle-class buildings and the focus of local authorities on land development in informal settlements in many cities in the Middle East potential under its most lucrative use rather than its most because of water scarcity and low water pressure. urgent social need is eroding the inclusionary impact of improvements in access to public services. In both Latin Low-cost sanitation options may be viewed by local au- American and Middle Eastern cities, households unable thorities as acceptable solutions, but they are unworkable to pay rent in an upgraded settlement are relegated to at the higher densities of lower-income areas in larger cit- finding accommodation in dilapidated housing in older ies and contribute to the pollution of the environment. slums often slated for demolition or in periurban areas at a Soils, aquifers, and water bodies are contaminated because distance of one to two hours’ travel time by local transport of overloaded, ill-maintained treatment facilities and il- means to locations where they find employment. Alterna- legal dumping of sludge in water courses by cesspit pump- tively, they settle on land exposed to natural hazards and ing truck operators. The social importance of water-borne areas affected by manmade risks such as garbage dumps sewerage is such that households purchase toilets well and sites affected by industrial pollution. When they have ahead of the sewerage network reaching their neighbor- no other option they settle on land they create themselves by dumping unconsolidated garbage in bodies of water, hood. From Fez to Caracas, toilets, bathrooms, and kitch- as in Guayaquil, Cartagena, and Cotonou or by living in ens (no matter how modest and badly installed due to lack shacks built on stilts in bodies of water as in Dhaka and of resources) are prioritized by limited-income families for Manila. both their functional use and social significance. Although the workings of land market account for the Since the mid- to late 1990s, three major programs have marginal locations where the poorer strata of the popula- considered social inclusion as a strategic objective of tion live, the statistics on access to services do not reflect public investment in improving the living environment the reality of the conditions in these areas. The poorer in- in underserviced, disadvantaged, and marginalized com- habitants of the steep upper reaches of favelas and barrios munities, which we will discuss in the following sections. Infrastructure and Public Services: A Powerful Tool to Promote Social Inclusion 9 3.2. South Africa’s Municipal infrastructure and local economic development, and en- hance the retention of funds in the community. Eventu- Infrastructure Grant Program (MIG) ally the local economic development program was merged with the MIG program. South Africa’s Municipal Infrastructure Grant program (MIG) was created in 1994 to ensure that “all communi- ties have access to at least a basic level of service.” It is one Between 1996 and 2004, the program completed more of the most ambitious infrastructure upgrading programs than 3,000 projects, and its budget peaked in 2004 at R in the world, on par with Indonesia’s Kampung Improve- 2357 million (about $475 million).7 By 2013, more than ment Program (KIP). KIP was started in Jakarta as a 5,000 projects have been completed, and the budget for the citywide health and sanitation initiative and became the 2013–14 financial year stood at R 14,352 million (about model for a national program to improve the living con- $1,435 million). Starting in 2005, the role of the national ditions in kampungs6 throughout the country. MIG was and provincial governments for program monitoring and conceived by the national government as a social inclu- evaluation was progressively limited, removing instru- sion and poverty reduction mechanism. Its mandate is to ments to supervise grant expenditures and assess program contribute to six strategic objectives aimed at overcoming performance. Not unlike their counterparts elsewhere, mu- the apartheid legacy. Upgrading the living environment nicipalities showed a lack of responsible management, in- and providing bulk infrastructure for the government’s cluding misuse of funds and corruption. The program as a housing projects are its primary mission. Other objectives whole has been badly underexpended at a time when gross include integrating divided urban areas, promoting social domestic product (GDP) was beginning to decline, youth equity, enhancing economic opportunity, generating em- unemployment was increasing, and civil unrest growing. ployment, and training local entrepreneurs and workers Project implementation is seriously lagging as decisions are including women and youth. deferred and payments to contractors delayed. The program was designed for geographic coverage and The difficulties experienced by the municipalities were speed of delivery at President Mandela’s request. It is attributed to poor financial management and lack of co- structured as a partnership between the three levels of ordination between planning processes budget cycles and government and the communities that initiate the fund- procurement procedures. These problems were taken into ing requests. The municipalities prioritize the requests, account in the Local Government Turnaround Strategy and the provinces review their eligibility before submit- adopted in 2009 and included among its five main priori- ting them to the ministry. Funds are transferred to the ties. A special agency, the Municipal Infrastructure Sup- municipalities, which manage implementation and take port Agency, was created to assist municipalities with the over ownership of the infrastructure and public facilities planning aspects. and assume responsibility for maintenance. At present, the ministry is drafting an amendment to the The allocation of funds is based on three criteria: the regulations on municipal systems and promoting inter- number of indigent families in the community with action with the provinces and other intergovernmental incomes below a set level ($343 a month in 2012), the entities to address the challenges faced by municipalities. lack of potable water supply, and the level of unemploy- Although legal and administrative measures are necessary, ment. MIG grants cover basic levels of services. Provinces they are unlikely to resolve these issues by themselves. and municipalities can supplement them from their own Monitoring and evaluation functions must be restored budgets if higher levels are desired. Interestingly, none to prevent performance from reaching dismal levels. A of the three levels of government included maintenance forceful program is needed to improve local technical and funding in their budgets. Since 1998 several amendments managerial capacities, enhance the qualifications of the have been made to the program to include upgrading and municipal staff, and address the pervasive political insta- rehabilitation of systems in settlements that could be im- bility and corruption that undermine the effectiveness of proved, reinforce the link between public investment in local governance. Furthermore, attention must be given 10 Inclusive Cities and Access to Land, Housing, and Service in Developing Countries to the maintenance of infrastructure and public facilities dren. The driving concept of Barrio Adentro was to build delivered by the program. Partnership agreements be- and run health centers within barrios and marginalized tween the municipality and community-based organiza- areas in the cities (see figure 3.2). tions (CBOs) have worked well elsewhere. Communities should be empowered to contribute to the maintenance of Figure 3.2 Barrio Adentro Clinic, Venezuela the improvements they requested and to hold municipal councils accountable for their responsibilities in ensuring the delivery of the services prioritized by the community to foster inclusion. 3.3. Access to Public Services: Social Missions in the República Bolivariana de Venezuela Access to health and education are among the most pri- oritized public services requested by underserviced lower- Source: Embajada de la República de Cuba, April 2012. http://goo.gl/us5Hga. income communities. In 2003 the República Bolivariana de Venezuela’s president Hugo Chávez launched social Launched in 2003, the first phase of the program aimed programs referred to as “missions” to improve the living to ensure medical care for the most economically dis- conditions of poor Venezuelans in domains of health, advantaged communities. A system was put in place to education, food security, housing, and job training. guarantee a doctor for every 250 families with a focus on preventive and primary care. From 2004 to 2005, the Today 26 social mission programs are working to in- program carried out more than 150 million consulta- crease the availability of badly needed services to vulner- tions (four times as many as the country’s conventional able segments of the population. They provide access to outpatient services). The second phase sought to provide health services, enable Venezuelans who did not attend advanced medical treatment; the third aimed at modern- or dropped out of school to complete their education; izing and improving health facilities and equipment; and ensure availability of basic food products with special ini- the fourth phase, launched in 2006, is building 16 highly tiatives focusing on children, the elderly, and those living specialized hospitals throughout the country. in poverty; issue legal identification documents; seek to restore land titles and improve human rights to the coun- As a result of the program, UNICEF has noted improve- try’s indigenous and vulnerable communities; give access ment in key health indicators: From 2000 to 2009, the to credit and financial support to purchase housing; pro- infant mortality rate fell from 27 to 15 per 1,000 births, mote culture and citizenship; offer financial assistance to and the children under age five mortality rate fell from poor women-headed households; attend to the needs of 32 to 17 per 1,000. These improvement levels exceeded the homeless; and provide job training. those of Brazil, Colombia, and Peru. In 2008, for the first time, the country achieved universal vaccination because The most widely known and internationally lauded pro- of Barrio Adentro.8 gram, Barrio Adentro has provided free health services within the barrios. The country had a free public health By providing free health services to the most marginalized system before the Chávez government, but hospitals were communities inside their own neighborhoods, Barrio Ad- underequipped and understaffed, and waiting times were entro has addressed an important factor of exclusion: the extremely long. Furthermore, the long distance between inability to access health care, leading to debilitation and the barrios and the hospitals made the trip to access health higher levels of morbidity and mortality, which contribute care difficult and unsafe, especially for women and chil- to impoverishment. 4 Restoring the Social Function of Public Space Whether conditioned by fear of insecurity or lack of social trust, a resurgence has been seen of semiprivate spaces reserved for selected user groups. Planners and social scientists deplore the proliferation of gated communities in today’s cities and note their adverse impacts on urban life. A parallel trend is the multiplication of semiprivate spaces where admission is limited by fees and special rules, exemplified by shopping malls, ethnic and religious meeting places, and recreation areas. The public space is thus being gradually stripped of its social function as a space where dif- ferent social groups and income classes mix, take a walk, stroll, shop in markets, enjoy an outing in green areas or city parks, or watch local youth play in the community sports field. In most cities in developing countries, public spaces outside elite areas are not well maintained and in many cases insecure. In informal settlements they are hostile and often controlled by gangs, particularly in outlying settlements where roadways are long and narrow with few trans- versal links. Inhabitants avoid spending time in these spaces beyond their function as circula- tion paths. Women and youth who are vulnerable to harassment and violence dread them and hasten to reach home. In favelas and barrios, women are often forced to pay exactions merely to walk and climb the steps up the slope to their houses. They constantly face the risk of urban violence, including vandalism of their homes if they do not pay the exactions demanded. Public spaces are also hostile when they are too large and neglected. Mothers do not want their children to play in such spaces despite the small sizes of their houses, fearing for their security. In many ways, public space shapes the image of a neighborhood (more so than buildings) and yet receives little attention compared to infrastructure and housing. Despite the landscaping shown on upgrading and housing project plans, usual cost overruns leave the space unfinished. Planners and urban designers have led the effort to restore and improve the social function of public space, especially lower-income neighborhoods. 4.1. Rio de Janeiro’s Program Rio de Janeiro’s Favela Bairro program (2003–10) ranks among the most ambitious programs undertaken by a local government to improve living conditions in its lower-income neighbor- hoods. The program included infrastructure upgrading (water, sewerage, road paving, and drainage) but also focused on the improvement of public spaces, street lighting, landscaping, and green areas and the provision of community facilities and sports fields, nurseries, laundry stations, and community centers. In the second and third phases, funded by the Inter-Ameri- can Development Bank (IDB), social services were added, including child care, youth training and activities, and workshop space for income-generating activities and training for women. The city added, under a separate program, computer stations and youth training, managed by community associations. 11 12 Inclusive Cities and Access to Land, Housing, and Service in Developing Countries IDB’s program evaluation in 2010 showed that the Favela of documenting rights. Despite the security of occupancy Bairro program had a limited impact on school attendance that improvement programs offer, it is clear that lack of but a significant impact on household wealth (15 percent a recognized right to land tenure affected investment in increase)9 mainly attributable to the increase in the value housing as opposed to home appliances as well as atti- of land and housing. It had no impact on employment or tudes toward the place. Starting in 2009, new instruments occupation. and processes were created by the Minha Casa, the Minha Vida program, and Law 11977/09, which subsidizes no- Independent assessments of the program’s impacts have tary and registration costs and offers home improvement generated much debate. There is little doubt that the loans to lower-income families who have a legal title to the Favela Bairro program did improve the living conditions land and a stable income equal to three minimum wages. in the favelas. In her review of two improved favelas, Dr. As noted by Dr. Perlman, the vast majority of favela resi- Janice Pearlman showed that despite the physical improve- dents are unable to meet these requirements and therefore ments, the place was still socially stigmatized. Those who cannot access the benefits offered by the program. mustered the means to move out opted to do so, creating a leadership vacuum. In subsequent years, drug-related Figure 4.1 Paraisopolis, São Paulo, Brazil gangs started to take control of some favelas, spreading urban violence in the surrounding areas. Local officials noted that the most violent areas were those where retail- ing of drugs took place, whereas those where wholesal- ing was transacted were much less violent. Rio’s effort at uprooting the drug trade from the city ahead of the 2014 World Cup generated heated controversy in view of the demolitions and displacements that are bound to increase exclusion. The IDB sought to promote land titling as part of the improvement package in the Favela Bairro program. The difficulties involved account for the fact that formal prop- erty ownership increased by only 3 percent compared Source: Herling 2009. with favelas that were not included in the program. How- ever, awareness increased of the importance of securing Conversely, formal titling without upgrading infrastruc- informal means of documentation such as sales transac- ture and improving the living environment has had minor tion documents. This is not surprising given the scarcity impacts on key indicators of inclusion, income, education, of documentation of land ownership in the favelas. In São and housing in Latin America. An evaluation of Peru’s Paulo, where the São Paulo Municipal Housing Secre- land titling program, which issued more than 500,000 tariat was improving the Paraisopolis settlement in 2005, land titles in Lima, shows that impacts on income were it was noted that out of more than 12,000 families in the small, impacts on housing improvements were marginal, favela, only 200 had a usucapion, a usufruct title gained and impacts on access to collateralized credit were insig- through prescription rights (see figure 4.1). To obtain this nificant. However, the impact of titling on property is title requires adjudication by the courts, which entails important for asset building by the poor (United Nations retaining the services of a lawyer and a lengthy process Human Settlements Programme 2012). 5 Access to Land: A Critical Factor at the Core of Inclusion and Exclusion Informal land development occurs because available land options are either unaffordable or too isolated and the public housing options accessible though government programs are incon- veniently located or not in line with family asset-building strategies. Small local contractors, strongmen, and speculators are key drivers of this dynamic, usually working in collaboration with land owners, municipal officials, and council members. In Latin American cities, they organize land invasions; in South and East Asia, they settle the poor on marginal, hazardous sites and along the edges of water bodies (as in Manila); and in Africa they illegally subdivide tribal lands and settle the very poor opportunistically in vacant and unbuildable spaces. Continued occupancy of land and incremental construction require constant interaction with local authorities. Over the years, this has created ubiquitous forms of institutionalized cor- ruption with some regional variations reflecting the particularities of land laws, local gover- nance systems, and the dynamics of urbanization in the area. Around the world, the pervasive corruption in local management of urbanization and its adverse impacts on cities has led to forceful popular resistance to displacement and loss of rights to ownership or use of land (see figure 5.1). Sporadically, community-wide demonstrations demand national governments to take corrective action. Land regularization programs, whether undertaken separately or as part of an area-upgrading program, require formal recognition of beneficial occupancy, usufruct, individual ownership of a lot, or common ownership of the site by the occupants. 5.1. Regularizing Tenure in Informal Settlements: Impacts on Social Inclusion Countries in the MENA region share legal background regarding land tenure shaped by me- dieval jurisprudence based on sharia law, local customs and traditions, and the Ottoman land code of 1858.10 Traditionally, registration of the different categories of tenure rights required a notarized document attested to by witnesses and filed with the courts, which validated it with the court seal (Tapu). Being in possession of a notarized document attested to by witnesses (Hujja) is recognized by the courts and considered a first step in the titling process. All coun- tries have created a new formal titling system but have not abolished the traditional system, which remains the most prevalent form of recording rights. This common legacy has resulted in the similarity of land management laws among Middle Eastern countries. Although local authorities regulate land use and development, subject to the powers granted under decentralization and national enabling legislation, tenure and registra- tion of real estate property along with transactions are regulated by national laws that define the different categories of primary and derivative rights and detail the procedures for their transfer through inheritance, sales, rental, and buy back as well as different forms of beneficial occupancy. 13 14 Inclusive Cities and Access to Land, Housing, and Service in Developing Countries Figure 5.1 Protests in Rio de Janeiro, Brazil (Left), and Istanbul, Turkey (Right), June 2013 Source: Marcelo Tasso, Agence France-Presse, June 20, 2013, http://afp-photo. Source: Taksim Square protests, Turkey, June 2013, http://www.ideastream.org/ tumblr.com/post/53508779818/brazil-rio-de-janeiro-people-march-in- news/npr/197380810. downtown#.VYbq4vlVikp. Jordan’s unaffordable minimum lot size has encouraged a boundary they would be subject to the controls in master sharp increase in joint ownership of land parcels, which plans, zoning ordinances, and other development regula- has become the predominant form of tenure in informal tions (UN-Habitat 2010). settlements. As a compromise, the state allowed titling of shares in a parcel, a process that has long been legally rec- In the Middle East, disruptions brought about by the on- ognized in Egypt and where it has fueled informal land going political events of 2011 are creating a new reality in subdivision.11 Recent efforts have been made to untangle affected countries. An outcome of the security breakdown the situations created by joint ownership of land and due to the civil unrest has been the chaotic expansion of overlays of real estate rights that impede the rehabilitation informal settlements driven by land speculators resulting and renovation of older districts and the conservation of in the loss of tens of thousands of hectares of agricultural historic centers. land in periurban areas and along transportation cor- ridors. Protests emanating from these outlying, poorer Since 1979, Syria has enacted laws to expropriate privately settlements played a major role in the current turmoil. held, unbuilt land: first around Damascus, and then in other cities to provide sites for social housing. The terms The destruction brought about by the ongoing war in of the compulsory purchase were considered as quasi- Syria will require a significant postwar effort to digitize confiscatory by property owners, who rushed to subdivide and update property records, as is happening in southern and sell plots on the informal market, giving rise to a belt Lebanon today. The situation will be complicated by the of informal settlements around Damascus and a string of high number of families who have left the country, the settlements to the south and west of Homs and Aleppo large number of internally displaced households, and the (UN-Habitat 2012a, 56). Laws enacted since 2006 aimed return of refugees in surrounding countries. to open up urban development to private investment and abolish joint ownership, which was viewed as an impedi- Iraq has faced a similar situation since 2003 with con- ment to planned urban expansion. The laws were resented flicts over land and property remaining unresolved in the by landlords and proved difficult to implement. absence of an appropriate legal framework to address the problem. Similarly in Libya, property rights that were A similar process occurs in growing cities in East and West already in a state of ambiguity before the civil war are Africa. Tribal council and property owners hasten to sub- threatened today by various categories of vulnerability divide and dispose of land by sale or right of use ahead ranging from forced eviction by private militias to unclear of annexation to the city’s jurisdiction. Within the urban tenure rights. Access to Land: A Critical Factor at the Core of Inclusion and Exclusion 15 In the GCC countries, older, deteriorated, and unplanned extension areas remain unregistered and informal devel- areas house mainly low-income migrant laborers and, in opment spreads, accounting for about 60 percent of the the special case of Saudi Arabia, a substantial number of urbanized area in Egyptian cities and 20 to 40 percent in pilgrims who overstay their visas. Current plans call for Morocco, Turkey, and other countries. The result of un- resettlement of these populations to allow for the rede- registered tenure is unavoidable illegal conversion of land velopment of these strategically located areas. If stripped from agriculture to urban use, underserviced subdivisions, of the buildings sitting on it, this land would command violations of existing codes to maximize the buildable area among the highest values in the cities. (land coverage), construction without permits, and mul- tiple code infractions, some of which can be structurally damaging. 5.2. Impacts of Property Registration on the Inclusion of From the viewpoint of social inclusion, unregistered titles Informal Settlers carry risks for land owners and occupants of premises, whether owners or tenants. Ownership can be challenged The document equivalent to a bill of sale documenting by third parties at any time. Notarized transaction docu- the sale transaction that gives buyers access to rural land ments are not recognized by the private sector including parcels or a share of a parcel affords security of occupancy the banks. Furthermore, settlers are vulnerable at any time that allows settlers to build on the parcel but leaves them to threats and exactions by local strong men and corrupt vulnerable to serious risks. In all countries, formal tenure local officials. Although outright eviction is usually avoid- rights are established only after the land is registered at the ed for political considerations, settlers can be harassed and official registry. charged exactions for construction, additions, and con- nections to utilities. This constant threat is governed by In Lebanon and Turkey, municipalities collect the reg- informal fee schedules specific to each city and subarea istration fees that contribute to their revenues and have specifying payments exacted per floor area, water point, kept the fees high. Where high registration fees have been shop space, and roof use. reduced (like in Egypt from 12 percent to a flat fee of LE 2000 [$300]) the fee is still quite high for lower-income A colonial legacy of unclear and insecure tenure claims in families. The registration process itself has not changed the Caribbean may be the major cause of the perpetuation and remains very cumbersome. It usually requires the of shacks in the informally urbanized areas of the islands, presentation of an official survey and description of the which are considered squatter settlements. parcels transacted, either undertaken by or checked and approved by the survey department. The owner must be The rate of appreciation of unregistered land is high but present to certify ownership and attest to the sale transac- still lower than registered property. Inability to register tion. real estate has a depreciating effect on the value of the main asset of limited-income families. Areas where the The registry recognizes only the last recorded owner de- bulk of the properties are unregistered acquire a reputa- spite the fact that the common situations encountered tion for being areas where titles are difficult and expensive include previous, unregistered transfers; multiple owners to issue, a reputation that deters private investment ca- as a result of inheritance and inability to locate original pable of generating a meaningful number of jobs for local owners; or one or more joint owners due to life circum- youths. Informal activities rarely employ more than one stances (death, migration, etc.). The typical bureaucratic person besides the owner. response is refusal to register. The only alternative option is to prove the validity of the transaction through the An urgent need is seen to establish a streamlined, trans- courts, which is expensive, requires retaining lawyers and parent, and inexpensive registration process to end the experts, and is very time consuming (taking several years). economic and social marginalization of lower-income It is no wonder then that land transactions in the urban communities and enable limited-income families to ben- 16 Inclusive Cities and Access to Land, Housing, and Service in Developing Countries efit from the full value of the real estate assets that they Morocco’s Agence Nationale de Lutte contre l’Habitat In- have financed from their own savings. salubre (National Agency for the Fight against Unsanitary Housing [ANHI]) faces a more challenging task because of the country’s larger size and its complex system of ur- 5.3. Integrated Projects to ban governance that divides powers between two levels Improve the Living Environment: of locally elected councils, appointed prefects who hold The Role of State Agencies the police powers, and a higher-level provincial author- ity. ANHI relies on the large reserve of publicly owned In North Africa, Morocco and Tunisia have both initiated state land to resettle bidonville residents in locations at a large-scale urban improvement programs since the late reasonable distance from the city center. Partial decentral- 1970s and created special public agencies to implement ization, the increasing scarcity of well-located state lands, them. and expanding informal urbanization shifted the interest of local authorities toward upgrading over resettlement, Tunisia’s Agence de Réhabilitation et de Rénovation Ur- echoing the demands of inhabitants. baine (ARRU) had essentially eliminated all the bidon- In 2004, Al Omrane was established as a government- villes in the country before the revolution of January 2011 owned holding company grouping the three major urban and considers that it has improved the living conditions agencies: ANHI, Attacharouk (a public real estate de- of close to 1.5 million persons (see figure 5.2). Its success veloper), and the Société Nationale d’Équipement et de is mainly owed to its reliance on the National Solidarity Construction (a public engineering and contracting com- Fund for 65 percent of its funding. Its ability to adjust pany). Al Omrane acts through 14 regional subsidiaries its operating modalities to the decentralization of gover- and is currently implementing the rehousing of bidonville nance in the 1980s facilitated its collaboration with lo- residents, social housing production for limited-income cal authorities. In 2012, in the midst of turmoil, ARRU families ($17,800/ house), and affordable housing for launched a program to improve the urban environment in moderate-income groups. To decongest the larger cities, deteriorated areas in 50 secondary towns.12 Al Omrane has been mandated to develop new towns, which include market-rate housing to cross-subsidize the Figure 5.2 Urban Rehabilitation and smaller units allocated to lower-income households. Renovation Agency (ARRU) Renovation Projects, Tunisia Reflecting the government’s launching of the national Cities without Slums program in 2004, Al Omrane’s activities have lowered the proportion of the Moroccan population living in slums from 8.1 percent in 2004 to 3.8 percent in 2011 according to the most recent national statistics. The degree of social inclusion achieved is debat- able mainly because of site location. The scale and plans of “New Towns” display separate sectors zoned for different housing typologies and income groups (see figure 5.3). In the Middle East, a longtime tradition sustained by me- dieval jurisprudence and modern laws prevents the demo- lition of houses except for the construction of roads and public facilities where it is determined that the project is in the public interest and on condition of compensation Source: ARRU Renovation Projects Gallery, http://www.arru.nat.tn/index. to owners and the provision of alternative housing to all php?id=428&L=2. displaced families. This legal requirement is very restric- Access to Land: A Critical Factor at the Core of Inclusion and Exclusion 17 Figure 5.3 Temsana—Al Omrane New Town, 2010 Source: Al Omrane (English translation by I2UD). tive for financially stressed national and local authorities. sanctions on future violators. These pronouncements and It has also laid the legal foundation for regularization of the delineation of urban perimeters for cities, towns, and informal settlements and confined resettlement to cases villages do not deter informal developers and settlers who of older dilapidated areas, high-risk hazardous sites, and only have to await the next blanket legalization regulariz- key localities needed for the implementation of cities’ ing their situation and delineating a new urban perimeter major infrastructure and critical facilities such as airports, farther out. transport terminals, port areas, and associated uses. Al- though applicable to public hospitals, universities, and In Jordan, the Housing and Urban Development Depart- other large-footprint facilities, displacement in these cases ment in the Ministry of Housing created a social unit is minimized by a degree of flexibility in site planning and within the department. Unit staff undertook an interest- later expansion in adjacent or noncontiguous sites. ing study to look at social change in the settlements that had been upgraded in the late 1970s and early 1980s.13 In Egypt the scale and rate of growth of informal settle- The assessment documented that the well-located settle- ments financed by remittances since the 1970s has over- ments had been integrated in the urban fabric and new whelmed the capacity of city and governorate authorities housing and multistoried buildings had replaced the to control development in periurban and outlying areas. former shacks, whereas those in locations that were The government response to chaotic urban expansion physically difficult to access remained unchanged despite since 1966 has been periodic decrees legalizing the de their upgraded infrastructure. In those that came to be facto situation on the ground and stipulating stringent regarded as regular city neighborhoods, the population 18 Inclusive Cities and Access to Land, Housing, and Service in Developing Countries had lost some of the original inhabitants at both ends of ing infrastructure works and public services to be under- the income spectrum. Twelve percent left because they taken by local authorities as part of their statutory respon- felt that they could afford bigger houses in an upper-class sibilities and in accordance with their budget allocations. neighborhood. Their financial condition had improved, Their density constitutes the only serious problem. The and they wanted their residence to reflect their upward lack of any vacant space within them entails some house- mobility. At the lower end of the spectrum, 7 percent holds having to be relocated to create sites for schools, left because they wanted to capitalize on the higher land clinics, and small sports and green spaces, an issue that is value of their lot. Relocating to a lower-priced area was not smoothly resolved without the mediating facilitation the best financial strategy for them since they had better of a specialized nongovernmental organization (NGO) use for the money in their strategy for self-improvement. that has both legitimacy and credibility within the com- Conversely, new middle-class residents had moved in, and munities. the total population increased in parallel with the increase in the floor area of buildings. The freedom and ability to The classification of settlements by ISDF identified those move underpins the dynamics of transition from segrega- that were dilapidated, unsanitary, or located in hazardous tion to inclusion. areas. Targeted as priority action areas, they house about 850,000 persons considered to be marginalized popula- tions. ISDF estimates that 75,000 subsidized housing 5.4. Egypt’s Informal Settlements units are needed to rehouse those living under the worst Development Facility (ISDF) conditions or in the highest risk areas. With Egypt losing twice as much agricultural land annu- The Facility extends credit to municipalities to imple- ally to informal urbanization than it is able to reclaim giv- ment projects. It has received seed funding to launch en the available water resources, the government adopted 25 projects in a first phase but must become financially a policy of drawing urbanization into the desert through sustainable thereafter. Given the scarcity of the resources development corridors and new settlements whose impact available to the Facility and cities, reliance on land-based on urban growth patterns can be felt only in the longer financing is the most functional option. Using in situ land term. To deal with the situation in and around cities, the readjustment as a key instrument, well-designed reblock- government established the Informal Settlements Devel- ing will release land with good redevelopment potential, opment Facility (ISDF) in 2009. The first executive direc- which can attract private investors and be auctioned off tor of the facility, Dr. Ali Faramaoui, prepared a national by local authorities to reimburse ISDF loans. The facility action plan based on a survey, mapping, and categoriza- has financed more than 100 small projects in 22 governor- tion of slums and informal and squatter settlements in ates, phasing projects to reduce the size of individual work the country. According to the physical criteria adopted packages and gauge the capabilities of the implementing by UN agencies, the 1,120 informal settlements housing authorities, as well as limit financial risk. Its 2012–13 close to 20 million persons, of which 70 percent lived in plan has been disrupted by civil unrest. In October 2013, Cairo and Alexandria, would be classified as slums while the governor of the Central Bank stated in an interview the vast majority were in fact middle-income areas.14 They that banks are ready to assume their social responsibilities are overcrowded because of the large household size and and will finance infrastructure in informal areas lacking the tradition of extended families. Some are still lacking services. He noted that the Ministry of Housing and the water-borne sewerage because the network had not yet Ministry of Local Development must agree and formally reached them though inhabitants use alternative sanita- designate the areas to be improved. The areas in question tion systems (septic tanks and cesspits). The areas are well are all well-located, deteriorated neighborhoods where integrated in the economic and social life of the cities land-based financing can be used. Using land as a guar- where they are located, and their middle-class inhabitants antee of economic viability underscores the reluctance of cannot be considered as suffering from exclusion. These the banks to assume the risk of extending loans to local settlements were simply temporarily underserviced await- authorities. Access to Land: A Critical Factor at the Core of Inclusion and Exclusion 19 Ensuring repayment is a concern for the Facility. The fact those who can afford the expense) will navigate the cum- that the Minister of Local Development is the chairman bersome and lengthy process of the current systems in- of the ISDF board may either facilitate or complicate this volving ministries, agencies, courts, and governorate and task. The presence of civil society representatives and ex- city authorities. perts on the board will help in addressing the second con- cern, which involves the establishment of a legal frame- Preliminary appraisals in 2010 put the value added of work to resolve the complex transactions required for the projects in the ISDF work plan at close to LE 3 billion, use of land-based financing for projects in urbanized areas for a public investment of LE 1.2 billion. 15 Admittedly, with multiple tenure and occupancy rights. Without such the turmoil since 2011 must have affected these figures. a framework and streamlined procedures for regulariza- However, it is clear from evidence throughout developing tion, titling, and registration of property transactions, countries that land-based financing is financially attrac- only the most compulsively law-abiding citizen (among tive in larger cities and metropolitan areas. 6 The Erosion of Inclusive Options for Affordable Housing In the 1950s and 1960s, projects in the Middle East and in most developing countries tended to focus on slum clearance, urban redevelopment, and public housing.16 By the early 1970s, the urbanized areas of larger cities and, in particular, the Megacities expanded rapidly while infrastructure lagged because of technical and financial constraints. The focus of government interventions shifted to slum upgrading and the regularization of informal settlements.17 De- centralization and amendments to planning laws gave local authorities the power to delineate areas to be upgraded and specify the urban planning and design standards that would apply in these areas. From the 1980s on, development activities turn to large-scale projects in the emerging met- ropolitan regions. New development plans and regulations focused on urban regeneration, satellite cities, and new towns. Morocco and Tunisia assembled compendiums of urban laws, codes, and regulations. Egypt’s Law 119 of 2008 integrated previous regulations governing land development and building construction but did not fundamentally amend them. The general trend became for land development companies and contractors to acquire land and obtain development permits for large housing estates, which are mostly developed as gated communities. Sometimes permits are issued pursuant to negotiated agreements with the mu- nicipalities including clauses making the developers responsible for providing part of the in- frastructure or building a new school in the area. In Jordan co-operatives acquire land, obtain permission to subdivide, distribute plots among their members, and request services from the municipalities. All such activities leave the burden of providing infrastructure and public services in part or in whole to the government. Turkey’s urban transformation law (updated in May 2012 by Law 6306) allows municipalities to clear shanty towns and informal settlements and relocate their residents in public housing and cooperative apartment buildings. Cities have used the law to clear strategically located sites that have high redevelopment potential (e.g., the highway corridor from the city center to the airport in Ankara). The relocation sites are invariably on the outskirts of the cities, resulting in improved housing conditions but also in spatial segregation. The construction company of the Greater Istanbul Municipality undertakes urban regeneration projects that replace older neigh- borhoods with apartment buildings and develop tall buildings on the periurban fringe for the resettlement of their inhabitants. Municipalities then provide them with infrastructure.18 Sustained demand for housing because of the high rate of household formation has created pervasive housing shortages for the urban poor and the middle classes. The severity of the shortages and the rapid appreciation of urban land have led to the emergence of land specu- lators capitalizing on the inertia or collusion of local authorities to take control of tracts of land. In Egypt they have tended to claim ownership of publicly owned land, sell apartments on the basis of a subdivision or design plan to middle-class families, and use the high down payment requested (40 to 50 percent of the cost) to finance construction. They bet on the 20 The Erosion of Inclusive Options for Affordable Housing 21 expectation that the government would not politically the production of affordable housing and has served as be able to demolish housing paid for by hard-working a model for many Latin American countries. Ill-advised families from years of accumulated savings whose pre- implementation decisions created segregated socially ho- dicament would receive supportive media coverage; mogenous neighborhoods. The problems arose from the proposals to resettle them elsewhere are usually decried sheer scale of the projects and their spatial isolation. Seek- as unfair and exclusionary.19 Recently efforts have been ing to expand affordability by containing costs required made to relocate inhabitants and recover strategically lo- walk-up typologies, smaller units, and large parcels at low cated public land. land prices. The projects produced physically and socially homogenous suburban neighborhoods at two to three In North Africa interesting adaptations of traditions have hours’ commuting distance from employment areas. In emerged, enabling poorer families who cannot access land the meantime, Chile’s economic growth lifted many resi- or housing on their own to enter into cooperative custom- dents to middle- and upper-middle-class status. They left ary contracts with others (usually close relatives) to purchase the project areas for more accessible neighborhoods with land and build a two- to three-story structure to provide better housing and public services. apartments for each family. This arrangement is particularly popular among lower-middle-income Moroccans.20 Recognizing the problem, Chile redirected its housing policies in 2010 to increase the proportion of housing subsidies available to vulnerable groups in areas closer to 6.1. Affordable Housing and and within the city center (see figure 6.1). New public Spatial Segregation in Chile housing projects are developed to accommodate mixed- income groups while zoning changes allow higher densi- Chile’s affordable housing program provided subsidies to ties along major transportation corridors to attract mixed- lower-income families and engaged the private sector in use developments. Figure 6.1 Location and Proportion of Vulnerable Groups’ Housing Subsidies, Santiago, Chile 2008–9 2010–12 Source: Francisco Irarrazaval, Chile Ministry of Housing and Urban Development, Nov. 2013. http://einstitute.worldbank.org/ei/webinar/towards-inclusive-cities- public-policies-neighborhood-upgrading-chile. 22 Inclusive Cities and Access to Land, Housing, and Services in Developing Countries In parallel, the government embarked on addressing the One of the biggest housing programs today was initiated recovery of the large stock of deteriorating unpopular in 1995 by South Africa as a component of President small houses in the suburban areas. An assessment de- Mandela’s Reconstruction and Development Program. termined that 55,000 “critical” houses were irrecover- Commonly referred to as the RDP housing program, this able. Residents were offered the option to agree among housing subsidy scheme gives households a fixed sum as a themselves for a coordinated transfer to better-quality grant to build or acquire a decent house (see figure 6.2). units. For the 200,000 recoverable units, the recovery The grant sought to cover the cost of onsite infrastructure program involves the resettlement of one-third of the and maximize production by capping the allowable price families to allow the redistribution of the vacant space of land.21 To date, more than 2 million small free-standing to the remaining families. The resettlement component houses have been built by private contractors within ster- has generated difficulties in the implementation pro- ile, unimproved public space at the edge of the urban- cess (Irarrazaval 2013). Similar renovation programs in ized areas. The program has improved living conditions France and in other European countries have also en- for millions of South Africans but has contributed little tailed resettlement. to racial integration and overcoming the legacy of apart- heid—which was one of its strategic objectives. In 2006 Chile launched a neighborhood “recovery” pro- gram administered by the Ministry of Housing and Ur- Cape Town experimented with alternative approaches in- banism and implemented by state and local authorities. cluding self-developed housing allowing larger units, two- The program, as part of its comprehensive set of urban and three-story walkups apartments in areas along major and housing policies, intervenes in vulnerable areas to transport corridors, and, most recently, land readjustment prevent their further deterioration and social segregation. and in situ reblocking in informal settlements. In addition to funding upgraded infrastructure and pub- lic services, the program provides for the improvement of connections to the city to overcome the isolation of 6.2. Looking to Rental Markets barrios. Residents prioritize improvements, but the agree- as Instruments of Inclusion ments reached have to be formalized by contracts with the municipality. Having managed to overcome initial resis- In its Report on the State of Latin American Cities, UN- tance by residents to engage in such contracts, the pro- Habitat (2012b) argued that greater attention must be gram received an increase in funding and has expanded given to rental housing as a strategy for low-income fami- (Nieto 2010). In 2013 it was active in 168 districts and lies and called for directing resources to rental subsidies affects 324,000 residents. rather than focusing on uncontrolled urbanization. Figure 6.2 RDP Housing, South Africa Source: I2UD. The Erosion of Inclusive Options for Affordable Housing 23 Most Western countries have various rental assistance and improvement of the urban environment, lower-in- programs that have been in operation for a long time. come residents and informal markets have been contained Each program works best as a component of an integrated in specific locations to make way for new commercial housing policy that includes assistance to promote access and business enterprises and attract middle- and upper- to homeownership and grants assisted credit for home income households back to live and work in the historic improvement and the renovation of older, deteriorating center (Rojas and Lanzafame 2011). buildings. Such an array of instruments reflects the seg- mented character of the social housing market. Exempting new construction from rent controls does little to provide rental units for limited-income families. In developing countries, where the price of urban land In the formal market, upper- and middle-income families is high, lower-income families usually rent accommoda- and remittance-receiving households build for themselves tions in informally built houses. Enormous huge demand and their children. Apartments are kept vacant until mi- is seen for rental housing for lower- and middle-income grant families return and children grow up. It is estimated groups as well as young professionals in Egypt, Jordan, that Cairo has more than 1 million vacant apartments and Syria, and Tunisia. tens of thousands are found in larger cities throughout the Unmet demand for rental housing is a challenging issue region (World Bank (2005)—an indicator of the degree in many countries, but government interventions in the of distortion introduced by regulatory legislation in the market have been counterproductive and should not be rental market. Poor families in unserviced settlements pay advocated despite their seemingly inclusive character. Rent more for water and other services than the public tariffs regulations and tenant protection laws often lead to the for metered consumption; they also pay surprisingly high collapse of the formal private rental market, which is what prices to developers and strongmen for occupancy of a happened in Egypt in the mid-1950s. Rent-controlled small lot and to house owners for renting one- or two- buildings, irrespective of their standing, deteriorate as rent room dwelling units well above the levels set by rent con- levels lag inflation for decades and fail to cover minimal trol laws and commissions, which are ignored in informal maintenance costs. Districts housing mostly salaried cleri- settlements. cal employees turned into slums embedded in the cities’ central areas through the decay of older middle-income All countries have some form of public housing program. districts. The most strategically located are usually slated Most of the production is aimed at lower- and midlevel for urban regeneration; others are candidates for reblock- government employees who cannot afford to buy or rent ing or renovation through partnerships between national on the formal market. In countries where the housing ministries, local authorities, and community-based asso- shortage is acute such as Brazil, Colombia, Egypt, and ciations depending on the particularities of the situation. Tunisia, public housing units are in high demand and are The improvement projects almost always include the re- being preempted by middle-income employees and sala- lease of part of the land that can be sold at market rate to ried workers. Many countries allow occupants to acquire cover part of the project cost. ownership of their dwellings after regularly paying rent In MENA and Latin America, the historic centers have for a specified time, usually 10 or 15 years. Projects built suffered under the dual influence of physical obsolescence on the urban periphery suffer from spatial remoteness and rent regulations, as is the case in Quito, Cartagena, and in most countries are allocated to rehousing families Fez, Tunis, Damascus, Mexico City, and Cairo. Planners, displaced by public works and natural and manmade haz- historians, architects, and conservationists have been ards. This common practice leads to spatial segregation of struggling without much success to achieve preservation families whose social and livelihood networks have already without excessive gentrification and commercialization. been disrupted by relocation. The exclusionary aspects of In Quito, one of the most successful cases from the view- these housing policies are discussed in different sections point of restoration and preservation of cultural heritage of the report. 7 Generating Revenues to Finance Urban Improvements: Land-Based Financing Municipalities levy development charges referred to as exaction fees paid by developers to cover the costs incurred to provide infrastructure and public services to developments. Granting de- velopment rights and allowing for building envelopes larger in height or in bulk than stipulated in zoning ordinances have been used to prompt developers to undertake public improvements and social projects. Cross-subsidization and mixing income groups by combining market-rate serviced parcels and low-cost building lots in urban projects have been widely used. However, the most creative financing methods rely on infrastructure and land regulations to open up the development potential of well-located sites and allocate the proceeds of charges paid by developers to improve infrastructure, housing, and the urban environment in lower- income communities elsewhere in the city. Linkage programs have been successfully used in several U.S. cities. Stretching payments over several years allows cities to charge higher fees and cushions the impact of the business cycle. In developing countries, the possibilities created by the rapid appreciation of urban land al- low for more innovative approaches. Well-structured financial schemes can channel the flow of funds through the private sector (developers, banks, contractors, and NGOs) with limited involvement by the city if it has the managerial capacity and political will to implement a community-led program in partnership with CBOs. Risk, however, must be adequately as- sessed with reference to inflation trends. Inclusion embodies the concept of equity, which demands that the poor have a right to a share of the state’s assets. In Middle Eastern and Latin American cities, this share is best delivered by secure land tenure as a first step in the process of asset building by the poor. Among the lower middle classes, informal housing construction is mostly funded by remittances. Providing the poor with access to land and infrastructure requires changes in systems and attitudes within local government and a marked improvement in the ability of the state to generate revenue by capturing a share of the appreciation in urban land values created by public investment in infrastructure. Urban land is the most rapidly appreciating commodity in Middle Eastern cities, doubling in price every two to three years since the mid-1970s.22 Yet the tradition of property taxa- tion based on rental income valuation makes it almost impossible to equitably tax vacant land and curb rampant speculation that has squeezed out of the informal land market the nonremittance-receiving households among the middle classes, whose only option is to rent housing in informal settlements. The property tax could and should be an important source of public revenue whether it is collected by national or the local governments. Yet reform of the tax has met with political controversy and operational difficulties that have impeded any significant progress on the issue. Tunisia is the only country that presumably uses capital value in the assessment of property taxes. In Egypt, the tax rate was reduced in 24 Generating Revenues to Finance Urban Improvements: Land-Based Financing 25 2008 from 60 to 10 percent of rental value to encourage these abuses. Interestingly, Orascom demonstrated that private investment in the housing sector, but a new real the program’s financial viability and environmental sus- estate tax law failed to pass because of its cumbersome tainability required relaxing the income ceiling to allow assessment and procedures and its ambiguous objectives. bracketing the median to have some market rate housing Algeria, Morocco, and Tunisia do not tax nonregistered and accelerate sales. Bringing in families in the 60th in- buildings, but Egypt’s tax department collects real estate come percentile is an argument that can also be made on taxes in informal settlements. Further details on the is- social inclusion grounds. sues complicating property taxation reform are given in Appendix 2 drawing in part on the experience of the The difficulties encountered in modernizing the property Istanbul Metropolitan Municipality. tax are going to affect public revenues of Middle Eastern cities for some time to come. Conservative political parties Lacking financial resources, Egypt turned to land-based and real estate interests tend to oppose proposed changes, financing, which worked well on the open market in the despite the increasing deviation of current systems from new towns to increase the private production of affordable the realities of urban land and housing markets. Govern- housing. The government offered private developers land ments therefore need to look to creative ways of financing in the satellite cities with access roads and offsite connec- social inclusion in cities. Latin America in particular offers tions to water and electricity at 20 percent of the cost on condition that they build housing affordable to families interesting models. below the national median income. All the land offered was sold. Orascom Housing Communities is build- ing 50,000 housing units in a first phase of an intended 7.1. Cuenca’s Improve Your 150,000-unit development. Fifteen thousand units using Neighborhood Program different housing typologies had been built in 2010 (see figure 7.1). It is not only the most ambitious affordable In 2010 Ecuador enacted a national decentralization housing project in the country but also the only one with law (Código Orgánico de Organización Territorial, a developer who abided by the full stipulations of the Autonomía y Descentralización) devolving to the local agreement. Other developers who took the heavily sub- level the responsibility for planning, provision of pub- sidized land built high-end housing. During the turmoil lic services, and management of property registries and of 2011, protestors demanding reforms often referred to cadastres. Among the fiscal resources made available to them is the plusvalía tax,23 a capital gains tax on property Figure 7.1 Orascom Affordable Housing transactions and a betterment tax computed according to Community: 6th of October New Town property frontage and appreciation, the latter not to ex- ceed 50 percent of its prior value. A decade earlier, the city of Cuenca initiated an innovative program to prefinance public services through payments by property owners. Cuenca is a gateway for Andean migration and receives about 40 percent of the remittances of Ecuadorian mi- grants. In 2000 the city launched the “Improve your Neighborhood Program,” an infrastructure-upgrading program designed to capture remittances to finance neighborhood improvements. The program is struc- tured as a partnership between the city, the private sector (banks, contractors, and engineers), and property owners. Projects were initiated in middle-income areas with a high Source: Orascom. percentage of owner-occupied housing. 26 Inclusive Cities and Access to Land, Housing, and Services in Developing Countries The city negotiates requests for improvements (road pav- owners by a factor of two to three. This appreciation ing, infrastructure, street lighting) with residents on each accounts for the enthusiasm generated by the program street. It undertakes the technical studies and allocates the and the list of pending applications. The municipality cost among property owners based on lot frontage. The does not incur outlays because the management fee and municipality then divides the works into small packages the additional receipts raised through the property tax for which construction permits and guarantee deposits not only covered its costs but also actually contributed to are not required to enable local engineers and contrac- its revenues. Property assessments are updated every five tors using local labor to respond to the tenders. Work years. packages are to be delivered in 60 days. The municipal- ity supervises implementation and gets a management fee In 2005 a new mayor renamed the program “Barrio of 12 percent. Property owners pay 40 percent of their para Mejor Vivir,” expanded its geographic coverage, and share of the cost charged up front with the remainder included recreational areas among the improvements fi- payable over five years. To maintain credibility and pay nanced. Now in a third electoral cycle, the new mayor has small contractors on time, the municipality negotiated an renamed the program “Barrio Solidario” and has included agreement with local banks by which they would issue parks and green spaces among the improvements to be the city loans at slightly below-market interest rates. The financed not only to improve the neighborhood but also funds are then used to pay contractor invoices directly, to increase the attractiveness of the city. and property owners make their payments to the bank or to the municipality. The municipality provides subsidies The success and popularity of the program account for its to poor families, retirees, and women-headed households continuity under several administrations. This is attribut- to enable them to participate in the program (Serageldin able to the creative financing structure, which enabled the et al. 2014). municipality to channel remittance flows to prefinance public investment in urban improvements and subsidize Upgrading infrastructure and landscaping of public space the inclusion of poorer families without incurring any fi- raised property values above the cost incurred by property nancial obligations. 8 The Right to the City Carrying forward the work on social inclusion and exclusion, the team at the Pontifical Catho- lic University of São Paulo spearheaded the demand that municipalities join forces to promote inclusiveness. The Statute of the City,24 adopted by parliament in 2001, legally mandated local authorities to regularize and service the favelas and informal subdivisions. The municipalities’ lack of enthusiasm to implement their new responsibilities led the social movements, political activists, and intellectuals to rally their forces and develop a declaration on inclusion, the Right to the City, which was circulated in 2004. The name captured the imagination of social activists and reform-minded professionals. It soon became ubiquitous throughout the developing world and was widely referred to in docu- ments by international NGOs and multilateral and bilateral organizations. It has now become quasi-synonymous with socially inclusion. However, the concept of the right to the city and the elements it embodies have been modulated in each region and country to reflect those fac- tors that are predominantly responsible for marginalization of segments of the urban popula- tion and exclusion of the poor from access to the assets and services that cities offer. Although inability to access to land, infrastructure, and public services is the prime cause of exclusion, the underlying factors vary among regions and cities. 8.1. Implementing the Right to the City in Brazil In Brazil, a partnership grouping social movements, NGOs, and academic institutions estab- lished the National Forum for Urban Reform to press for legislation fostering social inclusion. Their efforts led parliament in 2001 to adopt the Statute of the City (Law 257). The law pro- vides a framework supporting social inclusion as a collective right. In practice, it provided legal backing to social movements to press their demands at the state and local levels. The 1988 constitution strengthening decentralization, the law of fiscal responsibility redirect- ing municipal finance toward funding education and local services, and the Statute of the City bringing municipalities together to improve living conditions in the poorer neighborhoods constitute a powerful legal framework empowering cities to act on reducing disparities and promoting social inclusion. Lack of action by the cities prompted the National Urban Reform Movement to issue a plat- form declaration, “The Right to the City,” which included among its demands that cities implement the Statute of the City; adopt democratic and participatory management processes; improve housing quality and environmental sanitation for all their inhabitants; prioritize pub- lic services, particularly transport, education, and health; provide public security; respect hu- man rights; promote employment generation; and direct resources to “popular sectors.” The declaration underscored the fact that national legislation is necessary but not sufficient to change the situation on the ground. 27 28 Inclusive Cities and Access to Land, Housing, and Services in Developing Countries The “Right to City” declaration essentially embodies four In 2011 the Supremo Tribunal Federal curtailed munici- principles: democratic and participatory local governance, palities from levying a tax or imposing other sanctions on decent living conditions for all inhabitants, prioritizing property owners on account of disregard of the social func- the social function of real estate property, and sanction- tion of land. With pressure for development increasing in ing of owners who ignore the social function of land. The preparation for the 2014 World Cup and in anticipation creation of the Ministry of Cities in 2003 and the estab- of the 2016 Olympic Games, in 2011 the living condi- lishment of a council of cities in 2004, which for the first tions in the larger cities’ poorer areas were deteriorating.25 time in Brazil included civil society, added to expectations that the right to the city would finally be incorporated These observations seem contradictory on the surface into national urban policies. with statistics stating that 20 million Brazilians were lifted above the poverty line through the three programs anchor- Brazil’s Statute of the City contains a clear commitment ing President Lula’s social policy, namely, cash transfer to to social inclusion reinforced by the recognition given to the poor (Bolsa Familia), providing aid to small farmers, the social function of urban land, thereby prioritizing use and pension reform. The Bolsa Familia consolidated the value over market value. The concept is institutionalized targeted cash grants initiated by the Cardoso adminis- through the mandatory participation of city residents in tration, of which the most important program was the the formulation or amendments of its master plan. school grant (Bolsa Escola) offering poor families ($8–10 a month in 2000) per child attending school and supple- Implementing the law entails a reform of the instruments mented impoverished families with a food grant ($17 a and procedures to regularize land tenure and occupancy month in 2003). The consolidated cash transfer reached rights that has not yet been well articulated in the judicial about 116 families a month in 2009 (Ansell 2011, 23). In system. The long-established blurring of distinctions be- 2012 it was estimated that inequality as measured by the tween public and private values has affected urban gover- Gini coefficient had fallen from 0.518 in 2009 to 0.501 nance and delayed the courts’ willingness to change their in 2011.26 conservative legal interpretations (Fernandes 2007). De- The Bolsa Familia allowed the emergence of a lower spite the legislation, the entrepreneurial approach adopted middle class with household incomes ranging from $600 by cities tends to give precedence to projects that enhance to $1000. This income level enabled them to buy home the market value rather than the social value, most prob- appliances by paying in installments but did not give ably because of its contribution to local revenue and the them the financial capacity to access land and housing in scope it opens up for lucrative real estate development and middle-class neighborhoods. According to one estimate, land speculation. Master plans have been revised to reclas- the lower middle class constitutes more than 60 percent sify areas designated for social functions (see section 8.4) of the 12 million people living in Brazil’s favelas.27 The is- to areas for real estate development without the manda- sue raised repeatedly by Hermina Maricato regarding the tory public participation ever occurring. increasing marginalization of poorer populations under- scores the multidimensional character of social exclusion. Municipalities are cooperating with developers and land If improvement is confined to particular areas or popula- speculators and ignoring claims made under the Statute tion segments, disparities across the city remain wide and of the City law. The courts have sustained local authori- can even increase. ties’ viewpoint based on the powers granted to them by the constitution and the clauses in the laws regarding the primacy of city master plans. The ambiguity in the defini- tion of social function in arguments referring to use value versus market price contributes to further impeding the statute’s application. The Right to the City 29 8.2. National Legislation lenio served 1.9 million people, accounting for 30 percent of public transportation in the city.30 The system is oper- and Local Implementation: ated through a public-private partnership and financed by Colombia’s Policies of ticket revenues. It has been credited with easing conges- Decentralizing the Improvement tion and air pollution and reducing collisions, injuries, of Lower Income Settlements and deaths on the roads served by the system by 94, 81, and 88 percent, respectively.31 City regulatory documents stipulated in Colombia’s Law 38/77 carry legal strength. The law instrumentalizes the Medellín, recovering from widespread violence and civil 12-year master plan (Plan de Ordenamiento Territorial) strife, managed to institute a poverty reduction program through a capital improvement program, which the city “Medellín Solidaria,” which granted poor residents cash is obligated to abide by for nine years. In addition to a transfers and improved food security and access to health development tax, the law authorizes the levying of better- services, including a special health care program for early ment taxes (contribución de valorización), the taxation of childhood. It targeted poorer neighborhoods, defined appreciation in land value (plusvalías), and the freezing of as those with lower levels of Human Development and land prices upon announcement of a public project on a Quality of Life Indices, for investments in infrastructure, specified site. Beyond Bogota and Medellín, use of these transport, health, and education. It also experimented instruments to promote social inclusion in urban plan- with in situ rehousing for areas where housing was pre- ning and management has lagged. Decisions by a city to carious and vulnerable to natural risks.32 initiate projects not on the master plan can be challenged (Alvarado and Gouarne 1994). In contrast, Cartagena has not used the powers and tools made available by the national legislation despite its be- The promotion of social inclusion is a core policy concern coming an international vacation destination or precisely underlying the Housing and Environmental Improve- on that account (see figure 8.1). Behind the coastal high- ment Program. Leveraged funding is offered through end and tourism development, dense, lower-income several funds for regularization, upgrading, serviced sites, settlements are found, of which the largest is the one that and core housing with cofinancing provided by depart- stretches along the edge of the Cienaga de la Virgen la- ments and municipalities. Families receiving housing sub- goon (Mortarini et al. 2013). The settlement is now ex- sidies have had to provide at least 5 percent of the cost. tending on the lagoon by dumping infill of rubble and The program paved the way for the current generation trash to create land on which to build. Despite recurrent of programs providing subsidies to poor communities to flooding and pollution, the area remains attractive to low- upgrade infrastructure and improve the living environ- income families because of its proximity to employment ment.28 and urban amenities. Beyond constructing a section of peripheral road to prevent further encroachment on the Colombia’s case highlights the fact that national legisla- lagoon and proposing a rapid bus transit system south of tion enabling cities to foster social inclusion allow dy- the settlement and a water link to the airport, little has namic local leadership to launch great initiatives but is been done to alleviate the marginalization of the residents not sufficient to prompt recalcitrant municipalities to act. since a World Bank–funded project regularized the east- Bogota adopted a city constitution that commits it to ern section (1979–86) (Mortarini et al. 2013). work on building an inclusive city characterized by dig- nity and equity. To overcome segregation it has focused on In April 2012, Colombia’s president announced the planning, design, and transport to increase connectedness launching of a new policy through which the government among different parts of the city, improve security, and would provide 100 percent of the value of a low-cost enhance the attractiveness and use of public spaces.29 For house to “the poorest” families, including those affected example, in 2000 Bogota opened the 12-line bus rapid by natural disasters and those who reside in high-risk areas transit system, the “TransMilenio.” As of 2013 Transmi- who represent the bulk of the marginalized population in 30 Inclusive Cities and Access to Land, Housing, and Services in Developing Countries Figure 8.1 Spatial Segregation by Income, Cartagena, Colombia Income of Neighborhoods, Ranging from Income Level 1 (Lowest) to Income Level 6 (Highest) Income levels n Income level 1 n Income level 2 n Income level 3 n Income level 4 n Income level 5 n Income level 6 n Institutional/Other (No residents) Source: Secretaría de Planeación Distrital 2004. the cities.33 A new law will be needed to define the pro- 8.3. An Emerging Urban Agenda gram’s content and implementation procedures. Whether in the Middle East such a policy is financially sustainable is open to question. It is in effect a cash transfer but with much less flexibility Urban specialists and development experts believe that because it is linked to the cost of housing. As a poverty reduction and equity-fostering measure, its impact on re- the 2011 turmoil that erupted throughout the countries cipient’s income and asset building will be as significant of the Middle East is having a significant impact on the as it has in other cases that are quoted as models, namely, formulation of a new development agenda going beyond Brazil, Chile, and Mexico. However, given the rate of ap- the reform of governance. preciation in urban land values, the pressure to contain housing costs will result in siting projects on the outskirts The shape of the new systems that are emerging is still not of cities—perpetuating the urban patterns leading to so- well defined. However, the systems will have to respond cial exclusion. to overwhelming popular demand for security, employ- The Right to the City 31 ment, housing, and services as well as the demands of the ■■ The right to the city, which entails access to land, infra- intellectuals and youth who spearheaded the protests for structure, and public services. freedom, equity, and a voice in governance. Much overlap is found between these demands, hence the rallying of the Underpinning the three rights are different forms of subsi- middle classes to voice their support for change through dies that must somehow be funded by the state. massive demonstrations in the larger cities and the fo- cus on their own demands calling for restoring security; Hence, the prioritization of areas where reblocking and control of the rising prices of food, energy, and housing; land readjustment should occur enables municipalities to raising the low level of salaries and wages; and providing use land-based financing. Having the Ministry of Local jobs for themselves and their children. These demands are Development designate them legally as action areas with- essentially urban in character and reflect the challenges of in delineated boundaries allows the municipalities to alter daily life in the cities. With the exception of Libya and the the treatment of each site in accordance with the specific Republic of Yemen, they are framing the reform agenda in problems. Recife’s ZEIS is an interesting model that the countries that have experienced turmoil and are reverber- municipalities should consider. ating throughout the region. In discussing the key features of this agenda and relating 8.4. Recife, Brazil (ZEIS) them to policies fostering inclusive cities, Dr. Ali Fara- maoui, the former director of Egypt’s Informal Settlement In Brazil the city of Recife looked to partner with com- Development Facility, identified three major criteria for munities in fostering social inclusion by strengthening the each of two key dimensions of inclusion:34 capacities of CBOs. Forty-five percent of households in underserviced communities (earning less than minimum ■■ The spatial, environmental dimension, including ac- salary) and close to half of families having no legal right cess to land, infrastructure, public services, and avoid- to land occupy Recife’s delineated Special Zones of So- ance of all categories of site hazards. cial Interest (Zonas Especiais de Interesse Social [ZEIS]) (Fernandes 2011). In these zones, antigentrification land ■■ The socioeconomic dimension, including youth em- development and dimensional regulations ensure that ployment, childhood nutrition, and access to health regularization does not result in displacement of the poor services by vulnerable groups (infants, women, and the through the workings of the private real estate market. elderly). Residents in a ZEIS organized into CBOs approve the land planning and management regulations that will ap- Translating this agenda into a rights-based approach ply in the zone (Fernandes 2011). The strategy aims to would yield three basic rights that ensure inclusion: allow poor families to reap the benefits of land value ap- preciation due to servicing and titling and to build up ■■ The right to life, which implies food security, a tradi- their assets (Serageldin et al. 2003). Some specialists worry tional responsibility of the state since antiquity in the about the impact of spatial segregation and the potential region, which finds similar expression in Brazil’s Zero social exclusion it can create. Hunger program. ■■ The right to decent shelter, which has been an increas- ingly forceful demand since the late 1950s and 9 NGOs and CBOs as Strategic Partners in Driving the Implementation of Inclusionary Programs 9.1. Grassroots Initiatives: A Rights-Based Approach In developing countries, CBOs have limited managerial and financial capacity and are unable to scale up activities beyond the neighborhood level without the support of local authorities and national programs. Technical and financial assistance by donors and international NGOs is often needed to help CBOs undertake a pilot project. International NGOs, foundations, and UN agencies have recognized initiatives worldwide that focus on poverty reduction and improvement of the living conditions of poor families. The UN Habitat Best Practices Award Database and the Building and Social Housing Foundation’s annual World Habitat Awards databases offer a selection of innovative housing initiatives to improve the living conditions of poor and marginalized communities. The three examples of practices from Latin America and the Middle East briefly presented below reflect the diversity of initiatives that adopt a rights- based approach to housing. Egypt’s Better Life Local Housing Movement Program, initiated in 1997, has sought to im- prove housing, basic services, security of tenure, and offer construction training opportunities to local communities in the Minia governorate. Opting to bring a rights-based approach to this social mission, Better Life raises awareness of household’s legal rights to housing and land tenure. To date, Better Life has improved housing for 1,000 families and provided potable water and latrines to more than 5,900 families in the periurban areas.35 Argentina’s Institute of Municipal Housing (Instituto Municipal de la Vivienda [IMV]) con- siders housing a social right and works to improve the housing situation of lower-income families who live in shantytowns in the city of Rafaela. It aims to develop an approach to assist families who do not meet the eligibility criteria for access to government housing programs. In 2006 it started a pilot project involving 103 families living in dire conditions. Through the use of workshops and surveys, IMV led the group to define their housing needs and build their houses and helped them adapt to their new living environments.36 Brazil’s Association of Tenements in Central Areas was able obtain a 6,000-square-meter plot of land in the Santos city center, classifying it as a ZEIS with approved city funding. It began the construction of an initial 113 housing units while securing funds for additional units. In all 181 families have benefited from the project, and the group is convinced that promoting the right to adequate housing reinforces the right to the city for all.37 These three organizations and similar NGOs, advocating grassroots, local strategies, have been successful in empowering and mobilizing communities to improve their livelihoods and their living conditions. Some of these initiatives are replicable, but securing the financial and human resources needed to scale them up to the level of citywide programs faces several challenges. 32 NGOs and CBOs as Strategic Partners in Driving the Implementation of Inclusionary Programs 33 Local governments are generally not inclined to become were given security of occupancy of the land for 10 years, a partner in rights-based initiatives because they open up which could be extended for additional periods. The mu- demands that go beyond a commitment to a specific proj- nicipality selected the slums to be upgraded, which did ect. Banks refuse to provide loans to lower-income inhab- not include any of the slums fronting on the river. The itants and CBOs, forcing NGOs to take out loans in their city’s master plan designated the waterfront to be rede- own names to implement the projects. veloped for hotels and other high-end commercial uses.39 In the Middle East where local governments are wary of SEWA offered residents microcredit to pay for their share NGOs because of political considerations, larger cities of the infrastructure (the cost of household utility con- have tried to build an internal capacity for social outreach nections). Residents ended up paying directly for the in- within their organizational structure. Given the experi- frastructure and drawing on the microcredit for tearing ence of informal settlers with municipal permitting and down shacks and rebuilding houses following the manda- inspectional departments, their lack of trust of local au- tory setbacks required to allow for the right of way of util- thorities renders this approach difficult to successfully ity lines and paving of paths within the slums. Five years operationalize. after the program’s initiation, SEWA carried out an evalu- ation of its impacts. Improved potable water supply and sewerage had an immediate effect on health and income. 9.2. SEWA A marked decline in water-borne diseases resulted in lon- ger working hours, more workdays, and an enhanced feel- It is precisely this point that drove the Ahmedabad Mu- ing of dignity, particularly for women. Improved school nicipal Corporation in India to seek collaboration with attendance carries the hope of a chance to access lower the Self-Employed Women’s Association (SEWA) in middle-class status among the younger generation (Se- implementing the Parivartan slum-upgrading program rageldin 2001). (see figure 9.1). SEWA and its Mahila Trust housing a microfinance arm are based in Ahmedabad and were al- ready active in the slums where the poorest populations 9.3. CODI, Thailand of the city lived, mostly employed in low-skilled, badly remunerated occupations.38 The Mahila Trust staff was the Thailand’s Urban Community Development Office best positioned to organize the slum communities, create (UDCO) was a leader in working in partnership with women-headed community associations, and guide the communities and instituted community-led approaches dialogue and negotiations with local authorities. Residents to local development. It was established in 1992 as a Figure 9.1 Housing in Parivartan, India, before and after Upgrading Source: Mona Serageldin. 34 Inclusive Cities and Access to Land, Housing, and Services in Developing Countries poverty reduction agency under the National Housing Thailand’s City without Slums program. Cities prepare Authority and mandated to provide tenure security and three-year action plans, and slum communities are at the infrastructure services to communities (Boonyabancha core of every step of the process, including the selection of 2003). To scale up its community support program it had project components and standards and the prioritization to decentralize its operations. It organized savings groups of activities (see figure 9.2).40 in the communities and fostered the establishment of net- works of these CBOs to share experiences and cooperate SEWA’s and CODI’s approach of bringing to the pro- on problems of livelihoods, access to services, and hous- grams it implements its mode of operation, which focuses ing. Within the communities, UDCO channeled funds on fostering social inclusion processes driven by CBOs to through the networks to lend to their member CBOs. enable the poor to participate in shaping the projects in- Through this approach, it managed to institute a national tended to support them, builds the communities’ strength policy promoting community-led development at the city as well as their relationship with local authorities. As long and regional levels (Satterthwaite 2004). as CBOs are truly representative and inclusive to prevent their co-option by one group or partner, this approach In 2000 UDCO was merged with its rural counterpart remains one of the best models to deliver to the poor their to create the Community Organizations Development In- rights to food, shelter, and the city. stitute (CODI) as an independent public agency outside the ministry with its own board and budget. CODI rein- Civil unrest in the Middle East is prompting governments forced UDCO’s approach by linking the CBOs with local to address demands for enhanced security, employment authorities to create citywide networks better able to carry opportunities, higher minimum wages, reasonably priced out larger-scale programs. It diversified the components basic staples, affordable housing, and better-quality ser- of the support it offered and created linkages between vices. Ability to respond to these demands varies, with urban and rural communities (Boonyabancha 2003). larger cities and metropolitan areas getting the most at- UDCO had been a leader in using land readjustment tention. New governments in the region will make consti- and reblocking to enable the poor to live on the sites they tutional and legal changes. The degree to which they will occupy through negotiated agreements with the munici- promote decentralization is unclear, but civil unrest will palities. CODI continues this approach and ensures that not subside until they adopt measures to foster participa- land is held in collective ownership or long-term leasehold tion and inclusiveness. for a minimum of 15 years. CODI is also implementing Figure 9.2 CODI Projects, Thailand Source: CODI website, 2012. NGOs and CBOs as Strategic Partners in Driving the Implementation of Inclusionary Programs 35 Table 9.1 Selected Indicators for Parivartan, India, before and after Upgrading Indicator Before After Death rate 6.9 per 1000 3.7 per 1000 24.4% population suffering from illness 16.5% population suffering from illness Illness incidence incidence Males with occupation 71% 80% Females with occupation 28.6% 36.1% Productive hours 7 hours 8 hours Source: SEWA Mahila Trust, 2003. 10 Concluding Remarks Paralleling the increasing disparities in income and wealth worldwide since the 1980s, cities in developing countries have witnessed the emergence of a growing divergence of lifestyles, particularly within the middle classes, reinforced by the widening gap between the quality of public and private educational and health care institutions, spatial segregation, gated com- munities, and exclusive semiprivate amenities. This erosion of social cohesion and citizenship in urban society has sharpened the growing perception and reality of exclusion. Rising levels of social consciousness and social expectations have led to growing activism among NGOs and civil society. Demography has become a key factor shaping the perception of exclusion. Youthful popula- tions, particularly in the Middle East and Africa, have ushered in an eagerness to abandon views shaped by cultural traditions in favor of newer distinctions shaped by the lifestyles that wealth and achievement afford and by technologically defined concepts of modernity. Migra- tion enables the most desperate and the most entrepreneurial to accumulate savings to invest in achieving their improvement objectives. The associated remittance-driven real estate dynamics in sending countries has led to rapid increases in land values. The availability of the internet in the primary and secondary cities of the Middle East and Latin America has helped the coalescence of groups who share similar attitudes toward exclu- sion. In some countries, differences in viewpoints among groups account for the difficulty of reaching a consensus on an urban agenda and on urban policies promoting inclusiveness. Brazil’s landmark Statute of the City stands out as a rights-based legal mandate adopted by parliament. The term “right to the city” has captured the imagination of planners, social activ- ists, and NGOs worldwide, spearheaded by Latin American social movements and the Porto Alegre World Social Forum. In contrast to food security for which social definitions can draw on the precision of medical research and documentation, definitions of social inclusion have been mired in attempts to capture its complexities and different manifestations. The desire to ensure comprehensiveness has blurred the focus needed to give a rights-based approach the legal strength it needs to with- stand challenges where clarity and precision are of the essence. This weakness is exemplified by Brazil’s experience, where the courts have consistently sustained the primacy of city regulatory instruments over inclusion-based initiatives and demands and claims made under the Statute of the City, particularly in reference to the social function of land. Municipalities, with a few noteworthy exceptions, have shown remarkably little inclination to focus on social inclusion despite increasingly visible disparities and civil unrest. Decentraliza- tion and varying degrees of fiscal autonomy have not significantly changed their outlook. Their major concerns remain economic competitiveness attracting private investment and promot- ing real estate development. 36 Concluding Remarks 37 National laws mandating governments to assume respon- ing the interests of the private sector with the needs of sibilities for their poorer residents in Brazil and Colombia civil society and a policy of inclusion. have been met with mixed results. More generally, action is confined to the level needed to prevent social unrest and Despite calls for increasing attention to rental accom- enhance electoral strategies. Overriding economic and po- modation as an option to reach poorer strata, the rental litical objectives trump social considerations. market in most countries has been too distorted by ill- advised government interventions to fulfill this demand. All countries continue to fund social housing programs It is the informal settlements that provide a rental market for political reasons even as they seek more functional accessible to the poor, but it is an unregulated market that alternatives to deliver affordable housing. The experience is not devoid of selectivity, excessive charges, and harass- of Middle Eastern housing agencies in Egypt, Morocco, ment. and Syria exemplify the problems that have plagued social housing programs since the late 1970s when the price of National statistics on access to infrastructure and services urban land started escalating rapidly in the Middle East are misleading in that they cloud acute disparities in qual- and in the rapidly growing Sub-Saharan African cities ity and distribution. Conversely, assessment of deficien- where today land values are doubling every three to four cies should be linked to the dynamics of urbanization. years, such as Accra, Nairobi, Dar es Salaam, Dakar, and Larger cities in labor-sending countries and provinces Arusha. Government approaches to affordability include have experienced remittance-driven urbanization that has cost containment through lower land prices, whether overwhelmed their ability to extend services at a commen- capped as in South Africa’s RDP housing program41 com- surate rate. Devising ways of linking formal and informal puted as a residual after infrastructure and construction, providers of services enables improved servicing of areas or necessary to secure large tracts. Low land values imply not yet reached by the city’s systems. Cotonou’s water de- peripheral locations and spatial segregation leading to so- livery and solid waste collection initiatives facilitated by cial homogenization and marginalization. Chile’s efforts the Municipal Partnership Program is a notable example. to resolve the consequences of ill-conceived social housing programs are noteworthy. The proliferation of informal settlements is characterized by a mix of middle- and lower-income residents and a The Chilean government has completely redirected pro- built environment with an accumulation of code viola- grams to avoid marginalization. The new orientation is tions. In general, informality is far less exclusionary in the toward manageable scale, infill projects, and housing Middle East than it is in Latin America because informal subsidies close to the city center. It is complemented by settlers expect to be served and regularized and the mu- a major recovery program for the large outlying hous- nicipalities do not deny them that right, relegating issues ing stock. Morocco, which is experiencing a scarcity of of regularizing tenure to the inhabitants. state-owned land in its cities, has expanded the scope and scale of its social housing program to include both lower- Environmental differences between informal settlements, and middle-income groups and should carefully consider older slums, and opportunistically located bidonvilles Chile’s experience. within and on the periphery of the cities are reflected in the socioeconomic characteristics of settlers and the de- For their part, serious private developers and senior offi- gree of exclusion felt by residents. Significant divergence cials have argued that the economic viability of affordable is found between the appearance and reality of exclusion housing should rely on culturally adapted mixed-income among areas lumped under the all-encompassing category and mixed-use projects with an appropriate density to of informal settlements. Egypt’s ISDF survey, mapping, cover the cost of infrastructure and public services, main- and classification of the irregular settlements in the coun- tain affordability, and sustain a feasible cash flow. The try have demonstrated the concentration of the problem structure of the ZEIS model in Recife, with approval of in the larger cities and sharp differences in the quality of plans and regulations by CBOs, may be useful in marry- housing in accessible, easily serviceable areas compared 38 Inclusive Cities and Access to Land, Housing, and Services in Developing Countries to hazardous or remote sites that are technically and fi- NGOs seek to function as key partners of local govern- nancially difficult to service. Categorization allows public ment in creating inclusive cities through their ability to policy and action programs to prioritize areas where ser- support community-based service providers. In general, vice deficiencies are structural rather than just lagging. municipalities have welcomed this partnership only when it brings sources of funding capital investments in infra- Land lies at the core of social exclusion beyond its purely structure and public facilities but have rarely enthusiasti- spatial aspects. Access to land is the cornerstone of ap- cally embraced the “right to the city” concept that NGOs proaches designed to foster inclusion. Development po- advocate. This divergence of interest affects dependence tential and rapid appreciation create opportunities for a on intergovernmental transfers and politicization of de- range of creative investments. Unfortunately these same cision making. It has hampered the establishment of factors drive real estate interests and exercise a corrupting partnerships and impeded their smooth functioning. influence on local governance under both centralized and SEWA’s ability to organize a representative CBO in the decentralized systems. These same dynamics also render slums selected for upgrading empowers communities and land-based financing the single most important source strengthens their relationships with the local authorities. of generating local revenue. The case of Cuenca demon- CODI’s achievements reflect its capacity to manage a strates how creative financing methods can finance in- national community-led development program bringing frastructure, improve the urban environment, and foster together CBOs and municipalities. social inclusion. In Middle Eastern countries, the current political situa- Costly formal registration and titling procedures entail tion makes it difficult to enact new legislative regulations, that transactions and holdings continue to be recorded leading national and local governments to continue to let in parallel systems as in the Middle East or in informal the informal sector drive urbanization patterns. Security documents as in Latin America. Yet lack of registration concerns, brought about by the turmoil, will hopefully be of tenure rights exposes poor occupants to competing a temporary issue. In the meantime they have reinforced claims, harassment, exaction, and threats. exclusion as people of all income levels and within every residential street seek to protect themselves from potential National agencies in charge of addressing issues of poverty disorder and violence. reduction and upgrading of slums and informal settle- ments have called for streamlined procedures for regu- Irrespective of its outcome in individual countries, the larization to expedite land readjustment and reblocking turmoil in the Middle East since 2011 has shaken the old projects. Municipalities look to regularization to expand orders throughout the region. It has opened up a window the tax base and unblock the urban regeneration potential of opportunity for the implementation of badly needed in areas gridlocked by unclear tenure rights. The neces- reforms in governance that will reverberate throughout sity of devising and adopting less cumbersome procedures the operational sectors. This is already happening in coun- carrying nominal fees must be made on social inclusion tries that have experienced revolution. Demonstrations grounds since land is the fundamental building block en- have grouped people from various social classes, mobilized abling the poor to have assets of their own. by different grievances but united in their call for jobs, equitable wages, affordable housing, enhanced security, Activism by NGOs and social movements has been in- extirpation of corruption, accountability in governance, strumental in prompting action at the national and local and meaningful participation in the political process. levels. It is helping ensure that inclusion is viewed as a Even partial realization of this agenda would go a long mandate and a right to be enforced. In Brazil, activism way toward fostering inclusiveness in the cities. is helping the state to implement a comprehensive urban reform agenda promoting social inclusion in the face of opposition from entrenched bureaucracies, powerful real estate interests, and corrupt local officials. References Ababsa, M. 2010. “The Evolution of Upgrading Policies Jordan, Miriam. 2013. “Latin Migrants Turn Sights Away in Amman.” Paper prepared for the 2nd International from U.S.” Wall Street Journal, November 19. Conference on Sustainable Architecture and Urban Development, Institute Français du Proche-Orient, Kessides, Christine. 1997. “World Bank Experience with Amman, July. the Provision of the Infrastructure Services for the Urban Poor: Preliminary Identification and Review Alvarado, O., and V. Gouarne. 1994. “FINDETER: of Best Practices.” Environmentally Sustainable Financing Municipal Investment in Colombia. Development Staff, Transportation, Water, and Infrastructure Notes No. 7.” Transportation, Water Urban Development Department, World Bank, and Urban Development Department. Millennium Washington, DC. http://siteresources.worldbank. Paper. October. World Bank, Washington, DC. org/INTEMPOWERMENT/Resources/10142_ urban.pdf. Ansell, Aaron. 2011. “Brazil’s Social Safety Net under Lula.” North American Congress on Latin America Mortarini, A., C. Morgan, M. Serageldin, A. Stein, R. Report on the Americas 44 (22): 23–26, 39. G. Gomez, and W. Hagist. 2013. “Increasing the Resilience of Informal Settlements to Climate Change Boonyabancha, Somsook. 2003. “A Decade of Change: in Two Latin American Cities.” Lincoln Institute of From the Urban Community Development Office Land Policy, Cambridge, MA. (UCDO) to the Community Organizations Development Institute (CODI) in Thailand.” Poverty Nieto, María de la Lúz. 2010. “Quiero Mi Barrio, Reduction in Urban Areas Series Working Paper 12. Chile.” In Building Cities: Neighbourhood Upgrading May. International Institute for Environment and and Urban  Quality  of Life,  ed. E. Rojas, 123–35. Development, London. Washington, DC: IDB, Cities Alliance, DRCLS Harvard University. Fernandes, Edésio. 2007. “Constructing the ‘Right to the City’ in Brazil.” Social and Legal Studies 16 (2): Pew Global Attitudes Project. 2011. Egyptians Embrace 201–19. Revolt Leaders, Religious Parties and Military, as Well: U.S. Wins No Friends, End of Treaty with Israel Sought. ———. 2011. “Regularization of Informal Settlements.” Pew Research Center, Washington, DC. Policy Focus Report. Lincoln Institute of Land Policy, Cambridge, MA. Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat. 2013. Herling, Tereza. 2009. “Social Housing in São Paulo: World Population Prospects: The 2012 Revision. DVD Challenges and New Management Tools.” Cities edition. New York: United Nations. Alliance, Brussels, Belgium. Rojas, Eduardo, and Francesco Lanzafame. 2011. City Irarrazaval, Francisco. 2013. “Towards Inclusive Cities: Development: Experiences in the Preservation of Public Policies on Neighborhood Upgrading in Ten World Heritage Sites. Washington, DC: Inter- Chile.” World Bank e-Institute Inclusive Cities American Development Bank. Webinar Series. November 13. einstitute.worldbank. org/ei/webinar/towards-inclusive-cities-public- Satterthwaite, David. 2004. “The Community policies-neighborhood-upgrading-chile. Organizations Development Institute (CODI) in 39 40 Inclusive Cities and Access to Land, Housing, and Services in Developing Countries Thailand.” Brief summary of longer paper. UN- Graduate School of Design, Harvard University, Habitat, Nairobi. http://www.codi.or.th/downloads/ Cambridge, MA. english/Paper/CODI%20in%20thailand.pdf. Smolka, Martim O. 2013. “Implementing Value Capture Secretaría de Planeación Distrital. “Estratificación in Latin America (Policy Focus Report): Policies Promedio por Barrios.”Alcaldia Mayor de Cartagena and Tools for Urban Development.” June. Lincoln de Indias. Division Sistemas de Información. Institute of Land Policy, Cambridge, MA. Serageldin, Mona. 1990. Regularizing the Informal Land UN-Habitat. 2010. The State of African Cities 2010: Development Process. New York: Office of Housing and Governance, Inequalities and Urban Land Markets. Urban Programs of the U.S. Agency for International Nairobi: UN-Habitat. Development. ———. 2012a. The State of Arab Cities 2012: Challenges ———. 2001. “Microfinance and Infrastructure of Urban Transition. Nairobi: UN-Habitat. Development in Parivartan, Ahmedabad, India.” Center for Urban Development Studies, Graduate ———. 2012b. State of Latin American and Caribbean School of Design, Harvard University, Cambridge, Cities Report 2012: Towards a New Urban Transition. MA. Nairobi: UN-Habitat. Serageldin, Mona, Yves Cabannes, Elda Solloso, and Luis World Bank. 2005. The Macroeconomic and Sectoral Valenzuela. 2004. “Migratory Flows, Poverty, and Performance of Housing Supply Policies in Selected Social Inclusion in Latin America.” February. Center MENA Countries: A Comparative Analysis of Algeria, for Urban Development Studies, Graduate School of Egypt, Iran, Jordan, Lebanon, Morocco, Tunisia and Design, Harvard University, Cambridge, MA. Yemen. Washington, DC: World Bank. Serageldin, Mona, Elda Solloso, and Luis Valenzuela. 2003. “Task Force 8: Improving the Lives of Slum Dwellers.” Center for Urban Development Studies, Appendix 1: Indicators of Urban Exclusion and Inclusion in São Paulo, Brazil São Paulo Indicators ●● Life expectancy ●● Infant mortality ■■ Indicators of self-sufficiency (five indicators): ●● Youth mortality ●● Head of household below poverty line ●● Theft ●● Unemployed head of household ●● Robbery ●● Head of household at poverty level ●● Vehicle theft ●● Concentration of indigent adults ●● Murder rate ●● Concentration of children at risk ■■ Indicators of quality of life (14 indicators): ●● Minimal water service São Paulo: Indicators of Social ●● Minimal sewerage Exclusion ●● Minimal garbage service ●● Residential density ■■ Living in a situation of social limitation or ●● Lavatories in the household abandonment (four indicators): ●● Lack of contact with families ●● Concentration of precarious dwellings: slums, ●● Lack of conditions for self-sufficiency tenements, makeshift structures ●● Homelessness ●● Housing availability ●● Abandoned children ●● Vertical growth ●● Duration of dislocation from original location ■■ Living at the threshold of everyday survival ●● Access to basic health care (seven indicators): ●● Access to public or private day care ●● Worst conditions of city’s infrastructure ●● Access to private or public preschool ●● Earning less than a minimum wage ●● Access to private or public early education ●● Underemployment ●● Concentration of low family income ■■ Indicators of equality (two indicators) ●● Lack of access to consumer markets ●● Concentration of women heading households ●● Lack of basic services: garbage, sewage, water, ●● Concentration of illiterate women heads of households electricity ●● Extreme neighborhood pollution ■■ Indicators of human development (15 indicators) ●● Illiterate heads of households ■■ Absence of conditions for active civil society ●● Near-literate heads of household (four indicators): ●● No access to communications ●● Heads of household with 1-3 years of school ●● Vastly different communication styles ●● Heads of household with 4-7 years of school ●● Absence of unionization for workers ●● Heads of household with 8-14 years of school ●● Censored daily press ●● Heads of household with more than 15 years of education ■■ Inability to represent needs, interests, and ideas: ●● Rate of early literacy (age 5 years) ●●Concentration of media access among private ●● Rate of late literacy (age 10 to 14 years) interests 41 42 Inclusive Cities and Access to Land, Housing, and Services in Developing Countries ●● Absence of channels of communication for the ■■ Lack of cultural participation: interests and needs of impoverished communities ●● No access to leisure spaces: parks, sporting arenas, ●● Absence of public visibility of situations of theaters exclusion ●● No opportunities for creative education ●● Absence of political representation ■■ Widespread discrimination: ●● Use of force to block political action ●● Excluded from many services and schools ■■ Lack of personal security: ●● Disparity in treatment of men and women ●● No personal safety ■■ Lack of official support for special needs: ●● No public safety: gangs and crime ●● No programs to address the needs of the socially ●● Police brutality: torture, inhumane prisons, and excluded arbitrary detentions ●● No programs to assist migrants or homeless ■■ Lack of legal security: populations ●● Lack of impartiality in courts, corruption in judicial system ●● Selective application of laws Source: Spozati, Aldaiza. 1996. Polis Institute Appendix 2: Property Tax and Registration in Middle Eastern Countries Middle Eastern countries are among the most centralized Lebanon’s Court of Audit decision affirming the right to fiscally and administratively in the world. Turkey stands tax owners and occupants of illegally built structures, it is out as the only country that has enacted some measures unclear whether it is being implemented. to start fiscal decentralization in an effort to bring its sys- tem of local governance closer to the EU charter of lo- In Turkey, individual assessments are based on weighted cal self-administration. The law of municipalities (Law rates assigned to three variables: use, quality of structures, 5779/2004) increased the share of public revenue allo- and type of construction. The combined index is then ap- cated to local governments, which draw on four sources plied to a nationally computed average unit cost of con- of revenue: central transfers based on two weighted crite- struction and multiplied by the footprint of the building. ria, population (80 percent) and a development index (20 At the city scale, the resultant category specific indices percent); state block grants and targeted transfers; own are applied to the areas of the various categories of build- revenues, of which the property tax accounts for the bulk; ings in the city. In Greater Istanbul, this process implies and off-budget financing and borrowing, which depend 800 possible permutations. In practice, the cities use an on the credit worthiness of the municipality. inflation-adjusted average unit price per street to update assessment. The tax rate is 0.1 percent for residential prop- A major impediment in Egypt, Jordan and Turkey, among erties, 0.2 percent for nonresidential structures, and 0.3 other countries, is the cumbersome bureaucratic regula- percent for land. tions issued by Ministries of Finance to assess taxes by ma- jor categories of land use and levels of local governments. To reflect the high value of land in the metropolitan mu- Such unwieldy procedures are inherently inefficient be- nicipalities, the tax is multiplied by 100. However, the cause of the inordinate amount of resources needed for contribution of 50 percent of the tax to the budget of their administration. Amman, Jordan, has introduced these larger cities was so small that in 2005 the amount different rates according to neighborhood characteristics. was left to the municipalities within the metropolitan ju- The rent equitable value of vacant land is estimated at 2 risdiction. percent of capital value and taxed at 2 percent of capi- tal value, a rate often quoted as an indicator of adequate Although tenure categories do not conflict with present- taxation while the effective rate is 0.04 percent. In such day urban development patterns and the workings of real a rapidly growing city, it is not surprising then that the estate markets, the registration procedures and the issu- property transaction fees produce revenues five times ance of titles present major impediments to the manage- larger than the property tax. ment of urban growth and to social inclusion. Registra- tion is a lengthy, cumbersome, and costly process that In Lebanon, the property tax is referred to as the rental has resulted in the majority of the properties remaining value fee and is collected by municipalities. The rental unregistered and the cadastres mired in varying degrees of income derived from leased premises is included in the obsolescence. It should be noted that in countries where income tax and is referred to as the property tax. sharia jurisprudence has been integrated into modern law, women have the right to own land and to inherit, In Egypt, informal housing is taxed. In Lebanon and although their total share in the inheritance is half that of Morocco, unpermitted construction is not taxed. Despite the men’s. 43 44 Inclusive Cities and Access to Land, Housing, and Services in Developing Countries In Egypt, land titling requires several years and the ser- Algeria, Morocco, and Tunisia were more affected by co- vices of lawyers to complete the procedures. Despite the lonial land management systems than Mashreq countries steep reduction in registration fees from a high 12 percent with the possible exception of Jordan. The three countries of the property value to a flat rate equivalent to about have been promoting the adoption of the formal titling $300, only those that can afford the expense undertake system but have not abolished the parallel traditional the tedious task of registering their properties. The bulk court registration process (adoul), which they anticipate of urban land is unregistered with rights held and trans- will shrink over time. ferred through transaction documents drawn between the parties. Successive transfers of unregistered deeds and Throughout the Middle East, religious endowments inheritance laws mandating the subdivision of real estate (waqf) managed by special ministries or departments typi- among heirs have created unclear situations that cause cally have primary ownership rights in 20 to 40 percent of conflicts among competing claimants and endless litiga- the properties in historic centers in whole or in part. They tion, overloading the courts and complicating urban land also own agricultural land, and this may become an issue management. in periurban areas as cities expand. Because they control an array of associated public facilities (schools, clinics, or- Furthermore, the national registry in Egypt uses a per- phanages, and hospitals) alongside religious buildings, the sonal recording system that makes title searches difficult waqf authorities and their Christian counterparts—the and is of little use in urban planning. Egypt has started millet councils—play a role in promoting inclusiveness in on creating a geospatial cadastre—an undertaking requir- the cities. ing a long and difficult sequence of tasks. Work on some tasks has been disrupted by turmoil in the larger cities since 2011, and the situation in the periurban areas has changed as a new wave of informal urbanization has taken place. Appendix 3: Statistical Appendix Figure A3.1 Population Pyramids 2010 Brazil 75+ 70–74 65–69 60–64 55–59 50–54 45–49 40–44 35–39 30–34 25–29 20–24 15–19 10–14 5–9 0–4 8,000 6,000 4,000 2,000 0 0 2,000 4,000 6,000 8,000 Male population by five-year age group (thousands) Female population by five-year age group (thousands) Egypt 75+ 70–74 65–69 60–64 55–59 50–54 45–49 40–44 35–39 30–34 25–29 20–24 15–19 10–14 5–9 0–4 8,000 6,000 4,000 2,000 0 0 2,000 4,000 6,000 8,000 Male population by five-year age group (thousands) Female population by five-year age group (thousands) Source: UN-DESA World Urbanization Prospects, 2012 revision. 45 46 Inclusive Cities and Access to Land, Housing, and Services in Developing Countries Table A3.1 Urban Population and Average Annual Rate of Change by City, Selected Countries, 2005–2020 (thousands) Latin America % % Change Change Country City 2005 2010 2005–10 2011 2015 2020 2011–20 São Paulo 18,330 19,649 7.20 19,924 21,028 22,243 11.64 Rio de Janeiro 11,368 11,867 4.39 11,960 12,380 13,020 8.86 Brazil Belo Horizonte 5,022 5,407 7.67 5,487 5,819 6,217 13.30 Porto Alegre 3,694 3,892 5.36 3,933 4,113 4,376 11.26 Recife 3,450 3,684 6.78 3,733 3,939 4,210 12.78 Chile Santiago 5,605 5,959 6.32 6,034 6,355 6,748 11.83 Colombia Bogota 7,353 8,502 15.63 8,743 9,650 10,579 21.00 Mexico City 18,735 20,142 7.51 20,446 21,706 23,239 13.66 Mexico Guadalajara 4,051 4,442 9.65 4,525 4,869 5,293 16.97 Monterrey 3,579 4,100 14.56 4,213 4,655 5,113 21.36 Middle East/North Africa Cairo 10,565 11,031 4.41 11,169 11,944 13,254 18.67 Egypt, Arab Republic Alexandria 3,973 4,400 10.75 4,494 4,914 5,517 22.76 Casablanca 2,937 3,009 2.45 3,046 3,257 3,580 17.53 Morocco Rabat 1,647 1,807 9.71 1,843 2,001 2,213 20.08 Aleppo 2,605 3,068 17.77 3,164 3,550 4,065 28.48 Syria, Arab Republic Damascus 2,294 2,582 12.55 2,650 2,952 3,383 27.66 Homs 1,072 1,321 23.23 1,369 1,557 1,799 31.41 Source: UN-DESA World Urbanization Prospects, 2011 Revision. Appendix 3: Statistical Appendix 47 Figure A3.2 Rates of Natural Increase, Selected MENA and Latin American Countries, 1995–2010 (per 1,000 population) percent 30 25 20 15 10 5 Syrian Arab Republic Egypt Arab Republic Morocco Tunisia 0 1995-2000 2000-2005 2005-2010 25 20 15 10 5 Mexico Colombia Brazil Chile 0 1995-2000 2000-2005 2005-2010 Source: UN-DESA World Urbanization Prospects, 2012 revision. Figure A3.3 Access to Electricity, Selected Latin American Countries percentage of population 100 95 90 85 80 Chile Brazil Colombia 75 Peru Bolivia 70 Honduras 2009 2010 Source: World Bank data. Appendix 4: Resources General Inequality, Infrastructure Access Rojas, Eduardo. 2009. Building Cities: Neighborhood World Bank. 2013. World Bank Indicators 2013. http:// Upgrading and Urban Quality of Life. Washington, data.worldbank.org/indicator. DC: Inter-American Development Bank. Serageldin, Mona, Elda Solloso, and Luis Valenzuela. Argentina 2003. “Task Force 8: Improving the Lives of Slum UN-Habitat Best Practices Database. http://www. Dwellers,” Center for Urban Development Studies, bestpractices.at/database/. Graduate School of Design, Harvard University, Cambridge, MA. Brazil UN Habitat Best Practices Database Ansell, Aaron. 2011. “Brazil’s Social Safety Net under UN-Habitat. 2012. “The State of Arab Cities 2012, Lula.” North American Congress on Latin America Challenges of Urban Transition.” UN-Habitat, Report on the Americas 44 (22): 23–26, 39. Nairobi. Attoh, Kafui A. 2011. “What Kind of Right Is the Right UN-Habitat. 2010. “UN Habitat’s State of African to the City?” Progress in Human Geography 35 (5): Cities: Governance, Inequalities and Urban Land 669–85. Markets.” UN-Habitat, Nairobi. 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YVKE Mundia/Press-Venezuelan South Africa Embassy to the U.S., August 28, 2013. http:// www.correodelorinoco.gob.ve/wp-content/ South Africa: Municipalities’ Spending of Municipal uploads/2013/08/COI1731.pdf. Infrastructure Grant (MIG). http://allafrica.com/ stories/201303041826.html. Endnotes 51 Endnotes 1 The Center for Social-Territorial Inequalities Studies 10 This section is based on interviews with brokers in or CEDEST (Centro de Estudos das Desigualdades Egypt, Morocco, Syria, and Tunisia between 2005 Socio Territoriais), supported by the State of São and 2010 and information from colleagues in Jordan Paulo, is an interinstitutional initiative of the and Lebanon, as well as discussions with residents in Pontifical Catholic University of São Paulo, the informal settlements visited. Polis Institute, and the National Institute for Spatial 11 As quoted in the State of Arab Cities 2012 (UN- Research. Habitat 2012a), “Jordan’s zoning regulations during 2 World Urbanization Prospects, 2012 Revision (for the the British Mandate set a minimum parcel size of year 2010). 250m2, which was too large to be affordable for most 3 A young man who was born and grew up in one households. This resulted in development of 250m2 of these areas (Aubervilliers, France) expressed his parcels co-owned by several people (musharak)” frustrations with the evolution of the district into (Ababsa 2010). In the World Bank–funded sites and a migrant reception area in an interview: “All the services upgrading program (1976–82), a special improvements the city is making are a façade. They do variance was obtained to allow 150-square-meter not change the reality of the place. People think that building plots in the new sites. only thieves and immigrants live here. Those who stay 12 “PRIQH: Le programme de réhabilitation et can never get decent employment—only temporary d’intégration des quartiers,” Programmes en cours, jobs that lead nowhere. To improve your family’s Agence de Réhabilitation et de Rénovation Urbaine, condition, you have to move out, go to other cities http://www.arru.nat.tn/index.php?id=459. where housing is cheaper, schools are better, and you 13 Unpublished study by Hidaya Khairi, 1990. can get a good job because of your skills.” 14 Unpublished 2009 study presented by Dr. Faramawy 4 World Bank Indicators. to the Higher Council for Planning and Urban 5 World Bank Indicators. Development, which was approved by the council and 6 Kampung is the Indonesian word for village. As defined the government. by the World Bank in the context of KIP, kampungs 15 Unpublished 2010 work plan for ISDF presented by are densely populated urban settlements lacking Dr. Faramawy to the Higher Council for Planning infrastructure services and occupied predominantly by and Urban Development, which was approved by the low-income residents (Kessides 1997). Council and the government. 7 Metropolitan councils were included under the 16 Based on urban planning standards detailed in the program for a few years but are now funded directly national laws on subdivisions and the building code. by the national treasury. 17 Review of compendiums of laws in urban 8 UNICEF, “Revolutionary Health: Local Solution development and housing in Arab countries. for Global Health Problems,” http://www.wfs.org/ 18 Interviews with municipal officials in Istanbul futurist/july-august-2012-vol-46-no-4/revolutionary- conducted in April 2013 by Dr. Ceren Ozgen and health-local-solutions-for-global-health-problem. documentation carried out by the Institute for 9 “Improving Living Conditions in Low-Income International Urban Development. Neighborhoods in Rio de Janeiro,” Inter-American 19 Interviews with brokers and information from Development Bank (2011), http://www.iadb.org/en/ colleagues in Egypt and discussion with residents in news/webstories/2011-03-23/idb-favela-bairro-rio- informal settlements visited. slum-project,9164.html. 52 Inclusive Cities and Access to Land, Housing, and Services in Developing Countries 20 This is a traditional form of tenure is called zina in “Transmilenio: Performance and Costs,” 31 Morocco. It is also common in informal settlements in go.worldbank.org/V1E4YXHDI0. Egypt, mostly among family members. See Serageldin “Social Inclusion Best Practices: The City of Medellin,” 32 (1990). UN-Habitat, http://mirror.unhabitat.org/content.asp?ci 21 Nelson Mandela Centre of Memory, “The d=9116&catid=298&typeid=2. Reconstruction and Development Programme (RDP). “Presidente lanza plan de vivienda gratis para los más 33 A Policy Framework,” compiled by Padraig O’Malley, pobres del país,” Presidencia de la Republica, April https://www.nelsonmandela.org/omalley/index.php/ 2012, http://wsp.presidencia.gov.co/Prensa/2012/ site/q/03lv02039/04lv02103/05lv02120/06lv02126. Abril/Paginas/20120423_02.aspx. htm. Interview with Dr. Ali El-Faramawy. 34 22 Based on interviews with brokers in Egypt, Morocco, Syria, and Tunisia between 2005 and 2010 and “Local Housing Movement Program,” World Habitat 35 information from colleagues in Jordan and Lebanon, Awards, 2010, http://www.worldhabitatawards. as well as discussions with residents in informal org/winners-and-finalists/project-details.cfm?lan settlements visited. g=00&theProjectID=8AB2DDFA-15C5-F4C0- 990809F44E650E73. 23 Colombia’s Law 388 stipulated the levying of a plusvalías tax. It is a betterment tax levied on the UN Habitat Best Practices Database, http://mirror. 36 increase in land value of properties whose value has unhabitat.org/bp/bp.list.aspx. risen due to public action (Article 73). The law also “The Struggle for Housing in Central Areas,” 37 stipulated that local or district councils can receive 30 World Habitat Awards, 2013, http://www. to 50 percent of the tax. For further discussion of this worldhabitatawards.org/winners-and-finalists/project- topic, see Smolka (2013). details.cfm?lang=00&theProjectID=9E4197B9-15C5- 24 Law 10.257. F4C0-99232676D0AB0823. 25 Polis Inclusive, “Implementing the Right to the City SEWA Mahila Trust (2003), http://www.sewa.org. 38 in Brazil?” Sustainable Cities Collective, October 14, SEWA Mahila Trust (2003). 39 2011, http://sustainablecitiescollective.com/polis- “Slum Upgrading Facility Exchange Visit to the 40 blog/30417/implementing-right-city-brazil. Community Organisations Development Institute 26 Kenneth Rapoza, “In Brazil: The Poor Get Richer in Thailand,” UN-Habitat, Nairobi, 2009, http:// Faster,” Forbes, September 25, 2012, http://www. mirror.unhabitat.org/pmss/listItemDetails. forbes.com/sites/kenrapoza/2012/09/25/in-brazil-the- aspx?publicationID=2678. poor-get-richer-faster/. In South Africa, the allowable value of raw land has 41 27 Julia Carneiro, “Brazil’s Precarious New Middle Class increased over the years. The latest figures issued by Demands More,” BBC, July 14, 2013, http://www. South Africa’s Department of Human Settlements bbc.co.uk/news/business-23287858. under the revised National Norms and Standards that 28 “Colombia’s Capital, Bogotá; New Global Compact took effect on April 1, 2014, give for the Individual City and Reporting on Its Sustainability,” http:// Housing Subsidy Programme the following caps: citiesprogramme.com/archives/3931. ●● House cost: R 110,947 29 “Bogota Supports Social Inclusion of the Homeless,” ●● Services cost: R 43,626 Publicado: 2007-12-25, http://portel.bogota.gov.co/ ●● Raw land cost: R 6,000 portel/libreria/php/x_imprimir.php?id=26362. ●● Total subsidy: R 160,573 30 “Transmilenio S.A.: Historia,” http://www. transmilenio.gov.co/es/articulos/historia. 52 Previous knowledge papers in this series Lessons and Experiences from Mainstreaming HIV/AIDS into Urban/ Water (AFTU1 & AFTU2) Projects Nina Schuler, Alicia Casalis, Sylvie Debomy, Christianna Johnnides, and Kate Kuper, September 2005, No. 1 Occupational and Environmental Health Issues of Solid Waste Management: Special Emphasis on Middle and Lower-Income Countries Sandra Cointreau, July 2006, No. 2 A Review of Urban Development Issues in Poverty Reduction Strategies Judy L. Baker and Iwona Reichardt, June 2007, No. 3 Urban Poverty in Ethiopia: A Multi-Faceted and Spatial Perspective Elisa Muzzini, January 2008, No. 4 Urban Poverty: A Global View Judy L. Baker, January 2008, No. 5 Preparing Surveys for Urban Upgrading Interventions: Prototype Survey Instrument and User Guide Ana Goicoechea, April 2008, No. 6 Exploring Urban Growth Management: Insights from Three Cities Mila Freire, Douglas Webster, and Christopher Rose, June 2008, No. 7 Private Sector Initiatives in Slum Upgrading Judy L. Baker and Kim McClain, May 2009, No. 8 The Urban Rehabilitation of the Medinas: The World Bank Experience in the Middle East and North Africa Anthony G. Bigio and Guido Licciardi, May 2010, No. 9 Cities and Climate Change: An Urgent Agenda Daniel Hoornweg, December 2010, No. 10 Memo to the Mayor: Improving Access to Urban Land for All Residents – Fulfilling the Promise Barbara Lipman, with Robin Rajack, June 2011, No. 11 Conserving the Past as a Foundation for the Future: China-World Bank Partnership on Cultural Heritage Conservation Katrinka Ebbe, Guido Licciardi and Axel Baeumler, September 2011, No. 12 Guidebook on Capital Investment Planning for Local Governments Olga Kaganova, October 2011, No. 13 Financing the Urban Expansion in Tanzania Zara Sarzin and Uri Raich, January 2012, No. 14 53 54 Inclusive Cities and Access to Land, Housing, and Services in Developing Countries What a Waste: A Global Review of Solid Waste Management Daniel Hoornweg and Perinaz Bhada-Tata, March 2012, No. 15 Investment in Urban Heritage: Economic Impacts of Cultural Heritage Projects in FYR Macedonia and Georgia David Throsby, Macquarie University, Sydney, September 2012, No. 16 Building Sustainability in an Urbanizing World: A Partnership Report Daniel Hoornweg, Mila Freire, Julianne Baker-Gallegos and Artessa Saldivar-Sali, eds., July 2013, No. 17 Urban Agriculture: Findings from Four City Case Studies July 2013, No. 18 Climate-resilient, Climate-friendly World Heritage Cities Anthony Gad Bigio, Maria Catalina Ochoa, Rana Amirtahmasebi, June 2014, No. 19 Results-Based Financing for Municipal Solid Waste July 2014, No. 20 On the Engagement of Excluded Groups in Inclusive Cities: Highlighting Good Practices and Key Challenges in the Global South Diana Mitlin and David Satterthwaite, February 2016, No. 21 KNOWLEDGE PAPERS For more information about the Urban Development Series, contact: Global Programs Unit Social, Urban, Rural & Resilience Global Practice World Bank 1818 H Street, NW Washington, DC 20433 USA Email: gpsurrkl@worldbank.org Website: http://www.worldbank.org/urban February 2016, No. 22