Voluime onie E ~URBRN A mber two Winter 1993 U R B A N E N T R E P R E N E U R S I S S U E Urban Entrepreneurs and the "Real Economy" M AN1LA-Marilou del Rosario works an eight-hour day at the This situation has blurred the lines IN THIS ISSUE Department of Health in Manila. Each evening and on weekends between "informal" and "formal." she leads the regional chapter of the Association of Filipino As more and more workers are 1 Urban Entrepreneursand the Women's Workers, a group of women running community stores, employed informally, a new on-the- RealEconomy sewing buttonholes on shirts for export, hawking food on streetcorners, ground economy has arisen. This 7 The Informal Economy in Centi and catering lunches. In addition to their regular jobs the women work "real economy" includes workers Europe~ A Letter fron Hungar an average of 25 hours per week and earn 400 pesos (US$16.00) a who earn income either in both by Robey Mnwhin:- month in these "second" jobs-enough to bring their income up to the sectors, or sometimes in just the DEPRRTMENTS poverty threshold. informal sector. As a consequence, Many Filipino women earn money in the same way-working two as the real economy grows, the 2 Letters to-the Editor- to three jobs to make ends meet. In Manila alone an alliance of 21 poorest of the poor are pushed out 3 World View The Informal Sect( women and development groups has organized under the Institute for of formerly held informal activities. in UrbanLatin America: The Social Studies and Action to provide support, in part. to women in Essentially, the middle class are OtherFace of the Global.--- income-earning activities. For most of them, their money goes for becoming poorer, and low-income Econy byJos6lus Coraggi basic needs: water, sanitation, health care, and schooling for their groups even poorer still. In 1990, 9 ComuIve SeakUrtCopoverty children. According to a July 1992 survey by the Filipino Department of for example, 36.2 million people in Labor and Employment, 51 percent of the country's workers, or 12.3 the Philippines, or 59 percent of the The Battle for the million people, were employed in this "informal" economy. population, lived below the poverty Pavements by SheelaPatel,- The number of informals in Manila is but one example of what has line (defined as 18,000 pesos per - 1 Q & A A New Method of become a worldwide phenomenon. In Thailand 50 percent of people year in 1985, or US$750 for a Surveying thePoor Takes Root work in the informal economy, and in Morocco the figure is as high as family of six). 12 Manila F2-rom the Qt -it~ge's 75 percent. ][n Bangladesh, where per capita income is only US$165 .Ma3 .r Rei D per year, more than 70 percent of the urban work force is informal. In THE EFFECT OF 15 e u Cea Peru, 47 percent of ECONOMIC POLICIES i. "'. "'.1 t ' construction and 95 OLne of Manrla s i/ aan informal percent of public Economists are fond of arguing the causes behind this phenomenal workter Air/a Capi/e I- qlir-s transportation in the rise of the populist, or "real economy." Some point to slow overall niib, ellas to suipplenent lie capital city of Lima are economic growth, with its failure to provide adequate wages and create .VE C e galill!; v icocarried out through the employment. Others argue that developing country manufacturing informal sector. A sectors are inefficient and unable to compete on world markets, that " E .;; j.s, t>>; 'series of economic governments promote capital- rather than labor-intensive industries, - | X> crises has fueled the and that financial systems are unable to provide credit to small enter- situation: underem- prises. Economists are also recognizing the inhibiting role governments 'I i . ltX _ - * X ployment, lack of can play through issuing entangling and complex regulations. -3;>>_ government resources The problem is that poor policies and governance have led to many for basic services, and of the above conditions, including the rise in numbers of people -it '-* t '' ' ineffective and working in the real economy. Regulations, instead of enabling growth 'X -r: .cumbersome govern- have stymnied the formal sector, encouraging entrepreneurs to seek ment regulations. means of income outside of the legal system. Rather, says Mario These statistics Lamberte of the Philippine Institute of Development Studies, "Regala- betray an alarming tions should provide incentives for staying in the formal sector as well category of "informal as for joining the formal sector. Some sectors need to stay formal, such workers"-those that as the export sector, which if regulated properly could encourage are often employed people to join it through providing the right incentives." Such incen- fulltime in the formal tives could include greater access to export markets for small sector yet are forced to enterprises, exemptions from or reductions in income taxes for innova- -, &'\ t ?, -'> find additional means tive businesses, tariff duty exemptions, better access to municipal of income to survive. services, and exemptions from imported items (such as spare parts). continued on page 4 > _, ^vz ? ~~-- ,, :-- - Ce--------- LETTERS TO THE EDITOR 7 UrbHD- - J ; : ! i - - -- We welcome your comments, thoughts, and criticisms onffuture issues of the Udfbl RQe. We received over 300 letters in response to our premiere issue. These are a sampling of comments and suggestions to date. I would like to congratulate you and all those I received the first copy of The Urban Age and This isse of The Urban Age is funded by behind The Urban Age. I deeply appreciate the ideas would like to make afew comments and suggestions: the Dauish Agency for Intermational Development, the Federation of Canadian and innovations you presented in the first issue, 1. The size of the previous magazine, namely Municipalities, and the World Bank. especially your focus on urban environments in the The Urban Edge, is more convenient to hold Development fhindingfor the newsletter third world. and read. has been prosidetbytohed BaNkD I am writing from Nigeria, a country involved 2. The bold lettering of The Urban Age is good Urban Management Programme and in the worldwide concem about urban environments. for quick reading. The World Bank- Conditions of cities here represent the intractable 3. The contents of The Urban Age are more problems facing all urban centers in developing attractive and interesting since it covers more countries. Chief on the list are poor sanitary areas than The Urban Edge. conditions, inadequate water supply, and waste disposal problems. Cities in developed countries at A. Anantharaj JebBgrgmann one time or another had to grapple with similar Madras, India ICLEI, Troronto, Canada problems, but they do not have any real solutions for G NP Niew YorkC US us in the developing countries. The solutions lie not Cha-les 'arre. -only in finance but also in citizens' attitudes and Editor's Note Charles Corr-ea -mentality,andinthoseareaseachcountryisdifferent . . Bombay,bd Zsuzsa Daniel Solutions to our urban problems will IntsissueoflTeUrbanAgeweexplore ZResearh Institute of the Dungarian increasingly rely on grassroots participation, whether urban entrepreneurs, or the growing -.,MinistrvqofFibiice as individuals in street tenants associations or phenomenon of people working outside the Budp3si. HuAgary community-based associations. But people must be formal economy. The informal or, as we term -- helped to organize themselves and must be given it, the "real" economy to which these people - Mamad6D.,: - . - ' the encouragement and confidence to initiate and belong is increasingly becoming a factor in Da a:CAty Concil--. vDJakar, Segal : : -. take action. There. I think, lies the challenge forthe countries' economic well-being. In nations Qa- ti':; 4;4!.a£.'4^ s .. . .w ....... _.new Urban Age. undergoing political transition or under -> Nig> tH i4v economic stress, the situation is even more - Jeu4etojimtPlaimng: 4--'- - ~ -U.W. Obe, Departrnent of Architecture, severe, In Bangladesh for example, more than ; .i < Universityv of Nigeria, Enugu Camnpus, Nigeria 70 percent of the urban work force is employed -~~~~ "-' ~~~~~~~~~~- ~~~~~~ - ~~~~in the informal sector. In Morocco, the figure B~C- witreforHffwnwiS&ttlOmenis , has been estimated at as high as 75 percent. V,ucoscver, cwzn.&n .. The premiere issue of The Urban Age is very How to address this phenomenon, both from an Jaime Lerner impressive, both in its presentation and contents. economic and sociological point of view, is a Prefeimue a Municipal, The authors of the guest editorial should be recurrent theme of this issue. Curitiba, Brazi conanendedfortheiranalysisofSouthernpositions Because of its large and vibrant informal on UNCED. The industrialized nations should sector, we decided to visit the Philippines and Akin Mabogunje realize that they are also part of the same planet, prepare our lead story on the activities and Ibadan, Nigeria which is being endangered by disastrous human limitations of urban entrepreneurs working in JaUie Va Denzuela activities. The resources required to abate the its largest city, Metro Manila. Jose Luis 1ULA/'ELCADE:L,Quito, Ecuador prevailing unhealthy conditions should be Coraggio, of the Instituto Fronesis in Quito, 110411 h COMMITTEE contributed by all nations according to their gives us a view of the inform al sector in Latin indiidua us of he loba enironent Ameca and Robert Manchin, an Hungarian Arif Hasai inCiv dua ushallbhe afobst sepvirntmenrgt.drcin working for the Gallup Organization in Karachi, Pakistan UNCEDshallbe afirst stepinthe rightdirection, Budapest, tells of the threat the growing black if actions follow its scorecard.economiy poses for a successful ftransition to a Hilda Her , i market economy in his country. In our Centar Estudios Socalesy Dr. N.K. Pareek, National Consulting Bureau, "Communities Speak" columnn we visit NGOs Ambientales Buenos Aires, Argentina Tripoli, Libya working on microentexprise activities in Manila Peter Swanr'- r - - and Bombay and in "Q & A' we interview the UNCGS, Nairobi, enya _ I personally find the form and content of the head of a new survey organization in the -. 1 1' IrI., STRAFF Urban Age appropriate for a newsletter of its kind. Philippines. However, I wish there could be more in the "Book I would like to thank our readers for their Edjorareiyit4-s ......... . ... 4w-; .Review" department to enable readers to know overwhelminglypositiveresponsetoour P;idiii6ijbis-metzger where to order and how much to pay for books to ouritenton to - DikibutConCsiulo Poweli - - reviewed under the said department. I therefore heededajor rueststorehe ;''EdOffitodea o-;.-. <~-= .suggest that future book reviews include the sizeofthejournalforeasierstorigand ,Room SlG-10 publishers, distributors,orsalesrepresentativesand r bility. Pleaseletus The Word&Bank - "'"' ~the prices of such books. -- S14 ahfitoti ytiNW~ 2,CTIE~~~~~~~~~~~~~~~~~~URI8E:I5E -~~~~~~~~~~~~~~~~~~~~~~~4 -- - -._W . -i- 439EF t:- Joe Kingsley Eyiah- ' - Asokore-Koforidua, Ghana 1993u~fiS -Ii - ------------I- - The Informal Sector in Urban Latin. America: The Other Face of the Global Economy by Jose Luis Coraggio Jose' Luis Coraggio is currently Director of the Instituto Fronesis (Ecuador) and Professor-Research Associate at the Facultad Latinoamericana de Ciencias Sociales (FLASCO-Ecuador). The views expressed in this article do not necessarily reflect those of FLASCO. " change must emerge from, and for, mankind's basic economic the world and, at the same time, by econornies that devalue human labor to and political communities. But the problem of development can only the extreme, while developed economies are protected from our few be fully understood and addressed from a world perspective." "competitive" proclucts. We are expected to open our doors to foreign (Boutros Boutros-Ghali, United Nations Secretary General). investment, reducing taxes and regulations, but the borders of the North are not reciprocally opened to our workers. It is accepted as logical that Why do millions of Latin Americans end up as part of the so-called governments in the North strive to protect political stability, therefore underground or informal sector of the economy? Because they cannot changes am met out gradually, while our governments are being turned into find salaried employment. the administrators of an imposed strategy lacking national consensus. Why do they resort to illegal activities? Because the legal system The disaster our cities are currendy undergoing is equivalent to that does not allow them a livelihood. cities of the North would experience if their borders were declared open Why do they occupy public land and space, both to settle and trade? to immigrants from the Third World countries, abolishing all red tape, Because there is no urban development suited to their needs. visas, requirements, and accepting anyone willing to work. Who would Why, in short, is all this happening in a region which once had high bring order to the resultant urban chaos? Who would offer basic growth rates, aspired to progress, produced creative scientists and solutions? The market? artists, as well an educated workforce, and patterned its urban, political, and industrial development after the developed world? Part of the WHAT INTERNATIONAL ORGANIZATIONS answer lies in the new balance of world power which excludes those in CAN DO the periphery from the immediate interests of the center. This world power imposes patterns of change without proposing Although region specific, urban problems in Latin America are a new alternatives to sustain the daily lives and expectations of the result of global processes. As such, they require global answers. majority of the developing world's urban inhabitants who are left Intemational organizations (10) have been partially responsible for outside the mainstream. the development of our cities in the past, and still are today. Planning Global powers expect Latin America to be able to compete on the models, macroeconomic analysis, profiles of modem society, and even world market, for which it is not yet ready. In order to be able to national projects themselves, were prepared by their experts and compete on such a "level playing field," social and political power consultants. Now they are proposing the dismantling of the old and within the countries must be rebuilt, taking advantage of these preparing the ground for the "world market" to decide the future of our countries' most precious resource-the labor and innovative capacity cities. Concerned about the world order or prompted by moral values, of their people. IOs are at the same time multiplying socially oriented interventions with loosely specified goals, which are rarely evaluated and generally AN ECONOMIC AND POLITICAL IMBALANCE not replicable, i.e., projects that last as long as their funding. Without policymaking accountability vis-a-vis the communities for whom they do Structural adjustment should remedy many wrongs, i.e., to get rid of the thinking, IOs often conduct experiments and propose worldwide the bureaucracy of governments that held sway over society and served homogeneous policies, opening up social participation but in such limited minority interests; to put a stop to the privileges enjoyed by corrupt ways that it hardly leads to real empowerment of beneficiaries. Motivated entrepreneurs, trade unions, and politicians; and to respect by their own survival, IOs compete among themselves, duplicate efforts, macroeconomic balances which kept these economies in a perpetual and waste scarce resoLirces in an increasingly needy world. state of instability. All this needs to be done, of course. But while at the For either moral or political reasons-such as those envisaged in the center such adjustment takes time, action in the periphery is speeded Brandt Report, the Brundtland Commission on the South, and the recent up, without adequate compensation for social and political costs. Stockholm Initiative oin the World Security and Governability-real Ultimately, those who survive will be "modem." But what about those alternatives must emerge for the urban masses. The raw materials are there: whc _ not? Could half of the urban population, which, by the end of the supply networks; family businesses; self-managed health centers and cen,- - ECLAC forecasts will be poor or indigent, be considered "mar- schools; know-how and creativity among workers, technicians, and ginai r "informal?" Whatknd of liberties and identities would those who professionals; networlks of NGOs that specialize in social services; new are to"y unable to feed or educate themnselves have in the year 2000? Can policy-making experiments at municipal levels; the desire for progress; and we leave this to the 'free" market? the individual and intergenerational transcendence of each and every World market prices do not reflect only costs and productivity, but also economic and political power. They are controlled according to connnued on page 4 . projects of powerful governments and economic blocks. But we are The rs e5sed in -World View" are not reprmenfative ofany agency or organization, asked to see them as the interplay of natusal forces. We are forced to brti hepersonal anmrnts ofeaicauthor.Thyare includ dto st bnuate s7dydelite open our borders to goods produced by the most advanced industries in andniononus anues ntedead devongwols.- THE UR3RR R6E LATIN AMERICA continuedfrom page 3 person. But it will not be possible to integrate these millions of eco- But these coordinated actions must have an overarching purpose nomic and social actors through private capital accumulation, even if it beyond the improvement of a few social indicators, namely, people's were to speed up again. Since they are structurally excluded, they need empowerment. It is possible to visualize a grass-roots economy, of high their own perspective, which could be enhanced through a different technical and human caliber, that is based locally but that extends to the global policy. This policy must be supported with sufficient national and international level. In as much as this economy has its own funding and political backing to make it sustainable, and allow the internal dynamnics, it will be able to relate in new terms with the public developnment of the kind of social powers that represent the economy and the entrepreneurial capitalist economy. Such an urban people's interests and makes them count in all political arenas. Without grass-roots economy cannot be evaluated from the perspective of a them, there can be no citizenry or democracy in our cities. modern capitalistic enterprise, but rather by the yardstick of its own Such an alternative cannot emerge solely from the spontaneous objectives, values, and institutions. Concepts such as productivitv and drama of the daily struggle for survival because, as stated, "the efficiency need to be redefined from a macrosocial rather than an problems of development can only be fully understood and addressed economist angle. The maxim on competitiveness-being able to from a world perspective." The IOs should use their relative au- compete on the world market in terms of price and quality-implies the tonomy to revise their current proposal of focusing on extreme ability to offer a useful product and to back it with solid support poverty. Otherwise, they only help to perpetuate poverty, proposing through innovation. quality and continuity of supply. But it also implies alternative ways of being poor, while the segments of society that the exercise of a unified economic and political force. If Latin had managed to attain middle class status are thrown into poverty. America's products are to compete in the world economy, these IOs would do better if they pooled their resources with those of the conditions must be allowed. countries they assist, and with those of NGOs. They would do better The quality of urban life in the periphery depends, in the short term. to coordinate their activities responsibly among themselves, and to on a change in the exercise of global power, and, in the future, on the search for new types of links with urban grass-roots organizations. democratization of the components of that power. This will entail This would r equire a reform of IOs on a scale equivalent to that building power rooted in urban grass-rooted economic management. imposed by them on our governments. m credit extension schemes in Manila "because they have to be in order to . X -ir ~ 1 - 7 -- - = * w survive. Commercial banks have the misapprehension that the poor cannot make payments; that they are lazy. In fact, if you give them a _jj|j-'-'' ~ / : -, - - ' - = way out they will try and take it." i __; - >- -, - - -;; . . -., A NEW FORM OF CREDIT The failure of the commercial banking system to reach the real economy reflects the poor's lack of colateral. including title to property, and the 7 iJ c - > >^'>% -: 7 g ' ~ t j ......................banking systems' belief that they are a bad credit risk. The high transaction costs involved in making small loans available to large numbers of people - also keeps commercial banks from reaching out to this group. In the A _;. 31Philippines, the poor cannot even open savings accounts in much of the commercial banking system. -, . . ' lnFilo ml lrer7le* Lack of access to capital is an obvious constraint to small Man iipino ro,inen work- in their homies scwin-lg agrnents f-o export. Here thr-ee Wt omieni kitii siveaters entrepreneurs trying to open or expand businesses. If credit is -sing eq lrpmneuzt purchased through smnall-scale available, it is through moneylenders or middlemen who demand le_ I/ig prgin-rans. -- extraordinary interest rates or repayment periods. The lack of credit - most effects the poorest of the poor, often women trying to earn ENTREPRENEURS supplementary income for their families. NGOs, community groups, continuedfrom page I and workers associations are now mobilizing in poorer neighbor- hoods as intermediaries between government agencies, charitable Yet bridging the gap between the real and formal economies organizations, and private businesses willing to make small-scale implies a shift in development philosophy. Economists are recogniz- credit available. Loans are made to groups of people and involve ing the growing productive capacity of the urban poor, as well as its small amounts of money. In following the Grameen model of "peer effect on the overall economy. Many now see that a bottom-up pressure" among the group, these programs emphasize activities approach is needed to unleash the income-earning potential of this beyond solely income-generating work. HASIK (Harnessing Self- growing labor force. Innovative programs, such as the Grameen Reliant Initiatives and Knowledge), an NGO supported by the Bank that provides small amounts of credit to the poor (see box, pg. Filipino government and bilateral donors, executes a Livelihood 5), better information on regulatory procedures, community mobili- Revolving Fund for Poor Women to support secondary income- zation, and more extensive training and education programs are earning activities. Most of the women involved work fulltime jobs, crucial to itapping into this vast resource. "The urban poor are among often in garment factories. The fund operates nationwide but makes use the most entrepreneurial people in the society," says Benjamin of NGOs such as HASIK to reach grassroots levels where the poorest of Montemayer who heads up Tulay Sa Pag-unlad, an NGO working on continued on page 5 l THE URBROO RE Wintpr 1(Q? ENTREPRENEURS continuedfrom page 4 the poor live. The fund loans up to 20,000 pesos (US$833) to groups of no less than five and no more than ten. The loans are available at The Grameen Banh interest rates subsidized by donor funding. Reloans are made after a - one-year period provided all repayments have been made. According to In searching for a mechanism to provide credit to the urban poor, Asian ^ Otis Salon, who runs the program in Quezon City, women earn up to governments anad NGOs have begun to look to a bankdng model successfully 300 pesos (US$12) to 600 pesos (US$25) per month per group out of used for over a decade in rural areas of Asia. The "Grameen" or "Village Bank' such activities. was first developed in 1976 by Professor Muhammad Yunus, a Professor of The Livelihood Revolving Fund differs from the Grameen model in Economics at the Chittagong University in Bangladesh. The model is based on that it subsidizes interest rates. Tulay Sa Pag-unlad (TSPI) takes an the theory that the poor, if provided with credit, can generate productive self- employment without external assistance. To date, the Grameen Bank has approach more consistent with the Grameen. Through its Kabuhayan extended credit to over 1.2 million low-income people in rural areas. (Group) Lending Program TSPI organizes beneficiaries into groups of The Grameea has five basic goals: 1) to extend banldng facilities to poor men no less than five and makes loans of P1,000 (US$40) to P3,000 and women; 2) to eliminate middlemen, or money lenders, who often exploit (US$120) available to them. The groups receiving the loan are required bonrowers; 3) to create self-ernployment for a vast source of underutilized to maintain a savings account of 5 percent of their periodic amortiza- manpower, 4) to give low-income groups a way ofjoining an organizational tion amount, both as a guarantee against repayment of the loan and to structure through which they can gain both sociological and economic support; and 5) to provide a rrLechaaism for low-income groups to bridge the chasm between cover emergency expenses that may jeopardize the business. subsistence level income generation to growth-oriented income generation. Kabuyayan beneficiaries also adopt a "code of ethics" similar to the Through the Grameen system, borrowers are not required to provide Grameen's "Sixteen Decisions," which emphasize self-improvement collateral to receive loans. They must, however, be willing to work within and the willingness to rise above their present circumstances. Yet guidelines based on strictly monitored socioeconomic factors such as mutual interest rates charged are above markcet rates. tnist, supervisionr, accountability, participation, and creativity. Loans are given to groups of no less than five people who must meet clearly defined standards TSPI also uses local NGOs as intermediaries, but Benjamin of poverty. The group as a whole qualifies for the loan and individual members Montemayer, sees its work as being sustainable precisely because it of groups are subject to "peer" pressure from other members to meet their demands that the poor pay market interest rates. Programs similar to the obligations. Bank transactions are conducted openly, to increase peer pressure, Grameen are being tried in Indonesia through the Bank Rakyat Indone- and in small amounts. The system is closely supervised through village-level sia and the Badan Kredit Kecamatan. branch offices, yet little or no stipulations are put on borrowers as to how to use their money. Insirad, the system relies on individuals' abilities to make best use In July 1992 a group of Asian banks and NGOs met at the Asia and of their resources, worldng within his or her own constaints. Pacific Development Centre in Kuala Lumpur to discuss banking strategies for the poor. The group listened to case studies from Bangladesh, India, Indonesia, Malaysia, Nepal, Pakistan, the Philip- small, putting them at a disadvantage when competing with large-scale pines, and Sri Lanka and issued a series of recommendations. First companies. Plus, the security of their enterprise is often at stake. Yet among these was that the poor are good credit risks and that they will the task of creating regulations that reach the right balance between save if given the opportunity. Access to credit, rather than its costs, is a encouraging productivity and adding to overall economic health is limiting factor. The report notes women borrowers as the most reliable, complex. and the key role that NGOs and self-help groups are playing in giving In March 1990, for example, the Filipino Department of Transporta- the poor better access to credit. In addressing recommendations to tion reduced the documents required to register a jeepney to only five international financial institutions it calls for more efforts to promote items (from 21) ancI dropped the processing time from 90 to 12 days. commercially viable banking with the poor, with particular attention to The purpose behind this was to expedite the "formalization" process encouraging commercial banks to extend credit to low-income groups. and to make it less costly. Enforcement of the new regulations, how- ever, was sporadic so that illegal means of entry into the trade cropped THE RIGHT KIND OF REGULATION up. This helped lead to a proliferation of illegal jeepney owners and operators in the city. Most operators own one or two vehicles since they - In his 1989 book, The Other Path, Hemando de Soto cites studies lack the economies of scale to apply for an official franchise. Often proving that microenterprises and the informal sector can be among the they become involved in another informal sector system, the kabit irostdynamicAnd healthy sectors in developing countries. Because system, in which franchised vehicle owners illegally rent permits for they work in an unregulated environment, they are more competitive public utility vehicles to private vehicle owners who have not been and are able to employ a growing portion of the urban labor market. given licenses. "Encouraging entrepreneurship," writes de Soto, "means creating a The new regulations are meant to eliminate the kabit system by more open, competitive environment for the economy as a whole." making it easier for individual operators to get licenses. Instead, The question then is why should entrepreneurs want to hem in the they have worked against the small formalized operator, who must real economy by regulation and adaptation into what is often an compete with illegal operators working within the kabit system. unworkable economic system? In many developing countries, even if This illustration shows that the solution is not in regulation alone the macroeconomy were healthy, some argue, enterprises in the but in creating and enforcing the right regulations. Such regulations informal sector would continue to flourish. are complicated and must be well thought through. They take time Although this may be true, many agree that reforms that would for people to administer; are costly; often difficult to enforce; and allow informals to become formal could improve not only their govemment bureaucracies are not always amenable to such reform. situation but the overall efficiency of the economy. Many working "Bureaucrats," continues Mario Lamberte, "have never been known outside the formal economy face high costs: often they must pay bribes to be innovative with regard to regulations. But if they could be, I to officials or buy capital equipment at inflated prices. They may be discriminated against by government policies that limit where, when, continued on page 6 1 and how they are able to do business. Their access to markets is THE URHON HOE Winter 1993 ENTREPRENEURS continued frorn page 5 see no reason why we couldn't balance equity and growth; there "i l-5 l need not be any trade-off between the two." In fact, most incentives for going formal are targeted toward growth-as entrepreneurs' profits increase, they cannot expand beyond a certain level-for .j - example, to have access to export markets. This is the challenge . s facing many governments today. - .-.4 = A WAY OUT Regulation and credit alone are unlikely to enable workers in the real :' economy to enter into the formal system, even if they wanted to. But experience has shown ways in which the real economy can become 4. ;- formal-to the benefit of both entrepreneurs and to the legitimate economy. For example. it has been shown in Metro Manila that when regula- tions are devolved to the local level, such as for transportation and for petty trading licenses, there is a higher success rate for enticing those in the real economy to become formal. The largest group of informal entrepreneurs in Metro Manila works in petty trading-operating sari- sari (community) stores or food stalls. All of these are officially required to register with the Bureau of Domestic Trade. But a 1988 survey showed that only 22 percent were licensed. More than half, Altirhough tlr nricw-le hnuhstrn in Metro Manila appedrs tairegd'!i(tLJ. t,-irers~ ncie uisually register,ed ~iti ih however, were registered with the local government. butel lY'riJ 0(14 J -) )i) le) e(15 0 il-l 15 tloe * . * IzJtu~~~~~~~~~~ocl gor*IeiWmn= eiir/1il mam belon- to elsfsociaElionst (?f Second, the urban poor pay excessive amounts of money for basic 1,gcX lC on',hFM^ and Operators. social services. A solution may lie in charging user fees in some poor communities to supplement government-subsidized services such as water supply and sanitation. Another possibility would be to involve communities in raising money for and constructing their own standpipes and sanitation systems. As advocated by the Grameen THE URBAN ENTREPRENEUR model, a percentage of profits from entrepreneurial efforts could be required-as a condition of receiving a loan-to establishing commu- When Bernadette Toleno in Quezon City takes out a loan of nity revolving funds for health care and education. 25,000 pesos (US$ 1,041) to start a business producing hand-made Third, with no permanent address, it is virtually impossible for the paper flowers from her home; expands to employ eight workers; and urban poorI to qualify for credit. Not only is it difficult to access credit begins to export her flowers to the European market, she is contrib- with no permanent address, but many credit schemes in which the uting to a process that, when multiplied across the thousands of reputation of the borrower is more important than collateral (such as the similar small enterprise initiatives cropping up in developing Grameen) find it difficult to lend to people who are transient or who country cities, offers hope for the future. According to Mahamed face forced eviction from their homes. Programs can be established to Saladhine in The Silent Revolution, "The informal sector is an organize and enable communities to gain title to their land (see important refuge from all types of administrative impediments, and "Communities Speak" column). it is an indication of the good health of an economy. Thus it should Fourth, greater dissemination of information and education at both be viewed as a positive factor and reasons for its growth examined." the level of the govemment and of the entrepreneur could lead to Entrepreneurship and the innovations spawned by the real economy improvements in both the real and formal economies. Government show that individuals are gaining legitimacy over hierarchical leaders, on the one hand, need to be more aware of macroeconomic bureaucracies. Through working with local communities in small- policies and their long-term consequences. At the level of the entrepre- scale enterprises, individuals have the potential to build a national neur, information on how to use available credit systems, how to economy able to compete on the world market-given that correct market prDducts, and how to manage business and accounting systems macroeconomic conditions are in place. Rather than viewing the rise could be more widespread. in the numbers of small enterprises and self-employed as indicators And finally, a predilection for and dependence on capital- of poverty and economic failure, they should instead be recognized intensive manufacturing and infrastructure fails to take advantage of as contributing to a country's economic future. many developing countries' most valuable resource-labor. Many of In the end, the solution may lie in governments and entrepreneurs these capital intensive industries cannot absorb enough labor in working together to encourage the creation and enforcement of urban areas where the vast majority of people are beginning to live. appropriate regulations, innovative credit mechanisms, sound This has created a two-tiered economic and social system-the very macroeconomic policies, and grass-roots community development. rich capiltal intensive business sector and the un- or underemployed Without a combination of these, the developing world's real urban poor. A possible solution would be for greater investment in economy will fail to benefit either the formal sector or the poorest labor intensive industries, such as (properly regulated) assembly of the poor. plants or garment factories to increase employment. At the same time, human capital needs to be improved through better education and health care services. -Mary McNeil THE DRHBJi RGE Winter 99Q3 The Informal Economy in Central Europe: A Letter from Hungary by Robert Manchin Robert Manchin is an Hungarian sociologist currently serving as Vice-President of the Gallup Organization in Central and Eastern Europe. J here are two common misperceptions about the illegal economy in spheres of transborder trade. Eastern Europe. One has to do with the definition of the black, or It is no accident that international peddlers have appeared all over illegal economy, as something outside the normal functioning of the cities and villages of Eastern Europe, making profits on the differ- the economic system. The countries of Eastern Europe, which ences between state subsidies and consumer prices in the former state shared an ideologically defined statistical measurement system, socialist economies. For example, we have found that about half of the never did consider a whole range of activities as "productive." population did not: buy any clothing during the last year through Further, any economic activity not done with bureaucratically "regular" legal store outlets, but used only the services of these new defined categories was seen as potentially dangerous to the regime. intemational street peddlers from Poland, Romania, and the Ukraine. Thus, the illegal economy was defined in an ideological and political No matter how strongly the new Hungarian private ventures complain sense-much as income tax avoidance is seen in Western societies. that local authorities should stop "illegal" trading by foreigners who do The second misconception concerns the myth of so-called full not pay any taxes, it is still the only way substantial parts of the popula- employment, a peculiarity of State-socialist societies. In these societies, tion can afford any new clothing. full employment was tantamount to employing all able-bodied persons The relative successes of various technical assistance missions, without taking into account whether or not they produced revenue to advocating "shock-therapy" solutions, can be measured by the profits of cover the costs of their employment. Full employment became an this new strata of unemployed, or third-world type street peddler. The ideological tenet of the system. It had the noneconomic function of not desperate attempts of third (and post-second) world migrants to some- letting anybody escape dependency on the party, which controlled all how reach the "promised land" of Western Europe through the back organizations. It provided jobs and wages to people who otherwise doors of Hungary or Czechoslovakia, have helped ease the credit and would have been unable to be absorbed into a modern economy. loan problems of the underdeveloped banking infrastructure of the With privatization of both the agricultural and industrial sectors, the region, but the problem still exists. existence of this labor force had to be economicaUy rationalized. Freed continued an page 8 F from the political pressures of the state to provide a social welfare function at the firm level, privatized businesses began to get rid of labor f _ _ previously employed for nonmarket reasons. As a result, in regions where the transformation of state enterprises are most advanced, either because of privatization or the impossibility of further operating under the principles of the state, unemployment rates have reached 40 to 50 percent. Unemployment is worse in rural areas, which were the last to be industrialized. In these areas, unemployment is particularly hurting those industries employing female and unskilled labor. The regionally uneven unemployment rate can be illustrated by many examples. For instance, in one village in Southwestem Hungary, the number of employed persons in 1989 was 650 (out of 950 inhabitants); now only 50 people are employed. There are whole microregions in the - Northeastern parts of Hungary, near the Ukrainian and Romanian borders, where unemployment rates are as high as 70 percent In addition to the phenomenon of those who would have never been employed in a market economy now becoming jobless, the unemployment rate (less than 1 percent in 1989 and more than 12 percent at the end of 1992) has soared TIHE GROWTH OF THE INFORMAL SECTOR What happens to the informnal sector of the economy when this occurs? What happens to people and households who have suddenly, because of political change, found themselves in a labor market? . r some observers it is a simple conceptual or theoretical problem. Bu - e are finding that the outcome is increasingly determining the poL. .al and social stability of the whole region. A natural path of bu iaess development has arisen, beginning with traditional petty cross country trade to large-scale mafia type international smuggling. Such trade has come to control whole regions and international distribution channels. As in any known case of rapid accumulation of capital, the most phenomenal business successes can be found at the paralegal THE URH19 R9E - ~~~~~~~winter 1993 LEITER FROM HUNGARY continuedfrom page 5 THE CLODSING OF MARKETS they are doomed to either turn toward a subsistence economy or to move outside of the controlled legal sphere of economic activities. As theoretical debates on how to finance the transition to a The French peasants are worried about the potential agricultural market economy and on how to use various models of competition from the new aspiring business partners from the East. But 1i privatization to create a new middle class continue, a bleak simnilarly, the low-labor-cost countries of the European Community are scenario is rising that is fueling the illegal economy. This scenario not very eager to speed up the process of integrating these marginal and may push the grey economy to a black-and a very black-economy. struggling economies. Yet without large-scale capital investments into This scenario is the rigid closing of Western markets to products of modernizing the now totally outdated structures of these econornies, the the new private sector. The hope was that this new small-scale, largely development of new private entrepreneurs in sectors where cheap labor self-employed sector could become the nucleus for rebuilding a market allows goods to be competitive in the Westem markets will disappear. society and economy in Eastem Europe. That hope is fading. Without Economic historians have plenty of stories about the disastrous access to a world market, these entrepreneurial activities cannot grow social consequences of paralegal economic practices of societies. The into viable businesses. Instead, various households are using survival politically short-sighted isolationism of the Westem markets can derail strategies, combining unemployment benefits with start-up credits from the outburst of entrepreneurial revolution of these Central European dubious sources to provide subsistence level economic survival for their economies. While the bulk of the population is economically pessimis- households. tic (or to be more precise, realistic) regarding their future, in each of the The closing of markets by Westem economies and their attempts to countries we find a new economic elite that sees an historical opportu- protect every sphere in which Central or Eastem European economies nity for themselves. It would be a great irony if the newly found could poterntially have comparative advantage, further dwarfs the economic freedom of Central and Eastern Europe-because of struc- potential mrarket transformation of the emerging private-sector eco- tural or externally imposed political barriers-led only to the nomic activities. By structurally prohibiting the small-scale development of a peripheral economy similar to the third world's entrepreneurs from integrating into the larger markets and specializing informal sector. or modernizing to become competitive with their Westem counterparts, m World Habitat Awards Entries are now being sought for the 1993 World Habitat Awards. This is the ninth year of the annual competi- tion, which was designed to attract outstanding designs for human settlement projects. Designs are sought, from both developed and developing countries, that offer sustainable solutions to current housing problems. Two award winners each year receive £10,000 plus an individually designed and crafted silver trophy. Awards are presented each year on World Habitat Day. Preliminary submissions should reach Mr. Peter Elderfield, Director of the Building and Social Housing Foundation, Memorial Square, Coalville, Leicestershire LE67 3TU, U.K., by July 31 for inclusion in this year's competition. The Walter Segal Self-Build Projects, London. Winner .~~~~~~~~~~~~~~~~~~~~~~~96 THE 1R9Ri R6E Winter 1993- - - -------------------------------- Corporate Involvement in Urban Poverty Alleviation by Jonathan F. Joson Jonathan F. Joson runs the Manila Branch of the Communirt Management Program, an initiative of the Philippine Business for Social Progress, an NGO supported by private business and the donor community. The Comuanirv Mortgage Program is involved in helping Ii' low-income communities buy land._ Iwenty-two years ago, in 1970, the Philippine Business for Social implementation of the Area Resource Management Program or ARM. Progress or PBSP was organized by a core group of business The Metro Manila ARM program seeks tc assist urban poor communi- leaders and industialists. Its mission was to improve the quality of ties which had previously been assisted in land acquisition. Its life of the Filipino poor. As a unique foundation, PBSP tapped the components include: discipline and the management technology of the business community to help solve poverty. 1. Site Development-Provision of financial and technical Its focus has always been in rural development, building partner- suppon in engineering, designing, and construction of ships with peoples, organizations, and local nongovernmental pathways, drainage systems, and housing reblocking. organizations (NGOs) in implementing productivity improvement and enterprise development projects. It conducts programs and projects in 2. Livelihood and GainMul Employment-Assistance in job- rural areas with seed funds from corporate contributions and with co- matching, skills training, market tie-ups, and provision of financing from bilateral sources and government. working capital for microenterprises for women. PBSP's continuing bias in rural development is built on the premise that healthy agri-based economies contribute to decent family incomes and 3. Basic Social Service-Provision of health services and retard urban in-migration. Yet Metro Manila's population has ballooned to facilities, potable water systems, and legal electrical 8 million people. Of the total population, 1.6 nillion people or 274,270 connections. families reside in 415 identified squatter colonies. Ninety-five percent of these families subsist on incomes below the 5,400 peso (US$ 216) a month 4. Urban Environment Management-Technologies in poverty threshold of the city. waste disposal and recycling Given these baseline figures, PBSP decided to become involved in a Community Mortgage Program (CMP) in 1990. The CMP is an innovative government financing scheme designed to enable landless urban poor to acquire undivided tracts of residential land through community ownership. The program consists of a financing package for NGOs to pay the cost of organizing urban poor communities around land negotiations and mortgage processing. DESWOS, a German NGO involved in social housing was tapped by PBSP as a funding partner for _ __ community organizing. Assistance from DESWOS is primarily a bridge financing scheme for NGOs in hiring community workers. of which they are paid P500 (US$20) per family in the event of a land takeout. This takeout fee will then be paid back to PBSP, which will form part of a fund pool, as agreed with DESWOS, for future CMP projects. USAID has also provided financial assistance through its decentralized shelter for urban development (DSUD). Its aim is to further develop capabilities of 50 NGOs in implementing the Community Mortgage Program with 200 community associations. Save the Children-United States also provided funds for a consortium project that will be a prototype in a Metro Manila municipality for the urban poor. Although PBSP's scope is nationwide, in Metro Manila alone around 57 community associations are in various levels of land acquisition. This process will eventually benefit 61,300 individuals or 10,300 families (this is 3 percent of the total squatter population in Metro Manila) who currently inhabit 62 hectares of land. Companies seeking to participate can provide funding support to the Permanency improves the psyche of landless urban families. As components mentioned. They can also lend a hand in technical support in soo.r as they have land ownership their perspectives change. They engineering and site pilanning. Other companies interested in building bep: planning for bigger things such as site development and house business partnerships can enter into sub-contracting and job-matching rebij. sing. Incremental improvements in their houses are also evident. arrangements with inte.rested urban poor communities. Companies may Thet, ,ong-time savings are used for buying cement blocks for semi- wish to adopt communities solely or can enter a consortium with other concreting their walls and floorings. companies in the vicinity for resource pooling anrangements. Land ownership is an important first base intervention but does not A partnership is work-ed out where corporations provide crucial completely solve poverty. Early this year, the board of trustees of PBSP support, hand in hand with govermment, NGOs, and urban community approved the inclusion of Metro Manila as a priority area in the continued on page 10 J THE URRRN ROE Winter 1993 PHILIPPINE NGO continuedfropm page 5 associations. The traditional role of companies as mere providers of systems and pathways concreting for a community. Another multina- employment to host communities thus widens to being corporate tional petroleum company will be providing scholarships to qualified citizens in the urban setting. From a previous nonactive role as solely dependents of urban poor families with employment match-ups after funds provider, PBSP's corporate members are now open to technical skills training. The story continued with the initial 10 to 15 . ailE possible business partnerships with urban poor communities, corporations that have pledged their support to partnerships with urban . providing work contracts previously open only to small and communities in a unique session conducted for 18 member companies medium-scale entrepreneurs. An example is a consumer products firm last August 18. 1992. On December 10, when PBSP sponsored the that is opening its product packaging requirements to a womens' group, annual gathering of its 151 membership companies. the urban program providing additional income of P80 to P100 a day for 30-40 women. was launched as a major undertaking with active participation of the Another case is a large private bank bridge-financing the cost of water business sector. … The Battle for the Urban Management Programme Launches Pavem ents Regional Centers in SsiaIPacific and Latin Nmerica by Sheela Patel The UNDP-UNCHS (Habitat)-World Bank Urban Management Programme held its first regional launch workshop from October 5-9 Sheela Patel was one of the founding members of the Society for the in Kuala Lumpur, Malaysia. The workshop, hosted by the Asia and Promotion of Area Resource Centres (SPARC) and has worked with Pacific Development Centre, was attended by 36 regional experts the organizationfor eight years. from 10 Asian-Pacific countries who discussed the five substantive subject areas of the UMP (Land, Infrastructure, Urban Environment, TIhe city of Bombay has many problems that defy solution along Municipal Finance and Administration, and Poverty Alleviation). "routine lines." One of these is the approximately 1.5 to 2 million Participants discussed how best to meet the UMP's goal of capacity people who inhabit the sidewalks, living in tentlike or makeshift building at the country level in each subject area, and discussed the structures. Studies show that most pavement dwellers are migrants to creation of regional panels of expertise to provide technical the city; former landless agricultural workers and rural artisans whose assistaIne within the region. Nathaniel (Dinky) von Einseidel has been named the UMP Regional inability to earn a living in their villages has forced them into the city. Coordinator fbr the Asia-Pacific Region. He can be reached c/o Asia and In the city they are able to find a wage to feed themselves. They live Pacific Development Centre, Pesiaran Duta, P.O. Box 12224, 50770 near their work and pay to use public toilets, buying water from nearby Kuala Lumpur, Malaysia (iix: 60-3-2550316). tenements. Most dwellers live in continuous fear that their makeshift A preliminary regional launch workshop was held in Quito, Ecuador hepauthorities. November 28-29 to initiate the UMP in Latin America. The workshop hOmeS and communities will be broken up by the municipal authonties. vwas attended by 21 professionals from nine Latin American countries, It is ironic that pavement dwellers and sidewalk vendors, who representing a broad range of expertise on urban development issues in should be the focus of development projects, are denied assistance the region. The meeting was chaired by Pablo Trivelli, the UMP due to their battle for the pavements. Vendors on the street in both Coordinator for Latin America. He can be reached c/o UNDP, P.O. Box business and residential districts of the city are entrepreneurs who 17034731, Mariscal Foch 265, Edificio Naciones Unidas, Quito, provide consumers with cheap doorstep service, such as in food, Ecuador (fax: 593-2-549447). clothing, equipment, stationery, and other items. For the poor An update on UMP activities will be included in the next issue of person, such activities are the first step toward self-employment The Urban Age. using a small amount of capital. The sustainability of their enter- prises. despite repeated confiscations by authorities, attests to consumers' support. Mahila Milan was formed in 1987 to organize women who live on Demolitions continue. Homes are demolished and stalls or carts pavements and, with SPARC, to help them lobby for their rights with goods are confiscated and destroyed-only to be rebuilt again (among which is access to shelter). The organization works to ensure and broken again. Within this vicious circle, people find the strength that women are supported by the entire community and are encour- to rebuild houses, to restart their vending and other jobs, and life aged to work both within their communities and with women from goes on. P'avement dwellers, however, through this process never get other communities on innovative income-earning activities. The a chance to build on their "assets" as the city keeps demolishing NDSF has created an information base for mobilizing pavement their homes. dwellers, which it uses in conjunction with its work with SPARC. SPARC (Society for Promotion of Area Resource Centres) began NSDF has member federations in Bombay and other cities in India. its work with the pavement dwellers in 1984, and over the last seven SPARC began its work with women from families living in years has designed and executed many training programs that help hovels on the pavements of Bombay. By starting with what is saw as pavement dwellers form cooperatives to design houses and settle- the most vulnerable group, it hoped to develop a methodology that, ments which they are able to afford. although it seems to show little in terms of concrete gains, has set in SPARC has two partners-Mahila Milan and the The National motion a process that over the long-term will improve the position of Slum Dwellers Federation (NSDF) that work in 10 to 12 Indian cities the city's most marginalized groups. and are linked up with organizations in other Asian countries. THE UBRDRI ROE Winter 1993 I --- A New Method of Surveying the P'oor Takes Root in Manila The editor of the Urban Age interviewed Dr. Mahar Mangahas, head of the Social Weather Stations in his offices in Quezon City in October, 1992. Dr. Mangahas has written extensively on the need to provide the general public with independent, timely, and accurate data on A economic and social conditions in the Philippines. For the first time in its presidential history, pollsters accurately predicted the election of President Fidel Ramnos in the Filipino election . ,_ on May 11, 1992. The forecast was the work of a new kind of survey organization in the Philippines, the Social Weather Stations (SWS), organized in 1985 by Dr. Mahar Mangahas at the Philippine Social Science Center of the University of the Philippines. The SWS conducts attitude surveys on a wide range of topics, from party affiliation to consumer preferences. A non-profit association of social scientists, its work has included 13 national surveys and an equal number of citywide studies commissioned on a variety of subjects. _; SWS' methodology is based on the premise that social indicators are at least (if not more) important than economic indicators in assessing a wide range of social and political issues. Throughout its history, it has used this approach to monitor poverty levels within the Philippines. According to the SWS methodology, focusing on data related to household's "self-perception" of poverty provides a more accurate look at both the extent and range of poverty in certain areas. factor to the rate of poverty than is growth in real per capita income. For example, those surveyed are asked to rate themselves on a scale of Mangahas also believes that the trend in poverty is strongly affected by poverty from "poor" to "inot poor." This data is used in creating a changes in the state of "national anxiety" in relation to political "poverty line," which fluctuates according to the data gathered. developments. Mangahas sees this as creating a "bottom up" approach to identifying The best part of the approach is that a host of issues can be analyzed poverty levels-a process not based on artificially set poverty lines based on the sarne survey results. "The measurements we use are predetermined from above. homegrown," says Mangahas, "and thus sustainable so that they can Surveys include questions on politics, households' ability to make be put together with economic indicators, such as levels of GNP. improvements in their homes, how much residents fear violence in With this added information, we are hoping that economists will not their neighborhoods, and what they think of the current administration. focus all their attention on growth without seeing that it often has They are conducted frequently, and in the case of those used to gamer little effect on poverty levels." poverty data since 1985. Surveys consist of professional interviewers SWS has been able to sustain itself financially through charging canvassing a very small sample size-approximately 100 households- subscribers' fees fcor survey data. The more critical the social asking residents a series of questions over a 30 to 45 minute period. situation, for example the attempted coup in December 1989, the Because of the variety of questions asked, several different issues can greater the public's need for reliable social survey data seems to be. be monitored simultaneously and data-processing time is minimal. The increasing number of data users has helped to defray costs. For Critics of the SWS approach say that it lacks validity on the poverty example, the group measured the social impact of the Upper issue because it does not concentrate on household income levels or Pampanga River Integrated Irrigation Project, financed in part by the expenditures per se. but on more nonspecific criteria. If a respondent World Bank and is conducting a series of survey modules for the rates himself as "poor," for example, the next question asked is "How Catholic Church's National Secretariat for Social Action on correla- much would your family need for home expenses per month in order to tions between religious indicators and indicators of social consider itself not poor?" Other questions could include "Do you feel consciousness. It rernains independent of any one sponsor. In the you are better off this year than last year," or 'How many people do case of highly sensitive topics, sponsors can obtain a strict period of you feel are better or worse off than they were last year." Such ques- embargo on the data and research findings it commissions the SWS tioning leads to a wide array of self-rated data that is usually not to undertake. After projects are completed, all SWS survey data are considered in strict economic analysis. made available to the public, although SWS reserves the right to The key, according to Mangahas, is for consistent data gathering charge a fee. that can project realistic and timely survey results. "Poverty is highly Public awareness, says Mangahas, is key to the operation. vCi . e," says Mangahas, "and we have found that it needs to be "Getting reliable data and just showing it to the people means so mc. htored frequently." More detailed analysis of data often takes up to much," he says. "People were skeptical at first, but little by little we twco o three years to complete; SWS surveys can be completed quickly are gaining more creclibility. We believe that politics and economics and at minimal cost since they are labor intensive. "We also discovered are related, and that politics makes good democracy in a real social that peoples' income is not everything; that many people whose science sense. It is therefore important to give people as much incomes are reported as low do not consider themselves poor." Accord- information as we can." ing to Mangahas, the rate of inflation is a much more determining m THE URRRK RGE Winter 1993 ~~~~~~~~~- - - - - - - - - - - - - - - - - - - - - - - - - --- - - oji WIIT CITY MRNRGER[S DESH We actively seek our developing country readers' input for this Barclays Bank and ZIMBANK. Under the credit program ZWFT section. Our intention is to broaden our network among developing evaluates potential client business and helps prepare loan proposals. In country city managers and their urban representatives. early 1992 ZWFT started up a revolving loan fund using a low interest loan from the Ecumenical Development Cooperative Society. ZWF1 R WANDA CREDIT AN) SAVINGS PROGRAM became a WWB Affiliate in 1985. XCo t A, B. ZWFT runs a business management training program, with Contact: Duterimbere, Blvd. de R'OUA, B. P. 738 Kigali. courses in marketing. costing and pricing, buying and selling. Rwanda., Tel.: 011-250-73598 production management, stock control, and developing a business plan. Clients are charged a small fee and participation is a prerequi- DUTERIMBERE, a non-profit financial institution established in site for credit eligibility. Short training workshops are also held on Rwanda in 1987, helps low-income women build businesses through leadership and personal development topics. credit, savings, training, and technical assistance. DUTERIMBERE guarantees a imaximum of 60 percent of each of the loans it extends through an agreement with Union des Banques Populaires. It launched ___ a direct lending program in April 1991. The program evaluates enter- 1 t t I =t 1 _ prise projects, helps clients prepare loan proposals. and monitors client operations and repayments. DUTERIMBERE has been an affiliate of ,_= Women's World Banking (WWB) since 1988. A DUTERI]vIBERE has developed and published a manual. 'Yraining a - Guidelines for the Development of Small Enterprises." It conducts --' - research and identifies new appropriate technologies for target clien- , tele, including food processing and handicraft production, arranging i sales exhibits, and hosting informal meetings of entrepreneurs. CASH POOR NO MORE-A NETWORK OF ASIAN p21v- ,t',V CREDIT ORGANIZATIONS - 5 - - -- l s arle iiiciele to tra inl entrtepr-enleurs ill slioe lrepair.i:~ ; Contact: Dr, Ismael P. Getubig, Jr. Il - l 1 CASHPOR, cdo Asian and Pacific Development Centre, Pesiaran Duta - P.O. Box 12224, 50770 Kuala Lumpur, Malaysia The Network for Credit and Savings for the Hardcore Poor in Asia- NICARAGUAN MICRO-ENTERPRISE FOUNDATION Pacific (CASHPOR) is an independent, non-governmental, non-profit. regional organization. It represents eight member programs working in five Contact: FAMA, Victor Telleria or Leanna Vidaurre, De la Maison countries. all of which provide credit and savings to the poor. Some of the Teodolinda, 3C. Al sur y 1/2 Abajo. Managua, Nicaragua. Tel.: 505-2- credit organizations also provide technical assistance and counseling to 668690, Fax: 505-2-668689. clients. All rmembers adhere to the Grameen Bank's model of cooperative credit, bottorm-up management, and group responsibility. The Micro-Enterprise Support Foundation, or FAMA, started CASHPOR aims to reduce hard-core poverty throughout the region by early in 1992 in Nicaragua making small loans at market rates to assisting with the scaling up of existing credit and savings programs for the owners of tiny businesses. The foundation's start up support came poor and promoting the establishment of new programs where they are from ACCION International and the Austrian government. needed. The organization's founding members have been directly or In its first five months, FAMA made loans to more than 1.700 indirectly involved in credit and savings programs pattemed after the owners of small family businesses. Loans, which average just $150, Grameen Bank's approach. Most of CASHPOR's 1992 and 1993 funding go to mechanics, vendors, seamstresses, carpenters, and others who has come from a US$52,500 grant from Canadian Intemational Develop- would otherwise have no access to bank credit. As in the well-known ment Association, under their ASEAN-Canada Fund. Program activities Grameen Bank approach, single loans are provided to groups and include workshops and exchange visits, research projects, and the exchange then each member is responsible for the payback of the entire loan. of information through the organization's newsletter, FAXNET. In addition, ACCION International is a non-profit organization that supports the Graneen Bank Replication Programme, Phase m, implemented by the credit and business training for micro businesses. It works in 15 Asia-Pacific Development Center with funding from UTNDP, and follow-up countries, lending in amounts as low as $25 and up to $2,000. assistance from CASHPOR, will be selecting potential replicators in India, ACCION has so far been available throughout Latin America and .ndonesia, 'Viet Namn, and Nepal. South America, providing loans and business classes to those in need. The group is expanding its activities to include regional . AMBABWE WOMEN'S FINANCE TRUST, LIMITED training for its Latin American affiliates and has started supporting microenterprise credit operations in the United States. Contact: WVomens Finance Trust of Zimbabwe, 10 Masocha Dlovu Way, Parktown Prospect, Hatfield, P. 0. Box 8023 Causeway, Harare, Zimbabwe, Tel.: 263-4-50127. Serving urban and rural women entrepreneurs and traders, Zimba- bwe Women's Finance Trust (ZWFI) acts as a loan broker with THE URRRI R6E Winter 1993 institutional issues underlying the This volume looks at poverty Several pilot projects sup- growth of the sector. Finally, each alleviation progrwas in the Asia ported by the Asian and Pacific author proposes solutions to the region, and highlights critical Development Centre (the UNDP- scenario, both in ternms of possible elements for success by presenting ESCAP-sponsored research "negative" reforms (which would case studies from several countries. institution that compiled the eliminate barriers to fornality) and Looking across the region, the book) have also been under L "positive" reforms (which would editors stress that continued way in Malaysia, Indonesia, create new insitutions or policies to poverty in parts of Asia proves and the Philippines since 1986 provide informnals with services they that the poorest of the poor are to test the replicability of the The Silent Revolution: are not now receiving). still not being reached effectively Grameen Bank's approach. The The Informal Sector in In conclusion, Chickering and (despite concerted poverty relief efforts appear to be succeeding. Five Asian and Near Salahdine fault neither the efforts in the late 1970s and Eastern Countries institutions of the fortnal society throughout the 1 980s). Some key nor the dysfunctions of the shortcomings include: the absence CITIES in by A. Lawrence Chickering and informal economy. They make of clear criteria for identifying the the 1990s Mohamed Salahdine. San clear that they see the solution not poor; the failure to treat the Francisco, Ca., International in purely economic or sociologi- mobilization and empowerment of Center for Economic Growth, cal terms, but as a combination of the poor as a political process; the 1991. ISBN I-55-815-163-X. both disciplines. Policies that failure to devolve responsibility and a A. Lawrence Chickering and enable individual entrepreneurs to control to the local. level; and the Mohamed Saladhine in their prosper need to be developed with continued emphasis on free hand- introduction to The Silent grass-roots support; regulations outs or heavy subs,idies for services, Revolution take the view that must be created with cultural as with the poor as passive beneficia- Cities in the 1990s: The those working in the informal well as econornic considerations ries rather than active participants. Challenge for Developing sector represent a resource rich in in mind; and governments need to Several of the 10 case studies Countries physical and human capital. They reorient their capital expenditures demonstrate successful ap- argue that reforms should be to accomodate the growing labor proaches. The first three-the bv Nigel Harris (ed). London: considered that enable informal force in many of the world's Self-Employed Development Planning Unit, workers to enter the formnal cities. The authors acknowledge _ Women's University College Press, 1992. system, reforms that would work that whatever the solution, the Association In November 1991 the British both to the betterment of the question is not whether govern- . (SEWA) Bank Overseas Development Adminis- workers and to the overall ments will expand opportunities of Ahmedabad tration together with the efficiency of the economy. By for the poor but when. With in India, Development Planning Unit of taking this stance they ask the informal workers exceeding 50 Grameen Bank University College London question, "Is it the dysfunctions percent of the labor force exam- - in Ban2ladesh. sponsored a workshop to discuss and pathology of the informal ined in the five case studies and _ and the new thinking and approaches to sector or the institutions of the producing between 40 to 60 Production urban development. This volume larger society that limit informal percent of GDP, this "silent Credit for Rural Women in is a record of the proceedings of entrepreneurs' opportunities to revolution is changing societies Nepal-provide lo w income the workshop, which was attended work for their own economic and everywhere. It is confronting people with credit that is used by senior representatives of donor social progress?" them with extraordinary chal- for self-employment, such as agencies as well as by experts Case studies from Morroco, lenges to expand opportunities by trading and small enterprise from cities and governments in the Philippines, Sri Lanka, establishing institutions and activities. Under these schemes the developing world. Thailand, and Bangladesh begin policies that will permit full the poor organize thems, T-" Proceedings are broken with a definition of what "infor- into groups and obtain creui UU; two parts. The first mal" means in each country. without collateral. focuses on a discussion of the Each gives a "human" picture of Other case studies include a new policy agendas of the major informal workers-who they are, Reaching Out rural village development scheme multilateral agencies, country how they got where they are, Effectively: Improving the in Pakistan supported by the Aga experiences, urban development their capacities, and their poten- Design, Management and Khan Rural Support Programme, strategies and issues of urban tial. They estimate the size of the Implementation of the private- and donor-supported management. Part two discusses sector and attempt to draw Poverty Alleviation Philippine Business for Social policy experiences, including a conclusions as to why people Programs Progress effort that mobilizes and review of country experience, cioose to be outside of the formal channels resources for social and a discussion of productivity e-onomy. Other issues addressed by Ismail P Getubig, Jr. and M. development at the provincial and poverty in developing include the effect of regulation on Khalid Shams (eds.), Kuala level, a network of Philippine country cities. the society, the causes of infor- Lumpur, Malaysia, Asian and farming and credit cooperatives, In his introduction, Nigel mality, the costs of remaining Pacific Development Centre, and a small farmers' development Harris points to the growing informal, and the political and 1991. ISBN 967-9928-26-8. project in Thailand. continued on page 14 p THE URHRK RGE Winter 1993 REVIEW"S from page 13 Boohs and Resources urbanization, of the developing major issues involved in the world and tie acceptance that development process, relating Access to Basic Infrastructure by the Urban Poor, by Aurelio Menendez. cities are becoming coun- them to Canada's particular EDI Policy Seminar. Report No. 28. Washington, D.C.: The World Bank, _ tries' niost dynamic sources experience and to important 1991. of economic development questions on the international A Decent Place to Live: Urban Poor in Asia, by Denis Murphy. Bangkok: s o and national savings. He development agenda. Chapters Asian Coalition for Housing Rights, 1990. quotes World Bank figures include discussions on the "An Institutional Approach to Urban Informal Sector Policies in showing that 60 percent of the background and context of the Developing Countries: Lessons from the Past, Directions for the Future," value of output of developing urbanization process and city (draft) Programme Development and Support Division, United Nations countries comes from urban areas. growth; macroeconomic issues in Development Program, May 1992. "Urban productivity," writes urban development; the impact of "Banking With the Poor. Report and Recommendations" (draft), the Harris, "was thus crucial to urban policies on women, Foundation for Development Cooperation. Kuala Lumpur: Asian and national development-including children and the disabled: urban Pacific Development Centre, 1992. the development of rural areas- systems and the environment: Combating Poverty: Innovative Social Reforms in Chile during the 1980s, and to improving the conditions empowerment: variations with by Tarsicio Castaneda. San Francisco: International Center for Economnic of the poor." In his concluding and between the developing world Growth, 1992. chapter, he addresses policies regions; the development and role Human Settlements in the U. S.: Sustaining Uneven Development, by affecting the' "underlying" urban of Canadian institutions, goods Willem van Vliet, Research Paper 183, Toronto: Centre for Urban and economy which deternine both and services; and the implications Community Studies, 1991. productivity and poverty among of the Canadian experience for Investing in the Urban Poor: The Metro Manila Livelihood Program. city dwellers. He admonishes developing countries. Occasional Paper No. 3. Manila: Philippine Business for Socia] international funding agencies for The volume concludes that Progress, 1987. not placing more emphasis on this addressing urban development Markets in Developing Countries: Parallel. Fragmented and Black, by real economy, which city manag- issues comprehensively, in the Michael Roemer and Christine Jones (edits). San Francisco: International ers are too often preoccupied to context of a wider assistance Center for Economic Growth, 1992. address. He urges the interna- process, provides a crucial link Popular Participation and Development: A Bibliography on Africa and tional comununity to aid city in efforts to achieve sustainable Latin America, Hugh Dow and Jonathan Barker, Bibliographic series managers in understanding the development. "In the end," 16. Toronto: Centre for Urban and Community Studies, and the Centre role of the real economy and in writes editor Richard Stren," to for Research on Latin America and the Caribbean, York University, identifying city-specific agendas deal or not to deal with the and mechaiisms for monitoring it. urbanization of the developing Poverty, Growth and the Fiscal Crisis, by Emmanuel S. De Dios et. al. world is not a choice. The real Manila: Philippine Institute for Development Studies, 1992. choice is how to deal equitably Reducing Poverty: An Institutional Perspective, by Lawrence F. Salrnen. A. Ub- ~, ,,,,^,and coherently with the facts of Poverty and Social Policy Series, Paper No. 1. Washington, D.C.: The __________ urbanization, in a manner that World Bank, 1992. reflects the complexity of the The Informational City: A New Frameworkfor Urban Change, The City development process itself." in the 1990s Series (Lecture 3), Manuel Castells, Res. Paper 184 Toronto: Stren calls for a holistic Centre for Urban and Community Studies, University of Toronto. approach in solving the urbaniza- The Other Path: The Invisibile Revolution in the Third World, by tion phenomenon, one that takes Hernando de Soto. New York: Harper & Row Publishers, 1989. J a ~~~~~~~~into account spatial systems; land- into account spatialsyst d Towards Full Employment Strategy for Accelerated Economic Growth, by use changes; cites Ismael Getubig Jr., and Harry T. Oshima (eds.), Asian and Pacific biogeochemical cycles; the Development Centre, 1991. importance of environmental An Urban Problematique: factors such as water, wastes, TRIOPS 19d2-Troifcal Sctentific Bomk55different international The Challenge of energy, and transport; and the organizations. Toeche-Mittler Distribution, Hindensburgstr. 33, D- 1600 Urbanization for informal sector. Governance and Darmstadt, Germany, Fax: 06151-314041. 1992 Development Assistance decentralization; the advocacy of Urban Research in the Developing World: Towards an Agenda for the self-help groups; improved public 1990s, Richard Stren and Patricia McCarney, Major Report Series 26. by Richard Stren et. al. Toronto: services and shelter; and the role Toronto: Centre for Urban and Commnunity Studies. 1992. Centre for Urban and of NGOs, community groups, and Women and the Urban Street Food Trade: Some Implications for Community Studies, 1992. international donor agencies are Policy, by Monique Cohen. DPU Gender and Planning Working Paper ISBN 0-7:727-1359-6 also examined. No. 12. London: Development Planning Unit, University College of This book takes the view that London. 1992. urbanization in the developing Working Togetherfor Small Enterprise Development, by Roger Teszler world is a dynamic force that and Theo Kolstee. The Hague: Ministry of Foreign Affaris, Development needs to be better understood in Cooperation Information Department. 1991. relation to development assis- tance. The volume examines the THE URRRN R6E Winter 1993 Below is a list of urban events and training courses culledfrom ThlleMlNe s currentfiles. We regret that more eventsfrom developing countries are not listed. If you would like your event to be included, please send announcements to the Editor, T8URp Rm SIO-108, The World Bank, 1818 H Street NW, Washington D.C. 20433 Conferences Education Programs and Courses _ Kulala Lunpur, Malaysia-February 8-10, 1993. International University of Birmingham-Research-Higher degrees by research Symposium on Resource Management: The Key to Sustainable only, Masters in Developmental Administration-12 months, Masters Development. For more details contact: Institution of Surveyors, of Philosophy-24 months, Doctoral Programme-3 years. Malaysia, 3rd floor, Banguan, Jurukur, 64-66, Jalan 52/4, 46200 Masters-1 2 months. Oct.-Sept. Courses plus dissertation, Petaling Jaya, Selangor, Malaysia. Mlfasters in Development Administration, Masters in Public Economic Management. Diplomas-9 month courses. Oct-June. Development Tunis, Tunisia-February 15-19, 1993. Conference on the Administration, Development Management, Information Management Development and Planning of Urban Transport (CODATU) VI. For for Development, Local Government Managemnent. more details contact: Societe Nationale des Transports, 1, avenue Habib- Short Courses and Programs: Bourguiba-lOOl Tunis, Tel.: 216-1-348-507, Fax: 216-1-342-727. Management of Urban Development-12 weeks: Sept-Dec 93/94; Excellence in the Public Sector-6 weeks: Oct-Dec 1993; Improving The Hague, Netherlands-March 25-27, 1993. International IFHP Local Authority Financial Performance in the 1990s- 12 weeks: Feb- Conference: Improving the Environment-New Tasks for Urban May 1993/94; Improving Performance in the Public Sector Services-6 and Regional Planning. For more details contact: IFHP-Congress weeks: Oct-Nov 1993; Information Managementfor Senior Secretariat, Wassenaarseweg 43, The Hague, Netherlands, Tel.: 31-70- Managers-Jan-March 1993; Managing Sustainable Rural Develop- 328-1504/324-4557, Fax: 31-70-3282085. ment-10 weeks: May-June 1993/94; Social and Economic Assessment-Jan-March 1993; Environmental Management-6 weeks: Orlando, Florida-May 2-8, 1993. Motor Vehicles and the May-July 1993. Environment. For more details contact: International Road Federation, 525 School St. SW, Washington, D.C., 20024, Fax: 202-479-0828. London School of Hygiene and Tropical Medicine-The Urban Health Programme Department of Public Health Policy announces a Toronto, Canada-June 12-17, 1993. International Union of Local short-course on Urban Health in Developing Countries. For additional Authorities 31st.World Congress. For more details contact: IULA information contact: Sarah Atkinson, Short Course on Urban Health in Congress Secretariat, Chief Administrative Officer's Department, Developing CounTries, The Short Course Office, London School of Station 1060, 6th floor, Metro Hall, 55 John Street, Toronto, Ontario, Hygiene and Tropical Medicine, Keppel Street, London WC IE 7HT, Canada M5V 3C6, Tel.: 416-392-8673, Fax: 416-392-3751. UK, Tel.:(071) 927 2074, Fax: (071) 323 0638, Telex: 8953474 LSHTML G. Arlington, Virginia-June 20-23, 1993. Health and the Environment: Meeting the Chalenge for Human Development. For more details Harvard University Graduate School of Design-The Unit for contact: National Council for Intemational Health, 1701 K Street NW, Housing and Urbanization at the Harvard University Graduate School Suite 600, Washington, D.C., 20006. of Design will hold the XII International Training Program from July 7-30, 1993. The topics for this session include Project Evaliation Gainesville, Florida-August 11- 13, 1993. Affordable Housing: Techniques; Finance and Management of Public Investments; Public Present and Future. For more details contact: Dr. R. Stroh, Director, Private Partnerships and Enterprise Zones; Privatization, Shimberg Center for Affordable Housing, FAC- 101, University of Affordability, and the M1anagement of Multifamily Housing; and Florida. Gainesville, Florida, 32611. Financing Affordable Hiousing. For more details contact Jane Vera, Administrative Officer for International Programs, Unit for Housing Nottingham, England-September 6-10, 1993. The Civilised and Urbanization, Harvard University Graduate School of Design, 48 City-Responses to New Transport Priorities. For more details Quincy Street, Cambridge, MA 02138, USA. contact: Sue Jaques, Asst. Exec. Director, Velo-City Nottingham, Nottingham County Council, Trent Bridge House, Fox Road, West Development Planrning Unit, University College London-PhD. Bridgeford, Nottingham, NG2 6BJ England, Tel.: 0602-823823 ext. and MPhil. by Research. 4223, Fax: 0602 774631. Master's Degree Courses: Urban Development Planning and Policy Analysis and Management Accra, Ghana-September 6-10, 1993. 19th WEDC Conference. Process; The Economics of Urbanisation and the City in Developing For more details contact: Kathy Haywood, WEDC, Loughborough Countries; Housing in Development University of Technology, Leicestershire, LEI I 3TU, England, Tel.: Postgraduate Diploma: 44-509-222885, Fax: 44-509-211079. Urban Management and Planning Practicefor Developing Countries Certificate Courses: New Delhi, India-September 24-28, 1993. Global Forum on Urban Land Policy and Management; Housing: The Design and Environmental and Development Education: Rio de Janeiro to Implementation of Enabling Strategies; Gender Planning and Policy; New Delhi. For more details contact: Indian Environmental Society, Environmental Planning and Management; Urban Development U-I . 3rd floor, Vidhata hse., Vikas Marg, Shakapur, Delhi-I 10092, Planning Practice; Managementfor Metropolitan and Municipal India 'el.: 91-11-222-3311, Fax: 91-11-331-7301. Development. Short Courses: Computers in Development Planning; Environment and Development; Pollution Abatement; .Management of Water Resources; Energy Resource Management. continued on page 16 F THE URRH R19E Winter 1993 Urban Calendar Nelwsletters Continued from page 15 A selected list of newsletters and 10163-5850 For more information and application forms apply to: Lucie Dubinik journals carrying information on USA (Certificate and Short Course Administrator) Helen Parboo (MSc. and urban development issues. Fax: 212-963-1381 Diploma Course Administrator) Development Planning Unit, University College London, 9 Endsleigh Gardens, London WCIH ASIAN COALITION NEWS- ENVIRONMENTAL HEALTH OED, IJK, Tel: 44 71 388 7581, Fax: 44 71 387 4541, LETTER Division of Environmental Health Telex: 896559 C/O Mr. N. Munjee WHO Building Advisory Service and Information Network (BASIN) Project Consultant 121 1 Geneva 27 -UNIDO, UTNCHS-International Course on Economic Construction HDFC Switzerland and Local B'uilding Materials. June 7-July 16, 1993, Grenoble, France. Ramon House For more details contact The International Center for Earth Construc- 169, Backbay Reclamation EPA REUSABLE NEWS tion (CRATerre), CRATerre-EAG, Center Simone Signoret, BP 53, F-38090 Villefontaine, France. Tel.: 74 96 60 56. Fax: 74 96 04 63. 400 020 (OS-e05) Galillee College-3rd International Urban Management and Office of Solid Waste Planning Program. July 15-September 10, 1993. For more details ASIAN and PACIFIC U.S. EPA contact: Coordinator, International Program, Department of Urban POPULATION FORUM 401 M Street SW Studies, Galillee College, Tivon, Israel, 36000, Fax: 972-4-830227. East West Center Washington, D.C. Fels Center of Government-University of Pennsylvania-Housing 1777 East-West Road 20460 Finance Training Program-April 28-May 18, 1993. For more details contact: Marja C. Hoek-Smit, Program Director, Fels Center of 96848 GATE Government, University of Pennsylvania, 3814 Walnut Street, USA Deutsche Gesellschaft Philadelphia, Pennsylvania, 18104-6197, Tel.: 215-898-3313, fir Technische Zusammenarbeit Fax: 215-898-0864. CHF NEWSBRIEFS (GTZ), GmbH Cooperative Housing Foundation German Agency for Technical Lincoln Institute of Land Policy-Land Use and the Constitution, P 0 Box 91280 Cooperation February 12-13, 1993. Santa Monica, California, and Applying Statisti- Washington, D.C. P 0 Box 5180 cal Methods and the New Computer Technology to the Appraisal 20090-1280 Dag-Hammarskjold-Weg I Process, February 11-13, 1993 For more details contact: Ann Long, Registrar, Lincoln Institute of Land Policy, 113 Brattle St., Cambridge, 301-587-4700 D-6236 Eschbom Massachusetts, 02138-3400, Tel.: 617-661-3016, Fax: 617-661-7235. 301-587-2626 FDR Tel.: 06196/79-0 Centre for Environmental Management and Planning-Postgraduate CITIES INTERNATIONAL Telex; 41523-0 (gtz-d) Courses: Mlaster of Science-Rural and Regional Resources Planning International City Management with a specialization in Environmental Assessment and Environmental Association GLOBAL COMMUNITIES Remote Sensing, Diploma Courses-Rural and Regional Resources Interational Municipal Institute for Policy Studies Planning wvith a specialization in Environmental Assessment and Develont Munict for C onnct AvudNeW Environmental Remote Sensing. For more details contact Brian D. Development Project 1601 Connecticut Av. NW. Clark. CEMP, AURIS Environmental Division, 23 St. Machar Dr. 777 N. Capitol St. N.E. Washington, D.C. Aberdeen, AB2 IRY, Scotland, United Kingdom, Tel.: 0224-272483/ Washington, D.C. 20009 272479, Fax: 0224487658. 200024201 Tel.: 202-234-9382 Tel.: 202-2894262 Fax: 202-387-79157 Centre for Environmental Management and Planning-8th Interna- tional Training Course on Environme-ntal Assessment and Management, DEVELOPMENT FORUM HABITAT NEWS June 27-July 10, 1993. 9th International Training Course on Environ- mental Assessment and Management, June 27-July 10, 1993. For more Circulations Department P.O. Box 30030 details contact: University of Aberdeen, CEMP, AURIS Environmental P 0 Box 5850 Nairobi, Kenya Division, 23 St. Machar Dr. Aberdeen, AB2 IRY, Scotland, United Grand Central Station Tel.:254-2-333930/520600 Kingdom., Tel.: 0224-272483,'272479, Fax: 0224487658. New York, New York Fax: 254-2-520724 HOUSING FINANCE INTERNATIONAL Subscriptions - . - ~ ~ ~ ~~ .~~ 4-~~~. ~ Housing Development Finance - .T nSov&ep1e fill outth&inforniado below and 5rett e t =Ri 04SIO 8"bi Corporation Ltd. Ei tg813,teeiW Wasbingtm, Ramon House ZS;~~~~d~~~i ~169, Backbay - ~1'~ Reclamation - ..,ESS~4~. . ^. . . .F ; = , aBombay 400 020, India ~~~ ,,...~~~~~~~~-.. ~~~~~~ ~~~ ~ ~ ~ ~The UlllOf Re is printed on .4.srecycled paper using wiT h~~i~ed to~~cfevelbpedcoun4y subscribe ~~~ soy-based inks. THE URR'I R6E Winter 1993