The Cities Alliance n 1 47085 Slum Upgrading Experiences of Six Cities © The Cities Alliance, 2008 1818 H Street, NW Washington, D.C. 20433, U.S.A. http://www.citiesalliance.org/index.html All rights reserved First printing, October 2008 The material in this publication is copyrighted. Requests for permission to reproduce whole or portions of it should be directed to the Cities Alliance Secretariat at the above address. The Cities Alliance encourages the active dissemination of its knowledge. Permission to disseminate will normally be granted promptly and, when reproduction is for noncommercial purposes, without asking for a fee. Cover Photo: São Paulo Photographer: Daniel Ducci Design: Patricia Hord.Graphik Design Printing: Jarboe Commercial Printing Company Slum Upgrading Experiences of Six Cities ii n Slum Upgrading Up Close: Experiences of Six Cities The Cities Alliance n iii Learning with São Paulo On behalf of the Cities Alliance and city of São Paulo, we are pleased to present Slum Upgrading Up Close: Experiences of Six Cities. The publication captures some of the key knowledge and shared learning from an international policy dialogue on the "Challenges of Slum Upgrading: Sharing São Paulo's Experience" held in São Paulo from March 10 to 14, 2008. Co-sponsored by the Cities Alliance and the city of São Paulo, the five-day event facilitated a rich exchange of ideas among high-ranking city officials from six major cities of the south--Cairo, Ekurhuleni, Lagos, Manila, Mumbai, and São Paulo--on the issues and challenges of slum upgrading in their respective cities. Slum Upgrading Up Close: Experiences of Six Cities builds upon this dialogue to showcase the different experiences of these cities, including providing detailed city profiles, housing and land policies, overall slum upgrading efforts, methodologies, initial results, and innovations. Possibly the most consistent messages emanating from the event are the indispensability of local leadership, a shared vision, clear political leadership, flexible policy making, commitment over time, and the meaningful involvement of the affected communities. With the world's urban areas set to grow by an estimated 1.8 billion people in the next 25 years--almost exclusively in the developing world--the Cities Alliance believes that city and national governments need policies and strategies to capture the positive impacts of urbanisation. The experience of São Paulo shows the benefits of progressively incorporating slums and slum dwellers into the city itself. William Cobbett Elisabete França Manager, Cities Alliance Superintendent of Social Housing, Municipality of São Paulo iv n Slum Upgrading Up Close: Experiences of Six Cities Acknowledgements The Cities Alliance would like to acknowledge the various people who made this publication and the São Paulo international dialogue possible. First we would like to thank the staff at the municipality of São Paulo administration: Orlando Almeida Filho--Municipal Housing Secretary; Elton Santa Fé Zacarias, Deputy Municipal Housing Secretary; Elisabete França--Municipal Social Housing Director; Alonso Lopez, Darcy Gebara, Felinto Cunha, Helen Mompean, Luiz Henrique Ramos, Márcia Terlizzi, Maria Cecília Nammur, Nancy Cavallete, Nelci Valério, Carlos Pellarim--Social Housing Department Coordinators; Ana Paula Bruno, Luiz Fernando Facchini, Maria Teresa Diniz, Jairo Ferreira, Ricardo Sampaio--Housing Programs Coordinators; Eliene Coelho, Ricardo Shigaki, Vanessa Padiá, Violêta Kubrusly--senior staff of Housing Department. The publication greatly benefitted from Cities Alliance's São Paulo office team: Giorgio Romano Schutte, Project Manager; Mariana Kara José, Urban Specialist; Regianne Henriette Bertolassi, Team Assistant; Tereza Herling, CA Sao Paulo Project Coordinator; and Alex Abiko, Senior Consultant. Representatives from the other cities who participated in the dialogue--Cairo, Ekurhuleni, Lagos, Manila, and Mumbai--were all instrumental in this publication and dialogue: Khalil Sha'at, Adviser to the Governorate of Cairo on Informal Areas; Godfrey Hiliza, Manager of Policy and Operational Support for Ekurhuleni Metropolitan Municipality; Bernard Williamson, Housing Department, Ekurhuleni Metropolitan Municipality; Abosede Francisco Bolaji, Lagos State Commissioner for Physical Planning and Urban Development; Suleimon Yusuf, General Manager, LASURA; Sigfrido R. Tinga, the Mayor of Taguig; Florian Steinberg, Asian Development Bank; and Urvinder Madan, Project Manager for the Mumbai Transformation Support Unit. We would like to acknowledge Chii Akporji and Carollyne Hutter of the Cities Alliance Secretariat for managing editorial work, design, and production of this publication. Billy Cobbett contributed writing and editing assistance. We would also like to thank Scholastica Nguyen and Patricia Hord of Patricia Hord Graphik Design and the staff at Jarboe Printing. The Cities Alliance n v Table of Contents International Policy Dialogue on Slum Upgrading 1 Informal and Squatter Settlements in Greater Cairo: Challenges and Policy Response 5 Ekurhuleni in Context 19 Challenge of Managing a Megacity and Policy Response: The Lagos Experience 27 Metro Manila 33 Mumbai: A City in Transformation 41 The Host: São Paulo 49 Conclusion 57 vi n Slum Upgrading Up Close: Experiences of Six Cities The Cities Alliance n 1 International Policy Dialogue on Slum Upgrading Introduction--In 1999, the United Nations Human Settlements Programme (UN-HABITAT) and the World Bank jointly launched the Cities Alliance in Berlin. They established the Cities Alliance to help developing countries grapple with two increasingly significant challenges--the growth of slums, and the long-term health of their large and small cities. The first act of the Cities Alliance was to prepare With successful slum upgrading, three processes the Cities without Slums action plan. Greatly occur simultaneously over time: enhanced by the patronage of South African President Nelson Mandela, the plan was n the slum dweller becomes the citizen, subsequently incorporated as Target 11 within the n the shack becomes the house, and Millennium Development Goals, the first time that n the slum becomes the suburb. the challenge of slums had been recognised as an international development priority. Successful slum upgrading, on a citywide and sustainable basis, has many requirements, but these Working through its members, now 26 in total, the do not involve magic. Too often, the search for a Cities Alliance has provided support to hundreds of rapid, one-size-fits-all solution obscures the practical cities all over the world. As the organisation and pragmatic decisions that need to be taken-- developed, it has obtained an increasingly clear making land available, ensuring the provision of view of what constitutes the most effective services, facilitating necessary support mechanisms, strategies to address the challenge of slums. refocusing the priorities of the public administration, and making yearly provisions in the budget. The term "Cities without Slums," inspirational to many, criticised and sometimes wilfully With its population of over 10 million, the city of misunderstood by others, is now substantially São Paulo, Brazil, faces many challenges. It is a associated with the Cities Alliance and its deeply unequal and divided city, the result of members. Slowly but surely, city and national decades of social exclusion, neglect, flawed governments are moving away from the language governance, as well as the economic inequity for of slum eradication, or displacing the problem which Brazil became infamous. These divisions are through forced evictions, and realising that most dramatically evident in the sprawling slums citywide slum upgrading is an essential part of that surround the city, threatening its stability and building a city for all. its water sources alike. Photo: São Paulo 2 n Slum Upgrading Up Close: Experiences of Six Cities However, in a little over the past decade, the city of São Paulo has become one of the leading proponents of sustained citywide slum upgrading, anywhere in the world. A vision, clear political leadership, flexible policy making, significant investments, a commitment over time, and the meaningful involvement of the affected communities have combined to produce real results. The Cities Alliance has learned some of its most Opening ceremony of São Paulo international profound lessons through working with the Prefeitura policy dialogue. da Cidade de São Paulo for some seven years. Building upon the lessons of the very successful Guarapiranga project, undertaken in partnership with the World Bank, the city of São Paulo approached the Cities Alliance for support in September 2001. In the proposal, the city signalled its intention to consolidate what it had learned, and continue to move beyond piecemeal approaches to upgrading its slums: "The real challenge is to deal with the precarious land and housing tenure situation of those who are physically and socially excluded. To face up to this challenge, a shift in paradigms is required. A project-based Billy Cobbett, Manager of the Cities Alliance, and approach grounded on the production of Mayor Gilberto Kassab of São Paulo. new housing and the extension of urban infrastructure networks, conceptualized and against Evictions (COHRE) because the Barrio Legal implemented separately by the different Programme "avoided 24,000 families being evicted." sectors of the municipal administration, Also recognized was the city's role in mediating land must be replaced by a programmatic and conflicts, as well as regularising subdivisions and integrated approach." slums, benefiting over 400,000 people. This, the Barrio Legal Programme, was an essential Subsequently, the Cities Alliance extended further part of a concerted attempt by the São Paulo city support to the city of São Paulo to expand and government to come to grips with the true nature consolidate the housing policy, especially in of the whole city, and the needs of all of its citizens. relation to its application in slum areas and informal subdivisions, through strategies of For its role in the Barrio Legal Programme, São sustainable financing and strengthening of Paulo Municipal Housing and Urban Development SEHAB's management capacity. In addition, the city Department (SEHAB) was awarded the 2004 Housing has developed a sophisticated housing planning Rights by the Centre for Housing Rights Award system and database (www.habisp.inf.br), which The Cities Alliance n 3 allows the city to ensure that its interventions are organisations, such as the World Bank, the Asian prioritised in a rational and objective manner. Development Bank, United Cities and Local Governments (UCLG), Metropolis, and UN-HABITAT. The Cities Alliance--São Paulo partnership has Representatives from the Brazilian municipalities of been expertly task managed by the World Bank, Belo Horizonte (Minas Gerais), Recife (Pernambuco), and has survived local and national elections, Rio de Janeiro (Rio de Janeiro), and Salvador (Bahia) changes in government, and new mayors. also attended this conference. Notwithstanding the support provided by the Cities Alliance and the World Bank, the bulk of the energy To study the issues up close, conference and innovation comes from the officials and participants visited slum upgrading projects in the residents of São Paulo. São Francisco, Manacias Iporanga, Vila Nilo, Paraisopolis, and Heliopolis areas of São Paulo. It was this experience that the Cities Alliance wanted They spent the whole day touring the areas, to share with other major cities, and which gave rise to attending workshops with local municipality staff the idea of an international policy dialogue on citywide and clients, and engaging with community slum upgrading. Co-organised by the municipality of residents, who shared how the upgrading activities São Paulo and the Cities Alliance secretariat, the event have impacted their lives. provided an excellent opportunity for other cities to learn from São Paulo, and for the residents of São Welcoming city delegations and other stakeholders Paulo to better understand just how much progress to the event, Mayor Gilberto Kassab of São Paulo they have already made. described the meeting as an "important opportunity for exchange of ideas on the problems they encounter on a regular basis." Alain Lesaux of "Challenges of Slum Upgrading" Event Metropolis, representing the president of the Held from March 10 to 14, 2008, the international organisation, agreed with the mayor. He elaborated policy dialogue on the "Challenges of Slum on the Bank of Cities initiative by Metropolis and Upgrading: Sharing São Paulo's Experience" UCLG, and specially thanked Elisabête França, combined exchanges of high-level municipal superintendent of São Paulo municipality. officials from around the globe with site visits. Overall, the five-day conference brought together Guang Zhe Chen, World Bank Sector Manager for representatives of the megacities Cairo, Ekurhuleni, Urban, Water, and Disaster Risk Management, Lagos, Manila, Mumbai, and São Paulo. described the Bank's extensive engagement in the Collectively, these cities are home to over 70 urban sector in Brazil and in the city of São Paulo in million people, are all faced with major challenges particular. He spoke of the need for cities to provide of slum upgrading, and have introduced innovative, affordable and reliable basic services for their citizens. systemic responses to these challenges. Billy Cobbett, Manager of the Cities Alliance, put At the conference, a group of participants designated the whole event into perspective, highlighting how "observers"--namely, La Paz, Bolivia, Santiago, Chile, important it was for cities to be able to directly and Sekondi-Takoradi, Ghana, shared their share and compare similar experiences. He said experiences on the challenges of slum upgrading. this was the first time Cities Alliance had organised They were joined by representatives of development such an event where the main resource is a city. 4 n Slum Upgrading Up Close: Experiences of Six Cities The Cities Alliance n 5 Informal and Squatter Settlements in Greater Cairo: Challenges and Policy Response The Greater Cairo Metropolitan Area (GCMA) is a vibrant megalopolis with an estimated 17 million inhabitants, making it the seventh-largest metropolitan area in the world, and one of the most densely populated (40,000 inhabitants per square kilometre). It comprises Cairo Governorate, the urban areas of Giza and Qalyobiya Governorates, and the newly established Helwan and 6th of October Governorates, with their five new towns. Over the past four decades, GCMA has experienced rapid urban growth, during which population more than tripled, at an average annual growth rate of over 2.5 percent. Now the population is growing only slightly faster that that of the nation (2.1 percent versus 2.03 percent per year). The massive rural to urban migration peaked in the 1970s and is now a minor occurrence. Greater Cairo is four times larger than Alexandria, the second-largest Egyptian city, and completely dwarfs all other major cities in the Arabic Republic of Egypt. Figure 1. Rapid Urban Growth in GCMA The map shows historical growth of the informal areas in Greater Cairo Region... with color for each ten years of growth: 1970 (yellow); 1980 (red); 1990 (blue); and 2000 (green). Photo: Cairo 6 n Slum Upgrading Up Close: Experiences of Six Cities Economy Since Cairo is the seat of national government, Since its establishment more than 1,000 years ago, many other central government ministries and Cairo has continued to represent the main historic, authorities have a direct role or indirect influence economic, and urban hub of Egypt. Being the seat on urban management issues. As a result, of government, the concentration of main services development and public investment decisions and facilities has contributed to the excessive affecting the GCMA are typically taken at both the growth of the region. Today, the GCMA is the prime central and local government levels. The GCMA is engine of economic growth in Egypt, dominating also a composite entity of several layers of local the economy even though it contains only about 24 administration that varies by place. On the one percent of the nation's population. The GCMA hand, Giza and Qalyobiya follow a five-tier local houses 55 percent of Egypt's universities, 46 percent administration system (governorate, district/Markaz, of its hospital beds, 40 percent of its pharmacies, 40 city, village and quarter/Hayy) on account of having percent of private sector employment, 60 percent of a mix of urban and rural areas, whereas Cairo--a cars, 50 percent of buses, and 33 percent of trucks. It special case of an urban-only governorate--follows is a place of unique political and cultural significance a two-tier system (governorate and quarter/Hayy). in the Arab world. The Cairo Governorate is divided into three zones: east, west, and north. The East Zone has eight quarters with a vice governor in charge, the West Governance and Urban Management Zone has 10 quarters with a vice governor in Structures charge, and the North Zone has nine quarters with The GCMA is not yet a legal entity. It is a contiguous a vice governor in charge. This comprises 27 metropolitan area that is administratively under the quarters of the Cairo Governorate. jurisdiction of five governorates (Cairo, Giza, Qalyobiya, Helwan, and 6th of October), in addition to The challenge is to coordinate among these a number of sectoral central government authorities. entities. The overlapping jurisdiction between central and local government complicates local Figure 2: Greater Cairo Metropolitan Area management and service delivery. The situation is further exacerbated by the entities in charge of land-use planning and service delivery, which use different boundaries. Main Challenges The main challenges facing the GCMA are the following: n the inefficiency of its systems, especially infrastructure, public services, and transport n severe traffic congestion n air and noise pollution The Cities Alliance n 7 n a complex set of institutional arrangements centres, and thus generate a whole range of vibrant that fragment responsibilities and constrain an enterprise and employment opportunities. efficient service delivery mechanism There are two main types of informal and squatter Because of the mismatch between housing supply settlements in Greater Cairo, as shown in the and demand, informal settlements are currently photos below. one of the defining characteristics of the urban landscape. They house the large majority of lower-income families and provide the main option for new housing. Informal Housing/Slums Egypt's informal settlements (called ashwaia't or "random" zones in Arabic) are ubiquitous in both urban and rural areas. They are illegal, or extra- legal, in that they breach one or more laws regulating planning, subdivision, construction, registration of property, or preservation of agriculture lands. According to the Ministry of Local Giza--Informal settlements on subdivided former Development (2001), as many as 1,105 squatter and agricultural land where the builder has purchased informal settlements existed in Egypt, housing a land informally from other owners. This total of 15.7 million inhabitants (23 percent of mechanism was accelerated as the pressure of Egypt's population). Almost 30 percent of such urbanisation increased and land value rose. areas and population live in Greater Cairo, at a density exceeding 2,000 persons per hectare. By some accounts, 70 percent to 80 percent of all new housing stock produced in the GCMA (without considering new towns) in the past three to four decades can be classified as informal. The origin and characteristics of urban informality can be best understood by its history. The formal housing sectors (both public and private) have been unable to provide affordable housing solutions to the majority of urban dwellers in the locations they desire. In addition, informal areas generate huge quantities of small apartments, which are either occupied by the owner-builder or Manshiet Nasser--Informal squatter settlements on are sold and rented through vibrant informal state-owned (desert) land, where the builder has only market mechanisms. These areas are well located a "hand claim" (wadaa' yed) or a leasehold (kehr). within the urban space, with good access to city 8 n Slum Upgrading Up Close: Experiences of Six Cities Figure 3: Type and Location of Squatter and Alliance and several other donors (World Bank, Informal Settlements in Greater Cairo UN-HABITAT, German Agency for Technical Cooperation or GTZ, and Japan International Cooperation Agency or JICA). The GCMA is currently preparing a long-term strategic development plan (SDP) based on a shared vision among stakeholders. The SDP seeks to define the metropolis's future role, development priorities, and a strategy for increasing its competitiveness and the volume of investment, especially by the private sector, to implement the vision and emerging capital investment plan. The SDP will also set the foundation for a commonly agreed and coherent institutional and financial framework for management and delivery of services. With its size, endowments, and comparative advantages, the GCMA has the ability to transform many of its challenges into opportunities. The emerging vision so far indicates the need of the GCMA to reposition itself regionally and globally to attract investments into high value-added sectors, such as information and communication technology, biomedical and pharmaceuticals, special light manufacturing niches, The vast majority (81 percent) of informal and services, especially tourism, business, settlements in Greater Cairo are on privately owned education, finance, and logistics. agricultural land, with informal development on desert (state) lands limited to about 10 percent. The remainder are on agricultural land nominally Housing and Slum Policies controlled by the state (figure 3). Affordable Housing Policy and Programme City's Vision The GCMA's housing policies cannot be viewed as The previous master plan's approach adopted by being in a vacuum from the National Housing the government to deconcentrate urban growth in Program (NHP). Over the past 25 years, the public Cairo has led to further spatial expansion of the sector built 36 percent (1.26 million units) of all region. Currently, eight new towns and satellites formal housing units supplied in urban areas. This surround Cairo city. In 2006, Cairo began came at a significant fiscal cost of LE 26.4 billion departing from this planning practice with ($4.9 billion), not including additional off-budget technical and financial support from the Cities subsidies related to the cost of land and off-site The Cities Alliance n 9 infrastructure. Moreover, while the Ministry of for over one-quarter (2.29 million units) of Egypt's Finance has allocated over LE 1 billion ($180 million) total urban housing stock (8.15 million units), per year towards the NHP, the true off- and on- although its share of the total urban housing stock budget NHP subsidies will reach about LE 4.4 billion dropped from 29.5 percent in 1986 to 28 percent in per year, or around 0.7 percent of GDP for this 1996. The GCMA accounted for 44.2 percent of the programme alone. Such housing subsidies reflect total urban housing stock in 1996, having grown at the government's strong commitment to providing 3.4 percent per annum during the 1986­96 period. affordable housing, but also represent a sizeable The housing stock's average growth rate per fiscal burden for the government. annum was less than the national average for the same period (3.6 percent). This was mainly due to The urban housing stock's annual growth rate slower than average growth in Cairo where the between 1986 and 1996 far exceeded that of the housing stock grew by 3.1 percent per annum. By urban population in the same period. Table 1 contrast, the urban housing stock in the Qalyubia shows the housing units built in the period 1986­ and Giza Governorates grew by 3.9 percent and 3.8 96. The Cairo Governorate alone accounted in 1996 percent, respectively. Table 1: Total Housing Units in Urban and Rural Areas in the GCMA: 1986 and 1996 Total Housing Units, 1986 Total Housing Units, 1996 stock urban of of annual stock total stock stock stock total of stock stock Country Urban Percent urban Rural otalT Urban Percent urban Rural otalT Percent growth Cairo 1,692,962 29.5% 0 1,692,962 2,287,615 28.0% 0 2,287,615 3.1% Qalyubia 262,642 4.6% 510,464 773,106 386,308 4.7% 762,276 1,148,584 3.9% Giza 639,056 11.1% 326,946 966,002 927,899 11.4% 559,692 1,487,591 3.8% Egypt 5,737,967 100.0% 5,425,994 11,163,961 8,157,135 100.0% 7,550,531 15,707,666 3.6% 10 n Slum Upgrading Up Close: Experiences of Six Cities The majority of Egypt's housing stock is constrained regime, and this is not necessarily benefiting the by high vacancy rates, rent control, and informality, poor. This greatly constrains residential mobility, as follows. locks a large proportion of units out of the market, causes lack of stock maintenance, and distorts the Almost 4.58 million urban housing units are overall housing market. unused--either vacant or closed. According to the 2006 census, the total number of unused units in The informal sector produced about 45 percent of urban areas in Egypt reached 4.58 million units, of new urban housing. During the inter-census period which 1.18 million were closed and 3.40 million were (1996­2006), the urban housing stock is vacant. Units are traditionally acquired and kept conservatively thought to have grown by an annual vacant for offspring. This can happen years, or even average of 2.8 percent or 263,838 units (9 percent decades, in advance of their need. Another higher than the annual average for the previous explanation is that the sustained rapid appreciation inter-census period 1986­96 where the average was in value over the past 25 years or so, and the lack of 241,916 units). Of these, 55.6 percent were formal and alternative investment mechanisms until quite 45.4 percent informal. Constrained by high building recently, meant that housing and real estate have and zoning standards, as well as a bureaucratic and consistently served as an inflation-proof savings and costly permitting process, many families and small investment mechanism, without need of the rental developers operate within the informal sector to meet yield. The idea of renting was even less attractive the growing needs of lower-income households. because of the imposition of rent control until 1996. Even now, the continued perception of uncertainty Much housing is poorly located, especially for about the enforceability of the new rental law makes moderate- and low-income families. Government many owners hesitant to let their unoccupied units. low-cost housing programmes are situated in the distant new towns or in remote desert areas, Poor targeting of government subsidised units, as making the livelihood struggle for inhabitants much well as the mostly unattractive locations in new more difficult, if not impossible. The formal private towns, have also further exacerbated the problem. sector, aiming mostly at the upper-income, car- owning market, also tends to prefer desert An estimated 42 percent of the housing stock in locations. Thus, housing in informal areas, which Greater Cairo is frozen under rent control. Since the are located within or on the immediate fringes of passage of Law No. 4 of 1996 that freed the rental existing cities, is in high demand. market for newly built and the then-vacant units, the rental market is showing signs of dynamism. According to conservative estimates, 50 percent to A Housing Demand Survey in Cairo found that 81 75 percent of the urban housing stock in Egypt percent of all the new units accessed in the 2001­ suffers from such market constraints. These 06 period were through rental contracts signed combined market weaknesses directly affect the under the new law (only 19 percent were for affordability of housing, the success of the newly ownership). Yet the survey also indicates that 42 initiated mortgage system, the mobility of labour percent of the total urban housing units in Greater (economic growth), and the government's ability to Cairo are still locked under the old rent control address the shelter needs of poor households. The Cities Alliance n 11 under social housing programmes. The most evident sign of the government's commitment to improving housing conditions in the country was the launch of the NHP in 2005, with the goal of providing 500,000 housing units by 2011, and with improved mechanisms of targeting, subsidy, and delivery. In 2007, the government, with support from the World Bank and USAID, began leveraging the NHP and the political momentum it created to initiate the reforms needed to build a well-functioning affordable housing system, consisting of the five action channels listed below. The policy reform framework aims to address Redevelopment area with view of mosque of the existing distortions to the current stock of housing Muhammad Ali. (vacant and rent-controlled units), improve the flow Meeting Housing Demand and or production of housing (decreasing the cost of City Targets housing supply), enable better household access to housing (improving affordability and targeting), and The annual housing need of limited-income groups reform government's role. More detail on the five in urban areas is conservatively estimated between channels follows. 165,000 and 197,000 units. The National Housing Program (NHP), with its pledge of 85,000 units per Vacant units. This aims to unlock the stock of vacant year, would thus cover almost 50 percent of the housing by promoting tax reforms and innovative estimated need. Short of the informal sector subsidy instruments that provide incentives to catering to the remaining 50 percent, this means owners of vacant units to release them to the that policy reforms need to be put in place to market, and by developing a liquid rental market. remove the distortions in the housing market that have kept a large number of units vacant and have Rental market. This intends to create a fluid rental stifled investment in the rental sector. market by strengthening rental market regulations and streamlining tenant eviction procedures, and Since the inception of the NHP in 2005, the by accelerating rent decontrol. government has introduced numerous improvements and continues to seek innovations to Affordability. This is designed to enhance help meet demand. The government has recently affordability of new housing options by increasing made significant progress in launching a housing access to housing finance through incentives for finance system, reforming the land and property lenders to further expand down-market, and registration system, formulating an improved decreasing the supply cost of housing and property tax law and a unified building code, transaction costs of accessing it. This dual implementing a new rental law, and expanding the approach to improving affordability will minimize variety of affordable housing typologies offered the size of public subsidies needed. 12 n Slum Upgrading Up Close: Experiences of Six Cities Targeting. This aims to improve the targeting of Previous Slum Upgrading Policies and public subsidies to ensure that they are provided Lessons Learned to the lowest-income households, which require Urban policies until the 1990s mainly treated them to obtain adequate shelter, and to specific informal and squatter areas as specialised market segments to assist in clearing well-defined phenomena, either focusing on particular pockets market blockages. Successful targeting along that exhibit slum characteristics, or in simply those lines will significantly reduce the need for redressing the shortfall in urban services in larger future subsidies. informal agglomerations. Donor-supported upgrading projects in Helwan, Ismaila, and Nasriya Government. This is designed to transform the remained isolated pilots and "islands of excellence." government into an enabler of the housing market that can better understand housing markets and The government initiated a National Program of react to changes, engage the private sector in the Urban Upgrading in 1992, which started to operate in delivery of housing, provide an effective regulatory phases to provide basic infrastructure and municipal framework, formulate policies for a well- services in almost all squatter and informal functioning housing market, and assist low-income settlements in the GCMA. Although the programme households to afford housing solutions. did not consider at its early stage many of the lessons Table 2: Framework for Identifying Priorities The Cities Alliance n 13 learned under donor-supported projects (i.e., the n coordinating the strategy and efforts of upgrading importance of community participation and informal areas with other development issues integrated community-physical development), it (e.g., large-scale infrastructure); provided for the first time de facto tenure security to n coordinating the replication of best practices all residents and recognition of informal settlements. of dealing with informal areas throughout the governorate; n consolidating and restructuring databases of Current Upgrading Policy Direction informal areas in the governorate. Urban upgrading is currently a high priority on the policy agenda. A citywide upgrading programme is under way, and better tools are being developed for Methodology of Dealing with Informal participatory upgrading under the GTZ Participatory Areas in Greater Cairo Development Programme. The upgrading policy Specific criteria have been adopted for selecting the aims at improving urban poverty and livelihoods, appropriate Strategy of Intervention according to generating local economic growth, and preventing type of the informal area: the growth of new squatter settlements by guiding development and growth. The GTZ supported an n urban criteria (size, history, location, urban Urban Upgrading Unit in each governorate with the type, building density, uses, potential for following objectives: horizontal extension, type of structures, condition of structures, connection with n defining the framework for improving living regional roads, accessibility to utilities); conditions in informal settlements; n population criteria (population density, n preparing a participatory strategic plan for each population ratio of increase); area and setting priority interventions in n social criteria (ratio of crime, civil society coordination with other agencies; institutions); n providing a mechanism for managing and n economic criteria (economic value, ownership); monitoring the upgrading activities in each n environmental criteria (environmental hazards area, taking into consideration community and pollution ); participation, local contributions, and roles; n political criteria (political support); n disseminating participatory development n financial criteria (foreign cooperation, foreign mechanisms for identifying problems, priorities, corporations, private sector, NGOs). and upgrading interventions by local stakeholders (government, NGOs, and private sectors); n coordinating the capacity development of local Methodology of Action administration staff working in the governorate In-situ upgrading. This covers areas not located in and districts on applying participatory precarious environmental conditions. Their development tools in dealing with informal areas; morphology structure allows the provision of basic n facilitating trust-building activities between infrastructure and services. Such areas are included local administrations and residents of informal in the National Program of Urban Upgrading or any areas, enhancing their affiliation and sense of of the above-mentioned financing programmes. The ownership of development as key partners; methodology to deal with such areas is as follows: 14 n Slum Upgrading Up Close: Experiences of Six Cities n establish a stakeholder council for each area Resettlement. Egypt has established regulations representing all parties concerned. The governing resettlement, including valuation of council's task is to participate in the design of properties, compensation, grievance, and redress the upgrading scheme and follow up on the mechanisms. implementation. n finalize urban plans and determine the required Method 1--Urban renewal and resettlement: services; Complete urban renewal of a few slum areas, n define in the layout a minimum number of access relocating residents to other urban areas, reuse of roads and determine the required services; lands for other public purposes (schools, youth n set the construction terms and criteria, and clubs, parks, and so on) with fair compensation in obtain elected councils' approvals; the form of a housing unit or cash, according to the n implementation and monitoring. market price for owners of lands, estates, and shops. Table 3: Examples of Ongoing Upgrading Projects in Greater Cairo Area District Government partners Start date End date Arab and Ezbet Al Walda: Participatory Helwan NGO: Integrated Care 2004 Ongoing urban upgrading Society (ICS) and several ministries Al Ma'sara: Participatory urban upgrading Helwan NGO: ICS 2005 Ongoing Al Salam and Al Nahda: Upgrading 100 Al Salam NGO: Heliopolis 2005 Ongoing schools Association for Services Manshiet Nasser: Al Duwaiqa Project Manshiet Abu Dhabi Fund, 1998 Ongoing Nasser Ministry of Housing Manshiet Nasser: Participatory urban Manshiet German Cooperation 2001 Ongoing upgrading Nasser (GTZ/ KfW) Zenhom: In-situ relocation Sayyeda Red Crescent Society, 1990 Ongoing Zeinab business community Rehabilitation of the Fustat Area: Old Cairo Cairo Governorate with 2006 Under Resettlement Ministries of Culture planning and Environment Environmental project in Ezbet Khair Allah Old Cairo 2008 Ongoing El-Marg: Participatory urban upgrading El Marg Several ministries 2004 Ongoing Ezzbet Hareedy: Participatory urban El Waily NGO: Future Foundation 2008 Ongoing upgrading The Cities Alliance n 15 Method 2--In-situ relocation: Accommodate public land within their jurisdiction to only those residents in temporary houses, replan and public lands that are within the zimam and two reconstruct the site, then relocate the same kilometres outside of it. As a result, they do not have residents back to new apartments. This method has the authority to decide how public land in their urban been implemented in the Zenhom and Duwaiqa expansion areas should be optimally used, and are areas. Housing units were given for free, with the unable to generate local revenues from the public private sector covering the cost as a donation. land sale/lease proceeds to finance service delivery. In response, the Cairo and Giza Governorates have Land and Spatial Development Policy in the past capitalised on a loophole in the local The GCMA was to become an agglomeration with administration and urban planning laws, which has satellite towns. To that end, a major road enabled them to prepare their own detailed plans in construction programme was prepared, including contradiction to the master plan, and use these to most notably the ring road, and significant dispose of public land and retain the proceeds to investments were made in infrastructure, services finance local service delivery. Through such an and large public housing provision in the new approach, the two governorates have released over towns. The takeoff of the first wave of new towns the past decade some 300 square kilometres of was primarily because Cairo was closed to large public land in the GCMA urban expansion areas. In industry in 1983, but new towns struggled to attract parallel, New Urban Communities Authority (NUCA) residents. Only the second wave of satellite towns released about 1,000 square kilometres of public started attracting residents, after several fragmented land in the eight new urban communities over the settlements intended for low-income groups were past 25 years. Combined, this newly available consolidated, replanned into higher-end suburban public land stock represents approximately twice as settlements with better services and land parcels for much as the contiguous urbanised and built-up private sector development, especially in New Cairo, area of the three governorates (estimated at the Sheikh Zaid area, and parts of 6th of October. The 600­700 square kilometres in 2000), which houses planning approach has somewhat succeeded in about 13 million inhabitants. reducing the arable land converted into urban uses from 600 to 200 to 300 hectares per year, but the new towns are still behind their population targets, Access to Credit for the Poor while the density of informal settlements is not A large gap still exists between incomes of the showing any sign of reduction. poor and the NHP housing supply costs. The expansion of affordable housing options requires One of the critiques of former master plans for the a two-pronged approach of removing regulatory GCMA was their top-down formulation, with little impediments that increase the cost of housing local stakeholder participation at the governorate supply; and expanding access to housing finance, level. Planners' focus on new and satellite town with a focus on mortgage finance for middle- development reduced investments that would have income households and microfinance and other otherwise gone to the existing urbanised areas. innovative approaches to address the needs of Governorates are also limited in their control over the poorest. 16 n Slum Upgrading Up Close: Experiences of Six Cities Past housing assistance programs in Egypt focused Politically and fiscally empowering local authorities on delivering a few housing products of relatively and building technical capacity. Many land high standard in remote locations, requiring high management and planning standard responsibilities subsidies, and offering little choice or adaptability are being transferred to municipalities and districts of products to beneficiaries' needs. Instead, the in which there are informal or squatter settlements. government's new policy is to identify multiple The next steps are to enable governorates and income segments, and target subsidy programmes municipalities to apply sustainable financing and regulatory reforms. Strengthening the mechanisms, such as the reuse of land sale mortgage market should address the needs of revenues for upgrading purposes. Another step is to households with high incomes. Providing increase technical capacity within local authorities to incentives for mortgage lenders to expand lending prepare remodeling plans for informal settlements down-market would address the needs of middle- and facilitate the processes of land regularisation, income households. Implementing regulatory housing improvements, and reconstruction permits. reforms (i.e., adapted planning, land-use, and building standards) to allow lower-cost housing Combining infrastructure upgrading in fringe alternatives to be produced would benefit lower- informal areas with servicing adjacent new guided middle-income families. Finally, the government development (tahzim1) areas. The GCMA is could reserve subsidy resources for the lowest- currently moving towards creating tahzim areas, income families, which would not be able to obtain neighbouring fringe informal areas need to be housing without such assistance. included in infrastructure system design and implementation. This makes economic sense, and it is usually the case that newer, fringe informal areas Looking Forward are the worst off in terms of levels of infrastructure services, especially wastewater and roads. Biggest Challenges Improving public transport and traffic in informal Looking forward, the largest challenges, which are areas. Accessibility and traffic into and within also the key principles of the GCMA's sustainable informal areas is frequently deplorable. Main urban upgrading policy, are the following. arteries are being organised to maximise the efficiency of limited space and to make the private Changing perceptions. The current misunderstandings minibus system less chaotic. about informal and squatter areas and the widely held negative perceptions are being tackled through Improving affordable housing markets in informal general media and information campaigns, and also areas and making the housing rental system more by targeting decision makers and professionals. transparent and efficient. This is part of the ongoing national affordable housing reform programme. 1. Tahzim is defined as "guiding expansion of the informal areas." It calls for layouts which allow planned, orderly urbanisation of vacant lands surrounding existing informal, aashwaia't, areas. The Cities Alliance n 17 Developing human resources in informal areas and annum over the 1996­2006 period. Although supporting small and microenterprise development. officially the peri-urban areas of Greater Cairo are Great opportunities exist to target informal urban classified as rural, over the last few decades the areas with programmes that raise the skills and job role of agriculture has diminished significantly. By marketability of youth, and that extend business 1996, agriculture only accounted for 21 percent of support credit to existing and newly forming small the employment of the active population in and microenterprises. These programmes already Greater Cairo (compared to 47 percent for rural exist. They would be more cost-effective if they Egypt), and the largest single sector was were concentrated in the large, densely settled manufacturing, with 22 percent of employment informal areas of cities. (higher even than the national urban average). Main Obstacles Greatest Innovations One of the main obstacles to addressing the One of the greatest innovations is the way that entire informal phenomenon in the GCMA is the officials are currently addressing the challenge of fast growth of periurban areas around the urban urbanisation and informal growth in the GCMA in agglomeration of the GCMA. The 2008 population an integrated manner. Ongoing upgrading schemes of the nine periurban areas in Greater Cairo is address existing challenges, while the affordable estimated at 4.21 million inhabitants, representing housing programme, the implementation of guided 24.7 percent of Greater Cairo's 17 million urban development around squatter settlements, inhabitants. The population of these areas has and the changing the legislative framework for been growing rapidly in an informal pattern over urban development in Egypt all aim to address the agricultural lands, averaging 3.27 percent per challenge in a sustainable manner in the long term. Aerial view of informal settlement in Cairo. 18 n Slum Upgrading Up Close: Experiences of Six Cities The Cities Alliance n 19 Ekurhuleni in Context Established in 2000, the Metropolitan Municipality of Ekurhuleni covers a vast area from Germiston in the west to Springs and Nigel in the east. Ekurhuleni is one of six metropolitan municipalities resulting from the restructuring of local government. The former local administrations of nine towns in the East Rand area of South Africa--Alberton, Benoni, Boksburg, Brakpan, Edenvale/Lethabong, Germiston, Kempton Park/Tembisa, Nigel, and Springs--were amalgamated into the new metropolitan municipality. Ekurhuleni has a total land area of about 2,000 square kilometres, which accommodates a total population of about 2.5 million (census, 2002). This constitutes 5.6 percent of the national population and makes up 28 percent of Gauteng Province. The population density is approximately 1,250 people per square kilometre, making Ekurhuleni one of the most densely populated areas in the province and country. By comparison, population density in Gauteng is 513 people per square kilometre, and is 38 people per square kilometre in the country. The Ekurhuleni economy is larger and more diverse than that of many of the smaller countries in Africa, including all the countries in southern Africa. It accounts for nearly a quarter of the Gauteng economy, which in turn contributes over a third of the national GDP. Ekurhuleni contributes about 7 percent to the country's spending power and about 7.4 percent to the nation's production. Photo: Ekurhuleni 20 n Slum Upgrading Up Close: Experiences of Six Cities Manufacturing in Ekurhuleni accounts for about 20 Ekurhuleni has a network of roads, airports, rail percent of the GDP of Gauteng. In Ekurhuleni itself, lines, telephones, and telecommunications that manufacturing accounts for some 28 percent of rivals that of Europe and America--a first-rate total production. Because it has the largest infrastructure supporting a well-established concentration of industry in the whole of South industrial and commercial complex. Many regard Africa (and in Africa), Ekurhuleni is often referred to Ekurhuleni as the transportation hub of the country. as "Africa's Workshop." Production of structural The municipality is home to the OR Tambo steel and fabricated metal products serve as inputs International Airport (ORTIA), the busiest airport in into other areas' economies. Annual economic Africa--serving the entire continent and linking to growth in Ekurhuleni increased from 1998 to 2003, major cities throughout the world. and has been almost double the rate of the national manufacturing growth rate. Around 52 percent of South Africa's largest railway hub is in Ekurhuleni population is economically active, compared to 38 (Germiston), connecting the city to all the major percent nationally. Household income and per- population centres and ports in the Southern capita income exceed the national average by 10 African region. A number of South Africa's modern percent and 33 percent, respectively. Nationally, the freeways and expressways link Ekurhuleni to other percentage of people living in poverty is 49 percent, cities and provinces. The Maputo corridor compared to 29 percent in Ekurhuleni. development, South Africa's most advanced spatial development initiative, connects Ekurhuleni with Mozambique's capital. Direct rail, road, and air networks link Ekurhuleni to Durban, South Africa's largest and busiest port. During the period 1995 to 2005, the Gauteng government made strategic investments in upgrading some of the ageing road networks tied to the industrial hub to promote the movement of goods and services. The Growth and Development Strategy 2025 (GDS 2025) This strategy follows a landscape approach, describing three broad development landscapes: n physical development, which encompasses such aspects as the current settlement patterns and land uses, transportation links, and infrastructural services, as well as the physical environment; n economic development, which encompasses economically productive activity and aspects related to the sustainable development of the area; and Informal area in Ekurhuleni. The Cities Alliance n 21 n social development, which encompasses the development constraints exist within this area, such human element, including the socioeconomic as slimes dams and mine dumps, shallow profile of the area and the provision of undermining, dolomite, radon emissions, and so on. housing, basic infrastructure, and other community services. During the last decade, a number of large informal settlements have also developed in the mining belt, in proximity to the central business districts and Settlement Pattern and Land Use older industrial areas. Many of these settlements In terms of land use, Ekurhuleni comprises three do not have even rudimentary services, and large main components: parts of them are situated on land that is unsuitable for housing because of mining-related development n a central, east-west orientated mining and constraints. The development standards in the industrial activity belt which served as the core previously disadvantaged township areas on the around which the nine towns were established; urban periphery differ considerably from the n residential developments surrounding the previously white areas closer to the urban core. above-mentioned activity belt; and n rural and agricultural areas to the northeast and, Ekurhuleni is unique in that it lacks a clear identity in the central portion, to the south of the Metro. and primary core area. All the other metropolitan areas in South Africa developed around a primary Four major concentrations of historically disadvantaged core area or central business districts. Currently, communities exist in the area. All of these communities Ekurhuleni has a multimodal structure, composed of are situated on the outskirts of the main urban area the nine central business districts of the formal local and are in the areas furthest removed from where the authorities, as well as other decentralised nodes. bulk of job opportunities are situated. Together they With the establishment of the Ekurhuleni accommodate approximately 65 percent of the total Metropolitan Municipality, it is now necessary to population of the metropolitan area. create a distinctive identity for the metropolitan area. The existing settlement pattern represents the typical apartheid planning structure, where the residential areas are situated on the periphery of the urban area, followed by a vacant buffer area, followed by industrial development that was intended to provide job opportunities, and which is then linked to the main economy via the rail and road networks. The mining belt was historically the core around which the various towns and settlements were established. The metro area has an evenly distributed, multinodal structure with no single, dominant node of activity. Because of past mining activities, large parts of the mining belt are vacant. Numerous mining-related Informal settlement in Ekurhuleni. 22 n Slum Upgrading Up Close: Experiences of Six Cities Major Environmental Constraints environmentally sensitive, despite the negative The following major environmental constraints impacts created by the urbanised surroundings. occur within Ekurhuleni. Inconsistent mandates at different spheres of government exacerbate these conflicts. The Dolomite Areas Dolomitic conditions occur in the southern parts of Economic Development the metropolitan area, in and around Katorus, as Economic output in Ekurhuleni in 2002 amounted well as in the northern parts around the R21 to about R44.5 billion, contributing about 7.4 freeway and eastwards of it. Apart from the doline percent of total production and about 6.9 percent to and sinkhole formation risks that occur in bad national employment in South Africa. The dolomitic zones, the groundwater pollution metropolitan area's gross value-added per-capita potential in dolomitic areas is also high. output was R17,783, which exceeds the national average of R13,140. The biggest contributor to the local economy is the manufacturing sector Mining-related Environmental Problems (contributing 27.5 percent of gross value-added Mining activities in the East Rand created a host of output). Industry in Ekurhuleni is concentrated in environmental problems and constraints within the metals, chemicals, machinery and equipment, Ekurhuleni, including shallow undermined land and plastic products subsectors, reflecting its subject to possible subsidence, numerous mine origins in the East Rand as a support base for the dumps and slimes dams causing visual and air local mining operations. Other important sectors in pollution, radon emissions, unrehabilitated mining the Ekurhuleni economy are finance, commercial land and shaft areas, and other concerns. services, trade, and transport. Informal Settlements Many informal settlements were established in Ekurhuleni during the last decade. These settlements are subject to a range of environmental problems associated with a lack of basic services, such as unhygienic conditions, fire risks, smoke pollution, and health problems. Conflict between Economic Development and Environmentally Sensitive Areas Some areas face strongly competing land-use demands because of their location on major arterial routes, which is ideal for corridor development. Yet they also have high potential for agriculture, or are Gold mining is a major industry in Ekurhuleni. The Cities Alliance n 23 Informal housing solutions. House built with government subsidy. Over the period 1998 to 2003, Ekurhuleni's formal Although the Ekurhuleni community has a fairly economy grew by an estimated average of 3 high literacy rate (84 percent), technical skills levels percent per annum. This is in line with the national are low and not a good fit for the skills demands of average, and has consequences for the prosperity the local economy. The prevalent lack of skills and of the area, pointing to a possible increase in the low local economic growth rate has entrenched poverty and unemployment since population the cycle of poverty, deprivation, and violence. growth is higher than economic growth. Ekurhuleni Malnutrition, especially amongst children, remains increased its exports from 24 percent of gross a severe challenge, while a high rate of HIV/AIDS as value-added output in 1996 to 27 percent in 2002. well as poverty-related diseases, such as tuberculosis, is experienced, especially in the peripheral townships and informal settlements. Socioeconomic Profile Nearly a third of the approximately 2.5 million people living in Ekurhuleni live in poverty. Provision of Housing and Basic Services Currently, unemployment is estimated at 40 Approximately 112 informal settlements in percent, which is unacceptably high. Many people Ekurhuleni exist, comprising approximately 135,000 are forced to resort to desperate measures to informal units (shacks) in total. The current backlog merely survive. The majority of the people below (units without access to the four basic services) in the poverty line live on the urban periphery, far the metro area is estimated at 170,000. These from mainstream job opportunities and urban numbers do not take into account the growth in amenities, and in informal settlements without demand over the next 20 years. Influx into the basic services. In total, approximately 98 percent of urban areas will continue into the future. Although all the people in Ekurhuleni who live below the all the informal settlements are provided with poverty line are Africans. emergency water and are in the process of having 24 n Slum Upgrading Up Close: Experiences of Six Cities sanitation facilities installed, they do not have permanent and adequate access to the four basic services: water, sanitation, electricity, and social services. Most of these settlements are also situated on land not suitable for housing purposes and may even be dangerous, such as low-lying areas within the floodlines of rivers, land underlain by high-risk dolomitic formations, electricity and pipeline rights-of-way, and land undermined at shallow depths. The availability of suitable land for housing close to the urban core areas is a problem and will necessitate rethinking housing typologies and Hostel complex. densities. Although a large number of subsidy- linked serviced stands (about 100,000) and houses Upgrading for Growth (about 85,000) have been provided in Ekurhuleni Ekurhuleni has worked in partnership with the Cities during the last decade, the rate of housing delivery Alliance over 18 months in 2007­08 to develop a falls far short of the demand. The challenge is not new programme, Upgrading for Growth (U4G), to only the number of houses to be provided, but uplift informal settlements, seeking explicitly to equally the creation of sustainable human incorporate the development of community settlements and communities. Housing should, socioeconomic capital as part of a housing plan. therefore, be provided in the right locations, The U4G approach is more than a "bolt-on" to the provide more choices in terms of typologies and municipal housing department's usual project plans tenure, give access to economic opportunities, based on land, infrastructure, and shelter. It places furnish the necessary social amenities, and community needs for shelter, work opportunities, ultimately lead to improved quality of life. and a strong social fabric as three equal components of creating sustainable human settlements. The From Housing Units to Sustainable word "equal" is significant--all three aspects are Settlements interrelated, and will require equal effort by Ekurhuleni and its development partners. Although the municipality has an enviable record in delivering housing for the poor, past programmes U4G incorporates a sustainable livelihoods have been driven by the need to build houses at approach, with main elements including: scale, resulting in many monofunctional, nonsustainable neighbourhoods. n commitment to in-situ development as a first priority; n in-depth community surveys as the source of in-depth information on community circumstances, and subsequent tailoring of development interventions; The Cities Alliance n 25 n close consultation with households, and This is a real challenge for the municipality--it has to extension of choice over house types and overcome institutionalised departmentalism to secure levels of services to ensure affordability; the concerted effort that is required to initiate and n strengthening social capital by the promotion of sustain the new development process. U4G proposes clubs and societies, such as youth and women's a multidepartmental steering group, accountable to groups, or social and recreational groups; the municipality's political executive committee. Not n access to programmes on basic education, only will the group direct the programme, but also skills training, employment strategies, and how formalise departmental commitment and finance to to access resources for learning; ensure its effective implementation. n use of sustainable urban design--maximising use of layout and topography and orientation U4G's future success will depend on: of properties, unit mix, size, and distribution; n passive thermal design of individual units, as n continued political will and championship; well as insulation and ceiling installation; n continued financial support and budget n encouraging businesses in and around predictability; residential areas; n valid partnerships and alliances with key n facilitating the provision of financial and stakeholders, including multidepartmental technical services to businesses at their various cooperation; stages of development; n sufficient capacity within the municipality and n supporting public works programmes and the local service providers to conduct the use of local labour; specialised tasks of the programme; n the use of community development workers to n robust but flexible institutional arrangements motivate and organise community development to manage a wide range of projects. initiatives and information gathering. Ekurhuleni already has taken the first step to U4G, a structured programme, has the overall success in commissioning the U4G, and target of incrementally upgrading all informal challenging fixed sectoral and departmental settlements in the municipality by 2014. Three pilot attitudes to integrated housing programmes. projects have already been identified as its inception phase. Coordination and Partnership Ekurhuleni will implement U4G by ensuring much closer interdepartmental and intergovernmental coordination, and facilitating increased cooperation between the municipality, organised civil society, community-based organisations, the private sector, and NGOs. Local economic development activity. 26 n Slum Upgrading Up Close: Experiences of Six Cities The Cities Alliance n 27 Challenge of Managing a Megacity and Policy Response: The Lagos Experience The Lagos megacity covers an area of 3,577 square kilometres, representing 0.4 percent of Nigeria's geographic space. Total population is currently estimated at 16.86 million people. It is projected to reach 24.5 million by 2015, thereby making it the third-largest city on earth. Population density is high, averaging 4,713 people per square kilometre, but reaching 12,000 people per square kilometre in that part of the city referred to as the metropolitan area. The megacity consists of 2,600 communities distributed in 20 local government areas and 37 local government development areas. The population growth rate is between 6 percent and 8 percent, compared to Jakarta's 3.1 percent, Tokyo's 0.3 percent, and Shanghai's 0.1 percent. The annual increase in population of 600,000-- which is mainly from in-migration rather than from natural increase--is 10 times that of New York City and Los Angeles. Lagos's population is larger than that of 37 individual African countries put together. All Nigeria's ethnic nationalities and peoples of the Economic Community of West African States (ECOWAS), flock to Lagos because of the opportunities it offers. Lagos is also one of the seven cities in the New Partnership for Africa's Development (NEPAD). Photo: Lagos 28 n Slum Upgrading Up Close: Experiences of Six Cities Economy Lagos is the economic and social nerve centre of Nigeria and the West African subregion, as indicated by the following. Lagos: n is the headquarters of transnational corporations and national conglomerates; n has the largest stock exchange in West Africa, with over 200 financial institutions; n has 22 industrial estates (composed of 2,000 industries, or 65 percent of the country's total), and 60 percent of the nation's value-added manufacturing; n accounts for 32 percent of national GDP (2004) Socialising in Lagos. and 65 percent of Nigeria's value-added tax; n employs 65 percent of the working population commissioners with ministerial portfolios. The in the informal sector; legislature is composed of 40 democratically n is the hub of national aviation activities, with elected members representing the constituencies in 83 percent of international and 47 percent of the state. The judiciary consists of appointed domestic flights; judges and other judicial and quasi judicial officers n has three lighter terminals and three of under the high courts of the state. Nigeria's eight major seaports (generating 50 percent of the nation's ports revenue); The state is divided into development areas. Each n is the telecommunication and media hub of LGC has a democratically elected chairman and a Nigeria; number of councillors representing the political or n provides 75,000 low-capacity buses; electoral wards in the respective LGCs. The LGC n has a vehicular density of 224 vehicles per development areas have appointed executive kilometre, compared to the country average of secretaries and supervisory councillors. 15 vehicles per kilometre; n generates about 10,000 metric tonnes of waste An important governance feature of Lagos is that it a day. is a quasi city-state because of its limited land area and urbanisation characteristics. Unlike most large City Governance metropolitan cities of the world, Lagos does not benefit from a municipal administration entirely The megacity is governed on two levels: the state devoted to responding to the needs of the city. As a government and local government councils (LGCs). consequence, policy and institutional reforms The state government has three arms, made up of necessary to improve the economic infrastructure the executive, legislative, and judiciary. The and social services are implemented at the state executive arm consists of a democratically elected government level, with little participation by the governor (and deputy governor), and appointed respective LGCs. The Cities Alliance n 29 Main Challenges Informal Housing The main challenges confronting Lagos include the Lagos' informal housing tends to occupy marginal following: lands (such as floodable areas or old waste dumps); be along railway tracks; lacks infrastructure and n uncontrolled urban sprawl arising out of facilities; has makeshift, substandard structures; be inadequate urban planning and resulting in overcrowded; has inadequate potable water; lacks uneconomic and incompatible land uses, and proper sanitary facilities; and has an absence of title encroachment into marginal lands and and insecurity of tenure. sensitive aquatic environments; n inadequate and overburdened infrastructure arising from uncontrolled urban sprawl and poor The City's Vision maintenance, resulting in traffic jams, inadequate Lagos seeks to be an organised, liveable, business- waste management, inefficient transportation, and tourism-friendly, and sustainable city. This regular power outages, congestion, pollution, involves the following: and economic dislocations; n inadequate housing arising from the wide gap n preparation of physical development plans at between demand and supply, resulting in denied the neighbourhood scale to promote orderly access to housing and rapid growth of slums; development; n social and economic exclusions arising from n environmental improvements; not engaging a broad spectrum of people in n strengthened implementation and enforcement; the decision-making process, as well as many n restructuring of legal and institutional people lacking access to finance; frameworks for city management, including n a large informal sector arising from in- n inclusive governance, migration of unskilled and semi-literate young n empowerment of the youth through skills persons, resulting in pervasive street trading acquisition, and roadside occupations such as artisans; n Lagos State Economic Empowerment and n high unemployment among young people, Development Strategy (LASEEDS), arising from not engaging those who are n land tenure and land ownership reforms employable and skilled, as well as unskilled or semiskilled, resulting in poverty, frustration, aggression, criminal tendencies, Housing and Slum Policies and urban violence; n inadequate funding to finance urban development and management projects arising Affordable Housing Policy from the poor revenue base and resulting in The recent introduction of housing mortgage inadequate infrastructure, facilities, and services. financing is still in its infancy, but the government is determined to vigorously pursue it in order to make it accessible to members of the public. The initial beneficiaries are the civil servants who are already captured on the database, which makes 30 n Slum Upgrading Up Close: Experiences of Six Cities administration easier. The government negotiated Current Upgrading Policy Direction with a consortium of banks to provide mortgages at The new policy direction adopts a citywide a 10 percent interest rate. approach. The first is the $200 million credit International Development Association (IDA) assisted intervention. This seven-year upgrading project commenced in October 2006, and ends in March 2013, involving nine top of the list (out of 42) slum communities identified in 1983. It covers 750 hectares of largely swampy terrain, 1.1 million inhabitants, and about 158,000 households, with an average monthly household income of $170. These efforts are gradually being replicated in the other slum communities. As much as possible, the approach is not to displace people. The intervention involves upgrading existing Laundry day in an informal settlement in Lagos. dilapidated roads or footpaths, providing public toilets or bathrooms, sinking boreholes to provide Previous Slum Upgrading Policies water, building new schools and upgrading existing ones, building health facilities, In the past, Lagos pursued these actions towards empowering youth through skill acquisition, and slum upgrading. building capacity. For example, in the Oluwole Central Business District, 39 displaced families n The government took inventory and were provided better alternative accommodation characterised slums. The first was carried out and also received financial assistance to move. in 1983, when 42 blighted areas covering 1,622 They are also equity holders in the redevelopment hectares were identified. of their former abodes. n An agency named the Lagos State Urban Renewal Board, later Authority, was specifically created to deal with the issue of slum upgrades. Land Policy n The agency embarked on the preparation of The new land policy is directed towards improving renewal schemes without adequate community institutional efficacy in land documentation and input--Olaleye-Iponri Urban Renewal Project creating an up-to-date registry of lands in Lagos. (collaboration with UN-HABITAT; Badia- The essential elements are as follows: Olojowon Pilot Project. n The government, supported by international n land tenure and ownership reforms; donor agencies, provided funding. n 30-day consent period (down from 365 days; n The results were limited implementation, n electronic land registry with Internet access; success, and sustainability ratings. n regularization of illegal occupation of government land; Lessons learned--government officials should not n grant of certificate of occupancy in 90 days assume knowledge of a community's needs, and (down from 365 days); consultations with the community at every level of n preparation of Action Area Plans; the improvement project are essential. The Cities Alliance n 31 n creation of model cities as a strategy for city n finding the funds to finance improvements and upgrading; management of the city in all its ramifications; n creation of regional development agencies; n convincing financial institutions to provide n development of reclaimed land--progressive mortgage financing at single-digit interest rates. redevelopment. Greatest Innovations Looking Forward Lagos's greatest innovations include the following: n introduction of the bus rapid transit system; Biggest Challenges n enhancement of internally generated revenue; The biggest challenges Lagos faces in term of dealing n public-private sector partnership for urban with the informal sector include the following: infrastructure and facilities development. n upgrading the existing infrastructure, expanding into unserved areas, and maintaining it over the long haul; n ensuring uninterrupted power supply by overhauling the generation, transmission, and distribution system; n improving the environment and sanitation; n providing affordable housing through mass delivery of housing units, especially for the people at the lower rungs of the income ladder. Affordability is a key factor. Most of the people engaged in informal sector activities cannot afford to own their own homes. They are largely renters. n improving safety and security. Main Obstacles The main obstacles to the above challenges are the following: n reversing negative behavioural patterns, of people, such as disinterestedness in the sustenance of the city; View of Lagos marina. 32 n Slum Upgrading Up Close: Experiences of Six Cities The Cities Alliance n 33 Metro Manila Metro Manila, or the National Capital Region (NCR), has recently become a megacity, composed of 17 local government units (LGUs) consisting of 16 cities and one municipality. In 2007, its total population was 11.5 million, with an average household size of 4.62 persons. With a land area of only 619.5 square kilometres, the NCR has a population density of 18,650 people per square kilometre. About 90 percent of the country's private business, performs planning, monitoring, and coordinating cultural, educational, and medical establishments functions, and exercises regulatory and supervisory are located in the greater Manila area. In 2006, the authority over the delivery of metrowide services, metro area accounted for a 32.5 percent share of such as transport and traffic management, solid the country's total gross domestic product, waste disposal and management, flood control, registering P2,244,705.1 The NCR also had the and sewerage system management. highest gross regional domestic product per capita in 2006, at P35,742, or almost double the amount of The Metro Manila Council serves as the governing the second-highest region. board, and is composed of the mayors of the 17 cities and municipalities, and some national Despite this, Manila exhibited the highest poverty government agencies, including the Housing and threshold in 2000, 2003, and 2006, with an annual Urban Development Coordinating Council. per-capita poverty threshold of P15,722, P16,737, and P20,566,respectively. The number of urban poor families in Manila in 2003 and 2006 was Main Challenges placed at 110,864 and 167,316, respectively. As of Manila faces the following challenges. April 2008, the metropolitan area had a high unemployment rate, reaching 13.8 percent. Rapid population increase. The annual population growth rate is estimated at 2.36 percent, while the urbanisation rate (i.e., the proportion of urban areas Governance to total land area) is 52 percent. Manila grew by 1.62 The Metropolitan Manila Development Authority million people in seven years, or an average annual (MMDA), a government agency under the direct population growth rate of 2.11 percent because of supervision of the president of the Philippines, new births as well as urban migration. administers affairs in metropolitan Manila. It 1. Exchange rate: 1 US dollar = 47.7 Philippines pesos. Photo: Manila 34 n Slum Upgrading Up Close: Experiences of Six Cities Congestion and proliferation of informal settler Informal Housing/Slums colonies. In 2006, the estimated housing backlog in Metro Manila has pockets of informal settlements Metro Manila was 824,724 units, of which around where dwellings are often constructed of inferior 36 percent, or 300,000 households, require materials, and access to fire and emergency rescue relocation because they are occupying dangerous services is poor. In general, these areas are areas or areas earmarked for government environmentally poor. infrastructure projects. The total housing need to eradicate slums in Metro Manila by 2021 is about 1 As of September 2007, there were about 545,000 million dwelling units, with a projected 15-year families of informal settler all over Manila, with 40 investment requirement of P454,786 billion. percent (about 219,000 families) occupying privately owned properties, and 20 percent (almost Lack of access to basic services. Aside from 108,000 families) residing in dangerous areas. The housing, the families who live in informal sprawl of informal settlements comes from the settlements are confronted daily with the other migration of people from rural areas, the lack of dimensions of urban poverty, such as a lack of affordable housing, and the spiralling cost of land. access to basic services (electricity, potable water, sewerage/septic tank), exposing them to disease, crime, and natural disasters. Manila's Vision Metropolitan Manila seeks to become a humane, Others. Other challenges being faced by Metro world-class metropolis, renowned for its liveability, Manila are inadequate garbage collection and economic vitality, and socio-cultural exuberance. It management, heavy traffic, and flooding from aims to offer a liveable and workable physical clogged rivers, creeks, and canals caused by about environment for all. In terms of business, Manila is 17,000 families of informal settlers whose shanties striving to evolve into a major business and are built on waterways. transaction hub for the Asia-Pacific region. The vision is for Manila to influence socioeconomic opportunities in areas beyond its political and administrative boundaries. Housing and Slum Policies Affordable Housing Policy and Programmes The Philippine government supports the Millennium Development Goal target to significantly improve the lives of at least 100 million slum dwellers by 2020. The Housing and Urban Development Coordinating Council, (HUDCC) a government Aerial view of Manila. The Cities Alliance n 35 agency, is addressing the housing problem through the site, and construct or improve housing the following policies and programs. units. The loans are payable within 30 years, with a 6 percent interest rate. The asset reform program seeks to redistribute resource endowments by awarding a tenurial Increasing socialised housing stock through the instrument to target beneficiaries that provides them Urban Development and Housing Act (Republic Act ownership or security of tenure. This programme is 7279), which requires developers of subdivisions to being implemented through the following: set aside 20 percent of the area, or the cost, for socialised housing. Compliance to this housing n The Resettlement Program. To ensure that requirement may be in the form of construction of informal settlers are relocated in a just and socialised housing units, joint ventures with the humane manner and that those who are local government or housing agencies or relocated are given the type of assistance they development of resettlement sites, or upgrading or need, a beneficiary-led approach was adopted. improving housing units within the sites. This includes implementing in-city/in-town relocation to minimize dislocation; providing Reduction of interest rates for socialised and basic services, such as schools, potable water, low-cost housing and extension of the repayment and electricity, as well as livelihood period to make housing more affordable to the opportunities for resettled families; and low-income workers who belong to the formal institutionalising Local Inter-Agency sector but are not served by the banking Committees (LIACs), composed of the institutions. The interest rates of loans of the Home concerned local chief executives, NGOs, Development Mutual Fund were lowered from 9 people's organisations, and community percent to 6 percent for the socialised housing associations, to formulate the implementing package, and from 10 percent to 7 percent for rules and regulations (IRR) that will govern the low-cost housing, while the repayment period was relocation activities. extended to 30 years. Contribution rates have also The programme is a multistakeholder been reduced. The loan-to-collateral ratio was partnership among the national government, the likewise adjusted, allowing members to borrow sending and receiving local governments, from the fund with zero to minimal equity infusion. NGOs, such as Gawad Kalinga and UN-HABITAT, and people's organizations. Foreign-assisted projects aimed at providing n Regularisation of tenure through issuance of secure tenure and building capacities of presidential proclamations. These declare idle stakeholders were implemented, such as the government lands occupied by informal ADB-funded Development of Poor Urban settlers as socialised housing sites for Communities Sector Project, and the Cities Alliance disposition to qualified beneficiaries. grant for IMPACT. While these projects are not n Provision of secure tenure through the focused on solving the housing problems in Metro Community Mortgage Program. This Manila, they have led to adopting the following programme gives community associations in policies or programmes, which are scalable and informal settlements access to financing to can later become applicable in Metro Manila. acquire the private land they occupy, develop 36 n Slum Upgrading Up Close: Experiences of Six Cities n Approval of a housing microfinance product programmes for poor people and those belonging manual allowing the use of rights-based to the formal sector who have low incomes to instruments for obtaining loans. The manual address the housing gap. However, existing also allows the use of rights-based government resources are inadequate to deal with instruments, such as interim land titles, as this need. Because of this situation, the government collateral in banking loan transactions. is exploring financing facilities from external n Paved the way for the banking institution to sources that could be used for housing. open up housing finance directly to the homeowners associations. To serve the beneficiaries, the government needs to ensure that affordable interest rates are maintained. Innovative tenure arrangements were adopted and developed: public rental, lease/purchase and shared ownership, rent-to-own, usufruct, and long-term lease. Streamlining processes in securing necessary permits, licences, certifications, and clearances for residential and subdivision development by creating a one-stop shop processing centre and imposing deadlines on concerned government agencies for processing of applications. Meeting Housing Demand Demand for housing continues to grow as the Pasig River. Philippine population increases rapidly, at an annual rate of 2.36 percent. For the period 2005 to 2010, the Lessons Learned from Previous Slum projected housing demand for the entire country is Upgrading Policies 3.75 million units, of which about 30 percent, or 1.1 Among the key lessons learned in the million units, belong to the poor sector and are implementation of housing programmes for the targeted to be directly served by the government. poor are the following: For Metro Manila, the demand for housing is projected to be 1.07 million units from 2006­21. n Achieving secure tenure through freehold imposes high transaction costs on the urban poor. From 2005 to 2007, the government provided shelter n Housing microfinance offers the possibility of and secure tenure for about 368,000 families sustainable, unleveraged finance for the poor. belonging to the lowest income levels (poorest of n For resettlement programmes to be effective, a the poor), as well as low-income workers. For multistakeholder approach is necessary and 2008­10, the government's target is to provide should not be supply driven. The national shelter security units to 265,207 households. government alone will not be able to solve the Based on this, the government needs to expand socialised housing issue. The Cities Alliance n 37 n Despite the promise of land proclamations and n Traditional lending methodologies and policies the abundance of public land for socialised will have to give way to more innovative and housing, many have limited financial, technical, flexible practices, including those that use and managerial resources to develop and rights-based instruments and suitable manage sustainable housing projects for the microfinance programmes. poor. Likewise, most local government units n Few microfinance institutions are formally are averse to borrowing for socialised housing engaged in housing microfinance and will not and to using their internal revenue allotment engage in on-lending for home improvements (IRA) as collateral for development. and housing loans in large scale unless they n Capacity building is generally needed for all are given incentives to build their capacity and stakeholders, including national government develop and manage these financial products. agencies, local governments, and community associations to ensure continuity and replication of viable housing projects. Informal and formal housing in Manila. 38 n Slum Upgrading Up Close: Experiences of Six Cities Access to Credit for the Poor For Metro Manila, the government is now in the The Philippine government is aiming to provide process of working out another facility with the housing services to the bottom 30 percent of the Asian Development Bank called the Metro Manila population. Various programmes catering directly Urban Services for the Poor Investment Project. The to the informal settlers are being undertaken, such project seeks to improve the quality of life of the as the Community Mortgage Program and the urban poor residents in Metro Manila by providing Resettlement Program. For areas outside of Metro financial assistance to the informal settler families Manila, the Development of Poor Urban for site development, housing development and Communities Sector Project provides a facility to home improvement, microenterprise development, local governments and community associations for and capacity building. site development, housing construction or improvement, and even livelihood. Aerial view of Manila. The Cities Alliance n 39 Looking Forward Greatest Innovations The following are some of Manila's greatest innovations in dealing with housing issues: Biggest Challenges Over the years, Manila has been unable to cope n adoption of beneficiary-led resettlement with its rapid population growth, making it one of programmes; the most densely populated megacities in the n multisectoral partnership in the delivery of world. Because of its rapid and uncontrolled housing services; urbanisation, the informal settlements/slums have n localization of the Community Mortgage Program; proliferated. These situations, coupled with n development of alternative modalities through insufficient resources, contribute to the partnerships with NGOs, homeowners deterioration of the environment and the other associations, and private developers; problems related to urbanisation, such as garbage n encouraging the widespread application of management, crime, traffic, and poor health. tried and tested microfinance principles in housing the poor; n enabling the use of rights-based instruments Main Obstacles for distributing security of tenure and Certain constraints impede efforts to address the facilitating access to affordable and sustainable growing housing and urban development problem housing finance; in the Philippines, particularly Metro Manila: n strengthening the capacity of shelter agencies to support the scaling-up of sustainable n difficulties in accessing land to upgrade slums pro-poor housing and urban redevelopment and for urban renewal; programmes in Metro Manila; n complex and inefficient land delivery mechanisms; n accelerating the proclamation of land for n reliance on subsidies and ineffective cost recovery; socialised housing and the conveyance of n weak capacity of sector institutions; nationally owned public land to Manila's local n inadequate participation by the private government units committed to housing the sector; and poor and informal settlers; n lack of clear policies and guidelines for n strengthening the Manila local government units' controlling the growth of slums. capacity to develop and implement viable urban upgrading and renewal programmes, providing access to affordable development funds, and encouraging private sector participation. 40 n Slum Upgrading Up Close: Experiences of Six Cities The Cities Alliance n 41 Mumbai: A City in Transformation According to the 2001 census, the population of the city of Greater Mumbai was 11.91 million, spread over 437 square kilometres. The population of the city of Mumbai has increased from 0.92 million in 1901 to 3.32 million in 2001, while the population of the suburban district has reached 8.59 million, starting from almost nothing a century before (see table 1). The population density is as high as 48,215 people per square kilometre in Mumbai, and 16,082 per square kilometre in suburban Mumbai (census 2001) with an average city density of 27,348 people per square kilometre. Peak density in certain areas, such as the Dharavi slums, reaches over a million people per square kilometre. The population of Mumbai is marked by its social Table 1: Population Growth in Mumbai heterogeneity, cutting across racial, religious, Metropolitan Region regional, and linguistic lines. Nearly 50 percent of Population Trends in Greater Mumbai households have Marathi as their mother tongue, 14.00 Island City followed by Gujrati (15 percent), Hindi (9 Suburbs percent), and Urdu (6 percent). The average 12.00 Total number of earners per household was 1.7. 10.00 Mumbai has a literacy rate of 87.1 percent. )nM(noitalupoP 8.00 6.00 4.00 2.00 0 1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 Year Source: Mumbai Metropolitan Region Development Authority, 1994, and Census of India, 2001 Photo: Mumbai 42 n Slum Upgrading Up Close: Experiences of Six Cities Economy The main economic drivers of Mumbai's economy Greater Mumbai's per capita gross domestic are now: product (GDP) has been Rsi 46,010 ($1,150), which is significantly higher than that of Maharashtra or n financial services, banking, and insurance; India. Growth of GDP of Mumbai, Maharashtra, and n information technology and information India since 1993 is presented in table 2. technology enabled services; n communications; Table 2: Per Capita GDP of Greater Mumbai, n media and entertainment; and Maharashtra, and India n retail. 50000 Mumbai 45000 Maharashtra India Governance and Urban Management 40000 The Municipal Corporation of Greater Mumbai 35000 (MCGM), which enjoys significant autonomy, is the 30000 most affluent and relatively most efficient local sepuR25000 body in the country. Its services range from running 20000 public transport to providing electricity. 15000 10000 MCGM is responsible for the city's master plan, and for enforcing development control regulations. It is 5000 not directly involved in public housing or slum 0 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 improvement. However, in a significant move Year towards decentralisation, the 74th Amendment to Note: At 1993-94 constant prices adopt the constitution of India, carried out in 1992, has empowered local self-governments to Greater Mumbai's growth rate has been more undertake such functions as urban planning, slum volatile compared to the Indian growth rate, i.e., it improvement, and poverty alleviation, along with was 5 percent in 2001 and climbed to 13 percent in other responsibilities. 2004. Given that Mumbai's GDP is 27 percent of Maharashtra's, volatility of Mumbai's growth The Mumbai Metropolitan Region Development greatly affects Maharashtra. Authority (MMRDA) is responsible for regional planning and co-coordinating and supervising Mumbai experienced substantial structural changes development efforts in the Mumbai Metropolitan in its economy since 1991, with manufacturing Region, of which Mumbai is the most significant part. declining and services increasing. The Maharashtra Housing and Area Development Authority (MHADA) is the main agency supplying public housing, particularly for the lower-income and middle-income groups. The Cities Alliance n 43 Municipal Corporation of Greater Mumbai (MCGM) Water supply Sanitation Roads and drainage Primary education Public health Public markets and other obligatory functions Mayor Presiding over corporation meetings Standing Committee Mayor The statutory authority with financial powers Vested with the executive powers Control of central agency overlooking planning and implementation of construction of roads, bridges, and buildings Additional Municipal Commissioners Joint/Deputy Municipal Commissioners Assistant Municipal Commissioners Heads of Departments Education, improvement, and BEST Administrative head of 6 zones of MCGM Administrative head of 24 wards of MCGM The Collector of Mumbai is a revenue executive Housing. The growing population poses an responsible for land management aspects related to immense housing challenge for Mumbai. Out of titles and deeds of ownership of land. The Office of 2.51 million households, 1.33 million (53 percent) the Collector is responsible for issuing identity cards live in slums. Approximately 0.4 million people to slum dwellers, collecting from them, and granting live in old buildings in urgent need of repair or entitlements to government lands and removal of reconstruction. unauthorised structures from public land. The main hurdles in housing are the lack of The governance structure of Municipal Corporation of affordable housing, insufficient land for housing Greater Mumbai is indicated in the following diagram. development, outdated land policies, and inefficient and restrictive building regulations. An uniformly low floor space index of 1.33 in the city, and Main Challenges restrictions under the Coastal Regulation Zone Urban transport. The transportation system in Rules have limited the supply of buildable area, Mumbai faces many challenges. A major problem which has lead to high real estate prices. The recent is lack of sufficient capacity of transportation repeal of the Urban Land Ceiling Act has helped in infrastructure, such as roads and railways. During releasing some lands for housing. Similarly, peak hours, the suburban railway system carries reforms in the Rent Control Act, along with three times the capacity for which it was designed. property tax reforms, are expected in near future. The growing number of private vehicles adds to the traffic congestion on the already-strained arterial Environment. Mumbai is located in an ecologically roads. A major hurdle in improving transportation sensitive coastal zone that contains wetlands, forests, is the lack of resources and co-ordination among and wildlife sanctuaries. The area experiences a high various authorities. level of air pollution from petrochemical and other 44 n Slum Upgrading Up Close: Experiences of Six Cities industries, and from the growing number of Urban services. The following is an overview of automobiles. The high level of noise pollution from basic urban services. traffic and human activities is a challenge. Mumbai also suffers from pollution of rivers and coastal n Water supply. Water supply coverage to the waters, unsatisfactory refuse collection and disposal, slums is through 0.16 million metered stand and unauthorised occupation of wetlands by slums. post connections covering the entire slum areas. In addition, Mumbai has to address issues arising out n Sewerage: About 73 percent of slum dwellers of global climate change and associated calamities, depend on community toilets, while the such as heavy rains and floods. remaining 27 percent have no toilet facilities. Nearly 0.7 percent use pay toilets. n Solid waste management. Under the prevalent Informal Housing/ Slums solid waste management system, refuse bins Because of the huge gap in the housing supply for are placed in or near the slums, which are the poor, slums have cropped up all over the city. In accessible to municipal vehicles for collection. total, 1,959 slum settlements house around 6.5 Only 36 percent of slums have organised million people. systems of garbage collection. n Primary and secondary education. Municipal Characteristics of slums. Slums have proliferated in schools provide education in various local and Greater Mumbai for the last four to five decades. regional languages. Primary and secondary This has resulted mainly from the large number of education is provided free of cost to children job opportunities offered in the city in the informal living in slums. In addition, they also receive sectors. Slums have sprung up on any available education from private institutions supported space--along railway lines, near water bodies, with grants from the government. wetlands, hills, forest land, and pavements. These n Health. The MCGM runs primary health centres odd locations make it difficult to provide basic in different wards, and also provides medical urban services, giving rise to extremely unhygienic and hospital services to slum dwellers for a conditions. Because most of the slum dwellers earn small fee through municipal hospitals. Special their living from informal economic activities, they maternity hospitals are also set up by the MCGM have no access to finance and the formal housing for the benefit of women who live in slums. market, despite their contribution to the city's economy as industrial workers, construction labourers, domestic servants, rag pickers, taxi and auto rickshaw drivers, and vegetable vendors. Growth rate of slums. The percentage of the slum- dwelling population in the total population has increased from 39 percent to 48 percent from 1976 to 2001. By one estimate, all the slums together occupy an area of around 35 square kilometres, which is only 8 percent of the area of the city. Informal settlement in Mumbai. The Cities Alliance n 45 City's Vision to promote rental housing through legislative In 2006, the state government declared its goals in amendments and incentives to different rental the document Vision Mumbai, which has the housing options. following objectives: The government is yet to devise an action plan to n boosting economic growth to 8 percent to 10 implement the policy. Under the policy provisions, percent per annum; the government is responsible for providing n improving and expanding mass and private affordable houses to the urban poor through transport infrastructure; MHADA. Private developers are given Floor Space n dramatically increasing housing availability Index (FSI) or Transferable Development Right and affordability; (TDR) to enable them to provide free houses to the n upgrading other infrastructure; government. Thus far, no specific budgets have n raising adequate financing; been provided for the programme. n making governance more effective, efficient, and responsive; n generating momentum through quick wins; Meeting Housing Demands n enabling implementation through committed The housing policy has relaxed controls over the public-private resources. housing market and is allowing private operators to construct housing for the various sectors of society. Moreover, the MCGM has prepared its own The changes should increase the supply of houses Comprehensive Development Plan (CDP), which is in the market and reduce the gap between demand basically in line with Vision Mumbai. and supply. To guarantee the quality of the housing construction, a regulatory authority is proposed to oversee the housing market and the activities of the Housing and Slum Policies builders and promoters. Land availability is expected to be increased through Housing Policy various schemes, such as cluster housing. A tax on The state government for the first time declared a unused vacant land is also under consideration. formal housing policy in 2007. The main objectives of the housing policy are the following: Previous Slum Policies n to facilitate sustainable and affordable housing The following policies were carried out as efforts in urban and rural areas, and create surplus towards upgrading of slums. housing stock for lower-income groups and shelters on a ownership or rental basis; Prior to 1970s, slum demolition. Slums were n to pursue the target of upgrading slums through demolished by treating them as locations for illegal an equitable slum redevelopment strategy; squatters or encroachment. This proved n to deregulate the housing sector and encourage unsuccessful as the squatters simply moved on competition and public-private partnerships in within the city to another place nearby, or in the construction of houses for the poor; most cases rebuilt the hutments in the same places. This policy is also politically impractical. 46 n Slum Upgrading Up Close: Experiences of Six Cities 1970s, slum improvement works. The Maharashtra Under the current policy, around 100,000 houses Slum Area (Improvement, Clearance, & have been constructed so far, and an equal number Redevelopment) Act passed in 1971. Then in 1976, is under construction. But providing free houses the First Census of Hutments was carried out, and and the dependency on the real estate rates are big identity cards were issued to families living in slums. constraints. The policy has proved useful in cases This approach helped the matter only marginally. where rehabilitation was necessitated by implementation of vital infrastructure projects. 1980s, slum upgrading. Implemented with World Bank assistance in the mid-1980s, the programme provided slum land under a 30-year lease to the Land Policy co-operative societies of slum dwellers at a nominal With land being the scarcest resource in the city, rent. The programme had limited success because the government is extremely strict in allocating of such constraints as the high density of land to needy residents. Allocation of land for settlements and reservation of land for playgrounds, residents is possible only through the Slum schools, hospitals, and other uses. It worked better Rehabilitation Scheme, in which the land is in areas where the lands were developable for transferred to a society of the residents, instead of housing and the slum dwellers had the support and to individual persons. So while the individuals guidance of NGOs working with them. become owners of the flats, the land underneath remains in the name of society. Current Slum Rehabilitation Policy The slum rehabilitation policy initiated in 1995­96, City Targets has the following features: The city seeks to be slum free, but with the current magnitude of the problem and the lack of options, it n Every slum structure existing as of January 1, seems to be a distant dream. The state has 1995, is eligible for rehabilitation. announced the construction of around 100,000 n Slum dwellers get a self-contained, 225-square- affordable houses in the next two- to three-year foot carpeted tenement free of cost. period. A special slum rehabilitation project, called n Underlying land is the resource for the scheme. the Dharavi Redevelopment Project, has been n The consent of 70 percent of the eligible slum initiated by the government with a public-private dwellers is required for implementing the slum partnership approach to rehabilitate housing for rehabilitation scheme. over 50,000 slum-dwelling families. Special steps are n The cost of constructing the rehab tenements is being taken to promote rental housing so that the cross-subsidized from the sale of free-sale poor can find some shelter on a temporary basis tenements in the open market. without resorting to encroachments on public lands. n The government is not financially involved. The government has passed an act to control further proliferation of slums, which puts criminal responsibility on the civil staff and the police force to ensure that new slums do not arise. The Cities Alliance n 47 Access to Credit for the Poor Main Obstacles Access to credit for the poor is under consideration The main obstacles for Mumbai are the following: for the affordable housing policy. Currently, private financial institutions do not provide loans to those n insufficient supply of land; who do not have a formal source of income. n insufficient data about land and tenure; n outdated and rigid planning norms; n lack of political accountability; Looking Forward n lack of co-ordination among various governmental and semigovernmental agencies; n lack of resources and trained manpower Biggest Challenges necessary for urban planning. The biggest challenges facing Mumbai in terms of the housing situation are improving the following: Innovations n land supply through legislation, governance, The current slum redevelopment policy is an and financial management; inventive way of providing a housing supply for the n information systems about housing, data poor at no direct cost to the state, and at present it proposals, and construction; is Mumbai's greatest innovation regarding housing. n infrastructure to serve housing, such as schools, hospitals, and water supply; n management and repair of the existing housing stock; n public awareness and civil participation in governance regarding housing issues. Commercial activities in informal sector. 48 n Slum Upgrading Up Close: Experiences of Six Cities The Cities Alliance n 49 The Host: São Paulo Municipality Profile--the state of São Paulo and the seat of the São Paulo Metropolitan Region, which consists of 39 separate municipalities. The state capital has a population of almost 10.9 million, amounting to 6 percent of Brazil's total population of about 187 million. Together with the inhabitants of the other 38 municipalities forming the São Paulo Metropolitan Region, the total population amounts to 19.8 million and one of the world's largest conurbations. Housing in São Paulo Apart from being Brazil's most densely populated city, São Paulo is the country's foremost wealth- producing city, responsible in economic terms for around 9 percent of national GDP. As the leading industrial producer of consumer durable goods, the São Paulo Metropolitan Region was responsible for Brazil's industrialisation boom, which lasted from the 1950s to the 1980s. São Paulo served as a magnet for immigrants from other parts of the country, mainly from the northeast. The population of the municipality of São Paulo mushroomed from about 2 million inhabitants in 1952 to about 8.4 million in 1980. Subsequently, from the 1990s onwards, industrial production tended to flow increasingly towards the other municipal areas in the interior of the state, as well as to other regions of Brazil. This partly explains the abrupt reduction in the rate of population growth, which now stands at around 1 percent a year, as demonstrated by the graph below. Informal Housing Photo: Nova Jaguaré, São Paulo 50 n Slum Upgrading Up Close: Experiences of Six Cities From the 1990s onwards, the socioeconomic profile around the city, which currently house about 30 of the São Paulo municipality became focused percent of the municipality's population. predominantly on services, especially those linked to knowledge production and information During the years of high demographic growth provision. Despite the emergence of new (1950­80), these settlements occupied empty businesses devoted to these activities, São Paulo areas of land on the fringes of the city, still retains the headquarters of many large encroaching upon environmental protection areas industrial concerns. Changes in the economic in the north and south. profile of the city have not negatively affected São Paulo's position as a major producer of wealth. Favelas and irregular subdivisions have tended to be established with no regard for proper infrastructure-- In 2004, São Paulo´s GDP reached $55 billion (per in some cases occupying fragile land subject to capita GDP totalling $5,000), with production erosion--and, equally seriously, land that is neither leaning towards the services sector. officially registered for human occupation nor within the purview of planning legislation. These Changes in the economic profile of the municipality settlements have produced flooding, erosion, silting were not, however, accompanied by the necessary up of water courses, and negative environmental professional training of the economically active effects on drinking water production. population. Unemployment, currently running at around 30 percent (although gradually declining) All in all, the need to provide decent housing for this tends to be more prevalent among the poorer population segment is a basic constitutional principle sectors of the São Paulo population, which and is regarded as the main challenge of the comprise around 40 percent of the total population municipality's housing policy. It is essential to link of the municipality. It is precisely this population housing provision with policies that are targeted at that is unable to meet the demand for qualified, work training, employment and income generation, specialist labour. and are associated with environmental sanitation. The difficulties encountered by poorer workers to secure jobs in the formal labour market, together Housing and Slum Upgrading Policy with their low and unstable incomes, effectively The housing policy of the São Paulo municipality limit their families´ access to the housing finance has given priority to the upgrading and titling available in the private market. Such people are (tenure) regularisation of slums. The Cities Alliance generally unable to obtain assistance from the technical cooperation project with the Municipal majority of public sector housing finance Housing Secretariat seeks to design an information providers. With no indebtedness capacity and system to track the various settlements (favelas, ineligible for conventional housing credit, these irregular subdivisions, and tenements) in order to families have no other alternative but to occupy provide a more up-to-date and broader view of the informal, precarious settlements in favelas overall housing situation, as well as of the main (slums), irregular land subdivisions, and housing provision targets that form part of the tenements. The favelas and irregular subdivisions strategic housing plan. are predominantly located in the peripheral areas The Cities Alliance n 51 São Paulo--municipality, metropolitan region, and state--in Brazil Brazil, 183 million inhabitants State of São Paulo, 41, 4 million inhabitants 34% of Brazil GDP This macro-metropolitan complex concentrates around 70% of the State of São Paulo population. This area includes the metropolitan regions of Campinas, São Paulo and Baixada Santista, in addition to the macro regions of Sorocaba, São José dos Campos, Bragança Paulista, and Jundiaí. The maps were designed from IBGE and EMPLASA maps. On the basis of the updated version of the The settlements were classified in terms of existing georeferenced cadastral data on these settlements housing programmes: slum upgrading and of the field sampling survey, the following programmes, tenure regularisation of public areas, information was obtained about the number of sanitation improvement initiatives in the households and inhabitants living in favelas and headwaters protection areas, and subdivision irregular settlements in December 2007. regularisation, among others. For each of these 52 n Slum Upgrading Up Close: Experiences of Six Cities programmes, clear technical criteria were Defining priority intervention areas allows funds to established to help prioritise the interventions and be applied in a rational and flexible manner. Given to determine where financial resources should be the size of the housing problem in São Paulo, the directed. To ensure that priority actions were slum upgrading programme has access to around undertaken to benefit the most vulnerable sectors R$820 million1 earmarked by the federal of the population, criteria were employed based on government, and R$400 million provided by the a variety of indicators: infrastructure availability, São Paulo state government, in addition to health, social vulnerability, and the presence (or resources totalling around R$620 million made not) of geotechnical risk areas. available by the municipality itself. Projected Table 1: São Paulo's Informal Settlements/Slums Type Situation Settlements Dwellings Inhabitants % Total Population favelas in headwaters protection area 247 56,176 228,159 out of headwaters protection area 1,326 321,060 1,311,112 total 1,573 377,236 1,539,271 14.21% urbanized settlements in headwaters protection area 78 14,143 57,579 out of headwaters protection area 144 16,659 67,822 total 222 30,802 125,401 1.16% irregular settlements in headwaters protection area 325 26,216 104,151 out of headwaters protection area 910 458,023 1,679,411 total 1,235 484,239 1,783,562 16.46% overall--slums 3,030 892,277 3,448,234 31.83% overall--slums in 650 96,535 389,889 3.60% headwaters protection area overall--inhabitants in 10,834,244 São Paulo 1. Exchange rate: 1 US dollar = 2.29 Brazil Reais The Cities Alliance n 53 municipal funds for the Headwaters Programme are about R$640 million, plus R$190 million to be provided by the federal government, and R$250 million by the state government. R$100 million has been set aside for the tenure regularisation programme for municipal public areas. The slum upgrading programme benefits 130,000 families (one-third of the total number of families living in slums), who will be awarded deeds to formally mark the "special use concession for housing purposes" on completion of the upgrading work. The public infrastructure works will be undertaken in order to ensure the improvement of Slum upgrading in São Paulo. the sanitary conditions of the areas concerned. In addition, 10,000 housing units are being balanced way, which led to their becoming constructed to replace the present insalubrious integrated into the city proper, while at the same dwellings or those located in high-risk areas. time protecting the occupants' investments in constructing their own homes. Based on this In the headwaters protection area, works are experience, slum upgrading began to be viewed as commencing on the second phase of the a major component of municipal housing policy, as Guarapiranga Programme, which has now been well as one of the key public policy approaches for expanded to include the Billings Dam protection area alleviating poverty. and is now known as the Headwaters Programme. The Guarapiranga Programme is, from a housing In addition to providing solutions to problems of policy standpoint, a broad-based environmental sanitation, drainage, accessibility, and risk sanitation programme that incorporates slum elimination, the slum upgrading projects address the upgrading. This programme can be considered to be challenge of providing public spaces and amenities the first large-scale slum upgrading programme in for social meeting and interaction places. These São Paulo. Given that around 100 slums have already intervention proposals resulted from a survey of the been upgraded, the Guarapiranga Programme inhabitants' characteristics, needs, and expectations, provided an implicit model of slum upgrading. and from extensive social follow-up work undertaken with the relevant communities. The results obtained with the first slum upgrading efforts provided a new benchmark for further The projects basically take into account interventions of this kind. The various interventions topographical conditions, existing urban and demonstrated the importance of providing public architectural morphology, and available areas of spaces to integrate the various neighbourhoods land. They aim to create an environment where with their immediately surrounding areas. Indeed, each occupant can enjoy access to basic the various slum interventions made it possible to infrastructure services and new public amenities, reapportion the physical space occupied by the as well as to communal spaces designed to help slums in a sustainable and environmentally people socialise and build a sense of citizenship. 54 n Slum Upgrading Up Close: Experiences of Six Cities Slum upgrading and the integration of the slums n to maintain and enhance the management into the city proper (benefiting from the goods, information system that has already been amenities and services common to modern urban established, with a view to integrating it with life) basically mean that slum dwellers have greatly other databanks run by municipal, state, and expanded their opportunities for access to federal government bodies; employment, study, health care, and other services. n to ensure popular participation at every stage It also means that slum occupants are able to focus of housing production and delivery--from the on improving their homes whilst learning to definition of priorities and targets, through to acquire rights as genuine citizens. budget execution follow-up, and the execution of the public works planned under the municipal housing plan. Challenges and Expectations The current challenges for housing policy are the The main obstacles are the following: following: n the high cost of land for building new housing n to bring together the various interventions in units, given the scarcity of land in the formal the designated areas, with the river basin real estate market; serving both as a management and project n the low indebtedness capacity and the parallel unit, to ensure that integrated actions are difficulties encountered by low-income families undertaken to benefit environmental sanitation. (earning below three minimum salaries) to All of these can positively affect the future of secure access to housing finance; the entire Alto Tietê Basin. n urban crime caused by the presence of n to increasingly integrate education and training organised criminal gangs. This can make it of the workforce, employment, and income difficult to undertake slum upgrading. generation, and other social well-being actions with the slum upgrading and tenure regularisation projects; View of Paraisopolis. Slum upgrading in São Francisco. The Cities Alliance n 55 The following are the key achievements and innovations: n The main achievement arising from the process was the participation by Municipal Secretariat of Housing and Urban Development (SEHAB) managers during the entire strategic planning preparation process. Updating the cadastral data has been conducted systematically by all the officials, using the HABISP (www.habisp.inf.br) information system (a user-friendly tool that enables systematic updating of information by officials, Child in São Francisco, São Paulo. thereby guaranteeing their involvement in housing-related strategic planning). n The successful use of the HABISP information system. In addition, this system has proven to be a highly useful public policy management instrument for the population in general, given that it can be readily accessed on the Internet. Jardim Olinda. 56 n Slum Upgrading Up Close: Experiences of Six Cities The Cities Alliance n 57 Conclusion Lessons Learned from São Paulo--At the close of the dialogue on the "Challenges of Slum Upgrading: Sharing São Paulo's Experience of São Paulo," participating cities presented their reflections on the event and the lessons learned. They compared their experiences in slum upgrading with São Paulo's. Godfrey Hiliza, Manager of Policy and Operational housing, open spaces, and access to basic Support for Ekurhuleni Metropolitan Municipality, infrastructure in the slum areas. I am going back to observed that the São Paulo experience is unique India with very positive lessons from São Paulo," because of the close engagement between the Madan concluded. municipal staff and their constituents. For Abosede Francisco Bolaji, Lagos State "The passion of the technical staff in the slum Commissioner for Physical Planning and Urban upgrading process is clear for all to see. We Development, one significant lesson from São Paulo perceive some challenges similar to those faced by is that "upgrading of slums is not limited to housing Ekurhuleni, like limited capacity and construction or upgrading of existing buildings. The unemployment in the deprived communities. But social component of the entire process is key, with without doubt, São Paulo is already more advanced the ultimate objective being the guarantee of access than Ekurhuleni in the slum upgrading process." to life skills and to better living conditions." Urvinder Madan, Project Manager for the Mumbai Transformation Support Unit, pointed to spatial differences between the slums in Mumbai and São Paulo."In Mumbai, the informal settlements are spread all over the city; here in São Paulo they are concentrated in seemingly predetermined localities," said Madan. The quality of housing in the slums is also superior to what one finds in Mumbai. "What really impressed me about São Paulo is the level of planning, the technical expertise of the SEHAB team, and the quality of the Visit during international policy dialogue to slum upgrading site. Photo: Vila Nilo, São Paulo 58 n Slum Upgrading Up Close: Experiences of Six Cities He also pointed out the quality and dedication of also broached the all-important question of follow the municipal staff. He said it was hard to believe up on the dialogue, so that the materials and that these were civil servants, given their passion lessons are not lost in the maelstrom of daily for and commitment to their work. activities. "We need to more broadly capture and disseminate the lessons of cities through mass For Khalil Sha'at, Adviser to the Governorate of media channels, to create the opportunity to turn Cairo on Informal Areas, key impressions from the night into day," he said. Sao Paulo dialogue included the following: "The dedication of the teams involved in the slum upgrading process; data availability and use of data Looking Forward as a planning tool; public-private sector For the Cities Alliance, the international policy partnerships; slicing the issue--too many slums dialogue held in São Paulo was a first attempt to but serious upgrading under way; social work work with a significant partner city to share integral to the process; continuous public dialogue tangible lessons with similar cities elsewhere in the on slums and the slum upgrading process; and world. Notwithstanding the specific Brazilian policy, finally, the fact that the process is part of a defined legal, and financial frameworks, the essential national policy on slums, with both political and challenges are largely the same--considerable financial commitment by the government." social and infrastructural backlogs created through decades of social exclusion. Representing the Manila delegation, the Mayor of Taguig, Sigfrido R. Tinga, also noted the passion of The real significance of the Brazilian lessons is that the public servants in São Paulo. Other major African and Asian cities still have to experience the impressions were the "housing solutions, data sustained urbanisation patterns evident in Brazil, capture, and management systems, reinforcing the and therefore have the opportunity to learn from old management concept `what you cannot Latin American successes and failures alike. The measure you cannot manage,' and economic citywide upgrading programme in São Paulo is, development." indeed, truly impressive and has few peers. At the same time, the current administration is having to In summarising, he said cities needed a bigger make good the failures of previous regimes, for forum and a louder voice to bring their issues to whom the urban poor were seen as problems the fore of public life, for example, a dedicated rather than citizens. Avoiding the same costly cable channel to promote key messages and good mistakes will require leadership and decisive action news about such cities as São Paulo. Mayor Tinga in Africa and Asia. The Cities Alliance n 59 Photo: São Paulo Photography & Map Credits Cover--Daniel Ducci Page 30--Curt Carnemark Page vi--Daniel Ducci Page 31--Curt Carnemark Page 2--Both photos ­ Ciete Silvério Page 32--Florian Steinberg Page 5--GTZ-Participatory Development Programme Page 34--Florian Steinberg Page 11--photo courtesy of government of Cairo Page 36--Florian Steinberg Page 12--table was developed by GTZ- GTZ- Page 37--Florian Steinberg Participatory Development Programme Page 38--Florian Steinberg along with the Greater Cairo Governorates Page 40--Atul Loke, Panos Pictures (Cairo, Giza, and Qalyibia) Page 44--Paul Smith, Panos Pictures Page 17--GTZ-Participatory Development Programme Page 47--Atul Loke, Panos Pictures Page 18--photo courtesy of government of Ekurhuleni Page 48--Daniel Ducci Page 19--map courtesy of government of Ekurhuleni Page 49--HABISP 2008 Page 20--photo courtesy of government of Ekurhuleni Page 53--Habi Sudeste Page 21--photo courtesy of government of Ekurhuleni Page 54--View of Paraisópolis, Maria Teresa Diniz Page 22--photo courtesy of government of Ekurhuleni Slum upgrading in São Francisco, Habi Leste Page 23--photo courtesy of government of Ekurhuleni Page 55--Child in São Francisco, Habi Leste Page 24--photo courtesy of government of Ekurhuleni Jardim Olinda, Daniel Ducci Page 25--photo courtesy of government of Ekurhuleni Page 56--Chii Akporji, Cities Alliance Page 26--Edgar Cleyne, Still Pictures Page 57--Ciete Silvério Page 27--map courtesy of government of Lagos Page 59--Daniel Ducci Page 28--Curt Carnemark 60 n Slum Upgrading Up Close: Experiences of Six Cities 1818 H Street, NW Washington, DC 20433 USA Telephone: (202) 473­9233 Facsimile: (202) 522­3224 info@citiesalliance.org www.citiesalliance.org