CitiesAlliance 2002 C i t i e s W i t h o u t S l u m s ANNUAL REPORT CitiesAlliance C i t i e s W i t h o u t S l u m s T A B L E O F C O N T E N T S Introduction ....................................................................2 Cities Alliance in Action ..................................................5 City development strategies................................7 Citywide slum upgrading ..................................20 Financial services for the urban poor................35 Learning and knowledge sharing ......................41 Organisation ..................................................................47 Consultative Group ............................................47 Policy Advisory Board........................................48 Secretariat ........................................................49 Financials ......................................................................50 Cover: The shantytown of Damunagar, one of Asia`s two largest, continues to grow and is eating into the countryside around Bombay, India, 1995. Meeting the Challenge of CitiesWithout Slums T he world is continuing to urbanise rapidly ­ particularly in developing countries. Nearly half of the world's population is now living in urban areas and an increasing proportion of these people are poor. Poor people are drawn to cities and towns because they provide employment opportuni- ties. However, taking up such opportunities all too often requires the poor to live in squalid conditions, in slums and shanties, and Rt Hon Clare Short MP to endure inadequate services, insecurity, and consequent social Secretary of State for International and political problems. Development The Millennium Development Goals, agreed to by the entire United Nations membership, include a clear international commitment to meet this growing challenge of poverty in urban areas. Development assistance works most effectively when the recipient countries themselves drive the process.At the national level, when a developing country government prepares a Poverty Reduction Strategy, they set the agenda. International development agencies can then collaborate in the effort.The CitiesAlliance supports the same approach at the city level. Urban poverty is a global problem, but cities and their citizens need to deal with it at a local level, and international agencies should support them in doing this. The experiences captured in thisAnnual Report demonstrate the value of cities taking the lead and forging partnerships with civil society, the private sector, and the poor urban residents themselves, in order to eliminate poverty.These partnerships work to challenge the systematic exclusion of the urban poor, develop new livelihood opportunities, improve services, and empower poor people to live as full citizens. The Alliance's focus on citywide initiatives, rather than localised pilot interventions, is already resulting in innovative community-led financial facilities that increase poor people's access to credit for housing and infrastructure, and in new mechanisms for engaging the public and private sectors in the provision of services to the poor. DFID activities are aligned with the CitiesAlliance agenda to promote city-level strategic planning and to work towards cities without slums.As members of the CitiesAlliance, our collective goal must be not only to work towards, but to exceed, the target of improving the lives of 100 million slum dwellers by 2020. I am pleased to have this opportunity to commend the work of the CitiesAlliance in this, its secondAnnual Report. Clare Short Secretary of State for International Development United Kingdom Cities Alliance 2002 1 Introduction A pipeline carrying drinking water to more prosperous districts of Bombay passes hree years after its creation, the the living conditions of their most vulnerable T through the shantytown of CitiesAlliance is already making and marginalised urban residents. Mahim. Bombay, India, 1995. development impacts at both the global and local levels. Principal among TheAlliance is helping its members define a these is the adoption by world leaders of an new strategic course for urban development international development target which, for co-operation, a course increasingly led by the first time, focuses on tackling poverty civic leaders who are tackling head-on the where it is growing most rapidly -- in negative effects of growing inequalities and cities.The Alliance's CitiesWithout Slums social exclusion. By focusing on the city as initiative has been endorsed as a Millennium the unit of analysis, rather than on sectors, Development Goal ­"by 2020,to have and on solutions promoted by local authori- achieved a significant improvement in ties and the urban poor themselves, city the lives of at least 100 million slum development strategies (CDS) supported by dwellers". This goal is already being adopt- theAlliance provide a framework for city- ed as a challenging vision by civic leaders wide poverty reduction.And by engaging worldwide, who are responding with specif- potential investment partners from the ic actions and concrete targets for improving outset, theAlliance is encouraging the 2 Cities Alliance 2002 Introduction development of new investment instruments Cities Without Slums to expand the level of resources reaching Millennium Development Goal local authorities and the urban poor. Target 11 This report highlightsAlliance impacts at By 2020, to have achieved a significant both the local and the global level. Examples improvement in the lives of at least 100 from all regions demonstrate Alliance part- million slum dwellers ners in action during FiscalYear 2002 Progress will be monitored through... (FY02), as well as the achievements and Indicators 30 and 31: impacts ofAlliance activities initiated in FY01. It is clear that Alliance partners have (30) Proportion of people with access to improved sanitation already begun the process of drawing lessons from these experiences and are adapting (31) Proportion of people with access to their approaches based upon these lessons. secure tenure United Nations General Assembly (A/56/326) 6 September 2001. Achieving the promise of Cities Without Slums will require new thinking and behaviour from slum dwellers, s Speaking on "The Economics of Sustainability" in April 2002, macro- governments and international agencies alike. To continue economist Jeffrey Sachs, advisor to the business as usual is to guarantee the creation of the next UN Secretary-General on the MDGs, stressed the need for an "urban-based slum, and the misery that it embodies. poverty reduction strategy", arguing that "the current rural-based strategy does AnnaTibaijuka,Executive Director of UN-HABITAT,Co-Chair of the Cities Alliance Consultative Group, World Habitat Day message,October 2001. not address the plight of cities...". At the global level there is growing evidence s Norway became the latest Alliance that international commitment to the Cities member to issue an urban development Without Slums Millennium Development policy paper. NORAD's position paper Goal (MDG) is influencing the operations Poverty and Urbanisation - Challenges and of Alliance partners and the way they do Opportunities (April 2002), quotes the business: Alliance's 2001 Annual Report on its cover page, and strongly commits s "SecureTenure" was adopted as an indica- NORAD to contributing to the Cities tor for measuring progress towards the Without Slums MDG. CitiesWithout Slums MDGTarget ­ a significant step as insecure tenure is a causal factor of both urban poverty and slum formation. Cities Alliance 2002 3 Introduction s TheWorld Bank's World Development The events and activities of this last year Report 2003:Sustainable Development in a have broadly reinforced theAlliance's Dynamic Economy, devotes a full chapter to strategic focus on urban poverty reduction. "Getting the Best from Cities". Sections Alliance members committed to achieve this on "Inclusion and access to assets ­ goal on 16 December 1999, the day they challenging the institutional roots of launched the CitiesWithout Slums action plan. urban slums" and "Empowerment Moving forward, the Alliance needs to con- through access to assets ­ security of tinue to strengthen its ability to fill strategic tenure" highlight critical issues directly knowledge gaps through learning and infor- linked to achieving the CitiesWithout mation-sharing among its members. In Slums MDG. reviewing its activities, it is important to determine what works, what does not, and s The Asian Development Bank (ADB) why.To this end, though theAlliance is less joined the CitiesAlliance.ADB's com- than three years old, it has commissioned an mitment, as spelled out in itsTechnical independent evaluation of the impacts of the Assistance programme "Promoting Alliance partnership.An initial report to the Urban Poverty ReductionThough membership is scheduled for the fall of Participation in the CitiesAlliance" 2002.What are the early results of the inter- (March 2002), will support CDS and ventions? How should impact be measured citywide upgrading in the region and and monitored? Are the interventions being should also strengthenAlliance efforts conducted with efficiency and efficacy?The to mobilise investment follow-up. Alliance must ask these questions of its own partnership, and of the partners with which it engages, to ensure that it achieves results. 4 Cities Alliance 2002 CitiesAlliance inAction T he CitiesAlliance is a unique policy To achieve its goals at the global level the forum in that it brings together Alliance is pursuing four interrelated representatives of the world's cities strategic objectives: as equal partners in a direct dialogue with bi-lateral and multi-lateral development agencies and financial institutions.A princi- pal motivating factor forAlliance members to join forces is their recognition that they Advancing collective Building Political know-how have much to learn from each other and that Commitment (learning alliance) drawing on their collective experience will help fill critical knowledge gaps. The Alliance seeks to advance the collective know-how of local authorities and their Directly linking with Increasing coherence investments and new international development partners on ways and synergies financial mechanisms to reduce urban poverty and improve the quality and impact of urban development cooperation. Building on the common elements of their respective urban strategies, Alliance partners have joined forces to pro- mote a more comprehensive approach to Early outcomes of this strategy are encour- urban poverty reduction by focusing on aging.Alliance support to build political action at the country level in two key areas: commitment around the goal of Cities city development strategies (CDS) which Without Slums has led to the adoption, for reflect a shared vision for the city's future the first time, of an international develop- and local priorities for action; and citywide ment target for urban poverty reduction. and nationwide slum upgrading to systemat- And as described in this report, focusing on ically include the most vulnerable and CDS and citywide upgrading has met with marginalised urban residents as both part- an enthusiastic response from cities of all ners and beneficiaries in the city's growth. sizes, in more than 25 developing countries, which are working in partnership with Alliance members to achieve this goal. Cities Alliance 2002 5 CitiesAlliance inAction Becoming a learning alliance on marshaling their resources to improve the quality and coherence of urban development The challenge of becoming a learning cooperation and its poverty reduction alliance has two critical dimensions: to impacts. systematically analyse and effectively com- municate policy and operational lessons Since its inception, theAlliance has invested from experience, and to fill critical knowl- US$30 million in 27 countries, 17 regional edge gaps. Over the past year it has become and global learning activities, and in one facili- increasingly clear that each of these functions ty (the Community-Led Infrastructure merits much greater attention, as well as a Finance Facility - CLIFF).Alliance funds are greater share of theAlliance's resources.This catalytic.They are seed funds used to help implies the need to more systematically Alliance partners build strong foundations for incorporate these learning and communica- citywide and nationwide slum upgrading and tion activities as an integral part of the city development strategies.They also lever- Alliance's work programme. age the public and private sector capital investments required for implementation.The While this learning alliance objective has yet Alliance is selective in the initiatives it funds. to be satisfactorily achieved, there are signs All proposals are evaluated against the ten of progress.Alliance partners are already core criteria that are reflected in its charter. pooling their resources to begin to fill two knowledge gaps which are critical to scaling Cities Alliance Criteria up: how to mobilise private capital to extend financial services and infrastructure to the v Targeting the objective ­ city development strategies urban poor; and the range of policy options and/or scaling up slum upgrading; to increase security of tenure, property v Government commitment and approval ­ approved by rights, and access to public services.The local and national authorities; Alliance is also beginning to receive more v Linkage to investment follow-up ­ potential investment proposals which focus on the learning partners are involved from the design phase; alliance function, and which are more v Partnerships ­ conceived in a participatory process with systematically engaging existing networks local stakeholders, including private sector and community of local authorities, urban professionals, organisations; academics, universities, and urban policy research institutes. v Co-financing ­ combines seed funding from the Alliance with co-financing from cities as well as other sources; The Alliance is working with interested v Coherence of effort ­ promotes cross-sectoral members and partners to develop a learning coordination and inter-agency collaboration; and communications strategy which will v Scaling up ­ moves beyond pilot projects to citywide and help guide and strengthen these critical nationwide scales of action; functions. v Institutionalisation and replication ­ helps cities and their national associations institutionalise city development Targeting results strategies and citywide slum upgrading; CitiesAlliance activities are designed and v Positive impact on environment ­ achieves significant carried out by Alliance partners, and focus environmental improvements, especially in the living conditions of the urban poor; and v Duration ­ achieves deliverables within well-defined time 6 Cities Alliance 2002 frames, preferably within 24 months. CitiesAlliance inAction City Development Another key finding is that implementation Strategies should not be limited to new investments --it can be led by the adoption of new poli- S trategic decision-making in managing cies and by the enhanced capacity of citizens urban growth is not yet common prac- and local authorities to make informed tice in developing-country cities -- choices and achieve greater equity in sharing many of which are growing at rates unprece- costs and benefits. In several cases, city- dented in human history.The Alliance has regions have been considered by the local sought to promote city development and national authorities to be the most strategies (CDS) as a collaborative decision- productive units of analysis.And finally, the making process designed to help reduce sustainability of the CDS process depends to urban poverty and provide the basis for sus- a great measure on the active involvement of tainable urban development.The Alliance is national authorities and national associations supporting CDS in all regions, and in cities of local authorities. varying in population from 100,000 to city- regions having more than ten million While variation in the challenges, priorities, inhabitants. Over the last three years, virtu- and potential of each city makes each CDS ally all members of theAlliance have directly unique, many of them have produced innova- engaged in supporting this process at the tive tools and practical approaches which country level. have helped spawn city-to-city learning processes. Nowhere is this more evident than What have we learned so far?The summaries in EastAsia where, through the active of sixAlliance-supported CDS processes, engagement of national associations of local provided below, illustrate several key lessons. authorities, more than 60 cities are engaged First, to be effective, participants need to see in this process, and where theAlliance is implementation, rather than the develop- supporting city-to-city knowledge sharing ment of the CDS, as their primary goal.At with national and regional networks of local the same time, providing it is results-orient- authorities.This replication process has also ed, the CDS process itself can achieve produced national guidelines for formulating significant impacts on governance, accounta- CDS, which theAlliance's global and regional bility, and transparency. local authority partners are helping to assem- ble and disseminate through their networks. Cities Alliance 2002 7 CitiesAlliance inAction:City Development Strategies Johannesburg s Creation of a Contracts Management Unit, functioning as a virtual Public City-Level Comprehensive Utilities Commission -- the first of its Development Framework and kind at the city level in SouthAfrica. Slum Upgrading The metropolitan region of Johannesburg s Requirement that the key revenue-gen- has an enormous influence on the economy erating utility companies pay dividends of SouthAfrica.With its 2.8 million inhabi- to the council to support social services, tants, it produces almost 16 percent of the including the council-wide informal country's gross domestic product (GDP) settlement programme. and provides employment for 840,000 peo- ple. Despite its vast economic potential, in 1998 Johannesburg found itself bankrupt and facing serious institutional and service delivery challenges.The five autonomous municipal governments that then made up the Johannesburg metropolitan region took up the challenge by introducing a radical reform plan, which combined short-term stabilisation measures with medium- and long-term strategic planning approaches. Through these reform plans, known as iGoli 2002 and iGoli 2010, the Greater Johannesburg Metropolitan Council (GJMC) undertook the following measures: s A strategic reorganisation of the five autonomous Municipal Councils into a single Metropolitan Council. s The formation of ten companies to deal with key services, including water and sanitation, public transport, road mainte- nance, gas, electricity, property, and the zoo.The gas company and the municipal airport were sold outright.The remain- ing companies are wholly owned utilities of GJMC, and each company has a corporatised management relationship with the private sector and the council, tailored to suit its specific needs. Source:South Africa:Monitoring Service Delivery in Johannesburg (draft) 8 Cities Alliance 2002 World Bank,Southern Africa Department,April 2002. CitiesAlliance inAction:City Development Strategies Service Delivery Monitoring System To improve decision-making related to service delivery to the urban poor, the City of Johannesburg has established a service delivery monitoring system as an integral part of its city development strategy with the support of theWorld Bank, the Netherlands and the CitiesAlliance. The underlying idea was to give political representatives and communities access to infor- mation to increase accountability.The challenge was to pilot a simple and affordable survey of poorly served areas, and to integrate the generation and use of information with annual budgetary allocation decisions as well as political processes to give voice to the city's poor residents.The monitoring system, based on current information regarding the status of service delivery to poor households, allows better targeting of sectoral expenditures towards poor neighborhoods. By establishing a one-to-one link between sectoral budget allocations and their impact on poor households, the monitoring system should also help keep municipal officials and the citizens of Johannesburg abreast of the city's progress towards Joburg 2030's goal of becoming a world-class city. Among the criteria for the monitoring mechanism were simplicity, affordability (time and financial costs), user friendliness, and fiscal accountability. Using a geographic information system (GIS), poorly served areas where households received less than basic services were identified and mapped. Hand-held computers (palms), programmed with consistency checks to reduce errors, were used to record information.The data was then transferred to a server every other day and transformed into Excel format for immediate use.The Excel database is available to city officials and other stakeholders in user-friendly formats, and the city is now planning to install the database on its website for public use. The survey of poorly served areas is an important step towards establishing a system to monitor the delivery of essential services, particularly to the poor.The effectiveness of the monitoring system rests on several important factors, including: the kinds of information collected through surveys; how various stakeholders use the information; how it may con- tribute to building accountability for improving the delivery of essential services to the poor; and how its results, i.e., changes in the status of service delivery on the ground, may in the future help to improve the city's fiscal efficiency with respect to service delivery. The city of Durban is now implementing the systems pioneered with CitiesAlliance sup- port in Johannesburg; these systems are expected to spread through the Cities Learning and Support Network to the other seven large cities in SouthAfrica. Lagos, Nigeria, Africa's largest city with a population of more than 12 million, has also expressed interest in adopting the Johannesburg service delivery monitoring system. Source:South Africa:Monitoring Service Delivery (draft); World Bank,Southern Africa Department,April 2002. Cities Alliance 2002 9 CitiesAlliance inAction:City Development Strategies Doing More and Doing it Right Executive Mayor Amos Masondo, Excerpts from Mayoral Budget Speech,May 2002 Tiyiselani Manganyi was born in MofoloVillage, Soweto, on 11 November 1996. She is six years old and attends a preschool. She will be starting school next year. She stays with her parents in Klipfonteinview (now part of the City of Johannesburg), an area with no schools, no proper sport facilities, no clinic, nor a creche.The area is partially electrified.The majority of the children attend school in one small hall. ...Tiyiselani was just a year old when the Constitution of the Republic of SouthAfrica crafted a vision for local authorities. Chapter 7 of the Constitution wants to see her live in a sustain- able social and economic environment, in which her basic service needs will be met and her views will be listened to and respected....This is a promise the Constitution made to her.This is a promise we in local government are obligated to realise. ...The Joburg 2030 strategy marks an important paradigm shift in our approach to planning. The strategy is data-driven and forward-looking in approach. Joburg 2030 repositions the Council from being perceived simply as an administrative entity and a service utility. Local government should also be seen as an agent for economic growth. ...That brings me to the 2002/03 budget.This budget sets the foundation forTiyiselani Manganyi.When she turns 36 in 2030, she will be an adult in a city with adequate job opportunities, living in a house that has running water, electricity and an environment where her refuse is being removed regularly. She will live in a street without potholes and will have access to a reliable and efficient public transport system. She will also live in a safer city. Eventually,Tiyiselani will enjoy a quality of life that makes her a proud citizen. ...But a budget on its own cannot get us to our destination. Involvement of the people is a critical ingredient for the city's ultimate success.There are various ways in which this can be done. One way is to be actively involved in government processes, including budget formula- tion, as has already been demonstrated by the participation of the residents of Johannesburg during this budget process. 10 Cities Alliance 2002 CitiesAlliance inAction:City Development Strategies the next budgeting exercise: more than 2700 participants discussed the budget in 33 sessions over five months; a stakeholder summit was held, and a tariff objections process was institutionalised.According to city officials, the consultation and participa- tion processes in the CDS have helped to develop better strategies and achieve wider support.To ensure that the broader spec- trum of community organisations is actively involved in governance issues, the city established ward committees comprising civil society representatives. China City-Regional Development Strategies CDS activities supported by the Cities Alliance in China have been conceived within the framework of China's national policy to promote the growth of small and medium sized cities.This national policy is designed to The progress made to date has widely capture the benefits of the urbanisation exceeded expectations and enabled the City process to both economic and social develop- of Johannesburg to move beyond the stabili- ment. City-regional development strategies sation and restructuring of the city.With a which complement existing planning return to operating surpluses, the city is able mechanisms are seen as particularly useful to offer a social package to the poor that during this period of rapid urbanisation. provides them with free access to municipal services.The city's return to creditworthi- The initial phase of these activities began in ness that has resulted from the iGoli October 2000 in the city-region of restructuring has also enabled it to tap hun- Changsha - Zhuzhou - Xiangtan in Hunan dreds of millions of rands in private financing Province and Guiyang in Guizhou Province. for urgently needed public investments. The focus of these activities was to support the development of regional strategies for Its new long-term strategy, Joburg 2030, overcoming the deficiencies of a fragmented focuses on economic growth, job creation, governance structure of a large metropolitan and poverty alleviation. It is being opera- area. One of the outputs was a comprehen- tionalised through revolving three-year sive, prioritised investment programme to integrated development plans and three-year be financed through a mixture of local, medium-term budget frameworks. Despite national and international sources. the plan's long-term horizon, the city took early measures to integrate Joburg 2030 into Cities Alliance 2002 11 CitiesAlliance inAction:City Development Strategies Subsequently, with co-financing from DFID Philippines (UK) and theWorld Bank, the Cities Scaling up Poverty-Focused Alliance and China have moved into a sec- City Development Strategies ond round of CDS, focused on development strategies in the Chengdu, Zhengzhou, Rapid urbanisation and increasing urban Lanzhou, and Erdos/Dongsheng city- poverty pose a special challenge to the regions.These CDS will highlight the Philippine local government units that have regional urban perspective, as these regions principal responsibility for basic service are anchored by one major city, or constitute provision. a corridor, including a few smaller cities and towns.This work will also benefit from the Drawing on the experience of seven cities analysis of vulnerable groups and the mini- which piloted the CDS process in the mum living standard scheme in these Philippines, the League of Cities of the city-regions.With strong urban-rural link- Philippines (LCP), is implementing a Cities ages, these cities can play a prominent role Alliance grant to take CDS to scale in the in improving the living standards in their Philippines.With implementation support surroundings by facilitating migration and provided by theWorld Bank and UN-HABI- developing peri-urban areas. TAT, an additional 31 cities in the Philippines are now preparing CDS. Working closely with the Chinese Association of Mayors and Chinese urban At the heart of the Philippine experience is experts, the key objective of this second the Urban Karte, a comprehensive planning generation of CDS is to assist the cities in tool for understanding present conditions western China to develop region-based and trends, identifying issues and problems, strategies for economic development; strate- and measuring performance by the local gov- gies will include labour market, ernment to improve the efficiency of urban infrastructure and service delivery and regional coordination of environment and League of Cities criteria for scaling up social services activities.With China's strong v City mayors personally lead their CDS policy orientation to promote urbanisation, exercise; both the Ministry of Finance and the State Development Planning Commission are v Cities wishing to undertake a CDS pass a City Council resolution closely following this process. It is anticipat- approving funding and other inputs ed that these CDS will broaden the for the CDS; understanding of the role of city-regions in development, while identifying correspon- v All stakeholders are involved in the development of the CDS; ding institutional reform and strategic policy issues.An excellent outline of the method- v The LCP organises national work- ological steps in "Formulating City shops, and provides tools and guidance through its website Development Strategies in China" has been (www.cdsea.org), enabling mayors produced to guide this process and is avail- and local government units to able on the CitiesAlliance website. exchange their practical knowledge and experience. 12 Cities Alliance 2002 CitiesAlliance inAction:City Development Strategies policy and management. It consists of a people,in the process helping build stakeholder- Baseline Profile and four key criteria: ship across society.The vision and mission livability, competitiveness, governance, and statements define the city's agenda,functioning as bankability. Each of the criteria is charac- anchor of all local development efforts.The CDS terised and measured by a set of indicators has brought focus on attainable targets for the which provides the basis for a transparent city,considering the city in terms of poverty and accountable local government.The reduction,local economic development,and Urban Karte is created with the broad good governance. involvement of the city's stakeholders, Mayor Jesse Robredo, including central government agencies, Naga City the private sector, NGOs, CBOs, leaders, academics, and others. We didn't have to reinvent the wheel.Experiences of other cities in different programmes are good According to the mayors of participating starting points in conceptualizing programmes cities, empowering civil society and institu- and projects.Involvement of stakeholders through tionalising consultative mechanisms through a consensus-building process in planning, the CDS process have clearly contributed implementing,monitoring,and evaluation of to the sustainability of government pro- programmes and projects is a must for sustainable grammes and projects. Such mechanisms and successful development of the city. have also allowed poverty issues in their Mayor Sally Lee, cities to be addressed more effectively. Close City Government of Sorsogon to 40 percent of the priority projects of the first seven CDS cities have either already The entire process gives us a new perspective on been realised or are being implemented. how to manage the city properly...Through Here is what some of these city managers observations,surveys,and constant dialogue with have said: the different sectors we were able to find out new things about the city. Together with more than 250 representatives of the civil society in Naga,we have crafted a holistic Gil P. Lentejas, City Planning and vision for our city.This participative visioning Development Coordinator, process helped crystallize the aspirations of our Calbayog City Consult the people before making decisions. Validate administrative data with the people concerned. Mayor RandolphTing, Tuguegarao City Cities Alliance 2002 13 CitiesAlliance inAction:City Development Strategies City-to-City Networking: Knowledge-Sharing among Local Governments TheWorld Bank's EastAsia urban team, supported by the CitiesAlliance through a non-core contribution from the Government of Japan, has been assisting local government associa- tions inAsia to set up city-to-city knowledge-sharing networks which allow mayors and local government officials to exchange and pool practical information and experiences. The League of Cities of the Philippines (LCP) has been spearheading this activity among 40 cities through their own website (www.cdsea.org). The China Association of Mayors (CAM) has been developing its own knowledge-sharing platform (www.townsfuture.com) in both Chinese and English, allowing interested parties both inside and outside of China to access vital statistics and information about Chinese cities. Local knowledge sharing is supplemented with cross-country dialogue, via the Global Distance Learning Network (GDLN) and face-to-face workshops.To date, three GDLN dialogues have been organised.The latest,"Voices of the Poor: Engaging the Urban Poor in CDS", connected more than 100 participants from cities andWorld Bank offices in six global locations, includingWashington, Beijing, Hanoi, Jakarta, Ulaanbataar, and Manila. The latest workshop,"Singapore Urban Poverty LearningWorkshop", organised by the World Bank and the Government of Singapore, brought together more than 20 mayors and city officials from China,Vietnam, Philippines, Mongolia, Cambodia, and Indonesia to exchange experiences and ideas on tackling urban poverty. Key features of this networking include: v Connecting cities to the relevant experience faster; v Engaging experienced CDS cities as resource cities and building strong communities of practice among city administrators and local governments, as an alternative to continu- ously relying on external consultants and technical assistance.This allows for the sharing of local knowledge on a peer-to-peer basis with mutual benefits, rather than a one-way communication flow of global lessons and best practices that may not apply to the specific local context; v Leveraging knowledge through technology, using a platform of low-cost and highly-flex- ible technologies to enable cities from across EastAsia to learn from each other and share experiences: country websites linked to a regional portal; GDLN videoconfer- ences supported by web-based learning tools; and face-to-face workshops; v Creating strong partnerships and ownership in each participating country, currently in China with the CAM and soon the China Country Development Gateway and in the Philippines with the LCP; v Facilitating the funding of local projects and investments through online investment marketplaces available to local governments, donors, the private sector and consult- ants, on each country website as well as on the regional portal page. 14 Cities Alliance 2002 CitiesAlliance inAction:City Development Strategies Kigali: Turning challenges into opportunities, the City of Kigali, with the support of the Cities Economic Development Alliance and USAID, decided to embark on a Strategy long-term strategic planning approach called In just over a decade, Kigali has grown from the Kigali Economic Development Strategy approximately 235,000 people to an esti- (KEDS).An assessment of the problems and mated 600,000 people today.This growth potential of the City of Kigali was conducted has been driven by people in search of as the first step in the city's efforts to achieve employment opportunities and a better sustained economic growth and reduce quality of life, including access to education, poverty. City officials decided on an inclu- health care, security, and social and cultural sive decision-making process for the amenities. planning of Kigali's long-term future. KEDS has embraced public participation from all However, this rapid increase in the city's sectors ­ businesses, individuals, NGOs, population has come at a significant cost.The representatives of the poor, women's associa- unrestrained growth has impacted the city's tions, the central government, and capacity to deliver adequate basic public community residents.All of these groups services including water, energy, and basic were involved in drawing up the strategies sanitation.At the same time, the urban and actions that make up the KEDS. economy has not grown sufficiently to support the rural-urban influx, resulting in a In order to ensure the implementation of the severe unemployment crisis and an increase strategic plan, specific actions were designed in urban poverty. and incorporated into the city's budgeting process.These actions called for the commitment of resources from the city The Kigali Economic Development Strategy (KEDS) marks administration, including the creation of an a new beginning for local government efforts to sustain Office of Economic Development.This new unit will coordinate policy, advocate long economic growth in Rwanda's most important urban term investment, and work with the central region. After surviving many years of economic crisis, Kigali government, the private sector, and relevant NGOs to implement strategic initiatives is now at a point where there is the possibility of a more aimed at improving the business climate. promising future. KEDS provides a vision of this economic future and a plan to lead the way. KEDS provides an opportunity for public and private sector individuals and organizations to work together to achieve and sustain a more prosperous future for all citizens of Kigali. MayorThéoneste Mutsindashyaka,City of Kigali,March 2002. Cities Alliance 2002 15 CitiesAlliance inAction:City Development Strategies The leadership of the City of Kigali is clearly partners and stakeholders are required.The committed to moving forward the imple- World Bank is considering an important mentation of the KEDS in a comprehensive urban development programme which and coherent manner, understanding that to reflects the investment priorities identified achieve measurable progress, a multi-faceted by Kigali as well as the needs of some of the approach and the cooperation of various country's other municipalities. Kigali Organises for Economic Growth In its first year of operation Kigali's new Office for Economic Development is to be charged with the following responsibilities: v Act as the voice of the economic development community to the City of Kigali and its budgetary process on the issues of economic development support and fiscal stability; v Form partnerships with the private sector through local enterprise agencies to assist both new and existing enterprises by providing information, business counseling, technical sup- port, entrepreneurship training, and promotional programs; v Oversee the establishment of a Free Port at KanombeAirport and new Enterprise Zones elsewhere in the city to stimulate business with countries in the neighbouring regions of Africa; v Convene a council involving the private sector to review and make recommendations on reforming both the local government tax structure (with regard to business taxes and fees) and the general regulatory framework for business; v Convene a council involving the private sector to streamline administrative procedures that delay the securing of land needed for investment; v Oversee the establishment of a commercial court to reduce risk to the lenders from the increase of non-performing loans; v Work with the Planning Office to ensure that the Master Plan for Kigali exploits every opportunity to plan for the needs of a growing urban economy; v Work with the Government of Rwanda to create a more positive international image of the country as a stable and profitable place in which to invest. 16 Cities Alliance 2002 CitiesAlliance inAction:City Development Strategies Aden However, due to the far-reaching Local Authorities Law on decentralisation that was City Development Strategy enacted in February 2000, decision-making for Local Economic is being transferred from the central level to Development popularly elected local councils.These Aden is a major port on the Red Sea. councils are charged with supervising the DespiteAden's position as the economic activities of the newly decentralised line and commercial capital of the Republic of ministries. Yemen, local authorities are facing difficul- ties in several key areas: providing quality The Governorate of Aden intends to trans- and adequate basic services to both citizens form Aden into a fast-growing, productive, and investors; attracting investment to and inclusive port city with the help of the expand employment and services; and defin- Aden City Development Strategy. ing effective and sustained urban poverty The CDS process has encouraged local reduction policies. Rural-urban migration council members to engage their communi- has contributed significantly to the rise in ties so as to make informed decisions. Local urban poverty.Yemen's urban population is council members have taken the lead in projected to grow to around 29 percent by conducting assessments in these districts to 2005, with urban growth rates as high as 8 identify the priority needs of citizens.These percent per year in its largest cities. national- and local-level reforms have Until recently,Yemeni local governments opened up new opportunities for under- were severely limited in addressing the prob- standing local conditions, addressing urban lems their cities faced because of a highly poverty, improving service delivery, and centralised decision-making process. increasing local participation. Cities Alliance 2002 17 CitiesAlliance inAction:City Development Strategies The CDS is also providing input to aWorld commercial and industrial estate areas.There BankAdaptable Program Loan that will are plans to extend theWorld Bank lending provide funding for key infrastructure programme to otherYemeni port cities, if investments and capacity-building and will these cities choose to draw upon Aden's support local administrative reforms. In experience to implement their own CDS.A order for the CDS plan to demonstrate number of additional development agencies, quick results, these investments will initially including UNDP, GTZ and FAO, are sup- concentrate on two projects: linking impor- porting the CDS through their ongoing tant commercial districts inAden and programmes. upgrading infrastructure in selected Sofia social development, the reduction of pover- ty, and participatory local governance and City Development Strategy decision-making. Municipal reforms have become the corner- stone of a successful transition from a socialist to a market economy and a priority Initiating systemic changes at the local level: lessons from Sofia's experience for central governments in Eastern Europe and CentralAsia.The City of Sofia, which v Strong city ownership is a prerequisite for represents 14.5 percent of Bulgaria's popula- successful public consultations; tion and accounts for an estimated 20 v Extensive consultations for municipal officials percent of the country's GDP, decided to on the process and objectives of round table take on the challenge of combating rising discussions with stakeholders is beneficial; poverty and implementing far-sweeping v Active citizen participation in strategy formulation reforms in order to qualify for EU accession. and issues related to service delivery and gov- To achieve these goals, Sofia has adopted a ernance is particularly important. long-term City Development Strategy based on sustainable economic growth, equitable 18 Cities Alliance 2002 CitiesAlliance inAction:City Development Strategies The city's "strategy for change" relies heavily The implementation of such a coordinated, on broad partnerships between the strategic planning process marks a radical Municipality of Sofia and representatives of departure from the socialist, highly cen- local NGOs and trade unions and profes- tralised style of urban management. In the sionals from Bulgarian institutions such as past, public input into the urban planning the Association of Local Governments, and management process was not solicited, Ministry of Regional Development and nor was there an opportunity to challenge PublicWorks. Other partners involved are decisions made at the central level. Formal the European Commission, GTZ, USAID- channels for communication between the Local Government Initiative, and UNDP. municipality and local communities had not The partnerships focus on research, policy been established. advice, public consultation, and capacity- building. Sofia municipality enterprises are It is expected that the Municipal Council also in the process of securing financing for will approve the CDS in September or the rehabilitation of district heating and October 2002, thus successfully concluding transport services from theWorld Bank, the the first systematic test of the efficiency and European Bank for Reconstruction and appropriateness of a CDS in a transition Development, the European Commission, economy. and the Japanese government. Sofia's public participation and consultation processes Drop-in boxes, questionnaires, exhibition. Drop-in boxes were situated in all city dis- tricts and in the SofiaArt Gallery.The gallery hosted an exhibition on the CDS approach and process, which highlighted major trends in the development of Sofia's economy, finance, and spatial development.The exhibition was officially opened by the Mayor of Sofia.The drop-in boxes allowed citizens to comment on the draft CDS and to prioritise the proposed strategic directions. Information dissemination. Information packets were disseminat- ed to major stakeholders.The city launched a media campaign to inform and involve the broader community. Both the city and the World Bank Resident Office have posted the CDS report on their websites. Round table discussions.Two round table events were organised to discuss the issues, opportunities, and strategic directions for the development of Sofia. Discussions brought together city officials, central government representatives, NGOs, academics, and citizens. Surveys. Surveys that explored the views of Sofia's residents and busi- nesses on the quality of municipal public services and the investment climate were conducted. Sofia's Mayor Stefan Sofiansky takes questions at CDS stakeholder consultations, April 2002. Cities Alliance 2002 19 Citywide Slum upgrading is not a call for bigger projects. It Alexandra, Johannesburg Upgrading requires regulatory, institutional, and policy reforms, coupled with long-term strategies. T he endorsement by all UN Member Citywide strategies should have clear targets States of theAlliance's Cities and involve virtually all of the city's service Without Slums initiative in the providers, and must be coupled with effec- Millennium Declaration and the adoption of tive land management policies to manage "improved sanitation" and "secure tenure" as future growth and to prevent the formation the two indicators to measure progress in of future slums. achieving this goal have greatly empowered Alliance partners worldwide who are already striving to meet this goal. PERCENT OF URBAN POPULATION LIVING IN SLUMS The commitment to provide secure tenure 60% directly responds to a key causal factor of 50% poverty, social exclusion and the continued proliferation of slums all over the world.The 40% provision of secure tenure enables the poor to build their assets and income, and is 30% fundamental to distributing the benefits of economic growth. 20 Alliance partners in this effort include 10 organisations of slum dwellers, some of the world's major cities, and national authorities 0 Africa Asia & LAC Europe Northern who are committed to establish the environ- 56% Oceania 26% 4% America ment necessary to support nationwide slum 37% 1% upgrading.The challenge of scaling up slum Estimated from the SecureTenure Index,UN-HABITAT,2002 UN-HABITAT estimates that there are a total of 840 million slum dwellers 20 Cities Alliance 2002 worldwide. CitiesAlliance inAction:Citywide Slum Upgrading Cities Alliance's Approach to Citywide Upgrading: Key Principles v The urban poor already produce the housing they can afford. Both the poor and their housing are an asset, not a liability, for developing cities. The urban poor are already solving the housing challenge. Our job, as their partners, is to help them do it better, faster, and more permanently, and not to hamper their efforts. v City governments and their partners should facilitate housing production by the poor through broad, participatory strategic planning in advance of slum construction (this is CDS), and the provision of basic services to slum areas after they are built (this is citywide slum upgrading). v It is essential for national governments to encourage and support the efforts of city governments (not substitute for them) to facilitate the production of housing by and for the urban poor. This approach needs to be implemented consistently across ministries responsible for budget and finance, planning, local government, public works, and environment ... as well as ministries directly responsible for housing. David Painter Director,Office of Urban Programs,USAID As presented at Casablanca,Morocco, June 2002 at INTA's "Habitat for the Poor:Policy for Reducing Urban Poverty"seminar. Security of tenure is a fundamental requirement for the progressive integration of the urban poor in the city.... It guarantees legal protection from forced eviction... and is one of the most important catalysts in stabilising communities, improving shelter con- ditions, reducing social exclusion and improving access to basic urban services. UN-HABITAT:Global Campaign for SecureTenure, Concept Paper (1999). Cities Alliance 2002 21 CitiesAlliance inAction:Citywide Slum Upgrading Mexico New house supply in the formal market is almost entirely new developer-built units for Scaling Up Upgrading and the middle class. Managing Informal Urban Growth in the Metropolitan This new housing initiative of the govern- Mexico City Area ment will require an estimated 21,000 hectares of land annually.The significance of this figure is highlighted by the Ministry of Social Development's (SEDESOL) estimate that only 32,000 hectares of land are cur- rently available ­ enough for some eighteen months of construction. Of the land avail- able for urban use, only 9 percent has basic services.To complicate matters further, a significant proportion of the land is held by property developers interested in middle- to high-income development. Informal housing on the urban periphery in the State of Mexico. The Government of Mexico has made the provision of low-income housing a major pri- ority in its five-year development plan, targeting the creation of 750,000 units by 2006.An estimated 4.6 million Mexican families are considered under-housed, and an additional 3.5 million households live in poor quality stock requiring remedial action, from repair to replacement.Approximately 1.1 million housing units are needed to alleviate the extreme overcrowding in existing stock. Added to this existing backlog, the forma- tion of new households creates demand for an additional 750,000 units annually.The defining feature of these new households is their poverty: more than half earn less than three minimum wages (equivalent to US$13 per day, at January 2002 exchange rate), and are unable to access the mortgage market to finance the purchase of a finished house. The State of Mexico identifies its poorer urban municipalities whose `Basic Needs' are not met in terms of urban infrastructure, social services, municipal services and income. Source:Centro de laVivienda y Estudios Urbanos A.C. 22 Cities Alliance 2002 CitiesAlliance inAction:Citywide Slum Upgrading A major component of this assistance, managed through theWorld Bank and Metropolis, has focused on the related issues of land markets, urban infrastructure, and micro-finance, with an emphasis on the relationship between informal land delivery systems and statutory authority.The aim is to move to a citywide strategy. In the words of the local manager of the project: The most important lesson so far is related to the importance of defining an integrated set of policies that tackles the problems associated with the poor. Traditionally the State of Mexico has alleviated the effects of poverty with isolated programs at state or regional levels.From this (Cities Alliance) Logging on: the original Web Concept created by slum dwellers in their efforts to assistance we have clearly seen the importance of access electric energy. State of Mexico. defining actions that coordinate the state efforts with other stakeholders.It will not solve poverty, Mexico's urban land market has three major but will start new paradigms. obstacles: First, cumbersome procedures result in long lead times. Second, there is \ widespread jurisdictional overlap over urban land, leading to legal uncertainty.Third, the standards regime is inflexible and largely inappropriate to the needs of the poor.These obstacles severely limit the supply of urban land accessible to the poor. CitiesAlliance assistance to the State of Mexico is expected to have a direct bearing on policy options in the metropolitan areas of Mexico City andToluca, with a combined concentration of some 10 million living in poverty. Like so many other cities in the developing world, the lack of basic informa- ` tion and accurate statistics hampers the policy process. Cities Alliance 2002 23 CitiesAlliance inAction:Citywide Slum Upgrading São Paulo original favela.The current city management has a clear idea as to why the impact and sus- Bairro Legal Programme tainability of previous interventions were The metropolitan region of São Paulo limited.As observed in its proposal to the comprises 41 municipalities with a total pop- CitiesAlliance: ulation of some 16.6 million, of which 60 percent live in the city of São Paulo itself.The Most of the housing and urban development inter- metro region accounts for more than 18 per- ventions undertaken by the municipality of São cent of Brazil's GDP and 15 percent of its Paulo in recent years focused on restricted areas and industrial output. had a limited,project-based character that made them unable to have citywide impacts.The imple- Between 1973 and 1999, favela residents mentation of such projects brought about partial increased from 72,000 to 1.9 million, or from improvements.They did enhance the quality of urban 1 percent of the city's total population to 13.3 space in these regions and improve the living envi- percent.Another 38 percent lived in loteamen- ronment and daily life of the poor,but not at a scale tos clandestinos ­ almost 3,000 informal commensurate with the need.Too many people subdivisions lacking infrastructure that house remained marginalized,without access to quality the poor, alongside São Paulo's 612 main fave- social services and urban equipment and,above all, las, or slums. In all, over half of the population without access to the legal,formal city. of the world's fourth-largest city now live in informal settlements and slums. Paradoxically, The real challenge is to face up to the precariousness in this same city, there are 420,000 empty of the tenure and ownership of shelter on the part of homes, 27 percent of which are in the central those who are physically and socially excluded.In region with ready access to infrastructure and order to do this,what is really necessary is a para- a wide range of urban services. digm shift:a project-based approach that is based on the production of new housing.Production and The City of São Paulo has selected the ten the extension of urban infrastructure networks,con- most deprived neighbourhoods for an inte- ceived and implemented in a sector-based way by the grated, area-based approach to citywide slum various line departments of a municipal administra- upgrading.The Bairro Legal Programme, tion,must be replaced by a programmatic,integrated launched at the end of 2001, will commence approach. with interventions in four areas of the city to target close to 790,000 people: Paraisópolis The Bairro Legal Programme is being (42,900), JardimAngela (260,203), designed by the Housing and Urban Brasilandia (246,932), and CidadeTiradentes Development Secretariat of the City of São (239,938). Paulo, and CitiesAlliance support for this programme includes theWorld Federation of The city intends to draw on the lessons of United Cities (UTO), theWorld Bank, and previous urban upgrading interventions, the Governments of France and Italy.The including the large-scale Guarapiranga Alliance is contributing US$300,000, match- programme, as well as the unsuccessful ing the city's own contribution to programme "verticalisation" experience that focused on design. For the long-term development of the the resettlement of slum dwellers to new programme, the City of São Paulo has budget- high-rise apartments built in the area of the ed US$189 million. 24 Cities Alliance 2002 CitiesAlliance inAction:CitywideSlum Upgrading Cities Alliance 2002 25 CitiesAlliance inAction:Citywide Slum Upgrading "In the future, São Paulo without slums" São Paulo City Secretary for Housing and Urban Development, PauloTeixeira, talks to "Jornal daTarde" (June 10, 2002) about the Bairro Legal Programme. Jornal daTarde: Mr.Teixeira,will the slums really disappear? PauloTeixeira,São Paulo City Secretary for Housing and Urban Teixeira: Our plan has as its main goal making Development a neighborhood out of a slum through urbanisa- tion:laying out streets,paving them and equipping Jornal daTarde:Will the Department them with curbs and water drains,installing organise financing on its own? lights,basic sanitation and public equipment,as well as regularising land ownership.For the first Teixeira: The resources are being allocated stage,14 areas were selected.Another aspect of the under the city budget.The money will come from project is working on violence.There is a superposi- foreign,federal,state,and municipal sources.We tion between unacceptable housing conditions and will also be carrying out a decoding of the IBGE violence.... (the Brazilian Statistics Institute) census so as to, on the one hand,quantify slum dwellers,and,on Jornal daTarde: Laying out squares and the other hand,create a plan that would provide streets will require the eviction of some dwellings. us with a timeframe and a cost range to achieve a How will that be done? city without slums. Teixeira: Since many of those neighbourhoods have no formal ownership registration,any family evicted will have the right to a similar dwelling in the same region,to be provided by the Housing and Urban Development Secretariat.After com- pensation and the cost of a new dwelling are computed,any remaining balance will be financed for the families.This financing system will also apply to families who will have their houses upgraded. 26 Cities Alliance 2002 CitiesAlliance inAction:Citywide Slum Upgrading Jornal daTarde: Who will negotiate with the what the city's Master Plan defines.A share of the slum people?Will there be any form of registra- money raised through the sale of building poten- tion? tial will be allocated to an urbanisation fund,and part of this money will be given to slum upgrad- Teixeira:The Secretariat has already begun to ing.As soon as we find resources,we will create a register families and to settle plots for the existing building timeframe. dwellings,through surveying and photographs.That would also,as a matter of fact,serve as a barrier Jornal daTarde: Will there be any citywide against any outsiders taking advantage of the plan. policy to fight the creation of new slums? This stage,the diagnosis,is already complete.The second one,involving the design work itself,is start- Teixeira: It is already being implemented by ing this June.The designer will present his/her regional administrators who block any new settle- study,proposing a set of different solutions,and ment or clandestine occupation in their areas.It is then we will consult with the people,who will a combined action,because,at one stroke,the exist- choose which plan is to be implemented. ing problem is being fought and the formation of new irregular settlements is avoided.The private Jornal daTarde: Mr.Secretary,how long will sector is also invited to fight for its own rights. it take until a slum such as Jaguaré is turned into What does that mean? Plenty of slums and clan- a neighborhood? destine settlements arise in private areas neglected by their owners.We will invite landowners in urban Teixeira: That is not the point.The main prob- expansion areas to...reach an agreement with us lem is resource-related.With money,there are no and create new regular settlements through land problems in the work front.The main thing is parceling. giving priority to the slum upgrading programme. And Mayor Marta Suplicy is doing that.This provides a key thing,the involvement of forces that can channel resources.To that end,we must see São Paulo, Brazil Cities Alliance 2002 27 CitiesAlliance inAction:Citywide Slum Upgrading Nouakchott, Mauritania Mauritania The Government of Mauritania is strongly committed to reducing urban poverty, sig- Slum Upgrading and Poverty naled not least by the prominence of urban Alleviation development in its national Poverty An estimated 61 percent of Mauritania's Reduction Strategy Paper (PRSP): a strategy population of 2.6 million live in urban areas, whose implementation contributed signifi- a dramatic increase from just four decades cantly to the country's recent eligibility for ago, when less than 4 percent of the popula- tion was urban.The population of the two largest cities, Nouakchott and Nouadhibou, Explosive urban growth in Nouakchott, Mauritania has grown fivefold in 20 years, far outpacing the capacity of both state and municipal gov- 700 ernments to extend necessary urban 600 infrastructure and services and to generate 600 employment. Poverty has accompanied this 500 393 rapid urbanisation.An estimated 35 percent 400 of the urban population lives a hand-to- ('000) 300 mouth existence.The urban poor reside in 200 substandard squatter settlements, lacking 134 basic infrastructure and services. In 100 40 Nouakchott, close to 40 percent of the pop- 2 4 0 ulation lives in slums. 1957 1959 1970 1977 1988 2000 Source: Commissariat aux Droits de l'Homme à la Lutte contre la Pauvreté et à l'Insertion, July 2002. 28 Cities Alliance 2002 CitiesAlliance inAction:Citywide Slum Upgrading debt service relief under the enhanced to address these issues.A specialised poverty Heavily Indebted Poor Countries (HIPC) institution, the Commissariat aux Droits de initiative. l'Homme,à la Lutte contre la Pauvreté et à l'Insertion (CDHLCPI), was created and has Improving the living conditions of the urban already initiated participatory pilot opera- poor and reducing the proliferation of slums tions for slum upgrading in Nouakchott. are central to the government's strategy to This includes a micro-credit programme for alleviate urban poverty. In recent years housing and income-generating activities, central and local governments have demon- known as theTwize (or solidarity) pro- strated strong commitment to finding gramme, which CDHLCPI has been adequate solutions and mobilising resources implementing with support from local and Mauritania set targets for improve- ments in the lives of its urban poor Progress expected through a ten-year urban development programme will be measured by, among others things, increased access to basic services, increased access to credit for and improve- ments in shelter and sanitary facilities, increased involvement of CBOs in decision-making and service delivery, and simplified and accelerated procedures for tenure regularisation. Specific targets include: v Dramatic improvements in the lives of at least 163,240 slum dwellers by 2005, a total of 281,590 slum dwellers by 2010, and 220,000 other urban inhabitants; v Increased access to credit for improved shelter and facilities to result in 7,500 houses by 2005 and 15,000 by 2010; v Employment generated or conditions of work improved for 40,000 workers; v Affordable serviced land and/or shelter for 100,000 inhabitants to prevent development of new slums. Slum areas of Nouakchott and where priority investments have been planned. Source:Mauritania - Urban Development Program,Project Appraisal Document,26 September 2001, Cities Alliance 2002 29 World Bank. CitiesAlliance inAction:Citywide Slum Upgrading orities and city growth.The govern- ment will clarify the responsibilities for all aspects of urban development among the central government, local governments, communities, and the private sector. Municipalities, particu- larly Nouakchott and Nouadhibou, and CBOs are expected to have a more active role in infrastructure planning and delivery. Increased government transfers to municipalities will strengthen their management and investment capacities and allow them to earmark funds to promote commu- nity and private sector involvement. Pilot CDS elaborated for Nouakchott, Nouadhibou, and Kaedi have been very successful and will be extended to A slum in Nouakchott's Arafat district. other cities and the regional capitals. international NGOs.The government plans to extend this programme to all poor areas. Vietnam The government's national urban strategy, built on priorities identified through partici- Slum Upgrading in Four Cities patory processes, has resulted in a ten-year in Vietnam urban development programme to support Poverty inVietnam has traditionally been Mauritania's central and local governments in considered as largely a rural phenomenon: improving living conditions and generating the urban population in 2000 was estimated employment in the country's main towns, at 18 million, accounting for 23.5 percent of especially in slums.The US$99 million pro- the total population. However, this figure is gramme, funded by the government, the expected to increase to 46 million by 2020, World Bank, theAfrican Development Bank, largely as a result of the current rural-urban AfD and KfW, also aims to strengthen the migration rate of some 3-4 percent per institutional framework and capacity for annum. urban and land management. Rapid economic and urban growth has Basic urban structure plans and investment resulted in significant disparities, particularly programmes have been completed for 13 uneven development of urban infrastructure cities, including Nouakchott and and services which, in turn, has led to very Nouadhibou, through a participatory poor housing and infrastructure provision process.These plans are expected to assist for the urban poor. municipalities in identifying investment pri- 30 Cities Alliance 2002 CitiesAlliance inAction:Citywide Slum Upgrading The poor tend to settle in marginal urban Many low-income neighbourhoods are char- areas, isolated from economic activities and acterised by such housing, compounded by with little infrastructure. On the urban poor drainage and regular flooding. Sanitation periphery, makeshift private accommodation is a major concern, as many of the public has been built without planning permission. toilets are dilapidated and unusable. Many Dwellings are often only one room, in very inhabitants have no access to toilets and poor condition, and referred to colloquially dispose of human waste into plastic bags or as "rats' nests". In Ho Chi Minh City and Can directly into rivers and canals. Tho many poor have settled in the city centre, often alongside the city's canals, and Until the 1990s, housing was provided by the have been targeted for clearance by the city state to state employees.There was little authorities. emphasis on comprehensive urban planning, resulting in inadequate public utilities and sanitation in many cities. In 1991, the Housing Ordinance recognised private own- ership of housing, which led to a housing boom. However, housing development has been dominated by production for the higher end of the market, leaving the poor to fend for themselves.The poor thus either continue to occupy dilapidated state housing, or rent, or squat on unoccupied land and build what- ever form of shelter they can afford. Much of this housing is outside the planning and building control system and is usually not adequately serviced. In 1998, the government produced a draft National Housing Strategy through 2010, which attempted to place housing within a coherent urban planning framework. Although the strategy is still in draft form, it has nevertheless prompted larger cities like Ho Chi Minh City and Haiphong to move ahead and develop their own housing programmes. The CitiesAlliance is supporting work being undertaken by the Ministry of Construction, with theWorld Bank, UN-HABITAT, UNDP, and a number of otherAlliance partners working through the Urban Forum.The objective is to establish a national urban upgrading programme. Haiphong slums Cities Alliance 2002 31 CitiesAlliance inAction:Citywide Slum Upgrading The Alliance is funding studies which s Haiphong, a major port centre; include an assessment of constraints faced by the urban poor in housing and infrastruc- s Nam Dinh, one of the main urban cen- ture; a review of recent and ongoing urban tres in the high-density, low-income upgrading programmes inVietnam and Red River Delta; comparison with international best prac- tices; the development of a national policy s Ho Chi Minh City, the largest city in statement on the provision of shelter and the country, experiencing significant access to basic infrastructure services for the immigration; and urban poor; and the development of a s Can Tho, the centre of trade for the detailed action plan for a selected city (Can Mekong Delta, experiencing strong Tho) based on the draft policy statement. growth in the manufacturing and These studies are also being used by the tourism sectors. Government in the preparation of a national upgrading programme, the first component of which will be supported by a proposed World Bank urban upgrading project cover- ing the following four cities: Can Tho 32 Cities Alliance 2002 Railroad track through Manila is lined with shacks housing tens of thousands of squatters. Metro Manila, Philippines, 1999. Metro Manila settlers under the Japan Fund for Poverty Reduction (JFPR).Two innovative US$1 Going to Scale million grant-financed initiatives are under- in Metro Manila way: the first is in Payatas, Quezon City, site The failure to cope with rapid growth in of the tragic garbage slide in 1999, where Metro Manila, a megacity of more than 12 525 families are undertaking a community- million people, has given rise to a host of led urban upgrading programme assisted by problems on a mega-scale: polluted rivers, theVincentian Missionaries for Social smog-choked air, and a proliferation of Development.The second initiative is in slums. Some 35 percent of the city's popula- Muntinlupa, along the heavily invaded tion, or 4 million people, are living in Philippine National Railroad right-of-way, poverty and informal slum settlements, where 565 families are working with the many of which serve as gateways to a con- Muntinlupa Development Foundation to tinuous influx of poor rural migrants.The voluntarily relocate to a safer, off-site loca- demand for services has simply over- tion. Both efforts involve sustainable whelmed the capacity of Metro Manila's 17 revolving funds, and will be replicated in local governments. surrounding communities over time.A third JFPR project aims to develop strategic pri- The Asian Development Bank (ADB) is vate sector partnerships for urban poverty piloting new approaches for on-site urban reduction in Metro Manila with Philippine upgrading and off-site relocation of informal Business for Social Progress. Once Cities Alliance 2002 33 CitiesAlliance inAction:Citywide Slum Upgrading approved, the programme will leverage US$8 million in assistance from JFPR and leading Philippine corporations for slum communities throughout the city, to include training, capacity-building, and the provision of revolving funds for financing home improvements, urban services, and microenterprise development. These activities are providing important les- sons in the design of a Metro Manila Urban Services for the Poor Project (MMUSP), which includes the formulation of a 15-year metro-wide urban upgrading strategy in keeping with the CitiesAlliance Cities Without Slums action plan.ADB is assessing the feasibility of a proposed US$50 million loan in early 2003 for this project, part of a larger US$200 million urban upgrading pro- gramme. Under the proposed loan,ADB intends to invest in three integrated urban development subprojects on large tracts of vacant national government land, with the catalytic aim of triggering further invest- ments. Consideration is also being given to further scale up these activities by local authorities, NGOs, the private sector, and the communities themselves on a broad, metro-wide scale under the umbrella of the CitiesAlliance. The Manila Services for the Poor Project (MMUSP) involves the formulation of a 15-year metro-wide urban upgrading strategy in keeping with the Cities Without Slums action plan. 34 Cities Alliance 2002 CitiesAlliance inAction Financial Services The CitiesAlliance launched this research for the Urban Poor initiative as a lateral learning partnership with five networks of finance and housing F rom shacks on stilts in polluted waters institutions:Accion International, in Brazil to tin-roofed mud shacks in Cooperative Housing Foundation, Frontier slums in India, the poor are construct- Finance, Plan International, and MEDA; and ing their homes, one wall at a time. Faced with six development agency partners: Inter- with insecurity of tenure, the poor build American Development Bank, USAID,The tentatively and progressively.And even with World Bank, the International Finance tenure security, they build incrementally to Corporation (IFC), the Urban Management match their uneven income streams.Yet, Programme (UMP), and the Consultative despite the fact that in so many developing Group toAssist the Poorest (CGAP).The cities around the world a majority of the three institutions analysed under this initia- population lives in slums ­ 60 percent of tive include two banks ­ SEWA Bank of Nairobi's population, 82 percent of Lima's India and Mibanco of Peru ­ and FUNHAVI, population ­ and that most housing is built an NGO in Mexico. Policy and regulatory informally and progressively, the poor lack constraints for housing finance for the poor access to financial institutions and to finan- in Kenya, and a government-supported sec- cial products tailored to the way they build. ond-tier finance facility in Ecuador were also analysed.The intent is that these findings, In response to this problem, the Cities which will be disseminated widely, will Alliance launched the Shelter Finance for advance best practices, inspire replication the Poor Initiative to focus on an emerging and adaptation, and increase the availability and still very nascent practice of financial and affordability of shelter finance for the institutions providing housing loans to poor world's poorest households. For donor agen- clients on commercially viable terms.These cies looking to increase the access of the loans are distinct from mortgages in that poor to credit and to support financial insti- they are typically not for the purchase or tutions in their efforts to reach out to this construction of new units, but rather for market, this initiative will have distilled a set home improvement and progressive build- of practices and recommendations.The ing.They are being offered as a new product Shelter Finance for the Poor initiative is line by a generation of financial institutions funded by CitiesAlliance, CGAP, IFC, and that built their success on providing working USAID. capital loans to the urban poor, and are now looking to expand and diversify their prod- ucts to meet the needs and demands of their poor clientele. Cities Alliance 2002 35 CitiesAlliance inAction:Financial Services for the Urban Poor Initial operational impacts Shelter Finance for the Poor: Lessons from Experience The Alliance's Shelter Finance Initiative has Experiences and case studies analysed have already produced facilitated an informal network among prac- a number of lessons and raised critical questions for further titioners and development agencies which is exploration. already having operational impacts: Findings to date: s Accion International is introducing or expanding housing products in an addi- v Shelter finance loans tend to be larger and have longer terms than microenterprise loans; tional five institutions to increase the number of affiliated institutions involved v MFIs do not rely on land title as a guarantee for in housing loans from 6 to 11, and to progressive housing loans; eventually introduce the product line v Loans area largely made to individuals; throughout the 21 Latin American and African partner institutions in its net- v Shelter finance loans carry lower interest rates than traditional microenterprise loans. work. Outstanding issues for further analysis: s Housing micro-finance loans are being designed drawing directly on these find- v The institutional and macroeconomic factors that enable ings inWorld Bank operations in MFIs to successfully introduce shelter finance; Indonesia and the Philippines. v The level of construction assistance, if any, that should be provided by the MFI and how it should be priced; s The Alliance and the IFC are exploring the potential of a shelter finance facility v Locating sources of medium-term capital; extending medium-term local capital v Forms of tenure that can be used to increase access to loans to financial institutions engaged in shelter finance; housing finance for the poor. v Public-private partnerships for shelter finance delivery. s Sweden's SIDA is reviewing its housing portfolio and is developing guiding prin- ciples and policies for its housing micro-finance operations. Community-Led Infrastructure Finance Facility The Community-Led Infrastructure Finance support the scaling up of community-driven Facility (CLIFF) is a new finance facility slum development, rehabilitation, and infra- designed to increase the access of poor com- structure initiatives, in partnership with munities to medium-term sources of capital local authorities and the private sector in from the private and public sectors; the capi- poor towns and cities. tal is used for urban shelter and associated infrastructure, such as access to water, ener- gy, and sanitation facilities. CLIFF aims to 36 Cities Alliance 2002 CitiesAlliance inAction:Financial Services for the Urban Poor EMERGING EXPERIENCE CHALLENGES TRADITIONAL HOUSING FINANCE PARADIGMS Traditional Housing Finance Paradigm Emerging Experience s Finance must be for a complete housing s Low-income households are accustomed solution to a "progressive building" process s Loans large enough for a complete s "Progressive build" loans with market housing solution (> $5,000) must be rates of interest can more easily be cus- long-term and subsidized to be affordable tomized to households' capacity to repay for low-income households s Financing "stages" of a project with multiple, shorter-term loans rather than one larger, longer-term loan reduces interest paid by the household and risk for the lender s The interest rate is the key factor in s Access to capital for housing investment, households' decision to borrow simplicity, flexibility, and speed of disbur- sal are the primary factors in households' decision to borrow. Interest rates are important, but secondary s Low-income "housing" finance follows a s Low-income "housing" finance follows a paradigm similar to the mortgage finance paradigm similar to the micro-finance industry in NorthAmerica industry in many countries s Design, planning, and construction must s Households can manage portions of the be done by outside, technical experts to technical process on their own and still reduce the cost of the project and ensure achieve an acceptable level of quality the quality of construction s Households have a strong preference to make their own design decisions s Role for external technical expertise like- ly varies depending on the project and the household. Role is as a consultant s Primary role for outside expertise is in the design and costing phase s Investment in housing is s In many, though not all, cases housing "non-productive" investments directly generate additional income (e.g., rentals, additional space for home-based microenterprise) Source:Shelter Finance for the Poor Series:Micasa:Financing the Progressive Construction of Low-Income Families'Homes at Mibanco. Cities Alliance 2002 37 CitiesAlliance inAction:Financial Services for the Urban Poor Micasa clients improve and expand their homes progressively. The CLIFF will: grammes.TheWorld Bank will participate with DFID and other donors in the facility's governance. s provide bridging loans, guarantees, and technical assistance, both local and inter- national, to initiate medium-scale urban CLIFF will initially be introduced in India, rehabilitation in cities in the developing where there is considerable relevant world; experience. s work in partnership with CBOs and Activities for CLIFF will be implemented by NGOs who have a track record in Homeless International (HI), a UK-based delivery of urban rehabilitation; NGO, and its Indian partners, Society for the Promotion ofArea Resource Centres s seek to attract commercial, local, and (SPARC) and the National Slum Dwellers public sector finance for further Federation (NSDF). HI will make available schemes, thus accelerating or scaling up the response to the challenge of urban renewal. An initial financing contribution of US$10 million equivalent has been pledged by DFID, to be contributed over three years, of which approximately US$7.4 million equiv- alent will be for capital for a revolving loan facility.The balance will be for technical assistance, operating, and management costs. SIDA is considering becoming a co-financier, and USAID has expressed interest (for 2003) in making local currency guarantee funds available through its country pro- 38 Cities Alliance 2002 CitiesAlliance inAction:Financial Services for the Urban Poor Mibanco, Micasa distinctions: Micasa loans carry a one day for repeat borrowers. lower interest rate, allow for longer With almost 70,000 active borrow- terms (up to 36 months), tend to For Mibanco, the addition of the ers, Mibanco in Peru is one of the be slightly larger in size than Micasa product has been very posi- largest MFIs in Latin America. In Mibanco's typical microenterprise tive.After 12 months of operations, mid-2000, Mibanco expanded its loans, and are available not just to Mibanco has almost 3,000 Micasa product offering to include Micasa, microentrepreneurs, but also to clients and portfolio at risk greater a "progressive build" housing loan low-income, salaried employees, than 30 days on the Micasa portfolio product ­ that is, the loans are who are poorer than the microen- of 0.6 percent. Preliminary estimates designed to help households finance trepreneur clients. Micasa loans suggest that Micasa broke even on a projects to improve, expand, subdi- average US$916 over 11 months. free-cash-flow basis, including the vide, rebuild, or replace elements of Borrowers are not required to have initial systems investment, within their homes, rather than purchase legal title in order to obtain a loan nine months and, if it continues at or build a new home. and the guarantees used are gener- current levels, will generate a return on loan portfolio of between 7 and 9 The Micasa loan programme is very ally not mortgages, but more percent, significantly higher than similar to Mibanco's successful traditional microenterprise guaran- Mibanco's overall return on loan microenterprise lending methodol- tees such as co-signers or household portfolio of 3.4 percent. ogy, but with four important assets. Loan turnaround time aver- ages three days for new clients and SEWA Bank and the designed to meet the financing local NGOs, and deserves particu- Parivartan scheme needs of its clientele. Secured loans lar mention for its innovation and are backed by assets, such as jew- its potential contribution to strate- India's SEWA Bank was registered ellery or a lien on the client's fixed gies for slum upgrading worldwide. as a cooperative bank in May 1974. deposits held at SEWA Bank. Through the Parivartan scheme, The bank's initial capital came from Unsecured loans are backed by a which provides for the installation the contributions of approximately lien on the client's demand deposits of roads, electricity, and water, 4,000 members of the Self with the bank and guarantors. AMC provides US$170 per partici- EmployedWomen's Association SEWA Bank estimates that 50 pating household for slum (SEWA), a Gujarat-based registered percent of its portfolio is used for upgrading. Participating households trade union of poor women estab- housing. SEWA is a profitable bank, must provide a counterpart contri- lished in 1972.As of January 31, and has been profitable over the bution of US$43; they can either 2002, SEWA Bank's total outstand- past five years, with the exception borrow this amount from SEWA or ing portfolio was US$2,274,866, of of 2001, when the ratio dipped use SEWA Bank's facilities to save which US$913,086 (40 percent) slightly below 100 percent; howev- the required amount. SEWA Bank was housing loans.The number of er, the ratio is on track to be above has used the Parivartan programme active loans stood at 9,129, of 100 percent again in 2002. to expand its client base beyond which 3,677 (40 percent) were existing SEWA Union members and housing loans. SEWA Bank is the SEWA Bank is a key partner in sees it as an important source of only micro-finance provider of scale implementing the Parivartan future growth. Based on its per- in Gujarat, and one of two institu- scheme, a slum upgrading pro- formance, the Parivartan model is tions offering housing finance to gramme. Parivartan is an alliance of being scaled up throughout economically active poor people in SEWA Bank, the Ahmedabad Ahmedabad, in a linked effort Gujarat.The bank offers savings and Municipal Corporation (AMC), the funded by the CitiesAlliance. a wide range of loan products Mahila HousingTrust, and other Cities Alliance 2002 39 CitiesAlliance inAction:Financial Services for the Urban Poor use and maintain the facility. However, contractors are expected to provide a 10 percent bond and to prove that they can cover 10 to 25 percent of the start-up costs. This has proven to be a real constraint on community-based contractors who do not have access to this capital.They do get reimbursed at later stages. In this case, CLIFF would provide a guaran- tee to the Municipality which can substitute for the performance bond and may be suffi- cient to release start-up capital, or cover the performance bond through a guarantee, and provide a bridge loan to the community contractors for the start-up costs, to be repaid when municipal funds get released. Such an approach has already been negotiat- US$2 million in loan guarantees through its ed in Mumbai with UTI Bank, where a existing community guarantee operation. guarantee was provided to the Municipality SPARC, with the assistance of HI, will work for the performance bonds and start-up with community-based slum dwellers organi- costs for the construction of 220 sanitation sations to prepare packages for bridge loans facilities in Mumbai by slum dwellers. and loan guarantees, to be presented to tech- nical review and investment boards. Projects in India will primarily be for sanitation (e.g., toilet buildings) and housing (slum communi- The CLIFF model ty resettlement). v A local facility (CLIFF) provides pump-priming loans to a local NGO or CBO undertaking an infrastruc- Illustrative CLIFFActivity ture project; The Municipality awards contracts to com- v A commercial bank will loan funds munity organisations or individual to the NGO/CBO, backed by a contractors selected by community organis- guarantee from Homeless ers to implement sanitation projects in their International; settlements.Typically the facilities comprise v The pump-priming loan is repaid in 20 toilets, special facilities for children, a local currency to CLIFF, and the community hall that can be rented out, and bank loan is repaid at the end of accommodation for a resident caretaker. the community project (when municipal funds for the project are Each facility services 1000 people.The released), allowing the guarantee Municipality provides the cost of land and to be extended to new community construction, and the community pays to projects requiring the same financ- ing vehicles. 40 Cities Alliance 2002 CitiesAlliance inAction Learning and Knowledge Sharing W hile learning and knowledge sharing take place within the framework of allAlliance activities, the CitiesAlliance also supports a number of global and regional learning activities. During FY02 these included: s Sustainable Partnerships for City Development ­ Kolkata Public Policy Forum Kolkata, December 2001 The 2001 Public Policy Forum focused on strategies and partnerships for pro- poor city development.The forum was hosted by the Government of West Public Policy Forum participants hear from Kolkata slum dwellers. Bengal, and organised by the Asian Coalition for Housing Rights (ACHR) and Slum/Shack Dwellers International, with the support of DFID and in collab- oration with slum communities and NGOs of Kolkata and the Government of West Bengal.The forum brought together national and international experts, business leaders, governmental authorities, development agencies, NGOs, community organisations, slum dwellers, and members of civil society from 11 cities around India as well as 30 other countries.Among the key mes- sages emerging from the forum were the need to forge partnerships between government and civil society, to tackle urban poverty on a citywide basis, and to include the poor in planning process- es for sustainable city development.The National Slum Dwellers Federation and Public Policy Forum, Kolkata, India. Cities Alliance 2002 41 CitiesAlliance inAction:Learning and Knowledge Sharing ACHR led a session on constructive responses to eviction, which under- I am here on behalf of the slum dwellers of SDI and also scored the message running throughout on behalf of all the slum dwellers of the world to stand and the forum, namely, the significance of say ­ we are here to begin with a new partnership...Today secure tenure.The four-day event also featured site visits throughout Kolkata we are standing here after completing of more than and a model housing exhibition. 50,000 houses right from South Africa, Zimbabwe, Namibia, India, Cambodia, Thailand, etc. Beyond our own s CitiesWithout Slums session at theWorld Urban Forum strength we are building. We have already saved; our Nairobi,April-May 2002 women have saved more than US$50 million worth The CitiesAlliance and UN-HABITAT savings in our own slum settlements....So we have come jointly organised a session on Cities here as a group to say - we have strategies developed. Without Slums at the inauguralWorld Urban Forum held this spring in We know how to deal with the cities. We have dealt with Nairobi. Chaired by Somsook the city authorities. We have developed our own Boonyabancha and Jean Pierre Elong Mbassi, members of the CitiesAlliance's infrastructure for liasoning. We know what kind of Policy Advisory Board, the event includ- improvement we need in the slums. Is there anybody in ed a presentation by theWorld Bank, the world who can think about City Without Slums without based upon the results of a study financed by the Government of Norway, the participation of the slum dweller? No, No, it is NOT on the lessons learned in urban upgrad- possible. That is what you have seen in past years. We ing activities in tenAfrican countries. The session also included a presentation want all slum dwellers to participate in this process. Every by São Paulo's Housing Secretary time people think if the slum dweller comes we are describing his administration's strategies for citywide slum upgrading and by the coming here to beg. Certainly not. We are not come here Homeless People's Federation of to beg. Let's sit together. Slum dweller, the city authority Namibia on actions taken by poor com- and the bilateral...You need to have a partnership. We will munities themselves.The Alliance also supported the most lively event of the have a strategy we develop, we are the resource, we are World Urban Forum, a discussion on the assets. strategies to replace evictions with negotiated resolutions and voluntary resettlement. Jockin Arputham,President,Slum Dwellers International (SDI), World Urban Forum,Nairobi, 29 April 2002. 42 Cities Alliance 2002 CitiesAlliance inAction:Learning and Knowledge Sharing Fishermen attracted back to Ribeira Azul's bay as upgrading moves forward. Salvador de Bahia, Brazil. s Shelter Finance for the Urban will offer policy recommendations for Poor: Experiences and governments and donors, is also being Innovations prepared.These outputs are being finalised for dissemination through Washington,D.C.,April-May 2002 publication of the CIVIS series, chapters In collaboration with theWorld Bank's of a book financed by Fannie Mae and research programme on "Low Income USAID, incorporation in training Housing and Land Strategies", the Cities programmes for finance practitioners, Alliance hosted two seminars on the web access, and workshops. respective experiences of Mibanco in Peru and Funhavi in Mexico in provid- s SecureTenure for the Urban ing housing finance for the poor. Both Poor ­ Round Table Discussion case studies have been documented as Washington, D.C., May 2002 part of the CitiesAlliance's Shelter Finance for the Poor Initiative and are As part of ongoing international efforts two in a series of studies on this topic to meet the CitiesWithout Slums that will be disseminated in the third Millennium DevelopmentTarget, the quarter of 2002. Other studies examine CitiesAlliance hosted a round table on the experience of SEWA Bank in India, secure tenure ­ one of the two indica- a wholesale finance facility in Ecuador, tors adopted by the United Nations to and the policy and regulatory con- measure implementation of this target. straints to shelter finance in Kenya.A Convened byWorld Bank Managing synthesis of all the case studies, which Director Mamphela Ramphele and Cities Alliance 2002 43 CitiesAlliance inAction:Learning and Knowledge Sharing Executive Director of UN-HABITAT, Elements of a tenure AnnaTibaijuka, the round table heard regularisation policy presentations by four prominent mem- While local conditions need to bers of the International Research determine final policy choices, the Group on Law and Urban Space following steps should be considered: (IRGLUS):Alain Durand-Lasserve, v Prioritise occupancy rights, and Edesio Fernandes, Geoffrey Payne, and security of tenure; Martim Smolka. In addressing secure tenure, the panelists highlighted the v Promote records of land rights (including use rights) at local level, importance of a range of options that involving concerned communities; exist as alternatives to formal property rights and the granting of title ­ options v Develop appropriate regulatory that provide the protection of due legal frameworks for the regularisation of existing settlements and the devel- process as well as the opportunity to opment of new settlements for the build economic assets, both essential urban poor; elements of urban poverty reduction v Promote a wide range of tenure strategies.The presentations were based options to respond to the diversity on case studies from different parts of of needs within the broader the world, highlighting innovative community; tenure options for the urban poor that v Implement upgrading incrementally have already been implemented. in order to limit the effects of formal market pressure, and market evictions on informal settlements. s Towards Productive and Inclusive Cities: the Role of City Development Strategies - International Seminar Johannesburg, SouthAfrica were pre- sented by city officials and then Santo André, Brazil, June 2002 discussed among local, national, and More than 300 participants from local international organisations. Discussions governments, universities, research were enriched by bringing in the expe- institutes, civil society, and international riences of Milan, Italy, Barcelona, Spain, organisations gathered for two days of and LosAngeles, USA in participatory intense discussions on the changing per- strategic planning.A lively debate on the spectives on local and regional role of municipal governments in a local development.The CDS experiences of economic development strategy to seven cities were systematically com- reduce poverty was complemented by a pared and evaluated.Two years in the discussion on how to scale up local making, these CDS exercises were car- development strategies through capaci- ried out by UN-HABITAT and UMP, ty-building, research, and evaluation. In withWorld Bank funding through the the closing session, participants elabo- City Alliance.The experiences of Santo rated on the role of local and global André, Brazil, Cuenca, Ecuador, and partnerships in creating more inclusive and productive cities.The results of this 44 Cities Alliance 2002 CitiesAlliance inAction:Learning and Knowledge Sharing cities.The course is part of a wider ini- tiative currently being explored which seeks to marshal the intellectual and institutional resources of universities and practitioners in different parts of the world to strengthen the local knowl- edge base and build the cadre of experts needed to implement citywide and nationwide slum upgrading. s Addressing Urban Poverty: Guarapiranga, Brazil East Asian Responses Singapore, June, 2002 event and the role of CDS will be pub- Mayors and senior local and national gov- lished in a special edition of the Brazilian ernment officials from six EastAsian business magazine Livre Mercado. In addi- countries (Cambodia, China, Indonesia, tion, a publication of the seminar Mongolia, the Philippines, andVietnam) proceedings and all of the papers pre- joinedWorld Bank urban staff for an sented is under preparation.The event Urban Poverty LearningWorkshop in was organised jointly by the Agency for Singapore in June.The workshop was the Economic Development of the organised jointly by theWorld Bank and Greater ABC Area, Brazil; UN-HABI- Singapore's Ministry of ForeignAffairs to TAT; UMP; and the CitiesAlliance. exchange experiences and ideas on tack- ling urban poverty and discuss the public s Slum Upgrading Course interventions that have worked. Four par- Cambridge, Massachusetts, ticular areas emerged as central to the U.S.A., June 2002 reduction of urban poverty: local eco- nomic development for economic The CitiesAlliance joined forces with growth and job generation; land manage- the Massachusetts Institute of ment for providing security of tenure and Technology (MIT) in presenting a week- improving infrastructure services; social long course on slum upgrading, security for supporting access to social covering key issues such as land acquisi- services; and municipal capacity-building tion, tenure policies, and sustainable for good governance and the elimination financing. Participants included local of corruption.These issues were exam- partners from Alliance supported slum ined from varying perspectives, including upgrading activities in Brazil, Mexico, those of national governments, cities, and India, SouthAfrica, Cambodia,Vietnam, international donor agencies and devel- Philippines, and Madagascar. In addition opment partners. to formal coursework, participants made informal presentations on slum upgrading issues from their respective Cities Alliance 2002 45 CitiesAlliance inAction:Learning and Knowledge Sharing s Addressing CDS tions and other actors to document and Knowledge Gaps disseminate knowledge on projects, experiences, standards, and research The CitiesAlliance is supporting the findings on low-income housing and development of a CDS interactive web- slum upgrading.This information will be site to provide a platform for knowledge maintained in Portuguese on a Cities sharing and to facilitate further CDS Alliance website for Brazil.This will tool development.This CDS website is benefit the university's courses on slum being developed with local authority upgrading, which are currently being organisations to generate and dissemi- expanded, as well as the scaling up nate this information through their efforts which are underway in Brazil. networks.A working group of the local Alliance-supported CDS activities in authority members of theAlliance has China and Indonesia have similar strate- been established to facilitate this process gies to take advantage of the in-depth and to guide the International City knowledge of local universities while Managers Association (ICMA) which is helping them to build their curriculum developing the pilot phase of this effort. and train the cadre of experts who will be needed to sustain these initiatives. s Building National The Alliance is also establishing a part- and Regional Capacities nership with theArab Urban To help institutionalise the monitoring Development Institute (AUDI) to help and evaluation of CDS and upgrading strengthen city-to-city learning from the initiatives, the CitiesAlliance is encour- regional knowledge and analyses of suc- aging the engagement of universities and cessful slum upgrading and CDS urban institutes in the countries and experiences in the Middle East and regions where it is active.The North Africa region. University of São Paulo, for example, has proposed to organise a partnership of local and national Brazilian institu- 46 Cities Alliance 2002 Organisation See charter at Cities Alliance website, http://www.citiesalliance.org I n accordance with its charter, the governance and organisational structure of the CitiesAlliance includes a Consultative Group, a Policy Advisory Board and a Secretariat. Consultative Group The Consultative Group ­ theAlliance's board of directors ­ is responsible for setting the Alliance's long-term strategy, approving its annual work programme and budget, and reviewing achievements.The Consultative Group is composed of financial contributors to the CitiesAlliance Trust Fund and the political heads of the major global organisations of local authorities who have pledged their commitment to achievingAlliance goals. Prospective financial contributors may serve as Associate Members for a period agreed to by the Consultative Group.The Consultative Group is co-chaired by theVice President, Private Sector Development and Infrastructure, the World Bank; and the Executive Director,UN-HABITAT. Consultative Group meetings are held annually in connection with a global Public Policy Forum designed to share the lessons learned from experience and agree on policy orientations and stan- dards of practice in areas related to theAlliance's goals.The Consultative Group has also formed a five-member Steering Committee, made up of a subset of its members, to provide guidance to the Secretariat. Consultative Group Meetings s Berlin, December 1999: inaugural meeting, launch of CitiesWithout Slums action plan, and approval of Charter and 2000 work programme. s Montreal, June 2000: first Public Policy Forum on the dimensions of pro-poor urban policies, review of application guidelines and approval of CitiesAllianceVision statement. s Rome, December 2000: second Public Policy Forum on "Local Partnerships: Moving to Scale", approval of Charter amendments, 2001 work programme and procedures to establish Policy Advisory Board and Steering Committee. s Kolkata, December 2001: third Public Policy Forum on "Sustainable Partnerships for City Development", review of procedures for the independent evaluation of the CitiesAlliance, and approval of 2002 work programme. Consultative Group Members -- June 2002* Local Authorities s International Union of LocalAuthorities s Metropolis s World Federation of United Cities s WorldAssociations of Cities and LocalAuthorities Coordination Governments s Canada s France s Germany s Italy s Japan s The Netherlands s Norway s Sweden s United Kingdom s United States Multi-lateral organisations s Asian Development Bank s UN-HABITAT s World Bank * Associate members that have attended meetings of the Consultative Group include: the African Development Bank, Austria, Denmark, the European Commission, Finland, Spain, the United Nations Development Programme, UNICEF and the International Labour Organization. Cities Alliance 2002 47 Organisation Policy Advisory Board The Alliance's Policy Advisory Board is composed of eminent urban experts from each region.They provide guidance to the Consultative Group on key strategic, policy, and regional issues and support the implementa- tion of Alliance activities.The composition, terms of office, and operating procedures for the Policy Advisory Board were established by the Consultative Group at its meeting in December 2000.The board meets twice a Policy Advisory Board members, Sheela Patel and Somsook year and is composed of eight members who serve two- Boonyabancha in Kolkata year terms on a rotational basis. Six members were nominated initially (two from Africa, two from Asia, one from Latin America and the Caribbean, and one from the North).The board's two remaining members will be nominated by the Consultative Group from theArab States and Eastern Europe. The Policy Advisory Board held its first meeting June 11­12, 2001, at the United Nations headquarters in NewYork, on the occasion of the GeneralAssembly's special session on Istanbul+5. In December 2001, the Policy Advisory Board took part in both the Public Policy Forum and the Consultative Group meeting in Kolkata. During this meeting, board members challenged theAlliance to move into innovative operations on the frontier of development cooperation.The two members of the board from Asia took the lead in organising the 2001 Public Policy Forum, which brought together participants from 11 cities around India and 30 other countries, including government officials, national and international experts, NGOs, slum dwellers, and members of civil society. Policy Advisory Board Members -- June 2002 The board brings together civic leaders and policy advisors with a formidable range of expert- ise in both the public and private sectors which spans the leadership of CBOs, NGOs and their networks, local authority organisations, community banks, community savings and credit schemes, commercial banks, and public sector financial institutions.What they have in common is practical knowledge and political experience in working with poor cities and the cities' poor world-wide. Somsook Boonyabancha is Director of the Community Organisations Development Institute of the National HousingAuthority ofThailand;Advisor to the Crown Property Bureau on slum improvement and land-sharing; and Secretary General of theAsian Coalition for Housing Rights, a regional coalition of NGOs, community organisations, and professionals based in Bangkok,Thailand. Mary Houghton is President and Director of Shorebank Corporation in Chicago, USA, a US$1.1 billion asset commercial bank holding company organised to implement community development strategies in targeted urban neighbourhoods and rural areas, and advisor to private banks and micro-credit lending institutions in developing and transition countries. 48 Cities Alliance 2002 Organisation Akin L. Mabogunje is Executive Chairman of the Development Policy Centre, Ibadan, Nigeria; Chairman of the Board of Trustees, Ijebu-Ode Development Board for Poverty Reduction; and an internationally renowned African development scholar who has published and lectured widely on urban management, rural development, and spatial perspectives in the development process. Jean Pierre Elong Mbassi is Coordinator of the Municipal Development Programme,West and CentralAfrica, based in Cotonou, Benin; SpecialAdvisor to the Union ofAfrican Cities; and an experienced practitioner in urban management and slum upgrading. Sheela Patel is founding Director of the Society for the Promotion ofArea Resource Centres in Mumbai, India, working in alliance with the National Slum Dwellers Federation and Mahila Milan in the federation of community-based organisations of the urban poor and the promo- tion of women's savings and credit schemes as a means to community mobilisation. RichardWebb is the President of the Central Bank of Peru; former President of Banco Latino in Lima, Peru; former Director of the Instituto Cuanto; and a widely published scholar on public policy, income distribution, poverty, and economic reform. Secretariat The Secretariat is a small team housed in theWorld Bank that carries out theAlliance's mandate and manages its operations. Secretariat Staff -- June 2002 Manager, Mark Hildebrand Senior Urban FinanceAdvisor, Mohini Malhotra Senior Urban UpgradingAdvisor, William Cobbett Senior CDSAdvisor, Peter Palesch ProgrammeAnalyst, Andrea Merrick Resource Management Officer, Kevin Milroy Resource ManagementAssistant, Françoise Aubry-Kendall ProgrammeAssistant, Karen Burke Regional Advisors Latin America and the Caribbean, Ivo Imparato SouthAsia, Alison Barrett Cities Alliance 2002 49 Financials Scaling up to Meet are particularly needed in regions where the FinancialTargets process of decentralisation ­ and thus the capacity of cities and civic groups to partner he CitiesAlliance met its initial T in the development process ­ is less three-year funding target of US$40 advanced. million during FY02, with US$42 committed as of June 2002. In response to this need, a Sub-Saharan Africa Facility has been proposed by Norway The Alliance is now mobilising for the goal to support the efforts of partners in the of US$115 million in grant support, which region (national and local authorities, civil is targeted in the CitiesWithout Slums society) to design and implement pro- Action Plan for the 2000-2005 period. grammes of action and to set local targets as Meeting this goal will require bridging a part of the CitiesWithout Slums initiative. financial gap of US$25 million per year This facility would provide Alliance mem- over the next three years. bers with an efficient vehicle for earmarking assistance within the framework of the To provide more options forAlliance mem- Alliance's existing strategic approach, work bers to expand and leverage their programming, governance, administration, commitments towards theAction Plan goals, and reporting protocols. Preliminary discus- Alliance members are considering the estab- sions are also underway on a facility to assist lishment of more open and flexible towns and cities in the Middle East and mechanisms and facilities.The Community- North Africa region to carry out CDS. Led Infrastructure Finance Facility (CLIFF) is the first of these facilities approved by the Consultative Group in FY02. Such facilities Progress in Meeting Cities Without Slums Grant Assistance Targets $150 $100 $50 $ 0 2000 2001 2002 2003 2004 2005 CWS Action Plan 6-YearTarget Cities Alliance Commitments to Date 2000-2005 Targets: US$115 million in grant assistance Cities Alliance Commitments to Date*: US$42 million * Includes Italy's US$5.0 million non-core contribution to the Salvador,Bahia,Brazil slum upgrading initiative, and the U.K.'s US$10 million non-core contribution for CLIFF. 50 Cities Alliance 2002 Financials SOURCES OF FUNDS FY00-FY02 (Unaudited) (U.S.dollars as of 30 June 2002)* Summary Pledges Paid-In Core Funding 18,400,000 9,872,053 Non-Core Funding 18,312,000 2,624,714 Secretariat Funding 5,295,000 4,172,152 Total Funding 42,007,000 16,668,919 Core Funding Pledges Duration Paid In** Asian Dev. Bank 250,000 2002 0 Canada 500,000 2000-2001 502,717 France 500,000 2000, 2002 243,184 Germany 1,000,000 2000-2003 373,233 Italy 950,000 2000-2002 713,207 Japan *** 1,750,000 2000-2002 1,500,000 The Netherlands 2,250,000 2000-2002 2,250,000 Norway 750,000 2000-2002 499,215 Sweden 1,250,000 2000-2004 468,063 United Kingdom 6,000,000 2000-2005 2,072,434 United States 750,000 2000-2002 500,000 World Bank 2,450,000 2002-2003 750,000 Total Core 18,400,000 9,872,053 Secretariat Funding**** World Bank 2,950,000 2000-2002 2,950,000 UN-HABITAT 1,107,000 2000-2003 772,152 Other 1,238,000 2001-2005 450,000 Total 5,295,000 4,172,152 Non Core Funding***** Asian Dev. Bank 420,000 2002 0 Italy 5,475,000 2001-2003 1,424,714 Japan 1,250,000 2000-2002 500,000 United Kingdom 10,467,000 2001-2005 0 World Bank 700,000 2001 700,000 Total Non-Core 18,312,000 2,624,714 * Fiscal year covers the period July 1 to June 30. ** Amounts may vary from amount pledged due to exchange rate fluctuation. *** Japan's FY00 included $750,000 earmarked for Asian CDS activities,but this contribution is reflected here as part of Core Funding since the funds were programmed as part of the regular CoreWork Program development. **** Secretariat funding includes in-kind funding for staff secondments from UN-HABITAT,Germany and U.K. ***** Non-Core funding is earmarked for specific region or type of activity. Italy earmarked $5,000,000 for Salvador,Bahia,Brazil slum upgrading programme (including $2,500,000 for technical assistance) and $475,000 for Latin America and Caribbean activities; Japan for Asian CDS networking activities;DFID $10,000,000 for CLIFF,$400,000 for China CDS,and $67,000 for Kolkata PPF;andWorld Bank $700,000 (FY01) for United Nations partnerships. The ADB's Non-Core funding will be 51 administered by the ADB as a parallel contribution. Financials USES OF FUNDS FY00-FY02 (Unaudited) (U.S.dollars as of 30 June 2002) Summary FY02 Cumulative Allocations Disbursements Allocations Disbursements Core Activities 3,941,850 3,134,003 12,509,150 5,291,060 Non-Core Activities 10,967,000 617,995 17,142,000 1,747,247 Secretariat 1,543,000 1,656,562 4,210,000 4,155,562 Total Uses of Funds 16,451,850 5,408,560 33,861,150 11,193,869 Approvals byType of Activity FY02 Cumulative Core Funds Non-Core Funds Core Funds Non-Core Funds City Development Strategies 1,701,785 900,000 3,921,585 1,600,000 Scaling up Upgrading 1,865,065 10,000,000 4,989,065 15,000,000 Both CDS & Upgrading 375,000 67,000 3,598,500 542,000 Total Approved Grants 3,941,850 10,967,000 12,509,150 17,142,000 Approvals by Region FY02 Cumulative Core Funds Non-Core Funds Core Funds Non-Core Funds Sub-SaharanAfrica 1,364,640 0 2,786,640 0 Asia 1,135,065 900,000 4,163,065 1,150,000 E. Europe & C.Asia 0 0 399,800 0 Latin America & Caribbean 917,145 0 2,615,645 5,475,000 M. East & N.Africa 150,000 0 575,000 0 Global/ Multi-Regional 375,000 10,067,000 1,969,000 10,517,000 Total Approved Grants 3,941,850 10,967,000 12,509,150 17,142,000 Secretariat Expenditures FY02 FY01 FY00 Cumulative Operational: Secretariat Staff 625,295 527,215 196,000 1,348,510 Consultants, Other Labour 70,819 104,000 219,000 393,819 Travel 208,708 117,000 121,000 446,708 Other Costs 71,926 72,000 390,000 533,926 Sub-Total 976,748 820,215 926,000 2,722,963 Management & Administration: Secretariat Staff 533,784 428,785 297,000 1,259,569 Rent, Computing, Other Costs* 146,030 7,000 20,000 173,030 Sub-Total 679,814 435,785 317,000 1,432,599 Total Secretariat Costs 1,656,562 1,256,000 1,243,000 4,155,562 * FY01 and FY00 rent and computing costs were incorporated as part of staff payroll costs. 52 Cities Alliance 2002 Financials APPROVED PARTNERSHIP ALLOCATIONS (U.S.dollars as of 30 June 2002) Allocation Start Date Country Activity Title Amount (US$) SUB-SAHARAN AFRICA REGION FY02 380,640 finalising Burkina Faso CDS and Local PRSPs for the Local agreement Governments of Bobo-Dioulasso, Banfora and Ouahigouya FY02 249,000 Jun-02 Ethiopia AddisAbaba CDS 0 cancelled Kenya Nairobi CDS and Upgrading of Informal Settlements FY02 240,000 Jul-02 Kenya Collaborative Nairobi Initiative on Slum Upgrading Policy Frameworks 152,000 Sep-00 Madagascar Slum Upgrading and Community Development in Four Major Cities:Antsirabe, Antsiranana, Mahajanga andToamasina 286,000 Jun-01 Madagascar CDS forAntananarivo - Infrastructure Develop ment, Urban Services Improvement and City Poverty Strategy 75,000 completed Mauritania Slum Upgrading and Urban Poverty Alleviation Jun-01 FY02 495,000 Jul-02 Mozambique Slum Upgrading andVulnerability Reduction in Flood Prone Cities/Towns in Mozambique 254,000 Nov-00 Nigeria Scaling up Upgrading through a CDSApproach in Karu 100,000 completed Regional Regional Roundtable on Upgrading Low Oct-01 Income Settlements inAfrica 165,000 completed Rwanda Kigali Economic Development Strategy May-02 350,000 completed SouthAfrica Johannesburg City Level Comprehensive Mar-02 Development Framework 40,000 completed SouthAfrica Preparation of Southern Africa CitiesAlliance Mar-02 Cities Alliance 2002 53 Financials Allocation Start Date Country Activity Title Amount (US$) ASIA REGION FY02 500,000 Sep-01 Asia regional City Networking and Investment Marketplace Development Initiative in Asia 150,000 completed Asia regional Asian CDSWorkshop 2000 Dec-00 0 cancelled Bangladesh Khulna: Options for Sustainable Upgrading Jan-02 185,000 Mar-01 Cambodia Scaling up Community-Driven Development Process in Phnom Penh 500,000 Oct-00 China Metropolitan Level CDS in One Major City- Region and One Provincial Capital 250,000 Jun-01 China Changsha City-Region, Giuyang and Shengyan City Development Strategies: Urban Indicators Project FY02 900,000 Dec-01 China City-Regional Development Strategies in China 226,000 Jun-01 India Local Partnership for Poverty-focused CDS in Hyderabad 67,000 May-01 India Preparation of Gujarat State Urban Slum Policy FY02 150,000 Mar-02 India Citywide Scaling Up of Slum Upgrading (Ahmedabad) FY02 387,000 finalising India Creating Community Federations for Urban agreement Partnerships (Orissa) FY02 98,065 finalising India ImprovingAccess of Poor to Basic Urban agreement Services in the Ludhiana Municipal Corporation 30,000 completed Indonesia Proposal Preparation: Poverty-focused CDSs Mar-01 600,000 Mar-01 Indonesia Institutionalizing Poverty-focused CDSs 160,000 completed Nepal Katmandu CDS and Informal Settlement Study Aug-01 30,000 completed Pakistan Proposal Preparation: Peshawar CDS & City Apr-01 Assistance Program 150,000 Apr-01 Pakistan CDS and CitiesWithout Slums Initiative for Peshawar 30,000 completed Philippines Proposal Preparation: Expansion of the CDS May-01 Program 600,000 May-01 Philippines Upscaling Poverty-Focused CDSs 300,000 Apr-01 Vietnam EnhancingAccess of the Urban Poor and 54 Vulnerable Groups to Basic Infrastructure and Housing Financials Allocation Start Date Country Activity Title Amount (US$) EASTERN EUROPE & CENTRAL ASIA REGION 75,000 Jun-01 Bosnia-Herzegovina Preparation of Mostar's Local Economic Development- Capacity Building and Business Improvement Program 75,000 completed Bulgaria Sofia CDS - Phase I Jun-01 249,800 Jun-01 Bulgaria Sofia CDS - Phase II LATIN AMERICA & CARIBBEAN REGION FY02 195,000 finalising Bolivia Slum Improvement and Disaster Management agreement Mitigation in the City of La Paz 180,000 Jan-01 Brazil Recife Metropolitan Region Development Strategy 560,000 Apr-01 Brazil Building an Enabling Strategy for Moving to Scale in Brazil 5,000,000 Jun-01 Brazil Salvador, Bahia,Technical and SocialAssistance Project FY02 300,000 Jun-02 Brazil "Bairro Legal" Program (São Paulo) FY02 165,700 Feb-02 Brazil Anti-Poverty andAnti-Exclusion Socio- Economic Action Plan: City Networks for Development & Social Inclusion (Rio Grande do Sul) 96,000 completed CentralAmerica Urban Review Jul-01 84,000 Sep-00 CentralAmerica Regional Coordination towards a Sustained Programme for Upgrading 320,000 Mar-01 El Salvador Improving Execution Capacity for Urban Upgrading Program in MetropolitanArea of San Salvador FY02 256,445 finalising Jamaica The Kingston and St.Andrew Sustainable agreement Development Plan 475,000 Apr-01 LAC Region Moving to Scale in Latin America and the Caribbean 213,500 Jun-01 Latin America Build LAC Capacities in Urban Knowledge Management 245,000 Jun-01 Mexico Scaling up Upgrading and Managing Informal Urban Growth in the Metropolitan Mexico City Area Cities Alliance 2002 55 Financials Allocation Start Date Country Activity Title Amount (US$) MIDDLE EAST & NORTH AFRICA REGION 130,000 Sep-00 Egypt Upgrading Informal Areas in Ismailia Governorate 295,000 Aug-01 Morocco Upgrading Project for the Koraat Sbaa Neighborhood inTetouan FY02 150,000 Feb-02 Yemen Aden Medium to Long-Term CDS for Local Economic Development GLOBAL & MULTI-REGIONAL ACTIVITIES 500,000 Sep-01 Global Pro-Poor Slum Upgrading Frameworks in India, the Philippines and SouthAfrica 210,000 Jun-01 Global Housing Finance for the Poor -- Innovations and Good Practices from the Field 450,000 May-01 Global Consolidation of the Experience from Seven City Development Strategies of the UMP FY02 10,000,000 finalising Global The Development of the Community-Led agreement Infrastructure Finance Facility (CLIFF) FY02 195,000 Nov-01 Global CitiesAlliance Independent Evaluation 50,000 Mar-00 Global Urban Indicators Linkages 150,000 Mar-00 Global Preparatory Assistance Fund 99,000 Mar-00 Global Knowledge Dissemination (website, publications) 50,000 completed Global Public Policy Forum - June 2000 Jul-00 60,000 completed Global Urban Upgrading:A Resource Framework Jun-01 75,000 Jun-01 Global CDS Action Plan 212,000 Jun-00 Global CG/PPF Meetings 70,000 May-01 Global Policy Advisory Board Meetings 20,000 Jun-00 Global Building Political Commitment 5,000 Sep-00 Global Millennium Summit Product/Activity 20,000 Jun-00 Global Short Note Series 20,000 Jun-00 Global Technical Peer Reviews 300,000 Mar-01 Regional RegionalAction Plans 29,651,150 TOTAL APPROVED ALLOCATIONS 56 Cities Alliance 2002 Financials Acronyms ADB Asian Development Bank HIPC Heavily Indebted Poor Countries AfD Agence française de développement IFC International Finance Corporation [French DevelopmentAgency] KfW Kreditanstalt fürWiederaufbau CBO community-based organisation [German Development Bank] CDS city development strategies MFI micro-finance institutions CGAP Consultative Group to Assist the NGO non-governmental organisation Poorest PRSP Poverty Reduction Strategy Paper CLIFF Community-Led Infrastructure SEWA Self-EmployedWomen's Finance Facility Association DFID Department for International UMP Urban Management Programme Development [UK] UN United Nations EU European Union UN-HABITAT United Nations Human FAO Food and Agriculture Organization Settlements Programme of the United Nations UNDP United Nations Development GIS geographic information system Programme GTZ Gesellschaft fürTechnische USAID U.S.Agency for International Zusammenarbeit Development [German Agency forTechnical Co-operation] Photo Credits Cover:2002 © Sebastião SALGADO Page 28:Commissariat aux Droits de l'Homme,à la Lutte contre la Page 2:2002 © Sebastião SALGADO Pauvreté et à l'Insertion Page 11:Christianna Johnnides Page 30:Brahim Ould Abdelwedoud Page 13: World Bank Page 31: World Bank Page 17:Ahmed Eiweida Page 32: World Bank Page 18:Ahmed Eiweida Page 33:2002 © Sebastião SALGADO Page 19:Kremena Inkova Page 38:Angel Garcia,Cooperative Housing Foundation Page 20:Christianna Johnnides Page 38 (lower):Anthony Pellegrini Page 21:Ivo Imparato Page 40:Anthony Pellegrini Page 22:Andres Romo Page 41 (upper/lower):Cities Alliance Page 23:Andres Romo Page 43:Mark Hildebrand Page 26:Jornal daTarde Page 45: World Bank Page 27: World Bank Page 48:Cities Alliance Contributors Andrea Merrick: Editor Randy Cook: Designer CitiesAlliance C i t i e s W i t h o u t S l u m s 1818 H Street, NW Washington, DC 20433 USA Tel: (202) 473-9233 Fax: (202) 522-3224 info@citiesalliance.org www.citiesalliance.org