2003 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 Impacts ­ Linkages to Investments ..................6 City Development Strategies ....................................................9 The Challenge of Scale ­ Nationwide Upgrading......................19 Learning and Knowledge Sharing ............................................38 Organisation ..............................................................................42 Consultative Group ..........................................................42 Policy Advisory Board ......................................................43 Secretariat..........................................................................44 Financials ..................................................................................45 Cover: Shack fires in informal settlements are a part of daily life. Beirut squatter camp,Alexandra,Johannesburg,South Africa.2002. Photographer: Caroline Suzman© 2003. James D. Wolfensohn Anna Kajumulo Tibaijuka President Executive Director The World Bank Group UN-HABITAT A Shared Vision for City Development F our years ago we joined forces to launch the Cities Alliance. Our objective was to scale up the impacts of successful approaches to urban poverty reduction.This year's Annual Report illustrates how the Alliance's strategic framework is focusing the resources of its members on citywide and nationwide scales of action. Our most significant achievement to date has been to demonstrate how improving the lives of slum dwellers provides a strategic opportunity for the international development community to target poverty where it is growing fastest ­ in cities. By focusing on the city as a whole, rather than on sectors, and supporting long-term commitments,Alliance members are promoting a comprehensive approach which links urban poverty reduction and sustainable economic growth. Mayors and other civic leaders are now on the front line of implementing the Alliance's Cities Without Slums action plan, and city development strategies are providing a mechanism for local stakeholders to address the linkages between the broad range of issues that we know trap people in poverty ­ from lack of access to safe drinking water and sanitation, to insecure tenure, HIV/AIDS and lack of jobs. Although there is still a very long way to go, we are immensely proud of these initial achievements, made through the concerted efforts ofAlliance members.TheAlliance is clearly helping us to learn from those cities and countries which are making progress in improving the lives of their most vulnerable residents, and also to set new standards to support these efforts. We are pleased to renew our strong commitment to our partnership in the Cities Alliance. James D.Wolfensohn Anna KajumuloTibaijuka President Executive Director TheWorld Bank Group United Nations Human Settlements Programme CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT Ribeira Azul,Salvador,Bahia,Brazil Introduction T he Cities Alliance grew stronger in 2003. Not Slums action plan by the world's heads of state1 and only has the partnership expanded, but the the adoption of its goal asTarget 11 of the Alliance's strategy is increasingly being Millennium Development Goals (MDGs) ­ "by mainstreamed and producing results.This strategy, 2020, to have achieved a significant improvement in adopted by Alliance members when the partnership the lives of at least 100 million slum dwellers". was formed in 1999, calls for a concerted attack on urban poverty by focusing efforts in two areas: city During 2003 Alliance members have consolidated development strategies (CDS) which reflect a their efforts to help achieve this target both with shared vision for the city's future, and citywide and more resources and by aligning their country nationwide slum upgrading. operations in support of citywide and nationwide strategies. Leadership by Alliance members in support of this strategy is most apparent in their actions building on the endorsement of the Alliance's CitiesWithout 1 United Nations Millennium Declaration, General Assembly resolution A/RES/55/2, 18 September 2000. 3 Intr Local authorities The Alliance is also supporting the preparation of a new Johannesburg-Addis Ababa Partnership leading the way Programme, drawing on the experience of oduction Johannesburg's iGoli plans to help Addis Ababa Thein organisations of local authorities represented address key CDS knowledge gaps in the context of the Alliance, as well as an increasing number of the New Partnership for Africa's Development national associations worldwide, are promoting CDS (NEPAD). Earlier this year, the Cities Alliance also and citywide slum upgrading among their supported a delegation from the Lagos State members; as a result, local authority associations are Government which visited South African cities to also increasingly at the centre of Alliance-funded exchange ideas and experiences on a wide range of activities. issues, including decentralisation, city development strategies, and intergovernmental relations. During 2003, the Chilean Association of Municipalities has obtained Alliance support for City development strategies are now recognised as a Local Development Strategies for Housing Solutions powerful tool for multisectoral analysis and to Overcome Poverty; the National Association of investment planning at the city level.As a number of Local Authorities in Ghana is prepared to play a key examples in this report illustrate, the CDS process role in replicating city-based poverty reduction empowers the urban poor and business leaders to strategies drawing on the experience gained in participate in establishing legitimate priorities for preparing a CDS in the Kumasi region; and the investments in infrastructure and service delivery Association of Latvian Cities was awarded funding for the poor.This report also describes how CDS for CDS in eight cities under its Latvia Cities partners are learning to adapt existing financial Program ­ City Development Strategies for mechanisms to respond to these investment Economic Development. demands, and are piloting new ones. CDS are also increasingly being used to develop local Poverty Reduction Strategy Papers (PRSPs), to analyse the Operational Partnerships with local economy and to devise a common strategy for Local Government Associations economic growth, employment generation, and Association of Latvian Cities poverty reduction. Association of Municipalities of Burkina Faso Chilean Association of Municipalities Political will for nationwide China Association of Mayors slum upgrading City Managers' Association of Gujarat (India) Latin American Chapter of the International increasing number of national governments are Union of Local Authorities Anproviding leadership to achieve the Cities League of Cities of the Philippines Without Slums MDGTarget. In the spirit of a National Association of Local Authorities in `learning alliance', this report examines the Ghana experiences of nine countries in light of the support South African Cities Network they are providing to their cities in undertaking citywide slum upgrading.These experiences differ in many significant respects, clearly underlining the fact that there is no single solution or approach that One of the most positive developments over the all must follow.At the same time, there is one past year has been the extent to which city leaders overarching point of commonality: each of these are increasingly networking among themselves to national programmes is being driven from within. share knowledge on CDS and citywide upgrading.A Development agencies have much to learn from good example is the South African Cities Network these countries, and certainly their leadership will (SACN), which was launched in October 2002 by inspire others. South Africa's nine metropolitan areas.This network promotes a learning partnership among the civic Nowhere is this more evident than in Brazil.A leaders who are actively transforming local powerful new voice for slum dwellers emerged last governments and has adopted CDS as its core year with the election of President Luiz Inácio Lula integrating programme to achieve the goals of da Silva (`Lula'). Having lived for a number of years equitable economic development and poverty in São Paulo's slums, Lula speaks with first-hand reduction. knowledge of the obstacles, opportunities, hopes, CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 4 and fears millions of slum dwellers face daily. Italy made important new commitments in "When people begin to realise that they have a Brazil, including building on their ongoing chance that a dream can be realised, things will support to slum upgrading in Salvador, Bahia, to happen", Lula said at the April 8 ceremony scale up this approach within the framework of launching São Paulo's Land Regularisation a new statewide poverty reduction programme; Campaign for slum dwellers and attended by the DFID was active in South Africa, Swaziland, and UN MDG Slum DwellersTask Force. One of Lula's South Asia; oduction first actions as president was to create the new federal Ministry for Cities to help fulfill the The Netherlands is becoming engaged with government's commitment to improve the lives of Alliance partners in pro-poor economic Intr slum dwellers. Fortuitously, the Alliance's 2003 development in Africa; annual meeting will take place in São Paulo, a city that is tackling, head-on, its most deprived and AfD has helped develop a new CDS proposal in violent favelas. Niger, and France is also supporting the development of a new slum upgrading initiative in Brazil; Bilateral and multilateral CIDA has incorporated CDS in a major new members in action programme in India; The ADB has supported CDS in India, the During 2003Alliance members worked together Philippines, andVietnam. both at the global level in establishing new financing facilities and providing critical co-financing, but also at the country level whereAlliance The decision of the United Nations Environment members are increasingly using the partnership to scale up the impact of their activities while Programme to join the Cities Alliance underscores empowering local leadership. UN-HABITAT and the World Bank remain key partners inAlliance activities our concerns about the urban environment. We in all regions, but, as is illustrated below, during need to work with cities to take action now, both 2003 all of theAlliance's development agency partners were actively engaged in preparing and for the protection of the local environment and implementingAlliance activities at the country level: human health as well as for managing the impact GTZ offices in South Africa, Ethiopia, Chile, Peru, and the Philippines have helped cities of cities at the national, regional and global levels. develop Alliance-funded programmes this past year; The CitiesAlliance can provide the catalytic role for USAID offices in South Africa, Morocco, and the urban environment, as GEF has done for the India have been active partners, and offices in global environment. the Philippines, Panama, and elsewhere are developing new activities for FiscalYear 2004 KlausTöpfer,Executive Director,UNEP (FY04); The offices of SIDA were involved in new In October 2002, UNEP announced its decision to partnerships in South Africa and India; join the Alliance. UNEP's substantive contribution will strengthen both the operational and normative Norway was active in South Africa and provided aspects of Cities Alliance activities, particularly the key financial support to scale up Alliance urban environmental components of CDS and activities throughout Sub-Saharan Africa; citywide upgrading. Japan continued to support CDS information networks throughout Asia and is developing In October 2002, the UN also organised the first new FY04 programmes in Indonesia and the meeting of the Millennium Project'sTask Force on Philippines; Improving the Lives of Slum Dwellers.This is one of ten such task forces designed to help devise strategies to assist developing countries in meeting 5 Intr the MDGs. Several Alliance members, as well as infrastructure investments will make key members of the Alliance's Policy Advisory Board contributions to achieving the MDGs.A new and Secretariat, are contributing to the work of this InfrastructureVice Presidency was established in oduction task force. June 2003 to focus on supporting the provision of infrastructure to the hundreds of millions who lack UN-HABITAT is leading the UN's efforts to basic services, as well as to improve economic monitor progress for MDGTarget 11. In May 2003, performance to raise incomes.TheWorld Bank UN-HABITAT published a practical Guide to Group is also exploring new instruments to operate MonitoringTarget 11:Improving the Lives of 100 at the sub-sovereign level, including participating Million Slum Dwellers, which cities and countries can with other Alliance members in the design and use in setting their ownTarget 11 goals. UN- capitalisation of GuarantCo and establishing the HABITAT's 2003 Global Report on Human IFC's new Municipal Fund. Settlements is also focused on "Facing the Slum Challenge". Scheduled for publication in October This year's Annual Report demonstrates that, with 2003, it is likely to be the most comprehensive committed members and innovative partners, the report ever assembled on the world's slums, Cities Alliance is helping to improve the quality and including updated statistics on the scale of the urban impact of urban development cooperation, as well poverty challenge, an assessment of slums in the as to expand the level of resources reaching local development context, as well as policy responses. authorities and the urban poor.The Alliance's global impact was highlighted by the independent In response to increased demand from its client evaluation which was completed during FY03 and countries and in light of the critical role reviewed by the Consultative Group at their infrastructure plays in poverty reduction, theWorld Brussels meeting. Bank Group is taking decisive steps to ensure that its Independent Evaluation of the Cities Alliance An independent evaluation of the Cities Alliance was commissioned in 2002 to inform Alliance members of the impacts of the partnership to date as well as to make recommendations for improving future progress. The Alliance was evaluated against three criteria--relevance, efficacy, and efficiency--and against its own objectives as stated in its charter: To improve the quality of urban development cooperation and urban lending; To strengthen the impact of grant-funded urban development cooperation; To expand the level of resources reaching the urban poor by increasing the coherence of effort of existing programmes and sharpening the focus on scaling up successful approaches; and To provide a structured vehicle for advancing collective know-how. The evaluation report concludes: "In sum, the comparative advantage of the Cities Alliance is in the process of being vindicated: In encouraging and facilitating the collaboration of partners in the process of drawing the lessons of urban development and extracting best practice; In providing a means to develop initiatives which would not be possible for ordinary donors, restricted by the need to deal exclusively with sovereign governments; In providing unorthodox ways to work with the poor and with NGOs in up-scaling the two priority tasks for a full attack on urban poverty; In creating the promise of a `learning alliance', a point to pool experience, to evaluate and to disseminate it to all participants in urban development. Thus, given the brief life of the Cities Alliance so far since it became fully operational, this is a strong performance. Given some reorientation in the light of the experience of the first years, it seems set to grow stronger in its role. We can say on the record that, in the absence of the Cities Alliance, the alerting of world opinion both to the demographic transition to a predominantly urban developing world and to the opportunity to make a serious attack on urban poverty would be significantly less; the scale of donor commitments would be much less; that the scale of collaboration--and therefore the magnification of the urban development efforts-- would be less; that the mechanisms for the pooling and dissemination of experience would be inferior. Furthermore, the promise of significant action against urban poverty in the future would be considerably less as CitiesAlliance a result." C i t i e s W i t h o u t S l u m s 2003 The complete Independent Evaluation:An Assessment of the FirstThreeYears is available on request. ANNUAL REPORT Banks of the Jukskei River,Alexandra,Johannesburg,2002. Cities Alliance Impacts ­ Linkages to Investments L inking grant-funded technical assistance to capital The investments come from many sources. More investments is central to the Alliance strategy for than US$2.3 billion are fromWorld Bank loans and improving the efficiency and impact of urban credits. Other investment partners include the Asian development cooperation.The Alliance Charter and Inter-American Development Banks, the EU stipulates that private and public sector investment and EBRD, and bilateral agencies such as the AfD, partners and development banks should be involved CIDA, GTZ, KfW, and SDC. in the design of Alliance activities from the outset, so as to increase the potential of attracting Importantly, more than US$0.5 billion of investment for implementation. identifiable investments come from local public resources. In São Paulo (Brazil), for instance, nearly Over the course of the past year, the Cities Alliance US$188 million in upgrading investments are Secretariat has been tracking the investments that planned for the Bairro Legal programme, much of it are linked with the Alliance work programme. from the Municipal Housing Fund, with Although this initiative is ongoing, partial results endowments already approved in the municipal indicate that more than US$4 billion of investments government budget. São Paulo, with the active are linked with Alliance-funded activities. support of theWorld Bank, is using US$300,000 in Approximately US$1.5 billion are from investments Alliance funding to help design, plan, and monitor already committed, and US$2.5 billion are this citywide slum upgrading programme.This prospective investments in various stages of Alliance technical assistance funding, informed by preparation or appraisal. global good practice and drawing on the expertise 7 Cities of Alliance networks, is being used to improve the Piloted initially in Mumbai (India), CLIFF puts quality, impact, and sustainability of the much more capital investment funds directly under the control substantial São Paulo investments. of an international NGO, Homeless International, and its Mumbai-based partners: the National Slum In Salvador (Brazil) the linkages ofAlliance funding Dwellers Federation (NSDF), Mahila Milan (US$5 million provided by Italian cooperation) with (WomenTogether), and the Society for the Alliance the investments for an on-going upgrading Promotion of Area Resource Centres (SPARC). programme improving the lives of 150,000 slum dwellers, has worked so well that the state of Bahia is With their proven track record in implementing scaling up the programme statewide, and Italian community-driven projects, CLIFF provides a cooperation has committed an additional 5 million financial basis that allows SPARC and its partners to to theAlliance to help implement this new leverage national, state, and local subsidies and programme. private capital.Their development approach promotes the use of construction labour, Impacts A somewhat unexpected but significant impact from entrepreneurs, and professionals from within this project is the linkage of slum dwellers and the Mumbai's slums.This approach has gained non-governmental organisations (NGOs) that assist recognition fromWorld Bank procurement officers, them with investment capital.The Italian NGO AVSI who have deemed it "competitive and altogether and its network of local partners have gained acceptable".And in a significant advance, the credibility and access to compete for construction Mumbai partners have won the right for NGOs to projects using labour cooperatives that have been compete for contracts for land and housing projects formed and capitalising on training provided under being tendered by Mumbai's local authorities. -- the slum upgrading programme being supported by the Alliance-Italian cooperation grant. Starting with Improving the pro-poor impact and sustainability of Linkages construction contracts awarded on a sole-source capital investments is also a central goal of Alliance- basis, the president of one cooperative said:"Our supported CDS.Although monitoring their impact ambition is to structure ourselves so that we have is just beginning, in several instances CDS have more opportunities [to compete for contracts].We started to shape and change the financing strategies want the opportunity to show we can do this".A of cities as well as lending instruments of mere year ago this would have been a dream. international development partners. The most significant and sustainable investments In theYemeni port city of Aden, for example, the often come from the slum dwellers themselves. World Bank has designed an Adaptable Program to Most monitoring systems have not yet devised an Loan to take advantage of the multi- appropriate mechanism to capture the nature and dimensional aspects of a the extent of these critical investments of time, CDS. Rather than focus Investments organisation, and finance.Anecdotal evidence from only on pre-identified port a number of regions in the world suggests that the investments, this loan relies assets generated by the slum dwellers themselves on the integrative CDS meet, and often exceed, the formal investments by approach to identify key public and private sector agencies. Cities Alliance investments for Aden, taking members are increasingly investing in empowering full advantage of the linkages slum dwellers by leveraging their investments not only of the port, but also within the framework of citywide upgrading of the international airport and strategies. Aden Free Zone.This is perhaps the first instance of a newWorld This is a key objective of the Community-Led Bank investment mechanism Infrastructure Finance Facility (CLIFF).This explicitly designed around the initiative, which is funded by the Alliance through outcomes of a CDS planning process. US$12 million committed by DFID and SIDA, was established to assist organisations of the urban poor Improving the city's ability to better manage improve their demonstrated ability to undertake existing resources and mobilise additional community-driven development projects by investments is another demonstrable benefit of accessing commercial and public sector financing. utilising a CDS process. In the Guiyang (China) CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 8 CDS, municipal debt management received special less than 40 secondary cities, financed by the attention, putting the city in a stronger position to Alliance and government of Japan, supported by attract funding from both domestic and UN-HABITAT and theWorld Bank, and international sources. In Latvia, the CDS process is implemented by the League of Cities of the seen by the eight leading cities as a chance to Philippines. Based on this experience, the successfully tap the EU's accession funds, which Government andWorld Bank are now preparing a until now could not be fully utilised.The South new project that will be designed to link African government has created a funding investments to these CDS outcomes. mechanism for urban restructuring that provides an excellent incentive for the efforts of the South Linking to investments must also increasingly African Cities Network to improve the governance engage non-public sector resources.This will be the Investments and competitiveness of South Africa's major cities. focus of the Alliance's next Public Policy Forum to be held in São Paulo in October 2003.The Forum to In Indonesia, theWorld Bank, UN-HABITAT, and will focus on sustainable financing strategies for the UNDP are supporting the government's cities and financial services for the urban poor ­ decentralisation efforts, including the issues which concern the public sector, private institutionalisation of poverty-centred CDS as one sector and international development partners alike. of the primary tools for prioritising urban The Alliance hopes to build on the ideas exchanged investments.The government and theWorld Bank during the Forum to more systematically support intend to use the priorities established through sustainable financing strategies for cities as an participatory CDS processes in at least seven cities outcome of CDS, as well as savings and credit to inform urban investments to be made in 30 cities mechanisms to more effectively leverage the Linkages through a US$100 millionWorld Bank investment. operations of local private sector financial institutions and the resources of slum dwellers The Philippines has had a very active CDS -- themselves. programme over the past few years, involving no Impacts Alliance Cities Lagos,Nigeria City Development Strategies D uring its four years of existence, the Cities Almost all growth is now taking place Alliance has supported a wide range of city in developing country cities development strategies (CDS) in more than 80 cities in 25 countries. CDS have been carried out by Rural, All Countries cities in all regions, with populations varying from Urban, Middle and Low Income Urban, High Income cities of 50,000 to city-regions with more than ten 2000 million inhabitants. millions) (in 1500 Given the diversity of cities, there is no universally applicable best practice for the implementation of a Growth 1000 city development strategy. Each city needs to identify and recognise its own opportunities and Population 500 problems, which may vary considerably according taloT to its location, level of economic, social, and 0 1950-1975 1975-2000 2000-2030 institutional development, and many other factors. Humanity is only about half way through its This year the Cities Alliance has made considerable transformation to urban living. Over the next 30 years progress in collating the CDS experience, lessons the global urban population will increase by more learned, and tools from cities in all regions (see than 2 billion ­ virtually all of this in developing CDS site on www.citiesalliance.org).Together this country cities.2 material illustrates how CDS help cities both in 2 National Research Council (2003). Cities Transformed: Demographic Change and Its Implications in the Developing World. Panel on Urban Population Dynamics, M.R. Montgomery, R. Stren, B. Cohen, and H.E. Reed, eds. Washington DC: The National Academies Press. CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 10 planning for their future growth and in strengthening their decision-making processes to set priorities and achieve results.The approach to CDS supported by Alliance members targets equitable growth in cities and their surrounding regions, developed and sustained through participation, to ategies improve the quality of life for all citizens. The following summaries of six Alliance-supported Str CDS processes illustrate how comprehensive and well-executed city development strategies result in improved urban governance as well as investments. These case examples underscore the importance of city officials themselves taking the lead while actively involving the urban poor and local business leaders in a wider participatory process.A thorough assessment Farhan Al-Marsh,Aden CDS team member of the city and its region ­ focusing on its Yemen comparative advantages, its change drivers, and resources, including the assets and knowledge of the Aden City Development Strategy at urban poor and the values and preferences of the city's residents ­ has proven to be an essential starting the Centre of a World Bank Loan Development point for a city development strategy. It is also increasingly clear that the success of a CDS process is Therelease following excerpt from aWorld Bank press directly related to the extent to which the local 4 announcing the approval of newWorld business community and civil society are engaged. Bank Adaptable Program Loan for Aden illustrates City how CDS are changing and shaping the investment Three other key building blocks of a CDS include:3 instruments of Alliance partners. Creating a shared vision of the city's future among all stakeholders ­ a vision that looks With a gross national product per capita of long term but motivates short-term action; US$460, Yemen's 18.5 million people remain Developing a strategy that is realistic but challenging and focuses on a limited number among the poorest in the world. About 42 percent of actions with high probability of producing results; and of households live below the poverty line, and Having an implementation plan that focuses on approximately 25 percent are unemployed or accountability ­ what, when, how much, and underemployed. One of the challenges facing whose resources by year, including indicators for monitoring results. Yemen is to reduce its dependence on its rapidly depleting oil reserves by turning to non-oil sectors. What Can a CDS Achieve? Another important challenge for Yemen is Goals: Improved urban governance and management; attracting private investment. Increased economic growth and employment; Sustained poverty reduction. The first phase of the Port Cities Development Outcomes: Policy, governance, and institutional reforms; Program will focus on Aden,Yemen's commercial Financing strategies and investment programmes; hub, whose strategic location at the tip of the Monitoring mechanisms. Arabian peninsula once made it the second 3 Douglas Webster, Consulting Professor Asia Pacific Research Center, Stanford University. `Formulating City Development Strategies in China: Methodological Steps'. Presentation prepared for CDS workshop in Beijing, China, 6-7 July 2002; see www.citiesalliance.org. 4 World Bank. Today, 30 January 2003. 11 City busiest port in the world.The programme in Aden organizations--in a participatory process to will begin with small-scale infrastructure collectively shape the local economic investments, such as improving facilities at a local development agenda of Aden. Development fish market and road works at an industrial estate, to elevate small business growth and build The Aden City Development Strategy for Local Economic Development is being financed through linkages to Aden's transport facilities.Training and the Cities Alliance to support the local authorities in investment planning will begin in parallel in both several key areas: providing quality and adequate basic services to both citizens and investors, Hodeidah and Mukalla. attracting investment to expand employment and services, and defining effective and sustained urban To attract private investors, the first phase will also poverty reduction policies.The CDS process in Aden is supported by theWorld Bank and AUDI, as focus on enhancing the ability of Aden's local well as by GTZ and UNDP which are complementing the CDS through their ongoing Str government to deliver transparent and efficient programmes. ategies services to the private sector through Aden's CDS is at the centre of a US$96 million administrative modernization, automation of investment programme that intends over a 12-year period to strengthen the investment climate, business transactions and information and encourage growth, and create jobs in three coastal communications technology. cities of Yemen.The Aden CDS has shaped the first phase US$23 million credit approved in January 2003 and focuses not only on investments, but The Port Cities Development Program coincided above all on institutional and policy reforms as well as on enabling a better business environment with Aden's preparation of a City Development through coordination among all levels of government, the private sector, and civil society. Strategy (CDS), aided by the technical and financial support of the Cities Alliance. The CDS Linkages between the city and major national investment programmes in the port, the airport, aims at developing a shared vision for the city's and the free zone are essential for attracting investment to expand employment and services as future and local priorities for action by bringing well as for providing quality and adequate basic together key stakeholders--including NGOs, the services to both citizens and investors. private sector, Aden University and women's The city of Aden has institutionalised the CDS process Aden CDS: Integrative Approach Focus on Process Urban Management Physical & Infrastructure Identification/Selection Technical, Preparation & Municipal Finance Process Implementation Process Aden Local Office of the Governor Council CDS To Identify Priorities Aden Local CDS Economic Development Workshops Department Local Economic Public Agency Development Reforms CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 Source:Omar Razzaz,World Bank."Globalization and Links with Urbanisation -The Case of Yemen:Yemen Port Cities Development Program".Presentation atWorld Bank Urban Forum,December 2002. ANNUAL REPORT 12 Essentials of a CDS Assess the state of the city and its region Each city needs to identify and analyse its own opportunities and problems; the values and preferences of its residents; its change drivers, including its relationship to its region and the national and global economy; and its assets and resources. ategies Develop a long-term vision A shared strategic understanding among all stakeholders is essential to align energies to work cohesively for the good of the city. Thinking citywide provides a mechanism for local stakeholders to assess the linkages between Str their respective priorities for health, security, jobs, housing, education, transport, and the environment and to develop a shared vision. Act now with focus on results Although the vision has a long-term perspective, the strategy should focus on short-term results and accountability ­ indicating the role for many key stakeholders, not just local government. It is helpful to start with a limited number of actions that respond to common concerns and that are challenging but have a high probability of producing results. Value the contributions of the poor The urban poor have demonstrated enormous resilience and ingenuity in mobilising and organising themselves when formal institutions have failed to serve them. The CDS process capitalises on the enormous potential of the urban poor as development agents by supporting their participation in decision-making processes that affect their livelihood. Encourage local business growth Involving key stakeholders and collaborative leadership and responsibility is a more effective way of creating a Development business-enabling environment than just relying on tax-based incentives that sometimes divert resources needed for critical infrastructure investments. Engage networks of cities Learning from peers through city-to-city knowledge-sharing networks has proven the most effective and sustainable way to transfer knowledge. The involvement of local government associations is considered crucial for the City institutionalisation and replication of a CDS. Focus on implementation Implementation is at the heart of a CDS, not the development of a perfect plan. Successful strategies mix means, clearly identify institutional responsibilities, and provide incentives for performance. Stakeholders learn to integrate evaluation and impact targets from the beginning, learn from errors, and revise the strategy in the next round. Concentrate on priorities A strategy reflects tough choices and focuses on a limited number of actions as well as on available resources to shape emerging opportunities. Strategic planning involves making informed decisions in a rapidly changing environment. Foster local leadership The sustainability and effectiveness of the CDS process depend to a great extent on the active involvement of the mayor, high-ranking local government officials, and representatives from the municipal council. If not anchored in the yearly municipal budget with a sustainable financing strategy, the CDS will remain just another planning document. 13 City China Responding to this demand, the Alliance has also supported a CDS Indicators Project in China, which was completed this year.This project was designed City-region CDS and Measuring and implemented by UN-HABITAT to assist the Impacts and Performance Development CZT city-region, Guiyang, and Shenyang in developing and maintaining a set of performance Over the last four years the Cities Alliance has indicators.This helped the cities measure supported CDS in secondary cities in China. improvements in living standards and urban Implementation has been guided by theWorld Bank management. working in partnership with China's Ministry of Finance, the National Development and Reform Much remains to be done, however, particularly in Commission, the China Association of Mayors, and enhancing the capacity of the participating cities to the concerned city and provincial authorities.The adapt existing indicators, especially devising the first round of CDS in China included the city of appropriate criteria for disaggregating, and Guiyang in Guizhou Province and the eventually to incorporate these indicators into the Changsa/Zhuzhou/Xiangtan (CZT) city-region in budgeting and planning processes. Hunan Province.These efforts resulted in the Str development of regional strategies to help overcome the deficiencies of the fragmented Eight Steps for Developing a governance structure of a large metropolitan area. Performance Indicators System: ategies Linked to these was a comprehensive, prioritised A Bottom-up Approach investment programme to address the city-region's Agree on the performance outcomes to monitor: infrastructure needs; the programme was designed start with CDS and other development plans and to be financed through a mixture of local, national, identify outcomes to monitor using indicator; and international sources. Select key indicators to monitor outcomes; The ongoing round of CDS in the Chengdu, Collect baseline data on the selected indicators; Zhengzhou, Lanzhou, and Erdos/Dongsheng city- Set realistic targets for indicators; regions is being carried out with co-financing from Monitor performance using the indicators: collect DFID and theWorld Bank.This work includes an data on indicators and compare them with the analysis of vulnerable groups and minimum standard targets; schemes designed to improve their living conditions.With strong urban-rural linkages these Report the findings of performance monitoring: city-regions also play a prominent role in improving identify and explain any gap(s); the living standards in surrounding regions. Use the findings from monitoring to make adjustments: revise policies, programmes, Initiating these city development strategies has also and projects; and reinforced among policy makers and managers at Sustain the monitoring system. the central and local levels in China that urban management interventions need to be monitored Source:Kyung-Hwan Kim.China CDS Performance Indicators Manual. Prepared for UN HABITAT-Fukuoka Office.December 2002. against their objectives with clear targets, so that investment policies and development strategies may be adjusted as city development circumstances change. CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 14 Nigeria From the outset, the Karu CDS was closely linked to the preparation of a multi-city lending programme for urban upgrading: theWorld Bank's City Development Strategy for Karu's International Development Association (IDA)- Economic Development supported Community-Based Urban Development Project.This link was critical in realising the full ategies Karu is a very fast growing satellite town in potential of the CDS process and resulted in several Nasarawa State, located on the outskirts of recommendations for the creation of an Upgrading Str Nigeria's capital,Abuja. Karu's population was Fund. about 10,000 in 1991 and increased to an estimated 50,000 by 2001. Due to the continued strong Due to the positive reception of the CDS approach migration from other parts of Nigeria, the current in Karu, Lagos State Government, with the support growth rate is now estimated at 40 percent per of theWorld Bank and Cities Alliance, is preparing a annum. strategy for economic development and poverty reduction, which will include a citywide upgrading A broad objective of the recently completed Karu strategy and a CDS focused on local economic CDS, which was co-sponsored by theWorld Bank development. and UN-HABITAT, was to support the city government in effectively managing this continuing tide of growth.This was to be achieved by Karu's CDS developing a local economic development (LED) strategy that would reduce poverty and maximise Objectives: Development (i) Improve governance; economic growth. (ii) Raise awareness among decision makers The most important result of the CDS was the about pro-growth and pro-poor policies; and establishment of a participatory framework for the (iii) Develop a local government strategy for City state and local governments to interact with Karu's growth and poverty reduction. informal businesses (now organised into the Outputs: Business and Economic Development Committee of (i) The "Karu: Economy and Employment Structure Karu), as well as its citizens, on all matters that and Trends" analysis; affect Karu. Residents have been mobilised and (ii) An organised consortium of local businesses officials at both the state and local government in Karu: the Business and Economic levels are more aware that business processes in Development Committee; Karu need to become more participatory. (iii) An LED Strategy which identifies actions that can be taken at the local government level; The CDS process has demonstrated the desire and (iv) Technical reports on governance and ability of Karu's residents to participate in citywide management institutions, land use consultations on planning, budgetary, and service management, and urban services delivery-related issues. It has also demonstrated that management; and the citizens value and expect timely and transparent (v) A citywide consultation report charting the communication from local and state governments, proceedings and the way forward. especially with respect to the management of public expenditure in Karu. State and local governments have therefore implemented several activities to increase transparency and to help mobilise local resources, including regular meetings with citizens to discuss development issues. 15 City Latvia CDS: Responding to National and Local Needs KEY NATIONAL ISSUES Development National Development Plan THE CDS RESPONSE Public Administrative Reform Strategy The Latvian CDS Application for Eight Regional Cities Poverty Reduction Building Locally to Move the Strategy National Agenda Forward Requirements of EU Accession and Forthcoming Single Programming Document Economic Capacity Inequalities Governance Development Building & Poverty Str LOCAL/URBAN/REGIONAL ISSUES Source:Latvia Cities Program ­ City Development Strategies for Economic Development. ategies Latvia CDS programme that encourages local economic development and the promotion of an entrepreneurial and competitive economy.The CDS City Development Strategies programme aims to mobilise local resources and to in Eight Cities provide local answers to some of the economic and social challenges Latvia faces today. Despite Latvia's impressive economic growth performance and successful macroeconomic The CDS programme, which started in 2003, management during the last seven years, this focuses on: (a) devising local economic development country of 2.4 million inhabitants is still strategies and action plans; (b) improving characterised by high unemployment, poverty, governance structures in the cities, based on uneven development, and economic and social stakeholder participation and partnerships between inequalities. local government, citizens, and the private sector; (c) increasing the capacity of local governments to Consequently, Latvia's recent Poverty Reduction take advantage of significant potential investment Strategy (PRS) sets the goal to reduce the number opportunities, including public-private partnerships of poor by half by 2015.Although the PRS is well and EU accession funds available for Latvia; and (d) embedded in a National Development Plan and a building capacity and capability within the cities and Public Administrative Reform Strategy, all three regional development agencies to ensure scaling-up national initiatives have been severely hampered by and replication on a national scale. the lack of a coherent focus on implementation. Action plans, which prioritise and sequence policy Each city has established a steering interventions and investments, are embryonic and committee/partnership forum, made up of key often lack local inputs. stakeholders from all sectors, which advises and guides the CDS process. In addition, the CDS In order to advance the implementation of the PRS, process has been anchored in the 2003 city budgets eight leading cities of Latvia (Daugavpils, Jelgava, by the elected city councils. Jurmala, Liepaja, Rezekne, Riga,Valmiera, and Ventspils) and the Open Society Institute have An interesting feature of the Latvian CDS joined forces with theWorld Bank and UN- programme was the intense preparation and HABITAT to develop a Cities Alliance-supported building of partnerships that preceded the application process to Cities Alliance funding, as CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 16 well as the close coordination among national The CDS process in Peshawar was initiated in May authorities. In several meetings and workshops, 2001 by the Peshawar Municipal Corporation and mayors, the Ministry of Finance, regional supported by UN-HABITAT and theWorld Bank development agencies, and other stakeholders through a Cities Alliance grant. Shortly after the systematically developed a common approach to the CDS was initiated, the national devolution and CDS, which rooted it firmly in national decentralisation process brought unprecedented development priorities and underlined the need for changes in the structure of local government. In effective delivery of projects and investments.Thus, August 2001, the federal government announced its even during the preparation process, the city plan to devolve power, changing the entire system development strategy had an impact on how Latvian of development planning and administration.All key local governments will interact with different agencies for service provision were decentralised stakeholders in new and innovative forms of urban and re-structured at the provincial and district governance. levels.The Peshawar Municipal Corporation was abolished and replaced by four autonomous town municipal administrations representing each of the towns in the Peshawar City District. At the same time, the scope of the Peshawar CDS expanded.With the introduction of the new local government system, the geographic boundaries of Peshawar increased fivefold to 1,257 square kilometres. Faced with high expectations from the rural constituencies, representing 50 percent of the city district, the district government recommended that the geographic and sectoral scope of the CDS be expanded, to move beyond the initial focus on urban development and municipal service provision. A series of stakeholder consultations held during the CDS formulation process highlighted institutional and governance issues as the most pressing concern Peshawar,Pakistan in the new city district.These priorities were further validated by the first citywide consultation workshop, which concluded that the city district Pakistan must prioritise its limited resources.As a result, the CDS has focused on eight broad areas of concern Peshawar's CDS: Institutional Reform that impact on a wide range of local government and Governance institutions: Devolution and decentralisation; Theof Peshawar CDS, which focuses on the creation Policy issues; an enabling environment and on making better use of existing resources and institutions, has Human, material, and financial resources; prioritised institutional development and improved Capacity building; governance.Although very ambitious in scope, the strategy does not rely on large donor assistance or Accountability and transparency; federal and provincial grants for implementation, Equity; but is rather a pragmatic response to the city district's needs and priorities that can be largely Improving law, order, and justice; and implemented within the mandate and current capacities of the city district. It offers significant Roles and responsibilities of provincial and local potential for sustainable benefits to over 2.5 million governments, civil society, and citizens. city district residents. 17 City There was near unanimity among the key city redemarcated to abolish racially-based local stakeholders that no sensible developments could government. Second, the newly demarcated cities take place in Peshawar unless the government first require radically new development strategies to deal addressed the core institutional issues of the city effectively with the goals of the democratic era. Development district ­ issues relating to services and the living Johannesburg pioneered this strategic environment of the city district.Through its transformation process through their iGoli process recommendations the CDS has offered direction which included CDS-related activities supported by and strategic choices that will in turn allow the the Cities Alliance through theWorld Bank, UN- Peshawar City District government to better HABITAT, USAID, and others from 2000-2002. manage its mandate of local governance and service SACN's core objective is to build upon these delivery. strategic transformation experiences through the exchange of information and best practices of large In fact, the CDS review showed that: (a) available city governments in achieving the goals of equitable resources could be far better utilised, (b) local economic development and poverty reduction. revenues could realistically almost be doubled, and (c) an even larger potential exists for new capital Tshwane has stopped the talking and started the investments by the private sector through partnerships in the municipal service sector, health, Str walking--we are doing something practical, education, and transport. innovative, and achievable to achieve connectivity. ategies Although the Cities Alliance support to the CDS process concluded only very recently (March 2003), We are willing to share our experiences with not as a direct result of its impact and realistic short- to only other South African cities, but in the spirit of medium-term approach, the Provincial Local Government Department has already circulated the NEPAD, all African cities. The City of Tshwane Peshawar CDS reports to all the 23 other districts in the province for "...guidance for resolution of supports the SACN to contribute to the increase in similar issues in their jurisdictions". national economic growth and development by strengthening the competitiveness of major cities through mutual support, learning and South African Cities Network cooperation. www.sacities.net Father Smangaliso Mkhatshwa,Executive Mayor,City ofTshwane 13 December 2002 Thelaunched South African Cities Network (SACN) was Source:South African Cities Network,www.sacities.net. in October 2002 by South Africa's nine metropolitan areas ­ Buffalo City (East London), CapeTown, Ekurhuleni (East Rand), eThekwini The SACN has adopted the city development (Durban), Johannesburg, Mangaung strategy as its core integrating programme, (Bloemfontein), Msunduzi (Pietermaritzburg), promoting sustainable cities which are productive, Nelson Mandela (Port Elizabeth), andTshwane inclusive, sustainable, and well governed. SACN is (Pretoria) ­ together with the Department of supporting the analysis of the strategic challenges Provincial and Local Government and the South facing South Africa's cities and promoting a learning African Local Government Association (SALGA). partnership between civic leaders and different Together these cities contribute more than 60 spheres of government. Cities Alliance support to percent to South Africa's gross domestic product the SACN includes contributions to its city and represent more than 17 million inhabitants. development strategy programme, enhancing the effectiveness of citywide slum upgrading in the SACN is a direct outgrowth of several key framework of the National Urban Renewal Strategy, transformation processes in South Africa's post- developing strategies to more effectively deal with apartheid history. First and foremost, all local urban poverty and HIV/AIDS, and indicators to help governments in the country have been measure city performance. SACN also seeks to CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 18 elevate the urban policy debate and good practices this financial year the government has introduced to a broader audience within the country and region the RegenerationTax Credit which will allow and internationally through the annual State of accelerated depreciation of private investments in South African Cities Report, the first edition of targeted urban areas, as well as the Community which is due to be issued in November 2003. Reinvestment Bill, scheduled to become an Act in the ongoing Parliamentary session, which will ategies Not only will SACN activities lead to improved further encourage private lending in poor urban governance, knowledge, and networking of the areas currently`redlined'. cities, they are also linked to major national, Str provincial, and local investments.To support cities The SACN will also play a pivotal role in supporting in designing and implementing city development implementation of the National Urban Renewal strategies, the NationalTreasury has established the Strategy, which has over 2 million potential Financial Restructuring Grant fund with beneficiaries in major South African cities; working approximately R700 million.This fund was created with the Department ofTrade and Industry in partly as a consequence of the iGoli CDS process in promoting employment and support for Johannesburg and is now being expanded to assist entrepreneurs; with the Department of Housing in restructuring in large cities throughout the country. rethinking the ways in which housing subsidies are Additional finance for follow-up investments of the supplied and targeted; and generally at the national CDS may include various government infrastructure policy level in contributing to the form and content grants totalling R2.3 billion; as well as pro-poor of the country's policy and fiscal framework on economic development programmes totalling more issues of urban growth, productivity, and poverty than R5 billion. New initiatives are upcoming: in reduction. Development City City Development Strategy: MobilisingTool City Strategic Framework: Structure for Strategic Agenda Society Economy Comparative competitive Basic services for all advantage Sustainable livelihoods Spheres of Government Workforce skills Productive Inclusive Social cohesion Transport system City City Safety and security Efficient city services City Strategy (CDS) Inter-government alignment Financial resources Leadership Environment Average investment and employment in cities: & partnerships Well- Sustainable Human resources 20% from government Effective adminstration governed City HIV/AIDS 80% private sector City Transparency and probity Critical mass depends on mobilising business and other stakeholders to support vision and implementation Source:Andrew Boraine,Advisor to Minister for Provincial and Local Government,South Africa;and Chairman,SACN Board of Directors.Presentation at World Bank,18 March 2003. Ribeira Azul,Salvador,Bahia,Brazil The Challenge of Scale ­ Nationwide Upgrading W hat support do national governments provide to The countries included in this overview are: Brazil, their cities undertaking citywide slum Chile, Mexico, Mauritania, Morocco, South Africa, upgrading?What powers and functions should Tunisia,Thailand, andVietnam.The Cities Alliance is be decentralised, and what role should national working with each of these governments with the governments take? How can the resources of slum exception ofTunisia andThailand, where individual dwellers, and the risk capital of the private sector, Alliance members are active.This analysis focuses on be mobilised? How can land markets be opened? several basic indicators of political will, land What lessons can we learn from countries that have policies, and the essential features of strategies for already undertaken nationwide slum upgrading? moving to scale. How can the growth of new slums be prevented? Slum upgrading is not new.The following review The Alliance has examined the experience of nine highlights some key lessons from past experience. countries that have demonstrated leadership in addressing these essential questions, which lie at the very centre of the challenge of nationwide slum upgrading.This assessment includes countries that have implemented nationwide upgrading for more than two decades and those that are just beginning to develop nationwide strategies. CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 20 Fifty Years of Lessons: An Abridged History A half century of experience has demonstrated many ways to successfully upgrade slum communities. Each community has unique conditions, needs, priorities, and potential, so no single model for upgrading fits all. On ading the contrary, each offers new lessons, and the thousands of upgraded communities serve as the foundation for understanding how to scale up. Three role players in strategic upgrading ­ slum dwellers with their NGO intermediaries, governments, and international development agencies ­ influenced practice, just as each decade's circumstances shaped outcomes. Upgr The 1950s and 1960s: Planned cities collide with unplanned growth; the poor see cities as opportunities, but find slums and official indifference. Two parallel worlds emerged ­ formal and informal ­ and clashed around the dilemma of housing. Governments bulldozed slums and built expensive housing projects. The poor built for themselves and began to organise for change. In a few places like Peru, Indonesia, and Brazil, slum dwellers mobilised political power to seek improvements to their communities, creating the first examples of slum upgrading. Lessons: What did not work and should be avoided: Slum demolition, forced evictions, mass relocations; Nationwide High-rise public housing blocks, public rental housing; ­ Government-provided housing. What did work: Indonesia's home-grown upgrading took root; Peru's organised squatter invasions and Brazil's favela movement gained political recognition; Housing theories emerged. Scale of The 1970s: Slums reach the political agenda; alternatives to public housing are tested. Some international development agencies merge official policy and informal practice. Learning by doing characterises agency and NGO efforts. Slum communities, with the support of NGOs, developed better ways of building for themselves. Some international agencies applied pressure to alter policies. The Tondo Foreshore project, a very large upgrading programme with a land development component in the Philippines, was financed conditioned on the government's agreement to stop slum eradication and forced resettlement. Lessons: Upgrading slums is a viable, low-cost, and effective way to help the urban poor solve their shelter needs; Challenge Land and services provision are also viable and necessary to meet demand; Centralised implementation is imperfect, and local agencies are weak; Land regularisation issues are a stumbling block. The 21 The The 1980s: First pilots yield success; integrated projects develop; first large-scale upgrading begins. Land tenure revealed as a major issue. Local NGOs take on the task of upgrading. Decentralisation takes hold. Challenge Indonesia's Kampung Improvement Programme demonstrated a citywide approach, while El Salvador and Madras (Chennai, India) Sites and Services focused on slum mitigation by supplying land and services. Sri Lanka launched its Million Houses Programme, with the government providing support to people building and improving their own houses. Early theories (e.g., titled land for mortgages) frequently proved too cumbersome, costly, and unnecessary, and were dropped. Slum dwellers and NGOs pointed to the need to include communities in project decisions and add broader development objectives. International agencies increased ­ but then decreased ­ support for upgrading. A few countries, such as Ghana, Tunisia, Senegal, and Morocco, asked aid agencies to continue their support for slum upgrading. Lessons: Upgrading is a process. Everything need not be done at once: start with the basic infrastructure and of services ­ little will happen as long as water is unsafe, open sewers threaten public health, or children Scale have no safe places to play; Slum communities have more at stake and should have decision-making roles because they: Know their community and issues; Have to live with the results; Can, want, and have a right to participate; and Can and will pay for affordable improvements of their choosing. ­ Nationwide Upgrading is worthwhile, producing: Equity, which benefits both poor and other citizens alike by improving health, security, productivity, and so forth; Legal rights: right of the poor to basic services and citizenship; and Political gains: social stability and responsiveness from politicians. The 1990s: Civil society and NGOs are stronger; community involvement increases; and secure tenure is more widely recognised as key. Necessity of upgrading is widely accepted, and slum prevention is on the agenda. International agencies and governments moved to large-scale upgrading. Programmes in Jordan, Morocco, and Tunisia began to assume a national scope, but land and local government issues persisted in slowing Upgr progress. The City Summit in Istanbul produced the Habitat Agenda, but failed to establish a global target. But in September 2000, the Cities Without Slums action plan was incorporated into the Millennium Declaration, establishing both a global target and the framework for a global slum upgrading agenda. ading Conclusion: the stakes are getting higher In the last 50 years the estimated global population living in slums rose from 35 million to almost 924 million. At the same time many countries saw dramatic improvements in governance. Local governments became more powerful and responsive in providing services and better able to hear their citizens, and NGOs organised to work more effectively with governments. Slum communities developed politically and became willing and able to pay for services. And in an increasing number of countries politicians are responding to the increasing voting power of poor communities. Yet . . . Slums are growing faster than the response, particularly in Sub-Saharan Africa and South and Southeast Asia. Urban poverty is increasing, while urban environmental degradation is creating severe public health hazards. Security and safety have emerged as high priorities for slum dwellers and cities, as crime and violence escalate. Political will for nationwide slum upgrading strategies is becoming a central development issue. CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 22 Political Will ...I know what it means for a person to receive a Slums are not the inevitable result of rapid piece of paper and to have a fixed residence, an urbanisation, but the products of failed policies, ading electricity or water bill. Sometimes they cannot bad governance, corruption, inappropriate regulation, dysfunctional land markets, unresponsive even afford to pay the bill, but the fact that they financial systems, and a fundamental lack of political will.5 In countries where the dominant official have it is something great.We call this citizenship. Upgr response to poor people already living in, or moving Luiz Inácio Lula da Silva ,President of Brazil to, urban areas has been a hostile one, new and 8 April 2003 established slum dwellers find themselves facing formal and informal measures denying them access These case studies demonstrate different to urban services, social amenities, and political approaches, each with unique features designed to voice.This policy and practice of social and political respond to a particular set of circumstances. It is not exclusion has been, and continues to be, the single coincidental that political leaders at all levels of most important factor in the growth of slums.The fact government in both Brazil and South Africa are that many countries continue to ignore the impact highly motivated, since their countries share the of urbanisation reinforces these policies of exclusion dubious distinction of having the most extreme and at best defers growing social unrest and inequalities of income. increased costs to future generations. Nationwide In Brazil the issue of political will has assumed a ­ Each of the nine countries has taken decisive steps centrality that is matched in few other countries. to move away from this attitude and by so doing has With a predominantly urban population, with high created the first, necessary condition for tackling levels of urban crime violence coupled with high urban poverty and the growth of slums.The levels of autonomy enjoyed by city governments, decision to ensure that the urban poor are treated as and with an active civil society, issues of social full citizens and can benefit from urban justice and poverty dominate the political discourse. Scale infrastructure and services is primarily a political While the government has not yet set national one, requiring vision, commitment, and leadership. targets for slum upgrading and is still working on its of Political commitment for inclusion can emerge budgetary commitments, it has taken steps to within cities, as well as at the national level. It can develop national policies and strategies to support be supported, but not created, by international citywide upgrading. assistance and conditions. Brazil A political consensus has been building in Brazil for well over a decade through the activities of innovative cities and inspirational mayors and governors, often in partnership with a very active civil society. This has culminated in the recent election of a national government that has put poverty at the top of its priorities and that has Challenge created a Ministry of Cities to spearhead and coordinate some of the new policy approaches even in the face of severe budget constraints. Brazil's larger cities have traditionally taken the lead in slum upgrading, most notably through the pioneering Favela Bairro programme in Rio de Janiero and the Guarapiranga project in São Paulo. Throughout Brazil The municipalities have been moving from sectoral projects towards comprehensive upgrading frameworks designed to integrate slums into the city fabric. This is done by land tenure regularisation, social development initiatives, and community participation schemes. Through the adoption of the City Statute, an innovative and far-reaching legal framework for urban policy has been created. Resulting from an intense negotiation process that lasted more than ten years, the City Statute confirmed and widened the legal and political role of municipalities in urban policy, while also fundamentally asserting a social approach to urban property rights, which will have a profound long-term impact on urban upgrading and social inclusion. 5 Cities Alliance. Cities Without Slums Action Plan. (See pages 1-5 for causal factors of slum formation.) 23 The five years (1994-99) of the democratic government. While the government has not set new national targets for its housing and upgrading programme, although some cities and provinces have set their Challenge own, the recently established National Urban Renewal Programme should provide both incentives and clear targets for citywide upgrading nationwide. With a very different history, Mauritania has undergone one of the world's most rapid national urbanisation processes.Although its civil society is just emerging, the country's leaders have shown a quite singular political determination and focus. of Measuring and Monitoring Results: Scale South Africa The 2001 census quantified major improvements in the quality of life for South Africans between 1996 and 2001, which also saw significant urbanisation trends over the same period: Over 2 million new houses were constructed, ­ Nationwide mainly in low-income areas; Alexandra,Johannesburg The increase in informal housing was contained, rising by a mere 0.4 percent. The South African government is also clearly In 2001: committed to a national policy of inclusion. Over 70 percent of households were electrified; Although it has not made as much progress in supporting slum upgrading, it has thus far subsidised 85 percent of households had ready access to the building of some 1.5 million homes, following potable water; its 1994 commitment to 1 million homes in the first However, one in eight households still lacked access to a toilet. Upgr Chile Chile has been implementing a comprehensive national housing programme since the late 1970s. Linking a capital subsidy to household savings and credit, this programme constituted an explicit shift towards a more ading demand-side approach to housing. Notwithstanding the successful social policies implemented by the democratic government, by 1996 almost 3 million people were still living below the poverty line. In 1997 the government launched the Chile Barrio programme to try to reach those very poorest households that have yet to benefit from state assistance. Chile Barrio displays a very clear pro-poor emphasis and provides for an increasing role of local government in addressing social exclusion through an inter-institutional approach contained within a local Share Action Plan. These plans focus simultaneously on four areas: (i) Community development and social integration; (ii) Employment generation; (iii) Housing and neighbourhood upgrading; and (iv) Institutional development of poverty reduction programmes. The government recently introduced a number of reforms to the housing programme, which is widely credited with having made a significant contribution to poverty reduction. The subsidy has been increased to try to reach the poorest 20 percent and to meet the rising costs of social housing, which is now as high as US$7,000 per unit, and also to compensate for the anticipated lack of commercial credit attracted by the new Fondo Concursable programme. CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 24 Mauritania has incorporated slum upgrading targets The government ofTunisia's consistent support for in its PRSP and is now implementing a upgrading over the past three decades has all but comprehensive plan to upgrade all its slums with eliminated the national backlog, which now stands clear targets and funding allocations. at some 24,000 units. ading Mauritania: Setting National Targets and Monitoring Progress PRIORITY OBJECTIVES REFERENCE TARGET Upgr AND SITUATION FIGURES PERFORMANCE INDICATORS Date Value 2004 2010 2015 lncrease incomes and improve living conditions in the shanty towns of large and secondary cities Target population (in thousands) 2000 540 266 540 700 Working population with access to micro-credit (in thousands) 20 40 80 Cumulative volume of micro-credits (in UM* millions) 2000 200 2,500 5,000 6,000 Number of regularized land titles in poor districts 2000 800 16,000 30,000 40,000 Number of new lands developed 8,000 20,000 35,000 Nationwide Access to subsidized housing in poor districts (families) 2000 300 10,000 20,000 35,000 Drinking water consumption (l/d)** per inhabitant in poor districts 1997 10-20 20-30 40 50 ­ Rate of access to drinking water in poor districts 1997 35% 40% 50% 60% Price per m3 of water (in $US) in poor districts 1997 2-3 < 1 < 0.5 < 0.50 Price per m3 of water in poor districts compared to other districts 1997 5 times 1 time 0.8 times 0.8 times Rate of access to sanitation in poor districts*** 2000 10% 15% 26% 36% Scale *National currency unit (ouguiya) **Litres per day ***This involves operations financed in the context of public urban programmes. Source: Islamic Republic of Mauritania: Poverty Reduction Strategy Paper,13 December 2000. of Mauritania With approximately 60 percent of its total population of about 2.7 million living in its cities, Mauritania has one of the highest rates of urbanisation in Sub-Saharan Africa. The capital, Nouakchott, which is home to about 25 percent of the country's population, experienced explosive growth from 1955 to 2000 when it grew from 1,800 Challenge inhabitants to 612,000. By 1975 almost 55 percent of the city's residents lived mainly in tents. The Mauritanian government has been decisive in responding to the challenge and has developed a ten-year national programme, underwritten by an investment programme of US$193 million, to improve the living conditions of 431,000 persons in Nouakchott, 10,000 in Nouadhibou, and 100,000 in the provincial capitals. The The major components of the urban policy are: (a) urban structuring and densification; (b) district restructuring and the provision of infrastructure, especially in slums; (c) job creation activities, particularly in poor districts; and (d) establishment of a link between urban development strategies and the economic development of cities. The Twize programme has also contributed by making micro-finance available to the urban poor in Nouakchott and, increasingly, the secondary cities. 25 The At 20,000 households per year, Chile's targets are Public targets, backed by resources and reforms, also relatively small, mainly reflecting the positive have had demonstrable impacts in those countries impacts of a consistent housing policy and where they have been established. Given the nationwide programme over the previous decades. importance of political will at a city level and of Challenge National efforts are now focused on targeting state setting realistic targets, national targets are arguably assistance to the very poorest. most effective when they are an aggregation of local, city targets. Political will includes appropriate and strong policy pronouncements emanating from the most senior levels of government.While there are very few governments that do not make tacit public commitments to deal with poverty and appalling living conditions, results often ultimately depend on explicit time-bound commitments to improve the of living conditions of the urban poor. To try to quantify political will for the purposes of Scale this exercise, we have identified three indicators: The setting and publicising of a national target, through which the government commits itself to improve the lives of a specific number of ­ slum dwellers by a certain date; Incremental housing development,Riyad,Nouakchott,Mauritania The underwriting of this commitment through Nationwide budgetary commitments to achieve the target; and Land Policies A programme of necessary policy, legal, and/ the various obstacles to nationwide slum or regulatory reforms to facilitate the Ofupgrading, the issue of dysfunctional land achievement of the target. markets is by far the most pervasive. In many countries significant obstacles endure, even in identifying the ownership of and rights to land. Upgr Mexico Mexico has recently introduced its Habitat Programme, a comprehensive initiative aimed at reducing poverty in precarious neighbourhoods through integrated action in land-use planning, infrastructure, and the expansion of public utilities. This national programme relies on a formal partnership between the federal government and ading Mexico's states and municipalities; it has set ambitious targets to 2006. The programme has six related components: urban poverty reduction, assistance to female-headed households, physical upgrading of poor neighbourhoods, creating a land reserve for the construction of affordable housing, effective land use planning to manage marginal lands at risk from natural hazards, and the promotion of urban and social development institutions to support and implement urban local government initiatives for the poor. The government forecasts that in the next 25 years more than 80 percent of the country's population, will live in the urban and metropolitan areas, and at least 35 percent of them will be poor. Based on the highest concentrations of urban poor households, the programme was launched in 32 major cities in 2003. The physical upgrading component focuses on high-density neighbourhoods and slums with more than 500 households identified through citywide surveys. Provision of water, sanitation, and waste disposal, among other upgrading elements, are determined by the communities through a participatory process. CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 26 Frequently, these and other factors, such as to the residents' affordability constraints but built inappropriate standards and regulations, conspire to illegally on land bought from informal developers. make it impossible for either the market or local In the mid-1970s, the government changed its authorities to make available a sufficient quantity of strategy and started providing basic infrastructure ading well-located, serviceable, and affordable land to and services. Since this policy reform, some relieve pressure from overcrowded settlements and 250,000 units have been upgraded, benefiting about to anticipate future needs. 1.5 million people.Tunisia implemented an efficient slum upgrading policy on a sustained basis from Control of land is all too often connected to 1975 to 1994, which led to a decrease in the Upgr political patronage and corruption, often making it percentage of slums from 23.7 percent of the total difficult to obtain clear information about land housing stock in 1975 to 2.7 percent by 1994. ownership, land use, and availability.This is frequently compounded by administrative Brazil has been progressively designing and weaknesses in the local government system, as well implementing instruments to facilitate slum as outdated information within property cadastres. upgrading, with many innovations emerging at the local level before becoming more widely accepted. Countries that are committed to making real The Zones of Special Urbanisation (ZEIS) concept progress in reducing the size of existing slums and was first introduced in Recife in the 1980s and taking proactive developmental steps to prevent the subsequently adopted by several municipalities. Civil growth of new slums are implementing a variety of society pressure for policy reform, including from Nationwide policy reforms.These reforms focus on inclusion, organised housing movements, think tanks, and such as recognising the rights of the urban poor to academia, resulted in the recognition of housing as a ­ the city, providing them with access, and welcoming constitutional right in 2000. their contribution to the urban economy. In 2001, the Brazilian Federal Congress approved The case ofTunisia is instructive. Prior the 1970s, the City Statute, which incorporates a number of the government utilised a simple and repressive instruments that facilitate both slum regularisation `bulldozer' strategy which consisted of slum Scale and upgrading, including: demolition and the relocation of the inhabitants to ZEIS, which are local authority-demarcated rural areas from whence they were supposed to areas allowing for the application of more of have come. Financially and socially expensive, the flexible standards to promote upgrading and strategy failed, and in the 1970s a new type of slum protect the right to housing; emerged with better quality housing better adapted Morocco Morocco has been engaged in large-scale slum upgrading since the late 1980s and, from an early stage, recognised the need to take steps to anticipate future urbanisation. A parastatal agency, ANHI, was established and operates almost entirely on advances from project beneficiaries and a close working relationship with the Challenge private sector to finance its operations. Despite some notable successes, the country has found it difficult to maintain the momentum and get ahead of the demographic and poverty curves. In 2001, 56 percent of the country lived in urban areas, with 518,787 households living in housing developed by informal land sub-dividers without government approval, services, or The title and another 262,128 households living in rudimentary shelter (bidonvilles), often on marginal lands on the urban periphery. Yet another 90,000 households lived in deteriorating housing in old cities (medinas). The King reinvigorated the upgrading policy in 2001, when he identified it as one of four national priorities; he has now launched a ten-year programme to upgrade some 720,000 households. The renewed initiative will have three components: (a) in-situ upgrading, extending basic services, land tenure, and post-facto planning approval; (b) development of serviced resettlement plots with legal title; and (c) resettlement housing to assist bidonville households that need to be moved. 27 The Usucapião Especial Urbano, which allows for families (including low-income families on a collective basis) that have been occupying residential land for five uninterrupted years and Challenge without legal action by the land owner to be granted land ownership. In this way, an irregular settlement with 5,000 households can be regularised through the granting of a single Usucapião; Direito de Superficie, which allows housing regularisation through transfer of the surface right from the land owner to the occupier for a number of years; and of Dação em Pagamento, which enables an indebted landowner to donate the land to the Scale municipality in exchange for the debt. Soweto,South Africa The City Statute provides a framework for slum In South Africa, where the national housing upgrading, not only defining what to do, but also programme has been criticised for not sufficiently how to do it.The City Statute is innovative, path- undermining the spatial divisions created by breaking legislation. However, the challenge of apartheid, the Development Facilitation Act was ­ implementation lies ahead and will require similarly designed to provide fast-track mechanisms Nationwide significant training and capacity, as well as political to facilitate the land rights of the poor.Yet, a commitment, within the municipalities and the combination of bureaucratic weakness and judicial system alike. reluctance inhibited use of the legislation, preventing the desired impact.6 Upgr South Africa South Africa introduced its capital subsidy-based housing programme in 1994, the year of its transition from apartheid to democracy. The capital subsidy is generally sufficient to procure tenured land, install water and sanitation services, and, in most cases, construct a rudimentary formal housing unit. The government estimates ading that approximately 98 percent of all subsidies are allocated to the lowest-income households. Almost 1.5 million housing units were constructed in South Africa between 1994 and May 2003 as a direct result of the implementation of the national programme, with a further 300,000 housing units currently under development. The estimated current housing backlog remains high, at approximately 2.3 million households. Local governments are now assuming a more direct role in managing the subsidy scheme, identifying and releasing land to try to curb unplanned settlements. Complex urban renewal projects have been launched since 1994, including in-situ upgrading of informal settlements, the construction of new individual housing, and the conversion of buildings for residential occupation. Despite the success in production, concerns persist about the location and quality of houses, the weak consolidation process, the reluctant engagement of the private sector except as contractors, and the limited involvement of beneficiaries themselves. 6The Act has had an impact in promoting a number of key development principles, including integration, concentration, and the utilisation of existing infrastructure. CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 28 ading Upgr El Mina Kebbé,Nouakchott's largest slum,Mauritania In Mauritania, the government has been very have responded as decisively as Mauritania by forthright in identifying the problems associated committing to secure tenure for all as an integral with land management. In a formal statement of part of its national upgrading programme. Nationwide urban development policy, the government noted that "the existing legal framework governing land Like many other countries, and despite some very ­ tenure and urban development is incomplete and effective public-private partnerships, Morocco still has not been adapted to the prevailing situation. It suffers from a shortage of serviced land for low- was designed for centralised management and has income housing development. Some of the major discouraged the emergence of private planners and reasons for this include a lack of local capacity and real estate developers. Moreover, legislation finance, the inability of specialised government Scale governing land tenure does not allow rapid agencies to reach the necessary scale, and the mobilisation of land for urban expansion".7This inhibition of private sector participation due to the description of some of the problems associated with complexity of administrative procedures and lack of of its land markets would be substantially applicable in infrastructure. many countries around the world, although few Thailand Thailand has been developing its own approach to respond to the challenge of Cities Without Slums, now part of the national development agenda. Investments made by the government to support the mobilisation of slum communities and networks of slum communities, initially through savings and credit and subsequently through a Challenge broad variety of development activities, had created a sound basis for scaling up to a national programme. In 2003, the Thai government approved a national community upgrading programme that aims to achieve 200 cities without slums within five years. Since 1977, the National Housing Authority has been the sole agency developing low-income housing and The undertaking slum upgrading. In 1992, the government of Thailand established the Urban Community Development Office under the umbrella of the National Housing Authority. Its initial US$50 million capital base allowed it to make loans to organised communities for land acquisition, housing construction, neighbourhood improvement, and income generation. As community groups became stronger and more experienced and began developing links across cities, provinces, and regions, loans were increasingly provided to networks of community groups, and by 2000, 950 community savings groups had been established and supported in 53 of the country's 75 provinces. In the same year, the Urban Community Development Office merged with the Rural Development Fund to become a nationwide public organisation called the Community Organizations Development Institute. 7 Letter of Sector Policy issued by the Ministry of Economic Affairs and Development in June 2001 as part of developing Mauritania's PRSP. 29 The InVietnam the issuance of Building Ownership and Strategies for Moving Land Use Certificates on a large scale should greatly to Scale streamline land development procedures and help to speed up the process.At the same time, the Challenge government is revising construction standards with Dealing with the sheer scale of the backlog and a view to their simplification. anticipated growth is among the most daunting challenges facing developing countries.This is The lack of secure land tenure for the urban poor particularly the case in Africa and Asia, where many has long been a problem inThailand, often resulting cities will double in size over the next 15-20 years. in the eviction of poor families. One of the more The challenge of moving to scale has profound interesting and well-known innovations that has implications for official responses to slum upgrading been developed and implemented inThai cities is and cannot be satisfied by the traditional project- the strategy of land sharing, whereby communities based response, utilising off balance sheet-financing involved in land disputes have been able to negotiate often provided by international donors. of agreements with landowners in which some portion of the land is returned to the landowner, while the Among the most clearly identifiable requirements balance is sold, rented, or donated to the for scale delivery are: Scale community to redevelop their housing. Other Local government needs to make slum mechanisms include in-situ upgrading, reblocking, upgrading core business, particularly through a land readjustment, and relocation to land close by. budgetary commitment; Overall, the country reviews reveal the extent to The need to move away from single, non- ­ which those countries that have embraced replicable projects to rethinking the nationwide upgrading approaches have moved away fundamental workings of local government, Nationwide from a policy of forced evictions and become implying systemic reforms at local and national willing to consider a range of tenure options for the levels; and urban poor. Elsewhere in Africa and Asia, some The involvement and resources of slum governments still rely on forced evictions and have dwellers and the private sector, alike, need to not taken any steps to provide viable options for the be mobilised. urban poor to benefit from secure tenure, which directly undermines poverty reduction. Upgr Tunisia Tunisia recognised slums as an urban reality only in the late 1970s, after previously following a policy of slum demolition and the relocation of people to rural areas. After undertaking some foreign-funded upgrading programmes, the government created the Urban Upgrading and Renovation Agency in 1981, which provided a ading new impetus to slum upgrading. For the past 25 years, the Tunisian government has been strongly committed to integrating poor informal settlements into urban areas. It has created an institutional framework to encourage partnerships between the urban upgrading agency, municipalities, service providers and private developers, allowing Tunisia to reduce dramatically the number of households living in slums. The success of the Tunisian government is reflected in the small size of the outstanding backlog of 24,000 units, which the government expects to completely remove by 2006. Commitment to slum upgrading was constantly reaffirmed by the government in successive five-year Economic and Social Development Plans. This national commitment has been matched by the Tunisian municipalities in their Municipal Investment Plans and reflected in their annual municipal budgets. Between 1984 and 1994, the housing stock increased by 500,000 units, accompanied by a noticeable improvement in housing conditions as well as an excellent connection rate to the basic infrastructure. These improvements have had a particularly beneficial impact on women and have facilitated their greater involvement and productivity. CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 30 Some telling examples of the long-term nature of development of local plans for housing and city this challenge include the case of Morocco. Having development is emerging. In addition, local recognised the limits of its traditional approach to governments will now make direct financial housing provision, the government introduced a contributions to upgrading, and special local ading new approach in the late 1970s, decentralising some accounts will be created to enable local of the programme and moving away from the communities to finance their efforts to make subsidisation of formal housing in favour of housing improvements. legalising slum dwellers and promoting self-help construction. Tunisia's moves to scale delivery involve a complex Upgr institutional framework, with a range of institutions The creation of a national parastatal agency, the actively involved in the slum upgrading programme. National Shelter Upgrading Agency (ANHI), had These include the Housing Bank, the Solidarity some considerable success, and by 1991 it was the Bank, the Municipal Finance Authority, the National largest land developer in the country, working Solidarity Fund, various municipalities, and some closely with the private sector.Yet, for all of its NGOs and CBOs. Despite its numerous actors, the intent, government efforts to date have not been system is well structured and functions very well able to contain or limit the growth of substandard with overall responsibility vested with the Urban housing. By 2001 some 871,000 households Upgrading and Rehabilitation Agency (ARRU).The constituted a growing backlog. Some commentators success ofTunisia's slum upgrading policy derives, in have noted the lack of adequate participation from very large measure, from these sustainable Nationwide local authorities and civil society, with the role of institutional arrangements. central government being too dominant. ­ Brazil's cities are internationally recognised as The Moroccan government's response has been to incubators of policy innovation on a range of topics. reinvigorate the programme, and in 2001 the King One of the most comprehensive slum upgrading declared slum upgrading one of four national programmes over the past decade was Rio de priorities.A far greater emphasis on the Janeiro's Favela Bairro programme. Other major Scale of Vietnam While Vietnam does not yet have a national upgrading programme, the government is actively engaged in developing one, addressing the key policy changes that would be required. As part of this process, each province will be tasked with developing a five-year upgrading investment plan with a budget and financing proposals. The central government plans to work with donors to address the financing gap. Challenge The central government is already preparing related investment in several of the major cities. In addition, the government is considering its policy options to deal with an increasing rate of urbanisation, which will change the face of the country over the next two to three decades--the urban population is expected to increase by 15 million by 2020. The The emerging policy work is based on lessons learned from a number of small-scale pilot projects, the Vietnamese tradition of locally and community-financed `alley upgrading' schemes, and the Vietnam Urban Upgrading Project. A key element of these projects is the preparatory process of citywide, inclusive workshops to discuss the merits of in-situ upgrading and the challenges it offers in urban development for the country as a whole. The Vietnam Urban Upgrading Project includes the four cities of Can Tho, Haiphong, Nam Dinh, and Ho Chi Minh City. The initiative deals not only with in-situ urban upgrading, the provision of loans for housing improvements, and the provision of tenure security through the issuance of land-use certificates to slum dwellers, but also attempts to prevent the creation of new slums. Implementation will be the responsibility of the People's Committee in each city. Donors and the local women's unions, as well as a local bank for housing micro-finance, will be active partners. 31 The cities like São Paulo, with its Bairro Legal community organisations comes not only from their Programme, and Salvador8 are also developing organisation around savings and credit, but also citywide upgrading programmes, while the new through their networking approach, linking different national government aims to provide a nationwide communities with each other in order to strengthen Challenge framework as part of its mission to combat poverty their development capacity and learning. and hunger in an economy with wide income inequalities. In a significant shift in the public policy In January 2003, theThai government announced a paradigm, the new government created a Ministry new housing strategy, which includes 600,000 of Cities, an institutional recognition of the urban houses to be supplied by the National Housing reality of Brazil, where 82 percent of the Authority over five years and 400,000 housing loans population lives in cities. In June 2003, the to be provided through the Government Savings Ministry of Cities launched a national land Bank. In parallel, a new programme called Baan regularisation programme, Cidade Legal. Mekong is to be more directly aimed at slum dwellers.This programme, which will be of Many of the reforms that have been introduced in coordinated by the Community Organizations Brazil, Chile, South Africa, and Mexico have arisen, Development Institute (CODI), is designed to in part, from a combination of civil society upgrade some 300,000 units in 2,000 slums in 200 Scale engagement and pressure. In the case ofThailand, it cities over five years. is largely the activities of CBOs that have led the government to consider establishing a nationwide upgrading programme.The strength of theThai ­ Nationwide Upgr ading Upgrading in Salvador,Bahia,Brazil 8 In Salvador, the State Government of Bahia drives the process. CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 32 The Challenge of Scale ­ Nationwide Upgrading BRAZIL MEXICO CHILE MOROCCO Populationi 172.6m 100.0m 15.2m 30.4m Percent urban 82% 75% 86% 56% GNI/ capitaii US$3,060 US$5,540 US$4,350 US$1,180 Backlog (houses) 6.6miii No figures 77,000 871,000 National target Not yet setiv 170,000 units All by 2006 720,000 units Budget Budget not US$85m US$67m per US$2.0bn over finalisedv 2003-04 year 10 yearsvi Policy reforms City statute; New Habitat Reform of National and land issues emerging programme; housing policy, Programme for national focus on titling 2001; poorly the Reduction of programme;vii and ownership located Slums;viii scarcity scarcity of developments of serviced land serviced land Preventative Delimitation of Explicit policy, Through new Key feature of strategies ZEIS in vacant with 20% of programme, 10-year strategy land or in urban funds earmarked Fondo (2001) areas Concursableix Resettlement Generally Negotiated, Generally Generally policy avoided; in-situ generally slow, avoided; avoided; in-situ upgrades cumbersome exceptions for upgrades safety or cost Institutional Mainly local Coordinated Local authority- Centrally driven; arrangements government- national, local, driven Share limited local driven; national and community Action Plan participation policy process involvement Access to credit Very Limited Very Limited Some access, not Limted; new for poorest micro-credit initiative Subsidy Variable; no US$500 Variable; Variable; direct national maximum per US$6,750 and indirect standardx household, per maximumxi year Innovation Regularisation Upgrading Chile Barrio, Draft law to tools: ZEISxii located within combining promote and comprehensive housing, social, regulate poverty approach and economic participation interventions Major National Inadequate Organising Weak obstacles financial resources; integrated public community and constraints inadequate sector response local government coordination participation 33 TUNISIA MAURITANIA S. AFRICA VIETNAM THAILAND 9.5m 2.7m 43.8m 79.2m 63.6m 66% 59% 58% 25% 20% $2,070 US$350 US$2,900 US$410 US$1,970 24,000 120,000 2.3m No figures 1.6m All by 2006 All in 10 years No new target No target set 300,000 units by 2007 US$111m US$193m US$589m No upgrading US$590m over 5 years over 10 years 2003-04 budget over 5 years Five-Year Streamlined land Comprehensive Land Security of Development development; legislation;xiii certification; tenure for poor; Plans; scarcity anti-speculation improvements in standards Cities Without of affordable policy; secure land release; revisions; need Slums urban land tenure for all overemphasis on for open and ownership transparent land market Addressed Policy in place: sell More proactive Policies under New housing through scale high-cost plots to release of land for development; delivery and delivery subsidise for poor rapid settlement some site and locally devised service solutions In-situ Community Generally with Moves towards Local solutions; development involvement; community choices and in-situ financial package involvement; options upgrading; (US$293) Constitutional anti-eviction Court rulings Centrally National, with local Increasing role Mainly national, National and driven, strong government and by/for local some active local local levels; multisector specialised governments governments central role for support agencies CBOs Micro-credit Micro-credit through Very limited Very limited Collective loans and loans Twize Programme in model Variable; US$330xiv US$2,800 Cross-subsidies US$1,900 indirect (maximum); in projects maximum; subsidies indexed cheaper loansxv User-friendly Twize programme: Mayibuye Donor/ Many land-use environmental micro-credit, social Programme,xvi government mechanisms; checklist housing, and slum Grootboom court coordination community upgrading rulingxvii through Urban savings-driven Forum developmentxviii Weak Inappropriate Consolidation; Current lack of Stable funding; community standards; technical inflexible subsidy, policy and local government participation capacity for scale lack of credit budget support; technical capacity CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 34 The Challenge of Scale ­ Nationwide Upgrading Footnotes i Population figures (2000) are from Human Development Report 2002. New York and Oxford: Oxford University Press. UNDP. 2002. ii Gross national income per capita (2001). World Development Report 2003. New York: Oxford University Press. World Bank. 2003. iii The full backlog would also include a further 15 million substandard houses in need of rehabilitation. ading iv Many city governments have set their own targets. v In order to overcome the housing deficit in 10 years, the Brazilian government estimates it would need to allocate some US$45 billion per annum. vi This amount is 60 percent of estimated total cost of US$3.3 billion. vii The Ministry of Cities is designing a National Programme of Upgrading and Integration for the Regularisation of Precarious Settlements. viii Programme National de Resorption de l'Habitat Insalubre, created in 2001 as part of a policy favouring the preventative aspect of slum Upgr development. ix The Fund for Solidarity Shelter Projects (fondo concursable para proyectos habitacionales solidarios) was introduced in 2001 to help provide housing solutions for families below the poverty line. x Major upgrading programmes such as Guarapiranga and Favela Bairro have set their own subsidy levels at a maximum per family cost of US$3,500. xi Of a US$7,000 package for land, infrastructure, and house, the beneficiary would contribute US$250, the balance is subsidised. xii Various new instruments are being progressively implemented, including Usucapião Especial Urbano (land concession) and Direito de Superficie (Right to the Surface). xiii Including tenure protection legislation (Prevention of Illegal Eviction from and Unlawful Occupation of Land Act), planning legislation (Development Facilitation Act), and lending disclosure legislation modelled on the Community Reinvestment Act. xiv Of an estimated total cost of US$660, US$330 is provided by public subsidy, US$220 is paid by the beneficiary, and the balance raised as a loan. xv Thailand operates a sliding scale: US$600/unit for in-situ upgrading; US$1,200 for reblocking or landsharing, and US$1,900 for relocation. In addition, there is a three percent subsidy on housing and land purchase loans. Nationwide xvi Proactive policy for land release and informal settlement development by the Gauteng Provincial Government. ­ xvii In a landmark judgement (Government of South Africa versus Grootboom, 2000), the Constitutional Court ruled on the state's obligations (in terms of policies, programmes, and budgetary support) with regard to the right of access to housing. xviii An increasing feature of the Thai programme involves allowing communities to exercise control over the subsidy and to decide how to use it to redevelop their communities. Acknowledgments for Nationwide Upgrading Chapter Scale The Cities Alliance gratefully acknowledges the contributions to the nationwide upgrading chapter made by: of Elizabeth Anaya, Craig Davis Arzac, Somsook Boonyabancha,Alicia Casalis, Sylvie Debomy, Sateh Chafic El- Arnaout, Carien Engelbrecht, Jerry Erbach,Viviana Fernandez, George Gattoni, Rumana Huque, Priscila Izar, Tom Kerr, Peter Kimm, Fathi Kraiem, Barjor Mehta, Patricia Rivadeneyra, David Satterthwaite, and Anna Wellenstein. Challenge The 35 The Resource Mobilisation successful upgrading programmes where slum dwellers are partners contributing significant resources.To a large extent, the decentralisation of Inconstitute those countries where slum populations political power and responsibility has greatly a sizeable portion of the population ­ Challenge facilitated improved engagement between local and in many countries in Africa and Asia they now communities and public authorities.There has also constitute the majority of many cities ­ the been a dramatic change in the approach of many government is unlikely to have either the financial community organisations and non-governmental resources or the capacity to attempt nationwide organisations over the past two decades, shifting slum upgrading without leveraging very significant from a confrontational approach to the non-public sector resources. establishment of partnerships with both the local government and the private sector. Particularly in these circumstances, the key to success for city- and nationwide slum upgrading is However, low-income communities are still often the extent to which government budgets of regarded as inherently risky, with high transaction leverage non-state resources and investments. costs, small margins, and low turnover. Private Mobilising and supporting the energy and resources sector involvement in slum upgrading programmes Scale of the slum dwellers themselves, and women in is constrained by this risk assessment, yet, without particular, dramatically improves the sustainability of the active engagement of both slum dwellers and upgrading, which is a long-term, incremental the private sector, there is little chance of a slum process of consolidation and improvement. upgrading programme achieving scale or sustainability.Among the most significant challenges To facilitate this, governments need to provide a ­ for city and national governments is to create those long-term political vision for slum upgrading, with conditions in which the private sector assumes parts Nationwide its political commitment underwritten by or all of the development risk and does not act predictable and sustainable budgetary allocations, merely as a contractor for government-financed necessary policy reforms, and appropriate projects. institutional arrangements.These conditions are most likely to engage the resources of the slum Improving the financial management capacity of dwellers themselves, as well as the private sector. local governments is a crucial requirement in fostering risk-sharing and investment. Long-term While there are widely differing approaches to and predictable on-budget commitment to a providing financial assistance to support slum national programme combined with appropriate upgrading, all the countries surveyed make some policy measures can be instrumental in attracting form of financial contribution. Governments often non-public sector resources. regard the provision of upgrading infrastructure as a Upgr public good and thus recover the capital cost from The specific requirements of the urban poor the general tax base rather than seeking to charge themselves for access to credit to improve their the full cost to the recipient community. Ideally, this living conditions is also a part of the market that is is undertaken through transparent and explicit often not well understood. Many potential partners ading subsidy allocations within the national or city have yet to understand that a mortgage market is budgets. Generally, the financing for slum upgrading not a solution for the urban poor.The availability comes from a combination of the following sources: and viability of alternative sources of credit has been i. The national fiscus, increasingly reflected as an well captured in the Cities Alliance's Shelter Finance item in the national budget; for the Poor Series, which examines existing private ii. Local government contributions; shelter finance mechanisms that are targeting new financial products for housing tailored to the way iii. Beneficiary contributions, both in cash and the urban poor build: one wall at a time.9 in-kind; and iv. Private sector investments, including credit InTunisia, the government has continued to design, provided by the private sector. implement, and finance slum upgrading through its own resources, which has led to a substantial Meaningful community participation is increasingly increase in the level of domestic investments in slum universally recognised as indispensable to upgrading. development, and this is especially evident in 9 These studies were published in a series of CIVIS notes in 2002-2003; see www.citiesalliance.org. CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 36 An evaluation of the national parastatal,ANHI, in with an average of around US$4,600 but rising to Morocco showed that for every dollar spent in the US$6,750, which has to be met by a US$250 period 1984 to 1992, nearly six dollars were beneficiary contribution, with limited contribution invested by the private sector.The government has or investment anticipated from the private sector. ading continued to make significant budgetary allocations for slum upgrading.The total cost of the current Summary upgrading programme has been estimated at US$3.3 billion, of which 60 percent would be provided as government subsidies, 25 percent as case studies demonstrate a number of key Upgr These beneficiary contributions, and 15 percent through points, the first of which is that upgrading works commercial bank loans. Of the government and not just for the beneficiary community. Social contribution, 15-20 percent is expected to be and economic benefits accrue to the wider society provided by local government. and to the public and private sectors ­ upgrading constitutes a public good. The national upgrading programme inThailand has been greatly influenced by the demonstrated success However, the greatest impact is clearly on the lives of poor communities and community networks in of slum dwellers in general, and women and mobilising people and resources through savings and children in particular. InTunisia, a formal review of credit schemes managed by slum communities the upgrading programme revealed how access to themselves.These initiatives have also demonstrated urban services has significantly relieved women of Nationwide the critical leadership role of women in the some painful housekeeping tasks.This, combined development of upgrading programmes. with the opening up and better communication of ­ their previously excluded neighbourhood with the At this level of the housing market, it is often the rest of the city allowed women to better intervene small scale informal private sector that is most likely in the schooling and education of their children, the to respond to opportunity. In Brazil, for example, accompaniment of their small children, and the 4.4 million housing units were produced between follow up of vaccines and treatments for the whole Scale 1995 and 1999. Of these, the formal market family.12 produced only 700,000, or 16 percent.10 The political will to undertake and sustain of Some governments have had less success in nationwide upgrading has been demonstrated in leveraging private sector financing.The South these case studies.There is evidence that this African government's recent decision to increase the political will is growing and that more countries will capital subsidy to a maximum of some US$2,800 soon rise to this challenge of inclusion by developing and undertaking to index it to inflation is largely a nationwide slum upgrading strategies. For instance, reflection of the programme's inability to attract the newly elected President Kibaki of Kenya, a significant non-public sector resources.Attempting country struggling with the consequences of over to move away from subsidy-only supply, the two decades of bad governance, corruption, and government has also introduced a requirement for economic decline, recently posed the question: beneficiary equity and has tabled legislation "How did we sink so low, to a point where 5 million Challenge modelled on the U.S. Community Reinvestment people in urban areas live in slums and informal Act in an attempt to induce the banks into this settlements?"13. Hopefully, his question will mark a market. new beginning for Kenya's slum dwellers. The Chile's original national programme was designed While there is no single model or approach that to combine government subsidy, beneficiary savings, applies to all situations, it is possible to discern both and both commercial and government credit. It was some trends and some strategic elements that are largely successful, mobilising nearly US$500 million key to nationwide slum upgrading. It is clear that, at in the savings accounts of over a million households least in some countries, the worst policy approaches by 1995, and reducing the housing deficit from are on their way out.These include mass forced 800,000 to 600,000 between 1991 and 1995.11 evictions, direct housing delivery by central The new programme is designed to reach the very governments, the building of high-rise apartments poorest who have not yet received assistance, and for the urban poor, and the constant relocation of Chile has now increased the subsidy contribution, the urban poor to the peri-urban periphery. 10Instituto Cidadania. Projeto Moradia (2nd edition). São Paulo, Brazil. 2002. 11A. Gilbert. "What might South Africa have learned about housing subsidies from Chile?" South African Geographical Journal. 82 (1). 2000. 12F. Kraiem. "Evaluating Slum Upgrading Programs in Morocco and Tunisia". Report prepared for the Cities Alliance and the World Bank. June 2003. 13Opening address to an Urban Housing Workshop, Nairobi, 9 June 2003. 37 The Other major problems persist: most state assistance On the positive side of the equation, it is possible to consistently fails to reach the very poorest, and observe how much the international focus on good governments need to redouble their efforts to governance is increasingly impacting at city and prevent what is known as`middle-class' capture.At national levels.The emphasis on transparent and Challenge best rigid and at worst dysfunctional, land markets accountable behaviour by all levels of government, remain a major obstacle, often because of an the subsidiarity principle of devolving powers and unwillingness to tackle vested interests, introduce responsibilities to their lowest effective level, and full transparency, and simplify regulations for the the importance of treating the urban poor as citizens transfer and development of urban land. For their all contribute to creating a climate in which slum part, many international aid agencies continue to upgrading and poverty reduction programmes are provide support to cities on a sectoral, project- enhanced. based approach. Overall, the message contained in this report is one Yet the demographic evidence forcefully underlines of hope.A number of governments, including those of the importance of urgent action, and the covered in this review, are increasingly reaching out consequences of inaction, by national and local and responding to communities of slum dwellers in governments. In Latin America most of the an attempt to promote real improvements in their Scale population is urban, yet populations in cities and living conditions. City and national governments slums are still increasing at alarming rates due to alike are moving beyond short-term projects to internal growth. In Africa and Asia, however, long-term approaches designed to tackle the existing slums will continue to grow and new ones systemic causes that have lead to social exclusion will be continually created for at least the next two and economic decline.This is a good beginning and ­ to three decades unless governments combine the needs to be reinforced by a much more discerning vision and resources to anticipate and provide for and coherent response from their international Nationwide this certain urban growth. development partners. Essential Ingredients of Nationwide Slum Upgrading 1. Demonstrate political will Both national and local governments must provide the vision, commitment, and leadership required to sustain nationwide upgrading. Upgr 2. Set national and city targets Set clear targets and ensure public sector accountability by engaging stakeholders in planning and monitoring results. 3. Put it in the budget ading Support slum upgrading as part of core business, nationally and locally. 4. Implement policy reforms Ensure necessary reforms dealing with land, finance, and institutional frameworks. 5. Ensure open and transparent land markets Reform closed and opaque land markets which encourage corruption, patronage, and exploitation of the urban poor, as well as constrain capital markets. 6. Mobilise non-public sector resources Engage slum dwellers themselves, who have both the ability and the interest in promoting upgrading, and the private sector, which should be engaged as a risk-sharing partner rather than a mere contractor to the public sector. 7. Prevent the growth of new slums Facilitate access to land and services by planning realistically for future growth. CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 38 Learning and The Alliance's learning agenda is now also sequenced to achieve greater efficiency and synergy Knowledge Sharing with its annual meetings.As is described below, one of our most important learning products this year is the series of case studies ­ commissioned under the F rom the outset, a principle factor motivating Alliance's Shelter Finance for the Poor Initiative ­ Cities Alliance members to join forces has been Sharing which has now been published as a new CIVIS series their recognition that they have much to learn devoted to shelter finance for the poor.The lessons from each other and that drawing on the collective learned from the financial institutions that partnered experience of cities and their development partners with Alliance members in this initiative are the areas will help fill critical knowledge gaps. Supporting of focus of the Alliance's Public Policy Forum (PPF) this learning process involves analysing and sharing in São Paulo in October 2003, along with issues lessons from experience and fostering the use of related to how cities in developing country can more effective tools, policy options, and standards more effectively mobilise domestic capital. of practice. Sustainable financing strategies for cities, including how cities mobilise domestic capital will, in turn, be Learning and knowledge sharing take place as an the focus of the Alliance's next strategic learning integral part of the activities the Alliance supports initiative, which will be launched drawing on the Knowledge worldwide. Lessons learned are analysed in the results of the PPF. evaluation of these activities, as well as by proactively targeting key knowledge gaps.These learning and knowledge-sharing activities are and carried out in partnership with national associations of local authorities, urban institutes, and universities in countries where Alliance partners support CDS and citywide upgrading.The Alliance is also increasingly engaging the dissemination capacity of its members and its NGO, CBO, and private sector partners to expand the reach of these activities to urban development practitioners worldwide. Learning Drawing on the related recommendations of the independent evaluation of the Alliance, the Policy Advisory Board (PAB), and the Consultative Group, the Alliance's`learning alliance' functions were more clearly structured during the course of this year to strengthen their impact.At its October meeting in Brussels, the Consultative Group endorsed the key elements of the Alliance's Communications and Dissemination Strategy (see next page). In addition, a framework for the evaluation of completed Alliance activities was developed this year to ensure that the lessons learned are systematically extracted Peshawar CDS consultation,Pakistan from all Alliance activities. 39 Learning Communications and Dissemination Strategy The Cities Alliance seeks to advance the collective know-how of city authorities and their development partners on how to reduce urban poverty and improve the quality and impact of urban development cooperation. Its communications strategy supports a learning process among all its partners and includes sharing lessons and fostering the use of more effective tools, policy options, and standards of practice. The effectiveness of its dissemination strategy depends not only on the quality and appropriateness of the outputs but also on having these outputs reach those who can make use of them in a form that encourages their use. and Learning, dissemination, and communication: Key principles Maintain sharp focus on agreed-upon knowledge gaps; Knowledge Engage learning, dissemination, and communications capacities of Alliance members (associations of local authorities, bilaterals, and multilaterals); and Make Alliance information easily accessible, in multiple languages. The Learning Alliance The Secretariat is to focus on content, ensuring that core knowledge is extracted from the Alliance's work programme by analysing and distilling lessons and best practices, helping to address key knowledge gaps, identifying effective tools, and managing archive databases; Monitoring and evaluation of results and lessons learned: Engage the existing monitoring and evaluation capacities of Alliance members to analyse outcomes and garner lessons, best practices, and tools from CDS and upgrading activities; Sharing Funding to fill knowledge gaps: Alliance members can initiate and/or sponsor `learning' proposals that address knowledge gaps. PAB and the Consultative Group help define critical gaps that need to be filled to support the Alliance's goals, e.g., learning from cities that have sustained impacts on poverty reduction, strategies to prevent the growth of new slums, etc. Knowledge sharing: Dissemination strategy Associations of local authorities serve as key `wholesalers' for their members, with support of bilateral and multilateral Alliance members; reaching out through their existing networks; Alliance members disseminate Alliance knowledge outputs within the frameworks of their own existing publications (newsletters, etc.); Additional dissemination partners, with well-developed capacities to reach urban development practitioners worldwide, engage in the preparation, packaging, and dissemination of knowledge products. Communications strategy Public Relations: Manage the profile of the Alliance as a global partnership and establish and maintain relations with the Alliance's key constituents and clients, including cities, local authority associations, representatives of the urban poor, the private sector, national authorities, and the international development community; Advocacy to catalyse action: Launch a concerted and coordinated effort to mount campaigns for action at global, regional, and/or country level, including the Cities Without Slums Millennium Development Goal; Systematic engagement with the media: Alliance members are to actively reach out to the media with Alliance materials, establishing contacts with local newspapers, radio, and television to cultivate dissemination outlets by developing briefing documents for journalists and providing field-trips for journalists to visit particular projects or programmes. CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 40 Learning Alliance in Action Scaling up Shelter Finance for the Poor: in 2003 What Role for Governments and Investment Partners? Recommendations to governments: Shelter Finance for the Urban Poor: Private Sector Innovations Establish a conducive macroeconomic financial Sharing and regulatory framework for housing finance; Lack of access to formal sources of credit by Recognise that poor people build their houses hundreds of millions of slum dwellers is one of incrementally, and set policies and regulations in the most significant obstacles to the reduction of accordance; urban poverty, hampering not only the Recognise that the poor value access to credit improvement of shelter conditions, but also local more than its cost; economic development. Ensure secure tenure; and The Cities Alliance Shelter Finance for the Poor Provide basic infrastructure and social services in Initiative was designed to respond to both client poor neighborhoods. demand and to the growing capacity of private Recommendations to investment partners: Knowledge sector financial institutions. Many of these have experience in serving the urban poor and are now Work with governments that seek to promote looking to expand their services to include housing enabling macroeconomic and financial policies loans to poor clients on commercially viable terms and regulatory frameworks that encourage and tailored to incremental building processes. housing finance institutions to serve low-income and Funded jointly with CGAP, the IFC, and USAID, the clients; Alliance launched this initiative in partnership with Partner with financial institutions with proven private financial institutions.The objective was to track records, emphasising financial sustainability examine shelter financing through the prism of and portfolio quality as key criteria for selection; scale, sustainability, and outreach to the poor to Provide medium-term capital to financial better understand emerging practise and how institutions; formal private sector financial institutions, governments, and donors might best support it. Provide funds for building institutional capacity, Learning not just for on-lending; This framework was applied to five case studies: Avoid conditions on funds that can (inadvertently) Mibanco in Peru; SEWA Bank in India; FUNHAVI, reduce the ability to experiment with housing an NGO in Mexico; a government-supported finance; and second-tier finance facility in Ecuador; and a study Support applied research and its dissemination. of the enabling environment for shelter finance in Kenya.A synthesis paper has been produced, Source: Cities Alliance Shelter Finance for the Poor Series Synthesis. CIVIS Issue 4v.April 2003. identifying policy recommendations on taking shelter finance for the poor to scale. The findings are being disseminated widely to New Learning Alliance inform and promote this emerging practise, inspire Partnerships replication and adaptation, and to help mobilise the Indissemination medium-term capital required to increase the accordance with the its communications and availability and affordability of shelter finance for the strategy, this year the Alliance world's poorest households.There is considerable strengthened its partnerships with the IIED and demand for these learning products, and in addition ISTED, which each have well-developed substantive to being made available on the websites of the capacities and mailing lists to reach urban Alliance and CGAP's Microfinance Gateway, development practitioners worldwide. importantly they have also been incorporated into practitioner course materials, including in the IIED, a non-profit policy research institute, Wharton School's Housing Finance programme, the publishes an internationally respected journal on University of Colorado-Boulder's annual urban development, Environment and Urbanization, microfinance course, and theWorld Bank Institute's and produces working papers and policy briefs on global learning events. urban poverty reduction. IIED and the Alliance are 41 Learning already working together on several joint initiatives Strengthening CDS related to the CitiesWithout Slums action plan and Knowledge Base MDGTarget 11, as well as exploring together how Theexpanding.AUDI best to share Alliance learning products with the Alliance's partnership with AUDI is also close to 9,000 urban specialists, practitioners, and is becoming a significant institutions on IIED's mailing list. partner in Alliance activities in the Middle East and North Africa region, working closely with theWorld ISTED, a non-profit organisation which also has an Bank and other partners to facilitate the design and extensive network of urban practitioners, supports implementation of CDS in the region. and research, workshops, and seminars and publishes one of the most widely disseminated newsletters, CDS were the focus of an Alliance workshop on Villes en Développement, in French and English. poverty reduction hosted by the ADB in Manila, ISTED has already included Alliance material in Philippines, in May 2003.The Philippines has had a Knowledge Villes en Développement, and this collaboration is set very active CDS programme and the event, which to expand this coming year to promote the Cities was attended by a number of mayors and urban Alliance partnership, share knowledge and development practitioners, provided an opportunity experiences from Alliance activities, and improve for substantive discussion of CDS experiences and the availability and dissemination of information and lessons learned. publications connected to the Alliance and its activities. ISTED and the Alliance are also March 2003 saw the addition of a new network to collaborating in preparation for the Cities Alliance the Asian City Network (www.infocity.org): CDS session at Africités 2003 (Yaoundé, Cameroon, 2-6 Indonesia (www.cdsindonesia.org). Linking December 2003). Indonesian cities with civil society, the private sector, donors, and other Asian cities, the Indonesian Sharing IIED, ISTED,AUDI, the University of São Paulo, City Network portal, developed with support from and other Alliance partners have been working to the Cities Alliance and theWorld Bank, was make Alliance information more accessible and in designed not only to serve as a knowledge-sharing multiple languages.A user-friendly guide to the platform and to link cities with interested donors Cities Alliance and its funding application and private investors, but to encourage citizen procedures has also been developed by the participation in city development and increase Secretariat and will support the Alliance's outreach transparency, as performance indicators are posted initiatives. on the website. The CDS section of the Cities Alliance's website was revamped in FY03 to offer a more comprehensive database of CDS experiences around the world, including Alliance-supported CDS, as well as tools, guidelines, and resources. Learning excange in Pune,India CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 42 See charter at Cities Alliance website, www.citiesalliance.org Organisation InConsultative accordance with its charter, the governance and organisational structure of the Cities Alliance includes a Group, a Policy Advisory Board, and a Secretariat. The Consultative Group The Consultative Group ­ the Alliance'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 Organisation Group is composed of financial contributors to the Cities AllianceTrust Fund and the political heads of the major global organisations of local authorities who have pledged their commitment to achieving Alliance goals.The Consultative Group is co-chaired by theWorld Bank'sVice President for Infrastructure and UN- HABITAT's Executive Director. Prospective financial contributors may serve as Associate Members for a period agreed to by the Consultative Group. Membership in the Cities Alliance has continued to grow with UNEP formally joining in 2003. 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 standards of practice in areas related to the Alliance'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 Berlin, December 1999: inaugural meeting, launch of CitiesWithout Slums action plan, and approval of Charter and 2000 work programme. Montreal, June 2000: first Public Policy Forum on the dimensions of pro-poor urban policies, Consultative Group review of application guidelines, and approval of Cities AllianceVision statement. Rome, December 2000: second Public Policy Forum on`Local Partnerships: Moving to Scale', Consultative Group approval of Charter amendments, 2001 work programme, and procedures to establish Policy Advisory Board and Steering Committee. Kolkata, December 2001: third Public Policy Forum on`Sustainable Partnerships for City Development', Consultative Group review of procedures for the independent evaluation of the Cities Alliance, and approval of 2002 work programme. Brussels, October 2002: panel discussion at the European Commission on`Achieving the Millennium Development Goal of CitiesWithout Slums', Consultative Group review of the independent evaluation of the Cities Alliance, and approval of 2003 work programme. 43 Organisation Consultative Group Members ­ June 2003* Local Authorities International Union of Local Authorities (IULA) Unification of FMCU-UTO and IULA Metropolis FMCU-UTO and IULA are to unite in 2004 to form `United Cities and Local Governments'. The new global World Federation of United Cities (FMCU-UTO) organisation will be headquartered in Barcelona. Its founding Congress is scheduled to take place in Paris World Associations of Cities and Local Authorities in May 2004. Coordination (WACLAC) Governments Canada France Germany Italy Japan The Netherlands Norway Sweden United Kingdom United States Multilateral Organisations Asian Development Bank United Nations Environment Programme UN-HABITAT World Bank The 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 implementation 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 year and is composed of eight members who serve two-year terms on a rotational basis. Six members were nominated initially (two from Africa, two from Asia, one from Latin American and the Caribbean, and one from the North).The board's two newest members,Yousef Hiasat from the Arab States and AnaVasilache from Eastern Europe, were confirmed this year by the Consultative Group. The Policy Advisory Board held its first meeting June 11-12, 2001, at the United Nations headquarters in NewYork, on the occasion of the General Assembly's special session on Istanbul+5. In October 2002, board members participated in a panel discussion on achieving the Millennium Development Goal of CitiesWithout Slums, hosted by the European Commission in Brussels on the occasion ofWorld Habitat Day. Moderated by a BBC journalist, board member panelists provided different regional and substantive perspectives on improving the living conditions of slum dwellers, yet conveyed uniform messages: cities and urbanisation are here to stay; the urban poor should be engaged as partners not problems; and they should be viewed as citizens not simply project beneficiaries. Scaling up to meet the CitiesWithout Slums goal, members concluded, demands that attention equally be paid to preventing the growth of new slums. In April 2003, board members met inWashington, D.C., to continue discussions on meeting the Cities Without Slums MDGTarget and review the thematic content of the Public Policy Forum to be held in São Paulo, Brazil, in FY04. Policy Advisory Board Members ­ June 2003 The board brings together civic leaders and policy advisors with a formidable range of public and private sector expertise that 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 worldwide. Somsook Boonyabancha, Director of the Community Organizations Development Institute of the National Housing Authority ofThailand;Advisor to the Crown Property Bureau on slum improvement and land-sharing; and Secretary General of the Asian Coalition for Housing Rights, a regional coalition of NGOs, community organisations, and professionals based in Bangkok. CitiesAlliance C i t i e s W i t h o u t S l u m s * Associate members that have attended meetings of the Consultative Group include: the African Development Bank, Austria, Denmark, the 2003 European Commission, Finland, Spain, the UNDP, UNICEF, and the ILO. ANNUAL REPORT 44 Yousef Hiasat, Director General of BeitAl-Mal Saving and Investment for Housing Corporation inAmman, Jordan; former Director General of Jordan's Housing and Urban Development Corporation; and former Principal Advisor to the Minister of Planning on housing and urban development issues. Mary Houghton, President and Director of Shorebank Corporation in Chicago, USA, a US$1.35 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. Akin L. Mabogunje, Chairman of the Presidential Committee on Urban Development and Housing, Nigeria; Chairman of the Board ofTrustees, Ijebu-Ode Development Board for Poverty Reduction; and an Organisation 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, Coordinator of the Municipal Development Programme,West and Central Africa, based in Cotonou, Benin; Special Advisor to the Union of African Cities; and an experienced practitioner in urban management and slum upgrading. Sheela Patel, 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 CBOs of the urban poor and the promotion of women's savings and credit schemes as a means to community mobilisation. AnaVasilache, founding Director of Partners Romania Foundation for Local Development (FPDL), a Bucharest-based NGO, supporting democractic processes of governance, decentralisation, and strengthening managerial capacities of local governments; former Head of the Settlements Management Office in the Ministry of PublicWorks and Regional Planning in Bucharest; and has extensive experience with planning legislation. RichardWebb, former President of the Central Bank of Peru; former President of Banco Latino in Lima; former Director of the Instituto Cuanto; and a widely published scholar on public policy, income distribution, poverty, and economic reform. The Secretariat The Alliance Secretariat is a small team, housed at theWorld Bank headquarters, that carries out the Alliance's mandate and manages its operations. Secretariat Staff Manager, Mark Hildebrand Senior Urban Upgrading Advisor, William Cobbett Senior CDS Advisor, Peter Palesch Senior Urban Finance Advisor, Mohini Malhotra* Programme Analyst, Andrea Merrick Operations Officer, Kevin Milroy Resource Management Assistant, Françoise Aubry-Kendall Financial Management Consultant, V. Rama Krishnan Regional Advisors Latin America and Caribbean, Ivo Imparato South Asia, Alison Barrett *through January 2003 45 F Financials engagement of cities in Africa in designing citywide inancials strategies to meet the CitiesWithout Slums MDG Target 11. In addition, SIDA contributed US$215,000 to support a full-time advisor from the Members continue strong Southern Africa region to work with cities and support in FY03 Alliance members in support of these efforts. Norway also provided US$250,000 co-financing for the South African Cities Network. C ities Alliance members announced new financial commitments of more than US$16.5 million The United States committed US$2 million during during FY03, including US$5 million in new FY03 to launch the CommunityWater and Core funding, US$5 million earmarked for special Sanitation Facility.This Facility targets achieving Cities Alliance financing facilities, and more than MDGTargets 10 and 11 together by supporting US$5 million for a statewide slum upgrading community-initiated construction of improved programme in Brazil. More than US$57 million in water and sanitation services within the framework financial commitments have been made to the of citywide slum upgrading strategies. Alliance during its first four years. SIDA also made a 20 million Kroner (US$2.3 Nearly US$17 million in contributions were paid in million) commitment to CLIFF, earmarked to during the year, and more than US$7.7 million in support community-led development projects in new funding allocations were approved. Of this, India. UK's DFID established CLIFF in FY02 with a US$4.1 million was approved from Core funds, an £6.84 commitment (US$10 million). Homeless amount similar to FY02, for programmes in 16 International, a UK-based NGO, implements the countries in all developing regions. In accordance Facility and is also contributing US$2 million in with the Consultative Group's decision, the Alliance credit guarantees. began funding the Secretariat from Core funds in FY03.The Secretariat budget is supplemented Italy announced a major new Non-Core through seconded staff and other Non-Core commitment of 5 million to support a statewide contributions. upgrading programme in Bahia, Brazil.This new grant will help the State scale up its successful Alliance members launched two special facilities experiences in Salvador, Bahia, also supported by during the year to help meet water and sanitation Italian cooperation. MDGTargets in slums and to provide special assistance to cities in Africa.The governments of Japan continued its strong support for CDS Norway and the United States provided seed activities in Asia, committing an additional funding totaling US$775,000 to establish the Cities US$750,000 in Non-Core funds. Without Slums Facility for Sub-Saharan Africa.The initial funding is being used to help cities design The sources and uses of Alliance funding are CDS and slum upgrading programmes and to summarised on the next two pages, followed by a prepare funding applications for the Cities Alliance. listing of activities approved to date in each region. The Facility is already helping to strengthen the $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 CitiesAlliance C i t i e s W i t h o u t S l u m s Cities Alliance Commitments to Date: US$57.5 million 2003 ANNUAL REPORT 46 SOURCES OF FUNDS FY00-FY03 (Unaudited) (U.S. dollars as of 30 June 2003)* Summary Pledges Paid-In Core Funding 21,000,000 15,603,269 Non-Core Funding 31,060,000 13,736,879 Non-Core Secretariat Funding 5,420,000 4,650,000 inancials Total Funding 57,480,000 33,990,148 F Core Funding Pledges Duration Paid In** Asian Dev. Bank 250,000 2002 250,000 Canada 750,000 2000-2001, 2003 774,822 France 500,000 2000, 2002 483,496 Germany 1,000,000 2000-2003 1,141,964 Italy 1,370,000 2000-2003 1,165,526 Japan 1,250,000 2000-2003 1,000,000 The Netherlands 2,500,000 2000-2003 2,500,000 Norway 1,230,000 2000-2003 1,242,038 Sweden 750,000 2000-2002 717,794 UNEP 250,000 2003 0 United Kingdom 6,000,000 2000-2005 3,177,629 United States 1,000,000 2000-2003 700,000 World Bank 4,150,000 2002-2004 2,450,000 Total Core 21,000,000 15,603,269 Non Core Funding*** Italy 10,975,000 2001-2006 3,528,445 Japan 2,750,000 2000-2003 2,000,000 Netherlands 50,000 2003 50,000 Norway 925,000 2003 924,592 Sweden 2,515,000 2003-2005 1,282,281 United Kingdom 11,045,000 2001-2007 5,251,561 United States 2,100,000 2003-2004 0 World Bank 700,000 2001 700,000 Total Non-Core 31,060,000 13,736,879 Non-Core Secretariat Funding**** World Bank 2,950,000 2000-2002 2,950,000 UN-HABITAT 1,450,000 2000-2005 1,070,000 Other 1,020,000 2001-2005 630,000 Total 5,420,000 4,650,000 * Fiscal year covers the period July 1 to June 30. ** Amounts may vary from amount pledged due to exchange rate fluctuation. *** Non-Core funding is earmarked for specific region or type of activity. Italy funding is earmarked for Salvador, Bahia, Brazil slum upgrading programme, as well as a new commitment for a statewide programme, and for other Latin America and Caribbean activities; Japan for Asian CDS networking activities; Netherlands for pro-poor LED in Africa; Norway for the Cities Without Slums Facility for Africa and co-financing for the South African Cities Network; Sweden for CLIFF and for an Africa regional advisor; DFID for CLIFF, for a South Asia regional advisor, co-financing for China city-region CDS, and for the Kolkata PPF; the United States for the Community Water and Sanitation Facility and for the Cities Without Slums Facility for Africa; and World Bank to support United Nations partnerships. In addition, the Asian Development Bank is financing parallel activities. **** Secretariat funding includes in-kind funding for staff secondments from UN-HABITAT, Germany and U.K. 47 F USES OF FUNDS FY00-FY03 (Unaudited) inancials (U.S. dollars as of 30 June 2003) Summary FY03 Cumulative Allocations Disbursements Allocations Disbursements Core Activities 4,110,328 3,787,618 16,619,478 8,815,823 Non-Core Activities 4,052,620 5,886,994 25,384,620 12,106,931 Total Uses of Funds 8,162,948 9,674,612 42,004,098 20,922,754 Approvals byType of Activity FY03 Cumulative Core Funds Non-Core Funds Core Funds Non-Core Funds City Development Strategies 953,427 191,620 4,875,012 1,791,620 Scaling up Upgrading 860,306 2,336,000 5,849,371 17,336,000 Both CDS & Upgrading 1,196,595 1,065,000 4,795,095 1,607,000 Secretariat 1,100,000 460,000 1,100,000 4,670,000 Total Approved Grants 4,110,328 4,052,620 16,619,478 25,404,620 Approvals by Region FY03 Cumulative Core Funds Non-Core Funds Core Funds Non-Core Funds Sub-Saharan Africa 500,000 692,620 3,286,640 692,620 Asia 535,640 600,000 4,698,705 1,750,000 E. Europe & C.Asia 458,427 0 858,227 0 Latin America & Caribbean 748,400 0 3,364,045 5,475,000 M. East & N.Africa 320,000 0 895,000 0 Global/ Multi-Regional 447,861 2,300,000 2,416,861 12,817,000 Secretariat 1,100,000 460,000 1,100,000 4,670,000 Total Approved Grants 4,110,328 4,052,620 16,619,478 25,404,620 Secretariat Expenditures FY03 FY02 FY01 Cumulative Operational: Secretariat Staff 451,443 625,295 527,215 1,799,953 Consultants, Other Labour 26,847 70,819 104,000 420,666 Travel 207,533 208,708 117,000 654,241 Other Costs 77,840 71,926 72,000 611,766 Sub-Total 763,663 976,748 820,215 3,486,626 Management & Administration: Secretariat Staff 601,218 533,784 428,785 1,860,787 Rent, Computing, Other Costs* 160,311 146,030 7,000 333,341 Sub-Total 761,529 679,814 435,785 2,194,128 Total Secretariat Expenses 1,525,193 1,656,562 1,256,000 5,680,755 * FY01 rent and computing costs were incorporated as part of staff payroll costs. CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 48 APPROVED PARTNERSHIP ALLOCATIONS (As of 30 June 2003) Allocation Start Country Activity Title Amount (US$) Date SUB-SAHARAN AFRICA REGION inancials 380,640 Mar-03 Burkina Faso CDS and Local PRSPs for the Local Governments of F Bobo-Dioulasso, Banfora and Ouahigouya 249,000 Jun-02 Ethiopia Addis Ababa CDS FY03 75,000 Jul-03 Ghana Preparing for a City Development Strategy in the Kumasi Region of Ghana 0 cancelled Kenya Nairobi CDS and Upgrading of Informal Settlements 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 for Antananarivo- Infrastructure Development, Urban Services Improvement and City Poverty Strategy 75,000 completed Mauritania Slum Upgrading and Urban Poverty Alleviation Jun-01 495,000 Jul-02 Mozambique Slum Upgrading andVulnerability Reduction in Flood Prone Cities/Towns in Mozambique FY03 41,870 Jul-03 Multi-Country Preparation of the Johannesburg­ Addis Ababa Partnership Programme (JAAPP) 254,000 completed Nigeria Scaling up Upgrading through a CDS Approach in Karu Jun-03 FY03 74,750 Feb-03 Nigeria Preparatory Assistance for Lagos Strategy Development 100,000 completed Regional Regional Roundtable on Upgrading Low-Income Settlements Oct-01 in Africa FY03 215,000 Jul-03 Regional Building Partnerships for CitiesWithout Slums in Eastern & Southern Africa 165,000 completed Rwanda Kigali Economic Development Strategy May-02 350,000 completed South Africa Johannesburg City Level Comprehesive Development Mar-02 Framework 40,000 completed South Africa Preparation of Southern Africa Cities Alliance Mar-02 FY03 750,000 Dec-02 South Africa South African Cities Support and Learning Network (SACN) FY03 36,000 Jul-03 Swaziland Preparation of the Mbabane Comprehensive Slum Upgrading and Finance Programme (MUFP) 49 F Allocation Start Country Activity Title Amount (US$) Date inancials ASIA REGION 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 FY03 600,000 Sep-02 Asia Regional South Asia Regional Advisor 0 cancelled Bangladesh Khulna: Options for Sustainable Upgrading Jan-02 185,000 Mar-01 Cambodia Scaling up Community-Driven Development Process in Phnom Penh FY03 54,640 Mar-03 Cambodia ImprovingTenure Security and New Housing Options for the Urban Poor in Phnom Penh 500,000 completed China Metropolitan Level CDS in One Major City-Region and One Dec-02 Provincial Capital 250,000 completed China Changsha City-Region, Guiyang and Shengyan City Development Dec-02 Strategies: Urban Indicators Project 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 150,000 completed India City-Wide Scaling Up of Slum Upgrading (Ahmedabad) Feb-03 387,000 Cancelled India Creating Community Federations for Urban Partnerships (Orissa) 98,065 Feb-03 India Improving Access of Poor to Basic Urban Services in the Ludhiana Municipal Corporation FY03 450,000 Feb-03 India Scaling-up the Provision of Universal Minimum Sanitation to Slums in Cities 30,000 completed Indonesia Proposal Preparation: Poverty-focused CDS 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 Assistance Program Apr-01 150,000 completed Pakistan CDS and CitiesWithout Slums initiative for Peshawar Jun-03 30,000 completed Philippines Proposal Preparation: Expansion of the CDS Program May-01 600,000 May-01 Philippines Upscaling Poverty-Focused CDSs FY03 31,000 Jun-03 Philippines Preparation of a Proposal on Strengthening Urban Shelter Programs in the Philippines 300,000 Apr-01 Vietnam Enhancing Access of the Urban Poor andVulnerable Groups to Basic Infrastructure and Housing CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 50 Allocation Start Country Activity Title Amount (US$) Date 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 inancials Jun-01 F 249,800 completed Bulgaria Sofia CDS - Phase II Jun-03 FY03 458,427 Mar-03 Latvia Latvia Cities Program - CDS for Economic Development LATIN AMERICA & CARIBBEAN REGION 195,000 Approved Bolivia Slum Improvement and Disaster Management Mitigation in the Jun-02 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 Social Assistance Project 300,000 Jun-02 Brazil "Bairro Legal" program (Sao Paulo) 165,700 Feb-02 Brazil Anti-Poverty and Anti-Exclusion Socio Economic Action Plan: City Networks for Development & Social Inclusion (Rio Grande do Sul) 96,000 completed Central America Urban Review Jul-01 84,000 completed Central America Regional Coordination towards a Sustained Programme for Sept-02 Upgrading FY03 498,400 Approved Chile Local Development Strategies for Housing Solutions to Jun-03 Overcome Poverty 320,000 Mar-01 El Salvador Improving Execution Capacity for Urban Upgrading Program in Metropolitan Area of San Salvador 256,445 Nov-02 Jamaica The Kingston and St.Andrew Sustainable 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 FY03 250,000 Nov-02 Peru Metropolitan Lima City Poverty Strategy MIDDLE EAST & NORTH AFRICA REGION 130,000 completed Egypt Upgrading Informal Areas in Ismailia Mar-02 Governorate FY03 75,000 Dec-02 Iran National Dialogue on City-Wide Slum Upgrading 295,000 Aug-01 Morocco Upgrading Project for the Koraat Sbaa Neighborhood inTetouan FY03 245,000 Apr-03 Morocco Metropolitan Cooperation in theTetouan Region: the Role of CDS 150,000 Feb-02 Yemen Aden Medium to Long-Term CDS for Local Economic Development 51 F Allocation Start Country Activity Title Amount (US$) Date inancials GLOBAL & MULTI-REGIONAL ACTIVITIES 50,000 completed Global Urban Indicators Linkages Jul-02 150,000 Mar-00 Global Preparatory Assistance Fund 49,000 Mar-00 Global Cities AllianceWebsite 50,000 Nov-01 Global Knowledge Dissemination - increase (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 FY03 287,000 Jun-00 Global CG/PPF Meetings, cumulative 70,000 May-01 Global Policy Advisory Board Meetings, cumulative 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 FY03 30,000 Jun-00 Global Technical Peer Reviews, cumulative 500,000 Sep-01 Global Pro-Poor Slum Upgrading Frameworks in India, the Philippines and South Africa 210,000 completed Global Housing Finance for the Poor -- Innovations and Good Practices Jun-03 from the Field 450,000 completed Global Consolidation of the Experience from Seven City Development Mar-02 Strategies of the UMP 10,000,000 Oct-02 Global Development of the Community-led Infrastructure Finance Facility (CLIFF) - DFID funding FY03 2,300,000 Apr-03 Global CLIFF - SIDA funding 195,000 completed Global Cities Alliance Independent Evaluation Nov-02 300,000 Cancelled Regional Regional Action Plans FY03 13,195 completed Global International Mechanisms to Promote Alternatives to Forced Oct-02 Evictions FY03 249,666 Feb-03 Global Building a Solid Foundation: Overcoming the Obstacles to Scaleability of Housing Microfinance for the Poor FY03 100,000 Jul-02 Global Knowledge Generation & Learning FY03 1,100,000 Jul-02 Global Secretariat Budget 37,354,098 TOTAL APPROVED ALLOCATIONS CitiesAlliance C i t i e s W i t h o u t S l u m s 2003 ANNUAL REPORT 52 Acronyms ADB Asian Development Bank IDB Inter-American Development Bank AfD Agence française de développement IFC International Finance Corporation [French Development Agency] IIED Institute for Environment and Development ANHI Agence Nationale de lutte contre l'Habitat ILO International Labour Organization Insalubre [National Shelter Upgrading Agency] ISTED L'Institut des Sciences et desTechniques de ARRU Agence de Réhabilitation et de Rénovation l'Equipement et de l'Environnement pour le Urbaine [Urban Upgrading and Rehabilitation Développement. Agency] KfW Kreditanstalt fürWiederaufbau [German AUDI Arab Urban Development Institute Development Bank] AVSI AssociazioneVolontari per il Servizio MDG Millennium Development Goals Internazionale (Association ofVolunteers in NEPAD New Partnership for Africa's Development International Service) NGO non-governmental organisation CBO community-based organisation PRSP Poverty Reduction Strategy Paper CDS city development strategies SACN South African Cities Network CGAP Consultative Group to Assist the Poorest SDC Swiss Agency for Development and Cooperation CIDA Canadian International Development Agency SEWA Self-employedWomen's Association CLIFF Community-Led Infrastructure Finance Facility SIDA Swedish International Development Cooperation DFID Department for International Development(UK) Agency EBRD European Bank for Reconstruction and UN-HABITAT United Nations Human Settlements Programme Development UNDP United Nations Development Programme EU European Union UNEP United Nations Environment Programme FUNHAVI Fundación Habitat yVivienda,A.C. UNICEF United Nations Children's Fund GEF Global Environment Facility USAID U.S.Agency for International Development GTZ Gesellschaft fürTechnische Zusammenarbeit (German Agency forTechnical Cooperation) Photo Credits Cover: Caroline Suzman © 2003 Page 2: JeffersonVieira © 2003 Page 6: Caroline Suzman © 2003 Page 9: William Cobbett Page 10:Ahmed Eiweida Page 16: Ijaz Rizvi Page 19: JeffersonVieira © 2003 Page 23: Caroline Suzman © 2003 Page 25:Agence de Développement Urbain Page 27: Caroline Suzman © 2003 Page 28:Alicia Casalis Page 31: JeffersonVieira © 2003 Page 38: Shahnaz Arshad Page 41: Rosanna Nitti Contributors Beth Goodrich: 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