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Affordable housing, infrastructure and urban development
HABITAT Pergamon
INTL.
Vol. 18, No. 2, pp. 99-101. 1994 Elsevier Science Ltd Printed in Great Britain. 0197-3975/94 $7.00+0.00
0197-3975(94)EOOlbR
CONFERENCE
REPORT
Affordable Housing, Infrastructure and Urban Development Seventh International Congress on Human Settlements in Developing Countries, Calcutta, India, 4-6 November, 1993 K.P. BHATTACHARYA
Centre for Human Settlements International, Calcutta, India The problem of providing affordable housing and infrastructure to the economically weaker section (EWS) of the population in developing countries was the focal theme of the Seventh International Congress on Human Settlements in Developing Countries. The Conference underscored the need to define housing as a priority sector and that building construction activities be declared as an industry so that it has access to all fiscal and tax benefits which are available to all other Indian industries. The conference concluded that the problem of providing affordable housing to the urban poor is aggravated by limited allocations of budgetary resources by the governments of developing countries. It was the unanimous opinion of the Congress that higher budgetary allocations for the housing sector, particularly for the EWS is essential. Speakers presenting their views, despite their varied starting points, came to the conclusion that affordable housing and infrastructure must be made accessible to the EWS of the population. Discussions covered such issues as housing policy, income earning issues, savings and rent affordability, housing delivery, infrastructure, finance, legislation and innovative building technology. With respect to housing policy in developing countries, Santosh Bhattacharya (former vice-chancellor of University of Calcutta) recommended that governments of developing countries must plan for the growing number of urban poor and provide affordable land, infrastructure and housing. He also urged that governments must modify their housing policies to ensure that policies are implemented and that the benefits of the policies actually reach the identified beneficiaries. Moreover, there must be proper accountability of all public investments in housing. The Conference underscored the need that each developing country must have a housing policy to guide housing development activity in a planned manner. Ziaush Haq (Dhaka University) argued that the Bangladesh Government must implement its housing policy effectively to guide the nation’s housing programme. Arcot Ramachandran (former Under Secretary General and Executive Director of the United Nations Centre for Human Settlements) stated that there is an urgent need to establish a dynamic human settlements management framework which should be able to influence resource allocation by the governments and their decision making process so that national objectives are achieved by each 99
country. He argued that sound rural development will contribute to sustainable urban development. Emphasising the deteriorating living conditions of the urban poor in developing countries, K.P. Bhattacharya (Executive Director of the Centre for Human Settlements International) stated that about 30% of the urban population in developing countries do not have access to minimum shelter, safe water and sanitation. Access to land with infrastructure is a precondition to adequate housing for all and to achieve this central and state governments must intervene. He stressed that affordability of households must be given due consideration prior to undertaking any housing programme. He further emphasised that such programmes should be closely linked to income generation activities to enable the urban poor to be able to afford their own houses and to maintain them. This proposal was subsequently supported by A.N. Sachithanandan in his presentation, when he stated that the location of lower income dwellings is closely linked to employment centres. Location of housing complexes should be closely linked to transportation networks. K.P. Bhattacharya noted that studies conducted by him in Calcutta, Bombay, Madras and New Delhi indicated that conferment of tenureship to the households will enable residents to pay higher rents and to improve upon their houses. This proposal was further confirmed by C. Thangavel (Anna University) in his case study Income and Rent Affordability of theEcono~~cffZZy Weaker Section Pop~~~t~on in Madras. He observed that the EWS households are willing to increase their spending on housing provided some form of ownership or tenureship is granted to the households. He also observed that the EWS households who had settled in the fringe area of the city moved back to the city since they could not afford the expenses involved in commuting daily. He concluded that “affordability is a problem for a certain percentage of EWS population who do not have a secure income”. Animesh Haldar (Socio-economic Cell of Calcutta Metropolitan Development Authority), while presenting his paper confirmed that the urban poor population in metropolitan cities is growing on account of wage differentials between rural and urban centres and earning opportunities in cities. His observations were based on studies within the City of Calcutta. Bearing in mind that land is scarce in metropolitan cities, he argued for intensive development of existing slums in a planned manner to accommodate more households. To achieve this he suggested that the local community within the slums be involved. He further explained that in order to improve the quality and availability of infrastructure and services their efficiency must be improved by involving the private sector. This calls for a fresh look and the adoption of new policies and the involvement of the beneficiaries. Continuing the discussion on the issue of providing minimum basic services to the growing urban population in cities, Sami S. Ahmed (Institute of Social Sciences, New Delhi) suggested that though more investment in infrastructure is essential to augment the services, in view of new economic policies and directives from the international funding agencies, there will be less investment in infrastructure and services by the governments of developing countries in future. He suggested that there is a need for integration of income generation programmes with the basic services development schemes. It was unanimously agreed by various speakers that there is an urgent need to introduce a greater number of income generation schemes to improve the income of the EWS of the urban population as only then will these households be able to afford housing and basic services. Income generation schemes should be permitted within housing projects and/or within close proximity to the housing complex. A neighbourhood community should be formed to maintain the services and the funds to support this activity should be contributed by the beneficiaries. Since rhe cost of houses needs to be reduced to make them affordable. the last
Conference
Report
101
session of the Congress was devoted to development and use of indigenous materials for construction. This was also seen as a way of reducing the cost of maintenance of houses. There was a unanimous opinion among the speakers and delegates that participation of beneficiaries is essential for the success of programmes. The speakers and participants at the Congress felt satisfied with deliberations of the Congress and resolved to pursue them further at future congresses.
INTL.
Vol. 18, No. 2, pp. 99-101. 1994 Elsevier Science Ltd Printed in Great Britain. 0197-3975/94 $7.00+0.00
0197-3975(94)EOOlbR
CONFERENCE
REPORT
Affordable Housing, Infrastructure and Urban Development Seventh International Congress on Human Settlements in Developing Countries, Calcutta, India, 4-6 November, 1993 K.P. BHATTACHARYA
Centre for Human Settlements International, Calcutta, India The problem of providing affordable housing and infrastructure to the economically weaker section (EWS) of the population in developing countries was the focal theme of the Seventh International Congress on Human Settlements in Developing Countries. The Conference underscored the need to define housing as a priority sector and that building construction activities be declared as an industry so that it has access to all fiscal and tax benefits which are available to all other Indian industries. The conference concluded that the problem of providing affordable housing to the urban poor is aggravated by limited allocations of budgetary resources by the governments of developing countries. It was the unanimous opinion of the Congress that higher budgetary allocations for the housing sector, particularly for the EWS is essential. Speakers presenting their views, despite their varied starting points, came to the conclusion that affordable housing and infrastructure must be made accessible to the EWS of the population. Discussions covered such issues as housing policy, income earning issues, savings and rent affordability, housing delivery, infrastructure, finance, legislation and innovative building technology. With respect to housing policy in developing countries, Santosh Bhattacharya (former vice-chancellor of University of Calcutta) recommended that governments of developing countries must plan for the growing number of urban poor and provide affordable land, infrastructure and housing. He also urged that governments must modify their housing policies to ensure that policies are implemented and that the benefits of the policies actually reach the identified beneficiaries. Moreover, there must be proper accountability of all public investments in housing. The Conference underscored the need that each developing country must have a housing policy to guide housing development activity in a planned manner. Ziaush Haq (Dhaka University) argued that the Bangladesh Government must implement its housing policy effectively to guide the nation’s housing programme. Arcot Ramachandran (former Under Secretary General and Executive Director of the United Nations Centre for Human Settlements) stated that there is an urgent need to establish a dynamic human settlements management framework which should be able to influence resource allocation by the governments and their decision making process so that national objectives are achieved by each 99
country. He argued that sound rural development will contribute to sustainable urban development. Emphasising the deteriorating living conditions of the urban poor in developing countries, K.P. Bhattacharya (Executive Director of the Centre for Human Settlements International) stated that about 30% of the urban population in developing countries do not have access to minimum shelter, safe water and sanitation. Access to land with infrastructure is a precondition to adequate housing for all and to achieve this central and state governments must intervene. He stressed that affordability of households must be given due consideration prior to undertaking any housing programme. He further emphasised that such programmes should be closely linked to income generation activities to enable the urban poor to be able to afford their own houses and to maintain them. This proposal was subsequently supported by A.N. Sachithanandan in his presentation, when he stated that the location of lower income dwellings is closely linked to employment centres. Location of housing complexes should be closely linked to transportation networks. K.P. Bhattacharya noted that studies conducted by him in Calcutta, Bombay, Madras and New Delhi indicated that conferment of tenureship to the households will enable residents to pay higher rents and to improve upon their houses. This proposal was further confirmed by C. Thangavel (Anna University) in his case study Income and Rent Affordability of theEcono~~cffZZy Weaker Section Pop~~~t~on in Madras. He observed that the EWS households are willing to increase their spending on housing provided some form of ownership or tenureship is granted to the households. He also observed that the EWS households who had settled in the fringe area of the city moved back to the city since they could not afford the expenses involved in commuting daily. He concluded that “affordability is a problem for a certain percentage of EWS population who do not have a secure income”. Animesh Haldar (Socio-economic Cell of Calcutta Metropolitan Development Authority), while presenting his paper confirmed that the urban poor population in metropolitan cities is growing on account of wage differentials between rural and urban centres and earning opportunities in cities. His observations were based on studies within the City of Calcutta. Bearing in mind that land is scarce in metropolitan cities, he argued for intensive development of existing slums in a planned manner to accommodate more households. To achieve this he suggested that the local community within the slums be involved. He further explained that in order to improve the quality and availability of infrastructure and services their efficiency must be improved by involving the private sector. This calls for a fresh look and the adoption of new policies and the involvement of the beneficiaries. Continuing the discussion on the issue of providing minimum basic services to the growing urban population in cities, Sami S. Ahmed (Institute of Social Sciences, New Delhi) suggested that though more investment in infrastructure is essential to augment the services, in view of new economic policies and directives from the international funding agencies, there will be less investment in infrastructure and services by the governments of developing countries in future. He suggested that there is a need for integration of income generation programmes with the basic services development schemes. It was unanimously agreed by various speakers that there is an urgent need to introduce a greater number of income generation schemes to improve the income of the EWS of the urban population as only then will these households be able to afford housing and basic services. Income generation schemes should be permitted within housing projects and/or within close proximity to the housing complex. A neighbourhood community should be formed to maintain the services and the funds to support this activity should be contributed by the beneficiaries. Since rhe cost of houses needs to be reduced to make them affordable. the last
Conference
Report
101
session of the Congress was devoted to development and use of indigenous materials for construction. This was also seen as a way of reducing the cost of maintenance of houses. There was a unanimous opinion among the speakers and delegates that participation of beneficiaries is essential for the success of programmes. The speakers and participants at the Congress felt satisfied with deliberations of the Congress and resolved to pursue them further at future congresses.