1165
THE CHALLENGE OF THE LAST FEW YEARS: PLANNING AGAINST
POVERTY, MICROFINANCE
Giuseppe Ca a
P o a Uni e si y o Pale mo
Facul y o A chi ec u e
Viale Campania, 14 – PA Pale mo 90144 I aly
gca a1939@libe o.i
+39 091521553
Key wo ds: Soul, Cohesion, U ban, Policies.
Abs ac
“Nisi es in in ellec u quod p ius non ue i in sensu”, John Locke, 1690.
The las en yea s ha e wi nessed a heigh ened in e es in in as uc u e in bo h de eloped and
de eloping coun ies, wi h emphasis on he inancial c isis in de eloped coun ies, and he
ecu ing a en ion on g ow h and po e y educ ion. An edi ion o he UN Repo unde lines he
choices a ailable o policymake s ac oss he ange o economic, social, cul u al and poli ical
challenges ha a e needed o b idge he u ban di ide.
The e m “inequali y” has many di e en meanings. Sho ly we desc ibe how an indica o o
economic well-being is dis ibu ed o e a pa icula popula ion. The coe icien o index is
commonly used o measu ing he g ade o di e ence in size, income, weal h, cos s, e c. Gini’s
Coe icien (1921). Ob iously he index only conside s one aspec o di e ence, ha o he
dis ibu ion o income. The e ec o social se ices which a e adminis e ed di ec ly, as o
example, he Heal h Se ice and Educa ion, e en hough hey a e ex emely impo an o a
subs an ial equali y o igh s and oppo uni ies, is no aken in o accoun .
As a g oup o eminen planning expe s ecognized in he Global Repo on Human Se lemen s
2009: “Among he mos signi ican challenges ha u ban planning has o add ess in he nex
ew decades a e inc easing po e y and inequali y, as well as he apidly expanding u ban
sec o .” U baniza ion, he e o e, does indeed play a posi i e ole in o e all po e y educ ion,
pa icula ly whe e suppo ed by well-adap ed policies.
The challenge o he las ew yea s: planning agains po e y,
mic o inance
“Nisi es in in ellec u quod p ius non ue i in sensu”, John Locke, 1690.
The las en yea s ha e wi nessed a heigh ened in e es in in as uc u e in bo h de eloped and
de eloping coun ies, wi h emphasis on he inancial c isis in de eloped coun ies, and he
ecu ing a en ion on g ow h and po e y educ ion in de eloping coun ies. O he
1166
cha ac e is ics desc ibe in as uc u e as essen ially public goods. Inc easingly, he meaning o
in as uc u e has been shi ing om one ocusing on physical ixed asse s such as oads,
ai po s, sea po s, elecommunica ions sys ems, wa e dis ibu ion sys ems and sani a ion. I
now o en embodies no ions such as knowledge bases (Bu on, 2002).
In gene al in as uc u e can be ca ego ized in o ‘ha d’ in as uc u e and ‘so ’ in as uc u e.
The o me e e s o physical s uc u es o acili ies ha suppo he socie y and economy, such
as anspo (po s, oads and ailways); ene gy (elec ici y, elec ical g ids, gas and oil
pipelines); elecommunica ions ( elephone and in e ne ); and, basic u ili ies (wa e supply,
hospi als and heal h clinics, schools, i iga ion, e c.). The la e suppo s he de elopmen and
ope a ion o ha d in as uc u e, such as policy and ins i u ional amewo ks; go e nance
mechanisms; sys ems and p ocedu es; and anspa ency o inancing and p ocu emen
sys ems. B oadly de ined, he e o e, in as uc u e e e s o all basic inpu s o he p ope
unc ioning o he economy. In spi e o his, he e a e wo ca ego ies economic and social
in as uc u e, adop ed in he ‘Millennium Decla a ion, 1990- 2015, whe e 48 quan i iable
indica o s a e se ou .
The mos ele an in e ac ions on cu en u ban issues ake place wi h Repo s o he Uni ed
Na ions. I is he enue o na ional go e nmen agencies, local au ho i ies, he academe, ci il
socie y and p i a e sec o ac o s om all o e he wo ld o ind syne gies and explo e
collabo a ion. The UN add essed he u ban di ide, no ing ha much o he wo ld is
simul aneously ending owa d inc eased u baniza ion, leading o he c ea ion o hype -
seg ega ed ci ies due o poo u ban managemen p ac ices. An edi ion o he UN Repo
unde lines he choices a ailable o policymake s ac oss he ange o economic, social, cul u al
and poli ical challenges ha a e needed o b idge he u ban di ide. I cha s a new cou se o
ac ion, wi h he s eps and le e s needed o achie e a mo e inclusi e ci y, emphasizing he need
o comp ehensi e and in eg a ed esponses ha go beyond sho - e m pe spec i e. Indeed
o e he las 20 yea s, many u ban a eas ha e expe ienced d ama ic g ow h, as a esul o he
apid popula ion g ow h, and he wo ld’s economy has been ans o med by a combina ion o
apid echnological and poli ical change. An es ima ed h ee billion people – i ually hal o he
wo ld’s o al popula ion now li e in u ban se lemen s 1. And, while ci ies and owns command
an inc easingly dominan ole in he global economy as cen es o bo h p oduc ion and
consump ion, an uncon olled and apid u ban g ow h in pa icula in he de eloping wo ld is
hampe ing he capaci y o mos ci ies o p o ide adequa e se ices o hei ci izens. Gene ally,
i has been unde s ood ha he g ow h in mos pa s o he de eloping wo ld has been d i en
mainly by u al mig a ion.
1 In Oc obe 2012, he Wo ld U ban Fo um in Napoli (UN-Habi a and Commission on Human
Se lemen s) he Commission eques ed “ o p omo e a me ge o he U ban En i onmen Fo um
and he In e na ional Fo um on U ban Po e y”. The Wo ld U ban Fo um was he p emie
con e ence on ci ies, as well as he majo global ga he ing o ac o s conce ned wi h he
planning, go e nance and managemen o u ban a eas.
1167
Howe e , in his p ocess, he u al-u ban mig a ion can no longe espond o all he ecen
changes and ans o ma ions which ha e aken place in he wo ld’s ci ies. Beyond he u al -
u ban mig a ion wa es, an eme ging end shows ha in a-u ban mig a ions, and he
p ocesses o “ eclassi ica ion”, which consis s o a g adual ans o ma ion o se e al u al a eas
in o new u ban cen es con ibu e o he agg a a ion o he u ban li ing s anda ds o he mos
ulne able po ions o he popula ion in se e al wo ld’s ci ies. Indeed, he eme gence o new
global issues and o ces, including high le els o in e nal and ans na ional mig a ion,
globaliza ion, clima e change, ising u ban insecu i y and c ime, human-caused disas e s and
con lic s, and ising in o mali y wi hin ci ies a e in e ela ed wi h he in e nal dynamic o g ow h o
ci ies hemsel es.
Economic in as uc u e is also pa o an economy’s capi al s ock used o acili a e economic
p oduc ion, o se e as inpu s o p oduc ion (e.g. elec ici y, oads, and po s). This helps o
p oduce i ems ha a e consumed by households (e.g. wa e , sani a ion and elec ici y). Social
in as uc u e, on he o he hand, encompasses se ices such as heal h, educa ion and
ec ea ion. I has a di ec impac on he quali y o li e wi h he a endan posi i e e ec s on
e icien use o na ional esou ces and on po e y alle ia ion2.
The “ igh o he ci y” has e ol ed o e he pas wo cen u ies as a challenge o he exclusiona y
de elopmen and ma ginaliza ion ha a e ampan in ci ies oday. Mo e han a new legalis ic
de ice, he igh o he ci y is he exp ession o he deep yea nings o dwelle s o e ec i e
ecogni ion o hei a ious igh s. The concep has been deployed in a ious ways ac oss
egions, coun ies and ci ies o he wo ld. In some places i has been used as a heo e ical and
poli ical amewo k ocusing on en o cemen , empowe men , pa icipa ion, sel -de e mina ion
and a ious o ms o human igh s p o ec ion a he ci y le el. Some de eloping coun ies ha e
made signi ican e o s o close he u ban di ide as pa o a less speci ic “ igh s-based”
app oach, o only ecognizing some pa icula aspec s o he igh o he ci y.
UN policy analysis shows ha mo e o en han no p ocesses do no ma ch because hey ail o
acknowledge he linkages among he dimensions o he inclusi e ci y – economic, social,
poli ical, and cul u al. Admi edly, ci ies will, ime and again, adop new ules in a bid o add ess
some exclusion ela ed issues; bu hese ail o spell ou speci ic goal and sus ained p ocesses.
The mos impo an ac o s ha p e en ci ies om b idging he u ban di ide, include:
1) poo coo dina ion among a ious ie s o go e nmen . Today, mo e and mo e au ho i ies
sha e he same basic philosophy: b inging go e nmen wi hin he each o o dina y people
h ough enhanced mu ual engagemen . The physical space is becoming a poli ical space in
e ms o sys ems o ep esen a ion and pa icipa ion and in his sense is a undamen al aspec
o local democ acy.
2) absence o scien i ic da a o in o med policy choices. Only hose ci ies able o emb ace
di e en pa e ns o add ess inequali ies and ine iciencies will be able o p o ide be e li es o
hei esiden s, while limi ing ecological damage. The u u e o ci ies will depend on which
models can be de ised and implemen ed o build a new ype o ci y.
2 M. Ca a, Piani ica e la complessi à, Pale mo 1990.
1168
3) Exclusion o ma ginalized g oups and disc imina ion o mino i ies; he U ban Di ide can be
cha ac e ized by a ious o ms o inclusion/exclusion, in eg a ion/ma ginaliza ion, weal h/
po e y, equali y/inequali y. Those on he w ong side o he di ide a e excluded om he
bene i s o u ban expansion and p ospe i y.
I is no su p ising ha a policy analysis su ey pe cei ed u ban e o ms as se ing p ima ily he
in e es s o he ich, wi h poli icians and ci il se an s coming nex . The u ban poo s and o
sha e only a minimal ex en , i a all, in any bene i s acc uing om u baniza ion and ela ed
e o ms.
This imbalance is e y much in luenced by man 's a i udes and alues, and pa icula ly by he
inadequacies o adi ional me hods o o mula ing a ge s. The e a e also ex e nal in luences
a ising om p essu e g oups – he p i a e p ope y - p opaganda and media. When hese
unc ions a e conside ed in a balanced and in e connec ed way, op imum solu ions should
eme ge, which no only make he bes use o a ailable esou ces a he p ope ime, bu should
encou age a 'con iden ' esponse om he communi y.
Social di isions can pe mea e in e ac ions amongs indi iduals e en in he absence o
signi ican e hnic, acial o o he ac o s o seg ega ion.
The Millennium De elopmen Goal was widely adop ed, namely in 2015 o educe by hal he
p opo ion o people li ing in ex eme po e y. Bu qui e wha his a ge migh mean is obscu ed
by he bewilde ing ambigui y wi h which he e m ‘po e y’ is used, and by he pecunia y
indica o s p oposed o moni o i . Po e y o en appea s as an elusi e concep , especially om
he pe spec i es o policy make s in de eloping coun ies. The bes de ini ion o po e y
emains a di e en a gumen . Pe haps he only poin o gene al ag eemen is ha people who
li e in po e y mus be in a s a e o dep i a ion; ha is, a s a e in which hei s anda d o li ing
alls below minimum accep able s anda ds.
In gene al, po e y is a condi ion ha is expe ienced o e ime and is he ou come o a p ocess.
While many a e bo n in o po e y and emain in i , o he s expe ience he condi ion a one o
mo e s ages o hei li e ha dep i e people o hei human igh s and esul in inequi able and
agmen ed socie ies. The Human De elopmen Repo (2001) no es ha 70 pe cen o he
wo ld’s poo a e emale. The 2000/2001 Wo ld De elopmen Repo (Wo ld Bank, 2001)
iden i ies h ee b oad dimensions o po e y ela ing o lack o income, insecu i y and lack o
poli ical oice. The Ox o d Po e y and Human De elopmen Ini ia i e ecen ly un eiled an
inno a i e new “mul idimensional” measu e o people li ing in po e y, known as he
Mul idimensional Po e y Index o MPI.
The s udies e iewed all look a in as uc u e’s con ibu ion o economic g ow h a he han
speci ically po e y and inequali y. Some e idence sugges s ha ce ain ypes o in as uc u e
se ice p o ision, such as oads and anspo , ha e a po en ial con ibu ion o ag icul u al
ou pu , and ha in as uc u e imp o emen s (in elec ici y supply, anspo and
elecommunica ions) in small owns con ibu e signi ican ly o indus ial g ow h and employmen .
1169
On he whole, he e idence shows ha public in es men on in as uc u e, especially on u al
oads, imp o es local communi y and ma ke de elopmen 3.
This s udy sugges s ha , while in as uc u e in es men needs o be e y subs an ial and mus
be suppo ed by ac o s such as imp o emen in social in as uc u e so as o p omo e apid
educ ions in po e y, high le els o pe sonal and poli ical co up ion, acili a ed by weak
sys ems, ha e hinde ed a demand-led app oach, in es men choices and encou aged neglec
o main enance. Too o en, he e ha e been nega i e a he han posi i e consequences o
poo people, including en i onmen al damage.
We li e in a new u ban e a wi h mos o humani y now li ing in owns and ci ies. Global po e y
is mo ing in o ci ies, mos ly in de eloping coun ies, in a p ocess we call he u banisa ion o
po e y. The wo ld’s slums a e g owing as a e he global u ban popula ions. Indeed, his is one
o he g ea es challenges we ace in he new millennium. The links be ween mic o inance and
he Millennium De elopmen Goals mus be emphasised because bo h sphe es o e lap in he
c ucial domain o wo ldwide po e y educ ion. The o e lap is such ha mic o inance can open
up o he poo .
I mic o inance is o accele a e Millennium Goal achie emen , he deg ee and na u e o dono
and public sec o suppo o mic o inance mus change. Mic o inance p o ide s do need o
ecoup ope a ional cos s, bu his does no p e en hem om using subsidies o he mo e
ulne able poo and ma ke . The Millennium De elopmen Goals has enabled he Uni ed
Na ions o claim a cen al ole in in e na ional app oaches. As a measu e o po e y, he
Millennium Goals a e a comp omise, bu hey se e o highligh he many dimensions ha
po e y can ake. One can a gue ha he Goals do no do jus ice o he di e ences be ween
u al and u ban po e y o o he dep i a ions ha bese millions o e ugees and homeless
people in he wo ld. While he ul ima e goal is o e adica e all ex eme po e y, he immedia e
a ge is o hal e he numbe o people in ex eme po e y by 2015 compa ed wi h 1990. Fo
example, while he wo ld oday p oduces mo e han enough o eed e e yone. Social secu i y
has a ole he e, especially wi h ega d o unde weigh p e-school and school age child en.
Fo una ely, mo e han one gene a ion o expe ience wi h mic o inance is now a ailable ac oss
he globe on which ins i u ions can call o ensu e ha mic o inance loans a e no only p o-poo ,
bu accessible and sui ed o hei needs. This is especially so among he u ban poo who ha e
ew oppo uni ies o g ow hei own ood. Howe e , among he u al poo highe a m-ga e
p ices a e a boon.
Mic o inance has enabled e en he poo es ag icul u al households o eap he bene i s o
highe a m ga e p ices, inancing he alue chains ha connec poo u al households wi h new
ma ke s. This kind o end is consis en wi h educed unemploymen and mo e oppo uni ies o
he ex eme poo o ind be e -paid jobs in less isky a eas o p oduc ion. The li e a u e on
ex eme po e y is no as abundan o ex ensi e as ha on po e y in gene al. The needs o
3 Fo example, ehabili a ion o u al oads aises male ag icul u al wages and agg ega e c op
indices in poo illages o Bangladesh. Likewise, in Vie nam public in es men in in as uc u e
has esul ed in an inc ease in he a ailabili y o ood, he comple ion a es o p ima y school and
he wages o ag icul u al wo ke s.

1170
hose a he bo om o he po e y py amid a e no ma e ially di e en om hose o he poo in
gene al. In eali y, hose needs and ci cums ances a e di e en in impo an ways, pa icula ly
he way hey manage money and deal wi h isk.
The concep o "adequa e housing" is slowly bu su ely becoming in e na ionally accep ed as a
basis o policies and p og ammes aimed a add essing he needs o low-income communi ies.
The sec ion p esen s concep s essen ial o unde s anding low-income housing, and explo es
he easons behind he se ious lack o decen , a o dable housing in ci ies –and hence he
p oblem o u ban slums by examining al e na i e s a egies abou wha o do abou exis ing
slum condi ions and in o mal se lemen s, and how o a oid u u e slums h ough he p oduc ion
o new housing. Finally, he guide examines he main conside a ions needed o add ess he
imp o emen o in o mal se lemen s and he p oduc ion o adequa e and a o dable low-income
housing on a ci y-wide scale.
Go e nmen and policy make s need o quickly enhance hei unde s anding o low-income
housing issues in ci ies in pa icula , because he housing si ua ions and needs o u al
communi ies a e o en qui e di e en om hose o ci y dwelle s.
P oduc i e dynamic demands unde s anding o wha is going on in ci ies and hough ul policy
esponses o hese de elopmen s. Ou key messages in ol ed in u ban planning and
de elopmen a e :
1. U baniza ion is bo h unde s andable and manageable.
2. Sus ainable u ban de elopmen solu ions exis , bu hey equi e us , dialogue and new
ins i u ions.
3. Success can only come om pu suing he i e a i e cycle o ac ing-lea ning ha d i es
inno a i e go e nmen s. Examples o such p ac ices can be seen in a eas such as land,
housing and li elihoods.
Pa e ns o u baniza ion
Be ween 2000 and 2030, A ica's u ban popula ion – as example - will inc ease om 294 million
o 742 million. This is a daun ing p ospec , gi en ha mos A ican s a es a e cu en ly ailing o
deal wi h he needs o hei u ban popula ions. G ow h and mig a ion - u al- o-u ban mig a ion
accoun s a only one-qua e . In o he wo ds, he bulk o u ban g ow h comes om na u al
popula ion g ow h wi hin ci ies, a eali y which unde mines he policy mig a ion. A common
misconcep ion is ha u baniza ion implies an explosion o mega-ci ies (ci ies wi h mo e han
se en million people).
We ha e seen ha he u ban poo a e he mos impo an ac o s in ol ed in p o iding shel e in
A ican ci ies and owns, despi e he absence o go e nmen suppo and in es men . O
cou se, because hei houses a e cons uc ed wi hou he suppo ing in a- s uc u es such as
access o wa e , sani a ion and ene gy, hey a e insu icien and inadequa e o ep esen
any hing esembling he kind o housing ha is implied by he uni e sal igh , as se ou in
A icle 25 o he Uni e sal Decla a ion o Human Righ s.
The cen al challenge acing go e nmen s and manage s is o ecognize and app ecia e he
e o s o he u ban poo , and build on hei in es men s o p og essi ely sol e he shel e c isis.
1171
In o mal se lemen s con ain en i e ib an local economies, wi h hei own in o mal housing and
land ma ke s and hei own di e se social and cul u al g oupings, while condi ions in some
se lemen s may indeed be squalid, unheal hy, impo e ished and socially excluding.
Go e nmen s, and in pa icula na ional se ices, need o d aw on his knowledge o es ablish
he numbe s o people li ing in he se lemen , hei li ing condi ions, hei needs and
aspi a ions -all i al in o ma ion which mus shape plans ha will a ec he se lemen . Once his
unde s anding has been eached, i mus be ela ed o ou key aspec s o de elopmen :
- I is o e c owded o cha ac e ized by ex emely high densi y o dwellings and popula ion.
- I s esiden s ha e insecu e land enu e and may be e ic ed.
- I s esiden s expe ience high le els o po e y and social exclusion.
A slum household is de ined as a g oup o indi iduals li ing unde he same oo lacking one o
mo e o he ollowing condi ion: access o imp o ed wa e ; access o imp o ed sani a ion
acili ies; su icien li ing a ea (no mo e han h ee people sha ing he same oom); s uc u al
quali y and du abili y o dwellings; and secu i y o enu e. De ining slums by household-le el,
howe e , does no ully cap u e he deg ee o dep i a ion expe ienced by a gi en household o
slum communi y, o hei speci ic needs -a dimension ha is impo an .
Gen i ica ion
A he same ime, he es ic ions pu in place o ensu e he p ese a ion o he his o ic
cha ac e limi he deg ee o which p ope ies can be al e ed and hus impose a cos o hei
owne s. We a gue ha wi h posi i e he i age e ec s, he policy bene i s he owne s by emo ing
unce ain y ega ding he u u e o he neighbou hood. A he ma gin, cos s and bene i s o
designa ion will o se each o he , esul ing in a ze o impac on p ope y alue. A all o he
loca ions in neighbou hood he e ec would be posi i e.
Empi ical analysis o he de e minan s allowing owne s’ in e es s play in he designa ion
p ocess agains al e na i e mo i a ions o designa ion, e.g. p e en ing decline o
ede elopmen . This analysis goes u he in connec ing he spa ial ou come o a poli ical
ba gaining p ocess o one o he mos s iking con empo a y u ban phenomena: gen i ica ion,
ha in oduces ou heo e ical model o he i age designa ions and he ins i u ional se ing.
In he long- un he e is a p obabili y ha a any loca ion owne s ( e)de elop hei p ope y
causing a de e io a ion in in e nal he i age om he ini ial endowmen . Such de e io a ion
implies a all in he ex e nal quan i y o he i age e e ywhe e in he ci y. While a any loca ion x
he in e nal he i age is unde he ull con ol o he owne , he ex e nal he i age a all loca ions
can be exp essed as an expec ed alue de e mined by he p obabili y o he i age de e io a ion
ac oss he neighbou hood.
We p o ide an explana ion o he s uc u e o an u ban agglome a ion, desc ibing whe e i ms in
di e en sec o s ha e decided o loca e hei ac i i ies, anging om se ice supply o
manu ac u ing p oduc s. Second, we conside a model o mula ion ha implies ha
agglome a ion economies a e associa ed wi h a disp opo iona e expansion o jobs in
knowledge-in ensi e p oduce se ices and household se ices. Mo eo e , as he di e si y o
household se ices in an agglome a ion inc eases, new households a e a ac ed o he
1172
agglome a ion, which implies ha u ban agglome a ion s imula es expansion o bo h labou
supply and job demand.
In summa y, sec o s a e a ac ed o loca e and expand in u ban a eas wi h highe han a e age
supply po en ial, and when such sec o s g ow hey s imula e addi ional se ice-p oducing i ms
o ope a e in he same u ban a ea. When densi y ge s highe he g ow h in ce ain a eas may
come o a hal . One may ema k ha he supply capaci y o business se ices is measu ed
empi ically by obse ing he numbe o jobs which may conside ed as a c ude measu e. An
al e na i e would be o weigh jobs by using in o ma ion abou wage le els o di e en jobs.
Mic o inance
Go e nmen s should be encou aged o adop policies ha enable he housing sec o o wo k.
Go e nmen s ha e a hei disposal majo ins umen s ha add ess demand-side and supply-
side cons ain s, and imp o e he ins i u ional amewo k o he housing sec o as a whole as a
i al ool in disclosing hese cons ain s and p o iding go e nmen s wi h he necessa y
in o ma ion o ake policy decisions.
Demand-side ins umen s a e:
1) de eloping p ope y igh s: ensu ing ha igh s o own and exchange housing a e es ablished
and en o ced, ensu ing land igh s and egula iza ion o insecu e enu e;
2) de eloping mo gage inance: c ea ing he es ablishmen o compe i i e mo gage lending
ins i u ions, and os e ing inno a i e a angemen s o p o ide g ea e access o inance by he
poo , which includes mic o-c edi and mic o- inancing o housing and land acquisi ion;
3) a ionalizing subsidies: ensu ing ha subsidy p og ams a e o an app op ia e scale,
measu able, and anspa en , p e e ably ocusing on he demand side and a oid dis o ing
housing ma ke s.
Supply-side ins umen s a e:
1) p o iding in as uc u e o esiden ial land de elopmen : coo dina ing he agencies
esponsible o p o ision o esiden ial in as uc u e ( oads, d ainage, wa e , sewe age, and
elec ici y) o e icien de elopmen o u ban planning ins umen s.
2) o ganizing he building indus y: c ea ing g ea e compe i ion in he building indus y, emo al
and use o local building ma e ials, p omo ing he es ablishmen o lab es ing and quali y
con ol, suppo ing g een echnologies and low-ca bon p ac ices.
These ins umen s a e o be suppo ed and guided by de eloping he ins i u ional amewo k:
s eng hening ins i u ions which can o e see and manage he pe o mance o he sec o as a
whole; b inging oge he all he majo public agencies, p i a e sec o , and ep esen a i es o
nongo e nmen al o ganiza ions, policies and p og ams which bene i he poo and elici hei
pa icipa ion. Such ins i u ional amewo k should en o ce anspa ency in housing ma ke s,
es ablish moni o ing and indica o s and egula upda es on he pe o mance o he housing
sec o and he p ope y ma ke .
P io i ies o use o hese ins umen s, howe e , a y ac oss coun ies; p io i ies a e o de elop
ma ke o ien ed sys ems o p ope y igh s, acili a e he housing supply and enhance indus ial
compe i ion.
1173
One o m o change is o local go e nmen s o coo dina e e ec i ely wi h cen al and s a e o
p o incial le el au ho i ies and ice e sa. Inclusi e policies o ci ies should ocus mo e on
aspec s ha could be in eg a ed in o o mal municipal p ac ices; such as he in o mal economy,
social capi al and in o mal ins i u ional a angemen s, including a o dable land deli e y and
housing sys ems. The cos indices will always e eal he implica ion o de eloping any gi en
land uni in ela ion o he land which appea s o be he cheapes wi hin he su eyed a ea.
These indices, howe e , should no alone de e mine a planning solu ion di ec ly, bu a he
p o ide a 'basis o choice' in he o mula ion i sel . When such a basis is o mula ed, i becomes
ela i ely a simple exe cise o modi y some o he pa ame e s and o calcula e how his would
a ec he cos o de elopmen . The e is also a di e ence in he cha ac e o he cos s in ol ed
be ween he second g oup o ac o s and he o he h ee g oups, whe e he cos s end o be
ixed and o ha e a 'passi e' cha ac e e lec ing exis ing ea u es o he analysed a ea. The
planne can exe cise no in luence upon hem; hey a e dependen a iables.
Housing inance includes mo gage and cons uc ion loans. These a e ypically o e ed by
comme cial banks and building socie ies, which demand a lien on land (i.e., he igh o keep
possession un il he deb is discha ged. The as majo i y o u ban poo (in A ica o in Asia)
ha e no access o any inancial ins umen s, and no al e na i e bu o inance hei houses
h ough in o mal mechanisms. These include mainly pe sonal sa ings, small loans om
ela i es, iends o mic o inance ins i u ions.
The poo a e denied access o o mal housing inance due o lack o colla e al esul ing om he
quali y and/o legal s a us o hei housing, limi ed incomes o unce ain
employmen s a us. Po en ial imp o emen s o cu en housing inance sys ems include he
ollowing:
1- Re o m o land egula ions, p ope y igh s and land ma ke s mus allow p i a e owne ship,
leasehold and
ansac ions on open land ma ke s;
2- S onge ax bases o municipali ies, pu ing hem in a be e posi ion and access o capi al
ma ke s;
3- Encou aging g ea e p i a e in es men and inance in u ban in as uc u e and se ices,
whe he h ough
gua an ee schemes including public-p i a e pa ne ships wi h in e na ional inancial ins i u ions
and p i a e ope a o s and/o in es o s;
4- P omo ion o housing inance h ough mic o inance ins i u ions and housing coope a i es
who know how o each ou o low-income u ban communi ies and whose epaymen can a ac
p i a e and dono unding;
5- U ban po e y can ha e implica ions o o he na ions, apa om emig a ion lows. Deep
dep i a ion weakens na ional capaci ies o comba o ganized c ime, human a icking, a med
con lic , e o ism, social un es and he sp ead o diseases.
As a g oup o eminen planning expe s ecognized in he Global Repo on Human Se lemen s
2009: “Among he mos signi ican challenges ha u ban planning has o add ess in he nex
ew decades a e inc easing po e y and inequali y, as well as he apidly expanding u ban
sec o .” E idence also indica es an in e se ela ionship be ween he deg ee o u baniza ion