1. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 1 UPA Package 3, Module 1 URBANIZATION AND THE POOR: PERSPECTIVES FROM THE THIRD WORLD

2. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 2 Defining and subclassifying the Third World General characteristics of TW countries TW urbanization experience compared with that of western countries Stages of TW urbanization – pre-colonial period – colonial era – post-colonial times 3.1.2 Urbanization and the Poor: Perspectives from the Third World Urbanization in the Third World (TW)

3. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 3 Rural-urban migration and the fragmentation of the built environment The dual economy and the fragmentation of the labor market The shared space 3.1.2 Urbanization and the Poor: Perspectives from the Third World Socio-Spatial Structuring of the TW City and its Impact on the Poor

4. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 4 The experience with the use of western models Toward more radical and innovative approaches – socialist TW approaches – UN Habitat-led initiatives Approaches to Urban Planning and Management in TW Countries

5. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 5 Self-help schemes – the multi-step transition model – the shared space model Government programs – urban renewal and slum upgrading – sites and services provision – tenure improvement schemes Residential Options of the Poor in TW Cities

6. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 6 “Third World” is defined by elimination: First World - industrialized countries of Western Europe, North America and the Pacific (OECD-member countries). Second World - industrialized formerly centrally planned economies of Eastern Europe. Third World - all the rest of the countries in Latin America and the Carribean, Africa, Middle East, and all of Asia except Japan. Other exceptions: Israel (ME) and South Africa (Africa). Defining the Third World

7. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 7 By geographical configuration: North - First and Second Worlds: Advanced, modern, developed, industrialized, rich. South - Third World: Backward, traditional, underdeveloped or developing or less developed, poor.

8. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 8 Low income economies - less than $500 per capita annually Middle income economies - between $500 and $6,000 per capita Lower middle income - less than $2,200 per capita Upper middle income - Asian tigers (Israel, Hongkong, Singapore) High income countries - OECD countries with income per capita of over $6,000 Classification of TW Countries (World Bank, 1988)

9. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 9 Advanced developing countries (ADC) or newly industrializing countries (NIC) - Brazil, Argentina, Singapore, Taiwan, Hongkong and South Korea. Petroleum exporting countries (PEC) - a disparate group of 36 nations with super-rich nations like Kuwait and Libya at the top and poor countries like Nigeria and Indonesia at the bottom Recent Sub-categoarization of TW Countries

10. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 10 Middle-income countries (MIC) - 45 other TW countries including Malaysia, Philippines and Thailand. “Fourth World” - remaining 35 countries accounting for 35% of TW population but only 3% of gross global product (GGP) and 5% of TW exports. Their per capita income is insufficient to provide for a minimum level of welfare.

11. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 11 General Characteristics of TW Countries

12. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 12 Source: Atlas of the Third World, 1983. General Characteristics of TW Countries

13. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 13 122 countries comprise the Third World About one-fourth of these belong to the socialist TW classified into four categories : Group I - members of CMEA or Comecon, e.g. Vietnam and Cuba Group II - well-established communist of socialist states outside of Comecon, e.g. China Group III - self-proclaimed hard-line socialist states closely aligned with USSR, e.g. PDR, Yemen Group IV - marginal states with one-party governments, e.g. Algeria, Nicaragua, Guyana Socialist Third World

14. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 14 Effective one-party rule High and increasing degree of state ownership of industry and agriculture Tendency towards centralized command of the economy Establishment of comprehensive planning structure A development path that does not rely on the dynamics of private capital ownership and entrepreneurship Generally slow rate of urban growth Characteristics of the Socialist TW

15. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 15 TW and Western Urbanization Experience compared

16. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 16 TW and Western Urbanization Experience compared

17. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 17 Pre-colonial TW Cities Existed prior to European-based exploration and discovery in the 15th century Unique and indigenous, the city was a product of local initiative to serve local needs utilizing the local environment Population density remained low Simple and small, performed a few functions and had little spatial differentiation Phases of TW Urbanization

18. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 18 Pre-colonial TW Cities (continued) Economic activities oriented to subsistence needs Technology was rudimentary No long-distance trading due to self-sufficient economy and underdeveloped transport networks No distinct land use assignments; people of all social classes lived and interacted together in relative small space Phases of TW Urbanization

19. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 19 Begun with the rise of mercantilism; reached maturity with the Industrial Revolution A distinctive product of European colonialism Colonial urbanization involved dismantling of indigenous technology and implanting European social and cultural values TW city served as European colonial outpost Colonial TW Cities

20. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 20 TW city as commercial entreport: facilitated export of primary products and import of manufactured goods TW city also as industrial hub: for intermediate processing of raw materials destined for the mother country Industries developed in turn key fashion from Europe rather than from within TW city fostered continued dependence on the west for technology and markets Segregation policy imposed by the colonial order gave rise to fragmented land use patterns Colonial TW Cities (continued)

21. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 21 Emerged after independence or during the post-World War II period Control passed on to local elites but colonial influence and legacy lives on Increase in population size due to influx of rural migrants Increase in commercial and industrial land use due to investments by multi-national corporations Coexistence of traditionalism and modernism, wealth and poverty, legal and illegal quarters. Post-colonial TW Cities

22. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 22 TW urbanization is often called “false urbanization” because: – it is driven by demographic forces – unaccompanied by economic growth Two demographic factors causing TW urbanization: – high natural growth rate due to – modest decline in birth rates – steep decline in death rates – Heavy migration from rural areas to urban centers Socio-spatial Structuring of the TW City: Impact on the Poor

23. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 23 1a Rural Crop Zone 1 Rural Family 1b Migrant in Town Rural Crop Zone 2 Return visit for seasonal agricultural needs The Seasonal Flow

24. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 24 Rural Family Migrant in Town Permanent return either through dissatisfaction or upon acquiring family responsibilities in village or following retirement Circular Migration

25. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 25 Step or stage migration Rural Area Small Urban Small Urban Large City (Time lag, maybe one generation) The Permanent Flows

26. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 26 Rural Area Stays with Relative or Friend in Town Migrant sets up own dwelling in town Friend or Relative of First Migrant Migrant Quarters Develop in Town Stays with migrant now established in Town Second migrant sets up own dwelling in Town Chain Migration

27. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 27 “Push Factors” Very low rural incomes Wars and civil strifes Natural calamities Difficult access to land Labor redundancy due to farm mechanization Price of agricultural inputs and outputs manipulated by traders Causes of Rural-To-Urban Migration

28. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 28 “Pull Factors” Huge urban-rural differentials Available better paying jobs in cities Better quality urban services and facilities Possibility of publicly subsidized goods and services Lure of “bright lights” Causes for Rural-To-Urban Migration

29. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 29 The Myths Louis Wirth’s destruction of “folk societies” Oscar Lewis’ “culture of poverty” Transitional settlements stereotyped as social aberrations “cancers” that overwhelm an otherwise healthy municipal body Social Consequences of Rural-To- Urban Migration

30. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 30 The Realities Squatter settlements or transitional represent a solution to the complex problem of urbanization and migration. Contrary to Wirth, rural-urban migrants are not anonymous nor alienated; they maintain stronger contacts with their rural folks than with their urban neighbors. Contrary to Juppenlatz, residents of transitional settlements display remarkable vigor and ingenuity in improving their living conditions. Contrary to Lewis, shanty town residents are upwardly mobile, industrious, savers, and are often more conservative than radical. Social Consequences of Rural-To- Urban Migration

31. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 31 Squatter settlements perform important functions in the urbanization process They provide affordable housing to the lowest income groups. They act as reception centers for new migrants assisting them to adopt to urban life. They provide a wide variety of employment in marginal and small-scale enterprises. They provide accommodation in close proximity to work Their social organization provides essential support in times of extreme difficulties. They encourage and reward small-scale entrepreneurship in the field of housing.

32. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 32 Migration, coupled with segregationist policy, led to spatial fragmentation of the colonial city. Evidences: the center or the colonial city core Planned districts of the pre- and post-colonial periods The historic city (often pre-industrial) Illegal settlements – built on illegally subdivided land Slums – both on inner cities and in the peripheries Spatial Consequences of Rural-To- Urban Migration

33. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 33 Rapid migration leads to rapidly increasing labor force. The increased labor force cannot be absorbed in full productive employment. Bulk of new manpower is absorbed by small-scale enterprise, personal services and open unemployment. Spurts of urban investment trigger more migration to the city. Maintenance of a minimal “survival” economy. Reinforcement of traditional subcultures in the city. Rise of a coexistent dual economy: the formal and the informal. Linkage between the formal and informal sectors characterizes the economy of the TW city. Economic Impact of Rural-To-Urban Migration

34. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 34 Ease of entry Reliance on indigenous resources Family ownership of enterprises Small scale of operation Labor-intensive and adapted technology Skills acquired outside formal school system Unregulated and competitive markets Characteristics of the Informal Economy

35. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 35 Difficult entry Frequent reliance on overseas resources Corporate ownership Capital-intensive, often imported technology Formally acquired skills, often expatriate Protected markets (through tariffs, quotas and licenses) 3.1.2 Urbanization and the Poor: Perspectives from the Third World Characteristics of the Formal Economy

36. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 36 Formal sector firms employ substantial number of casual workers who are paid low wages, without fringe benefits, unprotected by social security. Low wage labor produces low cost inputs for the formal sector. Informal sector provides cheap goods and services for formal sector workers. Informal sector subcontractors to formal sector firms hire children and minors to work in sweatshops. Subcontractors to subcontractors do piece work in their own homes at exploitatively low rates. Home work creates the “shared space”: activities for living share space with activities for making a living. Impacts of the Dual Economy on the Poor

37. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 37 Factories in Domestic Premises Types of Workshops (Sit, 1970)

38. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 38 Source: Chadwick, 1987 Spatial Impact of Informal Sector Activities

39. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 39 Premised on the belief that Urban Primacy is undesirable, planning sought to limit urban growth through Control of migration Positive urbanization and urban development policies Regional planning and development Urban planning at municipal level TW Approaches to Urban Planning and Management

40. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 40 Residency permit system Development of lagging regions Integrated rural development Measures to Control Migration

41. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 41 Regionalization with identified growth poles for each region Industrial location incentives – infrastructure provision – tax credits and holidays Regional Planning Approaches

42. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 42 National infrastructure development Capital cities development New towns/satellite towns development Promotion of medium-size cities Positive Urbanization Measures

43. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 43 Master plans for specific sectors and areas Urban renewal or revitalization Municipal Level Urban Planning

44. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 44 Promotes a society that is neither urban nor rural through – decentralization and development of uninhabited regions – industrialization of the countryside using small-scale technology – distribution of equal levels of services and knowledge Socialist TW Urbanization Policy

45. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 45 To urbanize the country and ruralize the city, rurtication programs were adopted, such as: residence registration and monitoring discriminating access to jobs, education, and resources land colonization and resettlement

46. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 46 To convert consumer cities to producer cities, through Reducing the size of the largest cities Promoting self-sufficiency in the urban economy Encouraging the growth of small and medium sized towns; creation of new towns

47. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 47 To make cities self-sufficient in food Expansion of the city boundary to incorporate a productive rural hinterland Greening of the suburbs by promoting household fruit and vegetable gardens Developing peri-urban agriculture and allocation of urban labor to this region

48. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 48 Rationale The great majority of poor people cannot afford to purchase housing in the market at a quantity and quality adequate to sustain a decent standard of living. The inability to afford housing leads the poor to find unconventional solutions including solutions that are illegal in certain contexts Housing the Poor in the TW Cities

49. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 49 Many people occupy land without due permit of the owner or due process of subdivision. TW housing is distinctive for the variety of building materials used. Renting and multiple occupancy are an important aspect of accommodation for the poor. Features of TW Housing

50. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 50 Criterion 1: Legality of land occupancy Legal occupants use land in accordance with existing laws on property rights Illegal occupants do not have legal title and have violated subdivision regulations Criterion 2: Legality of physical characteristics of individual units Those that meet minimum government standards for building material, lot size, floor area, etc. Those that have violated building regulations Criterion 3: Status of Tenure Owners with unique or multiple occupancy Renters with unique or multiple occupancy Structures of Sub-market for Housing

51. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 51 Occupancy of Land Physical Characteristics of Land and Structure LEGAL ILLEGAL LEGAL Owners Renters A Regular Housing Market C Invasion Housing Market OwnersRenters ILLEGAL B Slum Housing Market D Squatter Housing Market Source: Lim, 1987 Structure of Sub-market for Housing

52. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 52 Box A - regular, formal housing market. Land and units owned with title to both, and meets all legal requirements and specifications. Box B - slum housing. Units built on legally owned or rented land but which do not meet minimum standards for building. Box C - invasion housing. Dwellers occupy land illegally but units conform with physical standards. Some invade land and rent it to tenants as though they were the owners. Box D - squatter housing. Housing violates both legality of land occupancy and standards for physical characteristics. Summary of Housing Sub-markets

53. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 53 Street Sleeper Renter in Squatter Market Owner in Squatter Market Renter in Invasion Market Owner in Invasion Market Renter in Regular Market Renter in Slum Market Owner in Slum Market Owner in Regular Market Source: Lim, 1987 An Example of a Multistep Transition in a Housing Market

54. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 54 Left on their own, new migrants may follow the multi-step transition model: Start as a street sleeper Move through different submarkets step by step until becoming an owner of a regular housing unit Moves between submarkets take considerable time for most poor people Some may not make it at all. HENCE THE NEED FOR GOVERNMENT HOUSING POLICIES Residential Options for the Poor

55. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 55 Premised on negative attitudes and policies regarded squatters as outlaws or treated them with benign neglect. Demolition and clearance, sometimes with relocation. Control of land prices and rents to make it affordable to the poor. Settling minimum building and subdivision standards to discourage substandard, unsafe and unhealthy construction. Large-scale development restrictions, e.g. green belts, to discourage further migration Decentralization of the national population, also to lessen migration to the cities. Early Publich Policies on Informal Housing

56. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 56 Price control and building standards. Increased housing shortages and raised prices of regular housing units Demolition creates social and economic dislocation Development controls only transfer the problem to other areas Population decentralization without employment opportunities in rural areas is bound to fail. Negative Impacts of Early Housing Policies

57. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 57 Must be based on the acceptance and support of the long-term reality of informal settlements as a feature of TW urbanization. Must acknowledge and emphasize the positive contribution of the informal housing sector to the local economy. New Policies for Housing the Poor

58. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 58 Make urban utilities and community services available to slum and squatter areas according to priorities set through involvement of stakeholders. Give priority to security of tenure. Stop slum and squatter area clearance as a waste of people’s resource investment and a net destruction of the living environment. New Policies for Governments (UN)

59. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 59 Support policies including – squatter and slum upgrading – self-help housing – sites and services provision – minimum physical standards substantially lowered Increase public intervention in land acquisition and development

60. 3.1.2 Urbanization and the Poor: Perspectives from the Third World 60 Policies must be based on consumer behavior in the free market Warns against policies such as – unrealistic building and zoning regulations – slum removal – public housing – unfocused systems of subsidy for shelter and infrastructure Reduction of Public Intervention (World Bank)