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1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 1 PUBLIC ACTION FOR URBAN POVERTY REDUCTION: POLICY OPTIONS AND NATIONAL– LOCAL GOVERNMENT.

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Presentation on theme: "1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 1 PUBLIC ACTION FOR URBAN POVERTY REDUCTION: POLICY OPTIONS AND NATIONAL– LOCAL GOVERNMENT."— Presentation transcript:

1 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 1 PUBLIC ACTION FOR URBAN POVERTY REDUCTION: POLICY OPTIONS AND NATIONAL– LOCAL GOVERNMENT ROLES UPA Package 1, Module 3

2 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 2 URBAN POVERTY REDUCTION: VULNERABILITY AND ASSET OWNERSHIP, IMPLICATIONS FOR PUBLIC ACTION

3 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 3 Objectives Enable the students to: explain urban poverty with reference to vulnerability and asset ownership describe the wider impact of reducing urban poverty identify policy options to address urban poverty determine the roles of national and local governments in reducing urban poverty list actions that national and local governments can take along the following dimensions: a) policy level decisions, b) programmatic innovations, c) regulatory framework, and d) monitoring and coordination

4 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 4 Urban Poverty, Vulnerability and Asset Ownership As presented in the first module, urban is characterized by cumulative deprivations, i.e., one dimension of poverty is the cause of or contributor to another. (See slide 18, Module 1) Vulnerability is linked to three characteristics of urban life: commoditization (reliance on cash economy); environmental hazard (stemming from the density and hazardous location of settlements and exposure to multiple pollutants); social fragmentation (lack of community, and of inter-household mechanisms for social security, compared to those in rural areas) (Moser, Gatehouse and Garcia, as cited by Baharoglu and Kessides, 2003:124.) Vulnerability is affected by asset ownership. The more assets people have, the less vulnerable they are; the fewer the assets held by households, the greater their insecurity. (Source: Baharoglu and Kesstides: 124)

5 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 5 Understanding Different Dimensions of Poverty: Asset and Vulnerability Dimensions of PovertyDistinctive Aspects of Poverty in CitiesAssets Income PovertyDependence on cash for purchase of essential goods and services Labor Productive asset such as housing Education and Health Poverty Residential environment prone to industrial and traffic pollution Overcrowded and unhygienic conditions Inability to afford school expenses Limited access to education due to insufficient school sizes in rapidly expanding cities Unsafe working conditions especially for the informal sector jobs Personal safety/security risks deterring school attendance Human Capital

6 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 6 Understanding Different Dimensions of Poverty: Asset and Vulnerability Dimensions of PovertyDistinctive Aspects of Poverty in CitiesAssets Tenure SecurityLand and Housing in authorized areas are not affordable, so the poor occupy land illegally and construct their houses without construction and occupancy permits Productive assets such as housing Financial SecurityDependence on cash income and lack access to credits and safety nets Human Capital and Labor Personal SecurityDrug/alcohol abuse and domestic violence; family breakdown and reduced support for children; social diversity and visible income inequality in cities, which increase tensions and can provide the temptation for crime. Social networks and household relations

7 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 7 Understanding Different Dimensions of Poverty: Asset and Vulnerability Dimensions of Poverty Distinctive Aspects of Poverty in Cities Assets Social and political exclusion Disempowerment Illegitimacy of residence and work Isolation of communities that are disconnected from jobs and services Insufficient channels to obtain information, for instance about jobs and legal rights Not having the rights and responsibilities of citizens Social Capital

8 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 8 Broader Impacts of Urban Poverty Reduce social inequality Avoiding large scale health and environmental problems Mitigating the impacts of disasters Supporting local economic development Promoting national economic growth

9 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 9 Policy Options for Responding to Urban Poverty Labor markets and employment Land, housing and urban services Financial markets Public finance Urban governance

10 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 10 National-Local Feedback Process for Urban Poverty Reduction Strategies Source: Deniz Baharoglu and Kristine Kessides in Klugman, 2003:149

11 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 11 Selected Actions that National Government can take as Urban Poverty Reduction Strategies Policy Level ActionsDevelop urban poverty reduction measures as a component of national development plans and sectoral policies Develop instruments to help local governments respond to the demands placed on them in alleviating poverty at the local levels Ensure stability in revenue sharing with local authorities Synchronize the elements of decentralization – for example by balancing the transfer of decision-making and revenue generating authorities to local authorities Give local authorities the freedom to establish land use and zoning regulations Support equal opportunities and policies against discrimination against gender, ethnic origin, etc.

12 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 12 Programmatic Innovations Initiate and promote national programs such as Indonesia’s national government support for the Kampung improvement (slum upgrading). Central government support is one of the underlying factors of this program’ success and replicability Promote micro-enterprises by encouraging financial organizations to lend to them and by making funds available as seed funding or guarantees to facilitate resource mobilization Transfer or sell unoccupied government land to local authorities for local use Regulatory FrameworkIdentify/diagnose national policy impediments to improve the living conditions of the urban poor in sectors such as land, housing, infrastructure, health and education Selected Actions that National Government can take as Urban Poverty Reduction Strategies

13 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 13 Regulatory FrameworkDevelop simplified and appropriately designed taxation policies for small business, banks and financial institutions Establish standards of public accountability for local authorities such as municipal auditing requirements Make worker protection measures and social benefits affordable and accessible to low–income groups; reduce barriers to the inclusion of non–formal sector workers Monitoring and Coordination Support and monitor poverty outcomes in cities through national agencies such as statistics institutes, based on agreements with local authorities on appropriate and realistic benchmarks Coordinate inter city efforts at sectoral levels Support training and dissemination of municipal experiences; i.e., through national associations of local authorities. Selected Actions that National Government can take as Urban Poverty Reduction Strategies

14 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 14 Policy IssuesMake poverty reduction a part of the city development strategy. Ensure a completely transparent process that is open and shares all information fully and freely Be sure to enlist all stakeholders in projects. The participation of such entities as resident associations, neighborhood groups and specific forces within the community, notably women is vital to the success of any policy. Rather than relying on intergovernmental transfers, increase revenue generation via progressive taxation. Program Innovations Initiate programs at the city level. Provide poor communities with access to information on potential jobs and markets, and collaborate with the private sector to organize training programs. Selected Actions that Municipalities can take as Urban Poverty Reduction Strategies

15 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 15 Regulatory Framework Land Increase tenure security within the scope of cultural possibilities and community priorities Try to make land rights tradable to facilitate land market transactions Simplify registration procedures Recommend and encourage better use and supply of developed land, especially in underutilized areas Housing Simplify construction and occupancy permits Apply realistic standards regarding minimum plot size, building materials and construction codes Accept multiple use of dwellings Selected Actions that Municipalities can take as Urban Poverty Reduction Strategies

16 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 16 Regulatory Framework Infrastructure Services Simplify subscription procedures and allow subscribers to pay fees in affordable installments Apply realistic and affordable standards of service Cooperate with water vendors and other informal providers to serve the poor Employment/labor markets Alleviate constraints on small microenterprises such as high license fees Allow urban agriculture and home-based income generating activities Selected Actions that Municipalities can take as Urban Poverty Reduction Strategies

17 1.3.1 Urban Poverty Reduction: Vulnerability and Asset Ownership... 17 Monitoring and Evaluation Carry out city poverty assessments to update information on poverty and its causes. This can be the basis for a city poverty strategy. Develop and use indicators and measurement benchmarks to evaluate achievements Monitor implementation of strategies and impacts of policies and programs on the poor. Disseminate results to the stakeholders. Financial IssuesAvoid relying entirely on budget transfers from central governments or other entities – resort to local resource mobilization; including levying local taxes. Introduce cost recovery; complete cost recovery may not be expected but program beneficiaries may contribute through labor or cash. Target subsidies to well defined groups for better cost recovery and effective utilization of scarce resources. Selected Actions that Municipalities can take as Urban Poverty Reduction Strategies


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