Presentation on theme: "PUBLIC ACTION FOR URBAN POVERTY REDUCTION:"— Presentation transcript:
1 PUBLIC ACTION FOR URBAN POVERTY REDUCTION: UPA Package 1, Module 3PUBLIC ACTION FOR URBAN POVERTY REDUCTION:POLICY OPTIONS AND NATIONAL–LOCAL GOVERNMENT ROLES
2 URBAN POVERTY REDUCTION: VULNERABILITY AND ASSET OWNERSHIP, IMPLICATIONS FOR PUBLIC ACTION
3 Objectives Enable the students to: explain urban poverty with reference to vulnerability and asset ownershipdescribe the wider impact of reducing urban povertyidentify policy options to address urban povertydetermine the roles of national and local governments in reducing urban povertylist 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 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 Understanding Different Dimensions of Poverty: Asset and Vulnerability Distinctive Aspects of Poverty in CitiesAssetsIncome PovertyDependence on cash for purchase of essential goods and servicesLaborProductive asset such as housingEducation and Health PovertyResidential environment prone to industrial and traffic pollutionOvercrowded and unhygienic conditionsInability to afford school expensesLimited access to education due to insufficient school sizes in rapidly expanding citiesUnsafe working conditions especially for the informal sector jobsPersonal safety/security risks deterring school attendanceHuman Capital
6 Understanding Different Dimensions of Poverty: Asset and Vulnerability Distinctive Aspects of Poverty in CitiesAssetsTenure SecurityLand and Housing in authorized areas are not affordable, so the poor occupy land illegally and construct their houses without construction and occupancy permitsProductive assets such as housingFinancial SecurityDependence on cash income and lack access to credits and safety netsHuman Capital and LaborPersonal 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 Understanding Different Dimensions of Poverty: Asset and Vulnerability Distinctive Aspects of Poverty in CitiesAssetsSocial and political exclusionDisempowermentIllegitimacy of residence and workIsolation of communities that are disconnected from jobs and servicesInsufficient channels to obtain information, for instance about jobs and legal rightsNot having the rights and responsibilities of citizensSocial Capital
8 Broader Impacts of Urban Poverty Reduce social inequalityAvoiding large scale health and environmental problemsMitigating the impacts of disastersSupporting local economic developmentPromoting national economic growth
9 Policy Options for Responding to Urban Poverty Labor markets and employmentLand, housing and urban servicesFinancial marketsPublic financeUrban governance
10 National-Local Feedback Process for Urban Poverty Reduction Strategies Source: Deniz Baharoglu and Kristine Kessides in Klugman, 2003:149
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 policiesDevelop instruments to help local governments respond to the demands placed on them in alleviating poverty at the local levelsEnsure stability in revenue sharing with local authoritiesSynchronize the elements of decentralization – for example by balancing the transfer of decision-making and revenue generating authorities to local authoritiesGive local authorities the freedom to establish land use and zoning regulationsSupport equal opportunities and policies against discrimination against gender, ethnic origin, etc.
12 Selected Actions that National Government can take as Urban Poverty Reduction Strategies Programmatic InnovationsInitiate 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 replicabilityPromote micro-enterprises by encouraging financial organizations to lend to them and by making funds available as seed funding or guarantees to facilitate resource mobilizationTransfer or sell unoccupied government land to local authorities for local useRegulatory FrameworkIdentify/diagnose national policy impediments to improve the living conditions of the urban poor in sectors such as land, housing, infrastructure, health and education
13 Selected Actions that National Government can take as Urban Poverty Reduction Strategies Regulatory FrameworkDevelop simplified and appropriately designed taxation policies for small business, banks and financial institutionsEstablish standards of public accountability for local authorities such as municipal auditing requirementsMake worker protection measures and social benefits affordable and accessible to low–income groups; reduce barriers to the inclusion of non–formal sector workersMonitoring and CoordinationSupport and monitor poverty outcomes in cities through national agencies such as statistics institutes, based on agreements with local authorities on appropriate and realistic benchmarksCoordinate inter city efforts at sectoral levelsSupport training and dissemination of municipal experiences; i.e., through national associations of local authorities.
14 Selected Actions that Municipalities can take as Urban Poverty Reduction Strategies 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 freelyBe 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 InnovationsInitiate 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.
15 Selected Actions that Municipalities can take as Urban Poverty Reduction Strategies Regulatory FrameworkLandIncrease tenure security within the scope of cultural possibilities and community prioritiesTry to make land rights tradable to facilitate land market transactionsSimplify registration proceduresRecommend and encourage better use and supply of developed land, especially in underutilized areasHousingSimplify construction and occupancy permitsApply realistic standards regarding minimum plot size, building materials and construction codesAccept multiple use of dwellings
16 Selected Actions that Municipalities can take as Urban Poverty Reduction Strategies Regulatory FrameworkInfrastructure ServicesSimplify subscription procedures and allow subscribers to pay fees in affordable installmentsApply realistic and affordable standards of serviceCooperate with water vendors and other informal providers to serve the poorEmployment/labor marketsAlleviate constraints on small microenterprises such as high license feesAllow urban agriculture and home-based income generating activities
17 Selected Actions that Municipalities can take as Urban Poverty Reduction Strategies Monitoring and EvaluationCarry 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 achievementsMonitor 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.