Confronting the Challenge

of Slums

 Slums result from failed land and housing markets

Cities are not keeping up with services

The Problem of Slums is Scale:

95% of population growth in cities.

Slums growing at twice the rate of
cities in India.
In 25 years, there will be as many
new slum dwellers, as there are
today.
Scaling-up is key strategy for cities

Slum clearance fails because

it destroys communities and social
capital
it is unaffordable (15 times the cost of
upgradation)
it fails to unleash potential of the
community
it directs public effort to housing at
expense of city services & environment
it has high political and social cost

How to deal with slums?

Slum upgradation is an effective response

before:

after:

upgradation changes slum

dwellers environments and lives
from
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powerlessness to participation
vulnerability to assets
violence to security

transforming slums from

squalor and stigma

to citizenship and potential

we have gone from Favelados to citizens...

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upgradation builds communities,

not just infrastructure

Community involvement is
central to...
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articulating needs
establishing priorities
negotiating decisions
ownership / commitment

and key in...

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planning, excecuting and financing

getting the right services
creating empowered associations
organizing better access to social services

Upgradation delivers a combination

of improvements
tenure security
safe water
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sanitation

drainage

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solid waste
access paths
lighting
reduced environmental risks

Successful upgradation changes

the status of squatters
improves
improves environment
environment
&
& quality
quality of
of life
life
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-upgradation sites in Jordan

reduced infant and child
mortality by five times national
rate

stimulates private investment

Worldwide, on average, every $1 of upgradation creates
$7 in home improvements.
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increases security and reduces

violence & crime
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We have
seen a
dramatic
decrease in
violence in
Favelas that
have been
upgraded.
-Guarapiranga

and raises status & self esteem

with tenure security
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upgradation is low cost and

affordable
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Basic
infrastructure
costs from $40 to
$500/ person.

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The poor can

pay, and if
involved in
decisions, pay
for services.

Keys to success...
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an organized, participating community

a combination of networked services
a community aware of options, costs, and trade-offs
a facilitating local government
political support

Successful Upgradation
Responses...
Involve community in the process
Improve basic services simply and
quickly
Provide security of tenure
Let residents improve houses
Are low cost, affordable and replicable

Challenges:
Convince governments that slum
clearance does not work
Instead invest in slum upgradation
Devise financial support plans (several
sources)

And key actions...

Define the roles of key actors:
Communities
Civil society
Private sector
NGOs
Governement

Build the capacity of institutions and

communities

An important benefit...
Upgradation is a means to include
the poor in the citys economy

An evolution of
upgradation practice
testing in the 1970s
a drop in lending in the 1980s
community-based in the 1990s
moving to scale in 2000

Bank experience with upgradation

Started in mid-1970s
48 operations with upgradation since FY88
20 in preparation
about $3.5 billion actual & planned
investments
Examples:
Indonesia
Brazil
Ghana
Pakistan
Albania