Urban development component of the second economy strategy. 31 October 2008. Problem. Impact of programmes on economic upliftment has been marginal: space is exclusionary, ‘rdp’ housing on outskirts, programmes not integrating poor into property market..asset rich/income poor
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Urban development component of the second economy strategy
31 October 2008
This presentation, brief introduction and focus on informal settlement upgrading
NDoH estimate: 2.4-million households in informal settlements
Public investment must be focused where benefits of inclusion are maximized
TWO framing responses for reducing marginalization:
Access: focus on providing access to urban infrastructure, connecting poor into urban fabric
Assets: focus on living environment that taps potential and promotes productivity
Investment in public infrastructure critical because:
But neither infrastructure nor housing is automatically poverty reducing: location dependent
The optimal poverty reduction benefit of urban investment lies in the nexus between city restructuring, delivery of public infrastructure and shelter provision
Biggest pro-poor public investment - shelter
How do we shift from housing as shelter to housing as asset an to sustainable human settlements?
Need an ASSET building focus…
The value of the financial asset is dependent on the functioning of the property market.
Housing construction contributes dramatically to economic growth due to the forward (furniture, home improvements, etc.) and backward (building materials, infrastructure, etc.) linkages involved. In addition, formal residential properties are a fundamental component of a municipality’s rates base.
Housing construction is a labour-intensive exercise. An increase in delivery can lead to substantial job creation. The potential for SMME development in the home improvements industry is also significant, especially given the nature of RDP stock in South Africa.
The house as a social asset – something which provides an address, which can be transferred as inheritance, which gives shelter, was a fundamental underpinning of the original housing policy in 1994.
The house can function as an economic asset by supporting home based enterprises and other income earning activities.
Sustainable human settlements
SA: National target to eradicate informal settlements by 2014
MDG target: improving lives of 100million slum dwellers by 2020.
Targets require that circumstances of those living in ‘slum' conditions be improved..specifically through providing access to (at least one of the following…) water, sanitation, secure tenure, structurally sound housing; reducing overcrowding
UN-Habitat: “the long journey towards cities without slums” through best practice of “participatory slum upgrading programmes that include urban poverty reduction objectives”.
Clarification of targets and spirit of BNG at strategy level and throughout spheres of state.
Community Survey 2007: by province and type of main dwelling
Progressive upgrading (sophisticated)
State subsidisation focuses on engineering, social and educational infrastructure
Streamlined funding mechanism:
Group saving and Housing micro finance
“ In a context where a household has been ensured security of tenure (whatever form that may take) and given infrastructure & other services, the literature suggests that there is sufficient incentive for households to then improve their housing situation”
Procurement that brings in private sector and NGOs
Housing support services
Streamline municipal planning approval; plans and advice
Pro-poor municipal transport plans
Link housing delivery to provision of micro-finance (savings based)
Conclusion: Enter the policy space created by BNG, NUSP, various metro initiatives