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Poverty

A housing policy that could almost pay for itself? Think retrofitting

Luis Triveno's picture

Photo by Laura Avellaneda-Cruz via Flickr CC

The demand for decent, affordable – and safe – housing for growing urban populations is a nagging problem for financially strapped governments throughout the developing world. According to McKinsey & Co., a third of the world’s urban population – 1.6 billion people – will be hard pressed to obtain decent housing by 2025.
 
Housing policymakers, however, have undermined their capacity to increase the supply of good housing, quickly, by strapping themselves inside the myth that it is always better to build new homes rather than strengthening existing ones.
 
In Colombia, for example, 98% of all housing subsidies fund the acquisition of a new house or apartment; almost nothing goes to retrofitting existing homes to withstand the forces of nature and the tests of time.
 
While new construction may be a more attractive way to create schools, hospitals, and other public infrastructure, housing is a bigger, more pressing and complicated problem that may have a simpler solution: Bringing existing housing up to a decent standard of safety through retrofitting.
 
It’s not only a more efficient way to deploy limited government subsidies, but also a strategy to leverage these public funds with another private source in reach of governments: homeowners.

When it comes to developing Africa’s cities, “grow dirty now, clean up later” is not an option

Ede Ijjasz-Vasquez's picture
Africa’s cities have grown at an average rate of 4% per year over the past 20 years. While rapid urbanization has helped reduce poverty and improve livelihoods in the region, it is putting increasing pressure on Africa’s natural environment and sustainable development.
 
[Download a newly launched report—Greening Africa’s Cities—to learn more about the interplay between urbanization and sustainability in Africa.]
 
Take Kampala, Uganda as an example. It is estimated that only 5% of the city’s population is connected to the sewer network, with 95% of the population having access to basic on-site, mostly shared, sanitation. As a result, the volumes of flows entering the city’s Nakivubo wetland channels have increased significantly with contaminated runoff from informal areas and partially treated wastewater from the overburdened sewage works. This has significant negative impacts on human health, wetland and lake ecological function, as well as the cost of water supply to the city from Lake Victoria’s Inner Murchison Bay.
 
The city is considering rehabilitating the Nakivubo wetland, but it would cost US$53 million upfront, in addition to ongoing maintenance and operating costs of about US$3.6 million per year. Although benefits would include water treatment cost savings of US$1 million and recreational benefits exceeding US$22 million per year, it is now too costly and impractical to restore the wetland to a state where benefits can be achieved.

Lagging lands, violent lands

Somik Lall's picture
Today, over 2 billion people live in lagging and violent lands with the processes of economic isolation and violence closely linked. In Africa, close to 600 million people live within 90 minutes of violence. The issue of "lagging lands, violent lands" was examined at a World Bank seminar on April 22. The session focused on identifying options for stimulating sustainable and inclusive economic growth in lagging lands and urban spaces to bridge economic and social divisions and mitigate conflict and human vulnerability. An integrated policy framework combining the main thrusts of the World Development Report (WDR) 2009 on Reshaping Economic Geography and the WDR 2011 on Conflict, Security, and Development was at the core of diagnosing challenges and identifying solutions.

There is need for urgent action toward a global solution to leave no area behind because persistent spatial disparities in living standards can adversely affect national unity and social cohesion, foster political instability, and increase the risk of conflict. In identifying priorities, it is essential to remind ourselves that leaving no area behind is NOT equal to “doing the same everywhere.” And to advance on the lagging areas agenda, we must recognize that the heterogeneity of challenges across territories needs to be met with a heterogeneity of policy instruments. To leave no area behind, each local challenge needs to be matched with a specific set of policy instruments. Policies should seek unity, NOT uniformity.

Strengthening the link between research and policy for a combined agenda is critical. Georeferenced data provides a tremendous opportunity for analysis of risk factors. In East Africa, for example, the issue of lagging lands is addressed by work in high-risk and conflict-affected areas, by addressing the underlying drivers of vulnerability and by reducing exposure to hazards of people. In the Horn of Africa, the EU has successfully applied geographical targeting in cross-border areas across the region, collaboration across borders through specific actions, and a regional approach based on research and evidence. In Cali, Colombia, the “Territories of Inclusion and Opportunities,” a land-based strategy addressing multiple risk factors, has been a successful tool in combating poverty, exclusion and violence.

Social inclusion essential for eradicating poverty

Lauri Sivonen's picture

The social inclusion of disadvantaged groups is necessary for reducing poverty and boosting shared prosperity, said government representatives, experts, and civil society representatives at a World Bank seminar on Friday, April 21. Persons with disabilities, Indigenous Peoples, as well as lesbian, gay, bisexual, transgender, and intersex (LGBTI) persons form a large part of the world population affected by poverty. They often face multiple discrimination and exclusion because of their overlapping identities, stressed Maitreyi Das, Social Inclusion Global Lead at the World Bank Group. 

Patricia Peña, Director General for Economic Development of Global Affairs, Canada, highlighted the commitment of Canada—through its foreign assistance, diplomacy, and domestic efforts—to support policies and programs addressing economic and social inclusion of LGBTI people. Disaggregated data collection is one of the priorities for developing effective responses. Harry Patrinos, Practice Manager at the Bank’s Education Global Practice, made a cross-country assessment of poverty among Indigenous Peoples. Ulrich Zachau, the World Bank’s Country Director for Southeast Asia, discussed the Bank’s ground-breaking data generation efforts on LGBTI persons in Thailand. There is a need to find a shared way of measuring disability, said Nick Dyer, Director General of Policy and Global Programmes at the UK Department for International Development.

View tweets from the session below. Learn more about the World Bank's work on social inclusion, disability, indigenous peoples, as well as sexual orientation and gender identity (SOGI). 

Land 2030: Land rights and inclusive sustainable growth

Anna Corsi's picture
Increased attention and visibility of land rights issues is a testimony of their critical role for achieving economic growth in an inclusive and sustainable manner. On Friday, April 21, 2017, a panel of policymakers and representatives from development partners, civil society, and academia came together to discuss the importance of secure land rights as the basic building block for other development actions.

Land is a complex issue to manage because it cuts across so many different elements of the sustainable development agenda. Throughout the discussion panelists emphasized the importance of securing land and property rights for improving food security, reducing forced displacement, protecting landscapes, reducing carbon emissions, and empowering women.

The panelists shared the view that a lot more needs to be done if we want to improve the security of land rights on a mass scale and achieve the land-related Sustainable Development Goals (SDGs) by 2030.  It was noted that new technologies provide additional mechanisms for reaching these goals, but a thorough consideration to political economy issues is critical for success. South-South dialogues and a strong focus on capacity building were identified as key strategies to formulate simplified, innovative solutions, especially for Africa. While political will is essential, governments and the development community should partner more with the private sector in promoting awareness at the community level about the importance of secure land rights for development.

Finally, the panelists recognized that the World Bank is playing a critical role in promoting secure land rights and welcomed the proposal of creating a new global partnership – the Land 2030 Global Partnership. The Partnership seeks to raise the profile of land and poverty issues and give a boost to unblock land and property rights for the majority of the world’s population.

View tweets from the session below. Learn more about the World Bank's work on land here

Cultural heritage and sustainable tourism: drivers of poverty reduction and shared prosperity

Ede Ijjasz-Vasquez's picture
Old City of Dubrovnik, a UNESCO World Heritage Site in Croatia. (Photo by Justin Smith / Flickr CC)
Old City of Dubrovnik, a UNESCO World Heritage Site in Croatia. (Photo: Justin Smith / Flickr CC)

Today, we celebrate the International Day for Monuments and Sites. This year, the day focuses on Cultural Heritage and Sustainable Tourism, which underlines the important linkage between culture and cities: Culture, identity, and a people-centered approach are central to building the urban future we want and ensuring sustainable urban development.

In relation to the United Nations International Year of Sustainable Tourism for Development, and in the context of the 2030 Agenda for Sustainable Development and the New Urban Agenda this day also presents a unique opportunity to celebrate the long-standing partnership between the World Bank and UNESCO in the area of culture and sustainable development. 

The recently-launched UNESCO Global Report on Culture for Sustainable Urban Development titled Culture: Urban Future has brought to the forefront of the global discussion the critical role that culture should play in achieving sustainable urbanization, especially over the coming years when one billion people are expected to move to cities by 2030. Culture does not necessarily come in the list of Top 10 issues for sustainable urban development, but it is.

Culture is an essential component of the safe, inclusive, resilient and sustainable urban settlements everybody wants to live in. Culture should be at the core of new approaches for people-centered cities, quality urban environments and integrated policy-making.

Specifically, culture contributes to urban development in four aspects. All of them linked to poverty eradication and shared prosperity in a sustainable manner:

Urban jungles in jeopardy

Ivo Germann's picture
Why the world’s cities are at risk – and what we can do to make them more resilient



We may not know exactly what the world will look like in two decades, but we know this: it is going to be a world of cities.
 
The global population is becoming increasingly urban, and at an astonishing rate. Each year, urban areas are growing by an average of more than 75 million people – more than the population of the world’s 85 smallest countries combined.
 
For the world’s economy, this is great news, since cities produce 80 percent of global GDP, despite currently being home to only 55 percent of the population. But it is a problem for urban infrastructure, which can’t keep up with such fast-paced growth. As a result, cities, already vulnerable, are becoming increasingly susceptible to natural disasters – from flooding and landslides that can decimate informal housing settlements, to earthquakes that can devastate power grids and water systems.
 
These risks could be disastrous for the urban poor, 881 million of whom currently live in slums (up 28 percent since 2000). And climate change – which is increasing the intensity and frequency of natural disasters – will only exacerbate the problem. For this reason, multilateral and government institutions now see resilience and climate adaptation as integral pillars of development.
 
The Swiss State Secretariat for Economic Affairs (SECO), for example, considers low-emission and climate-resilient economies to be key to global competitiveness. A recent report by the World Bank and the Global Facility for Disaster Reduction and Recovery (GFDRR) found that climate change may force up to 77 million urban residents into poverty by 2030 – unless we take action to improve the resilience of cities around the world.

In China, conserving the past helps the poor build a brighter future

Ede Ijjasz-Vasquez's picture
How cultural heritage and sustainable tourism help reduce poverty
 
China has seen a booming tourism industry during the last few decades, thanks to a fast-developing economy and growing disposable personal income. In 2015 alone, the travel and tourism sector contributed to 7.9% of China’s GDP, and 8.4% of the country’s total employment. Not surprisingly, cultural heritage sites were among the most popular tourist destinations.

But beyond the well-known Great Wall and Forbidden City, many cultural heritage sites are located in the poorer, inland cities and provinces of the country. If managed sustainably, tourism in these areas can serve as a unique opportunity to help local communities—especially ethnic minorities, youth, and women—find jobs, grow incomes, and improve livelihoods.
 
“[Sustainable tourism] is not only the conservation of the cultural assets that are very important for the next generations to come, but, also, it’s the infrastructure upgrading, it’s the housing upgrading, and it is the social inclusion to really preserve the ethnic minorities’ culture and values – it is an interesting cultural package that is very valuable for countries around the world,” says Ede Ijjasz-Vasquez, a Senior Director of the World Bank.
 
To help reduce poverty and inequality in China’s lagging regions, the World Bank has committed to a long-term partnership with China on cultural heritage and sustainable tourism—with the Bank’s largest program of this kind operating around 20 projects across the country. These projects have supported local economic development driven by cultural tourism.
 
“Over the years, the program has helped conserve over 40 cultural heritage sites, and over 30 historic urban neighborhoods, towns, and villages,” according to Judy Jia, a Beijing-based Urban Analyst.
  
Watch a video to learn from Ede Ijjasz-Vasquez (@Ede_WBG) and Judy Jia how cultural heritage and sustainable tourism can promote inclusive growth and boost shared prosperity in China, and what other countries can learn from this experience.



Also available in: 中文

Three misconceptions in the way of better housing policies

Luis Triveno's picture
Also available in: 中文

Photo by Dominic Chavez / World Bank

​While the need for housing is widespread, individually people have different needs—depending on whether they are single, married, senior citizens, families with children, or members with disabilities. Despite the best of intentions of policymakers, "a roof overhead" remains an elusive goal for a large majority of the world’s people. Most households cannot afford even the cheapest house that fits their needs and qualifies as “decent,” and no government alone can close this gap with subsidies. Nor are we on track to build the 300 million new houses needed to close the housing gap by 2030.

What’s missing? At least three misconceptions stand in the way of better housing policies: 
 

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