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Private Sector Development

To achieve #Housing4All, don't throw the baby out with the bathwater

Luis Triveno's picture
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Mexico City. Photo by VV Ninci via Flickr CC

In a world divided over how to deal with such serious problems as terrorism, immigration, free trade, and climate change, governments agree on the urgency of solving what is arguably the biggest problem of all: supplying safe, well-located, and affordable housing for the billions of people who need it.

There is even agreement on the basic steps to that goal:  improving land management and adopting more tenure-neutral policies.

There is also consensus on the fact that government alone cannot afford to pay the bill.  According to McKinsey & Co., the annual price tag for filling the “global housing gap” ($1.6 trillion) is twice the cost of the global investments needed in public infrastructure to keep pace with GDP growth.
 
As we approach the 70th anniversary in 2018 of the declaration of housing as a “universal human right,” it’s time for governments to turn to an obvious solution for closing the housing gap that they continue to ignore only at their peril: long-term market finance. Without a substantial increase in private capital, the housing gap will continue to increase, and so will the odds of social discontent.

Competitive cities for jobs, growth, poverty reduction and shared prosperity?

Soraya Goga's picture
Photo by ecuadorpostales via Shutterstock

We are all aware of the statistics: cities are home to more than 50% of the world’s population, and they are growing so fast that 66 out of 100 people on earth will be urban dwellers by 2050. This, of course, will have major implications for people and poverty, climate change, and service delivery.
 
But did you also know that cities are the key drivers of global and national economic growth?
 
Currently, cities generate more than 80% of global GDP. Since the early 2000s, three-quarters of the world’s 750 largest cities have grown faster than their national economies. One of the key reasons for those cities’ success is higher productivity—as a result of their ability to attract skilled workers—as well as a high concentration of productive entrepreneurs and firms.
 
For decades, national and city leaders have also taken actions to build competitive cities, increasingly facilitating firms and industries to create jobs, raise productivity, and increase incomes over time—especially for the urban poor. They see this as the pathway to eliminate extreme poverty and to promote shared prosperity. This is particularly important in Sub-Saharan Africa and South Asia, where most of the world’s extreme poor live.

Retrofitting: A housing policy that saves lives

Luis Triveno's picture
Building earthquake-resistant housing in Peru. Photo: USAID/OFDA, Auriana Koutnik/Flickr
When a hurricane, earthquake or other natural disaster strikes a poor country, families too often suffer a double tragedy: the loss of loved ones and their most valuable (and sometimes only) asset, their home. In the aftermath of the 7.0 magnitude earthquake in Haiti in 2010, which killed more than 260,000 people, 70% of asset losses were related to housing. Ecuador faces billions of dollars in reconstruction costs from last April’s 7.8 earthquake, which killed 900 and injured almost 28,000. If Peru were hit by an 8.0-degree earthquake, an estimated 80% of potential economic losses would involve housing.
 
And while nature’s fury does not distinguish between urban and rural areas, a large majority of disaster losses are concentrated in cities, where they disproportionately affect the poor. This creates a great challenge for low and middle-income countries.  In Latin America and the Caribbean, 200 million people—1/3 of the population—live in informal settlements, where most dwellings don’t comply with construction codes and home insurance is non-existent. Perhaps unsurprisingly, LAC’s informal districts also account for the majority of disaster-related deaths in the region.
 

Safer buildings are the key to a disaster resilient future

Ede Ijjasz-Vasquez's picture
A few months ago, a 7.8 magnitude earthquake in Ecuador claimed hundreds of lives, left almost 28,000 people injured, and caused $1 to 3 billion worth of damage. Most human and economic losses were directly linked to the collapse of buildings: the tremor caused the destruction of an estimated 10,000 structures, many of which were located in unsafe areas or did not meet minimum safety standards.
 
The tragedy in Ecuador serves as a stark reminder that, in many cases, it is not earthquakes or other disasters that kill people, but failing building structures. Therefore, improving building safety will be key in protecting communities against rising disaster and climate risk.
 
With over a billion dwelling units expected to be built between now and 2050, focusing on new construction will be particularly important, and will help mitigate the impact of natural disasters for generations to come.
 
The good news is that we have the knowledge and technology to build safe, resilient structures. But, more often than not, this knowledge is not put into practice due to insufficient or poorly-enforced regulation, as well as a lack of incentives.
 
In this video, Ede Ijjasz and Thomas Moullier explain why building safety will play a critical role in enhancing disaster resilience, and discuss concrete recommendations on how to get there.
 
If you want to learn more about this topic, we invite you to discover our latest Sustainable Communities podcast.
 
Related:

Eight stubborn facts about housing policies

Luis Triveno's picture
A low-income residential neighborhood in Mumbai, India. Photo: Simone D. McCourtie / World Bank
As John Adams famously warned, “facts are stubborn things” that we cannot wish away. Governments in the developing world are finally facing up to the increasing need for affordable housing: today 1.2 billion people live in substandard housing; by 2030, 3 billion will need new housing. While challenges may vary by country, I believe there are at least eight “stubborn facts” about housing policy that should not be ignored.

Can other cities be as competitive as Singapore?

Sameh Wahba's picture
 Joyfull/Shutterstock
Photo: Joyfull/Shutterstock
Singapore is an example of one of the most competitive cities in Asia and in the world. Many, many other cities want to be the next Singapore. In fact, Singapore has been so successful that some believe that its success cannot be emulated. They forget that in the 1960s, Singapore faced several challenges – high unemployment, a small domestic market, limited natural resources, not to mention that most of the population lived in overcrowded unsanitary conditions in slums. Challenges that would sound very familiar to a large number of cities in the developing world.

And so, what better place than Singapore for the Asia Launch of the Competitive Cities for Jobs and Growth: What, Who & How report. The World Bank Group, along with the Centre for Liveable Cities and International Enterprise Singapore co-sponsored the launch as part of Urban Week held in Singapore from 8-11 March, 2016. The roundtable was attended by over 100 delegates representing cities from 23 countries.

The competitiveness potential for cities is enormous. Almost 19 million extra jobs, annually, could be created globally if cities performed at the level of the top quartile of competitive cities. Of this potential, more than 1/3, i.e. equivalent to an additional 7 million jobs, comes from cities in East Asia. Between 2000 and 2010, nearly 200 million people moved to East Asia's urban centers – these people will need jobs. Where will these jobs come from? How will they be generated?