Inclusive Cities brochure

7/29/2019 Inclusive Cities brochure

1/29

Inclusive Cities


2/29

Inclusive Cities 1

Asias urban population at the

beginning o the 20th century

was 19% o the total global urban

population. By 2005, it had grown to 48%

o the worlds total urban population, and

it continues to grow. By 2006, capital cities

and major commercial centers were swelling

into megacities with populations o more

than 10 millionthere were 10 such citiesin Asia. Moreover, megaregions o more

than 20 million inhabitants are increasingly

common as cities grow beyond ormal

administrative boundaries and swallow

Inclusive Cities

Addressing the Urban Context

Rooms with a viewPasig River, Metro Manila

smaller towns. Metro Manila, or instance,

has grown into a megaregion o some

30 million inhabitants, and the Shenzhen

GuangzhouHong Kong, China region o the

Peoples Republic o China has an estimated

population o 120 million. The Bangkok

region in Thailand is expected to expand

200 kilometers rom its present center by

2020 and to grow ar beyond its currentpopulation o more than 17 million.

The role and shape o cities are changing

as more people migrate to urban areas


3/292

Inclusive Cities

2Inclusive Cities

lack o aordable shelter options

and access to land, especially or

the poor. Moreover, inormal unplanned

settlements in peri-urban areas may

compete with neighborhoods o the

well-to-do who have ed congested city

lie. The resulting denial o tenure to the

urban poor is one o the prime causes or

the inormal settlements that eed urban

sprawl, even though relocating to the

periphery may not be the preerence o

low-income amilies.

At present, countries in Asia and the Pacic

are addressing the issue o slums. For

example, multiamily walk-up apartments

oer low-income amilies the opportunity to

remain in town and closer to work, and this

The role and shape o citiesare changing as morepeople migrate to urban

areas looking or economicopportunities and quality-o-lie improvementsin education, health,and housing

Un

controlledandUnguidedUrbanGrowth

looking or economic opportunities and

quality-o-lie improvements in education,

health, and housing. But urban citizens do

not share equally the benets o economic

growth and progress, and the ailure o

governments to prepare or and address the

needs o the urban poor in cities has created

overcrowded inner-city tenements, slums,

and inormal settlements. The resulting

urban sprawl can be seen in Bangkok, Delhi,

Manila, and Mumbai, a consequence othe


4/29

Inclusive Cities 3

kind o development addresses the need

or medium-rise densities. Nonetheless,

such innovation has not occurred at the

rate required to create livable cities. Many

governments and the donor community

have neglected shelter development,

and slums have prolierated as markets

have ailed to provide aordable land and

housing options. Thereore, development

agencies wishing to address urbanization

and to support the evolution o livable

cities must pursue integrated urban

redevelopment, especially slum upgrading

and new shelter development.

Like many cities and governments across

Asia and the Pacic, the Asian Development

Bank (ADB) is determined to make cities

livable and inclusive by addressing the

problems resulting rom rapid urbanization

and the limited capacity o basic service

delivery systems to keep pace with growth.

Inormal urbanization at

the ringeKathmandu


5/294

Inclusive Cities

Inclusive cities must be economically,

environmentally, and socially sustainable

in all urban operations, including planning,

land management, services, nancing, and

capacity development (ADB 2008a, 2008b),

and investment should ocus on localinrastructure, community acilities,

transport inrastructure, habitat and shelter,

and support or livelihood and commerce

(see gure) (ADB 2010). ADBs Strategy 2020

also addresses urban environmental issues,

the need to reduce the carbon ootprint

o cities, and the need or climate change

and disaster risk education to buildsustainable cities resilient to climate change

(ADB 2008b).

SlumsofHope


6/29

Inclusive Cities 5

ADBs Strategy 2020also addresses urbanenvironmental issues,

the need to reduce thecarbon ootprint o cities,and the need or climatechange and disasterrisk education to buildsustainable cities resilientto climate change

SlumsofDespair

Interventions or Inclusive Cities

Support to livelihood

and commerce

Financesystems

Land

development

housing and

settlement

upgrading

Local

infrastructure

e.g., water,

sanitation

Community

facilities

Transport links/

non-motorized

transport


7/29

UrbanImpactsofExtre

6Inclusive Cities

Livable Cities are Inclusive Cities

Inormal settlements are not uniorm,

and all dier. Rather than being a strictly

environmental and social problem, many

inormal settlements or slums represent hope

and opportunity. Slum inhabitants oten

consider such settlements an opportunity

and will do everything possible to improve

them, but they cannot accomplish this

alone. Many such areas are in need o

remedial investment to provide basic

services such as water, sanitation, and solidwaste management. Likewise, attention

must be given to upgrading slums and

shelters, to preserving historic urban areas,

and to retrotting existing community and

mitigation inrastructure.

Guided Urban Development

Past urban inrastructure development

programs have ocused on water supply,

wastewater treatment, and sanitation

systems, and certainly, private sector

partnerships and conancing must consider

these citywide systems in any ongoing

eort to provide, operate, expand, or

maintain basic services in growing cities.

However, in addition to providing basic

urban services, slum upgrading must

include home improvement or resettlement

schemes, on-site walk-up apartment

development, shelter retrot, and site

protection. Such measures will help reduce

Marikina ater Typhoons Ketsana

and Parma, 2009

Pasig City during Typhoons

Ketsana and Parma, 2009


8/29

WeatherEvents

Inclusive Cities 7

vulnerability, improve a communitys

quality o lie, and expand livelihood

opportunities in an integrated manner.

For instance, urban redevelopment mightsupport projects, such as medium-rise

apartments, that are both culturally

acceptable and contribute to a more

livable, socially inclusive city. Likewise,

credit or housing and home improvements

represents a growing opportunity or

ormal housing institutions. Bulk lending

to micronance entities, community-

based nancial organizations, and

nongovernment organizations oers

improved opportunities or poor amilies

to gain access to credit to improve their

livelihood and living conditions.

In addition, support or proactive land

development in urban expansion areas will

help modiy the present cycle o reactive

remedial eorts to upgrade existing

squatter areas. New sites and services can

guide the urban population to sae, well-

serviced settlements. In the absence o

shelter alternatives or low-income amilies,

cities will always be aicted with slums and

inormal settlements and the associated

overcrowding, vulnerability, and quality-o-

lie issues.

Pasig City, Metro ManilaManggahan

Flood Spillway ater Typhoons Ketsana

and Parma, 2009

Pasig City during Typhoo

Ketsana and Parma, 2009

Bulk lending tomicronance entities,community-basednancial organizations,and nongovernmentorganizations oersimproved opportunitiesor poor amilies to gainaccess to credit to improvetheir livelihood and

living conditions


9/29

Addressing the Existing Urban Context

Many existing urban situations call or remedial

investment to provide basic services, such as water,

sanitation, and solid waste management, that are

not yet available in slums and inormal settlements.

Remedial investment is also urgently required

or programs that ocus on retroitting existing

community inrastructure, housing and schools,

and historic urban areas. An illustrative Asian

Development Bank inclusive urban redevelopment

portolio o options shows a variety o activities

that inclusive urban redevelopment initiativescould support:

Water supply and sanitationlimited interventions

in these two essential services.

Slum upgrading programsocusing on basic

urban services only (including services beyond

water and sanitation, such as ootpaths, roads,

drainage, lood control, street lighting, solid wastemanagement, etc.).

Shelter upgrading programsgoing beyond

basic inrastructure, providing support to home

improvement.

Community facilities retrofit programsstructural

improvements o schools, community centers, and

health acilities, keeping in mind their possible role as

emergency shelters during disasters.

Infrastructure retrofit programsupgrading odecayed inrastructure.

Historic urban areas conservationcombining

upgrading o inrastructure with retroit o the built

environment and revitalization o economic activities.

Housing finance support for low-income

housingaordable and easily accessible inancing

instruments or the urban poor.

What Can Be Done? How Can Inclusive Urban Development Be Achieved?

8Inclusive Cities

SlumRehabilitationConsolidationofInformalNeighborhoods


10/29

Inclusive Cities 9

Finally, attention must be given to historic

urban areas, which oten represent an

underutilized asset in a city. Such areas

attract tourism, a growing source o

employment or the poor, and are home toincreasing numbers o migrants who occupy

shared acilities with limited or no services.

Improving the historic housing stock does

not necessarily mean gentrication but

can support o amilies living in tenements

while also preserving an areas historic value

(Steinberg 2008).

Responding to Climate Change

Beyond such quality-o-lie improvements,climate change also necessitates a change

in the trend o uncontrolled and unplanned

urban development. The shape o cities

needs to reect more climate-riendly

development patterns, including higher

densities, less ossil uel dependence,

and more efcient and sustainable energy

and water supplies. In addition, climatechange increases the vulnerability o

cities, especially cities located along

coastlines and waterways. The principal

climate change eects include

Improving the historichousing stock doesnot necessarily meangentrication but cansupport o amilies livingin tenements while alsopreserving an areashistoric value

Urban heritage

district in Beijing

Urban heritage

district in

Kathmandu

UrbanRev

italizatio

ninHerita

geDistri

cts


11/2910

Inclusive Cities

10Inclusive Cities

Developing countries could

triple their entire built-up area

between 2000 and 2030:

200,000 km2 600,000 km2.

increased temperatures, precipitation, and

extreme weather events, as well as a rise in

sea level. Eight o the 10 coastal cities at

the greatest long-term risk rom climate

change and rising sea levels are locatedin Asia.

Improving the existing built environment

to respond to climate change and the

increasing requency and intensity o

disasters represents a signicant urban

management challenge, especially in

slums and inormal settlements. Inclusive

urban redevelopment and the planning

or the uture growth o cities and towns

must consider the potential eects o suchchange, and thus the denition o urban

inrastructure must be expanded to include

mitigation and adaptation inrastructure.

Existing inrastructure can be made more

resilient to climate change and increasingly

requent and intense disaster events. For

example, segregated service systems

and the installation o control valves to

segregate damaged segments o pipe

can limit damage and maintain sae water

supplies, which is especially important

during an emergency.

Climate change mitigation and community

preparedness will inuence how and what

kind o land will be developed; the location

o lieline acilities, schools, and sae havens;

and the building standards or mixed-

use, high-density, and low-rise housing.

Existing inrastructure canbe made more resilientto climate change andincreasingly requent andintense disaster events


12/29

Inclusive Cities 11

The uture growth o cities implies three spatial

tendencies that will determine much o the

uture work:

Densiication o existing built-up areas;

Urban expansion at the ringes through high-

density, low-rise developments to avoid

ineicient sprawl; and

Satellite cities or new towns (green ield

development).

An illustrative Asian Development Bank (ADB)

inclusive urban redevelopment initiative would

provide a stream o capital investment support

necessary or land development and settlement

upgrading. Poverty reduction depends on the

development o options or the poor. Through

local government, private sector, and civil society

initiatives in partnership with ADB, support can ocus

on the development o new land and shelter

options or the poorguided land development with

sites and services, reception areas, and innovative

incremental housing solutionsto better and more

saely house growing urban populations.An illustrative program that addresses uture growth

activities couldinclude the ollowing:

Structural Initiatives

Basic urban servicespreparing or uture growth

Mitigation infrastructurepreparing or uture

disasters

Guided land development and sites and services

programsproviding land to accommodateuture growth

Innovative shelter solutionsinished products

or incremental low-cost housing, aordable and

adaptive to uture needs

Addressing the Future Growth of Cities

MassiveRequirementforUrbanExpansionandSlumRehabilitation


13/2912

Inclusive Cities

Slum Improvement: Mainly Inrastructure Investments

Water connections

Drainage

Community centers

Green areas/parks

Disaster mitigation

Secondary water networks

Sanitation connections

Solid waste collection points

Bus stops

Public stairs/ramps

Urban roads

Street lighting

Sidewalks

Retention walls

Channeling

Taguig City, Metro Manila

Rehousing o shanty dwellers in

modern walk-up apartments

MetroManilaConvertingInformalSettlementsintoWell-Serviced


14/29

Inclusive Cities 13

These apartments were

built with community

participation

Mitigation inrastructure includes such things

as citywide ood control systems, early

warning systems, site protection schemes,

and retaining walls and sea groins.

Housing also is being looked at dierently in

light o climate change. Higher densities in

inner-city multiamily walk-up apartments,

or instance, are considered more green

because they reduce urban sprawl and

commuting. The ultimate eect o climate

change and its demands on housing

design and options remain to be seen, but

engineering and community participation

can contribute to more climate-sensitive

urban growth.

Densifcation, Urban Expansion,

and New Cities

Inclusive cities require urban

redevelopment that ocuses on creating

livelihood options, improving the built

environment, and creating shelter options.

The uture growth o cities will require

densication o existing built-up areas;

high-density, low-rise development atthe ringes o cities to avoid inefcient

sprawl; and development o satellite

cities or new towns. Concurrently, these

three approaches o densication,

Higher densities in inner-city multiamily walk-upapartments, or instance,

are considered moregreen because theyreduce urban sprawland commuting

ModernResidentialA

reas


15/2914

Inclusive Cities

Slum beore upgrading

Slum beore upgradSlum ater reconstruction

urban expansion at the ringes, and new

city development on green elds will need

to be pursued.

Financing Inclusive Cities

Such initiatives require a stream o capital

investment through government, civil

society, and private sector initiatives:

Government Initiatives

ADBs developing member countries seek

viable lending opportunities to nance

inclusive cities, and ADB can support these

countries inclusive urban redevelopment by

providing a reliable stream o resources to

increase the scale o project development

and investment. Knowing that resources will

be in place or uture project nancing canstimulate the development o national and

micronance systems or service delivery.

Knowing that resources willbe in place or uture projectnancing can stimulate thedevelopment o nationaland micronance systemsor service delivery

IndiaRecentADBExperienceinHousingandSettlementUpgrading

14Inclusive Cities


16/29

Inclusive Cities 15Slum ater upgrading

Savings group

1 Loan 1415-IND: Karnataka Urban Infrastructure Development Project ($85 million). Other ADB-financed Indianprojects with slum improvement components include Loan 1704-IND: Karnataka Urban Development and CoastalEnvironmental Management Project ($175 million); Loan 1813/2293-IND: Kolkata Environmental ImprovementProject ($330 million); and Loan 2046/2456-IND: Urban Water Supply and Environmental Improvement inMadhya Pradesh ($252 million). About 2%5% of these loans were dedicated for slum improvement.

India: Urban infrastructure development.

The ADB-nanced Karnataka Urban

Inrastructure Development Project

is an example o a statewide project

spearheaded by the government.1 In 1993,

the Government o India approached ADB

or assistance in preparing a project to

support the development o areas around

Bangalore as growth centers and viable

alternatives to the city. The investment in

works ($80.3 million) and housing loans($20 million) was intended to build the

capacity o local urban bodies and related

institutions to ensure the sustainability

o the investments. It also was to provide

housing nance assistance to low-income

groups in the project towns at aordable

interest rates. This multisector project

included environmental sanitation, road

improvement and bus or truck terminals,

poverty reduction education through

slum improvement, industrial

development, institutional strengthening,and housing nance.

KarnatakaSavings Group

Relevant Experiences


17/29

IndiaUrbanRenewalundertheJawa

harlalNe

16Inclusive Cities

MumbaiPrivate-sector-built

housing in Dharavai, one o

Asias biggest slums

MumbaiTo get access to

land, private developers need

to rehouse existing slum

populations

Although the unds approved by state

governments or slum redevelopment under

this and other similar ADB-nanced projects

in West Bengal and again in Karnataka were

only a ew million dollars (only 2%5% othe total project cost), these relatively small

slum-improvement programs nonetheless

had a major positive eect on the

beneciary communities. Most unding

went toward physical inrastructure.

Funds allocated or economic programs

represented little more than seed money,

but the supported groups quickly became

sel-sustaining.

The slums involved typically varied inpopulation rom a ew thousand to more

than 100,000 people, and tens o thousands

o amilies beneftted rom the improved

basic services provided under the projects.

Many more amilies were able to improve

their fnancial situation through participation

in one o the various programs. The physical

inrastructure and income-generating

opportunities resulted in immediate

improvements in public health, economic

opportunity, and quality o lie.

India: Urban renewal. Another Indian

program, the Jawaharlal Nehru National

Urban Renewal Mission (JNNURM), was

initiated by the Government o India in

2001. The JNNURM wants to draw up acoherent urbanization policy and strategy

to implement projects in select cities.

These projects are meant as an urban

sector reorm. They are ast tracked and

represent planned development with a

ocus on efciency in urban inrastructure

delivery. Community participation and

accountability o urban local bodies toward

its citizens is an added value.

The JNNURM strategy takes a long-termview over a 2025 year period, with 5-year

updates. Each city in the mission program

India: Many more amilieswere able to improve theirfnancial situation throughparticipation in one o the

various programs

16Inclusive Cities


18/29

NationalUrb

anRenewalMi

ssion(JN

NURM)

Inclusive Cities 17

Indore, Madhya Prade

social housing

is to develop policies or unding that

include national, state, local, and external

sources, ollowed by uture growth plans

or each 5-year plan that integrate land

use with services, urban transport, andenvironmental management. This is to

be ollowed by specic city development

plans, required or a city to access program

unds. The plans are implemented through

detailed project reports in identied cities

with a clear role or the private sector in the

development, management, and nancing

o urban inrastructure.

Among the objectives o this national

program or urban development is theintegrated development o slums in

designated cities. The program, conceived

as an enabling ramework, provides

improved shelter, basic services, and other

civic amenities to the urban poor, as well

as security o tenure, at aordable prices.

Where possible, housing is located near

peoples work, reducing environmental

impact.

Thailand: Community-based

development. Thailands baan mankong

(secure housing) program represents

another government-initiated eort.

Through community-based savings and

credit entities, the Government o Thailand

addressed urban poverty and the need

to develop more participatory methods

in support o low-income groups. The

Community Organizations Development

Institute (CODI), an independent publicorganization and an oshoot o the National

Housing Authority, was identied as the

implementing agency or the program.

shakapatnam, Andhra Pradesh

ocial housing or ormer slum dwellers


19/29

IndiaUrbanRenewalundertheJawaharlalNe

18Inclusive Cities

Mumbai, Maharashtsocial housing

The institute provides government unds

directly to poor communities in the orm

o inrastructure subsidies and housing loans

or community-managed upgrading eorts.

The CODI Board comprises representatives

o government and community

organizations, with wide links to ensure

urban and rural collaboration. Partnerships

were an important aspect o the program,

and communities established working

relationships with local governments,

proessional and academic entities, and

nongovernment organizations. The program

ocused on upgrading existing settlements

wherever possible, to build on community

eort and investment. For sites considered

too vulnerable, nearby relocation sites were

ound, which minimized disruptions.

The CODIs 5-year plan was to improvehousing, inrastructure, and security

o tenure or 300,000 households in

The program ocusedon upgrading existingsettlements whereverpossible, to build oncommunity eort

and investment


20/29

2 Loan 2072/2073(SF)-INO: Neighborhood Upgrading and Shelter Sector Project ($73.7 million).

ationalUrbanRenewalMission(JNNURM)

Inclusive Cities 19Thirukalundram, Tamil Nadu

Home Improvement Project

2,000 poor communities in 200 cities in

Thailand. Thailands experience eatures

the key lesson that community-identied

and -managed projects are more likely

to improve the built environment andempower the community.

Civil Society Initiatives

Financing an inclusive cities initiative can

provide critical support or the Strategy

2020 ocus on civil sector development

(ADB 2008b). ADB has the opportunity to

diversiy its partners and the sources o

fnance or such development programs.

Finance may take the orm o direct projectdevelopment or the use o donor grants as

risk capital to prepare commercially viable

municipal services projects or the local bond

market. It also can provide lines o credit to

support ormal bulk lending to microfnance

organizations, as well as dedicated fnance

or retroft initiatives covering existing urban

areas or uture city growth.

ADB has grant unding available to support

redevelopment initiatives related to cleanenergy, climate change, water, and urban

development. Grant unds also are available

rom the Japan Fund or Poverty Reduction.

Support or knowledge management is

available rom the Republic o Korea e-Asia

and Knowledge Partnership Fund.

Indonesia: Neighborhood and shelter

upgrading. One such civil society project,

the ADB-nanced Neighborhood Upgrading

and Shelter Sector Project in Indonesia,lays out a comprehensive strategy to

address the existing and uture shelter needs

o the poor and identies the systems that

need to be strengthened to make such

housing and systems work.2 The project

ocuses on improved site planning and


21/29

IndonesiaNeighborhoodUpgrading

20Inclusive Cities

Water supply Community toilets

Solid waste co

management, increased access to shelter

nance by the poor, upgrading poor

neighborhoods and developing new sites,

and strengthening the sector institutions

involved in the program.

The settlement upgrading component has

been successul, and the project has helped

establish a supportive policy, institutional,

and regulatory environment to meet

housing needs in inormal urban settlement

areas. In addition to improving roads and

pathways, which has absorbed a major

share o budget allocated or civil works,

the project has helped to improve water

supply and sanitation acilities, drainagenetworks, and street lighting, all o which

have improved livelihoods and health.

Improved street lighting, or instance, has

reduced petty crime and violence, and

improved drainage acilities have reduced

ooding and thus the destruction o

property and the incidence o waterborne

diseases. New site development has

provided housing or poor amilies in urban

slum areas. Community participation in

designing inrastructure improvements and

implementing civil works, and enthusiasm

among poor community members who

were selected to move to new houses under

the new site development, was very high.

Indonesia: Improved streetlighting, or instance, hasreduced petty crime andviolence, and improveddrainage acilities havereduced ooding and thusthe destruction o propertyand the incidence owaterborne diseases.New site development has

provided housing or pooramilies in urban slum areas

20Inclusive Cities


22/29

Inclusive Cities 21

ootpaths

High-density neighborhood (kampung)

Water supply

Footpaths

By the end o 2009, 803 upgrade

projects were completed and more than

3,000 civil works contracts were awarded

and implemented by local community

groups. Total improvement covered about6,832 hectares spread over 32 urban areas

and inhabited by 3.9 million people. Among

project benefciaries, more than 1.8 million

people (40%) in 900 urban slums were

categorized as poor.

Private Sector Initiatives

ADB has identied the need to expand

the role o the private sector in nancing

and managing urban inrastructure andinclusive shelter needs. The private sector

oten has avoided dealing with low-

income amilies because o sociocultural

dierences, perceived risks, lack o required

collateral, and the administrative costs o

small loans. The preerred model is or low-

volume activities with high prot margins.

Nonetheless, the private sector has much

to contribute to slum upgrading and

urban redevelopment, particularly given

the sectors nongovernment, or-prot

ocus. The rigors o dealing with a private

entity provide a strong incentive to designaordable programs that ocus

on real cost recovery.

The cost recovery and sustainability o a

service or loan requires the enorcement

o building regulations, as well as eective

collection procedures, on the part o the

developer or lending entity. Developing

member countries may choose to

implement a program themselves or

they may contract with private entitiesto implement such programs in order to

improve cost recovery. For example, Indias

Housing Development Finance Company


23/2922

Inclusive Cities

has developed a range o loan products that

are made available to borrowers only ater

rigorous due diligence has been carried out,

and the company has developed methods

to acilitate eective collection and to

avoid deault.

Implementing urban service delivery

systems, as opposed to projects, is the

key to scaling up activities. Publicprivate

partnerships work especially well or

citywide service provision, but inclusive

citywide systems must include inormal

settlements and slums. Liquidity in national

capital markets can be leveraged into slum

improvement by including slum networks

in commercially viable citywide systems.

Publicprivate partnerships can design

commercially viable projects that can

mobilize land provision and raise unds

in national bond markets and leverage

local revenues.

For instance, the cities o Ahmedabad

and Tirupur in India have developed and

implemented projects unded through

the Indian bond market and have

worked to create condence within the

investment community. Ahmedabad

raised $89.5 million between 1998 and

2006 through our municipal bond issues.

The Karnataka Water and Sanitation

Pooled Fund o the Greater Bangalore

Water and Sewerage Project raised over

$23 million with a United States Agency

or International Development credit

Beore upgrading

Drains/sewers ater upgrading

Electricity

Water

supply

MetroManilaSlumImprovement

22Inclusive Cities


24/29

Inclusive Cities23

Community center

Footpaths

guarantee, leveraging every $1 provided

into $29 in domestic capital. One important

lesson learned rom the Ahmedabad

bond issue is that any commercially viable

project must cover project preparation

costs through ees. Should projects not

succeed, project preparation costs will

be absorbed by the government, but the

amounts involved still are considerably less

than nancing a water supply or wastewater

treatment system.

Turnkey contracts with the private sector

or inrastructure design and construction

have become a useul tool or local

governments, providing efciency and cost

control, and this approach can also work

or urban redevelopment. Such contracts

also may include capacity building and

promote community participation. Efcient

management and ee collection, especially

in water supply systems, encourages private

velihood training

sector entities to consider participating in

slum improvement and basic services delivery.

The Philippines: Urban poverty reduction.

Strategic Private Sector Partnerships

or Urban Poverty Reduction in MetroManila (STEP-UP) was a publicprivate

partnership between some 200 businesses

and enterprises and 34 homeowners

associations.3 The urban poverty reduction

project, implemented in 23 poor urban

communities in Metro Manila rom 2003

to 2006, provided basic community

inrastructure, home improvement loans to

1,350 households, and livelihood loans to

852 borrowers. In addition, 741 people were

trained in skills development.

The approach o STEP-UP was to work with

organized communities that initially had

occupied land illegally and then purchased

their plots through Community Mortgage

3 Japan Fund for Poverty Reduction PHI 35480: Strategic Private Sector Partnerships for Urban Poverty Reductionin Metro Manila (STEP-UP) ($3.6 million grant).


25/2924

Inclusive Cities

Program loans. The project developed the

capacity o the homeowners associations

and provided basic inrastructure,

and households were able to receive

rom a homeowners association home

improvement loans with a maximum termo 7 years. A recent external evaluation

o the STEP-UP program ound that

the communities exceeded their home

improvement loan target, with a loan

portolio o $1.77 million in uncollateralized

loans, and achieved a 95% repayment rate as

o January 2007. Access to credit represented

an opportunity or the communities and was

an important element o the project.

STEP-UP in Manila:The project developed thecapacity o the homeowners

associations and providedbasic inrastructure, andhouseholds were ableto receive rom theirhomeowners associationhome improvement loanswith a maximum termo 7 years

24Inclusive Cities

Jakarta, Indonesia

TransformingCities


26/29

Inclusive Cities 25

viewed only as sector lending, but ADB

has used urban inrastructure investment

very successully in past integrated slum

upgrading programs.

In addition to these structural initiatives,

successul urban development depends

on a number o nonstructural support

initiatives. For example, an updated,

inclusive inormation base provides the

basis or planning and implementing

improvements. Likewise, resolving tenure

issues is critical to improving slums, because

amilies without tenure will limit their

investment in the security and resilience o

Working with ADB

ADB has the opportunity to take the

lead in poverty reduction in Asia

and the Pacic by addressing the

demands o increasing urbanization. With

ADB support, cities can engage in proactive

urban redevelopment and create inclusive

livable cities that consider climate change

and disaster risk management in both the

built and enabling environments. Failure

to improve the urban built environment,

particularly in slums, will undermine ADBs

poverty reduction eorts.

ADB has identied urban inrastructure as a

core area o operations under Strategy 2020

(ADB 2008b), and it aims to double its urban

investment to over $2 billion annually under

its Urban Services Initiative (20072015)

(ADB 2007). Urban inrastructure is oten

MumbaiDharavi, India


27/2926

Inclusive Cities

their homes and sites. The tenure situation

in inormal settlements would be one

o the key issues to be addressed.

Another important element o urban renewalis education. Awareness campaigns must

improve awareness o slum improvement and

relocation opportunities; new shelter options;

hazard management; disaster preparedness;

water, sanitation, and health issues; access

to credit; and improved construction

technologies, among other things.

A ourth critical element is building the

capacity o government, civil society, and

the private sector to improve livelihood

opportunities and access to credit, to develop

resilient building technologies, and to oster

transparent project design, management,

and implementation. Finally, codes and

standards must encourage incremental

housing and inrastructure development

and resilient building methods, and provide

guidance or retrotting.

The tenure situation ininormal settlementswould be one o the keyissues to be addressed

26Inclusive Cities

TransformingCities


28/29

ADB joins other multilateral development

banks and development partners in

identiying urban areas as the geographic

ocus or uture economic development.

Cities are positive economic orces, and nocountry or donor can aord to risk reduced

economic perormance due to the poor

environmental quality or underperormance

o cities. ADB is committed to assisting

its developing member countries in

encouraging inclusive cities.

Reerences

ADB. 2007. Urban Services Initiative. Manila.

ADB. 2008a. Managing Asian Cities. Manila.

ADB. 2008b. Strategy 2020: The Long-TermStrategic Framework of the Asian Development

Bank, 20082020. Manila.

ADB. 2010. Urban Operations Plan (drat). Manila.

Steinberg, F. 2008. Revitalization o Historic

Inner-City Areas in Asia: The Potential orUrban Renewal in Ha Noi, Jakarta, and Manila.Urban Development Series. Manila: Asian

Development Bank.

Inclusive Cities 27

Photographs on pp. 13, 6 (let), 7 (let), 815, and 2025, 27 by

F. Steinberg; on pp. 6 (ri ght), and 7 (right) by ADB; on p. 16 by

B. Banerjee; on pp.1719 by the Ministry o Housing and Urban

Poverty Alleviation, India; and p. 26 by AFP.


29/29

Inclusive Cities

Slums, informal settlements, and dilapidated inner-city tenements are problems thatmany cities in Asia and the Pacific struggle with while their economies try to modernizeand develop. Their existence puts at risk not only these economies, but also poor peopleoccupying vulnerable areas that climate change and natural disasters will only make worse.Slums are being addressed in countries in Asia and the Pacific but not yet at the rate required

to create livable cities. Strategy 2020 of the Asian Development Bank (ADB) aims for livablecities and will address the range of problems resulting from rapid urbanization and thelimited capacity of basic service delivery associated with present and future urban growth.To accomplish the vision of livable cities, livelihood opportunities and shelter options ofincremental land and housing development are important. ADBs developing membercountries will look for viable lending opportunities to finance inclusive cities.

About the Asian Development Bank

ADBs vision is an Asia and Pacific region free of poverty. Its mission is to help its developingmember countries reduce poverty and improve the quality of life of their people. Despite theregions many successes, it remains home to two-thirds of the worlds poor: 1.8 billion peoplewho live on less than $2 a day, with 903 million struggling on less than $1.25 a day. ADB is

committed to reducing poverty through inclusive economic growth, environmentallysustainable growth, and regional integration.

Based in Manila, ADB is owned by 67 members, including 48 from the region. Its maininstruments for helping its developing member countries are policy dialogue, loans, equityinvestments, guarantees, grants, and technical assistance.

Asian Development Bank6 ADB Avenue, Mandaluyong City1550 Metro Manila, Philippineswww.adb.orgPublication Stock No. ARM102657

Documents

Inclusive Cities brochure