2002 ar final - university college london...mahim.bombay, india,1995. introduction cities alliance...

CitiesAllianceC i t i e s W i t h o u t S l u m s

2002ANNUAL REPORT


1818 H Street, NW

Washington, DC 20433 USA

Tel: (202) 473-9233

Fax: (202) 522-3224

[email protected]

www.citiesalliance.org


T A B L E O F C O N T E N T S

Introduction ....................................................................2

Cities Alliance in Action ..................................................5

City development strategies................................7

Citywide slum upgrading ..................................20

Financial services for the urban poor................35

Learning and knowledge sharing ......................41

Organisation ..................................................................47

Consultative Group ............................................47

Policy Advisory Board........................................48

Secretariat ........................................................49

Financials ......................................................................50

Cover: The shantytown of Damunagar, one of Asia‘s two largest,continues to grow and is eating into the countryside

around Bombay, India, 1995.

Cities Alliance 2002 1

Meeting the Challenge of Cities Without Slums

The world is continuing to urbanise rapidly – particularlyin developing countries. Nearly half of the world’s population is now living in urban areas and an increasing

proportion of these people are poor. Poor people are drawn tocities and towns because they provide employment opportuni-ties. However, taking up such opportunities all too often requiresthe poor to live in squalid conditions, in slums and shanties, andto endure inadequate services, insecurity, and consequent socialand political problems.

The Millennium Development Goals, agreed to by the entire United Nations membership,include a clear international commitment to meet this growing challenge of poverty in urban areas. Development assistance works most effective-ly when the recipient countries themselves drive the process.At the national level, when adeveloping country government prepares a Poverty Reduction Strategy, they set the agenda. International development agencies can then collaborate in the effort.The CitiesAlliance supports the same approach at the city level. Urban poverty is a global problem,but cities and their citizens need to deal with it at a local level, and international agenciesshould support them in doing this.

The experiences captured in this Annual Report demonstrate the value of cities taking the lead and forging partnerships with civil society, the private sector, and the poor urbanresidents themselves, in order to eliminate poverty.These partnerships work to challengethe systematic exclusion of the urban poor, develop new livelihood opportunities, improveservices, and empower poor people to live as full citizens.

The Alliance’s focus on citywide initiatives, rather than localised pilot interventions, isalready resulting in innovative community-led financial facilities that increase poor people’saccess to credit for housing and infrastructure, and in new mechanisms for engaging thepublic and private sectors in the provision of services to the poor.

DFID activities are aligned with the Cities Alliance agenda to promote city-level strategicplanning and to work towards cities without slums.As members of the Cities Alliance, ourcollective goal must be not only to work towards, but to exceed, the target of improvingthe lives of 100 million slum dwellers by 2020.

I am pleased to have this opportunity to commend the work of the Cities Alliance in this,its second Annual Report.

Clare ShortSecretary of State for International DevelopmentUnited Kingdom

Rt Hon Clare Short MPSecretary of State for InternationalDevelopment

Three years after its creation, theCities Alliance is already makingdevelopment impacts at both the

global and local levels. Principal amongthese is the adoption by world leaders of aninternational development target which, forthe first time, focuses on tackling povertywhere it is growing most rapidly — incities.The Alliance’s Cities Without Slumsinitiative has been endorsed as a MillenniumDevelopment Goal –“by 2020, to haveachieved a significant improvement inthe lives of at least 100 million slumdwellers”. This goal is already being adopt-ed as a challenging vision by civic leadersworldwide, who are responding with specif-ic actions and concrete targets for improving

the living conditions of their most vulnerableand marginalised urban residents.

The Alliance is helping its members define anew strategic course for urban developmentco-operation, a course increasingly led bycivic leaders who are tackling head-on thenegative effects of growing inequalities andsocial exclusion. By focusing on the city asthe unit of analysis, rather than on sectors,and on solutions promoted by local authori-ties and the urban poor themselves, citydevelopment strategies (CDS) supported bythe Alliance provide a framework for city-wide poverty reduction.And by engagingpotential investment partners from the outset, the Alliance is encouraging the

Cities Alliance 20022

A pipeline carrying drinking water to more prosperous districts of Bombay passes through the shantytown of Mahim. Bombay, India, 1995.

Introduction


development of new investment instrumentsto expand the level of resources reachinglocal authorities and the urban poor.

This report highlights Alliance impacts atboth the local and the global level. Examplesfrom all regions demonstrate Alliance part-ners in action during Fiscal Year 2002(FY02), as well as the achievements andimpacts of Alliance activities initiated inFY01. It is clear that Alliance partners havealready begun the process of drawing lessonsfrom these experiences and are adaptingtheir approaches based upon these lessons.

At the global level there is growing evidencethat international commitment to the CitiesWithout Slums Millennium DevelopmentGoal (MDG) is influencing the operations of Alliance partners and the way they dobusiness:

■ “Secure Tenure” was adopted as an indica-tor for measuring progress towards theCities Without Slums MDG Target – asignificant step as insecure tenure is acausal factor of both urban poverty andslum formation.

■ Speaking on “The Economics ofSustainability” in April 2002, macro-economist Jeffrey Sachs, advisor to theUN Secretary-General on the MDGs,stressed the need for an “urban-basedpoverty reduction strategy”, arguing that“the current rural-based strategy doesnot address the plight of cities…”.

■ Norway became the latest Alliancemember to issue an urban developmentpolicy paper. NORAD’s position paperPoverty and Urbanisation - Challenges andOpportunities (April 2002), quotes theAlliance’s 2001 Annual Report on itscover page, and strongly commitsNORAD to contributing to the CitiesWithout Slums MDG.

Introduction

3

Achieving the promise of Cities Without Slums will require

new thinking and behaviour from slum dwellers,

governments and international agencies alike. To continue

business as usual is to guarantee the creation of the next

slum, and the misery that it embodies.

Anna Tibaijuka,Executive Director of UN-HABITAT,Co-Chair of the Cities AllianceConsultative Group, World Habitat Day message,October 2001.

Cities Without Slums Millennium Development Goal

Target 11

By 2020, to have achieved a significantimprovement in the lives of at least 100million slum dwellers

Progress will be monitored through...

Indicators 30 and 31:

(30) Proportion of people with access to improved sanitation

(31) Proportion of people with access to secure tenure

United Nations General Assembly (A/56/326) 6 September 2001.

Introduction


■ The World Bank’s World DevelopmentReport 2003:Sustainable Development in aDynamic Economy, devotes a full chapter to“Getting the Best from Cities”. Sectionson “Inclusion and access to assets – challenging the institutional roots ofurban slums” and “Empowermentthrough access to assets – security oftenure” highlight critical issues directlylinked to achieving the Cities WithoutSlums MDG.

■ The Asian Development Bank (ADB)joined the Cities Alliance.ADB's com-mitment, as spelled out in its TechnicalAssistance programme “PromotingUrban Poverty Reduction ThoughParticipation in the Cities Alliance”(March 2002), will support CDS andcitywide upgrading in the region andshould also strengthen Alliance effortsto mobilise investment follow-up.

The events and activities of this last yearhave broadly reinforced the Alliance’s strategic focus on urban poverty reduction.Alliance members committed to achieve thisgoal on 16 December 1999, the day theylaunched the Cities Without Slums action plan.Moving forward, the Alliance needs to con-tinue to strengthen its ability to fill strategicknowledge gaps through learning and infor-mation-sharing among its members. Inreviewing its activities, it is important todetermine what works, what does not, andwhy.To this end, though the Alliance is lessthan three years old, it has commissioned anindependent evaluation of the impacts of theAlliance partnership.An initial report to themembership is scheduled for the fall of2002.What are the early results of the inter-ventions? How should impact be measuredand monitored? Are the interventions beingconducted with efficiency and efficacy? TheAlliance must ask these questions of its ownpartnership, and of the partners with whichit engages, to ensure that it achieves results.

The Cities Alliance is a unique policyforum in that it brings together representatives of the world’s cities

as equal partners in a direct dialogue withbi-lateral and multi-lateral developmentagencies and financial institutions.A princi-pal motivating factor for Alliance membersto join forces is their recognition that theyhave much to learn from each other and thatdrawing on their collective experience willhelp fill critical knowledge gaps.

The Alliance seeks to advance the collectiveknow-how of local authorities and theirinternational development partners on waysto reduce urban poverty and improve thequality and impact of urban developmentcooperation. Building on the common elements of their respective urban strategies,Alliance partners have joined forces to pro-mote a more comprehensive approach tourban poverty reduction by focusing onaction at the country level in two key areas:city development strategies (CDS) whichreflect a shared vision for the city’s futureand local priorities for action; and citywideand nationwide slum upgrading to systemat-ically include the most vulnerable andmarginalised urban residents as both part-ners and beneficiaries in the city’s growth.

To achieve its goals at the global level theAlliance is pursuing four interrelated strategic objectives:

Early outcomes of this strategy are encour-aging.Alliance support to build politicalcommitment around the goal of CitiesWithout Slums has led to the adoption, forthe first time, of an international develop-ment target for urban poverty reduction.And as described in this report, focusing onCDS and citywide upgrading has met withan enthusiastic response from cities of allsizes, in more than 25 developing countries,which are working in partnership withAlliance members to achieve this goal.


Cities Alliance in Action

5

Advancing collectiveknow-how

(learning alliance)

Directly linking withinvestments and newfinancial mechanisms

Increasing coherenceand synergies

Building PoliticalCommitment



Becoming a learning alliance

The challenge of becoming a learningalliance has two critical dimensions: to systematically analyse and effectively com-municate policy and operational lessonsfrom experience, and to fill critical knowl-edge gaps. Over the past year it has becomeincreasingly clear that each of these functionsmerits much greater attention, as well as agreater share of the Alliance’s resources.Thisimplies the need to more systematicallyincorporate these learning and communica-tion activities as an integral part of theAlliance’s work programme.

While this learning alliance objective has yetto be satisfactorily achieved, there are signsof progress.Alliance partners are alreadypooling their resources to begin to fill twoknowledge gaps which are critical to scalingup: how to mobilise private capital to extendfinancial services and infrastructure to theurban poor; and the range of policy optionsto increase security of tenure, propertyrights, and access to public services.TheAlliance is also beginning to receive moreproposals which focus on the learningalliance function, and which are more systematically engaging existing networks of local authorities, urban professionals,academics, universities, and urban policyresearch institutes.

The Alliance is working with interestedmembers and partners to develop a learningand communications strategy which willhelp guide and strengthen these critical functions.

Targeting results

Cities Alliance activities are designed andcarried out by Alliance partners, and focus

on marshaling their resources to improve thequality and coherence of urban developmentcooperation and its poverty reductionimpacts.

Since its inception, the Alliance has investedUS$30 million in 27 countries, 17 regionaland global learning activities, and in one facili-ty (the Community-Led InfrastructureFinance Facility - CLIFF).Alliance funds arecatalytic.They are seed funds used to helpAlliance partners build strong foundations forcitywide and nationwide slum upgrading andcity development strategies.They also lever-age the public and private sector capitalinvestments required for implementation.TheAlliance is selective in the initiatives it funds.All proposals are evaluated against the tencore criteria that are reflected in its charter.

Cities Alliance Criteria

▲ Targeting the objective – city development strategiesand/or scaling up slum upgrading;

▲ Government commitment and approval – approved bylocal and national authorities;

▲ Linkage to investment follow-up – potential investmentpartners are involved from the design phase;

▲ Partnerships – conceived in a participatory process withlocal stakeholders, including private sector and communityorganisations;

▲ Co-financing – combines seed funding from the Alliancewith co-financing from cities as well as other sources;

▲ Coherence of effort – promotes cross-sectoral coordination and inter-agency collaboration;

▲ Scaling up – moves beyond pilot projects to citywide andnationwide scales of action;

▲ Institutionalisation and replication – helps cities and theirnational associations institutionalise city development strategies and citywide slum upgrading;

▲ Positive impact on environment – achieves significantenvironmental improvements, especially in the living conditions of the urban poor; and

▲ Duration – achieves deliverables within well-defined timeframes, preferably within 24 months.


7Cities Alliance 2002

City DevelopmentStrategies

Strategic decision-making in managingurban growth is not yet common prac-tice in developing-country cities —

many of which are growing at rates unprece-dented in human history.The Alliance hassought to promote city development strategies (CDS) as a collaborative decision-making process designed to help reduceurban poverty and provide the basis for sus-tainable urban development.The Alliance issupporting CDS in all regions, and in citiesvarying in population from 100,000 to city-regions having more than ten millioninhabitants. Over the last three years, virtu-ally all members of the Alliance have directlyengaged in supporting this process at thecountry level.

What have we learned so far? The summariesof six Alliance-supported CDS processes,provided below, illustrate several key lessons.First, to be effective, participants need to seeimplementation, rather than the develop-ment of the CDS, as their primary goal.Atthe same time, providing it is results-orient-ed, the CDS process itself can achievesignificant impacts on governance, accounta-bility, and transparency.

Another key finding is that implementationshould not be limited to new investments—it can be led by the adoption of new poli-cies and by the enhanced capacity of citizensand local authorities to make informedchoices and achieve greater equity in sharingcosts and benefits. In several cases, city-regions have been considered by the localand national authorities to be the most productive units of analysis.And finally, thesustainability of the CDS process depends toa great measure on the active involvement ofnational authorities and national associationsof local authorities.

While variation in the challenges, priorities,and potential of each city makes each CDSunique, many of them have produced innova-tive tools and practical approaches whichhave helped spawn city-to-city learningprocesses. Nowhere is this more evident thanin East Asia where, through the activeengagement of national associations of localauthorities, more than 60 cities are engagedin this process, and where the Alliance is supporting city-to-city knowledge sharingwith national and regional networks of localauthorities.This replication process has alsoproduced national guidelines for formulatingCDS, which the Alliance’s global and regionallocal authority partners are helping to assem-ble and disseminate through their networks.

Johannesburg

City-Level ComprehensiveDevelopment Framework andSlum Upgrading

The metropolitan region of Johannesburghas an enormous influence on the economyof South Africa.With its 2.8 million inhabi-tants, it produces almost 16 percent of thecountry’s gross domestic product (GDP)and provides employment for 840,000 peo-ple. Despite its vast economic potential, in1998 Johannesburg found itself bankruptand facing serious institutional and servicedelivery challenges.The five autonomousmunicipal governments that then made upthe Johannesburg metropolitan region tookup the challenge by introducing a radicalreform plan, which combined short-termstabilisation measures with medium- andlong-term strategic planning approaches.

Through these reform plans, known as iGoli2002 and iGoli 2010, the GreaterJohannesburg Metropolitan Council (GJMC)undertook the following measures:

■ A strategic reorganisation of the fiveautonomous Municipal Councils into asingle Metropolitan Council.

■ The formation of ten companies to dealwith key services, including water andsanitation, public transport, road mainte-nance, gas, electricity, property, and thezoo.The gas company and the municipalairport were sold outright.The remain-ing companies are wholly owned utilitiesof GJMC, and each company has a corporatised management relationshipwith the private sector and the council,tailored to suit its specific needs.

■ Creation of a Contracts ManagementUnit, functioning as a virtual PublicUtilities Commission — the first of itskind at the city level in South Africa.

■ Requirement that the key revenue-gen-erating utility companies pay dividendsto the council to support social services,including the council-wide informal settlement programme.

Cities Alliance in Action: City Development Strategies

Cities Alliance 20028Source: South Africa:Monitoring Service Delivery in Johannesburg (draft) World Bank,Southern Africa Department,April 2002.



Service Delivery Monitoring System

To improve decision-making related to service delivery to the urban poor, the City ofJohannesburg has established a service delivery monitoring system as an integral part of itscity development strategy with the support of the World Bank, the Netherlands and theCities Alliance.

The underlying idea was to give political representatives and communities access to infor-mation to increase accountability.The challenge was to pilot a simple and affordable surveyof poorly served areas, and to integrate the generation and use of information with annualbudgetary allocation decisions as well as political processes to give voice to the city’s poorresidents.The monitoring system, based on current information regarding the status ofservice delivery to poor households, allows better targeting of sectoral expenditurestowards poor neighborhoods. By establishing a one-to-one link between sectoral budgetallocations and their impact on poor households, the monitoring system should also helpkeep municipal officials and the citizens of Johannesburg abreast of the city’s progresstowards Joburg 2030’s goal of becoming a world-class city.

Among the criteria for the monitoring mechanism were simplicity, affordability (time andfinancial costs), user friendliness, and fiscal accountability. Using a geographic informationsystem (GIS), poorly served areas where households received less than basic services wereidentified and mapped. Hand-held computers (palms), programmed with consistencychecks to reduce errors, were used to record information.The data was then transferredto a server every other day and transformed into Excel format for immediate use.TheExcel database is available to city officials and other stakeholders in user-friendly formats,and the city is now planning to install the database on its website for public use.

The survey of poorly served areas is an important step towards establishing a system tomonitor the delivery of essential services, particularly to the poor.The effectiveness of themonitoring system rests on several important factors, including: the kinds of informationcollected through surveys; how various stakeholders use the information; how it may con-tribute to building accountability for improving the delivery of essential services to thepoor; and how its results, i.e., changes in the status of service delivery on the ground, mayin the future help to improve the city’s fiscal efficiency with respect to service delivery.

The city of Durban is now implementing the systems pioneered with Cities Alliance sup-port in Johannesburg; these systems are expected to spread through the Cities Learningand Support Network to the other seven large cities in South Africa. Lagos, Nigeria,Africa's largest city with a population of more than 12 million, has also expressed interestin adopting the Johannesburg service delivery monitoring system.

Source: South Africa:Monitoring Service Delivery (draft); World Bank,Southern Africa Department,April 2002.



Doing More and Doing it Right

Executive Mayor Amos Masondo,Excerpts from Mayoral Budget Speech,May 2002

Tiyiselani Manganyi was born in Mofolo Village, Soweto, on 11 November 1996. She is sixyears old and attends a preschool. She will be starting school next year. She stays with her parents in Klipfonteinview (now part of the City of Johannesburg), an area with no schools,no proper sport facilities, no clinic, nor a creche.The area is partially electrified.The majorityof the children attend school in one small hall.

…Tiyiselani was just a year old when the Constitution of the Republic of South Africa crafteda vision for local authorities. Chapter 7 of the Constitution wants to see her live in a sustain-able social and economic environment, in which her basic service needs will be met and herviews will be listened to and respected….This is a promise the Constitution made to her.Thisis a promise we in local government are obligated to realise.

…The Joburg 2030 strategy marks an important paradigm shift in our approach to planning.The strategy is data-driven and forward-looking in approach. Joburg 2030 repositions theCouncil from being perceived simply as an administrative entity and a service utility. Localgovernment should also be seen as an agent for economic growth.

…That brings me to the 2002/03 budget.This budget sets the foundation for TiyiselaniManganyi.When she turns 36 in 2030, she will be an adult in a city with adequate job opportunities, living in a house that has running water, electricity and an environment whereher refuse is being removed regularly. She will live in a street without potholes and will haveaccess to a reliable and efficient public transport system. She will also live in a safer city.Eventually,Tiyiselani will enjoy a quality of life that makes her a proud citizen.

…But a budget on its own cannot get us to our destination. Involvement of the people is acritical ingredient for the city's ultimate success.There are various ways in which this can bedone. One way is to be actively involved in government processes, including budget formula-tion, as has already been demonstrated by the participation of the residents of Johannesburgduring this budget process.


11

The progress made to date has widelyexceeded expectations and enabled the Cityof Johannesburg to move beyond the stabili-sation and restructuring of the city.With areturn to operating surpluses, the city is ableto offer a social package to the poor that provides them with free access to municipalservices.The city’s return to creditworthi-ness that has resulted from the iGolirestructuring has also enabled it to tap hun-dreds of millions of rands in private financingfor urgently needed public investments.

Its new long-term strategy, Joburg 2030,focuses on economic growth, job creation,and poverty alleviation. It is being opera-tionalised through revolving three-yearintegrated development plans and three-yearmedium-term budget frameworks. Despitethe plan’s long-term horizon, the city tookearly measures to integrate Joburg 2030 into

the next budgeting exercise: more than2700 participants discussed the budget in 33sessions over five months; a stakeholdersummit was held, and a tariff objectionsprocess was institutionalised.According tocity officials, the consultation and participa-tion processes in the CDS have helped todevelop better strategies and achieve widersupport.To ensure that the broader spec-trum of community organisations is activelyinvolved in governance issues, the city established ward committees comprisingcivil society representatives.

China

City-Regional DevelopmentStrategies

CDS activities supported by the CitiesAlliance in China have been conceived withinthe framework of China’s national policy topromote the growth of small and mediumsized cities.This national policy is designed tocapture the benefits of the urbanisationprocess to both economic and social develop-ment. City-regional development strategieswhich complement existing planning mechanisms are seen as particularly usefulduring this period of rapid urbanisation.

The initial phase of these activities began inOctober 2000 in the city-region ofChangsha - Zhuzhou - Xiangtan in HunanProvince and Guiyang in Guizhou Province.The focus of these activities was to supportthe development of regional strategies forovercoming the deficiencies of a fragmentedgovernance structure of a large metropolitanarea. One of the outputs was a comprehen-sive, prioritised investment programme tobe financed through a mixture of local,national and international sources.




Subsequently, with co-financing from DFID(UK) and the World Bank, the CitiesAlliance and China have moved into a sec-ond round of CDS, focused on developmentstrategies in the Chengdu, Zhengzhou,Lanzhou, and Erdos/Dongsheng city-regions.These CDS will highlight theregional urban perspective, as these regionsare anchored by one major city, or constitutea corridor, including a few smaller cities andtowns.This work will also benefit from theanalysis of vulnerable groups and the mini-mum living standard scheme in thesecity-regions.With strong urban-rural link-ages, these cities can play a prominent rolein improving the living standards in theirsurroundings by facilitating migration anddeveloping peri-urban areas.

Working closely with the ChineseAssociation of Mayors and Chinese urbanexperts, the key objective of this secondgeneration of CDS is to assist the cities inwestern China to develop region-basedstrategies for economic development; strate-gies will include labour market,infrastructure and service delivery andregional coordination of environment andsocial services activities.With China’s strongpolicy orientation to promote urbanisation,both the Ministry of Finance and the StateDevelopment Planning Commission areclosely following this process. It is anticipat-ed that these CDS will broaden theunderstanding of the role of city-regions indevelopment, while identifying correspon-ding institutional reform and strategic policyissues.An excellent outline of the method-ological steps in “Formulating CityDevelopment Strategies in China” has beenproduced to guide this process and is avail-able on the Cities Alliance website.

Philippines

Scaling up Poverty-FocusedCity Development Strategies

Rapid urbanisation and increasing urbanpoverty pose a special challenge to thePhilippine local government units that haveprincipal responsibility for basic service provision.

Drawing on the experience of seven citieswhich piloted the CDS process in thePhilippines, the League of Cities of thePhilippines (LCP), is implementing a CitiesAlliance grant to take CDS to scale in thePhilippines.With implementation supportprovided by the World Bank and UN-HABI-TAT, an additional 31 cities in the Philippinesare now preparing CDS.

At the heart of the Philippine experience isthe Urban Karte, a comprehensive planningtool for understanding present conditionsand trends, identifying issues and problems,and measuring performance by the local gov-ernment to improve the efficiency of urban

League of Cities criteria for scaling up

▲ City mayors personally lead their CDSexercise;

▲ Cities wishing to undertake a CDSpass a City Council resolution approving funding and other inputs for the CDS;

▲ All stakeholders are involved in thedevelopment of the CDS;

▲ The LCP organises national work-shops, and provides tools andguidance through its website(www.cdsea.org), enabling mayorsand local government units toexchange their practical knowledgeand experience.



policy and management. It consists of aBaseline Profile and four key criteria:livability, competitiveness, governance, andbankability. Each of the criteria is charac-terised and measured by a set of indicatorswhich provides the basis for a transparentand accountable local government.TheUrban Karte is created with the broadinvolvement of the city’s stakeholders,including central government agencies,the private sector, NGOs, CBOs, leaders,academics, and others.

According to the mayors of participatingcities, empowering civil society and institu-tionalising consultative mechanisms throughthe CDS process have clearly contributed to the sustainability of government pro-grammes and projects. Such mechanismshave also allowed poverty issues in theircities to be addressed more effectively. Closeto 40 percent of the priority projects of thefirst seven CDS cities have either alreadybeen realised or are being implemented.Here is what some of these city managershave said:

Together with more than 250 representatives ofthe civil society in Naga,we have crafted a holisticvision for our city.This participative visioningprocess helped crystallize the aspirations of our

people, in the process helping build stakeholder-ship across society.The vision and missionstatements define the city’s agenda, functioning asanchor of all local development efforts.The CDShas brought focus on attainable targets for thecity, considering the city in terms of poverty reduction, local economic development, and good governance.

Mayor Jesse Robredo,Naga City

We didn’t have to reinvent the wheel. Experiencesof other cities in different programmes are goodstarting points in conceptualizing programmesand projects. Involvement of stakeholders througha consensus-building process in planning,implementing,monitoring, and evaluation of programmes and projects is a must for sustainableand successful development of the city.

Mayor Sally Lee,City Government of Sorsogon

The entire process gives us a new perspective onhow to manage the city properly… Throughobservations, surveys, and constant dialogue withthe different sectors we were able to find out newthings about the city.

Gil P. Lentejas, City Planning andDevelopment Coordinator,Calbayog City

Consult the people before making decisions.Validate administrative data with the people concerned.

Mayor Randolph Ting,Tuguegarao City



City-to-City Networking: Knowledge-Sharing among Local Governments

The World Bank’s East Asia urban team, supported by the Cities Alliance through a non-corecontribution from the Government of Japan, has been assisting local government associa-tions in Asia to set up city-to-city knowledge-sharing networks which allow mayors and localgovernment officials to exchange and pool practical information and experiences.

The League of Cities of the Philippines (LCP) has been spearheading this activityamong 40 cities through their own website (www.cdsea.org). The China Association of Mayors (CAM) has been developing its own knowledge-sharing platform(www.townsfuture.com) in both Chinese and English, allowing interested parties bothinside and outside of China to access vital statistics and information about Chinese cities.

Local knowledge sharing is supplemented with cross-country dialogue, via the GlobalDistance Learning Network (GDLN) and face-to-face workshops.To date, three GDLNdialogues have been organised.The latest, “Voices of the Poor: Engaging the Urban Poor inCDS”, connected more than 100 participants from cities and World Bank offices in sixglobal locations, including Washington, Beijing, Hanoi, Jakarta, Ulaanbataar, and Manila.The latest workshop, “Singapore Urban Poverty Learning Workshop”, organised by theWorld Bank and the Government of Singapore, brought together more than 20 mayors andcity officials from China,Vietnam, Philippines, Mongolia, Cambodia, and Indonesia toexchange experiences and ideas on tackling urban poverty.

Key features of this networking include:

▲ Connecting cities to the relevant experience faster;

▲ Engaging experienced CDS cities as resource cities and building strong communities ofpractice among city administrators and local governments, as an alternative to continu-ously relying on external consultants and technical assistance.This allows for thesharing of local knowledge on a peer-to-peer basis with mutual benefits, rather than aone-way communication flow of global lessons and best practices that may not apply tothe specific local context;

▲ Leveraging knowledge through technology, using a platform of low-cost and highly-flex-ible technologies to enable cities from across East Asia to learn from each other andshare experiences: country websites linked to a regional portal; GDLN videoconfer-ences supported by web-based learning tools; and face-to-face workshops;

▲ Creating strong partnerships and ownership in each participating country, currently inChina with the CAM and soon the China Country Development Gateway and in thePhilippines with the LCP;

▲ Facilitating the funding of local projects and investments through online investmentmarketplaces available to local governments, donors, the private sector and consult-ants, on each country website as well as on the regional portal page.



Kigali:

Economic DevelopmentStrategy

In just over a decade, Kigali has grown fromapproximately 235,000 people to an esti-mated 600,000 people today.This growthhas been driven by people in search ofemployment opportunities and a betterquality of life, including access to education,health care, security, and social and culturalamenities.

However, this rapid increase in the city’spopulation has come at a significant cost.Theunrestrained growth has impacted the city’scapacity to deliver adequate basic publicservices including water, energy, and basicsanitation.At the same time, the urban economy has not grown sufficiently to support the rural-urban influx, resulting in asevere unemployment crisis and an increasein urban poverty.

Turning challenges into opportunities, theCity of Kigali, with the support of the CitiesAlliance and USAID, decided to embark on along-term strategic planning approach calledthe Kigali Economic Development Strategy(KEDS).An assessment of the problems andpotential of the City of Kigali was conductedas the first step in the city’s efforts to achievesustained economic growth and reducepoverty. City officials decided on an inclu-sive decision-making process for theplanning of Kigali’s long-term future. KEDShas embraced public participation from allsectors – businesses, individuals, NGOs,representatives of the poor, women’s associa-tions, the central government, andcommunity residents.All of these groupswere involved in drawing up the strategiesand actions that make up the KEDS.

In order to ensure the implementation of thestrategic plan, specific actions were designedand incorporated into the city’s budgetingprocess.These actions called for the commitment of resources from the cityadministration, including the creation of anOffice of Economic Development.This newunit will coordinate policy, advocate longterm investment, and work with the centralgovernment, the private sector, and relevantNGOs to implement strategic initiativesaimed at improving the business climate.

The Kigali Economic Development Strategy (KEDS) marks

a new beginning for local government efforts to sustain

economic growth in Rwanda’s most important urban

region. After surviving many years of economic crisis, Kigali

is now at a point where there is the possibility of a more

promising future. KEDS provides a vision of this economic

future and a plan to lead the way. KEDS provides an

opportunity for public and private sector individuals and

organizations to work together to achieve and sustain a

more prosperous future for all citizens of Kigali.

Mayor Théoneste Mutsindashyaka,City of Kigali,March 2002.



The leadership of the City of Kigali is clearlycommitted to moving forward the imple-mentation of the KEDS in a comprehensiveand coherent manner, understanding that toachieve measurable progress, a multi-facetedapproach and the cooperation of various

partners and stakeholders are required.TheWorld Bank is considering an importanturban development programme whichreflects the investment priorities identifiedby Kigali as well as the needs of some of thecountry’s other municipalities.

Kigali Organises for Economic Growth

In its first year of operation Kigali’s new Office for Economic Development is to becharged with the following responsibilities:

▲ Act as the voice of the economic development community to the City of Kigali and itsbudgetary process on the issues of economic development support and fiscal stability;

▲ Form partnerships with the private sector through local enterprise agencies to assist bothnew and existing enterprises by providing information, business counseling, technical sup-port, entrepreneurship training, and promotional programs;

▲ Oversee the establishment of a Free Port at Kanombe Airport and new Enterprise Zoneselsewhere in the city to stimulate business with countries in the neighbouring regions ofAfrica;

▲ Convene a council involving the private sector to review and make recommendations onreforming both the local government tax structure (with regard to business taxes andfees) and the general regulatory framework for business;

▲ Convene a council involving the private sector to streamline administrative proceduresthat delay the securing of land needed for investment;

▲ Oversee the establishment of a commercial court to reduce risk to the lenders from theincrease of non-performing loans;

▲ Work with the Planning Office to ensure that the Master Plan for Kigali exploits everyopportunity to plan for the needs of a growing urban economy;

▲ Work with the Government of Rwanda to create a more positive international image ofthe country as a stable and profitable place in which to invest.



Aden

City Development Strategyfor Local EconomicDevelopment

Aden is a major port on the Red Sea.Despite Aden’s position as the economic and commercial capital of the Republic ofYemen, local authorities are facing difficul-ties in several key areas: providing qualityand adequate basic services to both citizensand investors; attracting investment toexpand employment and services; and defin-ing effective and sustained urban povertyreduction policies. Rural-urban migrationhas contributed significantly to the rise inurban poverty.Yemen’s urban population isprojected to grow to around 29 percent by2005, with urban growth rates as high as 8percent per year in its largest cities.

Until recently,Yemeni local governmentswere severely limited in addressing the prob-lems their cities faced because of a highlycentralised decision-making process.

However, due to the far-reaching LocalAuthorities Law on decentralisation that wasenacted in February 2000, decision-makingis being transferred from the central level topopularly elected local councils.These councils are charged with supervising theactivities of the newly decentralised lineministries.

The Governorate of Aden intends to trans-form Aden into a fast-growing, productive,and inclusive port city with the help of theAden City Development Strategy.

The CDS process has encouraged localcouncil members to engage their communi-ties so as to make informed decisions. Localcouncil members have taken the lead in conducting assessments in these districts toidentify the priority needs of citizens.Thesenational- and local-level reforms haveopened up new opportunities for under-standing local conditions, addressing urbanpoverty, improving service delivery, andincreasing local participation.



Sofia

City Development Strategy

Municipal reforms have become the corner-stone of a successful transition from asocialist to a market economy and a priorityfor central governments in Eastern Europeand Central Asia.The City of Sofia, whichrepresents 14.5 percent of Bulgaria’s popula-tion and accounts for an estimated 20percent of the country’s GDP, decided totake on the challenge of combating risingpoverty and implementing far-sweepingreforms in order to qualify for EU accession.To achieve these goals, Sofia has adopted along-term City Development Strategy basedon sustainable economic growth, equitable

social development, the reduction of pover-ty, and participatory local governance anddecision-making.

The CDS is also providing input to a WorldBank Adaptable Program Loan that will provide funding for key infrastructureinvestments and capacity-building and willsupport local administrative reforms. Inorder for the CDS plan to demonstratequick results, these investments will initiallyconcentrate on two projects: linking impor-tant commercial districts in Aden andupgrading infrastructure in selected

commercial and industrial estate areas.Thereare plans to extend the World Bank lendingprogramme to other Yemeni port cities, ifthese cities choose to draw upon Aden'sexperience to implement their own CDS.Anumber of additional development agencies,including UNDP, GTZ and FAO, are sup-porting the CDS through their ongoingprogrammes.

Initiating systemic changes at the local level: lessons from Sofia’s experience

▲ Strong city ownership is a prerequisite for successful public consultations;

▲ Extensive consultations for municipal officials on the process and objectives of round tablediscussions with stakeholders is beneficial;

▲ Active citizen participation in strategy formulationand issues related to service delivery and gov-ernance is particularly important.


The city’s “strategy for change” relies heavilyon broad partnerships between theMunicipality of Sofia and representatives oflocal NGOs and trade unions and profes-sionals from Bulgarian institutions such asthe Association of Local Governments,Ministry of Regional Development andPublic Works. Other partners involved arethe European Commission, GTZ, USAID-Local Government Initiative, and UNDP.The partnerships focus on research, policyadvice, public consultation, and capacity-building. Sofia municipality enterprises arealso in the process of securing financing forthe rehabilitation of district heating andtransport services from the World Bank, theEuropean Bank for Reconstruction andDevelopment, the European Commission,and the Japanese government.

The implementation of such a coordinated,strategic planning process marks a radicaldeparture from the socialist, highly cen-tralised style of urban management. In thepast, public input into the urban planningand management process was not solicited,nor was there an opportunity to challengedecisions made at the central level. Formalchannels for communication between themunicipality and local communities had notbeen established.

It is expected that the Municipal Councilwill approve the CDS in September orOctober 2002, thus successfully concludingthe first systematic test of the efficiency andappropriateness of a CDS in a transitioneconomy.

Sofia’s public participation and consultation processes

Drop-in boxes, questionnaires, exhibition. Drop-in boxes were situated in all city dis-tricts and in the Sofia Art Gallery.The gallery hosted an exhibition on the CDS approach andprocess, which highlighted major trends in the development of Sofia’s economy, finance, andspatial development.The exhibition was officially opened by the Mayor of Sofia.The drop-inboxes allowed citizens to comment on the draft CDS and to prioritise the proposed strategicdirections.

Information dissemination. Information packets were disseminat-ed to major stakeholders.The city launched a media campaign toinform and involve the broader community. Both the city and theWorld Bank Resident Office have posted the CDS report on theirwebsites.

Round table discussions.Two round table events were organisedto discuss the issues, opportunities, and strategic directions for thedevelopment of Sofia. Discussions brought together city officials,central government representatives, NGOs, academics, and citizens.

Surveys. Surveys that explored the views of Sofia’s residents and busi-nesses on the quality of municipal public services and the investmentclimate were conducted.


Sofia’s Mayor Stefan Sofiansky takes questions at CDS stakeholder consultations, April 2002.

Citywide SlumUpgrading

The endorsement by all UN MemberStates of the Alliance’s CitiesWithout Slums initiative in the

Millennium Declaration and the adoption of“improved sanitation” and “secure tenure” asthe two indicators to measure progress inachieving this goal have greatly empoweredAlliance partners worldwide who arealready striving to meet this goal.

The commitment to provide secure tenuredirectly responds to a key causal factor ofpoverty, social exclusion and the continuedproliferation of slums all over the world.Theprovision of secure tenure enables the poorto build their assets and income, and is fundamental to distributing the benefits ofeconomic growth.

Alliance partners in this effort includeorganisations of slum dwellers, some of theworld’s major cities, and national authoritieswho are committed to establish the environ-ment necessary to support nationwide slumupgrading.The challenge of scaling up slum

upgrading is not a call for bigger projects. Itrequires regulatory, institutional, and policyreforms, coupled with long-term strategies.Citywide strategies should have clear targetsand involve virtually all of the city’s serviceproviders, and must be coupled with effec-tive land management policies to managefuture growth and to prevent the formationof future slums.


10

20

30%

40%

50%

60%

Africa56%

0Asia &

Oceania37%

LAC26%

Europe4%

NorthernAmerica

1%

PERCENT OF URBAN POPULATION LIVING IN SLUMS

UN-HABITAT estimates that there are a total of 840 million slum dwellers worldwide.

Alexandra, Johannesburg

Estimated from the Secure Tenure Index,UN-HABITAT,2002

Cities Alliance in Action: Citywide Slum Upgrading


Cities Alliance’s Approach to Citywide Upgrading: Key Principles

▲ The urban poor already produce the housing they can afford. Both the poor andtheir housing are an asset, not a liability, for developing cities. The urban poor arealready solving the housing challenge. Our job, as their partners, is to help them doit better, faster, and more permanently, and not to hamper their efforts.

▲ City governments and their partners should facilitate housing production by the poorthrough broad, participatory strategic planning in advance of slum construction (thisis CDS), and the provision of basic services to slum areas after they are built (this iscitywide slum upgrading).

▲ It is essential for national governments to encourage and support the efforts of citygovernments (not substitute for them) to facilitate the production of housing by andfor the urban poor. This approach needs to be implemented consistently acrossministries responsible for budget and finance, planning, local government, publicworks, and environment … as well as ministries directly responsible for housing.

David PainterDirector,Office of Urban Programs,USAIDAs presented at Casablanca,Morocco, June 2002 at INTA’s “Habitat for the Poor: Policy for Reducing Urban Poverty” seminar.

Security of tenure is a fundamental

requirement for the progressive

integration of the urban poor in the city….

It guarantees legal protection from forced

eviction… and is one of the most

important catalysts in stabilising

communities, improving shelter con-

ditions, reducing social exclusion and

improving access to basic urban

services.

UN-HABITAT:Global Campaign for Secure Tenure,Concept Paper (1999).



Mexico

Scaling Up Upgrading andManaging Informal UrbanGrowth in the MetropolitanMexico City Area

The Government of Mexico has made theprovision of low-income housing a major pri-ority in its five-year development plan,targeting the creation of 750,000 units by2006.An estimated 4.6 million Mexicanfamilies are considered under-housed, and anadditional 3.5 million households live in poorquality stock requiring remedial action, fromrepair to replacement.Approximately 1.1million housing units are needed to alleviatethe extreme overcrowding in existing stock.

Added to this existing backlog, the forma-tion of new households creates demand foran additional 750,000 units annually.Thedefining feature of these new households istheir poverty: more than half earn less thanthree minimum wages (equivalent to US$13per day, at January 2002 exchange rate), andare unable to access the mortgage market tofinance the purchase of a finished house.

New house supply in the formal market isalmost entirely new developer-built units forthe middle class.

This new housing initiative of the govern-ment will require an estimated 21,000hectares of land annually.The significance ofthis figure is highlighted by the Ministry ofSocial Development’s (SEDESOL) estimatethat only 32,000 hectares of land are cur-rently available – enough for some eighteenmonths of construction. Of the land avail-able for urban use, only 9 percent has basicservices.To complicate matters further, asignificant proportion of the land is held byproperty developers interested in middle- tohigh-income development.

Informal housing on the urban periphery in the State of Mexico.

The State of Mexico identifies its poorer urban municipalities whose ‘Basic Needs’are not met in terms of urban infrastructure, social services, municipal services and income.Source:Centro de la Vivienda y Estudios Urbanos A.C.



Mexico’s urban land market has three majorobstacles: First, cumbersome proceduresresult in long lead times. Second, there iswidespread jurisdictional overlap over urbanland, leading to legal uncertainty.Third, thestandards regime is inflexible and largelyinappropriate to the needs of the poor.Theseobstacles severely limit the supply of urbanland accessible to the poor.

Cities Alliance assistance to the State ofMexico is expected to have a direct bearingon policy options in the metropolitan areasof Mexico City and Toluca, with a combinedconcentration of some 10 million living inpoverty. Like so many other cities in thedeveloping world, the lack of basic informa-tion and accurate statistics hampers thepolicy process.

A major component of this assistance,managed through the World Bank andMetropolis, has focused on the related issuesof land markets, urban infrastructure, andmicro-finance, with an emphasis on the relationship between informal land deliverysystems and statutory authority.The aim isto move to a citywide strategy. In the wordsof the local manager of the project:

The most important lesson so far is related to theimportance of defining an integrated set of policiesthat tackles the problems associated with the poor.Traditionally the State of Mexico has alleviatedthe effects of poverty with isolated programs atstate or regional levels. From this (Cities Alliance)assistance we have clearly seen the importance ofdefining actions that coordinate the state effortswith other stakeholders. It will not solve poverty,but will start new paradigms.

\

‘

Logging on: the original Web Concept created by slum dwellers in their efforts toaccess electric energy. State of Mexico.



São Paulo

Bairro Legal Programme

The metropolitan region of São Paulo comprises 41 municipalities with a total pop-ulation of some 16.6 million, of which 60percent live in the city of São Paulo itself.Themetro region accounts for more than 18 per-cent of Brazil’s GDP and 15 percent of itsindustrial output.

Between 1973 and 1999, favela residentsincreased from 72,000 to 1.9 million, or from1 percent of the city’s total population to 13.3percent.Another 38 percent lived in loteamen-tos clandestinos – almost 3,000 informalsubdivisions lacking infrastructure that housethe poor, alongside São Paulo’s 612 main fave-las, or slums. In all, over half of the populationof the world’s fourth-largest city now live ininformal settlements and slums. Paradoxically,in this same city, there are 420,000 emptyhomes, 27 percent of which are in the centralregion with ready access to infrastructure anda wide range of urban services.

The City of São Paulo has selected the tenmost deprived neighbourhoods for an inte-grated, area-based approach to citywide slumupgrading.The Bairro Legal Programme,launched at the end of 2001, will commencewith interventions in four areas of the city totarget close to 790,000 people: Paraisópolis(42,900), Jardim Angela (260,203),Brasilandia (246,932), and Cidade Tiradentes(239,938).

The city intends to draw on the lessons ofprevious urban upgrading interventions,including the large-scale Guarapiranga programme, as well as the unsuccessful “verticalisation” experience that focused onthe resettlement of slum dwellers to newhigh-rise apartments built in the area of the

original favela.The current city managementhas a clear idea as to why the impact and sus-tainability of previous interventions werelimited.As observed in its proposal to theCities Alliance:

Most of the housing and urban development inter-ventions undertaken by the municipality of SãoPaulo in recent years focused on restricted areas andhad a limited,project-based character that madethem unable to have citywide impacts.The imple-mentation of such projects brought about partialimprovements.They did enhance the quality of urbanspace in these regions and improve the living envi-ronment and daily life of the poor, but not at a scalecommensurate with the need.Too many peopleremained marginalized,without access to qualitysocial services and urban equipment and,above all,without access to the legal, formal city.

The real challenge is to face up to the precariousnessof the tenure and ownership of shelter on the part ofthose who are physically and socially excluded. Inorder to do this,what is really necessary is a para-digm shift: a project-based approach that is basedon the production of new housing. Production andthe extension of urban infrastructure networks, con-ceived and implemented in a sector-based way by thevarious line departments of a municipal administra-tion,must be replaced by a programmatic, integratedapproach.

The Bairro Legal Programme is beingdesigned by the Housing and UrbanDevelopment Secretariat of the City of SãoPaulo, and Cities Alliance support for thisprogramme includes the World Federation ofUnited Cities (UTO), the World Bank, andthe Governments of France and Italy.TheAlliance is contributing US$300,000, match-ing the city’s own contribution to programmedesign. For the long-term development of theprogramme, the City of São Paulo has budget-ed US$189 million.



“In the future, São Paulowithout slums”São Paulo City Secretary for Housing andUrban Development, Paulo Teixeira, talks to“Jornal da Tarde” (June 10, 2002) about theBairro Legal Programme.

Jornal da Tarde: Mr.Teixeira,will the slumsreally disappear?

Teixeira: Our plan has as its main goal makinga neighborhood out of a slum through urbanisa-tion: laying out streets, paving them and equippingthem with curbs and water drains, installinglights, basic sanitation and public equipment, aswell as regularising land ownership. For the firststage,14 areas were selected.Another aspect of theproject is working on violence.There is a superposi-tion between unacceptable housing conditions andviolence....

Jornal da Tarde: Laying out squares andstreets will require the eviction of some dwellings.How will that be done?

Teixeira: Since many of those neighbourhoodshave no formal ownership registration, any familyevicted will have the right to a similar dwelling inthe same region, to be provided by the Housingand Urban Development Secretariat.After com-pensation and the cost of a new dwelling arecomputed, any remaining balance will be financedfor the families.This financing system will alsoapply to families who will have their housesupgraded.

Jornal da Tarde:Will the Department organise financing on its own?

Teixeira: The resources are being allocatedunder the city budget.The money will come fromforeign, federal, state, and municipal sources.Wewill also be carrying out a decoding of the IBGE(the Brazilian Statistics Institute) census so as to,on the one hand, quantify slum dwellers, and, onthe other hand, create a plan that would provideus with a timeframe and a cost range to achieve acity without slums.

Paulo Teixeira, São Paulo City Secretary for Housing and UrbanDevelopment



Jornal da Tarde: Who will negotiate with theslum people? Will there be any form of registra-tion?

Teixeira:The Secretariat has already begun toregister families and to settle plots for the existingdwellings, through surveying and photographs.Thatwould also,as a matter of fact, serve as a barrieragainst any outsiders taking advantage of the plan.This stage, the diagnosis, is already complete.Thesecond one, involving the design work itself, is start-ing this June.The designer will present his/herstudy,proposing a set of different solutions,andthen we will consult with the people,who willchoose which plan is to be implemented.

Jornal da Tarde: Mr.Secretary, how long willit take until a slum such as Jaguaré is turned intoa neighborhood?

Teixeira: That is not the point.The main prob-lem is resource-related.With money, there are noproblems in the work front.The main thing is giving priority to the slum upgrading programme.And Mayor Marta Suplicy is doing that.This provides a key thing, the involvement of forces thatcan channel resources.To that end,we must see

what the city’s Master Plan defines.A share of themoney raised through the sale of building poten-tial will be allocated to an urbanisation fund, andpart of this money will be given to slum upgrad-ing.As soon as we find resources,we will create abuilding timeframe.

Jornal da Tarde: Will there be any citywidepolicy to fight the creation of new slums?

Teixeira: It is already being implemented byregional administrators who block any new settle-ment or clandestine occupation in their areas. It isa combined action, because, at one stroke, the exist-ing problem is being fought and the formation ofnew irregular settlements is avoided.The privatesector is also invited to fight for its own rights.What does that mean? Plenty of slums and clan-destine settlements arise in private areas neglectedby their owners.We will invite landowners in urbanexpansion areas to...reach an agreement with usand create new regular settlements through landparceling.

São Paulo, Brazil



Nouakchott, Mauritania

Mauritania

Slum Upgrading and PovertyAlleviation

An estimated 61 percent of Mauritania’spopulation of 2.6 million live in urban areas,a dramatic increase from just four decadesago, when less than 4 percent of the popula-tion was urban.The population of the twolargest cities, Nouakchott and Nouadhibou,has grown fivefold in 20 years, far outpacingthe capacity of both state and municipal gov-ernments to extend necessary urbaninfrastructure and services and to generateemployment. Poverty has accompanied thisrapid urbanisation.An estimated 35 percentof the urban population lives a hand-to-mouth existence.The urban poor reside insubstandard squatter settlements, lackingbasic infrastructure and services. InNouakchott, close to 40 percent of the pop-ulation lives in slums.

The Government of Mauritania is stronglycommitted to reducing urban poverty, sig-naled not least by the prominence of urbandevelopment in its national PovertyReduction Strategy Paper (PRSP): a strategywhose implementation contributed signifi-cantly to the country’s recent eligibility for

100

200

300

400

500

600

19570

1959 1970 1977 1988

700

2000

(’000

)

2 440

134

393

600

Explosive urban growth in Nouakchott, Mauritania

Source: Commissariat aux Droits de l’Homme à la Luttecontre la Pauvreté et à l’Insertion, July 2002.



debt service relief under the enhancedHeavily Indebted Poor Countries (HIPC)initiative.

Improving the living conditions of the urbanpoor and reducing the proliferation of slumsare central to the government’s strategy toalleviate urban poverty. In recent years central and local governments have demon-strated strong commitment to findingadequate solutions and mobilising resources

to address these issues.A specialised povertyinstitution, the Commissariat aux Droits del'Homme,à la Lutte contre la Pauvreté et àl'Insertion (CDHLCPI), was created and hasalready initiated participatory pilot opera-tions for slum upgrading in Nouakchott.This includes a micro-credit programme forhousing and income-generating activities,known as the Twize (or solidarity) pro-gramme, which CDHLCPI has beenimplementing with support from local and

Mauritania set targets for improve-ments in the lives of its urban poor

Progress expected through a ten-yearurban development programme will bemeasured by, among others things,increased access to basic services,increased access to credit for and improve-ments in shelter and sanitary facilities,increased involvement of CBOs in decision-making and service delivery, andsimplified and accelerated procedures fortenure regularisation. Specific targetsinclude:

▲ Dramatic improvements in the livesof at least 163,240 slum dwellers by2005, a total of 281,590 slumdwellers by 2010, and 220,000 otherurban inhabitants;

▲ Increased access to credit forimproved shelter and facilities toresult in 7,500 houses by 2005 and15,000 by 2010;

▲ Employment generated or conditionsof work improved for 40,000 workers;

▲ Affordable serviced land and/or shelter for 100,000 inhabitants toprevent development of new slums.

Slum areas of Nouakchott and where priority investments have been planned.Source:Mauritania - Urban Development Program,Project Appraisal Document,26 September 2001,World Bank.



international NGOs.The government plansto extend this programme to all poor areas.

The government’s national urban strategy,built on priorities identified through partici-patory processes, has resulted in a ten-yearurban development programme to supportMauritania’s central and local governments inimproving living conditions and generatingemployment in the country’s main towns,especially in slums.The US$99 million pro-gramme, funded by the government, theWorld Bank, the African Development Bank,AfD and KfW, also aims to strengthen theinstitutional framework and capacity forurban and land management.

Basic urban structure plans and investmentprogrammes have been completed for 13cities, including Nouakchott andNouhadibou, through a participatoryprocess.These plans are expected to assistmunicipalities in identifying investment pri-

orities and city growth.The govern-ment will clarify the responsibilities forall aspects of urban developmentamong the central government, localgovernments, communities, and theprivate sector. Municipalities, particu-larly Nouakchott and Nouadhibou, andCBOs are expected to have a moreactive role in infrastructure planningand delivery. Increased governmenttransfers to municipalities willstrengthen their management andinvestment capacities and allow themto earmark funds to promote commu-nity and private sector involvement.Pilot CDS elaborated for Nouakchott,Nouadhibou, and Kaedi have been verysuccessful and will be extended toother cities and the regional capitals.

Vietnam

Slum Upgrading in Four Citiesin Vietnam

Poverty in Vietnam has traditionally beenconsidered as largely a rural phenomenon:the urban population in 2000 was estimatedat 18 million, accounting for 23.5 percent ofthe total population. However, this figure isexpected to increase to 46 million by 2020,largely as a result of the current rural-urbanmigration rate of some 3-4 percent perannum.

Rapid economic and urban growth hasresulted in significant disparities, particularlyuneven development of urban infrastructureand services which, in turn, has led to verypoor housing and infrastructure provisionfor the urban poor.

A slum in Nouakchott’s Arafat district.



The poor tend to settle in marginal urbanareas, isolated from economic activities andwith little infrastructure. On the urbanperiphery, makeshift private accommodationhas been built without planning permission.Dwellings are often only one room, in verypoor condition, and referred to colloquiallyas “rats’ nests”. In Ho Chi Minh City and CanTho many poor have settled in the city centre, often alongside the city’s canals, andhave been targeted for clearance by the cityauthorities.

Many low-income neighbourhoods are char-acterised by such housing, compounded bypoor drainage and regular flooding. Sanitationis a major concern, as many of the public toilets are dilapidated and unusable. Manyinhabitants have no access to toilets and dispose of human waste into plastic bags ordirectly into rivers and canals.

Until the 1990s, housing was provided by thestate to state employees.There was littleemphasis on comprehensive urban planning,resulting in inadequate public utilities andsanitation in many cities. In 1991, theHousing Ordinance recognised private own-ership of housing, which led to a housingboom. However, housing development hasbeen dominated by production for the higherend of the market, leaving the poor to fendfor themselves.The poor thus either continueto occupy dilapidated state housing, or rent,or squat on unoccupied land and build what-ever form of shelter they can afford. Much ofthis housing is outside the planning andbuilding control system and is usually notadequately serviced.

In 1998, the government produced a draftNational Housing Strategy through 2010,which attempted to place housing within acoherent urban planning framework.Although the strategy is still in draft form, ithas nevertheless prompted larger cities likeHo Chi Minh City and Haiphong to moveahead and develop their own housing programmes.

The Cities Alliance is supporting work beingundertaken by the Ministry of Construction,with the World Bank, UN-HABITAT, UNDP,and a number of other Alliance partnersworking through the Urban Forum.Theobjective is to establish a national urbanupgrading programme.

Haiphong slums



The Alliance is funding studies whichinclude an assessment of constraints faced bythe urban poor in housing and infrastruc-ture; a review of recent and ongoing urbanupgrading programmes in Vietnam andcomparison with international best prac-tices; the development of a national policystatement on the provision of shelter andaccess to basic infrastructure services for theurban poor; and the development of adetailed action plan for a selected city (CanTho) based on the draft policy statement.

These studies are also being used by theGovernment in the preparation of a nationalupgrading programme, the first componentof which will be supported by a proposedWorld Bank urban upgrading project cover-ing the following four cities:

■ Haiphong, a major port centre;

■ Nam Dinh, one of the main urban cen-tres in the high-density, low-incomeRed River Delta;

■ Ho Chi Minh City, the largest city in the country, experiencing significantimmigration; and

■ Can Tho, the centre of trade for theMekong Delta, experiencing stronggrowth in the manufacturing andtourism sectors.

Can Tho


Railroad track through Manila is lined with shacks housing tens of thousands of squatters. Metro Manila, Philippines, 1999.

Metro Manila

Going to Scale in Metro Manila

The failure to cope with rapid growth inMetro Manila, a megacity of more than 12million people, has given rise to a host ofproblems on a mega-scale: polluted rivers,smog-choked air, and a proliferation ofslums. Some 35 percent of the city’s popula-tion, or 4 million people, are living inpoverty and informal slum settlements,many of which serve as gateways to a con-tinuous influx of poor rural migrants.Thedemand for services has simply over-whelmed the capacity of Metro Manila’s 17local governments.

The Asian Development Bank (ADB) ispiloting new approaches for on-site urbanupgrading and off-site relocation of informal

settlers under the Japan Fund for PovertyReduction (JFPR).Two innovative US$1million grant-financed initiatives are under-way: the first is in Payatas, Quezon City, siteof the tragic garbage slide in 1999, where525 families are undertaking a community-led urban upgrading programme assisted bythe Vincentian Missionaries for SocialDevelopment.The second initiative is inMuntinlupa, along the heavily invadedPhilippine National Railroad right-of-way,where 565 families are working with theMuntinlupa Development Foundation tovoluntarily relocate to a safer, off-site loca-tion. Both efforts involve sustainablerevolving funds, and will be replicated insurrounding communities over time.A thirdJFPR project aims to develop strategic pri-vate sector partnerships for urban povertyreduction in Metro Manila with PhilippineBusiness for Social Progress. Once



34

approved, the programme will leverageUS$8 million in assistance from JFPR andleading Philippine corporations for slumcommunities throughout the city, to includetraining, capacity-building, and the provisionof revolving funds for financing homeimprovements, urban services, and microenterprise development.

These activities are providing important les-sons in the design of a Metro Manila UrbanServices for the Poor Project (MMUSP),which includes the formulation of a 15-yearmetro-wide urban upgrading strategy inkeeping with the Cities Alliance CitiesWithout Slums action plan.ADB is assessingthe feasibility of a proposed US$50 millionloan in early 2003 for this project, part of alarger US$200 million urban upgrading pro-gramme. Under the proposed loan,ADBintends to invest in three integrated urbandevelopment subprojects on large tracts ofvacant national government land, with thecatalytic aim of triggering further invest-ments. Consideration is also being given tofurther scale up these activities by localauthorities, NGOs, the private sector, andthe communities themselves on a broad,metro-wide scale under the umbrella of theCities Alliance.

The Manila Services for the Poor Project (MMUSP) involves the formulation of a 15-year metro-wide urban upgrading strategy inkeeping with the Cities Without Slums action plan.



35

Financial Services for the Urban Poor

From shacks on stilts in polluted watersin Brazil to tin-roofed mud shacks inslums in India, the poor are construct-

ing their homes, one wall at a time. Facedwith insecurity of tenure, the poor buildtentatively and progressively.And even withtenure security, they build incrementally tomatch their uneven income streams.Yet,despite the fact that in so many developingcities around the world a majority of thepopulation lives in slums – 60 percent ofNairobi’s population, 82 percent of Lima’spopulation – and that most housing is builtinformally and progressively, the poor lackaccess to financial institutions and to finan-cial products tailored to the way they build.

In response to this problem, the CitiesAlliance launched the Shelter Finance forthe Poor Initiative to focus on an emergingand still very nascent practice of financialinstitutions providing housing loans to poorclients on commercially viable terms.Theseloans are distinct from mortgages in thatthey are typically not for the purchase orconstruction of new units, but rather forhome improvement and progressive build-ing.They are being offered as a new productline by a generation of financial institutionsthat built their success on providing workingcapital loans to the urban poor, and are nowlooking to expand and diversify their prod-ucts to meet the needs and demands of theirpoor clientele.

The Cities Alliance launched this researchinitiative as a lateral learning partnershipwith five networks of finance and housinginstitutions:Accion International,Cooperative Housing Foundation, FrontierFinance, Plan International, and MEDA; andwith six development agency partners: Inter-American Development Bank, USAID,TheWorld Bank, the International FinanceCorporation (IFC), the Urban ManagementProgramme (UMP), and the ConsultativeGroup to Assist the Poorest (CGAP).Thethree institutions analysed under this initia-tive include two banks – SEWA Bank ofIndia and Mibanco of Peru – and FUNHAVI,an NGO in Mexico. Policy and regulatoryconstraints for housing finance for the poorin Kenya, and a government-supported sec-ond-tier finance facility in Ecuador were alsoanalysed.The intent is that these findings,which will be disseminated widely, willadvance best practices, inspire replicationand adaptation, and increase the availabilityand affordability of shelter finance for theworld’s poorest households. For donor agen-cies looking to increase the access of thepoor to credit and to support financial insti-tutions in their efforts to reach out to thismarket, this initiative will have distilled a setof practices and recommendations.TheShelter Finance for the Poor initiative isfunded by Cities Alliance, CGAP, IFC, andUSAID.


Cities Alliance in Action: Financial Services for the Urban Poor

36

Initial operational impacts

The Alliance’s Shelter Finance Initiative hasfacilitated an informal network among prac-titioners and development agencies which isalready having operational impacts:

■ Accion International is introducing orexpanding housing products in an addi-tional five institutions to increase thenumber of affiliated institutions involvedin housing loans from 6 to 11, and toeventually introduce the product linethroughout the 21 Latin American andAfrican partner institutions in its net-work.

■ Housing micro-finance loans are beingdesigned drawing directly on these find-ings in World Bank operations inIndonesia and the Philippines.

■ The Alliance and the IFC are exploringthe potential of a shelter finance facilityextending medium-term local capitalloans to financial institutions engaged inhousing finance for the poor.

■ Sweden’s SIDA is reviewing its housingportfolio and is developing guiding prin-ciples and policies for its housingmicro-finance operations.

Community-Led InfrastructureFinance Facility

The Community-Led Infrastructure FinanceFacility (CLIFF) is a new finance facilitydesigned to increase the access of poor com-munities to medium-term sources of capitalfrom the private and public sectors; the capi-tal is used for urban shelter and associatedinfrastructure, such as access to water, ener-gy, and sanitation facilities. CLIFF aims to

support the scaling up of community-drivenslum development, rehabilitation, and infra-structure initiatives, in partnership withlocal authorities and the private sector inpoor towns and cities.

Shelter Finance for the Poor: Lessons from Experience

Experiences and case studies analysed have already produced a number of lessons and raised critical questions for furtherexploration.

Findings to date:

▲ Shelter finance loans tend to be larger and have longerterms than microenterprise loans;

▲ MFIs do not rely on land title as a guarantee for progressive housing loans;

▲ Loans area largely made to individuals;

▲ Shelter finance loans carry lower interest rates than traditional microenterprise loans.

Outstanding issues for further analysis:

▲ The institutional and macroeconomic factors that enableMFIs to successfully introduce shelter finance;

▲ The level of construction assistance, if any, that should beprovided by the MFI and how it should be priced;

▲ Locating sources of medium-term capital;

▲ Forms of tenure that can be used to increase access toshelter finance;

▲ Public-private partnerships for shelter finance delivery.



37

Traditional Housing Finance Paradigm

■ Finance must be for a complete housingsolution

■ Loans large enough for a complete housing solution (> $5,000) must belong-term and subsidized to be affordablefor low-income households

■ The interest rate is the key factor inhouseholds’ decision to borrow

■ Low-income “housing” finance follows aparadigm similar to the mortgage financeindustry in North America

■ Design, planning, and construction mustbe done by outside, technical experts toreduce the cost of the project and ensurethe quality of construction

■ Investment in housing is “non-productive”

Emerging Experience

■ Low-income households are accustomedto a “progressive building” process

■ “Progressive build” loans with marketrates of interest can more easily be cus-tomized to households’ capacity to repay

■ Financing “stages” of a project with multiple, shorter-term loans rather thanone larger, longer-term loan reducesinterest paid by the household and riskfor the lender

■ Access to capital for housing investment,simplicity, flexibility, and speed of disbur-sal are the primary factors in households’decision to borrow. Interest rates areimportant, but secondary

■ Low-income “housing” finance follows aparadigm similar to the micro-financeindustry in many countries

■ Households can manage portions of thetechnical process on their own and stillachieve an acceptable level of quality

■ Households have a strong preference tomake their own design decisions

■ Role for external technical expertise like-ly varies depending on the project andthe household. Role is as a consultant

■ Primary role for outside expertise is inthe design and costing phase

■ In many, though not all, cases housinginvestments directly generate additionalincome (e.g., rentals, additional space forhome-based microenterprise)

EMERGING EXPERIENCE CHALLENGES TRADITIONAL HOUSING FINANCE PARADIGMS

Source:Shelter Finance for the Poor Series:Micasa:Financing the Progressive Construction of Low-Income Families’Homes at Mibanco.



38

The CLIFF will:

■ provide bridging loans, guarantees, andtechnical assistance, both local and inter-national, to initiate medium-scale urbanrehabilitation in cities in the developingworld;

■ work in partnership with CBOs andNGOs who have a track record in delivery of urban rehabilitation;

■ seek to attract commercial, local, andpublic sector finance for furtherschemes, thus accelerating or scaling upthe response to the challenge of urbanrenewal.

An initial financing contribution of US$10million equivalent has been pledged byDFID, to be contributed over three years, ofwhich approximately US$7.4 million equiv-alent will be for capital for a revolving loanfacility.The balance will be for technicalassistance, operating, and management costs.SIDA is considering becoming a co-financier,and USAID has expressed interest (for2003) in making local currency guaranteefunds available through its country pro-

grammes.The World Bank will participatewith DFID and other donors in the facility’sgovernance.

CLIFF will initially be introduced in India,where there is considerable relevant experience.

Activities for CLIFF will be implemented byHomeless International (HI), a UK-basedNGO, and its Indian partners, Society for thePromotion of Area Resource Centres(SPARC) and the National Slum DwellersFederation (NSDF). HI will make available

Micasa clients improve and expand their homes progressively.



39

Mibanco, Micasa

With almost 70,000 active borrow-ers, Mibanco in Peru is one of thelargest MFIs in Latin America. Inmid-2000, Mibanco expanded itsproduct offering to include Micasa,a “progressive build” housing loanproduct – that is, the loans aredesigned to help households financeprojects to improve, expand, subdi-vide, rebuild, or replace elements oftheir homes, rather than purchaseor build a new home.

The Micasa loan programme is verysimilar to Mibanco’s successfulmicroenterprise lending methodol-ogy, but with four important

distinctions: Micasa loans carry alower interest rate, allow for longerterms (up to 36 months), tend tobe slightly larger in size thanMibanco’s typical microenterpriseloans, and are available not just tomicroentrepreneurs, but also tolow-income, salaried employees,who are poorer than the microen-trepreneur clients. Micasa loansaverage US$916 over 11 months.Borrowers are not required to havelegal title in order to obtain a loanand the guarantees used are gener-ally not mortgages, but moretraditional microenterprise guaran-tees such as co-signers or householdassets. Loan turnaround time aver-ages three days for new clients and

one day for repeat borrowers.

For Mibanco, the addition of theMicasa product has been very posi-tive.After 12 months of operations,Mibanco has almost 3,000 Micasaclients and portfolio at risk greaterthan 30 days on the Micasa portfolioof 0.6 percent. Preliminary estimatessuggest that Micasa broke even on afree-cash-flow basis, including theinitial systems investment, withinnine months and, if it continues atcurrent levels, will generate a returnon loan portfolio of between 7 and 9percent, significantly higher thanMibanco’s overall return on loanportfolio of 3.4 percent.

SEWA Bank and theParivartan scheme

India’s SEWA Bank was registeredas a cooperative bank in May 1974.The bank’s initial capital came fromthe contributions of approximately4,000 members of the SelfEmployed Women’s Association(SEWA), a Gujarat-based registeredtrade union of poor women estab-lished in 1972.As of January 31,2002, SEWA Bank’s total outstand-ing portfolio was US$2,274,866, ofwhich US$913,086 (40 percent)was housing loans.The number ofactive loans stood at 9,129, ofwhich 3,677 (40 percent) werehousing loans. SEWA Bank is theonly micro-finance provider of scalein Gujarat, and one of two institu-tions offering housing finance toeconomically active poor people inGujarat.The bank offers savings anda wide range of loan products

designed to meet the financingneeds of its clientele. Secured loansare backed by assets, such as jew-ellery or a lien on the client’s fixeddeposits held at SEWA Bank.Unsecured loans are backed by alien on the client’s demand depositswith the bank and guarantors.SEWA Bank estimates that 50 percent of its portfolio is used forhousing. SEWA is a profitable bank,and has been profitable over thepast five years, with the exceptionof 2001, when the ratio dippedslightly below 100 percent; howev-er, the ratio is on track to be above100 percent again in 2002.

SEWA Bank is a key partner inimplementing the Parivartanscheme, a slum upgrading pro-gramme. Parivartan is an alliance ofSEWA Bank, the AhmedabadMunicipal Corporation (AMC), theMahila Housing Trust, and other

local NGOs, and deserves particu-lar mention for its innovation andits potential contribution to strate-gies for slum upgrading worldwide.Through the Parivartan scheme,which provides for the installationof roads, electricity, and water,AMC provides US$170 per partici-pating household for slumupgrading. Participating householdsmust provide a counterpart contri-bution of US$43; they can eitherborrow this amount from SEWA oruse SEWA Bank’s facilities to savethe required amount. SEWA Bankhas used the Parivartan programmeto expand its client base beyondexisting SEWA Union members andsees it as an important source offuture growth. Based on its per-formance, the Parivartan model isbeing scaled up throughoutAhmedabad, in a linked effort funded by the Cities Alliance.



40

US$2 million in loan guarantees through itsexisting community guarantee operation.SPARC, with the assistance of HI, will workwith community-based slum dwellers organi-sations to prepare packages for bridge loansand loan guarantees, to be presented to tech-nical review and investment boards. Projectsin India will primarily be for sanitation (e.g.,toilet buildings) and housing (slum communi-ty resettlement).

Illustrative CLIFF Activity

The Municipality awards contracts to com-munity organisations or individualcontractors selected by community organis-ers to implement sanitation projects in theirsettlements.Typically the facilities comprise20 toilets, special facilities for children, acommunity hall that can be rented out, andaccommodation for a resident caretaker.Each facility services 1000 people.TheMunicipality provides the cost of land andconstruction, and the community pays to

use and maintain the facility. However,contractors are expected to provide a 10percent bond and to prove that they cancover 10 to 25 percent of the start-up costs.This has proven to be a real constraint oncommunity-based contractors who do nothave access to this capital.They do get reimbursed at later stages.

In this case, CLIFF would provide a guaran-tee to the Municipality which can substitutefor the performance bond and may be suffi-cient to release start-up capital, or cover theperformance bond through a guarantee, andprovide a bridge loan to the communitycontractors for the start-up costs, to berepaid when municipal funds get released.Such an approach has already been negotiat-ed in Mumbai with UTI Bank, where aguarantee was provided to the Municipalityfor the performance bonds and start-upcosts for the construction of 220 sanitationfacilities in Mumbai by slum dwellers.

The CLIFF model

▲ A local facility (CLIFF) providespump-priming loans to a local NGOor CBO undertaking an infrastruc-ture project;

▲ A commercial bank will loan fundsto the NGO/CBO, backed by aguarantee from HomelessInternational;

▲ The pump-priming loan is repaid inlocal currency to CLIFF, and thebank loan is repaid at the end ofthe community project (whenmunicipal funds for the project arereleased), allowing the guaranteeto be extended to new communityprojects requiring the same financ-ing vehicles.



Learning and Knowledge Sharing

While learning and knowledgesharing take place within theframework of all Alliance

activities, the Cities Alliance also supports a number of global and regional learningactivities. During FY02 these included:

■ Sustainable Partnerships for CityDevelopment – Kolkata PublicPolicy Forum

Kolkata, December 2001

The 2001 Public Policy Forum focusedon strategies and partnerships for pro-poor city development.The forum washosted by the Government of WestBengal, and organised by the AsianCoalition for Housing Rights (ACHR)and Slum/Shack Dwellers International,with the support of DFID and in collab-oration with slum communities andNGOs of Kolkata and the Governmentof West Bengal.The forum broughttogether national and internationalexperts, business leaders, governmentalauthorities, development agencies,NGOs, community organisations, slumdwellers, and members of civil societyfrom 11 cities around India as well as 30other countries.Among the key mes-sages emerging from the forum werethe need to forge partnerships betweengovernment and civil society, to tackleurban poverty on a citywide basis, andto include the poor in planning process-es for sustainable city development.TheNational Slum Dwellers Federation and

Public Policy Forum participants hear from Kolkata slum dwellers.

Public Policy Forum, Kolkata, India.

Cities Alliance in Action: Learning and Knowledge Sharing


ACHR led a session on constructiveresponses to eviction, which under-scored the message running throughoutthe forum, namely, the significance ofsecure tenure.The four-day event alsofeatured site visits throughout Kolkataand a model housing exhibition.

■ Cities Without Slums session atthe World Urban Forum

Nairobi, April-May 2002

The Cities Alliance and UN-HABITATjointly organised a session on CitiesWithout Slums at the inaugural WorldUrban Forum held this spring inNairobi. Chaired by SomsookBoonyabancha and Jean Pierre ElongMbassi, members of the Cities Alliance’sPolicy Advisory Board, the event includ-ed a presentation by the World Bank,based upon the results of a studyfinanced by the Government of Norway,on the lessons learned in urban upgrad-ing activities in ten African countries.The session also included a presentationby São Paulo’s Housing Secretarydescribing his administration’s strategiesfor citywide slum upgrading and by theHomeless People’s Federation ofNamibia on actions taken by poor com-munities themselves.The Alliance alsosupported the most lively event of theWorld Urban Forum, a discussion onstrategies to replace evictions withnegotiated resolutions and voluntaryresettlement.

I am here on behalf of the slum dwellers of SDI and also

on behalf of all the slum dwellers of the world to stand and

say – we are here to begin with a new partnership...Today

we are standing here after completing of more than

50,000 houses right from South Africa, Zimbabwe,

Namibia, India, Cambodia, Thailand, etc. Beyond our own

strength we are building. We have already saved; our

women have saved more than US$50 million worth

savings in our own slum settlements....So we have come

here as a group to say - we have strategies developed.

We know how to deal with the cities. We have dealt with

the city authorities. We have developed our own

infrastructure for liasoning. We know what kind of

improvement we need in the slums. Is there anybody in

the world who can think about City Without Slums without

the participation of the slum dweller? No, No, it is NOT

possible. That is what you have seen in past years. We

want all slum dwellers to participate in this process. Every

time people think if the slum dweller comes we are

coming here to beg. Certainly not. We are not come here

to beg. Let’s sit together. Slum dweller, the city authority

and the bilateral…You need to have a partnership. We will

have a strategy we develop, we are the resource, we are

the assets.

Jockin Arputham,President Slum Dwellers International (SDI), World Urban Forum,Nairobi,29 April 2002.



■ Shelter Finance for the UrbanPoor: Experiences andInnovations

Washington, D.C.,April-May 2002

In collaboration with the World Bank’sresearch programme on “Low IncomeHousing and Land Strategies”, the CitiesAlliance hosted two seminars on therespective experiences of Mibanco inPeru and Funhavi in Mexico in provid-ing housing finance for the poor. Bothcase studies have been documented aspart of the Cities Alliance’s ShelterFinance for the Poor Initiative and aretwo in a series of studies on this topicthat will be disseminated in the thirdquarter of 2002. Other studies examinethe experience of SEWA Bank in India,a wholesale finance facility in Ecuador,and the policy and regulatory con-straints to shelter finance in Kenya.Asynthesis of all the case studies, which

will offer policy recommendations forgovernments and donors, is also beingprepared.These outputs are beingfinalised for dissemination through publication of the CIVIS series, chaptersof a book financed by Fannie Mae andUSAID, incorporation in training programmes for finance practitioners,web access, and workshops.

■ Secure Tenure for the UrbanPoor – Round Table Discussion

Washington, D.C., May 2002

As part of ongoing international effortsto meet the Cities Without SlumsMillennium Development Target, theCities Alliance hosted a round table onsecure tenure – one of the two indica-tors adopted by the United Nations tomeasure implementation of this target.Convened by World Bank ManagingDirector Mamphela Ramphele and

Fishermen attracted back to Ribeira Azul’s bay as upgrading moves forward. Salvador de Bahia, Brazil.



Executive Director of UN-HABITAT,Anna Tibaijuka, the round table heardpresentations by four prominent mem-bers of the International ResearchGroup on Law and Urban Space(IRGLUS):Alain Durand-Lasserve,Edesio Fernandes, Geoffrey Payne, andMartim Smolka. In addressing securetenure, the panelists highlighted theimportance of a range of options thatexist as alternatives to formal propertyrights and the granting of title – optionsthat provide the protection of due legalprocess as well as the opportunity tobuild economic assets, both essentialelements of urban poverty reductionstrategies.The presentations were basedon case studies from different parts ofthe world, highlighting innovativetenure options for the urban poor thathave already been implemented.

■ Towards Productive andInclusive Cities: the Role of CityDevelopment Strategies -International Seminar

Santo André, Brazil, June 2002

More than 300 participants from localgovernments, universities, researchinstitutes, civil society, and internationalorganisations gathered for two days ofintense discussions on the changing per-spectives on local and regionaldevelopment.The CDS experiences ofseven cities were systematically com-pared and evaluated.Two years in themaking, these CDS exercises were car-ried out by UN-HABITAT and UMP,with World Bank funding through theCity Alliance.The experiences of SantoAndré, Brazil, Cuenca, Ecuador, and

Johannesburg, South Africa were pre-sented by city officials and thendiscussed among local, national, andinternational organisations. Discussionswere enriched by bringing in the expe-riences of Milan, Italy, Barcelona, Spain,and Los Angeles, USA in participatorystrategic planning.A lively debate on therole of municipal governments in a localeconomic development strategy toreduce poverty was complemented by adiscussion on how to scale up localdevelopment strategies through capaci-ty-building, research, and evaluation. Inthe closing session, participants elabo-rated on the role of local and globalpartnerships in creating more inclusiveand productive cities.The results of this

Elements of a tenure regularisation policy

While local conditions need to determine final policy choices, the following steps should be considered:

▲ Prioritise occupancy rights, andsecurity of tenure;

▲ Promote records of land rights(including use rights) at local level,involving concerned communities;

▲ Develop appropriate regulatoryframeworks for the regularisation ofexisting settlements and the devel-opment of new settlements for theurban poor;

▲ Promote a wide range of tenureoptions to respond to the diversityof needs within the broader community;

▲ Implement upgrading incrementallyin order to limit the effects of formalmarket pressure, and market evictions on informal settlements.



event and the role of CDS will be pub-lished in a special edition of the Brazilianbusiness magazine Livre Mercado. In addi-tion, a publication of the seminarproceedings and all of the papers pre-sented is under preparation.The eventwas organised jointly by the Agency forthe Economic Development of theGreater ABC Area, Brazil; UN-HABI-TAT; UMP; and the Cities Alliance.

■ Slum Upgrading Course

Cambridge, Massachusetts,U.S.A., June 2002

The Cities Alliance joined forces withthe Massachusetts Institute ofTechnology (MIT) in presenting a week-long course on slum upgrading,covering key issues such as land acquisi-tion, tenure policies, and sustainablefinancing. Participants included localpartners from Alliance supported slumupgrading activities in Brazil, Mexico,India, South Africa, Cambodia,Vietnam,Philippines, and Madagascar. In additionto formal coursework, participantsmade informal presentations on slumupgrading issues from their respective

cities.The course is part of a wider ini-tiative currently being explored whichseeks to marshal the intellectual andinstitutional resources of universitiesand practitioners in different parts ofthe world to strengthen the local knowl-edge base and build the cadre of expertsneeded to implement citywide andnationwide slum upgrading.

■ Addressing Urban Poverty:East Asian Responses

Singapore, June, 2002

Mayors and senior local and national gov-ernment officials from six East Asiancountries (Cambodia, China, Indonesia,Mongolia, the Philippines, and Vietnam)joined World Bank urban staff for anUrban Poverty Learning Workshop inSingapore in June.The workshop wasorganised jointly by the World Bank andSingapore’s Ministry of Foreign Affairs toexchange experiences and ideas on tack-ling urban poverty and discuss the publicinterventions that have worked. Four par-ticular areas emerged as central to thereduction of urban poverty: local eco-nomic development for economicgrowth and job generation; land manage-ment for providing security of tenure andimproving infrastructure services; socialsecurity for supporting access to socialservices; and municipal capacity-buildingfor good governance and the eliminationof corruption.These issues were exam-ined from varying perspectives, includingthose of national governments, cities, andinternational donor agencies and devel-opment partners.

Guarapiranga, Brazil



■ Addressing CDS Knowledge Gaps

The Cities Alliance is supporting thedevelopment of a CDS interactive web-site to provide a platform for knowledgesharing and to facilitate further CDStool development.This CDS website isbeing developed with local authorityorganisations to generate and dissemi-nate this information through theirnetworks.A working group of the localauthority members of the Alliance hasbeen established to facilitate this processand to guide the International CityManagers Association (ICMA) which isdeveloping the pilot phase of this effort.

■ Building National and Regional Capacities

To help institutionalise the monitoringand evaluation of CDS and upgradinginitiatives, the Cities Alliance is encour-aging the engagement of universities andurban institutes in the countries andregions where it is active.TheUniversity of São Paulo, for example,has proposed to organise a partnershipof local and national Brazilian institu-

tions and other actors to document anddisseminate knowledge on projects,experiences, standards, and researchfindings on low-income housing andslum upgrading.This information will bemaintained in Portuguese on a CitiesAlliance website for Brazil.This willbenefit the university’s courses on slumupgrading, which are currently beingexpanded, as well as the scaling upefforts which are underway in Brazil.Alliance-supported CDS activities inChina and Indonesia have similar strate-gies to take advantage of the in-depthknowledge of local universities whilehelping them to build their curriculumand train the cadre of experts who willbe needed to sustain these initiatives.The Alliance is also establishing a part-nership with the Arab UrbanDevelopment Institute (AUDI) to helpstrengthen city-to-city learning from theregional knowledge and analyses of suc-cessful slum upgrading and CDSexperiences in the Middle East andNorth Africa region.

In accordance with its charter, the governance and organisational structure of the Cities Allianceincludes a Consultative Group, a Policy Advisory Board and a Secretariat.

Consultative GroupThe Consultative Group – the Alliance’s board of directors – is responsible for setting theAlliance’s long-term strategy, approving its annual work programme and budget, and reviewingachievements.The Consultative Group is composed of financial contributors to the Cities AllianceTrust Fund and the political heads of the major global organisations of local authorities who havepledged their commitment to achieving Alliance goals. Prospective financial contributors mayserve as Associate Members for a period agreed to by the Consultative Group.The ConsultativeGroup is co-chaired by the Vice President, Private Sector Development and Infrastructure, theWorld Bank; and the Executive Director,UN-HABITAT.

Consultative Group meetings are held annually in connection with a global Public Policy Forumdesigned to share the lessons learned from experience and agree on policy orientations and stan-dards of practice in areas related to the Alliance’s goals.The Consultative Group has also formed afive-member Steering Committee, made up of a subset of its members, to provide guidance to theSecretariat.

Consultative Group Meetings

■ Berlin, December 1999: inaugural meeting, launch of Cities Without Slums action plan, andapproval of Charter and 2000 work programme.

■ Montreal, June 2000: first Public Policy Forum on the dimensions of pro-poor urban policies,review of application guidelines and approval of Cities Alliance Vision statement.

■ Rome, December 2000: second Public Policy Forum on “Local Partnerships: Moving toScale”, approval of Charter amendments, 2001 work programme and procedures to establishPolicy Advisory Board and Steering Committee.

■ Kolkata, December 2001: third Public Policy Forum on “Sustainable Partnerships for CityDevelopment”, review of procedures for the independent evaluation of the Cities Alliance,and approval of 2002 work programme.

Consultative Group Members — June 2002*

Local Authorities■ International Union of Local Authorities ■ Metropolis ■ World Federation of United Cities■ World Associations of Cities and Local Authorities Coordination

Governments■ Canada ■ France ■ Germany ■ Italy ■ Japan ■ The Netherlands ■ Norway ■ Sweden■ United Kingdom ■ United States

Multi-lateral organisations■ Asian Development Bank ■ UN-HABITAT ■ World Bank

* Associate members that have attended meetings of the Consultative Group include: the African Development Bank,Austria, Denmark, the European Commission, Finland, Spain, the United Nations Development Programme, UNICEF and the International Labour Organization.


Organisation

47

See charter at Cities Alliance website,http://www.citiesalliance.org


Organisation

48

Policy Advisory BoardThe Alliance’s Policy Advisory Board is composed of eminent urban experts from each region.They provideguidance to the Consultative Group on key strategic,policy, and regional issues and support the implementa-tion of Alliance activities.The composition, terms ofoffice, and operating procedures for the Policy AdvisoryBoard were established by the Consultative Group at itsmeeting in December 2000.The board meets twice ayear and is composed of eight members who serve two-year terms on a rotational basis. Six members werenominated initially (two from Africa, two from Asia, one from Latin America and theCaribbean, and one from the North).The board’s two remaining members will be nominatedby the Consultative Group from the Arab States and Eastern Europe.

The Policy Advisory Board held its first meeting June 11–12, 2001, at the United Nationsheadquarters in New York, on the occasion of the General Assembly’s special session onIstanbul+5. In December 2001, the Policy Advisory Board took part in both the Public PolicyForum and the Consultative Group meeting in Kolkata. During this meeting, board memberschallenged the Alliance to move into innovative operations on the frontier of developmentcooperation.The two members of the board from Asia took the lead in organising the 2001Public Policy Forum, which brought together participants from 11 cities around India and 30other countries, including government officials, national and international experts, NGOs,slum dwellers, and members of civil society.

Policy Advisory Board Members — June 2002

The board brings together civic leaders and policy advisors with a formidable range of expert-ise in both the public and private sectors which spans the leadership of CBOs, NGOs and their networks, local authority organisations, community banks, community savings and credit schemes, commercial banks, and public sector financial institutions.What they have in common is practical knowledge and political experience in working with poor cities and thecities’ poor world-wide.

Somsook Boonyabancha is Director of the Community Organisations DevelopmentInstitute of the National Housing Authority of Thailand;Advisor to the Crown Property Bureau on slum improvement and land-sharing; and Secretary General of the Asian Coalitionfor Housing Rights, a regional coalition of NGOs, community organisations, and professionalsbased in Bangkok,Thailand.

Mary Houghton is President and Director of Shorebank Corporation in Chicago, USA, aUS$1.1 billion asset commercial bank holding company organised to implement communitydevelopment strategies in targeted urban neighbourhoods and rural areas, and advisor to private banks and micro-credit lending institutions in developing and transition countries.

Policy Advisory Board members, Sheela Patel and SomsookBoonyabancha in Kolkata


Akin L. Mabogunje is Executive Chairman of the Development Policy Centre, Ibadan,Nigeria; Chairman of the Board of Trustees, Ijebu-Ode Development Board for PovertyReduction; and an internationally renowned African development scholar who has publishedand lectured widely on urban management, rural development, and spatial perspectives in thedevelopment process.

Jean Pierre Elong Mbassi is Coordinator of the Municipal Development Programme,Westand Central Africa, based in Cotonou, Benin; Special Advisor to the Union of African Cities;and an experienced practitioner in urban management and slum upgrading.

Sheela Patel is founding Director of the Society for the Promotion of Area Resource Centresin Mumbai, India, working in alliance with the National Slum Dwellers Federation and MahilaMilan in the federation of community-based organisations of the urban poor and the promo-tion of women’s savings and credit schemes as a means to community mobilisation.

Richard Webb is the President of the Central Bank of Peru; former President of BancoLatino in Lima, Peru; former Director of the Instituto Cuanto; and a widely published scholaron public policy, income distribution, poverty, and economic reform.

SecretariatThe Secretariat is a small team housed in the World Bank that carries out the Alliance’s mandate and manages its operations.

Secretariat Staff — June 2002

Manager, Mark Hildebrand

Senior Urban Finance Advisor, Mohini Malhotra

Senior Urban Upgrading Advisor, William Cobbett

Senior CDS Advisor, Peter Palesch

Programme Analyst, Andrea Merrick

Resource Management Officer, Kevin Milroy

Resource Management Assistant, Françoise Aubry-Kendall

Programme Assistant, Karen Burke

Regional Advisors

Latin America and the Caribbean, Ivo Imparato

South Asia, Alison Barrett

Organisation

49

2000-2005 Targets: US$115 million in grant assistance

Cities Alliance Commitments to Date*: US$42 million

* Includes Italy’s US$5.0 million non-core contribution to the Salvador,Bahia,Brazil slum upgrading initiative,and the U.K.’ s US$10 million non-core contribution for CLIFF.


Scaling up to MeetFinancial Targets

The Cities Alliance met its initialthree-year funding target of US$40million during FY02, with US$42

committed as of June 2002.

The Alliance is now mobilising for the goalof US$115 million in grant support, whichis targeted in the Cities Without SlumsAction Plan for the 2000-2005 period.Meeting this goal will require bridging afinancial gap of US$25 million per year over the next three years.

To provide more options for Alliance mem-bers to expand and leverage theircommitments towards the Action Plan goals,Alliance members are considering the estab-lishment of more open and flexiblemechanisms and facilities.The Community-Led Infrastructure Finance Facility (CLIFF)is the first of these facilities approved by theConsultative Group in FY02. Such facilities

are particularly needed in regions where theprocess of decentralisation – and thus thecapacity of cities and civic groups to partnerin the development process – is lessadvanced.

In response to this need, a Sub-SaharanAfrica Facility has been proposed by Norwayto support the efforts of partners in theregion (national and local authorities, civilsociety) to design and implement pro-grammes of action and to set local targets aspart of the Cities Without Slums initiative.This facility would provide Alliance mem-bers with an efficient vehicle for earmarkingassistance within the framework of theAlliance’s existing strategic approach, workprogramming, governance, administration,and reporting protocols. Preliminary discus-sions are also underway on a facility to assisttowns and cities in the Middle East andNorth Africa region to carry out CDS.

Financials

50

$150

$100

$50

$ 02000 2001 2002 2003 2004 2005

CWS Action Plan 6-Year Target

Cities Alliance Commitments to Date

Progress in Meeting Cities Without Slums Grant Assistance Targets

Financials

SOURCES OF FUNDS FY00-FY02 (Unaudited)(U.S. dollars as of 30 June 2002)*

Summary Pledges Paid-In

Core Funding 18,400,000 9,872,053

Non-Core Funding 18,312,000 2,624,714

Secretariat Funding 5,295,000 4,172,152

Total Funding 42,007,000 16,668,919

Core Funding Pledges Duration Paid In**

Asian Dev. Bank 250,000 2002 0

Canada 500,000 2000-2001 502,717

France 500,000 2000, 2002 243,184

Germany 1,000,000 2000-2003 373,233

Italy 950,000 2000-2002 713,207

Japan *** 1,750,000 2000-2002 1,500,000

The Netherlands 2,250,000 2000-2002 2,250,000

Norway 750,000 2000-2002 499,215

Sweden 1,250,000 2000-2004 468,063

United Kingdom 6,000,000 2000-2005 2,072,434

United States 750,000 2000-2002 500,000

World Bank 2,450,000 2002-2003 750,000

Total Core 18,400,000 9,872,053

Secretariat Funding****

World Bank 2,950,000 2000-2002 2,950,000

UN-HABITAT 1,107,000 2000-2003 772,152

Other 1,238,000 2001-2005 450,000

Total 5,295,000 4,172,152

Non Core Funding*****

Asian Dev. Bank 420,000 2002 0

Italy 5,475,000 2001-2003 1,424,714

Japan 1,250,000 2000-2002 500,000

United Kingdom 10,467,000 2001-2005 0

World Bank 700,000 2001 700,000

Total Non-Core 18,312,000 2,624,714

* Fiscal year covers the period July 1 to June 30.** Amounts may vary from amount pledged due to exchange rate fluctuation.*** Japan’s FY00 included $750,000 earmarked for Asian CDS activities, but this contribution is reflected here as part of Core Funding

since the funds were programmed as part of the regular Core Work Program development.**** Secretariat funding includes in-kind funding for staff secondments from UN-HABITAT,Germany and U.K.***** Non-Core funding is earmarked for specific region or type of activity. Italy earmarked $5,000,000 for Salvador,Bahia,Brazil slum

upgrading programme (including $2,500,000 for technical assistance) and $475,000 for Latin America and Caribbean activities;Japan for Asian CDS networking activities;DFID $10,000,000 for CLIFF,$400,000 for China CDS,and $67,000 for KolkataPPF; and World Bank $700,000 (FY01) for United Nations partnerships. The ADB’s Non-Core funding will be administered by the ADB as a parallel contribution.

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USES OF FUNDS FY00-FY02 (Unaudited)(U.S. dollars as of 30 June 2002)

Summary FY02 Cumulative

Allocations Disbursements Allocations Disbursements

Core Activities 3,941,850 3,134,003 12,509,150 5,291,060

Non-Core Activities 10,967,000 617,995 17,142,000 1,747,247

Secretariat 1,543,000 1,656,562 4,210,000 4,155,562

Total Uses of Funds 16,451,850 5,408,560 33,861,150 11,193,869

Approvals by Type of Activity FY02 Cumulative

Core Funds Non-Core Funds Core Funds Non-Core Funds

City Development Strategies 1,701,785 900,000 3,921,585 1,600,000

Scaling up Upgrading 1,865,065 10,000,000 4,989,065 15,000,000

Both CDS & Upgrading 375,000 67,000 3,598,500 542,000

Total Approved Grants 3,941,850 10,967,000 12,509,150 17,142,000

Approvals by Region FY02 Cumulative

Core Funds Non-Core Funds Core Funds Non-Core Funds

Sub-Saharan Africa 1,364,640 0 2,786,640 0

Asia 1,135,065 900,000 4,163,065 1,150,000

E. Europe & C.Asia 0 0 399,800 0

Latin America & Caribbean 917,145 0 2,615,645 5,475,000

M. East & N.Africa 150,000 0 575,000 0

Global/ Multi-Regional 375,000 10,067,000 1,969,000 10,517,000

Total Approved Grants 3,941,850 10,967,000 12,509,150 17,142,000

Secretariat Expenditures FY02 FY01 FY00 Cumulative

Operational:

Secretariat Staff 625,295 527,215 196,000 1,348,510

Consultants, Other Labour 70,819 104,000 219,000 393,819

Travel 208,708 117,000 121,000 446,708

Other Costs 71,926 72,000 390,000 533,926

Sub-Total 976,748 820,215 926,000 2,722,963

Management & Administration:

Secretariat Staff 533,784 428,785 297,000 1,259,569

Rent, Computing, Other Costs* 146,030 7,000 20,000 173,030

Sub-Total 679,814 435,785 317,000 1,432,599

Total Secretariat Costs 1,656,562 1,256,000 1,243,000 4,155,562

* FY01 and FY00 rent and computing costs were incorporated as part of staff payroll costs.

Financials

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Financials

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APPROVED PARTNERSHIP ALLOCATIONS(U.S. dollars as of 30 June 2002)

Allocation Start Date Country Activity TitleAmount (US$)

SUB-SAHARAN AFRICA REGION

FY02 380,640 finalising Burkina Faso CDS and Local PRSPs for the Local agreement Governments of Bobo-Dioulasso, Banfora

and Ouahigouya

FY02 249,000 Jun-02 Ethiopia Addis Ababa CDS

0 cancelled Kenya Nairobi CDS and Upgrading of Informal Settlements

FY02 240,000 Jul-02 Kenya Collaborative Nairobi Initiative on Slum Upgrading Policy Frameworks

152,000 Sep-00 Madagascar Slum Upgrading and Community Development in Four Major Cities:Antsirabe,Antsiranana, Mahajanga and Toamasina

286,000 Jun-01 Madagascar CDS for Antananarivo - Infrastructure Development, Urban Services Improvement and City Poverty Strategy

75,000 completed Mauritania Slum Upgrading and Urban Poverty AlleviationJun-01

FY02 495,000 Jul-02 Mozambique Slum Upgrading and Vulnerability Reduction inFlood Prone Cities/Towns in Mozambique

254,000 Nov-00 Nigeria Scaling up Upgrading through a CDS Approachin Karu

100,000 completed Regional Regional Roundtable on Upgrading LowOct-01 Income Settlements in Africa

165,000 completed Rwanda Kigali Economic Development StrategyMay-02

350,000 completed South Africa Johannesburg City Level Comprehensive Mar-02 Development Framework

40,000 completed South Africa Preparation of Southern Africa Cities AllianceMar-02

Financials

54


ASIA REGION

FY02 500,000 Sep-01 Asia regional City Networking and Investment Marketplace Development Initiative in Asia

150,000 completed Asia regional Asian CDS Workshop 2000Dec-00

0 cancelled Bangladesh Khulna: Options for Sustainable UpgradingJan-02

185,000 Mar-01 Cambodia Scaling up Community-Driven Development Process in Phnom Penh

500,000 Oct-00 China Metropolitan Level CDS in One Major City-Region and One Provincial Capital

250,000 Jun-01 China Changsha City-Region, Giuyang and Shengyan City Development Strategies: Urban IndicatorsProject

FY02 900,000 Dec-01 China City-Regional Development Strategies in China

226,000 Jun-01 India Local Partnership for Poverty-focused CDS in Hyderabad

67,000 May-01 India Preparation of Gujarat State Urban Slum Policy

FY02 150,000 Mar-02 India Citywide Scaling Up of Slum Upgrading (Ahmedabad)

FY02 387,000 finalising India Creating Community Federations for Urban agreement Partnerships (Orissa)

FY02 98,065 finalising India Improving Access of Poor to Basic Urban agreement Services in the Ludhiana Municipal

Corporation

30,000 completed Indonesia Proposal Preparation: Poverty-focused CDSsMar-01

600,000 Mar-01 Indonesia Institutionalizing Poverty-focused CDSs

160,000 completed Nepal Katmandu CDS and Informal Settlement StudyAug-01

30,000 completed Pakistan Proposal Preparation: Peshawar CDS & City Apr-01 Assistance Program

150,000 Apr-01 Pakistan CDS and Cities Without Slums Initiative for Peshawar

30,000 completed Philippines Proposal Preparation: Expansion of the CDS May-01 Program

600,000 May-01 Philippines Upscaling Poverty-Focused CDSs

300,000 Apr-01 Vietnam Enhancing Access of the Urban Poor and Vulnerable Groups to Basic Infrastructure and Housing


Financials

55


EASTERN EUROPE & CENTRAL ASIA REGION

75,000 Jun-01 Bosnia-Herzegovina Preparation of Mostar's Local Economic Development- Capacity Building and Business Improvement Program

75,000 completed Bulgaria Sofia CDS - Phase IJun-01

249,800 Jun-01 Bulgaria Sofia CDS - Phase II

LATIN AMERICA & CARIBBEAN REGION

FY02 195,000 finalising Bolivia Slum Improvement and Disaster Management agreement Mitigation in the City of La Paz

180,000 Jan-01 Brazil Recife Metropolitan Region Development Strategy

560,000 Apr-01 Brazil Building an Enabling Strategy for Moving to Scale in Brazil

5,000,000 Jun-01 Brazil Salvador, Bahia,Technical and Social Assistance Project

FY02 300,000 Jun-02 Brazil “Bairro Legal” Program (São Paulo)

FY02 165,700 Feb-02 Brazil Anti-Poverty and Anti-Exclusion Socio- Economic Action Plan: City Networks for Development & Social Inclusion (Rio Grande do Sul)

96,000 completed Central America Urban ReviewJul-01

84,000 Sep-00 Central America Regional Coordination towards a Sustained Programme for Upgrading

320,000 Mar-01 El Salvador Improving Execution Capacity for Urban Upgrading Program in Metropolitan Area of San Salvador

FY02 256,445 finalising Jamaica The Kingston and St.Andrew Sustainable agreement Development Plan

475,000 Apr-01 LAC Region Moving to Scale in Latin America and the Caribbean

213,500 Jun-01 Latin America Build LAC Capacities in Urban Knowledge Management

245,000 Jun-01 Mexico Scaling up Upgrading and Managing Informal Urban Growth in the Metropolitan Mexico City Area


Financials

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MIDDLE EAST & NORTH AFRICA REGION

130,000 Sep-00 Egypt Upgrading Informal Areas in Ismailia Governorate

295,000 Aug-01 Morocco Upgrading Project for the Koraat Sbaa Neighborhood in Tetouan

FY02 150,000 Feb-02 Yemen Aden Medium to Long-Term CDS for Local Economic Development

GLOBAL & MULTI-REGIONAL ACTIVITIES

500,000 Sep-01 Global Pro-Poor Slum Upgrading Frameworks in India, the Philippines and South Africa

210,000 Jun-01 Global Housing Finance for the Poor — Innovations and Good Practices from the Field

450,000 May-01 Global Consolidation of the Experience from Seven City Development Strategies of the UMP

FY02 10,000,000 finalising Global The Development of the Community-Led agreement Infrastructure Finance Facility (CLIFF)

FY02 195,000 Nov-01 Global Cities Alliance Independent Evaluation

50,000 Mar-00 Global Urban Indicators Linkages

150,000 Mar-00 Global Preparatory Assistance Fund

99,000 Mar-00 Global Knowledge Dissemination (website,publications)

50,000 completed Global Public Policy Forum - June 2000Jul-00

60,000 completed Global Urban Upgrading:A Resource FrameworkJun-01

75,000 Jun-01 Global CDS Action Plan

212,000 Jun-00 Global CG/PPF Meetings

70,000 May-01 Global Policy Advisory Board Meetings

20,000 Jun-00 Global Building Political Commitment

5,000 Sep-00 Global Millennium Summit Product/Activity

20,000 Jun-00 Global Short Note Series

20,000 Jun-00 Global Technical Peer Reviews

300,000 Mar-01 Regional Regional Action Plans

29,651,150 TOTAL APPROVED ALLOCATIONS

Financials

ADB Asian Development Bank

AfD Agence française de développement[French Development Agency]

CBO community-based organisation

CDS city development strategies

CGAP Consultative Group to Assist the Poorest

CLIFF Community-Led Infrastructure Finance Facility

DFID Department for International Development [UK]

EU European Union

FAO Food and Agriculture Organizationof the United Nations

GIS geographic information system

GTZ Gesellschaft für Technische Zusammenarbeit [German Agency for Technical Co-operation]

HIPC Heavily Indebted Poor Countries

IFC International Finance Corporation

KfW Kreditanstalt für Wiederaufbau [German Development Bank]

MFI micro-finance institutions

NGO non-governmental organisation

PRSP Poverty Reduction Strategy Paper

SEWA Self-Employed Women’s Association

UMP Urban Management Programme

UN United Nations

UN-HABITAT United Nations Human Settlements Programme

UNDP United Nations Development Programme

USAID U.S.Agency for International Development

Acronyms

Photo Credits

Cover: 2002 © Sebastião SALGADOPage 2:2002 © Sebastião SALGADOPage 11:Christianna JohnnidesPage 13: World BankPage 17:Ahmed EiweidaPage 18:Ahmed EiweidaPage 19:Kremena InkovaPage 20:Christianna JohnnidesPage 21: Ivo ImparatoPage 22:Andres RomoPage 23:Andres RomoPage 26: Jornal da TardePage 27: World Bank

Page 28:Commissariat aux Droits de l'Homme,à la Lutte contre laPauvreté et à l'Insertion

Page 30:Brahim Ould AbdelwedoudPage 31: World BankPage 32: World BankPage 33:2002 © Sebastião SALGADOPage 38:Angel Garcia,Cooperative Housing FoundationPage 38 (lower):Anthony PellegriniPage 40:Anthony PellegriniPage 41 (upper/lower):Cities AlliancePage 43:Mark HildebrandPage 45: World BankPage 48:Cities Alliance

Contributors

Andrea Merrick: Editor

Randy Cook: Designer

2002 ar final - university college london...mahim.bombay, india,1995. introduction cities alliance...

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