Urban Development: Promoting Jobs, Upgrading Slums, and Developing Alternatives To New Slum Formation
Urban Development: Promoting Jobs, Upgrading Slums, and Developing Alternatives To New Slum Formation
Urban Development: Promoting Jobs, Upgrading Slums, and Developing Alternatives To New Slum Formation
The Cities Alliance has reproduced this section of the Millennium Project’s
Report to the UN Secretary General which identifies five central issues facing
the world’s growing urban areas: improving security of tenure, upgrading slums
and improving housing, expanding citywide infrastructure and effective service
delivery, creating urban jobs through local economic development, and
providing alternatives to slum formation. Together, these policy
recommendations amount to an agenda for urban reform that could
dramatically improve the lives of millions of slum dwellers, and improve the
ability of cities to drive their national economies.
A sharper focus on reducing urban poverty is necessary, in part because official statistics
tend to underestimate urban poverty, which is very high in most developing countries
(Satterthwaite 2004). Ending extreme poverty also requires ensuring a productive urban
environment, improving the lives of slum dwellers, and providing alternatives to the
formation of new slums. Most non- agricultural activities - industry and services - thrive
best in an urban setting where the concentration of economic activity reduces
transaction costs (such as transport and communication) and allows the face-to-face
contact vital for a sophisticated division of labor. That is why the urban economy is
generally an important center of gravity of economic life and the focus of technological
advance and specialization.
In developing countries around the world, cities are struggling to function. They
are home to extreme poverty and fail to create the jobs necessary for growth. The share
of the population living in urban areas is rising inexorably and will continue whether
rural development is successful or not. If rural development is successful, it will mean
that a shrinking proportion of the population can feed the entire population. The
children of farmers will therefore move to cities in search of a new life. If it is
unsuccessful, then "rural refugees" will escape from intense rural poverty, shrinking farm
sizes, and environmental degradation. They will come to the cities in search of jobs and
services. If good jobs do not exist, the migrant workers will live in extreme poverty
under slum-like conditions and swell the ranks of the informal economy.
Over the coming decades, countries in Asia and Africa will continue to urbanize
rapidly, approaching the urban population shares in Latin America and the high-income
countries. While rapid urbanization in poor countries poses an unprecedented challenge,
it also creates an opportunity. Due to high population densities, critical social services
such as education and healthcare can be more easily provided than in rural areas. Even
so, these services often remain inaccessible to many urban poor. In some slums health
outcomes are worse than in rural areas. If the social exclusion of people living in
1
Excerpt on urban development from Chapter 5 (pp 72-77) of the UN Millennium Project’s Report to the
UN Secretary-General, Investing in Development: A Practical Plan to Achieve the Millennium
Development Goals, reproduced with the kind permission of the Millennium Project
(www.unmillenniumproject.org). For more details please refer to the Report of the Task Force on
Improving the Lives of Slum Dwellers – A home in the city.
informal settlements or slums can be ended, urbanization can be a powerful driver for
improving the lives of a country's population and for generating economic growth.
Given the pressures that urbanization imposes on cities, finding alternatives to
new slum formation and improving the lives of slum dwellers, as called for in the
Millennium Development Goals, are essential goods in themselves and necessary for
raising urban productivity. The package of investments for urban development,
summarized in appendix 1, should include five broad areas: improving security of tenure
for slum dwellers, upgrading slums and improving housing, expanding citywide
infrastructure and effective service delivery, creating urban jobs through local economic
development, and providing alternatives to slum formation.
Upgrading slums
Upgrading housing and retrofitting infrastructure for water supply, sanitation, transport,
and energy services are critical for improving the lives of slum dwellers. Successful slum
upgrading is best carried out by local authorities and communities working in close
partnership (box 5.3). Where possible community organizations should be supported
and allowed to play an active role in preparing and executing plans for slum upgrading.
Moreover, upgrading must be citywide to avoid having the remaining informal
settlements continue to grow by attracting new migrants. Of particular importance are
investments in housing, which can often be carried out incrementally by the poor, if they
have adequate security of tenure, and which can become an important means of asset
accumulation. (The report of the Task Force on Improving the Lives of Slum Dwellers
describes successful strategies for slum upgrading in detail; UN Millennium Project
2005f.)
Compared with rural areas, slum upgrading requires a stronger focus on
networked technologies, such as sewers, piped water, and electricity grids. Investments
in improved sanitation should receive high priority to improve the quality of life and
reduce the high burden of oral-fecal diseases in informal settlements caused by
widespread open defecation. The high density of informal settlements makes sanitation
particularly precarious. Where space constraints are high, low- cost communal toilet
blocks have been used successfully. Effective hygiene education and awareness building
programs are essential to create demand for sanitation and to ensure adequate use by all
household members. Other investments required as part of slum upgrading include
storm drainage community facilities, local markets, and street lighting. Health services
require investments as well. As mentioned earlier, nutrition interventions for both the
general population and vulnerable groups will reduce morbidity and mortality among the
urban poor. Clinics need to be more accessible, be located where needs are greatest, and
be open during hours that can accommodate the schedules of the working poor.
Creating jobs
Cities must create jobs to employ their rising populations. Good infrastructure attracts
domestic and foreign investment, which is necessary for large-scale job creation.
Another task for urban planners is to improve industrial efficiency and attract foreign
investors with industrial parks, export processing zones, or other designated areas for
private sector development. Successful cities are able to link industrial zones with
seaports and airports to reduce the time, cost, and hassle of shipping goods.
Equally important are measures to support the informal sector, where most of
the urban poor work in low paid, low productivity, and low security jobs. To facilitate
the shift into the formal sector, local authorities should adjust their laws and regulations
to lower the costs and increase the benefits for people to formalize their enterprises.
They should also provide assistance to small enterprises to upgrade skills and increase
access to productive resources and market opportunities.