Microcredit as Tool for Systemic Change

Micro-Credit as a Tool for Systemic Change- Norberto L.Carcellar, C.M. : 

Micro-Credit as a Tool for Systemic Change- Norberto L.Carcellar, C.M. Famvin Consys Asia Oceanic 9-13 November 2009, Bangkok, Thailand The Philippine Alliance Experience

Urban Asia: Rapid urbanization : 

Asia’s urban centers house around 1.5 billion people By 2025, 1/3rd of the world’s total population is likely to live in Asia’s urban centers Source: ACHR, Social Production of Housing Paper (2005) Distribution of World’s Urban Population: 1950, 2007, and 2050 Source: United Nations Department of Economic and Social Affairs/Population Division 5. World Urbanization Prospects: The 2007 Revision Urban Asia: Rapid urbanization 2

Urban Poverty in Asia: Slum dwelling at scale : 

Asia’s urban centers have most of the world’s poverty: Most of the world’s slum and squatter population _ Lacks adequate provision of water, sanitation, drainage, health care and schools Urban Poverty in Asia: Slum dwelling at scale According to UN in 2000: 500 million Asians lacked adequate water 600 million Asians lacked adequate sanitation Source: www.pcij.org ADB picture Source:www.asianwindow.com/india/a-walking-tour-around-the-slums-of-mumbai/ 3 Source: ACHR, Social Production of Housing paper (2005)

Urban Poverty in Asia: Slum dwelling at scale : 

By a thumb rule: Average population growth: 2.0% per year Urban population growth: 3.5% to 4% Slum population in major cities grows at about 8% to 12% per annum.(”Slumification”) The slums and other forms of inadequate shelter house between 30% to 50% of a big city population Source: //www.skyscrapercity.com/showthread.php?t=250730&page=36 Urban Poverty in Asia: Slum dwelling at scale 4 Source: ACHR, Social Production of Housing paper (2005)

Philippine Urban Scene : 

Estimated population in 2010: 94 Million Annual Population growth: 2.36% Urbanization rate: 52% In 2000, 48% of the population resided in urban areas; Acute housing shortage: 3.75 Million for 2010. Government target for 2010: 1.145 Million Source: /marginalizingmorons.blogspot.com/2008_01_01_archive.html Philippine Urban Scene 5 Sources: www.nscb.gov.ph, Chapter 4 Housing, MTPDP (2005-2010)

Inadequacy of government programmes: : 

Inadequacy of government programmes: 6 Source: HPFPI-CLIFF pictures (Iloilo) Government programmes oriented at providing complete houses and lots to low income households have failed to reach the bulk of the poor who need them most. Given this gap, the poor are constrained to act and find their land and housing solutions. Albeit informal and at times illegal, these solutions respond to the need for shelter from the elements. The poor act on their needs…

Self built housing by the poor : 

Self built housing by the poor 7 Source: ACHR, Social Production of Housing paper (2005) public sector share: 1 unit formal private sector: 2 units informal private sector: 7 units (people process in housing, especially slums formation) It is estimated that in a typical Indian city out of 10 houses that get constructed:

Land and Housing for Slum Dwellers: What does it take? : 

Land and Housing for Slum Dwellers: What does it take? 8

Comparison of the Philippine formal and Informal land and housing development : 

Comparison of the Philippine formal and Informal land and housing development 9 FORMAL INFORMAL

People’s Incremental Land and Housing Process: Concepts & Traits : 

People’s Incremental Land and Housing Process: Concepts & Traits Source: ACHR Social Production of Housing (2006). Greene & Rojas Incremental Construction (2008) 10

People’s Incremental Land and Housing Process: Concepts & Traits : 

People’s Incremental Land and Housing Process: Concepts & Traits Source: ACHR Social Production of Housing (2006). Greene & Rojas Incremental Construction (2008) 11

People’s Incremental Housing Production Process: Features : 

People’s Incremental Housing Production Process: Features Source: Greene & Rojas, Incremental Construction (2008) 12

People’s Incremental Housing Production Process: Features : 

People’s Incremental Housing Production Process: Features Source: Greene & Rojas, Incremental Construction (2008) 13

People’s Incremental Housing Production Process: How to Support it? : 

People’s Incremental Housing Production Process: How to Support it? Source: ACHR Social Production of Housing (2006). Greene & Rojas Incremental Construction (2008) 14

People’s Incremental Housing Production Process: 3 Phases : 

People’s Incremental Housing Production Process: 3 Phases Source: Pictures from HPFPI-CLIFF; Greene & Rojas, Incremental Construction (2008) 15

1) Access to Land Phase : 

1) Access to Land Phase Source: Pictures from HPFPI-CLIFF; Greene & Rojas, Incremental Construction (2008) 16

2) Construction of Basic Core Phase : 

2) Construction of Basic Core Phase Source: Pictures from HPFPI-CLIFF; Greene & Rojas, Incremental Construction (2008) 17

Construction of Basic Core Shelter (Phase 2) : 

Construction of Basic Core Shelter (Phase 2) 18

Construction of Basic Core Shelter (Phase 2) : 

Construction of Basic Core Shelter (Phase 2) 19

3) Incremental Improvement of Dwelling : 

3) Incremental Improvement of Dwelling Source: Pictures from HPFPI-CLIFF; Greene & Rojas, Incremental Construction (2008) 20

Housing Production by the Poor : 

Housing Production by the Poor 21

The Philippines Alliance : 

The Philippines Alliance 22

Goal of HPFPI : 

Goal of HPFPI 23

Why is HPFPI supporting low-income communities land tenure problems? : 

Why is HPFPI supporting low-income communities land tenure problems? 24

Slide 25: 

Source: Greene & Rojas, Incremental Construction (2008) 25

Developer-led Housing : 

Developer-led Housing Source: Yu, Sadra, Documentation of the HPFPI Expereince (2004) 26

Community-led:HPFPI Experience : 

Community-led:HPFPI Experience Source: Yu, Sadra, Documentation of the HPFPI Expereince (2004) PROBLEM AREA PROBLEM AREA 27

Programs and Initiatives of the HPFPI : 

Programs and Initiatives of the HPFPI 28

Programs and Initiatives of the HPFPI : 

Programs and Initiatives of the HPFPI 29

Programs and Initiatives of the HPFPI : 

Programs and Initiatives of the HPFPI 30

Programs and Initiatives of the HPFPI : 

Programs and Initiatives of the HPFPI 31

Programs and Initiatives of the HPFPI : 

Programs and Initiatives of the HPFPI 32

Programs and Initiatives of the HPFPI : 

Programs and Initiatives of the HPFPI 33

Programs and Initiatives of the HPFPI : 

Programs and Initiatives of the HPFPI 34

Programs and Initiatives of the HPFPI : 

Programs and Initiatives of the HPFPI 35

Summary Process of Community-led Housing Development : 

Summary Process of Community-led Housing Development 36

CLIFF : 

CLIFF COMMUNITY-LED INFRASTRUCTURE FINANCE FACILITY - A global project that aims to support and build urban poor communities’ capacities towards up-scaling community-driven initiatives in slum upgrading. Funded by Swedish International Development Cooperation Agency (SIDA) and the UK Department for International Agency (DFID) through Cities Alliance, World Bank and Homeless International (HI). The HPFPI and Philippine Action for Community-led Shelter Initiatives Inc. (PACSII) as local partners for implementation of CLIFF. 37

ACHR-ACCA (financial facility) : 

ACHR-ACCA (financial facility) ASIAN COALITION FOR HOUSING RIGHTS – ACCA : Small scale-upgrading projects managed by communities With target pilot communities With US$40,000 support fund from ACHR (ACCA) Maximum loan of Php 140,000 per community, interest free Payable in 1-3 years Community savings as a basic component & non-negotiable policy 38

People’s Incremental Housing Production Process: Synthesis : 

People’s Incremental Housing Production Process: Synthesis 39

Institutional and Delivery Mechanism for this Enabling Approach : 

Institutional and Delivery Mechanism for this Enabling Approach Community surveys Consultations, workshops Community savings City funds Orientations, Trainings Meetings, Conferences Learning Exchanges Planning, Designing Implementing upgrading solutions in collaboration with city and other stakeholders INPUTS: Land, subsidies, core housing, Micro-credit, Revolving savings funds, Technical assistance Inter-agency/ TWG/ Task force through EO / ordinances 40

People’s Incremental Housing Production Process: Synthesis : 

People’s Incremental Housing Production Process: Synthesis 41

People’s Incremental Housing Production Process: Synthesis : 

People’s Incremental Housing Production Process: Synthesis 42

Slide 43: 

43 We can build our own communities. All we need is land. - HPFPI Nothing about our settlements without us. -HPFPI

Slide 44: 

The key to meeting the challenge to providing adequate shelter to all in Asian cities, especially to the low income groups whom the market cannot reach or service, is to recognize momentum, validity and value of the social production process and to act to encourage, support and accelerate it. - ACHR, Social production of housing (2005) Thank you!