Foreword | p. v |
Introduction | p. vi |
Acknowledgements | p. vii |
List of Figures, Boxes and Tables | p. xv |
List of Acronyms and Abbreviations | p. xviii |
Key Issues, Findings and Messages | p. xxiii |
MDG Special Feature: Financing the Target on Slums | p. xxvii |
Synopsis | p. xxxii |
Economic and Urban Development Context | |
Challenges of Sustainable Shelter Development in Macroeconomic Context | p. 3 |
Understanding Urban Shelter Development Challenges | p. 3 |
Demographic framework | p. 3 |
Translating demographic growth into the demand for housing and infrastructure | p. 4 |
Socio-behavioural framework | p. 5 |
Economic framework | p. 5 |
Environmental framework | p. 7 |
Financial framework | p. 7 |
International development aid | p. 7 |
Foreign direct investment | p. 8 |
National public investment in shelter | p. 8 |
Valuing urban assets | p. 8 |
Governance framework | p. 9 |
Mobilizing finance: removing constraints and reducing risks | p. 9 |
Addressing shelter and infrastructure standards | p. 9 |
Constraints to mobilizing resources | p. 10 |
Risks to providers of finance for low-income households | p. 10 |
The Macroeconomic Context of Urban Shelter Development | p. 10 |
Patterns of economic growth | p. 10 |
Sectoral performance and productivity | p. 11 |
Income distribution and inequality | p. 11 |
Poverty and employment | p. 12 |
Savings | p. 13 |
External debt | p. 13 |
Patterns of investment | p. 14 |
Foreign investment | p. 14 |
Public investment | p. 15 |
Private investment | p. 15 |
The impact of external factors on macroeconomic performance | p. 17 |
The urbanization of national economies | p. 17 |
Concluding Remarks | p. 17 |
Notes | p. 18 |
Shelter Policy and Finance: Retrospective Overview | p. 19 |
Context to International Thoughts on Financing for Urban Development | p. 19 |
Trends in Shelter and Municipal Finance Development: 1972-2004 | p. 21 |
Between 1972 and 1982: Habitat I | p. 21 |
The project approach | p. 21 |
Self-help | p. 21 |
Who took part in and benefited from the projects? | p. 22 |
Towards financial sustainability: the 1980s | p. 23 |
Structural adjustment: towards macroeconomic orthodoxy | p. 24 |
The birth of the enabling strategy: the mid 1980s | p. 25 |
Sustainability and the Brown agenda | p. 25 |
Whole-sector development: 1987 onwards | p. 26 |
The Global Strategy for Shelter | p. 26 |
Focus on building institutional capacity to develop housing and urban services | p. 27 |
Finance capital in development | p. 28 |
Globalization of Finance | p. 29 |
The New Millennium: Policies and Organizations in Shelter and Urban Development | p. 30 |
The Habitat Agenda | p. 30 |
Reaching the lowest income groups: community-based finance | p. 30 |
The right to housing | p. 30 |
Concluding Remarks | p. 31 |
Notes | p. 32 |
Financing Urban Development | p. 34 |
Municipal Finance and Urban Development: The Main Issues | p. 34 |
National Municipal Finance Systems | p. 35 |
Sources of Municipal Finance | p. 37 |
Transfers | p. 37 |
Taxes on property and businesses | p. 38 |
User fees | p. 39 |
Betterment taxes and development exactions | p. 40 |
Borrowing | p. 40 |
Short-term borrowing | p. 41 |
Credit enhancement, access to financial institutions and capital markets | p. 41 |
Income-generating enterprises | p. 42 |
Municipal development funds | p. 42 |
Other sources | p. 42 |
Municipal Spending Patterns | p. 43 |
Local government budgeting | p. 43 |
Participatory budgeting | p. 44 |
Multi-year capital budgeting | p. 44 |
Lack of funds for maintaining existing assets | p. 44 |
Managing municipal expenditures | p. 45 |
Accountability and transparency | p. 45 |
Privatization of Municipal Services | p. 47 |
Key features | p. 47 |
Challenges of privatizing urban services | p. 47 |
Joint funding of infrastructure and urban services | p. 48 |
Joint funding of community-based initiatives for the delivery of basic services | p. 48 |
New trends in partnerships for local development | p. 48 |
Summing Up: Assessing the Effectiveness and Impacts of Municipal Finance Systems | p. 49 |
Municipal finance and sustainable urban development | p. 49 |
Municipal finance and the delivery of land and services | p. 49 |
Impact of decentralization upon municipal finance and service delivery | p. 50 |
Impact of privatization upon municipal finance and service delivery | p. 51 |
Notes | p. 51 |
Shelter Finance: Assessment of Trends | |
Mortgage Finance: Institutions and Mechanisms | p. 55 |
Highlights | p. 55 |
Cost of houses and need for mortgage finance | p. 55 |
Mortgage finance and poverty | p. 55 |
Recent Trends | p. 56 |
General trends related to providers | p. 56 |
Sources of finance | p. 58 |
Strengthening secondary markets | p. 59 |
State support for housing finance | p. 61 |
Direct construction and loans | p. 62 |
Taxation-related incentives | p. 63 |
Interest rate subsidies | p. 63 |
Securing stability: insurance and guarantees | p. 64 |
Regional Analysis | p. 65 |
The North | p. 66 |
Transition countries | p. 67 |
The South | p. 69 |
Asia | p. 71 |
Latin America | p. 74 |
Sub-Saharan Africa | p. 75 |
Terms and Conditions | p. 76 |
Loan periods and loan-to-value ratios (LTVs): accessing loans | p. 76 |
Savings | p. 77 |
Interest rates | p. 78 |
Housing Finance, Affordability and Lower Income Households | p. 79 |
The price of housing | p. 79 |
The cost of housing - and the response of supply to increased demand | p. 80 |
The implications for homeownership for the young | p. 80 |
More general problems of affordability | p. 81 |
The continuing problem of informality | p. 83 |
Assessing systemic risks | p. 84 |
Notes | p. 84 |
Financing for Social and Rental Housing | p. 87 |
Conditions and Trends | p. 88 |
State rental housing in the North | p. 88 |
State rental housing in transition countries | p. 90 |
Rental housing in the South | p. 91 |
Social housing and homeownership | p. 91 |
Challenges | p. 95 |
Poor location due to market choice and financial shortage | p. 96 |
Notes | p. 97 |
Small Loans: Shelter Microfinance | p. 98 |
Small Loan Challenges | p. 98 |
Incremental development | p. 99 |
Access to financial services | p. 99 |
Microfinance: what is it? | p. 101 |
The Growth of Microfinance for Shelter | p. 102 |
Links to formal financial agencies | p. 104 |
The microfinance institution (MFI) experience: enterprise to housing loans | p. 105 |
Reasons for expansion of MFIs into housing | p. 106 |
Neighbourhood improvement (slum upgrading) | p. 106 |
Land development | p. 108 |
Other Providers and Sources of Finance | p. 109 |
Sources of capital finance | p. 112 |
Shelter microfinance and subsidies | p. 113 |
Terms and Conditions | p. 113 |
Savings | p. 114 |
Collateral and security | p. 114 |
Interest rates | p. 115 |
Loan periods | p. 115 |
Technical assistance | p. 115 |
Orientation towards women | p. 116 |
Income generation | p. 116 |
Foreseen Challenges | p. 117 |
Affordability | p. 117 |
Securing capital | p. 117 |
Notes | p. 119 |
Community Funds | p. 120 |
What Are Community Funds? | p. 120 |
Trends | p. 122 |
Funding Sources | p. 126 |
Terms and Conditions | p. 129 |
Strengthening collective capacity: savings | p. 129 |
Interest rates | p. 130 |
Collateral and security | p. 131 |
Loan periods | p. 132 |
Technical assistance | p. 132 |
Income generation | p. 133 |
Challenges | p. 133 |
Long-term strategies for continued viability | p. 133 |
The challenge of inclusion | p. 134 |
Notes | p. 135 |
Towards Sustainable Shelter Finance Systems | |
Assessing Shelter Finance Systems | p. 139 |
Affordability and the Difficulties of Reaching the Poor | p. 140 |
The role of finance: relationship-building | p. 142 |
The Role of Mortgage Finance: Access to Capital and the Lack of Loan Finance | p. 142 |
The Bigger Picture and What the Market Cannot Manage | p. 143 |
Financial risks | p. 144 |
The need for local organization | p. 144 |
The issue of urban development | p. 144 |
Connections and Diversity within Globalization | p. 145 |
No global financial flows in housing | p. 145 |
Concluding Remarks | p. 146 |
Notes | p. 146 |
Policy Directions Towards Sustainable Urban Shelter Finance Systems | p. 147 |
Towards Inclusive Urban Infrastructure and Services | p. 148 |
Financing for municipalities and service providers | p. 148 |
Public-sector inadequacy to the task | p. 148 |
Balancing local, provincial and national financing | p. 148 |
Importance of a municipal capital financing fund | p. 149 |
Debt swaps | p. 149 |
Betterment levies | p. 149 |
Improving tax collection | p. 149 |
Strengthening property tax systems | p. 149 |
Adjusting charges for local services | p. 150 |
Improving maintenance to reduce expenditure | p. 150 |
Private finance | p. 150 |
Improving the efficiency of resource use | p. 150 |
Multi-year programmes and budgets | p. 150 |
Participatory budgeting | p. 150 |
Government as creditor of local authorities and service providers | p. 150 |
Eliminating corruption | p. 151 |
Reducing the cost of urban services | p. 151 |
Enhancing households' willingness and ability to pay | p. 151 |
Income and employment | p. 151 |
Reducing transaction costs | p. 151 |
Strengthening the Sustainability and Performance of Shelter Finance Systems | p. 152 |
Reducing housing costs | p. 152 |
Enabling household decision-making through more effective policy | p. 152 |
Addressing the need for rental accommodation | p. 152 |
Contractor financing | p. 153 |
Development of 'developers' | p. 153 |
Reducing financing constraints and risks | p. 153 |
Financing informal development | p. 153 |
Savings and debt | p. 153 |
Improving the accessibility of mortgage finance | p. 154 |
Terms of housing loans | p. 155 |
The price of housing | p. 155 |
Recognizing the need for incremental loans | p. 156 |
Lending based on the idea of housing as a productive good | p. 156 |
Enhancing pro-poor formal housing finance systems | p. 156 |
Subsidies | p. 156 |
Social housing | p. 157 |
Incentives for investment in low-income rental housing | p. 158 |
Small loans and housing microfinance | p. 159 |
The issue of default among low-income borrowers | p. 160 |
Guarantees | p. 160 |
Widening the scope of housing microfinance | p. 160 |
Credit for building materials | p. 160 |
Remittances | p. 160 |
The role of charity in low-income housing | p. 161 |
Strengthening community-based funding mechanisms | p. 161 |
Notes | p. 162 |
Epilogue: Towards Sustainable Urban Shelter | p. 163 |
First Element: Abating Housing Costs | p. 165 |
Capital | p. 165 |
Land | p. 166 |
Infrastructure and land-use planning | p. 166 |
Building materials | p. 166 |
Standards | p. 166 |
Design | p. 167 |
Location | p. 167 |
Modes of production and delivery | p. 167 |
Second Element: Increasing Purchasing Power | p. 168 |
Synergizing the Two: Lower Housing Prices and Higher Incomes | p. 169 |
Capital | p. 169 |
Infrastructure and land-use planning | p. 170 |
Building materials and standards | p. 170 |
Design | p. 170 |
Modes of production | p. 170 |
Formulating and Implementing Urban Shelter Policies: Sheltering the Poor from 'Market Poaching' | p. 170 |
'High-end poaching' in attractive urban locations | p. 170 |
'Residential poaching' in the urban periphery | p. 171 |
'Mortgage finance poaching' | p. 171 |
Political commitment and policy reform as the key to sustainable shelter | p. 171 |
Local engagement in the pursuit of the Millennium Development Goals (MDGs): the Millennium Towns and Cities Campaign | p. 172 |
Concluding Remarks | p. 172 |
Notes | p. 173 |
Statistical Annex | |
Technical Notes | p. 177 |
Explanation of Symbols | p. 177 |
Country Groupings and Statistical Aggregates | p. 177 |
World major groupings | p. 177 |
United Nations Regional Groups | p. 177 |
Countries in the Human Development aggregates | p. 178 |
Countries in the income aggregates | p. 178 |
Sub-regional aggregates | p. 179 |
Nomenclature and Order of Presentation | p. 179 |
Definition of Statistical Terms | p. 180 |
Sources of Data | p. 184 |
Notes | p. 185 |
Data Tables | p. 186 |
Regional Aggregates | p. 186 |
Demographic indicators | p. 186 |
Shelter indicators | p. 187 |
Social indicators | p. 188 |
Country-Level Data | p. 189 |
Urbanization, urban population and urban slum dwellers | p. 189 |
Total and rural population size and rate of change | p. 192 |
Households: Total number and rate of change | p. 195 |
Household's consumption indicators | p. 197 |
Environmental infrastructure | p. 199 |
Basic economic indicators | p. 202 |
Investment in infrastructure and foreign direct investment | p. 204 |
Energy and transport infrastructure | p. 207 |
Social indicators | p. 209 |
City-Level Data | p. 212 |
Urban agglomerations: Population size and rate of change | p. 212 |
Housing and basic services, selected cities | p. 218 |
Urban transport and environment, selected cities | p. 221 |
Social indicators, selected cities | p. 224 |
References | p. 228 |
Index | p. 237 |
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