Ontario Village activities are mainly
supported by Ontario Village inhabitants and it will be additional income
to them. For Building houses and other development activities, local
manpower and local materials will be used. The Community centre will run
programs to develop skills for youth and adults. In addition to that, the
library will run a parallel programs in their human resources centre. OIDA
provide
micro credit or micro loan for
settlers to use their skills bring bread on the table.
Concept of Housing:
The poor, worldwide, resort to all sorts of means to house themselves in
the face of a housing industry and policies that fail to provide them with
affordable options. In the last fifty years, as rural to urban migration
expanded across all regions, the practice of self-help housing resulted in
vast housing settlements which have baffled governments and society. At
times, urbanization itself was put to blame for exacerbating this problem.
However, a better understanding of the long-term urbanization process—and
of its increasing pace in the last century—has shown it to be universal,
unavoidable and even desirable. Also, throughout this period, except for a
few enlightened cases, public policies with respect to these housing
settlements have swayed from open hostility, physical removal, and open
denial, to, at best, piece-meal and reluctant introduction of a few urban
services. Very often, sheltering the poor was looked at as if it were a
problem of insufficient commercial housing supply to be resolved via
complex financing schemes and granting of subsidies. In most cases, such
approaches have proved ineffective. In the last decade, public policies
with respect to the housing settlements of the poor changed significantly.
Increasingly, governments as well as multilateral and bilateral
organizations are learning lessons—on the importance of good governance,
and on allowing housing markets to work unimpeded—as the poor make efforts
to house themselves.
The housing of the poor
Self-help and informality. It is
common knowledge that the vast majority of the urban poor, and indeed the
very poor, live in dire physical conditions, of which vulnerable and
crowded dwellings and a deficiency, or absolute lack of urban services are
the most apparent features. Indeed, the living conditions of the poor are
tough and varied. They may simply live in the streets, sometimes in such
large numbers that communities are formed such as in central Bombay; they
may squat on public land, commons, or land with undefined or disputed
property rights, frequently as permanent solutions, as in the rapidly
expanding cities of most of the developing world; they may settle in legal
or illegal land subdivisions on the peripheries of cities where they
gradually build their houses and may eventually obtain provision of urban
services; they may rent rooms in subdivided formal housing which were
previously inhabited by higher income groups, in the center of large
cities; or they may occupy precariously functioning and large high-rise
housing complexes, conceived and implemented through governmental programs
more common in but not unique to non-market economies, as can be observed
in many large cities of Asia and Latin America. Of the above types,
squatters and peripheral subdivisions constitute the vast majority of
housing for the poor and are frequently termed informal settlements due to
their lack of property titles and their non-conformity to municipal urban
plans, norms, and regulations.
A solution, not a problem.
Despite its physical conditions, the housing of the poor may be seen as an
important expression of human ingenuity and effort, reflecting important
strategies to cope with an environment that is negligent, if not hostile,
to the needs of the poor. These strategies, pursued individually or in
groups, are the means through which the poor, rationally, strive to
fulfill their housing preferences in a least-cost manner, within the
limitations of their budget. Given the prevailing levels of income and
other constraints, informal settlements can therefore be said to be
solutions, not problems.
The housing of the poor is not
static. There is plenty of evidence that gradualism and sweat
equity—the use of their own labor in constructing their houses and
settlements—given time, transform the housing of the poor into acceptable
housing solutions. Markets are quite active in informal settlements;
realtors are not uncommon; renting of smaller spaces or of full houses, is
normal practice. Housing units are frequently bought and sold, though
these carry a discount due to the lack of property titles and the presence
of negative externalities. In fact, there is also evidence that processes
such as gentrification and filtering—the movement of the housing stock
across income groups—which are part of the development of cities
everywhere, are also common to informal settlements. In this sense,
informal settlements tend to emulate the formal city of which they are
part not only physically but also in its social transformations.
Negative externalities. However,
as a number of analysts have pointed out, many informal settlements carry
a number of problems related to the way they were originated and
developed. Squatters chose locations which are environmentally sensitive,
such as the shores of bodies of waters, or risky, such as hilly slopes and
rights-of-way for public services (transmission lines, gas pipelines, or
transport corridors). Also, informal settlements develop in a haphazard
way, without definition of proper rights-of-way for vehicular circulation
and infrastructure. These ubiquitous negative externalities indicate, on
the one hand, the lack of will or power of governments to enforce
environmental legislation and, on the other, the lack of mechanisms of
collective action or the presence of some level of regulation to guide the
development of informal settlements.
The nature of housing policies for the
poor
Learning from the poor. All
formulators of policies increasingly agree that the design of more
appropriate urban policies for the poor requires that a set of elements be
culled from the experience of the poor themselves. This must include the
acknowledgement of the role played by sweat equity; the acceptance of the
gradual nature in which the housing and the settlements of the poor grow,
guided by the changes in family structure and in the short-term
fluctuations and long-term increases in family income; a clearer
definition of property rights; the creation of mechanisms to support
collective action and control externalities; and the creation of
poor-specific financing mechanisms, which take into account the need for
loans of small amount, poor credit records of borrowers, and the
short-term fluctuations of their incomes.
Governance. They also agree that
attention ought to be paid to three basic governance issues: i)
decentralization of responsibilities to local governments; ii)
introduction of private sector participation in the provision of urban
infrastructure; and iii) the increasing participation of civil society in
the definition and implementation of housing policies for the poor.
Finally, most parties would also agree that the role of central
governments remains extremely important in "scaling up" local experiences.
The Cities Alliance is conducting a study in which it evaluates important
"scaling up" efforts that are being attempted in Brazil, Chile, Mexico,
Mauritania, Morocco, South Africa, Tunisia, Thailand, and Vietnam.
A broad and country-specific set of
solutions
There is no single solution to the
problem of providing housing for the poor. Most countries ought to adopt a
number of approaches in order to satisfy different sub-markets; for
example, the segment of households with incomes high enough to jump the
frontier between informality and formality, squatters or slum dwellers who
require the continued gradual improvement of their homes, or new poor
households, whether these be migrants or existing urban dwellers. The
emphases to be given to each of the above will, of course, depend on the
country’s level of income, rate of urbanization and proportion of poor.
Formal housing solutions.
Ideally, the formal, commercial housing sector produces a diverse range of
commercial housing solutions (including land parcels) that respond to the
price demands of all types of households, including the poor. However,
historical experience demonstrates that the range of solutions is, in
fact, very limited. The housing industry operates above both the capacity
and the willingness to pay of the poor (this being one of the reasons why
the poor house themselves).
Measures that contribute to lowering the
average costs of housing production would then permit the poor, at the
margin of the formal housing markets, to jump the frontier of formality to
be served by a supply of low-cost formal, finished housing units. Such an
approach seems to make sense in highly urbanized, middle income countries
with few extremely poor citizens. Chile has lead the world in taking this
approach with a consistent, long-term, and successful formal housing
program which was, more recently, complemented by a set of programs
directed to the informal sector.
Slum and squatter upgrading.
These are measures oriented to the improvement of existing informal
settlements, the so-called upgrading of slums or urban areas. They consist
of a number of initiatives aimed at correcting negative externalities in
these settlements, planning their future growth, providing urban services,
rectifying and/or providing property titles, and providing technical
assistance and micro-credit to improve individual housing units. The
frontier of slum upgrading practice in many countries lies on the methods
and means through which investment and operation costs are to be
recovered, communities are to be involved in the upgrading process and
governments are to finance these actions. Decentralization of
responsibilities and revenues to local governments have played an
important role in making Brazilian municipalities—with little support from
the central government—become an important innovator in terms of slum and
squatter upgrading, with hundreds of small and large experiences being
attempted by municipalities all over the country. Two of the world’s
largest metropolitan area programs of upgrading are currently being
implemented in Brazil: the frequently cited Favela-Bairro, in Rio de
Janeiro, and the Recife Pro-Metropole.
Land policies to promote the access
of land to the poor. Land is the initial step in the gradual process
of self-production of housing. The means by which it is developed or
partitioned and, then, acquired, whether legally or illegally, has
profound consequences for city development in years to come. In most
developing cities, the poor locate either by squatting in public or
private land, or buying land plots in informal subdivisions at the
periphery, as seen in most of Latin America; by negotiating fractions of
lots that are subdivided increasingly, as seen in much of Asia; by buying
second (or third) story roof slabs in existing slums, as again seen in the
large cities of Latin America; and by making use of various governmental
programs of provision of access to land, among them the classical
sites-and-services projects.
All of the above have consequences, both
at the level of the individual families as well as at the level of the
city, which are not completely understood. This makes the proposing of
land policies particularly difficult. However, in general one would think
that the overall desirable policy goal would be to increase the supply of
affordable land with minimum negative structural consequences for city
development. And to do this one would have to resort to the appropriate
use of regulation, land taxation, and local governmental investments. To
begin with, this would rule out invasions and squatting as unacceptable.
It would also suggest that governments should be more lenient with
informal land subdivisions, reducing standards and requirements of
installation of infrastructure accepted here, as well as, the principle of
gradual housing and urban improvement. In such a context, there seems to
be ample possibility of negotiation with local developers, in order to
avoid, via land readjustment practices the worst consequences of this type
of development, such as the coordination of main road layout. A similar
type of reasoning can be applied to cases mentioned above. Finally, one
should say that the current ethos is not sympathetic to making use of
governmental programs, and few are indeed found that are exemplar.
Land policies is an area in which much
and urgent research is needed in order to better clarify important issues.
The following are of particular interest: (i) urban and land regulation;
(ii) expansion of trunk infrastructure; (iii) the concession of financing
and subsidies to land purchase and cost recovery of governmental programs;
(iv) land taxation; and (v) land titling. There are important examples of
such research led by the World Bank in both India and Brazil.