Slum Upgrading: Cross-Cutting Issues

Cross-Cutting Issues Regarding Slum Upgrading Property Rights and Security of Tenure Secure of tenure, according to Cities Alliance (2014), "is at the very center of slum upgrading." As Cities Alliance further points out, lack of some kind of legal tenure security makes the circumstances of those who reside in slums highly uncertain. This is particularly the case given that evictions could be instituted at any moment.

It is important to note that people are not likely to invest in permanent structures if they fear eviction -- meaning that the structures they put up will be largely shoddy and meant to serve temporary shelter needs. However, once people are assured of the right to keep their homes, they develop "a sense of permanence and realize that they can sell their house and recoup their investment" (Cities Alliance, 2014). Property rights also protect slum dwellers from extortion and exploitation (Cities Alliance, 2014).

End-User Finance for Low Income Housing According to Housing finance and financial inclusion (p. 9) "while the volume of housing finance grew rapidly in many developing countries in the decade up to 2008, the majority of people in these countries do not have access to formal housing finance…" -- an assertion supported by Housing microfinance the state of the practice, who points out that the existing mortgage financing instruments seem to be designed for high income groups. Thus in reality, those living in informal settlements cannot afford housing microloans or mortgages.

This is further confirmed by Ferguson (as cited in Housing finance and financial inclusion) who expresses that in most emerging markets, approximately three-quarters of households cannot afford the least expensive developer-based unit. End-User finance for low income housing could assume diverse formats. For instance, the government could partner with development partners and undertake to construct housing units which would then be delivered to the target residents of informal settlements.

In this case, delivery could be on a cost recovery basis, whereby repayment is tailored to match the rent (monthly) over a specified period of time. Alternatively, a specialized mortgages scheme targeting slum dwellers could be formulated. The criteria adopted for purposes of access to the proposed mortgages could be based on such parameters as the household income. As Housing finance and financial inclusion (p.

25) proposes, "the minimum household income necessary to support the smallest available mortgage can be calculated as the income at which an installment and other housing-related costs can be paid, leaving sufficient income to cover expenditure…." To ease the equation, the government could formulate a well-defined expenditure line that applies nationally for the target group. There is also need to eliminate the various restrictive factors that Housing microfinance the state of the practice cites as being responsible for limiting the uptake of mortgage finance amongst the low income bracket.

Some of the factors cited fall under institutional and structural challenges. Housing Reconstruction after Disaster: Sri Lanka Sri Lanka was one of the countries worst hit by the 2004 tsunami that also devastated countries such as Thailand and Indonesia. According to scaling-up people-centered reconstruction (p. 77), the Owner Driven Programme (ODP), one of the two components of Sri Lanka's post-tsunami reconstruction, "has been successful in reaching large numbers of the affected, and was less time consuming, incurred lower cost per house….

provided higher beneficiary satisfaction and a higher sense of ownership by beneficiaries." Essentially, Sri Lanka has faired quite well with regard to the reconstruction of housing -- an occurrence attributed to the ODP adoption. The program, however, had its own set of unique challenges. For instance, there was the problem of inadequate cash grants, where beneficiaries found the grants provided inadequate. Such, alongside the undertaking's successes, could be used as learning points in seeking to design similar programs.

Lessons learnt in this case have practical application outside of the post-disaster realm. Solutions could be remodeled to help rein in the housing challenge in urban settings. Slum Upgrading Slum upgrading has got to do with the improvement of slums. Its benefits are immense. In addition to promoting inclusion, slum upgrading also enhances and promotes economic.