City Development Strategies to Reduce Poverty

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CITY DEVELOPMENTSTRATEGIES TOREDUCEPOVERTY

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© 2004 by the Asian Development BankJune 2004

This publication was prepared under RegionalTechnical Assistance 6026: Promoting Urban PovertyReduction through Participation in the Cities Allianceby the Agriculture, Natural Resources and SocialSectors Division of the Regional Sustainable Devel-opment Department, Asian Development Bank(ADB). The findings, interpretations, and conclusionsexpressed do not necessarily represent the views ofADB or those of its member countries.

ISBN 971-561-503-1

Publication Stock No. 090203

In this publication, the term “country” does notimply on the part of ADB any judgment as to thelegal or other status of any territorial entity.

Please address inquiries for copies of this publicationto the Principal Director, Office of ExternalRelations, Asian Development Bank, P.O. Box 789,0980 Manila, Philippines.

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List of Illustrations ivAbbreviations and Acronyms vFOREWORD viiACKNOWLEDGMENT viii

RESPONDING TO URBAN GROWTH AND POVERTY 1ADB and the Cities Alliance 2Urban Strategy and Poverty Reduction 2ADB’s Involvement in the Cities Alliance 4City Development Strategies 5Cities Without Slums Programs 7

Urban Growth and Poverty in the Region 8Urban Growth in Asia 8Urban Growth and Poverty In India 9Urban Growth and Poverty in the Philippines 11Urban Growth and Poverty in Viet Nam 13

THE CITY DEVELOPMENT STRATEGY PROCESS 16Institutionalizing the City Development Strategy 17The CDS Process 17Outputs of a City Development Strategy 18City Development Strategy Document 18Sustaining Stakeholder Participation 18

Integrating CWS Programs 21Slums Defined 21CWS Program Scope and Links to the CDS 21Potential CWS Program Components 23The CWS Program Document 24

THE CASE STUDIES 25Calicut: Partnerships in Growth and Development 26Process 26State of the City 26Summary of Key Problem Areas 27S-W-O-T Analysis 28Vision and Mission 28Sector Strategies 29Interventions 30Performance Measurement and Monitoring 31Cities Without Slums Program 31Comments 34

Caloocan: Onward Caloocan’s Best 36Process 36State of the City 36Key Problem Areas 37Opportunities 38Vision and Mission 38Major Development Goals 38Development Strategies 38Cities Without Slums Program 39Comments 43

Da Nang: Economic Growth Through a SustainableEnvironment 45Process 45State of the City 45Key Problem Areas 46S-W-O-T Analysis 47Vision, Mission, and Targets 48Development Strategies 49Priority Actions and Implementation 51Comments 51

Quezon City: Working in Partnership with the Citizenry inBuilding a Quality Community 53Process 53State of the City 54Key Problem Areas 55The Vision Equation: QC = Quality City 56S-W-O-T Analysis 57Sector Strategies and Plans 57Plan Implementation 58Poverty Alleviation Through Urban Renewal 59Comments 61

Forward Taguig 63Process 63State of the City 64Key Problem Areas 64S-W-O-T Analysis 65Vision 65Mission 65Monitoring, Evaluation, and Feedback Mechanism 66Cities Without Slums Program 66Comments 68

Contents

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SUMMARY AND CONCLUSIONS 70Lessons Learned 71What Have We Learned So Far? 71CDS and the City 71More Than One Way to Prepare a CDS/CWS Program 72Participation Is the Key 73Poverty Reduction Is the Priority 75Strengthening the Stakeholders 76CDS Should be Proactive and Incentive-Based 76Networking to Form Alliances 77Monitoring Is a Must 77The RETA in Retrospect 77

The Way Forward 79Wrap-Up Meetings with Metro Manila Mayors 79CDS/CWS Program a “Work in Progress” 80Scaling Up the CWS Program 80Need for Continued Assistance 80CA Membership and Follow-on Technical Assistance 80Increasing Donor Collaboration 81Collaboration with the Central Government 81

REFERENCES 82

APPENDIXES 851 Guidelines for Preparing a City Development Strategy2 Guidelines for Preparing a Cities Without Slums Program

LIST OF ILLUSTRATIONSText Boxes1 Key Terms and Definitions2 Poverty Reduction Goals3 Strategic Planning and CDS4 Collective Vision5 Women Participation in Poverty Reduction in

Kerala, India6 Indicators

Figures1 The CDS Process2 CDS Process and Development Planning3 The CDS and CWS Processes Interrelation4 Location of Case Studies on City Development Strategy5 Maps of Calicut City and Kerala State6 Map of Caloocan City7 Map of Da Nang City8 Map of Quezon City9 Institutionalizing CDS in Quezon City10 Distribution of Business Establishments, by

Industry Classification, 200111 Map of TaguigTables1 Low-Cost Housing and Slums Settlement Shelter Plan

for Calicut City, 2003–20202 Priority Impact Projects in Calicut: Area,

Households and Population Covered3 Vacant Lands in Caloocan City, 20024 Current and Projected Population of Caloocan

City, 1990–20105 Informal Settlers in Caloocan City, 20026 Characteristics of the Population of Depressed Areas in

Caloocan City, 20007 Economic Profile of Depressed Areas in Caloocan City,

20008 Housing Needs of Informal Settlements in Caloocan

City9 Actual Land Use in Quezon City, 1995

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Abbreviations and Acronyms

Organizational TermsADB Asian Development BankASEAN Association of Southeast Asian NationsBCDA Bases Conversion Development Authority

(Philippines)BHIT Bonifacio Housing and Information Technology

(Philippines)BSNL Bharat Sanchar Nigam Ltd. (India)CA Cities AllianceCDA Cooperatives Development Authority (Philippines)CDSoc Community Development Society (India)CMC Calicut Municipal Corporation (India)CPDO City Planning and Development Office

(Philippines)CWRDM Centre for Water Resources Development and

Management (India)DILG Department of Interior and Local Government

(Philippines)DOH Department of Health (Philippines)DOJ Department of Justice (Philippines)DOLISA Department of Labor, Invalids, and Social Affairs

(Viet Nam)DOTC Department of Transportation and Communica-

tions (Philippines)DPC Da Nang People’s Committee (Viet Nam)DPI Department of Planning and Investment

(Viet Nam)DPWH Department of Public Works and Highways

(Philippines)DSWD Department of Social Welfare and Development

(Philippines)DWCUA Development of Women and Children in Urban

Areas (India)ESCAP Economic and Social Commission for Asia and

the PacificGTZ Gesellschaft für Technische Zusammenarbeit

[German Technical Cooperation]HOAI Homeowners Association Inc. (Philippines)HLURB Housing and Land Use Regulatory Board

(Philippines)

HUDCC Housing and Urban DevelopmentCoordinating Council (Philippines)

HUDCO Housing and Urban DevelopmentCorporation (India)

JBIC Japan Bank for International CooperationKAMANAVA Kalookan, Malabon, Navotas,

Valenzuela (Philippines)KSEB Kerala State Electricity Board

(India)KUDFC Kerala Urban Development

Finance Corporation (India)KWA Kerala Water Authority (India)LWUA Local Water Utilities Authority

(Philippines)MB Management Board (Viet Nam)MHDO Municipal Housing and

Development Office(Taguig, Philippines)

MMDA Metro Manila DevelopmentAuthority (Philippines)

MMUSP Metro Manila Urban ServicesProject (Philippines)

MOC Ministry of Construction(Viet Nam)

MOLISA Ministry of Labor, Invalids, andSocial Affairs (Viet Nam)

MPI Ministry of Planning andInvestment (Viet Nam)

MWSS Metro Manila Waterworks andSewerage System (Philippines)

NAPC National Anti-PovertyCommission (Philippines)

NATPAC National Transportation Planningand Research Centre (India)

NCR National Capital Region(Philippines)

NEDA National Economic andDevelopment Authority(Philippines)

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NHA National Housing Authority(Philippines)

NHC neighborhood committee(Calicut, India)

NHMFC National Home MortgageFinance Corporation(Philippines)

NIT National Institute of Technology(India)

NSO National Statistics Office(Philippines)

OCZA Office of the City ZoningAdministrator (Philippines)

OECD Organisation for EconomicCo-operation and Development

PCUP Presidential Commission for the Urban Poor(Philippines)

PNR Philippine National RailwaysPRC People’s Republic of ChinaPSC Project Steering Committee (Calicut, India)QC HURA Quezon City Housing and Urban Renewal

Authority (Philippines)SBV State Bank of Viet NamSJSRY Swarna Jayanti Shahari Rozgar Yojana

[Golden Jubilee Urban EmploymentProgram] (India)

TC Technical Committee (Calicut, India)UN United NationsUPAO Urban Poor Affairs Office (Philippines)USEP Urban Slum Eradication Program (India)VAMBAY Valmeeki Ambedkar Avass Yojana [National

Housing Program for Slum Dwellers andUrban Poor] (India)

VSNL Videsh Sanchar Nigam Ltd. (India)

Technical TermsAPIS Annual Poverty Indicators Survey

(Philippines)BOT build-operate-transferBOOT build-operate-own-transferCDS City Development StrategyCMP Community Mortgage Program

(Philippines)CWS Cities Without SlumsFIES Family Income and Expenditure Survey

(Philippines)GDP gross domestic productHDI Human Development IndexIT information technologyLED local economic developmentLOG letter of guaranteeMFI microfinance institutionsMRB medium-rise buildingMTPDP Medium-Term Philippine Development PlanNGO nongovernment organizationPAFs project-affected familiesPCL purchase commitment linePM project managerPO people’s organizationRETA regional technical assistanceS-W-O-T strengths, weaknesses, opportunities, and

threatsTA technical assistanceTOR terms of referenceWBM water-bond macadam

Units of Measurement1 lakh 100,000 (10 x 10,0000) (India)1 crore 10,000,000 (1,000 x 10,000) (India)ha hectare(s)hh householdhu housing unitkg kilogram(s)km kilometer(s)km2 square kilometer(s)kWh kilowatt-hour(s)m meter(s)m2 square meter(s)m3 cubic meter(s)mld million liters per dayµg microgram(s)

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Foreword

The world’s urban population is growing fast. In Asia, 2.2 bil-lion people (one out of two) are expected to live in cities by 2020.Urban centers are also increasing in size and number. Asia nowhas 11 megacities, each with more than 10 million people. Inaddition, hundreds of towns and cities throughout the region havepopulations of 0.5 million to 9 million, and smaller town andcities are peopled by hundreds of millions. Urban centers areimportant to national economies because they are the engines ofeconomic growth and the focal points for important activities liketrade, commerce, industry, and government administration. Cit-ies are centers of excellence for education, health care, technologi-cal innovation, entrepreneurship, and governance. They provideaccess to large markets for goods and services and communica-tion with the rest of the world. Urban centers create opportunitiesfor jobs, employment, and livelihood.

But, despite these advantages, most rapidly growing Asiantowns and cities face significant problems. It is the urban paradoxthat amid the wealth and prosperity generated by towns and citiesa high incidence of urban poverty persists. Urban poverty can beextreme and harsh. The poverty incidence ranges from 15% ofthe population for cities like Bangkok and Manila, to 50% forDhaka. In many cities like Kolkata, Karachi, and Jakarta theincidence ranges from 30% to 35%. Poverty is similarly great inmost secondary cities and small towns throughout the region. In-frastructure is inadequate and dilapidated, particularly for watersupply, sanitation, drainage, and waste management services.Many towns and cities also suffer from poor standards of publichealth and hygiene, a degraded urban environment, the preva-lence of slum housing, severe traffic congestion, poor air qualityand ineffective land management.

To promote safe, livable, well-managed towns and cities thatare free of poverty and fulfill the promise of development, ADBin 2002 joined the Cities Alliance (CA), a global coalition ofcities and their development partners committed to tackling urbanpoverty. ADB also approved a regional technical assistance titled“Promoting Urban Poverty Reduction through Participation inthe Cities Alliance.” The technical assistance developed and in-troduced the concepts and techniques for preparing City Devel-

opment Strategies and Cities Without Slums programs, whichare the cornerstones of the CA approach to poverty reduction.The City Development Strategy (CDS) is a participatory plan-ning process that represents the collective vision of its stakehold-ers for the future development of their city. A Cities WithoutSlums (CWS) program works toward the eradication of slumhousing by upgrading deprived low-income settlements through-out the city. Both techniques encourage the people living andworking in towns and cities to devise their own strategic approachesto meet their basic economic and social development needs, andto create an urban governance system that responds to needs andis accountable for outcomes.

This publication, City Development Strategies to ReducePoverty, sets out the results of the technical assistance, includingguidelines for the preparation of CDS and CWS programs, andsummaries of case studies on the CDS and CWS approachesadopted by five cities1 in three countries. Each participating cityfaces difficulties in providing land security, infrastructure, andbasic services to the poor. The case studies show that there ismore than one way to prepare CDS and CWS programs. Thecase studies also suggest that, for cities to benefit from their com-parative advantages, they must become more efficient, govern well,and establish coherent poverty reduction programs.

The guidelines, case studies, and institutional arrangementsfor the preparation and implementation of CDS and CWS pro-grams are intended as a source of learning about city develop-ment. It is hoped that this publication will contribute to goodgovernance, successful management, and continuing developmentof towns and cities in the region.

1 Calicut, India; Da Nang, Viet Nam; and Caloocan, Quezon City, and Taguig,Philippines.

JAN P. M. VAN HEESWIJK

Director GeneralRegional and Sustainable Development DepartmentAsian Development Bank

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Acknowledgment

The team responsible for this publication was supervised byAllen Williams, Principal Urban Development Specialist, Re-gional and Sustainable Development Department, and com-prised the following consultants: Royston A. C. Brockman,Anthony Faud J. Mann, Avelino Buenafe, and Lydia VictoriaA. de Villa. The technical support team included MaryAnn Asico, editor; Ramiro Cabrera, publications designer;Edwin Pantig and Aurelio Gundran, web and CD-ROMdevelopers. Vergel Latay, Myla Bonto, Nick Angelo Villaluzand Araceli Knaik provided invaluable technical back—upand administrative support. Anna Juico and Herman Ramosprepared the maps. Raul del Rosario and Aimee Siy pro-vided technical advice on the Calicut City video presentation.The team gratefully acknowledges the participation and con-

tribution of many individuals from national and local govern-ment agencies, private sector and nongovernment and com-munity-based organizations in Calicut, India, the cities ofTaguig, Caloocan, and Quezon in the Philippines and DaNang, Viet Nam and the city mayor of San Fernando, LaUnion, Philippines. International organizations includingCityNet, Cities Alliance, GTZ, Habitat for Humanity andUrban Management Programme/UN-Habitat also partici-pated and made valuable contributions. Special thanks alsogoes to ADB staff at resident missions, in particular, to AlexJorgensen, Principal Urban Specialist, Indian Resident Mis-sion; Richard Ondrik, Chief Country Officer, PhilippineCountry Office and William Costin, Principal Project Imple-mentation Specialist, Viet Nam Resident Mission.

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Responding to UrbanGrowth and Poverty

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Urban Strategy andPoverty ReductionADB’s Development GoalPoverty is an unacceptable human condition.

ADB’s overarching goal is the reduction andeventual elimination of poverty throughout the Asia-Pacific region.1 Other ADB strategic developmentobjectives, such as economic growth, human devel-opment, good governance, sound environmentalmanagement, and a better status for women, isbeing pursued in ways that contribute most effec-tively to poverty reduction. This fundamental shiftaffects every aspect of ADB operations.

Defining PovertyDefinitions of what constitutes poverty continue toevolve. Through a series of United Nations (UN)conferences, principally the World Summit on So-cial Development in 1995, the international com-munity agreed on a common set of definitions andtargets for reducing poverty (see Box 1). In 1996,the Organisation for Economic Co-operation andDevelopment (OECD) endorsed seven targets asStrategy 21 goals (see Box 2). These are interna-tional and not regional goals. ADB supported theFifth Asian and Pacific Ministerial Conference in1997, which resulted in a comprehensive set of tar-gets outlined in the Manila Declaration2 for theESCAP3 region (see Box 2). Targets listed in Box2 represent only a portion of the strategies and ob-jectives agreed upon.

ADB and the Cities Alliance

Box 1: Key Terms and Definitions

Key Term Definition

Human poverty The lack of essential human capabilities, notably literacy and nutrition.

Income poverty The lack of sufficient income to meet mini-mum consumption needs.

Absolute poverty The degree of poverty below which theminimal requirements for survival are notbeing met. This is a fixed measure in termsof a minimum calorie requirement plusessential nonfood components. While absolutepoverty is often used interchangeably withextreme poverty, the meaning of the latter mayvary, depending on local interpretations or calcu-lations.

Relative poverty Normally defined in relation to some ratio ofthe absolute poverty line or, as in developedcountries, as a proportion of average income percapita. As a relative measure, it can differ acrosscountries or over time.

Human Development United Nations Development ProgrammeIndex (UNDP) composite of three factors: (i) life

expectancy at birth; (ii) adult literacy, and(iii) income per capita (adjusted for purchas-ing power parity).

Human Poverty UNDP measure of deprivation in basicIndex human development. The variables used to

determine the index are (i) the percentageof people expected to die before age 40;(ii) the percentage of adults who are illiterate;and (iii) overall economic provisioning, interms of the percentage of people withoutaccess to health services and safe water, andthe percentage of underweight children below 5years.

Gender Empowerment UNDP assessment of the level of genderMeasure inequality in key areas of economic and

political participation and decision making.

Source: World Summit on Social Development 1995.

1 For further details of ADB’s Poverty Reduction Strategy go toadb.org/Documents/Policies/Poverty_Reduction.

2 Manila Declaration on “Accelerated Implementation of theAgenda for Action on Social Development in the ESCAP region.”

3 Economic and Social Commission for Asia and the Pacific.

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In addition to considerations of income, em-ployment, and wages, ADB’s definition of povertyincludes the lack of access to basic education, healthcare, water and sanitation, and secure tenure, andexclusion from relevant decision making.

In practice, the most broadly used standard fordefining and measuring poverty is the adequate con-sumption of food and other essentials. This yard-stick will vary between countries, depending onincome, cost of living, and cultural values.

Just as the nature of poverty is diverse, so tooare its causes and victims. The primary responsibil-ity for finding solutions to poverty rests with the in-dividual countries themselves, but success dependson the unified efforts of governments, civil society,and often the international community.

ADB’s Poverty Reduction StrategyADB’s approach to poverty reduction is based onthe premise that any responsive strategy must be suf-ficiently comprehensive to address the many causesof poverty. For this reason the strategy is structuredaround a socially inclusive development process thatcombines sustainable economic growth and social

development with sound macroeconomic manage-ment and good governance.

However, to attain socially inclusive develop-ment, there is a need for a better understanding, ofboth the environmental implications of pro-poorpolicies and the impact of environmental policies onthe poor. These include “brown” issues such as airand water pollution in cities where the poor live inthe worst-affected areas, and “green” issues of de-forestation, depletion of natural resources, and landdegradation.

Key elements of the strategic framework are de-scribed below.

Sustainable Economic GrowthSustainable economic growth is fundamental in thefight against poverty. Economic growth can reducepoverty by generating employment and increasingincomes, especially when linked to more labor-intensive activities. Policies and programs that sup-port economic growth are powerful pro-poormeasures, since they not only have direct employ-ment and income benefits, but can also increase theresources available for other pro-poor initiatives. Key

Strategy 21 Goals

For economic well-being! Reduce by half the proportion of people in

extreme poverty.

For social development! Achieve universal primary education.! Eliminate gender disparities in primary and

secondary education.! Reduce by two thirds the mortality rates for

infants and children under 5 and by threefourths the mortality rates for mothers.

! Provide access to reproductive health servicesfor all females of appropriate age.

For environmental sustainability andregeneration

! Implement national strategies for sustainabledevelopment.

! Reverse the current loss of environmentalresource globally and nationally.

Target Year

2015

20152005

2015

2015

2005

2015

ESCAP1 Goals

! Reduce absolute poverty to half the 1990level.

! Eradicate absolute poverty.

! Ensure at least 80% completion of primaryand secondary education.

! Achieve universal access to basic education.! Equalize participation rates for girls and boys

in primary and secondary education.! Reduce under-5 mortality rates to 45 or less

per 1,000 live births and infant mortality to34 or less.

! Reduce maternal mortality by three fourths.! Halve 1990 rates of malnutrition.

! Formulate plans for poverty-focusedenvironmental protection and conservation,including plans for land and marine manage-ment supportive of local and indigenouscommunities.

! Introduce measures to enforce sound man-agement of toxic wastes.

Target Year

2000

2010

2000

20102005

2015

20152000

As soon aspossible

Box 2: Poverty Reduction Goals

1 Economic and Social Commission for Asia and the Pacific.Source: OECD 1996.

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policy initiatives to promote sustained economicgrowth include those that (i) seek to create a condu-cive environment for private sector investment in allaspects of development, thus reducing the pressureon limited public sector (human and financial) re-sources; (ii) promote local enterprise and self-employment, especially for women and other groupsoutside the formal sector; (iii) support infrastruc-ture and social services development, as a source ofincreased job opportunities as well as the creationof a healthy, more productive workforce; (iv) removemarket distortions such as credit subsidies and im-port/export restrictions; and (v) encourage improvedregional/subregional economic cooperation.

Environmental ManagementEnvironmental considerations are key elements insustainable economic growth. Pressures of popula-tion and poverty often compound the threat of de-forestation and the exploitation of resources. Manyrural poor live in ecologically fragile areas that re-quire sensitive resource management in the face ofincreasing degradation. At the same time the urban

poor are exposed to disease and illness resulting fromovercrowding and degraded living conditions. Ef-fective poverty reduction strategies therefore needto be accompanied by measures that enhance theproductivity and quality of the environment andnatural resources.

Social DevelopmentEconomic growth can effectively reduce poverty onlywhen accompanied by a comprehensive program ofsocial development. In order to be most effective, apoverty reduction strategy should include (i) humancapital development, (ii) a population policy,(iii) removal of gender discrimination, (iv) socialcapital development, and (v) social protection.

Good GovernanceGood governance is critical to poverty reduction asit (i) directly supports participatory pro-poorpolicies, (ii) facilitates sound macroeconomic andpublic expenditure management, (iii) ensures ac-countability and the transparent use of public funds,(iv) encourages the growth of the private sector, (v)promotes effective delivery of public services, and(vi) helps to establish a rule of law.

ADB’s Involvement in theCities AllianceADB is participating in the Cities Alliance (CA)to promote, facilitate, and support improved urbanmanagement; strengthen the impact of urban pov-erty interventions; and enhance networking and co-operation among selected rapidly urbanizing cities.More specifically, a regional technical assistance(RETA) is designed to (i) strengthen the processby which a practical, implementable City Devel-City Devel-City Devel-City Devel-City Devel-opment Strategy (CDS),opment Strategy (CDS),opment Strategy (CDS),opment Strategy (CDS),opment Strategy (CDS), incorporating priori-ties for action, is prepared for each participating city;and (ii) support slum eradication, urban upgrad-ing, and urban regeneration at both city and nation-wide levels, by identifying and formulatinghigh-priority investments in a City Without Slums City Without Slums City Without Slums City Without Slums City Without Slums(CWS) Program(CWS) Program(CWS) Program(CWS) Program(CWS) Program.

These two objectives are clearly interrelated,and when set in the context of the CA, indicate thatissues of slum eradication, urban upgrading, andregeneration—all the elements that make up an

4 ADB. 2002. Promoting Urban Poverty Reduction through Par-ticipation in the Cities Alliance. Manila.

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approach to poverty reduction and form the basisfor formulating a CWS program—will logically beidentified as investment priorities under the CDS.

The implications of this are twofold:! That consideration be given to the commitment

and capacity of local governments to partici-pate in the CA, together with the likelihoodthat poverty reduction is high on the public in-vestment agenda. This has to be anticipatedusing the broadest possible definition of pov-erty to include not only income but also qualityof life, security of tenure, and employment.

! That initial preparatory stages of CWS Pro-gram formulation should be undertaken as anintegral part of the preparatory/analytical stagesfor the CDS. It can be anticipated that as aresult of this process, poverty reduction will beidentified as a key problem area, and the CWSprogram will be prepared as part of the broader(CDS) strategic response.

City DevelopmentStrategiesIncreasingly, national economic growth is being de-termined by what happens in urban areas. Global-ization is strengthening competition among cities asprivate investment seeks to maximize returns withinhighly competitive markets. Decentralization hasmeant additional power and resources to cities andtheir populations, but many urban areas are not wellmanaged and their economies remain uncompetitive.Throughout the world, two scenarios are emerging:one of cities characterized by increasing poverty,social exclusion, and decline amid pockets of splen-dor and wealth; the other of more inclusive citiescharacterized by equitable and sustainable growth,with small but decreasing pockets of poverty.

The rapid transformation within the develop-ing world as its population moves from the ruralareas to urban centers means that government mustrespond to the challenge of urban growth. Nationaland local governments need to be better equippedto manage the transition from central control to adecentralized and market-based provision of services.For cities, the result will be demand-driven urbandevelopment with service providers being directlyaccountable to their consumers, and local govern-ments to their constituents. One outcome of this in-creased accountability is for people living andworking in urban areas to devise strategic develop-ment initiatives to meet their perceived “urban

challenge.” The CDS initiative is an example of thiseffort.

A CDS is an action plan for equitable growthin a city, developed and sustained through publicparticipation to improve the quality of life for allcitizens. The goals include a collective city visionand an action plan to improve governance and man-agement, increasing investments to expand employ-ment and services, and systematic and sustainedprograms to reduce poverty. Although a city is ex-pected to drive the process, local ownership is es-sential. In reality a CDS is a corporate plan for thecity.

A CDS focuses on the process of change, high-lights urban dynamics and opportunities, and adoptsa flexible strategy for responding to economic reali-ties within a competitive environment. It also helpsto build stakeholder capacity to manage a city moreefficiently and to encourage and attract businessesin national and global markets. It does this by en-couraging stakeholder participation and empower-ment. Thinking about the future within a CDSframework often changes the way that a city is man-aged and planned.

A CDS focuses on a city as the unit of analy-sis, much as a corporate plan focuses on a company.A CDS assists a city in improving its contributionto national development. It helps a city to make themost of its strengths and opportunities, determineits future in relation to its vision, and improve itscompetitive position. A CDS focuses on the “bigpicture” that sets the overall direction for the growthof a city on the basis of the views of individuals andstakeholders.

A CDS is defined by the process under whichits outputs (products) are formulated and imple-mented. Past efforts to produce similar, integratedapproaches have often failed because of the lack ofcoordination between implementing agencies, thusleading to conflict and wasted resources. Further-more, past approaches to planning, such as citymaster plans, have been technical and often unre-sponsive to citizens’ views and aspirations. A CDS,as a dynamic process, is very different from the morestatic master planning of the past, in recognition ofthe fact that cities are now better able to respond toopportunities for growth. Decentralization is en-abling cities to have more opportunities for action,and increased demand for representation is open-ing the planning and political process to greaterparticipation and accountability. A CDS is able torespond to these changing circumstances.

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However, a CDS is not a substitute for inte-grated master plans, land use plans, investmentplans, or institutional development plans. These arekey complements of a CDS. A CDS is a strategicvisioning exercise that helps identify goals and di-rections for a city, and helps guide policy decisionsand resource allocation (see Box 3). With agree-ment on a larger vision, often to secure a competi-tive position, cities can plan for land use, transport,and other sectoral needs with a clearer view of pri-orities and the timing of investments.

In summary, the CDS is a participatory pro-cess involving key stakeholders that arrives at theircollective vision of the city’s future. The objectivesand targets that measure the accomplishment of thevision should reflect what people want.

Box 3: Strategic Planning and CDS

Strategy is the rule for making decisions. A strategic plan is a statementabout the future within which we expect to live and work in pursuit of ourvision. A strategic plan indicates how to influence the future, and the goalsand strategies employed to achieve the vision.

A corporate plan relates to the planning of an organization. The plan clarifieswhat is expected, who is responsible for implementation, and what re-sources are needed to achieve the goals. The plan restates the vision of thestrategic plan—where one expects to be in, say, 5 years. But it also definesthe mission—what the organization should do to achieve the vision. Undereach goal, a corporate plan will identify performance indicators, measures,and targets.

Business plans provide the detailed planning outcomes and assumptions forspecific areas or business units (such as water and sewerage, roads anddrainage, community services, or housing). They relate to asset manage-ment and cover issues relating to capital and recurrent expenditures, rev-enues, and debt.

A city development strategy combines strategic and corporate planning for aunit, that is, a city. It represents the statement of rules for making decisionson the development of a city and outlines what is expected, who is respon-sible for implementation, and what resources are needed to achieve thegoals.

Kutcha housing in a fishing village inPallikandi West, Calicut, a priority projectunder the CWS Program

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Cities Without SlumsProgramsBackgroundThe CWS Action Plan was developed in July 1999and launched by Nelson Mandela at the inauguralmeeting of the CA in December 1999.

The CWS initiative has been endorsed inter-nationally at the highest political levels. It is basedon a challenging vision with specific targets to im-prove living conditions among the urban poor, themost vulnerable and marginalized of those living intowns and cities throughout the world. The UNstrongly supports the program and has asked allmember nations to endorse and act on it. The CWSinitiative was subsequently endorsed by heads of stateattending the UN Millennium Summit in Septem-ber 2000, and was reflected in the UN MillenniumDeclaration with the following goal:

By 2020, to have achieved a significant im-provement in the lives of at least 100 million slumdwellers, as proposed in the CWS initiative.

Progress toward the goal will be monitoredmainly in terms of the proportion of people withaccess to secure tenure and improved sanitation. Theunderlying rationale for the focus on slum settlementsis that the vast majority of poor urban householdslive in slum settlements. Subsequent investigationsin each of the five participating cities in the RETAhave shown this to be the case.

What is a CWS Program?The main purpose of the CWS initiative is slum eradi-cation through a process of upgrading. Slum upgrad-ing clearly addresses the legal and environmentalaccomplishments set out as CWS Program accom-plishment indicators (land tenure and sanitation), butit is far more wide-ranging. In addition to physicalimprovements, it includes interventions to bring aboutbetter social, economic, environmental, and governanceconditions within poor urban communities.

The CWS Program therefore potentially in-volves a wide range of interrelated interventions,including the following:! Regularizing security of tenure;! Installing or improving basic infrastructure, such

as water supply, sanitation, garbage collection,access and circulation roads, stormwater drain-age and flood control, electricity supply, secu-rity lighting, and public telephones;

! Removing or mitigating environmental hazards;! Providing incentives for community manage-

ment and maintenance;! Constructing or rehabilitating community

facilities, including health centers, children’snurseries, and public open space;

! Improving houses;! Relocating residents dislocated by the upgrad-

ing process, with appropriate compensation andassistance (although every attempt is made tominimize resettlement);

! Improving access to health care, education, andsocial support programs to address issues such assecurity, violence, and substance and drug abuse;

! Enhancing income-earning opportunitiesthrough skills training and microcredit supportfor small and medium enterprises and livelihooddevelopment;

! Building social capital and the institutionalframework to sustain and further developimprovements; and

! Providing training and incentives for greaterself-reliance and empowerment, and improvedmanagement and organization of communities.Like the CDS process, with which it is so closely

interlinked, the CWS Program depends for its suc-cess on the participation of, and consensus buildingamong, all relevant stakeholders including, in addi-tion to government agencies at all levels, commu-nity groups, private sector interests, NGOs, andother concerned groups.

8

Urban Growth in AsiaUrban Population GrowthIn 1999, the population of the world reached 6 bil-lion people, about 47% of these living in urban ar-eas. By 2020, it is estimated that 57% of the world’spopulation will be living in urban areas.

The urbanization trend started in the developedworld and was largely a result of increased industri-alization. At present about three quarters of thepopulation in developed countries is urban. Indeveloping countries, the percentage of the total popu-lation living in urban areas rose from around 30% in1985 to 40% in 2000. More than 1.5 billion peoplein developing countries currently live in urban ar-eas. By 2020, it is estimated that more than half thepopulation of developing countries will be urban.

In Asia about 38% of the population is nowurban. This will increase to more than 50% by 2015,and there will be a doubling of urban populationbefore 2025.

The rapid growth of the urban population isdue both to natural increase and to the influx ofmigrants from rural areas. In many less-developedcountries, where there is limited population control,natural growth is a key factor. However, some of themost dramatic increases in urban population are incountries like the People’s Republic of China(PRC) where there is strict family planning.Rural-urban transition is also a key factor. The move-ment of workers from rural areas to the towns andcities of the PRC is one of the most extraordinarypatterns of migration in history.

Formation of MegacitiesNot only is the world’s population becomingurban, it is increasingly concentrated in larger townsand cities. At the beginning of the last century therewere only 11 cities in the world with populations ofmore than 1 million. By 2015, the UN predicts,there will be about 360 such cities. More than 150

Urban Growth and Povertyin the Region

9

of these will be in Asia. By 2030 there will be morethan 500 cities in the world with populations of morethan 1 million; more than half of these cities will bein Asia.

Within this general pattern of urban growththere is a growing number of megacities. Megacitiesare defined by the UN as cities with populations ofmore than 10 million. They are formed not only bynatural population growth and immigration but alsoas a result of the physical and administrative mergerof rapidly growing urban settlements into larger met-ropolitan agglomerations.

The number of megacities is increasing through-out the world. According to the UN, in 1985 therewere only 12 such cities, and only 5 of these were inAsia. By 2015, there will be 27 megacities, of which18 will be in Asia.

In theory, the larger concentrations of popula-tion in megacities should benefit from economies ofscale and be easier to manage and service than moredispersed populations. This might be true if therewere adequate resources and capabilities to plan andmanage such cities. However, this is not generallythe case, and in most of the resource-strappedeconomies of the developing world, the rapid growthof megacities has proved difficult to manage. Thepresent rate of urban growth is well beyond any-thing ever experienced before, and urban managersand systems in the developing world have simplybeen overwhelmed.

Not surprisingly, therefore, a recent survey ofAsian cities showed that only three megacities wereranked among the 10 most livable cities in Asia.5 Incontrast, seven of the top-ranked cities weremedium-sized, with populations of 1–3 million people.The lesson probably has less to do with absolute citysize as with the rate of urban growth and the experi-ence and resources available to urban managers.

Urban Poverty in AsiaIn the 1970s, more than half of the population ofthe Asia-Pacific region was poor, average life ex-pectancy was 48 years, and only 40% of the adultpopulation was literate. Today, the percentage ofpoor people has decreased to nearly one third of thepopulation, life expectancy has increased to 65 years,and 70% of adults are literate. Despite an increasein total population to around 3 billion in 2000, thenumber of poor people6 in Asia has fallen fromslightly more than 1 billion to about 900 million.Asia’s poor represent about 70% of the world’s poor.

Nearly one in three Asians is poor. Althoughthe proportion of people below the poverty line isdeclining, trends in poverty reduction haveworsened. South Asia now has more than half abillion poor people. Approximately 450 million ofthese are in India, 225 million in the PRC, and 55million in Southeast Asia. Until recently, trends inpoverty reduction throughout the Asia-Pacificregion had been positive. However, the Asian fi-nancial crisis of 1997 stalled progress and the num-ber of poor people, especially in Southeast Asia,has increased.

Although the large cities of Asia are growingrapidly, and it is forecast that more than 80% ofAsia’s economic growth will be in its urban areas,the reality is that after more than three decades ofrapid economic growth one of the defining charac-teristics of Asia’s cities is poverty: almost 25% ofAsia’s urban population is poor.

Urban Growth and PovertyIn IndiaPopulationIn spite of a declining population growth rate, whichdropped from 24% over the decade 1981–1991 tojust over 21% in 1991–2001, India is now the sec-ond most populous country in the world after thePRC. In the last decade India’s population grewby more than 180 million (more than the popula-tion of Brazil), and by March 2001, its populationhad officially reached 1 billion. If current trendscontinue, estimates are that India’s population willovertake that of the PRC by 2025.

Urban GrowthIn 2001, India’s urban population was estimated at307 million, more than 30% of its total population.This represents a hundredfold increase over the pastcentury, almost a threefold increase over the last 30years, and a 40% increase over the last decade.Urban population growth over the past 4 decadeshas ranged between 36% and 46%. Between 1991and 2001 it was 41%.

Levels of urbanization var y widely.Maharashtra (38.7%), Gujarat (34.4%), and TamilNadu (34.2%) are the most urbanized states; Delhi(92.7%) and Chandigarh (93.6%) are the most

5 Asiaweek. 2000. Asia’s Most Livable Cities Survey, December.

6 Poor people defined in 2000 as those living on less as than $1per day.

10

urbanized cities (union territories), and Dadra andNagar Haveli (8.5%) are the least urbanized.

In 1991, about two thirds of India’s urbanpopulation lived in 300 cities with populations ofmore than 100,000, and about one third of the ur-ban population in cities with populations of morethan 1 million. The number of such cities rose from5 in 1951 to 23 in 2001. By 2015, it is estimatedthat more than 34 cities will have populations above1.5 million, and there will be four megacities(Mumbai, Kolkata, Delhi, and Chennai) with popu-lations in excess of 10 million, the largest beingMumbai, which it is estimated will have a stagger-ing population of 27 million.

Urban areas are increasingly the centers of eco-nomic growth. The contribution of urban areas tonational economic development over the last 50 yearshas more than doubled and in 2001 was 60%. Inthe period 1981–1991, growth in formal employ-ment in urban areas was 38%, as against 16% inrural areas.

In spite of the rapid rise of economic activity inurban areas, massive urban population growth hasresulted in the general deterioration of social andenvironmental conditions in most towns and cities.The demand for essential urban infrastructure andservices has far outstripped supply, and market dis-tortions have resulted in rapidly spiraling land andhousing prices. These conditions have left the ur-ban poor with little choice but to seek informal hous-ing solutions, with the result that slums and squattersettlements in most urban areas have mushroomed.

Present estimates are that about one third of allurban residents live below the poverty line. About15% of these have no access to safe drinking waterand more than half no adequate sanitation. Theseproblems are compounded by poor drainage andthe lack of garbage collection, education, and healthfacilities and services. The lack of education facili-ties has contributed to the continuing high rate ofilliteracy, which in 1997 was 52% nationwide.Increasing levels of traffic congestion and pollutionadd to the list of serious urban environmental prob-lems and the deteriorating quality of life endured byurban residents, especially the poor.

Rapid population growth, poverty, and low in-vestment in housing have also created a serious shel-ter problem in urban areas. The majority of the urbanpoor living in slums lack access to housing financefrom the formal sector. There is an urgent need toexpand the capacity of financing institutions torespond to the need for housing finance for poor

families, especially by developing new approachesto the financing of low-cost housing.

Urban PovertyDespite some progress, poverty remains widespreadthroughout India. Although the proportion of thepopulation living below the poverty line declinedfrom 50% in the 1970s to about 36% by 1995, inabsolute terms the number of India’s poor doubledfrom 164 million in 1951 to 320 million by 1993–1994. Present estimates are that 40% of the ruralpopulation and 33% of the urban population livebelow the poverty line.

Geographically, the poor are mainly concen-trated in the eastern and central parts of the coun-try, with the highest incidence in Bihar, Orissa, andMadhya Pradesh. Poverty is characterized by sub-stantial variations between and within states, andby urban-rural disparities that are widening overtime. Urban poverty in Bihar and Assam wasbetween 2 and 6 times that in Punjab. While urbanpoverty is highly concentrated in a few states, in-cluding Andhra Pradesh, Madhya Pradesh, andRajasthan, the incidence of urban poverty is gener-ally higher in larger cities and metropolitan areas,such as Kolkata and Mumbai.

Government Pro-Poor InitiativesIn recent years, the Government has made efforts toreduce poverty, mainly through self-employmentinitiatives, rural public works, food subsidies andnutrition programs, and increased spending forbasic education and primary health care. Programsaddressing income poverty have been developed thatseek to create individual assets for the urban poorby financing fixed or working capital, providing train-ing, and generating wage employment. However,these programs often suffer from poor targeting andleakage of resources, and in many cases have provedinefficient and ineffective in addressing the needs ofthe poor.

Official estimates of the financial and humanresources needed to address the rapidly deteriorat-ing situation in urban areas go well beyond the bud-getary resources and institutional capacity of central,state, and local governments. As a result, there is agrowing recognition of the need to induce full-scaleprivate sector involvement in urban development.However, this will not take place until the policyand regulatory climate to stimulate private sectorinterest and guarantee adequate returns oninvestments is in place. Tax reforms and a review of

11

user charges are among some of the measures nowbeing investigated, along with various modes ofpublic-private joint ventures, alternative land man-agement approaches, and revenue-raising initiativessuch as municipal bonds.

Increasingly, the definition of poverty is beingexpanded to cover governance, empowerment, andthe ability of the poor to participate in decision mak-ing. The 73rd and 74th amendments to the Consti-tution support increasing devolution of authority andresponsibility from the states to the rural and urbanlocal authorities, as well as the mainstreaming ofthe poor and disadvantaged into the developmentprocess. However, in doing so, recognition is alsogiven to the need for institutional strengthening andcapacity building at the local level. Building a fairand equitable governance system and developmentprocess has thus become a crucial issue of povertyreduction, in addition to the mere provision of physi-cal facilities or social services.

Under the National Housing Policy (1994),the Government aims to increase the access of poorhouseholds to housing and other basic services,integrate poverty reduction and employment oppor-tunities with improved housing, and mobilize addi-tional financial resources by establishing linkagesbetween the formal sector, NGOs, and community-based financing institutions. At the same time, therole of government has been changing from one of

provider to one of facilitator, and the Governmentis promoting increased private sector participation,including foreign investment in the housing sector.

Most infrastructure and service providers in In-dia have traditionally been public sector. The NinthFive-Year Plan (1997–2002) recognizes the needto boost the level of private sector participation andadopt a more commercial approach to the provisionof public services, as part of a move toward betterservice provision and improved levels of urban fi-nancial management. Social development is alsorecognized as a high priority, and about 21% ofpublic sector expenditure is earmarked for educa-tion, literacy, health, and nutrition programs.

Urban Growth and Povertyin the PhilippinesPopulationThe Philippines has one of the highest urbaniza-tion rates in the developing world. Between 1960and 1995, the country’s urban population growthaveraged more than 5% per year and increased fromjust 8 million to 34 million.

By 2000, the population of the Philippines hadrisen to around 78 million, more than half of whomlived in urban areas. With an annual average urbanpopulation growth rate of more than 3%, urban ar-eas are expanding by more than 1 million people

12

every year. Estimates are that by 2010, the urbanpopulation will be 60% of the total, and by 2050,127 million, or more than 80% of all Filipinos.

Urban GrowthApproximately 54% of the country’s urban popu-lation today lives in the “extended” Metro Manilaregion, with 28% in Metro Manila and 26% inthe Central Luzon and Southern Tagalog regions.The population of Cavite and Rizal provinces, bothadjacent to Metro Manila, is growing at 5% annu-ally. This concentration of the urban population isexpected to continue, even as high urban growthcontinues in other emerging metropolitan regions.

High urban population growth has resultedin an increase in urban population densities. In1995, Metro Manila had an average density of14,865 persons per square kilometer (km2); by2000, this had risen to 15,617. Navotas is the mostdensely populated local government area in MetroManila, with 88,617 persons per km2.

In 2002, the National Economic and Devel-opment Authority (NEDA) emphasized that therate of urban population growth is one of the mostimportant factors affecting economic development,employment creation, and the coverage and qual-ity of social services. All of these are essential com-ponents of any pro-poor initiative. Rapidlyincreasing concentrations of urban population rep-resent large markets that are likely to attract newinvestments. The continued population growth andexpansion of Metro Manila, which has already thelargest concentration of consumers in Southeast

Asia, has the potential to attract considerable invest-ment. However, if the deteriorating environmentaland social conditions that now characterize MetroManila are not quickly and effectively dealt with, theywill act as a disincentive to potential investors.

Urban PovertyBetween 1980 and 1990, the Philippines achieveda steady improvement in the social indicators relat-ing to life expectancy, adult literacy, rates of immuni-zation, access to safe drinking water, childmalnutrition, and infant mortality. As a result, thecountry’s rating in the Human Development Index(HDI) rose to 77th place among 174 countries.

There are indications that the incidence of pov-erty throughout the Philippines continued to decreasethroughout the 1990s, although it is still consideredhigh. The World Bank7 reported that in 1999 theincidence of poverty throughout the country was26.3%; however, there are some indications that itmay now be higher, especially after the Asian eco-nomic crisis. A National Statistics Office (NSO)survey8 measuring poverty incidence in terms of foodand nutrition, access to health services, electricity,water, sanitation, shelter, education, and employmentshowed that there had been only minimal improve-ment in the lives of Filipinos in 1999. More than50% of all respondents had not experienced any im-provement over the preceding 12 months, and themajority did not expect to be better off in the shortterm.

Self-assessment and perceptions of the incidenceof poverty show that the minimum acceptable incomethreshold below which households regard themselvesas poor is higher than official estimates. About 60%of all households regard themselves as poor.9 Thislevel has risen considerably over the past 15 years,indicating that self-rated poverty is related not onlyto absolute poverty but also to rising expectations.

By 2000, the urban population of the Philip-pines had increased to 7.5 million households. TheNSO Family Income and Expenditure Survey(FIES) of 2000 indicated that more than 20% (about1.53 million of all urban households) had incomesbelow the poverty threshold of $314.39 per capitaper year. An estimated 3.5 million urban households

Basic infrastructurein informal areas isinsufficient

7 World Bank. 2000. Philippines Poverty Assessment, May.

8 National Statistics Office. 2000. Annual Poverty Indicators Sur-vey, September.

9 Social Weather Station Survey, Manila, 1999.

13

had incomes below the 5th decile, or $632.58 percapita per year.

Although income alone does not define pov-erty, the reality is that a high percentage of income-poor urban households live as informal settlers inslums or squatter areas. The environmental condi-tions in most of these informal and illegal settlementsare characterized by poor-quality housing, over-crowding, inadequate access to basic services, inse-cure tenure, and increased public health risks. Lackof tenure can delay connection to municipal infra-structure services, leading in turn to suppressedproperty values, underutilized capital assets, poorliving conditions, and a high incidence of sickness.Improving access to affordable shelter and formalland tenure would significantly improve living con-ditions in informal settlements and contribute to thegoal of poverty eradication.

Government Pro-Poor InitiativesThe Philippine Government and ADB have agreedthat an effective strategy to reduce poverty in thecountry must be able to address the following lead-ing causes of poverty: (i) the slow creation ofemployment opportunities on account of the ane-mic record of growth; (ii) inequality in the distri-bution of wealth and access to resources; (iii) theinadequate provision of basic social services; and(iv) the lack of effective political participation bythe citizenry, which encourages stopgap measuresrather than fundamental policy reforms with long-term poverty-reducing impact.10

The Medium-Term Philippine DevelopmentPlan (MTPDP) (2001–2004), which envisionsthe elimination of absolute poverty within the de-cade, has been used as the basis for the country’scommitment to poverty reduction. The State of theNation Address of the President spelled out thisgoal in very concrete terms—jobs, education, shel-ter, and food on every table. To attain this goal, theGovernment will endeavor to (i) provide the enablingenvironment for poverty reduction through macro-economic, political, and institutional reforms, includ-ing advancing the peace process; and (ii) undertakeredistributive reform through core programs that willequalize access to economic resources and politicaland social opportunities.

Government pro-poor plans and projects aremostly coordinated by the National Anti-PovertyCommission (NAPC) and the Presidential Com-mission for the Urban Poor (PCUP). NAPC isresponsible for coordinating agencies in addressing

the needs and providing programs and projects withthe 14 sectors of society including the urban poor,the disabled, formal/informal labor, indigenouspeople, youth, senior citizens, women, and children.The commission acts as secretariat and monitors theimplementation of various programs and projects incoordination with agencies like the Housing andUrban Development Coordinating Council(HUDCC) and its shelter agencies, the CooperativesDevelopment Authority (CDA), the Local WaterUtilities Administration (LWUA), the Departmentof Social Welfare and Development (DSWD), andthe Department of the Interior and Local Govern-ment (DILG). The Comprehensive and IntegratedDelivery of Social Services (CIDSS) and the Kapit-Bisig Laban sa Kahirapan (Linking Arms AgainstPoverty) are two of the more popular poverty reduc-tion programs being implemented by DSWD atpresent.

The PCUP, on the other hand, is a coordinat-ing body linking the various agencies of the Gov-ernment that have regular pro-poor programs andprojects. Some of the agencies that it works with,depending on the identified need of the urban poorcommunity, are the Department of Social Servicesand Development (DSDD), the Department ofHealth (DOH), HUDCC and its shelter agencies,and the Department of Justice (DOJ). The PCUPis mandated to coordinate all demolition activitiesaffecting the urban poor, and acts as the HUDCCsecretariat in antisquatting activities.

Urban Growth and Povertyin Viet NamPopulationIn 2000, the urban population of Viet Nam hadreached 20 million, almost 24% of the total popula-tion. The average population density was about 230persons per km2, one of the highest densities in theworld for a country with a primarily agricultural eco-nomic base. In some areas, such as the Red RiverDelta, population densities were more than 1,000people per km2. The national annual populationgrowth rate in Viet Nam is now around 1.5%, butthe urban growth rate is in excess of 2.5%. Govern-ment estimates are that the urban population willhave reached 46 million by 2020, about 45.0% ofthe total.

10 Republic of the Philippines–Asian Development Bank PovertyPartnership Agreement, 10 October 2001, page 2.

14

Urban GrowthThree cities—Ho Chi Minh City (6 million), Hanoi(3 million), and Haiphong (1.7 million)—accountfor 80% of the population living in the 12 citieswith more than 150,000 people. Da Nang, one ofthe cities participating in the RETA, is the fourth-largest city in the country, with a population of740,000.

Viet Nam’s cities suffer the same problemsexperienced by many cities throughout the develop-ing world. Rapid urban growth coupled with aninadequate government response has led to the pro-liferation of unhealthy, poorly ser viced,infrastructure-deficient informal settlements. Landconstraints mean that such settlements are often onpublic or marginal land. It is mostly the urban poorwho are forced to settle in these areas, and who suf-fer most from the prevailing conditions.

Urban PovertyThe incidence of poverty in urban areas of Viet Namis lower than in the country as a whole. In 2000, itwas estimated that there were 265,000 poor urban

households, less than 10% of all poor householdsnationwide.11 However, many other households areextremely vulnerable to unemployment, natural di-sasters, or the death or illness of a family member,which can easily drag them down below the povertyline.

Most of the urban poor are concentrated in thelarge urban areas, in particular in Ho Chi MinhCity, which attracts many in-migrants who are dis-advantaged but not always included in poverty sta-tistics. A high percentage of the urban poor live ininformal settlements with deteriorating environmen-tal conditions and experience a poor quality of life.Apart from high densities, overcrowding, and sub-standard and poorly maintained housing, infrastruc-ture, and social services, informal settlements aremostly unplanned and often encroach into natural

11 See the “new” definition of poverty in the National Target Pov-erty Reduction Program, quoted in the fourth draft of the Compre-hensive Poverty Reduction and Growth Strategy. “Poverty is a situ-ation in which a proportion of population does not enjoy the satisfac-tion of human basic needs that have been recognized by the societydepending on the level of economic and social development and localcustoms and practices.”

15

waterways, and canals. Inadequate drainage meansflooding is often a serious problem. Poor sanitationmeans many toilets discharge directly into drains andcanals, creating highly polluted streams, environmen-tal hazards, and chronic health problems.

Government Pro-Poor InitiativesRural poverty has been the main focus of Govern-ment action to date, and urban poverty reductionprograms so far have been limited both in numberand impact. One of the key problems that needs tobe addressed is the high and increasing rate of in-migration to larger urban areas. The process ofindustrialization and urbanization has increased theinflow of unregistered migrants from rural areas, whoare unable to secure either permanent registration,stable employment or a reliable income. These mi-grants have limited access to social services.

Government generally views slums as an un-sightly blight on a city. Its response, where resourcesare available, is to carry out slum clearance pro-grams and resettle residents in high-rise buildings,often far from their original homes and place of work.Surveys reveal that many poor families who are al-located apartments soon move out since they cannotafford the monthly installments and utility charges.Many of these people return to form new slum settle-ments on other marginal urban land.

The Government’s position of considering slumsettlements as temporary settlements for resettlementhas often made it difficult to carry out on-siteupgrading programs other than on an emergencyservices basis. There appears to be a misconceptionabout the meaning of settlement upgrading, which

is interpreted by some to mean removal and resettle-ment. Nevertheless, some tertiary urban infrastruc-ture improvements are being undertaken at the locallevel. For example, alley improvement programs arecarried out in most cities under the guidance oflocal district or ward officials. These programs in-volve concerned residents, who cooperate to imple-ment improvement schemes. These schemes oftencomprise the provision of improved drainage, pave-ment surfacing, and alley widening, which involvesthe partial dismantling of adjacent structures. How-ever, these urban upgrading schemes are limited inscope and involve legal occupants who do not qualifyas urban poor.

There are a few examples of more comprehen-sive, multisectoral upgrading schemes that have beencarried out on a pilot basis, but mainly with donorsupport. However, there is no official policy atpresent that covers multisectoral urban upgrading,and the fairly rigid structure of local city adminis-trations makes it difficult to mainstream such pro-grams and projects.

A recent study,12 jointly funded by the WorldBank and the Ministry of Construction (MOC),was undertaken to prepare policy recommendationsto the Government in support of improved accessby the urban poor to affordable shelter, infrastruc-ture, and services. The study recommendations willhave some impact on the official stance on slumupgrading.

12 Viet Nam Urban Upgrading Project, Policy Building for Up-grading Infrastructure and Housing for the Urban Poor.

16

The City Development Strategy Process

17

The CDS ProcessCities are the prime drivers of economic growth, andthey need to become the focus of good governmentand the venue for social inclusion and poverty re-duction. The outputs of a City Development Strat-egy (CDS) focus on creating an environment toensure that this happens. A CDS is defined by itsprocess and outputs. The CDS process! Enables the building of trust and relations be-

tween stakeholder groups as a mechanism ofsocial inclusion;

! Builds and improves the capabilities of stake-holder groups to ensure good governance,changes institutional behavior, and creates aninternal institutional ability to guide theeconomy and manage civil society;

! Encourages people to think about the develop-ment of their city differently from the past byenabling a critical mass to think strategically;

! Achieves a coordinated strategic approach to-ward addressing the complexity of development;and

! Precipitates a change in dependency attitudesand behavior among stakeholder groups.The process is shown diagrammatically as Fig-

ure 1 and specific guidelines for each phase are foundin Appendix 1.

The CDS has five stages:Preparation: identification of the drivers of

change and key partners, process management sys-tems, objectives, and work program;

Analysis: baseline information collection, ana-lyzing strengths and weaknesses, consensus build-ing around a common understanding of the city’sproblems and priorities;

Strategy formulation: defining a vision and mis-sion, formulating and evaluating options, identify-ing stakeholder roles, and developing action planswithin an affordable financing framework;

Institutionalizing the CityDevelopment Strategy

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18

Implementation: implementing demonstrationprojects, resource mobilization by stakeholders,agreed investment plans, and donor support. CDSfocuses on monitoring and evaluating progressagainst the vision and mission; and

Consultation: across the above four stages is acontinuous participatory process involving stake-holder group meetings and consultations to arriveat a formal political commitment, agreed vision, anda strategic framework.

Outputs of a CityDevelopment StrategyThese are:! A collective vision and strategy for a city, to act

as the foundation for economic growth and

introduce strategic thinking into city develop-ment, institutional, and financial plans;

! Defined priorities and action plans, to promoteeconomic change and assist stakeholders indetermining development priorities and resolv-ing issues related to intersectoral priorities andinvestment programming;

! Development strategies that promote economicgrowth and address poverty reduction; and

! Defined policies that lead to an improvedinvestment climate.In summary, a CDS should have clearly

defined aims and outputs, be based on an agreed pro-gram logic, incorporate a performance managementand evaluation system, establish effective processes, andfocus on appropriate outcomes and implementingmechanisms (see Box 4). The ultimate goal is for thecity to create the internal institutional and politicalcapacity to innovate and respond to the rapidly chang-ing economic and social realities of today.

City DevelopmentStrategy DocumentIdeally, the CDS should be presented as a sum-mary document, comprising an executive summary(2–3 pages) and a main text (about 20–30 pages).It should contain the following:! State-of-the-city report, covering a summary city

profile, key problem areas, economic base analy-sis, and sector statements;

! Findings of the analysis of strengths, weak-nesses, opportunities, and threats;

! Vision and mission statement, including mea-surable targets or objectives;

! Outline development strategies, including costestimates;

! Action plans and interventions for each strat-egy, including priority projects and programs;and

! Monitoring, evaluation, and feedback mecha-nisms.The relationship between the CDS and the

planning process is presented in Figure 2.

Sustaining StakeholderParticipationSaying Yes to ParticipationGetting the participating cities to accept that man-aging a city is not the sole call of the city mayor wasthe easy part in most cases. Stakeholders were

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Box 4: Collective Vision

The vision for Calicut is to become the regional development center ofMalabar. Caloocan aims to become a progressive and peaceful city. Da Nangaspires to be a type-A city and a center of trade and tourism for central VietNam. The vision for Quezon City is to become a quality city, meaning adynamic, healthy, productive, safe and secure, caring, environment-friendly,and well-governed city. Taguig’s vision is to be a premier city recognized forits quality environment, people-oriented services, and economic opportuni-ties for its residents. These visions represent the common aspirations of themajority of the city residents including the poor.

Figure 2: CDSProcess and Devel-opment Planning

19

identified. Their views were solicited. Opinions ofthe experts were heard. Together the stakeholdersassessed the city’s strengths and weaknesses, re-flected in their aspirations for the city, and formu-lated a shared vision. Carrying on the CDS processthrough strategy formulation, selecting solutions fromvarious options, initiating an action, a program, aproject, or a policy change was the difficult part.

Participation takes time, particularly since theCDS initiative must work within the stakeholders’capacities and initiatives. Moving the CDS processtoo fast would have undermined participation. Par-ticipation requires commitment building. It is a pro-cess that is based on ownership and partnership,and involves consultation, information sharing, de-bate, and empowerment. It is a fundamental ingre-dient of good local governance (Gaventa andValderrama 1999). Through participation, govern-ments become more accountable, responsive, trans-parent, predictable, and effective in deliveringservices.

Time-consuming as it may seem, being ableto participate makes people feel good. It enhancesa sense of ownership. It boosts project performance.Yet sustainability of participation or its outcomes isdifficult.

Developing SustainabilityOne key lesson from the CDS exercise is the criti-cal role of champions in sustaining the process.Those who have a taken the lead in the preparationof a CDS (such as mayors and local governmentheads) should find allies to support the city’s visionand mission. These allies will be in the private sec-tor, in government, in civil society, among the urbanpoor, and even among interested stakeholders whooperate outside city boundaries: donor agencies whomay also provide support. It is the stakeholders’mission to network, form alliances, and enable cham-pions to emerge, make decisions, and drive the pro-cess forward. During the discussions in the FinalRETA Workshop in May 2003, one of the citymayors related how “champions” are developed. Asong about the city’s aspirations was popularizedby schoolchildren to instill in the residents’ mindsthe ideals of their city. Another mayor in MetroManila is planning to develop an audiovisual pre-sentation that will depict the municipality’s vision,mission, and programs in order to mobilize the resi-dents’ support for the city’s programs and seek morechampions.

A change in people’s attitude and behavior isalso necessary to sustain participation. Stakehold-ers must be initiated into the participatory process.Often, a project is designed without factoring instakeholders’ concerns. Stakeholders should be in-volved early on in all other phases of the CDS pro-cess, wherever appropriate.

Based on experience, cities that establish cleartargets, show results, are transparent and respon-sive to the needs of the residents could encouragebetter participation. For instance, matching resultswith targets makes it easier for residents to monitorhow the city performs and thus would encouragethem to participate. Keeping the residents informedis essential to sustaining participation. Developmentgoals or performance targets should be translatedinto monitorable units that are both quantitative andqualitative. Translating the targets into performanceindicators, for example, clarifies the objectives ofmotherhood-type vision statements. Cities maychoose the themes or drivers of the monitoring sys-tem such as customer focus and develop specificperformance targets and indicators to measureprogress and to facilitate sound actions.

In Melbourne, Australia, two sets of prioritieswere developed. One was based on the council’splan and the other was based on the city develop-ment plan to reduce duplication of direction andeffort. The nature of the council’s work relates toaddressing environmental, social, and economic in-equity or other problems of the city, and the internalpriorities are determined by the city government.Examples of performance measures for the munici-pal government are (i) total number of days lost tostaff absenteeism or sickness, (ii) proportion of ratesas a percentage of total revenue, and (iii) total qual-ity of waste generated per year by council facilities.

20

To measure how the development plan or the city’svision/mission achieves its targets, other measures aresurveyed such as (i) number of visitors who feel safein the central business district, (ii) immunization cov-erage rates, (iii) amount of investments coming in, and(iv) percentage of breakdown of municipal wastestream (percent recycled, percent to landfill).

In the case of Kerala, India, the CommunityDevelopment Society (CDSoc) is geared towardeliminating nine risk factors. These factors are mea-surable and can be monitored over time (see Box 5).

The CDS Guidelines (see Appendix 1) givea brief on performance monitoring. ADB’s publica-tion “Urban Indicators for Managing Cities” avail-able at the web site http://www.citiesdatabook.orgincludes a suite of indicators for measuring cities’ per-formance. The development of the indicators sys-tem was based on a study of 18 cities in Asia andthe Pacific that represent different sizes and pat-terns of growth. The study maintains that develop-ing indicators requires capacity building since thecities have insufficient resources. It is essential forcities to start on a manageable scale and, in consul-tation with stakeholders, identify a small number ofmeaningful objectives and indicators that are a pri-ority for them and demonstrate measurable progress.Some of the targets may be easier to measure thanothers. Cities can build on the objectives and indi-cators as their capacity improves. A description ofindicators is contained in Box 6.

Some local governments are “service driven”when it comes to social and infrastructure areas (e.g.,how many police outposts were constructed? howmany vaccinations rather than how many crimes re-sponded to? how many kids get sick with what dis-ease?). These indicators may represent aone-dimensional view and may be collected, butshould later be supplemented with more meaning-ful messages juxtaposing two or more indicators.Over time the cities may adopt new priorities andnew mission targets, and new sets of monitoring in-dicators will be developed. This iterative nature ofthe monitoring process is essential to its success andsustainability.

In the process of improving performance, citieswill measure what they have accomplished in cer-tain areas such as solid waste management or healthdelivery against other cities. The process is calledbenchmarking and is another way to sustain stake-holders’ interest and participation.

Box 6: Indicators

Indicators are the interface of policy and data. Data are usually assembledinto statistics, which often take the form of tables or other partially orga-nized data frameworks. Indicators are usually single numbers, mostly ratios,such as the unemployment rate or the economic growth rate, which permitcomparisons over time and space and have normative and policy implica-tions.

Indicators are not data. They are models simplifying a complex subject intoa few numbers that can be easily grasped and understood by policymakersand the public. They should be user-driven and are generally highly aggre-gated, so that changes or differences in the value of an indicator may bemore important than its absolute level.

Source: ADB. 2001. Cities Data Book: Urban Indicators for Managing Cities. Manila..

Box 5: Women Participation in PovertyReduction in Kerala, India

The Community Development Society (CDSoc) is a successful model ofwomen in development that has now been replicated in 57 towns and 1entire district in Kerala State, which includes Calicut. The CDSoc was orga-nized in 1993 by 10,300 women from poor families, with assistance fromUNICEF and the federal and state governments. Its objective is to improvethe situation of children under 5 and of women 15–45 years. The CDSochas undertaken the planning, resource mobilization, management, imple-mentation, and monitoring of programs and activities to eradicate hunger,malnutrition, and poverty. Poor families were identified by the local commu-nity members through the use of a newly developed poverty index. Thepoverty index is based on the following 10 risk factors, malnutrition and illhealth, illiteracy, unemployment, substandard housing, lack of safe watersupply, lack of sanitation, consumption of two meals or less a day, alcohol-ism, one or more children under the age of 5, and membership in scheduledcastes and tribes.

CDSoc plans to eliminate the 10 risk factors. Examples of their activitiesare: enrollment in literacy programs,school attendance campaigns, income-generating schemes for women, thrift and credit, shelter upgrading, provi-sion of safe drinking water, low-cost household sanitary latrines,immunization; and child care.

The community structure of the CDSoc is organized in a three-tier patternwith neighborhood groups of women consisting of 20–40 poor families, areadevelopment societies at the ward level, and a community developmentsociety at the town level.

The CDSoc has resulted in the empowerment of women and the building ofcommunity leadership. It is a unique example of community-based povertyreduction efforts of women. Since its organization in 1993, CDSoc hasgrown into a large-scale women’s movement with a membership of 357,000poor women from rural and urban areas, covering 20% of poor people inthe state.

Source: http://iisd.ca/50comm/commdb/desc/d33.htm

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Integrating CWS Programs

Slums DefinedThe United Nations has defined slums as

buildings, groups of buildings or areas char-acterized by overcrowding, deterioration,unsanitary conditions or absence of facili-ties or amenities which, because of theseconditions or any of them, endanger thehealth, safety or morals of its inhabitants orthe community.An alternative definition provided by the Gov-

ernment of India describes slumsas any area where such dwellings predomi-nate which by the reason of dilapidation,overcrowding, faulty arrangement ofdesign of buildings, narrowness or faultyarrangement of streets, lack of ventilation,light or sanitary facilities, inadequacy ofopen spaces and community facilities orany combination of these factors, are detri-mental to safety, health or morale.There is therefore a close correlation between

the characteristics that define slum settlements andthose define poverty (see Chapter 1), especially thelack of security and access to basic infrastructureand services. It is clear that in those cities that haveslums, these areas are mostly the domain of the poor.They represent an initiative on the part of the poorto provide for themselves what government or theprivate sector is otherwise unwilling or unable toprovide.

CWS Program Scope andLinks to the CDSA major consideration in the selection of participat-ing CA cities was the need to address pressing is-sues of urbanization and poverty. Poverty reductionis an overriding CDS objective that is reflected inthe identification and development of key CDS sec-tors or themes.

The CWS Program focuses the poverty reduc-tion effort in each participating city on slums andsquatter settlements: after all, these areas are wherethe majority of the urban poor live. Preparing a pov-erty map identifying the various slum and squattersettlements, and comparing baseline physical andsocioeconomic data for these areas with data for theentire city, will serve to confirm this assumption.

The CA identifies secure tenure and improvedsanitation as the principal indicators of CWS Pro-gram accomplishment. The CWS Program there-fore focuses on related legal and environmentalissues, to ensure the provision of secure, servicedhousing for poor urban families. This will beachieved not only through the upgrading of existingslum settlements, but also by (i) resettling house-holds from slums in danger areas, on strategic gov-ernment reservations or private land otherwise

22

committed; and (ii) providing new, affordable ser-viced housing and sites in anticipation of future slumformation. An assessment of low-cost shelter for par-ticipating cities will lead to a plan for achieving this,which will take into account the limited affordabilityof housing for the urban poor, their competingdevelopment priorities, and capacity and financialresource constraints, among others.

The city shelter needs assessment is an impor-tant component of the CWS Program. But theCWS Program must look beyond shelter provisionand address other causes of poverty in slum areas.The CWS Program will need to create the policyframework and conditions that will enable greaterprivate investment and stakeholder participation inslum upgrading. It will also have to (i) stimulateeconomic regeneration to create employment andincome growth; (ii) promote social development andimprove systems of governance and empowermentin poor urban communities; (iii) link local infrastruc-ture and services to wider strategic networks; and(iv) assist in creating a more skilled and productivecommunity through improved public health, educa-tion, and welfare services.

To address all these aspects of poverty reduc-tion, the CWS Program will have to draw upon thestrategies identified in the CDS. In this sense, theCWS Program is a focused application of the CDSto specific communities and conditions, namely, poorurban households in slum settlements.

There is a high level of interdependency be-tween the CDS and the CWS Program. See Fig-ure 3. But because of the urgent need to initiate theslum improvement in the face of continued rapidurban population growth and slum formation, it isessential that, whatever the status of CDS prepara-tions, existing pro-poor initiatives be continued, andthose identified in the CWS Program be started assoon as possible. Priority interventions will be iden-tified as part of a CWS Action Plan drawn up onthe basis of agreed criteria linked to “doability,” theneed to exploit any ongoing or committed pro-poorinitiatives, and prevailing resource constraints. Asthese priority CWS initiatives are being undertaken,the CDS may well need to be further refined andfinalized through research and study in certain keysectors (themes) identified in the course of the CDSpreparation process. Many of these sectors will have

Lalluthan KadavuSlum Settlement inCalicut

23

important poverty reduction/slum upgrading impli-cations that will inform and sustain the longer-termCWS Program.

Details of the proposed guidelines for CWSProgram preparation are given in Appendix 2.

Potential CWS ProgramComponentsThe CWS Program will identify a wide range ofpolicy and program interventions that will help for-mulate and sustain the program over the long term.

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It will also include interrelated project and subprojectcomponents that will address the many causes ofpoverty, such as the following:! Land acquisition: including the subdivision and

titling of land in existing slum settlements or fornew low-cost housing and resettlement sites;

! On-site/off-site civil works: including site prepa-ration (in some instances reclamation), and theupgrading or provision of public infrastructure,services, and facilities;

! Provision of affordable serviced plots and hous-ing;

Figure 3: The CDSand CWS ProcessesInterrelation

24

! Finance and microfinance: to support house orplot purchase, small business enterprise and live-lihood development, and home improvementloans;

! Community training and capacity building pro-grams: to empower and promote greater self-reliance, and to support training for improvedcommunity organization, estate management,and small business/livelihood activities;

! Institutional strengthening of key stakeholdergroups: including training and capacity build-ing of local government agencies, NGOs, andmicrofinance institutions; and

! Education and awareness-raising campaigns:including those directed to the private sector toencourage investment in pro-poor programs,and to communities in relation to HIV, crimeand drugs prevention, and the encouragementof community savings and loan programs.The preparation of CWS Program projects and

subprojects will involve a wide range of activities,including physical, structural, and socioeconomicsurveys; feasibility study preparation including eco-nomic and financial analysis; resettlement actionplans; project/subproject design and implementation;contract documentation; and additional studies andresearch needed for further program/project devel-opment.

The CWS ProgramDocumentThe CWS Program should be presented as a docu-ment that contains the following:! Poverty/Slum Settlement Mapping/Profile:

This will list and locate all slum and squatterareas in the city, and provide key physical andsocioeconomic data for each. This will providethe basis for (i) reconciling the CWS Programobjective of poverty reduction with its slumsettlement focus; (ii) preparing the shelter needsassessment; and (iii) preparing the CWSprogram and action plan including theprioritization and detailing of identified impactprojects and subprojects.

! A Review of the City’s Profile: This will beundertaken on the basis of the data derived fromthe CDS. It will describe existing conditions inthe city, including key physical and socioeco-nomic characteristics that define citywide pov-erty, and lead to a comparative assessment ofrelative poverty in the city with that in slum areas.

! Poverty Sector Overview: This will describeexisting and proposed government and privatesector poverty reduction/slum upgrading poli-cies, programs, and projects, and the activitiesof NGOs, the private sector, and funding agen-cies in the sector.

! Low-Cost Shelter Needs Assessment: This willbe based on the existing backlog and future need(including resettlement) for low-cost housingand infrastructure, and will include (i) upgrad-ing, resettlement, and new housing provision;(ii) social services, livelihood, and employmentneeds; and (iii) an analysis of affordability andresource constraints.

! Cities Without Slums (CWS) Program: Thiswill comprise a phased program of interven-tion over a 10–15-year period linking the out-puts of the shelter needs assessment to resourceavailability. It will incorporate policy and pro-gram interventions to sustain the CWS initia-tive, and projects/subprojects designed toaddress all poverty-related issues in slum settle-ments including economic, social, and gover-nance issues. The CWS Program will includea more detailed phase 1 program of about 3–5years.

! CWS Action Plan (1–3 years): This will iden-tify a range of priority slum upgrading and pov-erty reduction interventions derived from thefirst phase of the CWS Program. These mayinclude policy, program, and project interven-tions, some of which will be defined spatially inexisting slum settlements or identified new low-cost housing sites.

! CWS Impact Projects/Subprojects: These willbe drawn from the action plan, and will be de-signed to (i) maintain poverty reduction/slumimprovement momentum from ongoing govern-ment/private sector initiatives; (ii) maximizeimpact; and (iii) provide a basis for the imple-mentation of the sustained, long-term CWSProgram.

! Potential CA Funding Proposals: These willbe drawn from the CDS or from the CWSProgram and based on CA eligibility criteria.The proposals will support the implementationof the action plan/impact project.

! Monitoring, Evaluation, and Reporting Mecha-nisms: for the performance monitoring of iden-tified action plans and impact project proposals.Guidelines for the preparation of a CWSProgram are contained in Appendix 2.

25

This part summarizes the output of the CDS/CWSprocess in each of the five participating cities. Eachdocument was produced by the cities in close coop-eration with key stakeholders and with the assistanceof the RETA consultants. The texts that follow aresummaries produced by the consultants from theoriginal documents prepared by the city govern-ments. The visions, objectives, problem areas, stra-tegic interventions, and other contents were alldetermined by the cities themselves in various par-

ticipation exercises. The editing, and in some casesthe interpretation, is that of the consultants. Fur-thermore, since the CDS and CWS are continuingprocesses, the summaries reflect work completed atthe end of the RETA period. Changes naturallywill occur as the work-in-progress continues. Theproceedings of the consultation meetings held be-tween July 2002 and May 2003 are found in theaccompanying CD-ROM under ConsultationsHeld.

Figure 4: Location of Case Studies on City Development Strategy

The Case Studies

26

Calicut: Partnerships in Growthand Development

This chapter starts with an outline of the processfollowed by a brief description of the state of thecity, a summary of the key problem areas, and thehighlights of the results of the strengths, weknesses,opportunities and threats (S-W-O-T) analysis un-dertaken. The vision and mission for the city is thenpresented and sector strategies are summarized. Fi-nally a plan for performance measures and moni-toring is discussed. A more detailed CDS asproduced by the city is found in the enclosed CD-ROM under Case Studies.

ProcessThe CDS process started in Calicut in August 2002with the preparation of guidelines and a programfor the plan. A Project Steering Committee (PSC)under the City Mayor and a Technical Committee(TC) under the Deputy Mayor were set up to man-age the process. Stakeholders from the public andprivate sectors, including civil society, were widelyrepresented in the committees. A series of delibera-tions were undertaken at ward and city levels andwith different stakeholder groups between August2002 and January 2003. Fifty-one consultationmeetings were held in the wards. Major stakehold-ers participated in citywide development seminarsand group discussions. The recommendations of theward- and city-level development seminars wereanalyzed and discussed by the PSC, a consensuswas obtained, and a draft of the CDS documentwas prepared. The PSC and TC held joint ses-sions on the draft CDS report and arrived at com-mon priorities for addressing future city development.

State of the CityCalicut City in 2001 had a population of 437,000within the administrative area of the corporation anda further 184,000 in the adjacent rural areas(panchayats) who depend on the city for theirFigure 5: Maps of Calicut City and Kerala State

27

Sector Key Problem Areas

Local economic ! Slow economic growthdevelopment ! Increasing urban poverty, with widespread unemployment and underemployment

! Paucity of skills development facilities! Low levels of private investment! Substandard urban infrastructure services and poor environmental conditions that

combine to act as disincentives for private investment! Competing economic activities in urban outgrowth areas, which lead to the decline

of the city center! Lack of planning perspective

Poverty reduction ! Shortage and poor quality of shelter, basic infrastructure, and public services,including civic amenities, in poor areas and informal settlements

! Shortage of land for low-cost housing! Land tenure issues in the informal settlements! Waterlogging of slum sites during the rainy season! Increasing incidence of crime and violence, addiction to drugs, and high morbidity

rate in poor areas! Health problems stemming from poor environmental conditions! Increased incidence of HIV and AIDS, premature mortality, and high rate of mor-

bidity in poor areas! Starvation among groups like fishermen or slum dwellers! Social exclusion of the poor from decision making! Lack of full-time job opportunities; seasonal, irregular, and part-time employment is

more common! Presence of many unemployed but educated people! Lack of coordination among the agencies tackling poverty! Paucity of investment funds in the public and private sectors, including diminishing

resources of the state government

Infrastructure and ! Irregular supply and poor quality of drinking waterpublic services ! Lack of citywide sewerage and storm water drainage systems

! Inadequate solid waste treatment plant! Inadequate power supply

employment, education, health care, and commer-cial needs. Projections show that the population ofthe corporation area is expected to be 455,000 by2010 and about 476,000 by 2020. The active la-bor force of the corporation area in 2001 was 134,000(117,000 full time and 17,000 part time), represent-ing 31% of the total population. About 15% of thelabor force had part-time and seasonal work, withlabor in-migration from Tamil Nadu state. Femaleworkers represented 16% of the total. Projections showthat the labor force in 2005 will be about 141,000and is likely to reach 148,000 by 2020. Employmentin the organized labor sector is diminishing.

In 2001, the primary sector accounted for 29%of total economic output, the secondary sector 27%,and tertiary activities 44%. Annual economic growthfrom 1991 to 2001 was minimal at about 3.2%.Lack of investments, low productivity especially inthe primary sector, inadequate infrastructure, andthe low level of technology all contributed to the

relative economic stagnation of the city. Local eco-nomic development is driven by tertiary sector ser-vices. The city functions as a trading, education,and administrative center and has some domestictourism potential. The percentage of population liv-ing in poverty is estimated to be 30%. The totalslum population was about 77,000 in 1991 andincreased to 84,000 in 2001. There are 11,000houses in 79 informal settlements, mostly in thecoastal area, covering 387 hectares (ha).

Summary of Key ProblemAreasFive key themes were identified: local economic de-velopment, poverty reduction, infrastructure andpublic services, environmental management andurban governance, and finance and resources. Thekey problem areas for each sector are summarizedbelow.

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S-W-O-T AnalysisStrength Weakness

! Prime location in northern Kerala ! Stagnation of the local economy! Adequate transportation network ! Inadequate sewerage system! Availability of developable land in peri-urban sector ! High unemployment! Longest coast in Kerala ! Shortage of potable water! Considerable greenery and mangroves in the city ! Presence of many slum areas! Trading center ! Inadequate solid waste disposal! Good administrative set-up ! Degradation of Canoli Canal and its associated! Historical city environment! Presence of major educational centers ! Lack of a citywide storm water drainage system! Decentralized administration ! Low rate of women’s participation! Grassroots-level participation ! Lack of coordination among development! Highly skilled manpower agencies

Opportunity Threat

! Considerable tourism potential ! Infrastructure deficiencies! Development of special education areas ! Lack of industrial investment! IT and infrastructure development ! Changing agricultural scenario! External financial assistance ! Competing economic activities in the adjoining! Potential private sector investment in developmental areas

activities! Potential for participatory development activities

! Traffic congestion, lack of road safety, poor quality of road pavements, and majorpublic transport deficiencies

! Inadequate facilities for pre-primary education for children among the deprivedgroup

! Inadequate government-run health service and facilitiesEnvironmental ! Severe flooding during the monsoon seasonmanagement ! High levels of groundwater pollution

! Inadequate sewage treatment and poor sanitation facilities! Deterioration of the Canoli Canal! Inadequate solid waste collection and disposal services! Degradation of wetlands and mangrove swamps! Pollution from vehicle emissions

Urban governance, ! Lack of finances for investment and operation and maintenance of public servicesfinance, and resources ! Lack of experienced and adequately trained municipal staff

! Lack of achievement in monitoring the agreed development goals! Inefficient urban and financial management system, especially in terms of the inter-

face with the public in matters related to rates and tax collections, and theapproval, licensing, and certification processes

! Paucity of funds for urban infrastructure investments


Vision and MissionThe vision for the city of Calicut is “to become acentral place for the regional development of Malabar,the northern part of Kerala State.” The goal is toeradicate poverty and to hasten local economic de-velopment. This can be achieved by funding invest-ments in infrastructure development, improving

slums, creating employment opportunities to increasehousehold incomes, and strengthening partnershipsbetween the government, private sector, and civilsociety. Skills development and improved access toeducation and training is a key priority.

The vision involves the city functioning as thecapital of Malabar and remaining a major tradingcenter. There is a need to develop better marketing

29

channels, improve transport of goods, and furtherdevelop Beypore port. Calicut is the headquartersof Calicut (Kozhikode) district and will continue tobe the administrative and educational center serv-ing northern Kerala. It will become a center forhigher education in management, engineering, hor-ticulture, medicine, and law. Developing informa-tion technology (IT) parks and electronics centerswill play a vital role in the modernization of the city,particularly in Mavoor and Kunnamangalam.

Calicut is a verdant city. Its greenery particu-larly in the Kottooli wetlands and the mangroves isto be retained for the future generations.

Calicut will become a transit point for domes-tic and international tourists with the commission-ing of the Bekkal tourism project and thedevelopment of a north Kerala tourism circuit.Urban architecture, symbiotic with the green envi-ronment of the city, will be promoted.

The long-term goal of the city is to become aclean, healthy, wealthy Calicut.

Sector StrategiesThe vision and key objectives for each sector strat-egy are set out below.

Local Economic Development

VisionThe establishment of a viable and robust economicbase

Objectives! To stimulate greater investment in economic de-

velopment particularly in infrastructure devel-opment, housing, social services, and tourism;

! To substantially reduce present levels of unem-ployment and underemployment by 2020;

! To firmly establish the city as a viable and diver-sified regional trading center, the hub of tourismactivity in the Malabar region, a regional centerfor tertiary education, and a regional center forprivate health care and convalescence by 2020;and

! To develop the outskirts of the corporation into acommercially viable agricultural area specializingin spices, floriculture, and vegetable cultivation.

Interventions! Creating urban investment funds and tapping

different sources including external agencies and

nonresident Indians;! Generating employment through the develop-

ment of the secondary and tertiary sectors;! Reducing poverty;! Developing the skills of the urban working class;! Preparing a city master plan. The master plan

would include the identification of land for resi-dential, commercial, and industrial expansionon the northeastern periphery of Calicut cityand would contain a local economic develop-ment strategy;

! Preparing and implementing projects and pro-grams designed to exploit the tourism industry,IT software parks, retail supermarkets/ware-houses, hotels and food industry, and small-scale industries. Sick industries would berevamped and satellite townships/corridorswould be developed;

! Developing the city as a center for higher edu-cation;

! Strengthening the primary sector in outgrowthareas through increased agricultural productionfocused on the specialized cultivation of spices,floriculture and horticulture, and new agricul-tural products including vanilla, nutmeg, andherbal plants particularly those for ayurvedicmedicine; and

! Making land available for developmental pro-grams.

Poverty Reduction through SlumImprovement

VisionA slum-free Calicut by the year 2020

Objectives! To attain improved security of land and struc-

ture tenure for all existing slum dwellers by2020;

! To improve basic infrastructure and services inall slum sites suitable for upgrading by 2020;

! To improve shelter conditions in slums;! To strengthen and build the capacity of local

NGOs and the community;! To improve human resource capability of the

urban poor! To generate local employment and increase

household incomes;! To improve access to education, health care,

and welfare services for the slum dwellers;! To prevent the further growth of slums;

30

! To facilitate the provision of financial supportto residents of slum communities; and

! To build capacity of the city corporation staffand the members of PSC and TC by 2005.

InterventionsImplementation of a poverty reduction program(2003–2020) comprising:! Expanded coverage of the ongoing poverty

alleviation programs implemented through theUrban Poverty Cell of the corporation with theparticipation of the community and area devel-opment societies and neighborhood communi-ties. The programs include the National SlumDevelopment Program (NSDP), ValmeekiAmbedkar Avass Yojana (VAMBAY),Development of Women and Children in Ur-ban Area (DWCUA), and Urban Self-Employment Program (USEP).

! Strengthening and capacity building of localNGOs, the city corporation, and the membersof the PSC and TC.

Environmental Management

VisionIn the short term (5–10 years), to improve the envi-ronment of the city, and in the long term (15–20

years), to make Calicut the cleanest, greenest, andhealthiest city in Kerala.

ObjectivesBy 2020, to make significant improvements in allaspects of the urban environment and related stan-dards of public health, including the implementa-tion of public health information programs with moreactive public participation.

Infrastructure and Services

VisionBy 2020, to secure access to an internationallyacceptable standard of civic amenities, municipal ser-vices, and urban infrastructure for all citizens of Calicut.

ObjectivesTo facilitate the incremental upgrading and expan-sion of infrastructure and services throughout thecity to an internationally acceptable standard.

Urban Governance, Finance, andResources

VisionBy 2020, to turn Calicut Municipal Corporation(CMC) into a fully committed, efficient, well-organized, resourced, and equipped urban manage-ment organization that is capable of providing first-rate service to its citizens.

Objectives! To significantly improve the level of urban and

financial management by increasing internal rev-enue generation through a simpler tax struc-ture and a more efficient collection system;

! To improve interagency collaboration andcoordination to ensure timely access to plannednational and state funding and attain agreeddevelopment goals and targets;

! To strengthen CMC capability through orga-nizational improvements, streamlining of itsmanagement system, and implementation ofstaff training programs;

! To encourage more representative grass rootsinvolvement and civil society’s participation inthe planning and implementation of the city’sprograms; and

! To attract greater private sector involvement andinvestment in planning and development ini-tiatives.

Representativesfrom various sectorsdiscuss the problemsin Calicut

31

13 Notified slum settlements are the 79 informal settlements identi-fied by the Kerala State Town and Country Planning Departmentin the 1996 Socio-Economic Survey.

Performance Measurementand MonitoringThe output of CDS will be judged by the imple-mentation of programs and projects supporting theselected development approaches, the level of thestakeholders’ commitment to the strategies, and theextent to which the vision/mission is achieved. Aperformance measurement system will be set up andindicators designed to measure performance againsttargets. These will be used to evaluate progress inachieving the vision/mission and the effectivenessof the CDS process. Monitoring will be undertakenfor the city, and for the key themes as expressed inthe specific strategies.

Cities Without SlumsProgramSlum Settlement CharacteristicsIn 1996, Calicut City had 79 “notified”1 3 slumsettlements and 10–15 other slum settlements thatwere “unnotified”. The largest of these slums wasChakkumkadavu with more than 5,000 people. Theslum settlements

! covered an area of about 386 has;! had a population of more than 84,000 people

(about 19% of the total population), compos-ing 11,260 households with an average size of7.46 persons per household;

! had an average gross residential density of 217persons per ha;

! comprised more than 11,000 housing units withan average occupancy of 1.16 households perunit; and

! had about half of all housing units in kutcha(poor), 38% in semi-pucca (satisfactory), and12% in pucca (good) condition. Most struc-tures were exclusively residential.

The generally pleasant coastal environment andclimate, coupled with the limited extent and low den-sities of the city’s slums, means that conditions inthe slums are generally not as depressed as in manyother major cities in India. Nevertheless, conditionsare bad and deteriorating because of poor housingconditions and inadequate drainage and sanitation(40% of all houses have no latrines). Other prob-lems are the lack of a reliable supply of drinkingwater and inadequate power supply (almost 40%of all houses have no electricity).

Links Between Slums Settlementsand PovertyPoverty—the lack of security and income, unem-ployment, illiteracy, and poor living conditions—ismore prevalent in slum settlements than elsewherein the city.

In 2001, about 65% of all poor families in thecity lived in slum settlements. About 41% of thesewere unemployed, 47% had some kind of part-timework, and only 12% had regular work. A high per-centage of the communities were coastal settlementsthat depended heavily on fishing with its low andseasonal incomes.

Literacy rates in slum communities are lowerthan elsewhere. In 2001, the literacy rate amongthe slum population was 74%, lower than the aver-age of 84% for the entire urban area.

Poverty Reduction ProgramsCurrent poverty eradication programs are imple-mented through the system involving community de-velopment societies, 44 area developmentcommittees, and 700 neighborhood committees,which was set up to implement the Swarma JayantiShahari Rozgar Yojana (SJSRY). The followingurban poverty reduction programs are now beingimplemented:! National Slum Development Program

(NSDP);! Valmeeki–Ambedkar Avass Yojana

(VAMBAY); and! SJSRY, which includes components of the De-

velopment of Women and Children in UrbanAreas (DWCUA) and the Urban Slum Eradi-cation Program (USEP).Many families in the slum areas in Calicut live

below the poverty line and are eligible for benefitsunder the various poverty reduction programs of theGovernment. The community development societ-ies therefore have an essential role to play, and theproposed CWS program will be implemented withsuitable integration with their activities. See thedescription of community development societies inBox 5.

The CWS ProgramThe main poverty-related problems and issues to beaddressed by the CWS program are highlighted in

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Chapter 1: Responding to Urban Growth and Pov-erty. The causes and symptoms of poverty includethe following: lack of secure land tenure; poor envi-ronmental conditions and quality of life broughtabout by inadequate housing, infrastructure, andservices; and high unemployment or underemploy-ment resulting from a low level of appropriate skillsand literacy.

The various conditions that define poverty arefound mostly in slum settlements. Poverty can bereduced through a CWS program focused on poorurban communities in slum areas.

Program GoalThe goal is a slum-free Calicut by the year 2020.

Program ObjectivesThe specific objectives of the CWS program arethose defined for poverty reduction as a priority sec-tor in the CDS.

Program Initiatives (2003–2020)To meet the CWS objectives and address the fullrange of poverty-related issues, the proposed inter-ventions relate not only to physical improvements inidentified slum settlements but also to relevant so-cial, economic, and governance issues. The proposedCWS initiatives are classified into the following:! Poverty reduction program designed to

establish a policy and procedural framework tosustain the long-term CWS program, tocomplement and support ongoing povertyreduction initiatives, and to maximize stake-holder participation at all levels to increase thesense of ownership and improve the adminis-trative capability of the corporation in dealingwith poverty alleviation programs.

! Specific project and subproject interventionsdesigned to address poverty-related issues, slumeradication, and the need for affordable low-costshelter in the city and its outskirts.

Poverty Reduction ProgramThe major components of the program are the fol-lowing:! Preparation of a comprehensive slum upgrad-

ing policy for Calicut, including a review of thedraft National Slum Upgrading Policy and itsapplication;

! Expansion of ongoing poverty eradication pro-grams (NSDP, VAMBAY, DWCUA,USEP, and SJSRY);

! Strengthening and capacity building of key in-stitutions involved in poverty reduction and slumeradication;

! Strengthening of women’s participation in pov-erty reduction programs;

! Development of institutions and local bank sup-port for income-generating activities includingskills training, growth-oriented enterprise andlivelihood development, housing finance, andmicrofinance for home improvements;

! Improved education, health care, and welfareservices with an emphasis on preschool and pri-mary health care facilities and systems, maternaland child health care centers in slum areas, recre-ational facilities, counseling centers, rehabilitationcenters, and specific projects for the destitute;

! Support for the awareness campaigns of localNGOs against crime, alcohol and drug abuse,and HIV-related problems, and in support ofhealthy and good behavior and improved foodand nutrition, sanitation, environmental protec-tion, and civic-mindedness;

! Information sharing and dissemination on vari-ous aspects of CDS/CWS program through theCity Corporation’s IT- and community-basedinformation network, community and general pub-lic awareness campaigns, and field visits;

! Strategic planning and programming, includ-ing the formulation of a Metro Calicut devel-opment approach and supporting institutionalframework, master plans in key sectors (includ-ing local economic development), a local shel-ter strategy and program, and projectperformance monitoring and evaluation guide-lines; and

! Preparation of a CWS program operationsmanual, containing data and guidelines for usein the ongoing CWS program and in the prepa-ration of project and subproject interventions.

Project and Subproject InterventionsThe proposed project and subproject interventionsare:! Improvement of security of land and structure

tenure, including the mapping and valuationof slum settlements and vacant developableland, the conduct of topographical, physical,and cadastral surveys, the establishment of ac-quisition procedures and tenure arrangements,and the acquisition of sites according to theCDS and current plans and programs;

! Upgrading or provision of basic infrastructure

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Table 1: Low Cost Housing and Slum Settlement Shelter Plan for Calicut City, 2003–2020

Phase (years) 1 (2003–2005) 2 (2003–2010) 3 (2010–2015) 4 (2016–2020) Total

Slum Settlementsa 3 23 30 23 79Houses and Structuresb 420 3,220 4,200 3,220 11,060House Relocated Because of Upgradingc 85 645 840 645 2,215Houses Remaining After Relocationd 335 2,575 3,360 2,575 8,845New Houses to Replace Kutcha Housinge 165 1,285 1,680 1,290 4,420Semi-pucca Housing to be Renovatedf 125 980 1,275 980 3,360New Housing for Population Growthg 260 310 330 400 1,300Total New Housing (Resettlement + Population Growth)h 345 955 1,170 1,045 3,515Gross Area of New Housing Sites (ha)i 3.45 9.55 11.70 10.45 35.15

Notesa Seventy-nine existing notified slum settlements in Calicut City.b Average of 140 per slum settlement.c Assumed average of 20% of all existing structures in each settlement to be relocated due to upgrading process.d Assumed residual housing after relocation and resettlement.e Fifty percent of all remaining houses are kutcha, for replacement in situ on-site with new housing.f Thirty-eight percent of all remaining houses are semi-pucca, for renovation and repair.g Demand for new low-cost housing. Assumptions: Demand based on 20% of total projected population growth, diminishing average household size from 7 persons in 2003 to 5.5 personsin 2020. Assumed one household per structure.h Total demand for new housing demand formed resulting from resettlement (63%) plus housing for and new population growth (37%).i Assumed gross area per house/plot = 00 m2 per house/lot (60 m2 net residential area + 40 m2 for public open space, roads, etc.).

and services in slum settlements and new low-cost housing sites, including all the necessaryphysical and social infrastructure and facilities;

! Provision of affordable serviced plots and hous-ing in new development sites for new low-income households and relocated squatters;

! Improvement of slum shelters by maximizingself-help and capitalizing on ongoing govern-ment poverty reduction programs andmicrofinance support;

! Development of specific implementing and fund-ing arrangements including institutional roles andresponsibilities, implementation schedules, fund-ing sources, and cost recovery arrangements;

! Establishment of project performance monitor-ing indicators; and

! Training of poor communities, especially theirwomen members.

Scope of the CWS ProgramThe CWS program will cover all 79 notified slumsand other slum-like settlements. New housing sitesmust be found in the city and the neighboring areafor the resettlement of the slum dwellers. The CWSprogram will also be extended to slums in the out-growth panchayats. Most resettlement and new hous-ing sites will be located in these panchayats. Studiesleading to the incorporation of the outgrowthpanchayats and “unnotified” slum settlements willbe part of the proposed CWS program.

Preliminary Local Shelter PlanThe preliminary shelter plan presents estimates ofthe demand for housing, infrastructure, and services

in the Calicut City Corporation area, based on theestimated present population and the projectedpopulation up to 2020. The plan is based only on“notified” slum settlements in Calicut City and thefuture demand for low-income housing, and doesnot consider the backlog or the future demand forall housing. It is intended to provide a frameworkfor prioritizing CWS program initiatives and pre-paring an action plan for pilot interventions. Theshelter plan will be implemented in four phases:Phase 1, from 2003 to 2005; Phase 2, from 2006to 2010; Phase 3, from 2011 to 2015; and Phase4, from 2016 to 2020.

The preliminary shelter plan for Calicut Cityfor 2003–2020 and its main assumptions areshown in Table 1. The plan assumes a steadyincrease in housing delivery over the period, inline with increased institutional capacity and ac-cess to funds.

Priority Impact Projects (2003–2005)The Project Steering Committee (PSC) identifiedthree slum settlements in Calicut City as priorityareas for intervention. These are Kalluthan Kadavu,Pallikkandi (West), and Koyavalappu (Table 2).These settlements will be the focus of CWS sub-project interventions in Phase 1 (2003–2005).

Physical improvements and programs to in-crease income generation by building capacity, im-proving skills, and raising awareness are keycomponents of the action plan for the first phase ofthe proposed CWS program in the three priorityareas.

34

Table 2: Priority Impact Projects in Calicut City: Area, Households, and PopulationCovered

Existing Houses

Kutcha Semi-pucca Pucca

Kalluthan Kadavu 1.20 89 365 89 – –Pallikkandi (West) 2.00 71 524 11 10 50Koyavalappu 30.00 272 2,001 178 42 52

Total 33.20 432 2,890 278 52 102

HHs = households.

PopulationHHsArea (ha)Settlement

CommentsSelection of CalicutCalicut was selected as participating city in the ADBRETA following discussions between central andstate government officials, officials of ADB, and rep-resentatives of the ADB resident mission in NewDelhi. Calicut is in Kerala Province, which is thefocus of several ongoing and proposed ADB inter-ventions, including the proposed Kerala Sustain-able Urban Development Project (PPTA: IND32300-01). After the selection, the City Corpora-tion submitted a formal letter to ADB requestinginclusion of the city in the RETA.

The RETA team made separate visits toCalicut and New Delhi to meet with central Gov-ernment officials. The first visit in July–August 2003involved meetings with state officials, Calicut Cor-poration and Council members, Calicut Develop-ment Authority and other municipal agency officials,NGOs, and the private sector to introduce theRETA. Activities included:! A formal introduction of the Cities Alliance to

the Mayor and the City Council;! A workshop and detailed briefing of key gov-

ernment agencies and representatives ofNGOs, community groups, and businessinterests, at which the groundwork for strategyformulation was laid and a draft vision andmission statement was prepared; and

! Separate meetings with state and local govern-ment agencies, NGOs, and community andbusiness leaders. A PSC was formed; it in-cluded representatives of the corporation, othergovernment departments, NGOs, businessinterests, community groups, and the academe.Agreement was also reached on schedules andworking arrangements, and the counterpart staffto be assigned to the program.The RETA team made a second visit in No

vember 2002, this time to meet with central

Government officials, the CA Regional Adviser inNew Delhi, and the Mayor and representatives ofthe City Corporation and the Steering Group inCalicut. The visit reaffirmed ADB’s commitmentto the CA and followed up on the progress of work.

A third visit of about 3 weeks was carried outin December 2002–January 2003 to assist with theproduction of a draft report on the CDS/CWS pro-gram.

Understanding and Accepting theCA ConceptCorporation and Steering Committee staff mostlyshowed a high degree of technical capability, al-though only a limited number could be made avail-able for CDS/CWS preparation. There was acuteawareness of the problems facing the city, and wideinterest in participation. The state government hasan essential role to play in local affairs, not least ofall because it allocates state plan funds to the cor-poration budget, but the corporation enjoys a highlevel of autonomy in decision making.

Members of the corporation and the SteeringCommittee were generally proficient in the Englishlanguage. Simultaneous translation or interpretationwas nonetheless helpful in understanding the pro-ceedings of workshops and Council meetings.

The need for stakeholder participation inCDS/CWS program preparation was generally ap-preciated. About 50 consultative meetings werereportedly held with various stakeholder interestgroups.

Counterpart TeamThe corporation had limited staff available for full-time involvement in CDS/CWS program prepara-tion. The Steering Committee was involved at keydecision-making junctures of the process, but day-to-day responsibility for CDS/CWS program prepa-ration fell solely on the nominated ProjectCoordinator, the then Deputy City Secretary. TheCoordinator reported regularly to the Mayor andmembers of the corporation and the Steering Com-mittee.

ProgressWhatever the level of internal discussion and coor-dination, it appears that the Project Coordinator,with limited technical support, was almostsinglehandedly responsible for CDS/CWS programdocumentation. This considerable workload, in ad-dition to the Project Coordinator’s other duties,

35

clearly affected the rate of progress. Under the cir-cumstances, the progress made was significant, evenif it was slower than originally expected by ADBand provided for in the agreed work program.

CDS/CWS ProgramPreliminary reports on the CDS/CWS programwere sent to the RETA team for review and com-ment. Although not complete, the reports were gen-erally sound and broadly followed the recommendedguidelines. The team has sent its comments on thereports to Calicut, but has received no response todate. In summary, the comments urged the city gov-ernment to! Describe the process and rationale for the se-

lection of the five key sectors around which theCDS was formulated, and the role of the Steer-ing Committee in the process;

! Provide more comprehensive baseline popula-tion and poverty data for CDS/CWS program

preparation, or suggest ways in which thepresent data could be expanded (possibly withCA funding support);

! Validate population projections drawn up forillustrative purposes and incorporated in thedraft CDS/CWS documents;

! Translate sector statements into broad plans andprograms, with some indication of priorities andestimated costs;

! Complete the descriptions of priority actionplans and impact projects in the CWS programdocument;

! Reexamine and develop the concept of aGreater Calicut planning area, incorporatingoutlying panchayats (possibly with CA fund-ing support); and

! In coordination with the CA office in Delhiand considering the need for an economicdevelopment study, prepare a proposal for pos-sible CA funding.

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Caloocan: OnwardCaloocan’s Best

Figure 6: Map of Caloocan City

ProcessThe initiating workshop in July 2002 and severalmeetings between the RETA team and the staff ofthe city government clearly showed similarities anddifferences between the CDS and a city develop-ment plan.

The technical staff decided that the city’sMedium-Term Development Plan for 2000–2005(MTDP) was to be the basis for its CDS. TheMTDP had been prepared in consultation with rep-resentatives of various sectors, department heads ofthe city government, barangay heads, and represen-tatives of people’s organizations, NGOs, and theprivate sector. In a meeting at the Asian Institute ofTourism in 2000, City Council committee headspresented the recommendations of a report preparedby the technical staff on the plan to about 400 par-ticipants, mostly from Caloocan. A technical com-mittee, composed of staff from the Planning Office,consolidated the comments on the report, revisedthe MTDP, and submitted the revised version tothe Sangguniang Panglungsod (Legislative Coun-cil) in 2001. After several months of deliberations,the Legislative Council approved the revisedMTDP and endorsed it to the Metro Manila De-velopment Authority (MMDA) and the NationalEconomic and Development Authority (NEDA).

A draft CDS report was presented by theMayor in the final workshop on 27 May 2003. Acopy of his presentation is in the attached CD-ROMunder Case Studies.

State of the CityCaloocan City, in the north of Metro Manila, theNational Capital Region (NCR), has a total landarea of 5,333.40 has, and is made up of two non-contiguous parts: North Caloocan (3,970.90 ha)and South Caloocan (1,362.50 ha).

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Table 4: Current and Projected Population of Caloocan City, 1990–2010

Year Caloocan City North Caloocan South Caloocan

1990 761,824 277,635 484,1892000 1,349,044 737,632 611,4122003 1,592,487 928,333 664,1542005 1,778,726 1,074,222 704,5042010 2,345,265 1,518,020 827,245

Table 3: Vacant Lands in Caloocan City, 2002

Ownership Area (ha) Percentageof Total

National Government 3,285.91 61.61Danger Zones 1,088.01 20.40Local government 196.80 3.69Right-of-wayPrivate 762.68 14.30

Total 5,333.40 100.00

Source: ADB TA 3760-PHI: Metro Manila Urban Services for the PoorProject, 2002.

In 2000, the city had a population of about1.18 million. The population increased by 3.06%a year, on the average, between 1995 and 2000. Inthe last 10 years, the increase in population has beenmore rapid in North Caloocan, where about 52%of the city’s population now lives. The city’s popu-lation is projected to reach about 1.59 million by2010, and about 1.87 million by 2017.

Most of the high-density commercial and resi-dential activity in the city is concentrated in the south,which has a population density of about 428 per-sons per ha. In 2002, about 63% of the land inSouth Caloocan was residential, 11% industrial, and7% commercial. North Caloocan, in contrast, is stillrelatively undeveloped. In 2002, only 46% of theland in North Caloocan was residential, and lessthan 5% commercial and industrial; 36% was stillvacant land.

The CDS envisages a shift in urban develop-ment emphasis from South Caloocan toward NorthCaloocan, mainly because of the relatively low popu-lation density and the large area of vacant land inthe north. However, this development strategy willentail close cooperation with the national Govern-ment, which owns more than 60% of all vacant landin the city (Table 3).

Tables 3 and 4 summarize the land use andpopulation distribution in the city.

The city had a young population, with 36%aged below 14 and about 2% 65 years and over in1995. There were 61 dependents for every 100persons in 1995.

In 1989, simple literacy (the ability to read anda write a simple message in any language or dialect)in the city was 98% while functional literacy (in-cluding mathematical skills) was 91%. In 1995,about 33% of the population had at least a second-ary education.

Key Problem AreasPoverty and Unemployment! In 2000, 23.13% of the work force was unem-

ployed—84,000 more than the 1997 level of45,000 unemployed.

! In 2000, 33.5% (84,000 households) of allhouseholds were below the poverty threshold.14

! Savings rate per family dropped from 26% in1991 to 16% in 1997, indicating the increasedcost of living.

Social Services! There is one classroom for every 112 public

elementary school students.! There is one hospital bed for every 2,124

people.

Institutional Issues! Roles are unclearly defined.! Coordination among government agencies is

weak.! There is a lack of technical and administrative

capability.! The general public hardly participates in de-

velopment.! Political boundaries are under dispute.

Drainage and Flooding! About 23 has of the land area is flood-prone.! Rapid and unplanned land development in

North Caloocan has paved forested and othergreen areas with concrete and othernonpermeable materials.

! Reclamation blockage15 and the conversion ofnatural streams into underground drainage16

has resulted in the loss of natural waterways.

14 The threshold monthly income estimated at $200 in 2000, is theminimum amount required to meet all the nutrition and other needsof a household with 6 members. 15 First Consultative Meeting, Metro Manila Flood Control Pro-gram. MMDA, 17 August 1999.16 Ibid.

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Solid Waste Management! Caloocan City generated more than 614 met-

ric tons of solid waste in 1995.! In 1995, only about 62% of garbage was col-

lected daily; 38% was dumped in rivers, roads,and open spaces, or recovered by scavengers.

Housing Backlog and Urban Blight! In 2002, informal settlements had a housing

backlog of about 43,100 units. Of these, about5,600 were in danger zones and governmentreservations, and about 37,500 were poten-tially upgradable units on government or pri-vate land (see Table 3).

! The household occupancy ratio in informal settle-ments is about 1.28 households per unit, versusthe desired level of 1.05 households per unit.

Opportunities! Nineteen percent of the land is available for

new urban development (slope of 0–3%).! New transportation projects: - Four railway projects (two in the pipeline); - Manila–Clark Rapid Rail Project; - Manila–Calamba Commuter System (South

Rail); upgrading; - Extension of two circumferential roads; - C-3 Road and C-4 Road connection; - Development of two highways; - Extension of Mindanao Avenue; and - Skyway 2 Project, above grade of C-3 Road.! Upgrading of the urban core in South

Caloocan and development of new subcentersin North Caloocan.

! Renewal of shopping areas in South Caloocan.

Vision and MissionVision: Onward Caloocan’s BestThe city envisions itself to be a self-reliant, progres-sive, peaceful, and orderly city, with South Caloocansuccessfully transformed into a commercial and fi-nancial hub, and North Caloocan into a bustlingindustrial center serving the northwestern part ofMetro Manila.

MissionThe city’s mission is to build a responsible commu-nity of people who! respect one another’s dignity and uniqueness,

and the diversity of the citizenry;

! respect their common historical and culturalheritage;

! responsibly use their environment and finite re-sources;

! are self-reliant, healthy, and educated, and areconcerned with the well-being of their fellowmen;

! have equal access to socioeconomic opportuni-ties and public resources; and

! have compassion, especially for those who haveless in life.

Major Development Goals! Reduce poverty and unemployment;! Facilitate the provision of adequate social and

economic infrastructure services;! Promote a livable urban environment; and! Upgrade the capacity of local institutions.

Development StrategiesFive priority themes were identified: economic de-velopment, trade and industry, labor and employ-ment, housing, and health. Summary strategiesunder each theme are shown below:

Economic Development! Develop South Caloocan into a financial cen-

ter for the northern parts of Metro Manila andRegion 3;

! Establish industrial estates in North Caloocan;and

! Increase the incomes of the urban poor througheffective livelihood programs and projects.

Trade and Industry! Develop an investor-friendly registration sys-

tem for businesses;! Promote private sector participation in eco-

nomic development;! Provide investors with investment guidelines;! Coordinate with national agencies in develop-

ing industries concerned with export potential(garment and furniture);

! Provide tax incentives for investors;! Establish an effective system for monitoring the

accomplishment of economic programs andprojects of the local government; and

! Develop growth points that are conducive tocommercial and industrial development.

39

Labor and Employment! Implement training programs based on demand

identified by the Technical Education and SkillsDevelopment Authority;

! Improve the efficiency of job placement pro-grams and projects of the Public EmploymentService Office and private enterprises; and

! Establish an industrial peace mechanism forbarangays, the local government, the private sec-tor, and the Department of Labor and Employ-ment.

Housing Development Policiesand Strategies! Promote equitable access to housing services

for underprivileged and homeless constituents;! Provide security of tenure to legitimate benefi-

ciaries and protect the welfare of small land-owners; and

! Improve the capability of stakeholders to un-dertake housing programs and projects.

Health Development Policiesand Strategies! Construct, rehabilitate, and upgrade sanitation

and health facilities;! Coordinate with agencies of the national Gov-

ernment in the provision of additional healthpersonnel, health facilities, and medical equip-ment;

! Strengthen the health service capability ofhealth personnel, including community volun-teers and barangay health workers; and

! Promote and strengthen community participa-tion in health and nutrition activities and sus-tain people’s awareness through intensifiedadvocacy and information, education, and com-munication campaigns.

Cities Without SlumsProgramIntroductionThe city government is implementing an integratedand comprehensive urban and housing developmentprogram throughout the city to deal with the prob-lem of increasing urban blight and ultimately reducepoverty. The city’s report on its CWS Program (inthe accompanying CD-ROM), prepared in coor-dination with the City Local Housing and UrbanDevelopment Board and in consultation with theRETA team, seeks to provide low- and middle-

income families with the opportunity to acquire de-cent housing at affordable cost.

Informal SettlementsThe population has increased steadily in recentyears, partly because of natural population growth,but also because of in-migration from the followingsources:! Rural migrants drawn by the economic oppor-

tunities in Metro Manila;! Informal settlers from neighboring cities in

Metro Manila relocating to National HousingAuthority (NHA) resettlement sites such asBagong Silang, Bagong Barrio, and Dagat-Dagatan; and

! Migrants from overcrowded neighboring citiesin Metro Manila, moving especially to NorthCaloocan.The city has become a favored entry and tran-

sit point for migrants. Many families have settled inCaloocan because of its strategic location and prox-imity to their places of work. Informal settlementshave formed along waterways, railroad tracks, andidle government and private lands (see Table 5).These areas are blighted and poorly served. Mosthave inadequate supply of water and no propermeans of disposing of sewage and storm water, wors-ening problems of sanitation and flooding, and re-sulting in deplorable living conditions for theresidents. As of July 2002, there were about 55,221slum and squatter families in Caloocan. Almost twothirds of them were on government land (Table 5).

In 2000, about 22% of the city’s populationlived in depressed areas and informal settlements(Table 6). Unemployment and underemploymentwere higher in these areas than elsewhere in the city(Table 7). Poverty, brought about by unemployment,is one of the main factors contributing to the increase

Table 5: Informal Settlers in Caloocan City, 2002

Depressed Area/Location No. of Families Percentage of Total

A. Danger Area1. Waterways 1,883 3.412. Railroad Tracks 1,200 2.17

Subtotal 3,083 5.58B. Government Infrastructure

1. Road Right-of-Way 3,196 5.792. Public Utilities 899 1.63

Subtotal 4,095 7.42C. Government-Owned Land 34,895 63.19D. Private Land 13,148 23.81

Total 55,221 100.00

Source: Urban Poor Affairs Office, and Office of the Mayor.

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Table 7: Economic Profile of Depressed Areas in Caloocan City, 2000

Employment/Livelihood Caloocan City Depressed Areas (%)

Employed (% of labor force) 82.0 60.8Part-time Employed n.a. 9.5Unemployed 18.0 39.3

Source: ADB. 2002. Metro Manila Urban Services for the Poor Project. Manila.n.a. = not available.

in informal settlements. Other factors include thefollowing:! Increase in the number of poor urban house-

holds through natural growth and in-migration;! Lack of affordable housing and housing sites;! Availability of vacant and idle government and

private land, especially in North Caloocan;! Presence of government resettlement and relo-

cation sites in the city;! Weak monitoring and enforcement of housing

laws and ordinances;! Presence of squatting syndicates; and! Land disputes and conflicting claims, which

hamper land development.

Socialized Housing Programs of theCity GovernmentA shelter program launched by the national Gov-ernment pools the resources of all shelter agenciesto meet the needs of the poorest 40% of the popula-tion. Under the Medium-Term Philippine Devel-opment Plan for Shelter (1999–2004) the housingsector targets the provision of shelter security to 1.2million households for the period 2001–2004. Thecity government of Caloocan, for its part, has imple-mented the following programs to address the shel-ter needs of the city’s homeless and low-salariedconstituents:! In coordination with NHA, relocation to gov-

ernment resettlement sites of informal settlersoccupying danger areas and sites earmarked forgovernment infrastructure projects.

! Legalization of the land tenure status of infor-mal settler families occupying private proper-ties through the Community Mortgage Program(CMP). Completed and ongoing projects ben-efit almost 400 families.

! Relocation to resettlement sites through theCMP of informal settlers scheduled for evic-tion through court order or from governmentprojects.

! Awarding of disposable lots in the city-ownedCamarin 1 and 2 projects. About 400 familiesare expected to receive lots in the projects.

! Expropriation of private properties identifiedas socialized housing sites by the city govern-ment. The expropriation is expected to benefitabout 1,800 families.

! City Employees Housing Program, in coordi-nation with the NHA. The potential benefi-ciaries number more than 400 families.

Key IssuesTo improve the quality of life of poor urban commu-nities in slum settlements, the following key issuesneed to be addressed:! Poverty and unemployment,! Lack or poor quality of education and skills

training,! Lack or substandard quality of physical and

social infrastructure and services,! Growing backlog of housing,! Environmental pollution,! Poor garbage disposal,! Traffic congestion,! Flooding and drainage problems, and! Underdevelopment of prime urban land.

Addressing the housing backlog, and the deep-ening urban blight, requires policy reforms. Thesereforms pertain to the following:! Local fund sourcing for socialized housing;! Access by the urban poor and the informal sec-

tor to housing loans, credit, and microfinance;! Acquisition and disposition of land for social-

ized housing that meets the needs and economiccondition of the beneficiaries;

! Active participation of people’s organizations(POs) and NGOs in the drafting of laws andordinances, programs, and plans of action forsocialized housing for the urban poor;

! Stricter enforcement of housing andantisquatting laws and ordinances, especiallyagainst squatting syndicates; and

! Land titling.

Table 6: Characteristics of the Population of Depressed Areas in Caloocan City , 2000

Caloocan City-Wide Depressed Areas

Population 1,177,604 306,177No. of Households 249,567 54,966Average Household size 4.72 5.57Percentage of Households in Depressed Areas 22.02Area (ha) 5,333.4 1,026.0Gross Density (persons/ha) 220.8 298.4

Source: ADB. 2002. Metro Manila Urban Services for the Poor Project. Manila.

41

Low-Cost Shelter and SlumUpgrading Strategy

VisionCaloocan City envisions itself as becoming a slum-free, ecologically sound, clean, and progressive city.

MissionThe city has set for itself the mission of uplifting theliving conditions of its urban poor by providing themwith decent shelter through socialized housing, withaccess to basic services and a share in the benefits ofprogress and development.

Objectives! Formulate a 15-year strategy for the city that

will address the housing backlog and providedecent and affordable housing to low-salariedresidents and urban poor families eligible for

such housing under Section 16, Article V, ofRA 7279 Urban Development and HousingAuthority (UDHA);

! Encourage private sector participation insocialized housing by fostering joint venturesand partnerships between the city government,the corporate sector, and the target beneficiaries;

! Transform the city’s housing sites from theirunderused state into environmentally sound,responsive, and productive communities with theactive participation of the affected families; and

! Raise the standard of living of the city’s hous-ing beneficiaries.

Present and Future Housing NeedsIn 2002, there were 316,634 households occupy-ing 247,430 housing units in Caloocan, for an oc-cupancy ratio of 1.28 households per housing unit.This ratio is expected to increase to 1.30 by 2005

Table 8: Housing Needs of Informal Settlements in Caloocan City

Existing Conditions Housing Need(2002)a (2002–2017)b

No. of HHs Housing Units Units to be Units thatUpgraded Cannot beOn-Site Upgraded

Total Units that Cannot be UpgradedDanger Zones 3,083 2,409 2,936 0 2,936Government HHs to be resettledInfrastructure 4,095 3,199 3,900 0 3,900 at 1.05 HHs/unitProjects/RoadRight-of-Way Total 7,178 5,608 6,836 0 6,836c All housing units to

be replaced

Total Units that Can be Upgradedd 80% to beupgraded on-site

20% to bedisplaced

Government Land 34,895 27,261 33,234 21,809 11,425Private Land 13,148 10,272 12,522 8,218 4,304Total Backlog 55,221 43,141 52,592 30,027 22,565(as of 2002)

Future Housing Needs due to Growth of Informal Settlers (2017)e

No. of HHs/ 32,064 0 30,537 0 30,537Housing Units

TOTAL HOUSING 87,285 43,141 83,129 30,027 53,102NEED

Source: Caloocan City Planning and Development Office/Urban Poor Affairs Office.HHs = households.a Assumed average occupancy of housing units: 1.28 HHs per unit (2002).b Assumed future desirable occupancy of housing units: 1.05 HHs per unit (see Metro Manila Urban Services Project).c Units that cannot be upgraded are those in danger zones and government infrastructure reservations. All structures will be replaced with newhousing units in resettlement sites.d Of the units that can be upgraded, it is assumed that 80% will be upgraded on-site and 20% will be displaced by upgrading (such as the introductionof infrastructure and services, and the demolition of structures in poor condition).e Based on estimated 2017 Caloocan City population of 1,872,619; annual average growth rate (2002–2017) of 2.50%; total increase in population(2002–2017) of 587,841; potential informal settlement population equivalent to 30% of total, or 176,352; average household size of 5.5 persons, for atotal of 2,064 households; desirable occupancy of 1.05 households per unit, for a future housing requirement of 30,537 housing units.

Backlog(2002)

Assumptions/ Remarks

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as population growth outstrips housing provision.The ideal occupancy ratio suggested in the MetroManila Urban Services Project (MMUSP) is 1.05households per housing unit.

More than 83,000 low-cost housing units willbe needed by 2017 (Table 8). About 30% of thehousing need can be met through on-site upgradingof housing units in informal settler communities,while 70% will require the development of new sitesand affordable housing to accommodate householdsresettled from nonupgradable housing and to pro-vide for future growth.

CWS ProgramThe following housing programs and projects areproposed for the period 2003–2017 to address thecity’s housing backlog and future needs. Details arefound in the attached CD-ROM.! Resettlement of informal settler families occu-

pying danger areas and government propertiesearmarked for development: relocation of in-formal settlers to government resettlement sites,in coordination with NHA, or acquisition anddevelopment of private land into serviced homelots through the CMP.

! Community Mortgage Program (CMP):assistance to poor urban communities in pur-chasing the private land they occupy throughthe CMP.

! Legalization of tenure status of informal set-tlers occupying government resettlement or so-

cialized housing sites, in coordination with NHAand other government agencies concerned.

! Conversion of idle government lands intosocialized housing sites, including noncore prop-erties of the Philippine National Railways; TalaEstate (Department of Health [DOH] prop-erty); Department of Social Welfare and Devel-opment property; and the Civic Center area.

! Joint venture acquisition and development ofprivate lands for socialized housing, includingEng Hiong Tan property in Bagbaguin andPangarap Village.

! Construction of temporary shelters: construc-tion of bunk houses with community facilitiesin a government-designated evacuation centerfor families rendered homeless by natural orman-made disasters.

! Expropriation of private properties.

CWS Pilot ProjectA number of potential slum settlements were evalu-ated and a priority CWS pilot project that met thefollowing selection criteria was identified:! Development priority of the city government,! Good development potential,! High impact on poverty reduction (large num-

ber of potential beneficiaries),! Positive impact on the economy of the surround-

ing areas, and! Development plans for the area and its envi-

rons.

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Civic Center Upgrading SiteThe initial evaluation led to the selection of the CivicCenter site in Tala Estate as an appropriate CWSpilot project for slum upgrading. The details of theproposed project site are as follows:! Location: North Caloocan, Tala Estate,

Barangay 178, Zone 15.! Area: 10 has. Residential lots, 7 has; roads

and public parks and playgrounds, 3 has.! Lots generated: 1,400 50-square-meter home

lots; 7 phases of development, at 200 lots perphase.

! Beneficiary households: 1,400.

Victoria Wave Resettlement SiteAt the wrap-up meeting with the RETA team on12 June 2003, the Mayor suggested the VictoriaWave site, close to Tala Estate in North Caloocan,as another priority resettlement project under theCWS Program. This 130-ha site has been leasedby NHA to a private company (Victoria Wave) forcommercial and industrial use. But it is largely va-cant, although parts of it are occupied by squatters.The Mayor intends to have the city buy out the leaseand develop the site for the resettlement of poorhouseholds from slum settlements around the city,with national Government support. Further detailsof the proposal are not yet available at this stage butare being prepared by technical staff of the CityPlanning and Development Office (CPDO) andUrban Poor Affairs Office (UPAO) at the Mayor’sinstruction.

CommentsSelectionCaloocan City was included to enable lessons to bedrawn from the city’s ongoing involvement in theMetro Manila Urban Services for the Poor Project(ADB TA 3760-PHI). Also, the city has an emerg-ing IT capability, which could facilitate participa-tion and support the networking objective of the TA.

Understanding and Accepting theCA ConceptAt the first meeting, the RETA team gave a com-prehensive briefing on the scope and objectives ofthe RETA for the Mayor and his senior technicalstaff. However, until the concluding workshop inMay 2003 the senior technical staff showed littleunderstanding of the CA process. There was also

some confusion between the RETA and a parallelADB TA project, the MMUSP that was only dis-pelled after the MMUSP was completed.

Counterpart TeamInteraction between the RETA team and the cityin the early stages was complicated by the fact thatuntil about halfway through the RETA there wasno counterpart team.

Responsibility for the city’s participation waseventually given to the CPDO (for the CDS) andto the UPAO (for the CWS Program). TheCPDO division head was asked to drive the overallprocess. However, the city lacks resources and thenecessary technical planning and development skills.The preparation of the CDS and CWS Programalso coincided with Comprehensive Land Use Plan(CLUP) preparation and approval, and in the ini-tial stages with involvement in the MMUSP. TheCPDO was reluctant to participate in the CDSprocess. The UPAO, on the other hand, showedinterest and willingness to take part in CWS Pro-gram preparations. A new CPDO head was namedtoward the close of the RETA.

City Development StrategyThe responsibility for the preparation of the CDSrests with the CPDO. The CDS is based on theCity Development Plan (CDP). No external ornon-local government unit stakeholder seems to havebeen involved in its preparation, and only cursoryreference was made to the CDS guidelines presentedby the RETA team. Suggestions made to expandthe City Development Council to include other stake-holders evoked no responsive action.

An audiovisual presentation of the draft CDSwas prepared and the draft CDS (found in theaccompanying CD-ROM) was formally submittedto the RETA team.

The CDS vision and mission are stated in gen-eral terms. However, the underlying strategy of de-veloping North and South Caloocan throughdifferent development approaches appears sound.

The CDS, such as the parts pertaining to theemerging national highway network (C5 and C6)and the proposed MRT extension to Monumento,displays some awareness of its strategic framework.But it hardly, if at all, recognizes the essential inter-dependency between local governments in MetroManila, a factor especially critical in Caloocan,which is bisected by Quezon City.

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City Without Slums ProgramThe UPAO, which was responsible for the prepa-ration of the CWS Program, made some progressin spite of limited resources. It submitted a prelimi-nary CWS Program to the RETA team for com-ment in April 2003, responded well to comments,and incorporated many of these in the draft CWSProgram report it submitted in early-June 2003.There are indications that the RETA succeeded inbuilding UPAO staff capacity.

Comments on the draft CWS Program reportinclude the need! to link the CDS strategy with the city’s shelter

needs and with its public investment plan and

pro-poor initiatives, as well as those of the na-tional Government, particularly with respect toslum improvement and low-cost housing;

! for more details on priority actions;! for more details on supporting actions such as

those related to livelihood and housing financeand the involvement of the private sector;

! to indicate possible proposals for CA funding;and

! to suggest further training needs and capacitybuilding requirements.

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Da Nang: Economic GrowthThrough a SustainableEnvironment

Figure 7: Map of Da Nang City

17 Nguyen Hoang Long, vice chairman of Da Nang People’s Com-mittee; Huynh Van Thanh, vice director of the Department of Plan-ning and Investment; Nguyen Manh Hung, director of the Depart-ment of Labor, Invalids, and Social Affairs; Bui Hay Tri, vicedirector of the Institute for Planning and Construction; NguyenNo Truing, vice director of the Department of Foreign Affairs; andTran Thi To Mai, vice director of the Department of Labor, Inva-lids, and Social Affairs.

Continued economic growth is a key target of DaNang’s CDS. This chapter summarizes the docu-ment produced by the stakeholders of Da Nang. Itstarts with a brief outline of the CDS process, givesan overview of the current state of the city, sets outthe key problem areas, and summarizes the resultsof the strengths, weaknesses, opportunities andthreats (S-W-O-T) analysis. Then it presents thevision and mission statements and key targets forDa Nang, followed by the key themes, preferreddevelopment strategies, priority actions, and imple-mentation notes. A more detailed write-up on theCDS is found in the accompanying CD-ROM.

ProcessIn August 2002, a Management Committee com-prising senior representatives17 from a number ofagencies was formed to oversee the implementationof the CDS/CWS. An Implementing Team wasorganized to support the Steering Committee. TheManagement Committee and the ImplementingTeam conducted workshops and held consultationswith stakeholders. The Implementing Team soughttechnical advice from experts in the field and re-ferred to approved government plans in preparingthe CDS report. Further consultations with stake-holders were being planned to confirm the targetsset out in the initial CDS document.

State of the CityDa Nang City is in a key economic area of centralViet Nam. It is a major transport center along the

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18 Defined as those with personal incomes of less than $810 peryear.

1A National Road and the national railway, and isa focal point of sea and air routes. The completionof the East-West Corridor project in 2005, linkingthe seaport of Mawlamyine, Myanmar, in the westand with Da Nang in the east will facilitate cross-border trade and investment, diversify economic ac-tivities and exports, and open a gateway to the PacificOcean for the hinterlands of Lao People’s Demo-cratic Republic (Lao PDR), northeast Thailand,and Myanmar.

From 1998 to 2002, services, the largest of thecountry’s three sectors, contributed about 51% ofgross domestic product (GDP). Manufacturing andconstruction contributed 42%, and agriculture, fish-eries, and forestry, 7%. The city’s recent GDPgrowth, at 8.2% per year, has been higher than thatof the whole country. But there are signs that suchgrowth may be difficult to sustain. In 1997, Da Nang,and the country as a whole, suffered an economic slow-down because of the regional financial crisis. Invest-ments from foreign sources, including overseasdevelopment agencies, dropped by more than 60%from 1997 to 2000. However, the trend has now beenreversed and investment growth has resumed.

Da Nang had a population of about 740,000in 2002, and a population density of 570 personsper km2. About 80% of the population is urban. Atthe end of 2002, about 5,000 households, or 3.8%of the total population, lived below the poverty line.1 8

The population increased by 1.8% from 2001 to2002, but is projected to increase by 2.6% yearlybetween 2001 and 2010, to reach 930,000 by theend of that period. By 2020, the city will have about1.2 million people. The population is relativelyyoung: more than 80% are below 40 years of age.

Key Problem AreasFive sectors have been identified as priorities. Theseare institutional and policy reform, infrastructure,resources, population, and the environment. Keyproblem areas within each sector are summarizedbelow.

Da Nang Harbor

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Institutional and policy reform ! Unclear division of responsibilities between the central and local govern-ments.

! No long-term planning framework for sustainable urban development.! Limited effectiveness of public management and low capabilities of con-

sulting agencies in investment and construction.! Inadequate institutional capacity for the increasing demands of urban

development.

Infrastructure ! Inadequate infrastructure for resettlement areas.! Poor feasibility studies for public works, especially for large-scale projects

or for other projects that are expected to benefit the majority of the popu-lation (culture, education, health, trade, services, parks, entertainment,sports).

! Low priority given to infrastructure investments for scientific and techni-cal, trade service, banking and finance, culture, and sports centers at cityand regional levels.

! Inadequate implementation and funding of public open space develop-ment, recreation, and public services.

! Insufficient data analyses and project preparation for priority infrastruc-ture investments (such as roads, railways, port facilities, airport improve-ments, electric supply network, underground telephone cables, seweragesystem).

! Inadequate public transportation system for future demand.

Resources ! Weak policies for mobilizing domestic and foreign capital.! Inadequate enabling policies for encouraging community and private

sector participation in urban development.! Misuse of resources.

Population ! Relatively high population growth rate.! High unemployment rate.! Mismatch between training for unskilled labor and potential employment

opportunities.

Environment ! Projected increase in environmental pollution and industrial waste disposalproblems with further economic growth.

! Insufficient levels of investment in environmental management for sustain-able development.

S-W-O-T Analysis

Strength Weakness

! One of four national cities managed by the central ! Lack of skilled managersGovernment ! Lack of resource mobilization system

! Strategic location in the country ! Lack of a dominant economic sector! Relatively good infrastructure ! Long-run inadequacy of urban management and! Young population planning! Good educational facilities and training opportunities ! Low GDP! Presence of the country’s second largest port ! Limited and poorly synchronized public facilities

! Harsh weather

Continued next page

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Opportunity Threat

! Membership in ASEAN ! High rate of urbanization! Attractive investment environment ! High population growth rate! ODA assistance ! Limited resources of the city! Tourism and service potential ! Competition from other provinces and cities in! Economic transformation, industrialization and central Viet Nam (Hue, Quang Nam, Quang Ngai)

modernization, greater competitiveness in the ! Impact of world affairsglobal market

ASEAN = Association of Southeast Asian Nations, and ODA = overseas development assistance.

S-W-O-T Analysis continued

Substandard housingeligible for govern-ment upgradingin Binh Hien Ward,Hai Chau District,Da Nang

Vision, Mission, and TargetsVisionDa Nang envisions becoming a Type 1 city, and amajor transport, economic, cultural, service, and tour-ism center in central Viet Nam and the country.

Mission/Objectives! To transform Da Nang into a modern city and

ensure its stable and sustainable development;! To industrialize and modernize the city ’s

economy by increasing the proportion of indus-tries engaged in processing and the manufac-ture of consumer goods for export, constructionmaterials, and chemicals, and by strengtheningservices and tourism;

! To develop the economy while conserving theenvironment, to ensure the sustainability of thecity, protect people’s health, and improve liv-ing standards;

! To link economic growth with social develop-ment and equity;

! To create jobs and raise intellectual standards;! To increase investments in rural and mountain-

ous areas and reduce the income gap betweenurban and rural parts of the city;

! To utilize the strength of all economic sectors,diversify forms of production and trading,develop internal resources, encourage a favor-able and transparent investment climate that willattract external capital and technology, andenhance domestic and overseas trade;

! To develop and improve the quality of humancapital to meet development needs, particularlyto encourage the application of new scientificand technological approaches;

! To ensure an appropriate balance betweeninvestments that improve the old urban area andthose that encourage more modern urban struc-tures;

! To provide the poor with easier access to basicsocial services, and to increase employmentopportunities for them in production and en-terprises, in agriculture, forestry, and fisheries,in business service activities including credit,and in education, health, and cultural pursuits;

! To mobilize and allocate resources for invest-ments in major growth areas including HoaVang District, coastal areas, and new urbancenters, and in priority interventions for capac-ity building in business development, creditprovision, and poverty reduction; and

! To mobilize additional local, national, and in-ternational resources for sustainable povertyreduction programs.

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Main Targets! Increase the GDP of Da Nang City from 1.2%

of national GDP in 2000 to 1.8% in 2005and 2.1% in 2010;

! Increase average GDP per capita in the cityfrom $448 in 2000 to $1,000 in 2005 and$2,000 in 2010;

! Achieve an average annual GDP growth rateof 13% for 2001–2005 and 14% for 2006–2010;

! Increase export turnover by an average of 21%to 23% per year;

! Reduce poverty by 1.3% per year (equivalentto 1,905 fewer poor households a year), so thatby the end of 2005, there will be no house-holds below the current poverty line;

! Create 95,000–105,000 jobs, or 19,500–20,000 new jobs each year, over the period2001–2005;

! Reduce the unemployment rate to 4.2% by theend of 2005, and raise the work hours in thecountryside to 82% by 2005;

! Decrease the number of malnourished childrento 5% by 2005;

! Decrease the annual population growth ratefrom 1.5% in 2000 to 1.2% in 2010;

! Provide electricity to all households and cleanwater to at least 95% by 2010;

! Increase the scope of education and trainingand improve the quality of teaching in city uni-versities, colleges, technical secondary schools,and technical workers schools;

! Achieve an industry innovation rate of 20–25%per year, including investment in capital equip-ment, technology, new factories, and higher pro-duction capacity and turnover;

! Prevent pollution and environmental degenera-tion, and restore and improve the quality of wa-ter and air especially in the Da Nang IndustrialZone, Hoa Khanh Industrial Zone, and LienChieu Industrial Zone; and

! Improve infrastructure facilities or install newones, particularly for transport, water supply,sewerage, wastewater treatment, and solid wastemanagement.

Development StrategiesKey ThemesFive key themes are prevalent throughout the strate-gies. These are the following:! Stable economic development, through a high

and sustainable rate of economic growth andimproved product competitiveness;

! Technology improvements, through appropri-ate research and development;

! Skills improvement, through human resourcemobilization and upgrading and through bet-ter education and training;

! Poverty reduction and hunger eradication,through more jobs and appropriate solutionsto pressing social concerns; and

! Efficient administration and urban manage-ment, through innovations and streamlining ofprocedures, to attract foreign and domestic in-vestments.

Preferred Development Strategies

Improve Major Infrastructure! Develop new infrastructure. Upgrade the wa-

ter supply system;! Speed up the construction of infrastructure in

major industrial zones and in medium and smallindustrial areas, and establish trade centers forgeneral and service activities; and

! Improve the public transportation system,strengthen the postal service infrastructure, andimprove the telecommunication network to meetfuture needs.

Promote Planned Urban Development! Upgrade or construct basic urban infrastruc-

ture, especially roads, drains, sewers, and treat-ment facilities to improve environmentalsanitation;

! Complete the construction of industrial zonesin Lien Chieu, Hoa Khanh, and An Don;

! Construct infrastructure in new residentialareas, combine low-income state housing withindividual private housing to create modern, di-versified, and well-designed settlements, andachieve the housing floor space target of 10 m2

per capita with the construction of 17,000 newhousing units by 2005;

! Restrict the development of the old town dis-tricts of Hai Chau, Thanh Khe, and Son Tra;

! Upgrade or build public utilities in residentialareas and central industrial zones;

! Upgrade or create parks in districts and wards;and

! Invest in the seaside resorts in My Khea andNon Nuoc and in the Ba Na–Suoi Mo touristarea, and improve environmental conditions in

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tourist areas along My Khe Beach and thebanks of the Han River.

Promote Stable Economic Development! Encourage the growth of economic sectors with

high economic value and marketable productsmade according to modern industrial standards,and give priority to export-oriented products,seafood processing, construction materials,mechanics, machinery, electronics, rubber prod-ucts, leather shoes, garments, and chemicals;

! Encourage investments in industrial zones, andgive priority to attracting medium and small in-dustries;

! Support medium and small businesses thatfocus on technology innovations and export-ori-ented activities, including those engaged inhighly processed products;

! Create an investment-friendly environment toattract foreign capital and technology;

! Encourage investment in service sector activi-ties, such as tourism, financial services, bank-ing, transportation, aviation, agency services forproduct consumption, and export, and imple-ment strategies to attract export-orientedindustries and diversify the structure of the ex-port industry;

! Create favorable conditions for handicraftdevelopment, and improve handicraft facilities;

! Provide preferential credit to farmers for rawmaterials, and support improvements in ruralinfrastructure;

! Strengthen the traditional markets (People’sRepublic of China [PRC] and Lao PDR),and expand and develop new markets (UnitedStates, Japan, Russia, and the Arab countries);

! Improve and develop the cooperatives sector,in accordance with the city’s socioeconomicdevelopment objectives; and

! Speed up investment in Tho Quang IndustrialZone for services and seafood processing, andThuan Phuoc for fresh and frozen seafood pro-cessing, establish a trade center and fish auc-tion market, and invest in infrastructure forshrimp culture.

Protect and Improve the Environment! Prevent pollution and environmental degrada-

tion, and improve water quality and land andair quality in industrial zones and in urban andrural areas, by repairing and upgrading thetransport system, the water supply network,

wastewater treatment, and solid waste disposal;! Protect natural resources by relocating pollut-

ing industries from inner city sites to more suit-able areas outside the city; and

! Promote better use of agricultural and forestlands, increase capital for reforestation by 45%,and develop forest protection programs.

Reduce Poverty and Provide Better Educationand Training! Promote economic development for sustainable

poverty reduction, and target the eliminationof slums by 2005;

! Expand and diversify education and trainingschemes and adopt a program for universal highschool education;

! Focus on vocational training of the poor;! Improve social welfare services for the poor;! Expand training for cooperatives officials and

skilled workers in the economic sector;! Mobilize and effectively use all resources for

education and training, and encourage the es-tablishment of private schools;

! Focus on training in sciences, technology, andbusiness management (tourism, internationaltrade economy, commerce, banking, andinformation technology), and upgrade workers’skills;

! Focus on developing human resources neededto exploit the city’s potential, and its culturaland historical value;

! Promote technology transfer, and use new tech-nologies in the manufacture of products for ex-port, the processing of raw materials, and themanufacture of products listed in the ASEANFree Trade Agreement;

! Develop high-technology applications includ-ing biotechnology, information technology, andautomation;

! Encourage and support businesses in researchand technology, for better production and trad-ing;

! Publicize, wage education campaigns, andincrease community awareness of environmentprotection;

! Provide preferential policies to effectively tapthe resources of scientific and technical profes-sionals, and attract leading scientists from stateagencies and other provinces; and

! Train faculty members and develop preferen-tial policies to encourage young teachers to moveto rural communes.

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Three-storey publichousing near DaNang Port rented topoor households

Improve Population and Health Services! Continue the family planning program and

reduce the birth rate to 0.5%;! Implement programs to prevent HIV infection,

bronchitis, malaria, whooping cough, tetanus,and polio;

! Expand the coverage and implementation ofreproductive health and family planning pro-grams;

! Protect children, especially the malnourished;and

! Integrate hunger eradication and poverty reduc-tion goals into funding programs that create jobsand support other national targets.

Priority Actions andImplementationPriority actions for implementation are those thatsupport the transformation of the economy of DaNang City into one of the three major marine-basedeconomies of Viet Nam and the major service cen-ter for the central region. More specifically, thesepriority actions are:! Continue to improve urban infrastructure, in-

cluding the inner city road network;! Coordinate with relevant national agencies in

upgrading Da Nang Seaport and Da NangInternational Airport;

! Complete the nodal transport projects connect-ing the city with other areas; and

! Upgrade the power network and water supplysystem and construct new wastewater treatmentand solid waste management facilities.

The estimated cost of the first stage of CDSimplementation, up to 2005, is $567 million, ofwhich $140 million is projected to come from thecity budget and the balance from other sources.

CommentsSelection of Da NangDa Nang was selected following discussions betweenthe Government of Viet Nam and ADB, includingthe resident mission in Hanoi. Da Nang is the domi-nant city in the central region and is the focus ofADB’s investment activity in Viet Nam.

The RETA team made three visits to Hanoiand Da Nang. The first was in July–August 2002,to introduce the RETA team and the CA conceptto the Government and meet with key national and

local government officials. During the visit (i) gov-ernment officials were given a general introductionto the CA and the scope and purpose of the RETA,(ii) a workshop and detailed briefings on the CDS/CWS Program were held for individual agenciesand officials, and (iii) agreement was reached withleading local government (Da Nang People’s Com-mittee) representatives on schedules and workingarrangements for the completion of the CDS/CWSProgram.

At a second visit in November 2002, the teamwas accompanied by the RETA Project Officer anda member of the ADB resident mission. The visitreaffirmed ADB’s commitment to the CA and em-phasized the advantages of Da Nang’s involvement.

A third, extended, visit was made in Decem-ber 2002–January 2003 to directly assist with theproduction of a draft CDS/CWS Program docu-ment. The RETA team met again with local offi-cials and held a workshop to clarify certain aspectsof the work.

Comprehending and Accepting theCDS/CWS ConceptFor the national and local governments, the prepa-ration of the CDS/CWS Program involves a num-ber of new and unfamiliar concepts. These include(i) an approach to planning and development thatrequires the full participation of government agen-cies and other relevant public and private stakehold-ers; (ii) the preparation of a truly comprehensiveand integrated approach to urban development,

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involving all relevant sector agencies; (iii) a rationaland sequential planning process that moves from acomprehensive database, through subsequent stagesof analysis and vision and strategy formulation, toarrive at a long-term development program and pri-ority actions focused on poverty reduction; and (iv)a CWS Program approach based on “slum upgrad-ing,” a concept not fully understood or accepted bygovernment agencies.

Even though the need to involve local stake-holders in the CDS/CWS Program preparationprocess was emphasized, follow on meetings andconsultations with local stakeholders were held. TheProject Steering Group (PSG) felt that they re-quired additional technical assistance to consult withstakeholders and engage their participation in thepreparation of the CDS/CWS Program. TheRETA team, supported by the Urban ManagementProgramme/UN-Habitat, planned to hold a furthertraining program to assist the Project Steering Groupin preparing the CDS/CWS Program and to equipthe PSG and the relevant stakeholders with toolsfor participation, investment programming, povertyreduction, and other CDS/CWS approaches. Un-fortunately, this training program was delayed to adate beyond the conclusion of the RETA.

Counterpart TeamThe overall direction of Da Nang’s participation inthe CA was the responsibility of the Vice Chair-man of the People’s Committee. Technical respon-sibility for CDS/CWS preparation was initiallygiven solely to Department of Labor, Invalids andSocial Affairs (DOLISA) but was later shared byDepartment of Planning and Investment (DPI).The responsibility for coordination with the RETA,for translation, analysis, and report preparation, andfor interpretation at meetings with the Government,was assigned part time to a representative of Habi-tat for Humanity, who was supported by a staff mem-ber of DPI. A GTZ consultant to Ministry ofLabor, Invalids and Social Affairs (MOLISA) onpoverty reduction provided occasional advice andassistance.

Throughout the RETA, there was a high levelof commitment to the CDS from Vice ChairmanNguyen Hong Loang, and recognition of the value

of the CDS to the long-term development of DaNang and the more immediate goals of the Inves-tors’ Conference in March 2003. However, by Janu-ary 2003, the CDS/CWS Program outputs hadslipped well behind schedule. This led to an under-taking by the Vice Chairman to redouble efforts andappoint a dedicated project coordinator. But itremains unclear if the coordinator was appointed tooversee CDS/CWS Program preparation.

ProgressDuring the first RETA mission, government offi-cials insisted that they could complete draft CDSand CWS Program documents by the last quarterof 2002. Despite reminders of the need for a par-ticipatory approach, they intended to base thesedocuments on data drawn from existing governmentagency documents. This initial schedule and subse-quent adjustments were unattainable. A draft CDSdocument was eventually forwarded to the RETAteam in May 2003.

Factors that delayed the submission of CDS/CWS documentation were:! Budgetary constraints in meeting the expenses

incurred in preparing the CDS and CWS Pro-gram reports and workshop materials; and

! Inadequate time for officials to accept the CDS/CWS concept, bring about stakeholder partici-pation and cooperation, and produce compre-hensive CDS/CWS documentation.

City Development StrategyThe preliminary CDS report was submitted to theRETA team in May 2003. The team sent its com-ments on the report to Da Nang on 15 May 2003.

City Without Slums ProgramOne key reference that PSG may refer to in prepar-ing the CWS program is the Comprehensive Pov-erty Reduction and Growth Strategy approved bythe Prime Minister on 21 May 2002 (DocumentNo. 2685/VPCP-QHQT). As of mid-June 2003,no preliminary CWS Program report had been sub-mitted to the RETA team, for the reasons referredto above and in the “Summary and Conclusions”section.

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Figure 8: Map of Quezon City

Quezon City: Working inPartnership with the Citizenryin Building a Quality Community

Quezon City developed its City Development Strat-egy (CDS) from its Comprehensive DevelopmentPlan (CDP). This chapter summarizes the processadopted and briefly outlines the state of the city. Asummary of key problem areas and the city’s devel-opment potential and opportunities follows. Thisleads into the S-W-O-T analysis and the setting ofthe vision equation for the city. Sector strategies andplans for infrastructure, environmental management,economic development, and improved governanceare discussed next. Finally, brief notes are presentedon strategy implementation, and on performancemeasurement and monitoring.

The CDS was produced as an audiovisual pre-sentation. A copy is found in the attached CD-ROM.

ProcessThe Quezon City CDP, as well as its CDS, was aproduct of participatory processes. The plan con-tinuously evolves to reflect current realities, as de-rived from ideas, sentiments, proposals, andinformation conveyed in dialogues with the people.The current document is the outcome of work thatstarted in 1994 and 1995 when the city conducteda round of comprehensive surveys and studies. Fromthese, the CDP was produced and it led to the for-mulation of a Comprehensive Land Use Plan(CLUP) and a City Zoning Ordinance in 1996.These proposals were subjected to an approval pro-cess marked by extensive public hearings and con-sultations with a broad range of stakeholders (seeFigure 8).

In 2001, the newly elected Mayor introducedchanges and innovations that greatly strengthenedthe fiscal position and institutional capability of thecity government. One innovation turned consulta-tion into an effective medium for participation incity governance. A series of participatory exercises

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Figure 9: Institution-alizing CDS inQuezon City

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CDP=Comprehensive Development Plan, CLUP=Comprehensive Land Use Plan, SWOT=Strengths, Weaknesses,Opportunities and Threats, ZO=Zoning Ordinance.

was held to review and update the city plans. Theseincluded: (i) a consultation summit of barangayleaders; (ii) strategic planning sessions of the citygovernment; (iii) a multisectoral consultation sum-mit; (iv) regular visits to barangays; and (v) con-tinuing dialogues with communities.

From these consultations the vision of a “Qual-ity City” and the mission of the city emerged. TheCDP was then amended to reflect the vision.

The implementation of the CDP is being moni-tored as its content and substance are being vali-dated through a continuing participatory processinvolving barangay leaders, the city developmentcouncil, people’s organizations, and nongovernmentorganizations, and including regular visits tobarangays and community dialogues.

State of the CityQuezon City, in the northeast of Metro Manila, hasa land area of about 16,100 has. It is the largestlocal government in Metro Manila covering about25% of the National Capital Region (NCR) andcomprising 142 barangays. The city is on theGuadalupe Plateau with its rolling ridges and low-lands. The southern part is low-grade terrain, whilethe northern part is undulating and contains theNovaliches Reservoir, the prime source of water forMetro Manila. The city is well drained through a

network of rivers and esteros, except for a few areasthat suffer flash floods because of poorly maintainedwaterways. The Valley Fault System is on the east-ern part of the city. Quezon City was created on 12October 1939 by virtue of Commonwealth Act 502.

In 2000, Quezon City had a population ofalmost 2.2 million, 22% of the population of MetroManila and the largest of any local government inthe Philippines. From 1995 to 2000, the popula-tion grew by 1.9% yearly and is estimated to reach2.3 million by 2003. Fifty-two percent of the popu-lation is female, and the average age is 24 years.Population density is 135 persons per ha. The work-ing-age population (15 years and older) is about1.5 million, of which 66%, or 980,000, are in thelabor force. Eighty-five percent of the labor force isemployed, 4% are underemployed, and 15% areunemployed.

The average family income in 2000 was aboutP33,000 per month, well above the P8,857 pov-erty level. About 15% of households have incomesbelow the poverty line. The city has 481,000 house-holds and 158,000 informal settlers. It is projectedthat by 2005 the city will have some 2.4 millionpeople.

Business in the city is dominated by small- tomedium-scale enterprises distributing finished prod-ucts and providing basic personal services rather thanproducing goods. The total number of business

55

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Figure 10: Distribu-tion of BusinessEstablishments, byIndustry Classifica-tion, 2001

Table 9: Actual Land Use in Quezon City, 1995

Use Area (ha) Percentage of Total

Residential 6,349.79 39.41Commercial 580.04 3.13Industrial 769.05 4.77Institutional 928.06 5.79Open Space and Reservoir 2,700.39 16.76Utility 225.57 1.40Cemetery 70.89 0.44Military 204.62 1.27Vacant 4,283.71 27.03

Total 16,112.12 100.00

establishments in the city is almost 56,000 (Busi-ness and Permits License Office Data 2001). Thepercentage distribution of establishments among thevarious sectors is shown in Figure 10.

The city is predominantly (almost 40%) resi-dential (see Table 9). However, it has retained itsinstitutional character with the presence of the Phil-ippine Congress, national agencies, and academicand specialized medical institutions. The city alsohas large areas of open space, including the NinoyAquino Parks and Wildlife, Quezon MemorialCircle, University of the Philippines Arboretum,and Novaliches Watershed. Commercial areas aremostly in key centers like Cubao and Eastwood City,and along major thoroughfares. Industrial develop-ment areas are found in Balintawak, Novaliches,and Ugong Norte.

The city is crossed by three main circumferen-tial roads (C-3 Araneta Avenue, C-4 EDSA, andC-5 Katipunan–Luzon–Republic Avenue) andthree radial roads (R-6 Aurora Boulevard, R-7Quezon Avenue–Commonwealth Avenue, and R-8 Bonifacio Avenue–Quirino Highway).

There are two LRT lines—LRT 2 from CMRecto to Katipunan Avenue, and LRT 3 alongEDSA. A third line, LRT 4, from Quezon Av-enue to Quirino Avenue, has been proposed and isunder study.

Two Metropolitan Waterworks and SewerageSystem private concessionaires provide water, butonly to 134,000 residential household lines out of154,340 service connections. The Manila ElectricCompany (Meralco) provides electricity to 97% ofthe city population. Garbage is collected daily (at0.7 kg per capita) and is disposed of at an opendumpsite in Payatas.

Key Problem AreasDevelopment Challenges

Physical! Land use incompatibility or conflict in residen-

tial zones;! Limits placed by the valley fault system on the

intensity of land use;! Constraints on the development of localities and

interaction between them, because of theMarikina and Tullahan rivers;

! Growth of informal settlements on idle and va-cant lands, particularly the National Govern-ment Center (NGC), Payatas Estate, Luzon

Avenue, Balara–Pasong Tamo area, Krus naLigas, and East and North Triangle areas;

! Urban blight;! Environmental deterioration particularly in

Payatas, unsanitary, inefficient, and opendumpsite and informal settlements, poor airquality along major roads, and polluted riversand creeks;

! Deficiencies in the road network, particularlythe unbuilt segments of the C-5 and the Visayas,Mindanao, and Congressional avenues,unintegrated road networks between commu-nities;

! Traffic congestion, particularly at major inter-sections and along major roads; and

! Recurrent flooding because of an inefficient andoften clogged drainage system.

Socioeconomic! High population growth rate and the severe

strains it puts on physical and social infrastruc-ture;

! Uneven distribution of the population, and theresulting imbalance in the provision of publicservices and facilities;

56

19 $1 = P51.61, from Asia Recovery Information Center (ARIC)Indicators. Available at www.aric.adb.org.

! Housing deficiency, which is becoming morepronounced with the continued growth ofinformal settlements and deterioration in hous-ing conditions;

! Great disparity in family incomes between theupper (P108,000 monthly), middle (P29,000),and lowest (P7,600) income groups;19

! Slow growth of employment relative to the in-crease in the labor force; and

! High unemployment rate of 15% (although be-low that of the NCR), particularly among theunskilled, poorly educated, and low-incomegroups.

Finance and Institutional! Weak coordination and a lack of cooperation

between government and nongovernment agen-cies, leading to program overlap and the con-centration of services in some areas to thedetriment of other areas; and

! Limited availability of funds for the capital in-vestment projects of the city government.

Development Potential andOpportunitiesThe city nonetheless has opportunities that, if prop-erly exploited, could contribute to the achievementof its vision. These opportunities fall into three cat-egories: physical potential, socioeconomic opportu-nities, and governance.

Physical Potential! Availability of undeveloped land (32% of the

city, or about 5,300 has), most of it with soilconditions and terrain suitable for urban devel-opment;

! Major transport projects to be completed or be-ing planned, including C-5, C-6, Quezon Av-enue/EDSA Interchange, Roosevelt Avenue/EDSA Interchange, MRT Line 2 (Aurora),MRT Line 3 (EDSA), and MRT Line 4(Quezon Avenue);

! Major parks and areas of public open space,including the Novaliches Reservoir, La MesaDam reservation, Quezon Memorial Circle,University of the Philippines Arboretum, andNinoy Aquino Parks and Wildlife area; and

! Expansion programs of the utility agencies suchas Maynilad Water Services Inc., ManilaWater Company, PLDT, Bayantel, andMeralco.

Socioeconomic Opportunities! A pool of skilled, educated people living in the

city;! Presence in the city of Metro Manila’s more

prominent public and private academic (uni-versities and colleges) and vocational/technicalinstitutions and schools;

! Presence of a major institutional area, which isthe site of many government offices and medi-cal institutions;

! Major programs in place for the provision ofbasic urban services, including health care, edu-cation, social welfare, skills training, livelihood,entrepreneurship, and utilities; and

! Presence of major business and commercialareas that serve the region as well as the entirecountry.

Governance! Professional and responsible city management;! Strong political will, with participatory gover-

nance; and! Support for city development from the com-

munity, civil society, and private sector, all ofwhich are willing to work in partnership withthe local administration.

The Vision Equation:QC = Quality CityThe vision is anchored on the dream of the city’sfounder, President Manuel L. Quezon, that

the city, politically, shall be the seat of thenational government; aesthetically, the show-place of the nation, where thousands ofpeople will come and visit as epitome of cul-ture and spirit of the country; socially, a dig-nified concentration of human life,aspirations and endeavors and achievements;and economically, a productive, self-con-tained community.

The vision for Quezon City is that of a qualitycity. Quezon City will be a clean and model com-munity that is resident-friendly and the premier busi-ness capital of the country.

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S-W-O-T AnalysisStrength Weakness

! Good participatory planning ! Inadequate data system! Proactive leadership of the Mayor and the Council ! Failure to adopt the Amended Zoning Ordinance! Responsive service from the city government ! Inadequate links between institutions! Good telecommunications facilities ! Inadequate facilities and amenities! Cash-rich government ! Slow adaptability to new technology and systems! Willingness of city officials to learn development

Opportunity Threat

! Redevelopment of Payatas dumpsite ! High population growth rate and unabated migra-! Availability of industrial sites and an IT center tion, leading to rising unemployment and poverty! Large areas of public open space ! Large numbers of informal settlers, transients, street! Presence of top-quality educational institutions, children, and out-of-school youth; squatting on

major radio and television stations, and excellent Payatas dumpsitehospitals ! Lack of a relocation site for informal settlers

! Presence of commercial centers and malls and the ! High incidence of crime and low visibility of policeTimog and Morato entertainment centers ! Environmental pollution, traffic congestion, and the

! Presence of urban forests and historical sites overall garbage problem! Presence of national agencies, including ! Eyesores in the urban skyline: cables and wires

Constitutional bodies ! Ineffective enforcement of planning, zoning, and! Development potential of military camps building controls and regulations! Potentially large revenue base in view of the large ! Many disputed land titles, but large areas of land

population and land area owned by the national Government! High percentage of top 500 corporations in the city ! Sluggish business and presence of unfinished high-! Planned city, with easy access to major roads and rise buildings

vacant land suitable for development ! Undisciplined drivers and pedestrians, bus termi-! Active NGO sector nals and tricycles on major roads, unroadworthy

vehicles, and many sidewalk vendors

A quality city is! dynamic, with efficient road transport and com-

munications;! healthy, through adequate health and medical

services and healthy living conditions;! safe and secure, peaceful and orderly, and with

affordable housing;! productive, with commerce and industry, liveli-

hood and employment opportunities, and athriving tourism;

! nurturing and caring, through its education andcultural heritage, and social welfare and pro-tection;

! environment-friendly, with good solid wastemanagement, parks and open spaces, and pro-tection of rivers; and

! well-governed, through an effective developmentadministration and comprehensive barangaydevelopment.To accomplish this vision, the Quezon City gov-

ernment aims to become a model of effective gover-nance and responsible leadership, and to build a

quality community in partnership with the citizenry.It is the city government’s mission to provide qualityservice, which will make Quezon City an idealcommunity where people live, work, and do busi-ness in a hospitable, progressive, and peaceful envi-ronment.

The priority areas of action of the city govern-ment are fiscal management, revenue generation, in-frastructure development, urban renewal,improvement of environment quality, collaborationbetween government and the private sector, peaceand order, pro-poor policy initiatives, housing, edu-cation, health, livelihood and employment opportu-nities, and legislative-executive fusion.

Sector Strategies and PlansFive major sectors have been identified and plansprepared for each. These sectors are physical devel-opment, environmental management, social devel-opment, economic development, and improvedgovernance.

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Physical Development! Land use and zoning: continuing land use docu-

mentation and enforcement monitoring andcitywide urban renewal; also the furtherdevelopment, in partnership with the private sec-tor, of Metro Centro (Cubao), BalintawakUrban Development Zone, Payatas UrbanDevelopment Zone, and Eastwood City CyberPark.

! Roads and transport infrastructure improve-ments: road network framework plan and roadmaintenance, pedestrianization, and trafficmanagement programs.

! Development of drainage and flood control sys-tem: implementation of the city drainage net-work and flood control development frameworkand plan.

! Improvement of utilities: expansion programsof Maynilad Water Sevices Inc., Metro Ma-nila Commission, and Meralco, and implemen-tation of the community-based Water andElectricity Provision Program.

Environmental Management! Solid waste management: implementation of the

barangay-based ecological waste managementprogram, Payatas dumpsite rehabilitation, andwaste disposal facility development.

! River protection and conservation: waterwayimprovements, garden city concept for parksand open space development, and green lungnetwork and greenbelt development program.

Social Development! Health provision: development and improvement

of health care facilities, development of publiccemeteries, and comprehensive health care.

! Education: development of educational facili-ties and implementation of an integrated edu-cation program.

! Improved housing: community upgrading, landtenure stabilization, development of relocationsites, and construction of medium-rise build-ings. The creation of the Housing and UrbanRenewal Authority will facilitate urban renewal.

! Improved public safety: crime prevention, bet-ter law enforcement, fire protection and pre-vention, risk and hazard management,development of protective facilities, and im-proved street lighting.

! Promotion of social welfare: community out-reach, welfare and relief, vocational develop-

ment, residential care and rehabilitation, anddevelopment and improvement of social wel-fare facilities for disadvantaged and vulnerablegroups and individuals such as children,women, the youth, the elderly, and the disabled.

! Sports and recreation: integrated sports devel-opment.

Economic Development! Trade and industry promotion: investment pro-

motion, public market development, coopera-tives development, and consumer protection.

! Urban development: major projects include theredevelopment and beautification of BanaweSt., Tomas Morato Avenue, and other areas;encouragement of mixed-used development inthe North Triangle business district, East Tri-angle, Quezon Institute property, and JacintoSteel; renewal of the old business sites of Cubao(Metro Centro) and Balintawak; and promo-tion of information technology businesses al-ready established in the Eastwood CityCyberpark.

! Promotion of tourism and culture: improvementof historical sites, development of the QuezonCity Museum, and tourism promotion.

Improved Governance andInstitutional Development! Improved development administration: wider use

of modern tools and technology, organizationaldevelopment, capability building, and stake-holder consultation; introduction of local pro-ductivity and performance measurementsystems; better institutional facilities and im-provement of Quezon City Hall complex.

! Improved local governance: improvement ofbarangay facilities and comprehensive barangaydevelopment.

! Improved public finances: more efficient revenuegeneration and prudent fiscal management.

Plan ImplementationImplementing Structure andMechanism! Executive-legislative coordination: forging a

close relationship between the executive and leg-islative branches of the city government.

! Development-oriented legislation: introducingdevelopment-oriented legislation in the citycouncil and promoting such legislation; encour-

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aging an active City Development Council.! Multi- and intersectoral collaboration and co-

operation: fostering productive collaborationwithin and between the various stakeholder sec-tors in implementing the plan.

! Intra- and intergovernment coordination and co-operation: encouraging government agenciesand entities to work together.

Plan Financing! Fiscal management: prudent spending, fiscal

restraint in spending, and introduction of astreamlined procurement and bidding system.

! Revenue generation: more efficient tax collec-tion, widening of the tax base, introduction oftax incentives, and implementation of an inten-sive information campaign to improve revenues.

! National Government participation: involvementof agencies of the national Government and mo-bilization of other revenue sources.

Performance Monitoring andEvaluation! Monitoring of progress: establishment of a

progress monitoring system.! Evaluation of progress: continuous evaluation

with the participation of the city and barangaygovernments.

Poverty AlleviationThrough Urban RenewalInstead of preparing a CWS, Quezon City updatedthe socioeconomic profile of its urban poor, usingdata from a 2002 survey of 197 depressed areas.(The results of this survey are summarized in theattached CD-ROM). The city’s policies and strat-egies for addressing the housing requirements of theurban poor are contained in its shelter developmentframework plan, prepared in 2001, which formedthe basis for the establishment of the Housing andUrban Renewal Authority (HURA) for the city.

20 Statistics from the Urban Poor Affairs Office of Quezon City.

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21 Those who live in danger zones—near creeks, on embankments,or beside garbage dumps—and must urgently be relocated, andthose on roads and other right-of-way.

The ProblemA large section of the population of Quezon City,including informal settlers occupying governmentand private lands, is in need of better shelter. In2002 the city had about 155,000 informal settlerfamilies20 and 54,000 families living in doubled-uphouseholds. The land tenure program implementedover the past 12 years gives legal ownership of landto only 4,549 informal settler families. Accordingto the shelter development framework plan, about102,000 informal settlers live in areas that can beimproved and for which legal tenure can be pro-vided, and the other 53,000 informal settler fami-lies must be relocated.21 The National StatisticsCoordination Board has set a poverty threshold ofP8,858 in monthly take-home pay, placing many ofthe city’s workers, who also need housing like theinformal settlers, at or near the poverty line. About25,000 new housing units are needed annually fornew households, doubled-up households, and thehomeless.

The informal settler households present a var-ied profile. A partial survey in one community, wherethe disclosed monthly incomes range from P1,000to P37,480, shows that squatting cannot always beattributed to lack of income. Likewise, informal set-tlers are not always necessarily transients; many re-spondents have been living in their shanties for atleast 20 years. Many have set up small businesses,while others rent out rooms for a living.

The city has a multidimensional shelter prob-lem, whose full extent cannot be precisely measuredbecause of inadequate data. A regularly updateddatabase on the city’s poor, including informal set-tlers, is a key component of its shelter developmentstrategy. Once the size of the urban poor popula-tion and their conditions and needs have been accu-rately determined, programs that are responsive totheir requirements could be designed.

But no shelter development plan will work ifsquatting is allowed to continue undeterred. QuezonCity has been derisively called squatter-friendly. Ithas become too easy for transients to squat on idleland and remain there for years. For too long, squat-ters have been coddled because their numbers givethem considerable political clout. The current ad-ministration has made it a policy to discourage thefurther entry of squatters into the city.

Quezon City has traditionally tried to solve itsshelter problem through its Community MortgageProgram (CMP). But the processing of projectshas been slowed by the existence of squatter syndi-

cates and bureaucratic red tape, and program effec-tiveness has been largely negated by rapid popula-tion growth. The city needs a more dynamic strategythat can quickly address the housing needs of a muchlarger group of beneficiaries. Prices and construc-tion costs that were too high or repayment rates thatwere too low rendered unsustainable the socializedhousing programs of the past. These programs in-volved large subsidies that the city government couldnot afford. Moreover, housing strategies were gen-erally ad hoc, and the responsibility for housing de-livery and squatter prevention was tossed from oneadministrator to another.

A Sustainable Urban Renewal andShelter ProgramTo provide a mechanism for the participation ofpeople’s organizations and nongovernmental orga-nizations in drafting policy recommendations onshelter, the City Council passed an ordinance creat-ing the Quezon City Local Housing Board in Janu-ary 2002. Chaired by the Mayor, the board has 15members, including seven representatives of POsand NGOs. Among other powers, the board rec-ommends local shelter plans and assists in the for-mulation of amendments to the city’s land use plan.Furthermore, to depoliticize the implementation ofits shelter and urban renewal program, Quezon Cityhas set up its own HURA and is developing it intoa modern, efficient, and people-centered organiza-tion that will solve the housing problems and facili-tate urban renewal in the city.

HURA was created as a city government cor-poration under a recently signed ordinance (2003).This has given the city government a special-purpose vehicle with the management flexibility toraise and leverage funds for sustainable urban re-newal and low-cost housing. With the private sectorand civil society, HURA will facilitate the imple-mentation of a shelter and urban renewal programthat is sustainable and professionally managed, rec-ognizes market realities, and is demand-led. HURAwill facilitate or promote (i) urban renewal and re-development through the upgrading or redevelop-ment of slums and other blighted urban communities,the construction of resettlement sites, and the devel-opment of vacant and underutilized land owned bythe city government; and (ii) the development ofaffordable housing that satisfies the demand of mar-

61

ginal and low-income families. The intended ben-eficiaries of HURA’s housing program are slumdwellers or informal settlers, and other low-incomefamilies.....

HURA is a public corporation wholly ownedby the Quezon City government. Its authorizedcapital is P1 billion, P400 million of which has beeninitially subscribed by the Quezon City government.The Mayor chairs the HURA board of directors,whose members comprise two representatives ap-pointed by the Mayor, two from the SangguniangPanglunsod, and one each from the Local HousingBoard and the City Development Council. A gen-eral manager appointed at the Mayor’s recommen-dation has been designated as the chief executiveofficer.

Shelter Development FrameworkQuezon City’s development framework for shelterresponds to the goal of providing residents with ac-cess to affordable housing. The specific objectives ofthe framework are the following:! To improve living conditions in depressed

areas by providing secure land tenure andbasic services;

! To undertake programs to help poor communi-ties increase their income and become better ableto pay for housing;

! To facilitate the development of new low-costhousing sites for low-income groups;

! To facilitate the development of resettlement sitesfor families relocated from danger zones, fromland needed for infrastructure projects, and fromother areas; and

! To acquire lands for socialized housing.A 10-point strategy is being pursued to achieve

the goal of the framework. This covers! Encouraging and sustaining community-initi-

ated self-help projects;! Entering into partnerships with the private sec-

tor and civil society;! Supporting private sector initiatives to address

the housing needs of the middle- and higher-income groups, while focusing governmentefforts and priorities on the low-income groups;

! Upgrading slum and squatter communities;! Initiating the development of near-city housing

and resettlement projects;! Implementing schemes that allow the use and

management of idle lands for housing;! Increasing the efficiency of basic services;! Establishing and strengthening HURA to

implement the shelter program;! Implementing livelihood and employment pro-

grams supporting socialized housing; and! Implementing an accelerated squatter preven-

tion and resettlement program, which includescommunity-based monitoring of new construc-tion and entry of informal settlers.

ImplementationTo assist the government of Quezon City in refin-ing and implementing its shelter and urban renewalprogram, a proposal for technical assistance has beensubmitted to the Cities Alliance (CA) for funding.The proposed assistance would finance consultingservices for the preparation of a corporate plan forHURA. More specifically, the consultants would! Define the target market and the business ap-

proach of HURA;! Determine how HURA will pursue its man-

date by defining the scope of its operations;! Prepare the necessary corporate, financial, and

business plans; and! Design and document general policies, proce-

dures, and operating guidelines for HURA.

CommentsSelection of the CityQuezon City was selected as one of the participat-ing cities after the Mayor wrote to ADB expressinginterest in the RETA. Being Metro Manila’s larg-est city in population and land area and having con-siderable development potential aided in theselection, besides the fact that the city has many in-formal settlers and urban poor communities that lackbasic services and amenities.

Understanding and Accepting theCA ConceptThe CA concept was explained to the Mayor andthe city staff at the start of the RETA and severalworking meetings were held with the Technical As-sistance Group (TAG), the City Planning and De-velopment Office (CPDO), and the Urban PoorAffairs Office (UPAO). The CPDO staff under-stood the CA concept and indicated that they hadundertaken a comprehensive participation and con-sultation process while preparing the CDP. The planwas validated through multisectoral stakeholder con-sultations over 3 years.

The TAG was made responsible for coordi-nating with the other departments and with the

62

RETA team in the preparation of the CDS andthe CWS Program. The CWS Program was notas well developed as the CDS during the RETA,and although a shelter development plan was pre-pared by the CPDO in 2001, it has undergonelittle updating since then. Instead, the TAG con-centrated on preparing the HURA proposal forsubmission to the CA and analyzing the data fromthe survey of 197 depressed communities in 2002.In the process, it hardly coordinated with theUPAO, the office that generated the data andworked closely with the urban poor communities.

City Development StrategyClarity of ObjectivesThe CDS objectives were understood by those whodirectly participated in the exercise, particularly thelocal government staff and legislative council mem-bers. No intensive meetings with the communitiesspecific to the CDS were held, since a similar seriesof meetings had just been completed for the CDP.

Learning the ProcessThe responsibility for preparing the CDS was as-signed to the CPDO, but it was suggested at thestart of the RETA that stakeholder consultationmight not be necessary because of the large NGOrepresentation on the City Development Council.The council was considered the most appropriatemultisectoral body for public consultations.

The CDS was based on the CDP and includeda description of the consultation process carried outin the course of its preparation. The CDS presented(i) the conditions in the city, (ii) the socioeconomicand physical development challenges it faced, (iii) itsdevelopment potential and opportunities, (iv) the city’svision and mission statements and priority areas of con-cern; and (v) plans for the various sectors.

OwnershipCPDO staff prepared the CDS with some assis-tance from the RETA consultants. Although un-derstood by the planning staff, the preparationprocess does not seem to have been institutional-ized and is likely to involve other city departmentsand stakeholders in the future. On the other hand,the process of consultation was clearly institutional-ized in the city, as the preparation of the CDPshowed.

City Without Slums Program

While it assumed the responsibility for facilitatingthe preparation of the CWS Program, the TAGgave priority to preparing the HURA proposal tobe submitted to the CA. The CWS Program couldhave been, but was not, based on the shelter devel-opment framework plan prepared for the city in2001.

63

Forward Taguig

ProcessThe Mayor, with the assistance of the MunicipalAdministrator, led the preparation of the CDS. TheMayor emphasized the need to focus on strategicissues such as poverty reduction rather than onlocalized infrastructure improvements.

The Mayor set up a CDS working team andsuggested that the Local Development Council beinvolved in the CDS process. The RETA teamassisted the CDS working team in organizing work-shops and consultations with stakeholders. Asidefrom the training and briefing workshops, the work-ing team organized five consultation meetings withstakeholders, several community meetings, and astrategic planning workshop for the municipalityduring the RETA. These workshops led to the iden-tification of key problem areas, S-W-O-T analysis,vision and mission formulation, and the drafting ofdevelopment strategies on the following three keythemes adopted by the local government: (i) improv-ing the delivery of basic services, (ii) promoting eco-nomic development, and (ii) increasing stakeholderparticipation in development.

The Mayor and the working team agreed that,to complete the CDS process, intervention strate-gies should be proposed and a performance moni-toring system should be developed to indicate theoutcomes of the process.

The initial CDS report is based on the forego-ing approach. A modified copy of the Mayor’s pre-sentation on the CDS for Taguig at the 27 Mayworkshop is in the attached CD ROM under CaseStudies.

Figure 11: Map of Taguig

64


Population High in-migration rate contributing to rapid population growth. Taguig has the highestpopulation growth rate in the National Capital Region.

Housing There were about 25,000 households in informal settlements in 2000. More than halfof these occupied public lands and the rest lived on private land. Services in the infor-mal settlements are far from adequate.

Water and sanitation In 1995, about 43% of households were connected to the piped distribution system ofManila Water Company Incorporated, 36% relied on piped water from deep wells,and 18% bought water from vendors. The municipality has no reticulated seweragesystem. Pit latrines and septic tanks are common.

Flooding About 70% of the area of Taguig has an elevation of only 12.5 meters and is virtuallyflooded for much of the year. Pasig River, the only outlet of Laguna Lake, overflowsinto the municipality during the rainy season and high tide. The constantflooding of Taguig is a serious constraint on its development.

Solid waste Taguig generates 1,180 cubic meters of solid waste per day, on the average. Disposal isa problem because of the threatened closure of landfills serving the municipality. Resi-dents are not properly trained in the disposal and recycling of waste.

Education There is a shortage of elementary, secondary, and tertiary school classrooms, labora-tory facilities, libraries, and related facilities. In 1999, there were 92 learning institu-tions, mostly in Barangay Signal Village, Upper Bicutan, Bagumbayan, and Ususan.

Health Malnutrition in 1999 was higher than in 1998, and was especially high in barangaysBambang, Napindan, and Western Bicutan. Third-degree malnutrition was highest inSignal Village and in Upper and Western Bicutan during the same period.

Transport Traffic congestion occurs daily. Only one (substandard) major road connects the oldtown to the barangays and adjoining areas.

State of the CityTaguig, with a land area of 4,538 has, comprises 18barangays and a 1,626-ha military reservation. It isbounded on the north by Pateros and Pasig City; onthe east by Taytay, Rizal; on the south by Laguna

Lake and Muntinlupa City; and on the west by thecities of Parañaque, Makati, and Pasay. It has a 7.5-kilometer shoreline along Laguna Lake. Two majorrivers, Taguig River and Napindan Channel, feed intoLaguna Lake and are connected to the Pasig River.

In 1995, Taguig had a population of 381,350persons and an average density of 8,403 persons perkm2. By 2000, after growing by 4.45% yearly overthe previous 5 years—the highest rate in Metro Ma-nila—the population had increased to 467,375 (Na-tional Statistics Office). The growth in population,which was attributed largely to in-migration, madeTaguig the sixth most populous among the 17 localgovernment units in the National Capital Region.

Key Problem AreasThe key problem areas relate to seven major themes:population, housing, water and sanitation, flooding,education, health, transport, and solid waste. Thekey problems are as follows:

More than half of theinformal settlementsin Taguig occupypublic lands

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S-W-O-T AnalysisThe analysis was undertaken with stakeholder participation during a series of workshops.

Strength Weakness

! Dynamic local leadership ! Flooding! Availability of developable areas ! Inefficient revenue collection! Proximity to business districts ! Problems with peace and order! Connection to major road arteries (C-5, SLEX, EDSA) ! Infrastructure service deficiencies! Presence of Fort Bonifacio (Global City) ! High in-migration rate

! Undisciplined residents! Limited transport route to Old Taguig and

inadequate transport facilities

Opportunity Threat

! Potential first-class city ! High in-migration rate! Opening of C-6 road along the lakeshore dike ! Unemployment! Tourism and recreation potential along the lakeshore ! Criminality and drug addiction! Presence of IT zone in Fort Bonifacio ! Environmental problems, with the opening of! Large tracts of land for development C-6 corridor! Area of study by international organizations! International funding assistance for housing projects

VisionTaguig aspires to be a premier city, recognized for thequality environment, people-oriented services, and eco-nomic opportunities that it offers to its residents.

MissionThe pursuit of the vision of a premier city will havethree main themes: urban service delivery, economicdevelopment, and participatory development.

Efficient and People-OrientedServices

VisionTaguig envisions a satisfied population.

MissionTo become stronger, the municipality will capitalizeon its strengths and understand and minimize itsweaknesses.

Interventions! Build local government capacity through

- Leadership by example;- Staff training; and- Transparent, accountable, and responsive

local government.

! Improve social services, particularly- Health;- Education;- Environment and sanitation; and- Peace and order.

! Improve infrastructure and utilities.! Improve housing.

Economic Development

VisionThe vision of the municipality is to be a model of ahighly progressive and innovative community in thesoutheastern part of Metro Manila.

MissionIts mission is to increase employment, provide train-ing, and make elementary and secondary educationcompulsory.

Interventions! Implement the municipal ordinance encourag-

ing employers and investors in Taguig to hireat least 70% of their employees from themunicipality;

! Coordinate with the agencies concerned in jobplacement and in the conduct of training, voca-tional, and short-term technical courses;

! Strengthen opportunities for tourism and rec-

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22 ADB Technical Assistance No. 3760: Metro Manila and Ur-ban Services Project.

reation along the Laguna Bay lakeshore byregulating development in the area and edu-cating the residents; and

! Capitalize on the presence of the Global Cityand the FTI, Veterans Center, and RSBSIndustrial Estate to create employment.

Participatory Development

VisionThe vision of the municipality is to improve gover-nance through a high degree of community partici-pation.

MissionThe mission is to promote leadership by example,and to encourage and sustain participation in devel-opment.

Interventions! Inform the residents about the local government’s

policy on community participation; and! Implement a monitoring and feedback mecha-

nism to sustain participation.

Monitoring, Evaluation, andFeedback MechanismThe municipal government, in consultation withstakeholders, is developing a monitoring system that,to start with, will include indicators of performancein providing basic services.

Cities Without SlumsProgramPopulationThe population density is 10,300 persons per km2,slightly lower than the 15,617 persons per km2 forthe entire Metro Manila. About 55,000, or 11%of the population, live in depressed areas. This trans-lates into 16,500 families, at an average householdsize in these areas of 3.4 persons.2 2

Informal SettlementsAbout 18,200 families live in informal settlements,mostly (9,869 families) on government land. Hav-ing huge tracts of land available for urban develop-ment is an advantage, but it has also proven to be aproblem, since it has made Taguig attractive to mi-grants and informal settlers.

Problems and IssuesThe foremost problem related to informal settlementsis squatting in danger zones, especially alongriverbanks, railroad tracks, and road rights-of-wayof government projects. Private lands have not beenspared. Professional squatters and squatting syndi-cates continuously victimize informal settlers andthose who allow themselves to be victimized in theinterest of having a place to stay.

There is generally a lack of affordable housing,not only in Taguig but also in other local govern-ment units in Metro Manila. Taguig does not havethe resources, technical or financial, to respond toits growing shelter needs. The price of land has risentremendously, and the government agencies that stillown land in Taguig have not been very keen on mak-ing their land available for socialized housing.

Because of its available open land, Taguig hasbeen considered for a variety of land uses that otherlocal governments in Metro Manila deem undesir-able. A penitentiary, a wastewater treatment plant,and a resettlement area for the informal settlers ofother cities in Metro Manila are among these landuses. To other cities, Taguig, though still within theboundaries of Metro Manila, is on the peripheryand not in the heart of the metropolis.

Development StrategiesTaguig has devised strategies and implementedaction programs, no matter how seemingly minus-cule, and even without a shelter plan, in an attemptto address the requirements of the urban poor. As afirst step, it organized the Urban Poor Affairs Of-fice, the Local Housing Board, and the Local Utili-ties Board. Taguig has made it a policy to house itsinformal settlers within the municipality, and hasinitiated and funded community mortgage projects.Its housing strategies include (i) facilitating the con-struction of affordable housing for the poor in part-nership with the private sector, NGOs, and people’sorganizations; (ii) upgrading slums, resettling slumresidents, and providing more secure land tenureand infrastructure and other basic services; (iii) pre-venting squatting; (iv) coordinating its housing andresettlement programs with those of the nationalGovernment; (v) reviving the economy through skillstraining, livelihood promotion, and small and me-dium enterprise development; (vi) building the ca-pacity of LGU staff, NGOs, and people’s

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organizations; and (vii) forging partnerships withNGOs, POs, and the private sector including de-velopers.

Proposed Plans, Programs, andProjectsThe municipality has also proposed several projectsfor the urban poor, which it intends to implementwith other government shelter agencies, the privatesector, and NGOs. RA 72792 3 requires the prepa-ration of a shelter plan as an important first step indetermining the magnitude of the problem and iden-tifying the necessary strategies for dealing with it.These projects include (i) developing affordablehousing, including socialized housing, core hous-ing, and medium-rise buildings; (ii) developing ser-viced resettlement sites and new housing areas;(iii) upgrading informal settlements; (iv) relocat-ing households from danger zones; (v) constructingtemporary housing; (vi) relocating households fromillegal structures and demolishing the structuresunder RA 7279; (vii) making an inventory of va-cant land for socialized housing; (viii) reviving theeconomy by promoting small and medium enterpriseand livelihood development; and (ix) training andbuilding the capacity of LGU, NGO, and PO staff.

Taguig has several large tracts of land owned 23 Urban Development and Housing Act of 1992.

by the government. The largest of these are theNational Shrine Area (120 ha) and the BonifacioHousing and Information Technology Zone (110ha), followed by the Road Dike Project, which isexpected to generate 49 ha. The other governmentproperties are (i) the Department of Transporta-tion and Communications Compound (23 ha), (ii)Camp Bagong Diwa (19 ha), (iii) Population Com-mission Area (11 ha), (iv) Consular Area (10.7ha), (v) Department of Public Works lot in LowerBicutan (10 ha), (vi) Bases Conversion Develop-ment Authority (13 ha), and (vii) Philippine Na-tional Railway site.

According to the Metro Manila Urban Ser-vices Project, Taguig will need to upgrade 5,200housing units and build 24,000 new units to ac-commodate new as well as resettled households.

Priority ProjectsTaguig has implemented two housing projects withHabitat for Humanity: (i) the Calzada Project,which involved the construction of 18 housing units;and (ii) the Paglingon row housing, under thePaglingon Neighborhood Association. Anotherproject assisted by Habitat for Humanity is under

Huge tracts of landmake Taguig attrac-tive to informalsettlers

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construction in Pinagsama Village and involves theconstruction of 96 housing units in eight three-storymedium-rise buildings. Taguig is also implement-ing six community mortgage projects.

Development PartnersAll of these projects, particularly those with privatesector assistance, are being jointly implemented withthe Taguig Multisectoral Group, which is composedof Habitat–National Capital Region, PhilippineBusiness for Social Progress, Fort Bonifacio Devel-opment Corporation, Foundation for the Developmentof Urban Poor, and Ayala Group of Companies.

Other government organizations involved in theprojects are the Housing and Urban DevelopmentCoordinating Council, National Housing Author-ity, National Home Mortgage Finance Corporation,and Technical Education Skills and DevelopmentAuthority.

CommentsSelection of the CityTaguig’s participation in the MMUSP made it a suit-able candidate for the RETA. The RETA team vis-ited the municipality, was briefed by the MMUSPconsultants, and immediately secured the commitmentof the Mayor and senior executives. A counterpartteam was established and work began immediately.

Understanding and Accepting theCA ConceptThe Mayor drove the exercise. He supported theprocess of participation but declared that, in the ab-sence of a consensus, someone would have to makethe final decision. “At a certain point all the talkinghas to stop and someone has to decide and takeaction,” he said. The Mayor expected the municipal-ity to achieve the needed focus and to prove that changethrough the CDS process was possible. He also be-lieved in people empowerment—a key element in sus-taining the CDS process and CWS Program.

Counterpart TeamThe RETA team assisted the core team in devel-oping the CDS Program. Most of the core teammembers were contractual employees who had otherresponsibilities in the municipality and could not beinvolved full time. Those tasked to prepare the CWSfor Taguig were weighed down by meetings and otherdaily responsibilities. Nevertheless, there was inter-est and support for the exercise. Senior officials of

the municipal government supported the core teamand met them as needed.

City Development Strategy

Clarity of ObjectivesThe objectives were clear to all those who directlyparticipated in the exercise, particularly the local gov-ernment staff and legislative council members. How-ever, intensive meetings with the communities couldnot be undertaken for lack of time and resources.

Learning the ProcessThe CDS process was clarified in meetings andworkshops with the core team. Three of the four ques-tions central to the CDS process—where are we now?where would we like to be? what issues do we need toaddress? how do we get there?—were answered andthe answers were part of the Mayor’s presentation atthe Final Workshop on 27 May. The Mayor pro-posed a framework of action developed during theCDS process, which included three unifying themesfor stakeholder action. These themes were delivery ofpeople-oriented services, participatory governance, andprovision of economic opportunities.

The Taguig CDS outlined short-term andmedium-term programs but did not identify the workto be done to! Prioritize programs and projects to be imple-

mented;! Mobilize stakeholder support for program

implementation;! Agree on an investment plan; and! Establish information dissemination, monitor-

ing, and performance management procedures.Guidelines prepared during the RETA pro-

pose performance management as a tool for mea-suring the success of CDS outputs and process. Onepart reads,

It should be emphasized that where city re-sources are limited it may be realistic to compileperformance indicators relating only to the priorityconcerns of the city. This allows the city to evaluatethe usefulness of the initial data collected and refinethe process as it expands coverage of the CDS.

Whatever their limitations, the cities must havelocal government processes with a self-sustainingculture of continuous improvement built in.

OwnershipThe stakeholders, led by the municipal government,supported the CDS. It was the product of a series

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of consultations and meetings between June 2002and January 2003 with representatives from nationalgovernment agencies, private utility companies, andthe communities. The fact that the local chief ex-ecutive accepted and understood the concept of theCDS made a difference.

City Without Slums ProgramMunicipal Ordinance No. 12, approved in May2002, created a Municipal Development and Hous-ing Office (MDHO) to prepare, implement, andcoordinate shelter programs for Taguig in accordancewith Republic Act 7279. The main focus ofMDHO is housing for the poorest 30% of the popu-lation. There have been several community mort-gage projects in Taguig, and two housing schemesinitiated by Habitat for Humanity. But their impactis small. Only 42 out of about 20,000 families inTaguig that need housing have benefited from thetwo Habitat-assisted projects.

MDHO, being new, lacks the staff resourcesand the capacity to implement a housing programfor the municipality. Taguig has referred toMMUSP a review of the conditions affecting shel-ter in the municipality; the policy environment forland, housing, and related infrastructure; and theproposed pilot project in the Bonifacio Housing andInformation Technology zone.

The Mayor has also consulted with various

groups and looked into possible options for widen-ing the reach of local shelter programs. A key initia-tive is a proposal to use idle national Governmentland in Taguig (reportedly more than 1,000 ha) forlow-income housing for qualified squatters and slumdwellers. The land would be acquired by the localgovernment, which would then enter into joint ven-ture agreements with the private sector to developthe sites for mixed commercial and residential use.In the first phase of the project, high-density hous-ing would be built and rented out to the urban poor.Profitable commercial development would be partof subsequent phases. Although this proposal di-verges from the CWS Program concept of slumupgrading, it is considered a valid approach to theproblems of the increasing demand for low-costshelter in a rapidly urbanizing city. Further detailsof this proposal are being prepared.

One lesson that can be drawn from the imple-mentation of poverty reduction strategies is the needto involve and empower the community. Severalcases in Taguig show that slum upgrading or urbanservice improvement projects cannot be sustainedwithout community participation. Residents ofDamayan (200 families) and Dream Village (500families) have formed neighborhood groups to improvewater supply service delivery. Their small profit fromwater vending goes to community improvements or toland title documentation and processing.

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Summary and Conclusions

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Lessons Learned

What Have We LearnedSo Far?The CDS and CWS Program are just starting tobe implemented; whether they are making a differ-ence, it is too soon to tell. Nevertheless, these areuseful initiatives that, particularly in developed coun-tries, have produced better outcomes than more tradi-tional approaches to city planning and management.

The CDS initiative matches the philosophy oftoday’s development agenda. Its focus should be oneconomic and social development, and on improvedgovernance as a means of spurring regional growthand reducing poverty. The CDS should guide thedevelopment of a city and contain action plans thatare agency-specific and time-bound. Investmentplans and a financing strategy are essential compo-nents. The CWS Program should be integrated withthe CDS and set within the context of the city’spoverty reduction programs. The development ofboth the CDS and the CWS Program should beparticipatory.

What is clear is that participatory approachesand consensus take time to build, especially wherethese are not part of the stakeholder culture or tra-dition. The RETA experience indicates that it islikely to take a year or two to move from formula-tion to implementation.

CDS and the CityCDS Improves Understanding ofCurrent Problems and FutureDevelopmentThe CDS product is neither a master plan nor ablueprint. Instead it focuses on change and adopts

a flexible strategy for responding to economic reali-ties and competition. The CDS helps build stake-holder capacity to manage city development, andenables the private sector to position itself withinnational, regional, and global markets. The CDSprocess can change the way a city is managed byfocusing on a new economic structure.

The CDS process can also change attitudesabout the nature of development and the causes ofand solutions to economic problems. This was evi-dent in Calicut, where the city’s vision pertained toits role as a regional center. Economic developmentto support the growth of the city and the reductionof poverty must be encouraged. These emerged askey strategic issues and objectives in all the RETA-assisted cities. The CDS enabled an initial focuson a limited number of priority issues within a city.But the focus must then change, from specific tobroader issues. In this way, there will be a greateracceptance of development processes and the un-derlying causes of problems.

Economic Foundations of a CDS AreEssentialMost city stakeholders participating in the RETAagreed that a CDS should address the issues of eco-nomic development and poverty reduction. How-ever, many of the RETA-assisted cities had neitheranalyzed the economic base nor made appropriateprojections of economic activity. Development pros-pects were merely based on what was thought to belikely and not on hard data. In many instances thiswas because the necessary data were not availableand could not be prepared during the RETA.

An important feature of the CDS is for a cityto create the internal institutional capacity and seek

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political support to innovate and respond to currenteconomic realities. More specifically, the CDSshould focus on promoting the city as an attractivedestination for national, regional, and global invest-ment. To achieve this it may be necessary to carryout surveys and additional research and analysis.Such activities need to be identified and could beincluded as part of a follow-on TA or prepared forpossible CA funding assistance.

The CDS Highlights Something Newor Unique about a CityA successful CDS calls attention to unique featuresof a city and builds on these for the future. Taguig,for example, is unique in that it has the Global Citydevelopment area—a major urban developmentproject led by the private sector—within its bound-aries. Ultimately the future of Taguig will dependon the success of Global City in attracting locatorsand employment for its residents. Da Nang andQuezon City also have unique features that must beexploited. Da Nang is a key city in the central re-gion of Viet Nam and is a major port and touristdestination. Quezon City has extensive areas ofundeveloped land in densely developed Metro Ma-nila and has major institutions of higher education.All of these unique features with high investmentpotential should be highlighted in the CDS.

Global, Regional, and Long-TermThinking Is RequiredCities do not function in isolation. Their economiesare closely involved with those of neighboring citiesand surrounding areas. All of the participating cit-ies have regional influence extending beyond theirboundaries. Some also have global significance.

A CDS is a strategic planning document thatmust take into account the national, regional, andglobal environment. A conducive national policyframework is important. For example, it appears thatthe need to conform to central Government plan-ning controls, policies, and approved master plansconstrained the CDS for Da Nang. Although theireconomies are interlinked, the three cities in MetroManila took limited account of the presence of neigh-boring authorities and adopted a more inward-looking master plan approach in preparing theirCDSs. Clearly, national-regional-city links are im-portant, and the CDS should forge better relation-ships between the cities and the national Governmentin economic development policies.

Strategic planning for a city involves thinkinglong term, over at least the next 10, or preferably15 or more, years. Such thinking was constrainedwithin the participating cities, which often focusedon short-term political agenda. There is clearly aneed for continuity to ensure that the vision andmission for a city do not change with a change inleadership. Mayors often view city development interms of the need to ensure reelection, and newlyelected mayors often ignore or reject inherited strat-egies and policies.

Funds Are Needed to MaintainMomentumMany of the participating cities clearly thought thatwithout specific funding support it would be diffi-cult to maintain the momentum of a CDS. Talk butno action often leads to stakeholders becoming dis-illusioned. No city in the RETA prepared detailedfinancial plans or financial strategies to supportimplementation. Many participants felt that the abil-ity to implement a CDS is linked to securing pro-gram and project funding. But, in many cases,improved municipal management is a priority, andfor this little additional money is needed when theimprovements themselves can generate more thanenough revenues to cover the costs. However,investment funds are required when a CDS is de-signed to address broader issues of economic andsocial development.

The CDS/CWS Program should be tied upwith the efforts of funding institutions so that it doesnot become a purely academic exercise.

More Than One Way toPrepare a CDS/CWSProgramStandard Methods Exist, but CitiesHave Their Own ApproachExperience gained in the course of the RETA showsthat there is no single “right” way to prepare a CDS.Although there are standard methods and support-ing guidelines were provided, each of the five par-ticipating cities prepared its CDS in its own way.Taguig, Calicut, and Da Nang came closest toadopting the process suggested by the consultants,while Quezon City and Caloocan adopted ap-proaches based on their city development plans.Other cities in the Philippines use the CDS

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process suggested by the World Bank, but even here,actual implementation has varied between cities. Asuccessful CDS is one that is owned by the stake-holders, and, as no two cities are the same, differentapproaches are to be expected.

The RETA has also shown that the CDSproduct varies. It is often related to the differingneeds within a city or to its stage of development,size, and economic structure. The CDS initiativeevolves through stages, and perhaps the RETAapproach of attempting comprehensive coverage atthe outset, partly because of limited time, was notthe most effective way forward. Focusing on a morelimited range of issues, as in Da Nang, Calicut, andTaguig, proved to be a more productive approach.

The RETA therefore indicates that in citieswithout experience or prior knowledge of the pro-cess, it may be best to start with a single sector issueand then expand coverage later. However, this mustbe undertaken without forgetting that a full-fledgedCDS focuses on the city as an engine of growth,and needs to address the full complexity of all sec-tors of development.

CWS Approach Must Be FlexibleBroad guidelines for the preparation of a CWS Pro-gram are set out in this report. However, beyondthe underlying principles of linkage to the CDS andstakeholder participation, the approach must be flex-ible and consistent with the realities at any giventime. The following must be considered when pre-paring a CWS Program: (i) availability of humanand financial resources, (ii) relative status of theCDS, (iii) availability and reliability of data, (iv)nature and extent of urban poverty and slum forma-tion, and (v) other competing urban developmentpriorities. Full account also has to be taken of thevalidity of alternative approaches to the creation ofa slum-free city, which in some instances may notsupport conventional slum upgrading solutions basedon landownership.

Appropriate Analytical Tools MustBe UsedIn general, the analysis part of the CDS was inad-equate. Very little data on the socioeconomic andphysical aspects of the city and the likely changeswere collected and analyzed. Except for overallpopulation projections, no estimates of future eco-nomic activity or demand for services and utilitieswere made. S-W-O-T analyses were based on

incomplete data on current conditions within the cityand likely external (national or regional) influenceson growth. In some cities this led to a number ofproblems in identifying and focusing on real con-cerns and then prioritizing problems and action ar-eas. Clearly, there is a need for more rigor in decisionmaking, and for much better technical information.The appropriate analytical tools must be used andthe focus must be on the results. Rapid economicappraisal methods are required. Using appropriateanalytical tools is important and often leads to newinsights into the key drivers of change and possibleways in which the city stakeholders can intervene.

Participation Is the KeyCity Must Accept Need for CDSBefore Embarking on ProcessAt the outset, the city mayor or senior executive mustgenuinely appreciate and accept the need for a CDS.The mayors of both Taguig and Calicut showed es-pecially keen interest, and it appears that they andtheir staff learned much from their involvement inthe CDS process.

A CDS should never be imposed. The ap-proach is more likely to succeed if the city is alreadyfocused on improving governance and is preparedto raise the resources needed, including funds, tocarry out the major interventions outlined in the strat-egies that support the vision.

Stakeholder Participation Is the Keyto OwnershipStakeholder participation is a defining feature of aCDS. The process should empower all participantsand lead to new ways of thinking about develop-ment. A CDS requires the active participation ofeveryone in a city, including the business sector, civilsociety, residents, government, and most importantlythe urban poor.

For the most part, the CDSs for Da Nang,Calicut, and Taguig were prepared following theguidelines suggested by the RETA team, althoughthe actual degree of participation varied consider-ably. In Da Nang, the highly centralized politicalstructure of Viet Nam proved too inflexible for thedevelopment of a fully participatory CDS. As aresult, local officials were unwilling to take majordecisions without central Government approval, andthere was limited consultation with stakeholdersoutside government. Initial meetings were held to

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discuss the CDS/CWS Program, and although allwere in agreement, there were no follow-onmeetings with stakeholders. The city felt that itneeded additional assistance to undertake theseconsultations. No additional resources were avail-able under the RETA for this, but arrangementswere made for a training program for the Da Nangcore team and stakeholders, to be provided jointlyby ADB and the UN Urban ManagementProgramme/UN-Habitat. The training programwas, however, delayed.

In Calicut, stakeholders met to identify and dis-cuss the main problems and potential of the city. Avision/mission statement was drafted during consul-tations with stakeholders. Some 50 consultationswere held with various groups. A draft CDS andCWS document was produced and discussed withthe stakeholders.

In Taguig, a number of participatory meetingswere held. These led to a better understanding ofthe critical problems of the city, the formulation of acollective vision, the identification of the key sectorsor “pillars of development,” and the drafting of sec-tor development strategies.

In Quezon City, so as not to “reinvent thewheel,” the CDS was based on the existing devel-opment plan. In a process similar to that for a CDS,intensive discussions were held to mobilize the sup-port of citizens for the city’s vision and programs.Of all the participating cities, only Quezon City heldconsultations that reached the barangay or neigh-borhood level. The multisectoral City DevelopmentCouncil, which included representatives from theurban poor, NGOs, and the private sector, was alsoreactivated.

Securing stakeholder ownership, particularlyfor an agenda embodied in a CDS, is critical. Own-ership is achieved through participation, but it hasto be more than just consultation. All must buy intothe stages of a CDS process and the sense of own-ership must continue. One way of achieving com-mitment is to assign specific responsibilities in theprocess to different stakeholders. Managing the par-ticipation and ownership process is complex but mustbe undertaken. This is why procedures guarantee-ing participation and decision making must be es-tablished from the outset to ensure transparency.Clearly, firm stakeholder commitment and owner-ship are required when a CDS is designed to ad-dress broader issues of economic and socialdevelopment.

Participation Takes TimeAlthough it was originally scheduled for about 9months, the RETA was implemented over an 11-month period, from July 2002 to June 2003. Thisgives some indication of the time needed to secureacceptance and understanding of the unfamiliarCDS/CWS concept in participating cities, andmanage meaningful participation.

Participation requires time and resources to(i) identify the stakeholders and their representa-tives, (ii) establish the avenues for communicationand participation, (iii) analyze the results of the ex-ercise, and (iv) ensure continued stakeholder par-ticipation up to approval and implementation. InWellington, New Zealand, in a society with long-established processes of participation, the consulta-tion process lasted for 18 months. Much more timewould be needed for participation in developingcountries where (i) governments tend to safeguardtheir domination and control of the public sector(India); (ii) systems of governance and economiccontrol are highly centralized (Viet Nam); and (iii)genuine consultation and participation is often ac-corded mere lip service (Philippines).

The RETA timetable allowed only a fewmonths for participation and had insufficient re-sources to nurture the process within each city. Inthe design of future TA projects in which participa-tion is an essential requirement, more considerationneeds to be given to the time needed for consultantsto assist in a genuine participation process. It is nocoincidence that a high percentage of CA fundingis for CDS/CWS Program preparation.

There is a need to develop an effective methodol-ogy for participation in all countries that balances theneed for rapid appraisal and quick results with moreextensive forms of participation. Perhaps a period ofparticipation spread over one year would be ideal, firstto set up the system, then to carry out the exercise,and finally to assess the findings and reconfirm themwith the key stakeholders. Anything less would be tooshort and is more likely to be dominated by the citygovernment. Longer periods, although producing moreexhaustive findings, may not provide any more signifi-cant results and insights than the shorter process, andwould set back implementation.

CDS Requires a ChampionFinding and supporting a CDS champion, in mostcases the mayor, senior executive, or senior advisor,is an important first step. However, the problem the

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champion has to face is how to generate support forthe process within the city, and then, within alimited time frame, how to (i) institutionalize thissupport to ensure stakeholder commitment and par-ticipation; (ii) identify and agree on stakeholder rep-resentation; (iii) coordinate the CDS agenda; (iv)manage stakeholder inputs; and (v) generate thedata, information, and level of analysis to enablestakeholders to make strategic judgments.

In many cases, lead responsibility for drivingthe CDS process was assigned to the local city plan-ning department. This has some advantages in thatplanning staff see the city as the unit of analysis inplanning. However, many city planners often focusmore on physical development such as land use, andmay neglect the economic basis of city developmentand the need to plan within the city’s resource limi-tations. It would therefore have been more appro-priate if responsibility for CDS preparation fellunder the direct authority of the mayor or seniorexecutive, with support from the relevant planning,infrastructure, economic development, resource gen-eration, and urban poor affairs departments in localgovernment, as well as local consultants whererequired.

Vision Should Be Realistic andAttainableMany CDS vision statements were too general andnot supported by more specific mission statements.A vision reflects the collective views of the majorstakeholders of a city, but must be based on realityand on what is achievable. Its supporting missionstatement should be SMART—SSSSSpecific, MMMMMeasur-able, AAAAAttainable, RRRRRelevant, and TTTTTime-bound. Be-ing realistic about objectives is important, andlong-term goals and strategies should be supportedby specific short-term objectives, which become thefoundation for long-term outcomes. Early successesoften greatly facilitate stakeholder “buy-in.”

Poverty Reduction Is thePriorityPoverty Should Be SpecificallyDefinedPoverty is a multidimensional issue and there is nounique way of measuring it. Its causes should bemade clear, so the most appropriate policies for re-ducing poverty can be determined. Besides consid-erations of income, employment, and wages, ADB’s

definition of poverty includes the lack of access tosecure tenure, basic education, health care, water,and sanitation, as well as exclusion from relevantdecision-making processes.

CWS Approach Must BeMultisectoralThe CA suggests improved access to legal tenureand sanitation as key performance indicators for theCWS Program. But the CWS Program must alsotake account of other facets of poverty. It mustincorporate socioeconomic initiatives to stimulateeconomic regeneration and social development, andincrease the self-reliance and empowerment of poorurban communities. The concept of improved gov-ernance and increased participation by the poor indevelopment is not just part of an agenda for socialequity. It also has practical value in that it reducesthe burden on governments’ limited resources andsupports the long-term sustainability of programdevelopment.

CWS Program Must ConsiderPolitical RealitiesThe political climate in which the CWS Program isbeing prepared and implemented must be consid-ered from the outset. There needs to be a realisticassessment as to whether there is genuine politicalsupport for the CWS Program approach involvingmaximum stakeholder participation, empowermentof the urban poor, secure tenure, and on-siteupgrading.

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Such support may not exist in all instances. InViet Nam, the central Government, which dictatesnational development policy, regards slum settle-ments as “temporary housing” for resettlement, andgives limited policy support for multisectoral urbanupgrading through a participatory process. The lackof central Government support is one of the pri-mary causes of Da Nang’s failure to complete evena draft CWS Program under the RETA.

Elsewhere, as in some cities in the Philippines,whether senior executives adopt the CWS Programmay depend more on the cycle of local governmentelections rather than on any real commitment to theapproach.

Strengthening theStakeholdersLearning by Doing: Building CapacityIs a Key CDS OutcomeBefore the RETA, none of the participating citieshad undertaken a CDS exercise, although all hadhad experience in preparing city development ortown plans. As a result, city staff had to be care-fully guided, and the most effective way of learningwas through “hands on” training. Neither the in-termittent nature of the RETA nor its limited allo-cation of time in the field in direct contact withcounterparts (especially in Calicut and Da Nang)lent itself to this approach.

A significant benefit of the RETA has been toimprove the city’s capacity to manage the CDS pro-cess. In Taguig, Calicut, and Da Nang assistancewas provided in training staff in the process, andTaguig and Calicut now have some capacity to con-tinue. This will enable the cities to make more in-formed decisions and to create the internalinstitutional and political capacity to innovate andrespond to emerging economic realities. The focusshould be on the civic leadership and diagnostic roleof local governments, which would enable the pri-vate sector and civil society to take the lead in eco-nomic growth and development.

Understaffed City GovernmentsCould Not Devote Enough Time toProcessAll participating city governments had neither thestaff nor the expertise to effectively carry out andcomplete the CDS and CWS Program process.Most counterpart government staff were expected

to combine CDS/CWS Program involvement withtheir normal assignments, which were often givenpriority. Many senior local government staff assignedto CDS/CWS Program preparation were also thosewhose skills were most in demand, and were there-fore involved only on an irregular, part-time basis.

For successful CDS/CWS Program prepara-tion, a senior full-time staff member must be assignedto manage the process, and given the support of keyprofessionals when needed. Constant secretarialsupport will also be required, particularly to orga-nize and document meetings with stakeholders. Oneway to strengthen the process would be for city gov-ernments to hire local consultants to help managethe process.

Donor Support Can Be ImportantThe evidence from the RETA indicates that donorsupport is important in helping city managers takethe CDS process forward. External agencies, suchas ADB, can play a major role in helping city stake-holders prepare and implement a CDS. But suchassistance is needed over a long period and shouldbe flexible. For ADB, a key issue is the uncertaintyof a lending program following support for a CDS.Nevertheless, if the development institution supportsthe CDS, should a lending program be one of theoutcomes?

Key requirements for ADB under a CDS arethat prior consultation with the key stakeholders hastaken place and priority investment sectors have beenidentified. Both of these are preparatory to the for-mulation and implementation of urban developmentprojects.

A CDS implies a different approach for ADBthan past lending approaches. A CDS focuses moreon programs than on specific projects, but is able toset the context within which specific urban develop-ment projects are conceived. Since a CDS involvesparticipation and ownership, it can lead to unex-pected outcomes. Nevertheless, an urban develop-ment project set within a CDS framework is likelyto improve the effectiveness of ADB lending.

CDS Should be Proactiveand Incentive-BasedPrivate Sector Should Be InvolvedThe involvement of the private sector was seen to beessential by most local government stakeholders.This reflected an increasing need to mobilize

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private sector resources to support city development.However, it appears that some city administrationsare not clear about how to proceed beyond involv-ing the private sector in the provision of infrastruc-ture and utilities or attempting to respond to theirsupply-side needs. Far more focused and practicalthinking is required.

As local governments seek closer collaborationwith central Government agencies, so should theyalso initiate and sustain capacity building programsto develop greater self-reliance in poor urban com-munities, and forge partnerships with the privatesector to maximize the resources available for pov-erty reduction.

Future Slum Formation Should BeAnticipatedAs the name suggests, the CWS Program targetsthe elimination of slums in urban areas mainlythrough a process of upgrading. However, despitethe focus of the CWS program on existing slum andsquatter settlements, the issue of future slum forma-tion should not be overlooked.

Given rapid urban population growth, it is likelythat the demand for low-cost shelter in participatingcities will increase substantially. If this demand isnot met, existing slums will expand and new oneswill form. The CWS Program must therefore in-clude the provision of affordable new housingtogether with support services and facilities to pre-vent future slum formation. New low-incomehousing sites must be identified and developed tosatisfy demand, and to accommodate displacementbrought about as a result of upgrading. The impor-tance of anticipating future growth highlights theneed for close linkage with the CDS, especially itsspatial planning and land use components.

Networking to FormAlliancesSharing experience is important. Since the CDS/CWS Program is owned by the cities, it should betheir representatives that disseminate information,experience, and lessons learned. The proposed re-gional workshop would have created such an op-portunity, but because of the SARS outbreak,attendance was restricted to cities in Metro Manila.

Discussions are needed to learn from the expe-riences of other cities engaged in the process. Learn-ing can take place only if others were to show what

works and what does not. Besides workshops, knowl-edge can be shared by city twinning, staff secondmentbetween CDS cities, private and public sector mis-sions, and use of the Internet.

In networking between cities, the RETA’sachievement to date has not been that significant.There was no connection to the Internet in the citygovernment offices in Da Nang, Taguig, andCaloocan for most of the RETA period. Resourcesposted on the web would have helped the cities de-velop their CDS options. For example, the web sitewww.cdsea.org contains a wealth of information,from other CDS experiences to resource papers, thatwould have helped in the formulation of local hous-ing programs.

The RETA team collaborated with the CA inNew Delhi to provide the Calicut core group withan opportunity to participate in a stakeholders con-sultation meeting in Hyderabad. Calicut officialsfound this useful and saw information sharing as aresource that they could tap into because of theirinvolvement in the CA.

Monitoring Is a MustMonitoring and evaluation of the CDS and CWSProgram is an essential component and should be-come an integral part of the process. Because of theearly stage in CDS/CWS Program development inthe cities, little thought was given to the dissemina-tion of monitoring and evaluation procedures by theparticipating stakeholders. It is important to docu-ment the progress of the CDS/CWS Program andto amend the CDS implementation plans, programs,and projects as required. Approaches would cover,among others, the incorporation of regular reportson the CDS/CWS Program into an annual reporton the city, stakeholder and community meetingupdates, and the use of evaluation frameworks andmethodologies and monitoring benchmarks.

The RETA in RetrospectSelection Criteria Were Needed forParticipating CitiesThe participating cities should have been selectedbefore the start of the RETA. As it was, time thatcould have been better spent by the RETA teamon technical support had to be spent identifying theparticipating cities and redefining the scope of theRETA in the five cities.

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Beyond consideration of balanced geographicspread, cities could have been selected according tocriteria such as the following:! Existence of a potential development partner

for the city to support CDS/CWS programimplementation;

! Unambiguous support of central, state, andlocal governments (as appropriate) for theunderlying CA approach, especially for aspectsrelated to stakeholder participation;

! Potential role for the city in national or regionaleconomic development, as a realistic basis forpreparation of a CDS;

! Recognition of poverty reduction as an urbandevelopment priority; and

! Existence of in-house technical capacity to pre-pare the CDS/CWS Program.

Participating Cities Should HaveBeen Briefed at the StartThe RETA would have benefited from an initialbriefing of selected cities by ADB, before its start.This briefing would have provided the first oppor-tunity to (i) present the CA approach and the scopeand objectives of the RETA, (ii) clearly defineCDS/CWS program ownership and the relativeroles of the cities, ADB, and the RETA team,(iii) dispel any confusion within the cities regardingother ADB initiatives, and (iv) describe the likelybenefits that could accrue from involvement in theCA.

Such pre-RETA preparations would have (i)allowed more time for technical advice and assis-tance, (ii) smoothed the way for collaboration be-tween the RETA team and the city, (iii) addedcredibility through firsthand ADB involvement, and

(iv) allowed early identification of key stakeholdergroups.

Greater ADB Involvement WouldHave Been InvaluableADB’s regional representatives in India and VietNam played an important role in discussions withnational government agencies leading to the selec-tion of participating cities. Regional representativesalso met the RETA team on several occasions dur-ing the initial stages of the RETA to provide back-ground data on the participating countries, cities,and relevant development sectors, and to help setup meetings with key government agencies. But be-yond this, the representatives had little further di-rect involvement in the RETA.

Given the intermittent nature of the consult-ants’ inputs, with only limited opportunity for fieldvisits to India and Viet Nam, further support wouldhave been invaluable, particularly in (i) monitoringprogress and providing feedback on CDS/CWSProgram preparation; (ii) following through on keycity concerns, such as Da Nang’s concern abouthaving its participation confirmed by the centralGovernment; and (iii) informing the RETA teamof other relevant donor involvement, includingADB’s.

Enough Time Should Have BeenAllowed for StakeholderParticipationSince an effective CDS/CWS process, includinginternal stakeholder deliberations, takes time toorganize, apply, and monitor, more time, or at leastan initial preparatory phase, should have been setaside for setting up participatory mechanisms.

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The Way Forward

24 Mayor Sigfrido Tinga, Taguig, 10 June 2003; and Mayor ReyMalonzo, Caloocan, 12 June 2003.

Wrap-Up Meetings withMetro Manila MayorsWrap-up meetings were held between the RETAteam and the two Metro Manila mayors in mid-June 2003.2 4 The mayors indicated that the RETA,and particularly the concluding workshop, had beena valuable learning experience and had helped clarifytheir approaches to development strategy formula-tion and to the search for an appropriate solution tothe growing number of slum and squatter settlements.Involvement in the RETA had also exposed weak-nesses in the capabilities of their CPDO andUPAO technical staff, prompting the local govern-ments to put in place certain reorganization andstrengthening measures.

The two mayors aired new proposals for deal-ing with the issue of slums and squatter settlements.Although they differed in detail, both proposals cen-tered on the acquisition and development of the largetracts of vacant or underused national governmentland into areas where households from slum settle-ments could resettle and other poor households couldavail themselves of affordable housing. Regrettably,these proposals were not documented and came toolate in the RETA to be included in this report, al-though details are now being worked out. However,two important conclusions can be considered in tak-ing the next steps and formulating a possible follow-on RETA:

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! That the RETA has stimulated momentum inlocal governments that will continue beyond itscompletion; and

! That the resolution of slum-related issues inMetro Manila relies on the involvement andcooperation of the national Government in mak-ing its vacant lands available for development.

CDS/CWS Program a“Work in Progress”The RETA provided advisory services designed toengender local ownership through participatory CDS/CWS Program preparation. Beyond the initial pre-sentation introducing the CA and the scope and pur-pose of the RETA, the preparation and explanationof CDS/CWS Program guidelines, and limited first-hand technical support backed by long-distancecommunications, the RETA was essentially reactiveand could only respond to production at the local levelwhen it was made available. The final CDS and CWSProgram documents from the participating cities arestill undergoing production, following the conclusionof the RETA. Measures to ensure the continuationof this process are an important consideration in anyfollow-up initiative on the part of ADB or any otherdevelopment agency.

Scaling Up the CWSProgramTo move toward the CWS program targets set outin the CA, there will be a need to scale up the im-pact of poverty reduction interventions from the lo-cal (project) level to a citywide level, in allparticipating cities. The CDS and the CWS pro-gram provide the framework for this. However, be-cause of the intermittent, advisory nature of theRETA, neither full completion of the CDS/CWSPrograms nor full understanding and acceptance bystakeholders was possible in all instances. To bringthe initial CWS program interventions to scale, therewill be a need to (i) complete CDS/CWS Pro-gram documentation, a process that in some in-stances will require additional research andinvestigations; and (ii) through information dissemi-nation and training, attain the depth of understand-ing and acceptance of the CA approach needed tobroaden meaningful stakeholder participation,strengthen institutional capacity, and establish thenecessary political will and leadership to drive theprocess forward. The scope of any follow-up RETA

will have to include consideration of these require-ments, and seek the necessary CA funding supportas appropriate.

Need for ContinuedAssistanceIt took time and effort for the local governments tounderstand the need for a CDS and a CWS Pro-gram and to engage in genuine participation. Asthe RETA progressed, however, the benefits ofadopting such approaches became clearer to all cit-ies. Momentum has increased, and the cities haveexpressed a desire for further assistance to continuethe process. Benefits are likely to be realized if fur-ther assistance is provided.

CA Membership andFollow-on TechnicalAssistanceThe RETA marked ADB’s initial involvement withthe CA. It involved depositing $250,000 in theCities Alliance Core Trust Fund representing theminimal annual contribution necessary to ensurepartner status for ADB for 1 year. ADB will haveto make similar contributions to continue with itsmembership.

Experience under the RETA has shown thatit would be beneficial for ADB to remain a mem-ber of the CA. Membership would enable ADB to! further its leadership and credibility in the ur-

ban sector;! follow through on the momentum gained dur-

ing this RETA;! realize the benefits of sharing and networking

of ideas and knowledge;! promote participation in projects, which is the

cornerstone of the CDS and CWS Program;! support its policy of interregional cooperation;

and! learn from the know-how generated within par-

ticipating cities.Since the first year of membership has not yet

passed, it is too soon to assess the benefits ofmembership. Hence, continued membership for a2-year period would provide enough time and ex-perience to assess the longer-term benefits of re-maining a member.

ADB’s Urban Sector Strategy, published inJuly 1999, is now in need of review and revision in

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25 A National Strategy to Enhance the Access of the Urban Poorto Basic Infrastructure and Housing, Viet Nam.

26 GTZ-MOLISA Institutional Capacity Building for the Na-tional Poverty Alleviation Strategy, Viet Nam.

the light of rapid urban growth. Furthermore, CWSPrograms have shown that there is a need to assessthe alternative forms of secure tenure and environ-mental sanitation as key priorities. Local economicdevelopment has been shown to contribute signifi-cantly to urban poverty reduction, but such strategyformulation needs assistance and guidance.

To assist ADB with its continuing participa-tion in the Cities Alliance, a follow-up RETA isproposed. The assistance will build on the workundertaken and the lessons learned from thisRETA. The overall aim of the proposed RETAwould be to maintain ADB’s engagement with theCA and mainstream the CDS and CWS ap-proaches into ADB’s urban sector strategy and op-erational activities. More specifically, the objectivesof the proposed RETA would be as follows: (i) tobroaden coverage of CDS and CWS preparationand implementation among developing membercountries; and (ii) to assist in the eradication of slumsand the reduction of urban poverty by focusing at-tention on economic development, secure land ten-ure, and appropriate environmental sanitation.

The proposed RETA would cover the cost ofADB’s contribution to the CA for 2 years and sup-port (i) the incorporation of alternative forms of se-cure tenure in slum eradication and urban povertyreduction; (ii) the incorporation of alternative formsof environmental sanitation in slum eradication andurban poverty reduction; (iii) the formulation of localeconomic development strategies toward urban pov-erty reduction; and (iv) the scaling up and institution-alization of CDS and CWS activities.

Increasing DonorCollaborationUnder the RETA, the consultants had the oppor-tunity to collaborate with other donor agencies ac-tive in the urban sector. In India, the directinvolvement of the WB-CA adviser in expandingCA funding requirements and in organizing theinvolvement of Calicut Corporation representativesin external workshops was invaluable in reinforcingcounterpart staff understanding of and commitmentto CDS/CWS Program preparation. In Viet Nam,contact with WB staff involved in the ongoing CAProject25 was important in gaining insights into the

policy debate, while informal arrangements madewith a senior GTZ local consultant involved in theNational Poverty Alleviation Strategy26 assisted inCDS/CWS Program preparation activities in DaNang. Arrangements are also in place to involvethe UN UMP staff in providing further trainingfor Da Nang staff in various aspects of stakeholderconsultation.

In developing any intended next phase of ADBinvolvement in the RETA participating countriesand cities, and in advancing parallel ADB urbandevelopment initiatives, it is recommended that ev-ery attempt be made to build on and expand thecollaboration with other donor agencies accom-plished during the RETA. This is consistent withthe CA commitment to information sharing, and toADB’s current exploratory moves to seek commonor complementary areas for cooperation with otherdonor agencies.

Collaboration with theCentral GovernmentAlthough the CDS and CWS Program are city-based initiatives focused on participation and con-sensus building at the local level, they should beformulated and implemented within the frameworkof national (and where appropriate state) develop-ment policies and programs, especially those deal-ing with economic and social development, and witha pro-poor orientation.

Elsewhere, successful implementation of theCWS Program will rely on local governments es-tablishing a close working relationship with the cen-tral government to address urban poor issues. Forexample, in densely urbanized environments, accessto and development of some parcels of vacant andunderused national government land in Calicut,Quezon City, and Taguig could prove critical forthe provision of low-cost housing and services forpoor urban households as an integral part of theCWS Program.

82

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Appendixes

86

Introduction and Summary

Purpose of GuidelinesThese guidelines were prepared under aregional technical assistance (RETA) to helpcity stakeholders in formulating a City Devel-opment Strategy (CDS). They were field-tested during RETA implementation as aseries of working notes guiding the process inCalicut (or Kozhikode) in India, Da Nang inViet Nam, and Caloocan City, Quezon City,and Taguig in the Philippines. Five noteswere produced1 and each one was amendedafter the local workshops and other dissemi-nation exercises to take into account theexperience gained. The notes were combinedin one volume to form these guidelines.

The guidelines start with a brief intro-duction to the CDS concept and process, asummary of the four stages in CDS prepara-tion, and an outline of the contents of atypical CDS. The CDS stages—prepara-tion, analysis, strategy formulation, andimplementation assessment—are then dis-cussed step by step in separate chapters. Theguidelines provide city stakeholders with achecklist of what each stage should cover andare meant to be merely indicative instead ofprescriptive, given the many ways of prepar-ing a CDS.

The CDS InitiativeIncreasingly, national economic growth isbeing determined by what happens in urbanareas. Globalization is strengthening competi-tion between cities as private investment seeksto maximize returns in highly competitivemarkets. Decentralization has given addedpower and resources to cities and their popu-lations, but many urban areas are not wellmanaged and their economies remainuncompetitive. Two scenarios are emergingworldwide: that of cities where poverty, socialexclusion, and decline are increasing amidpockets of splendor and wealth; and that ofmore inclusive cities where growth is equitableand sustainable, and pockets of poverty arefew and decreasing.

make the most of its strengths and opportuni-ties, determine where it is headed and whereit wants to be, improve its competitive posi-tion, and thus contribute more to nationaldevelopment. A CDS is the “big picture”that sets the overall direction for the growth ofa city, taking into account the views of stake-holders.

A CDS is defined by the process offormulating and implementing its outputs(products). Past efforts to produce similarintegrated approaches have often failed be-cause of poor coordination between imple-menting agencies, which has led to conflictand wasted resources. Past approaches toplanning, such as city master plans, were,moreover, technical and often unresponsive tothe citizens’ views and aspirations. Thedynamic CDS process is very different fromthe more static master planning of the past, inrecognition of the fact that cities are nowbetter able to respond to opportunities forgrowth. Decentralization is enabling cities totake more decisions, and increased demandfor representation is opening the planningand political process to greater participationand accountability. A CDS is able to re-spond to these changing circumstances.

However, a CDS is not a substitute forintegrated master plans, land use plans,investment plans, or institutional developmentplans, all of which complement a city devel-opment strategy. The CDS process is astrategic visioning exercise that helps the cityidentify its goals and directions, make policydecisions, and allocate resources. With agree-ment on a larger vision, often to secure acompetitive position, cities can plan for landuse, transport, and other sectoral needs with aclearer view of priorities and the timing ofinvestments.

Rapid transformation in the developingworld as the population moves from the ruralareas to urban centers calls for an appropriategovernment response to the challenge ofurban growth. National and local govern-ments must be better equipped to manage thetransition from central control to decentral-ized and market-based provision of services.For cities, the result will be demand-drivenurban development, with infrastructure andservice providers and local governments beingdirectly accountable to their consumers andanswerable to their constituents. This in-creased accountability means that peopleliving and working in urban areas must devisestrategic development initiatives to meet theirperceived needs. The CDS initiative is anexample of this effort.

What is a City DevelopmentStrategy?A City Development Strategy (CDS) is anaction plan for equitable growth in a city,developed and sustained through publicparticipation to improve the quality of life forall citizens. The goals are a collective cityvision and action plan to improve governanceand management, increasing investments toexpand employment and services, and sys-tematic and sustained programs to reducepoverty. A city is expected to drive the pro-cess and local ownership is essential. In otherwords, a CDS is a corporate plan for the city.

A CDS is focused on the process ofchange, highlights economic dynamics andopportunities, and adopts a flexible strategyto respond to economic realities in a competi-tive environment. It helps build stakeholdercapacity to manage a city more efficiently andto encourage and attract investments fromwithin the country and abroad. It does this byencouraging stakeholders to participate andempowering them. Thinking about the futurewithin a CDS framework often changes theway a city is managed and planned.

A CDS is focused on a city as the unitof analysis, much as a corporate plan isfocused on a company. A CDS helps a city

APPENDIX 1 GUIDELINES FOR PREPARING A CITY DEVELOPMENT STRATEGY

1 (i) What Is a City Development Strategy; (ii) Pre-paring a City Development Strategy: Preparatory Stage;(iii) Preparing a City Development Strategy: Analy-sis Stage; (iv) Preparing a City Development Strategy:Strategy Formulation; and (v) Preparing a City Devel-opment Strategy: Assessing implementation throughMonitoring and Evaluation. All these notes were pre-pared between July and September 2002.

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City Development Strategy ProcessCities need to become the focus of goodgovernment and the venue for social inclusionand poverty reduction. CDS outputs mustcreate an environment where this happens.

Key ObjectivesThe CDS process! Builds trust and relations between stake-

holder groups, to help achieve socialinclusion;

! Builds and improves the capabilities ofstakeholder groups, to promote goodgovernance, behavioral change in institu-tions, and prudent management of theeconomy and civil society;

! Encourages people to think differentlyabout how their city should develop;

! Achieves a coordinated strategic ap-proach to addressing the complexities ofdevelopment; and

! Precipitates a change in stakeholderattitudes and behavior away from depen-dency.

Stages

The CDS process has five stages:! Preparation – identifying the drivers and

key partners, management system, objec-tives, and work program;

! Analysis – collecting baseline informa-tion, analyzing strengths and weaknesses,and building consensus around a com-mon understanding of the city’s prob-lems and priorities;

! Strategy formulation – defining a vision,formulating and evaluating options,identifying stakeholder roles, and devel-oping action plans within an affordablefinancing framework;

! Implementation – implementing demon-stration projects, mobilizing resources,carrying out agreed investment plans,obtaining the support of donors, andmonitoring and evaluating progressagainst the vision and mission state-ments; and

! Consultation – a continuous participa-tory process throughout the above fourstages involving stakeholder group meet-ings and consultations to arrive at aformal political commitment, agreedvision, and strategic framework.A diagram of the process is shown in

Figure 1.

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Figure 1: The CDS Process

88

Key OutputsThe key outputs of the CDS process are:! A collective vision and strategy for a city,

which would be the foundation for itseconomic growth and for strategic think-ing in its development, institutional, andfinancial planning;

! Defined priorities and action plans, topromote economic change and assiststakeholders in setting developmentpriorities and resolving issues related tointersectoral priorities and investmentprogramming;

! Development strategies that promoteeconomic growth and reduce poverty;and

! Policies that lead to an improved invest-ment climate.In summary, a CDS should have clear

aims and outputs, an agreed logical frame-work, a performance management and evalu-ation system, effective processes, andappropriate products and implementingmechanisms. A city should not lose sight ofthe key outcomes. The ultimate goal is for thecity to attain the internal institutional andpolitical capacity to innovate and respond torapidly changing economic and social reali-ties. It must be emphasized that the prepara-tion of CDS is not the end by itself but, theCDS implementation.

City Development StrategyDocumentIdeally, the CDS should be a summarydocument comprising an executive summary(2–3 pages) and main text (20–30 pages). Itshould contain the following:! State of the City Report, including a

summary city profile, economic baseanalysis, and sector statements;

! Summary of key problem areas;! Findings of the analysis of strengths,

weaknesses, opportunities, and threats;! Vision and mission statements, including

measurable targets or objectives;! Outline development strategies, includ-

ing cost estimates;! Action plans for each strategy, including

interventions and priority projects andprograms; and

! Monitoring and evaluation and feedbackmechanisms.

Figure 2 shows how the CDS process isrelated to development planning.

Preparation (A Program for thePlan)

Identify Drivers of the CDS Processand Appoint Team MembersThe city or municipality would lead thisprocess through civic leadership. Consultantscould be hired to give advice.

The mayor (or the head of the city ormunicipal council where there is no mayor)and another senior city official2 must drive theprocess, with the support of a project man-ager (PM), who will be responsible for theday-to-day work involved in preparing theCDS. The PM should be able to workacross departments and have the ear of thepolitical head of the city, and would set up asmall team. Over the longer term, a separatestrategic planning office may have to beestablished. Its head would report directly tothe mayor or the head of the local govern-ment.

Define Work Objectives and OutputOnce appointed, the PM would define theobjectives and expected output of the CDSprocess.

Key ObjectivesThe CDS process! Encourages stakeholders to participate in

developing a CDS;

! Builds civic capacity and stakeholder(government, private sector, civil society,and the community) capabilities;

! Changes the way stakeholders thinkabout development;

! Addresses the complexities of develop-ment; and

! Builds a collective vision for the city.

Key OutputA key output is a CDS, which should be asummary document comprising an executivesummary (2–3 pages) and main text (20–30pages). It would contain the following:! State of the City Report, including a


! Summary of key problem areas;! Analysis of strengths, weaknesses, op-

portunities, and threats;! Vision and mission statements, including

measurable targets;! Outline development strategies, includ-


interventions and priority projects andprograms; and

! Monitoring and evaluation, and feedbackmechanisms.

2 This could be the City Manager/Administrator or theCity Planning and Development Officer (or his/herequivalent).

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Figure 2: CDS Process and Development Planning

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Since the CDS is a long-term strategy(10–15 years), it should not change signifi-cantly from year to year. It would become therecognized document that outlines the cityvision and its approach to future develop-ment. It would be used by the city to promoteitself to potential investors.

Identify Stakeholders and AssignResponsibilitiesStakeholders are all those with an interest inthe future of the city, from individuals and theinformal sector to large organized formalbusinesses. Table 1 shows the range of stake-holders within a city.

A community starts the process of strate-gic planning by identifying the people, publicinstitutions, businesses and industries, civicorganizations, professional organizations,training and educational institutions, andothers with a vested interest in the develop-ment and growth of the city. Representationfrom all of the groups given in Table 1 wouldbe desirable, but practical realities may con-fine the groups consulted directly to only afew. Where the participants are limited, thoseselected must be widely represented.

The city must identify the participating

stakeholders. For this exercise, the followingshould at least be represented:! Major businesses and investors,! Service providers,! City council,! Resident taxpayers,! Appropriate NGOs, and! Urban poor groups.

Set Up CDS Management andReporting SystemThe city must first form a city steering groupto engage the participation of as broad across-section of stakeholders as possible. Thiscould be the executive committee of the citydevelopment council.3 The group would havethe following functions:! Approve the work program and sched-

ule, including the program of participa-tion and consultation;

! Endorse the State of the City Report;! Drive the analysis of strengths, weak-

nesses, opportunities, and threats (S-W-O-T);

! Endorse the vision and mission state-ments; and

! Endorse the completed CDS.A CDS technical team (CDS team) is

then formed, normally through an administra-tive order issued by the mayor or head of thecity government. The team, comprisingofficers and consultants of the city or munici-pality and headed by the PM, would havethe following functions:! Serve as the secretariat of the steering

committee;! Provide technical expertise for the CDS

process;! Cooperate closely with the wider group

of stakeholders selected for the CDSprocess;

! Organize participatory workshops andmeetings; and

! Draft the CDS document.

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3 Under the Local Government Code of the Philip-pines, the executive committee of the city developmentcouncil is headed by the mayor and has the followingmembers: the chairperson of the committee on appro-priations of the council, the president of the city leagueof barangays, and representative/s of nongovernmentorganizations in the local development council.

Table 1: Stakeholders within a City

Box 1: Participation in the Cityof Wellington, New Zealand

Strategic links to governance werefirst identified. These covered thecommunity, central government,retailers, investors, and interestgroups. The city government led andfacilitated the process of active par-ticipation, which culminated in theformulation of a long-term vision forthe city. First, the Mayor launched an18-month-long community-led plan-ning exercise—the strategic visioningprocess for the CDS. The communitywas asked to nominate the membersof the City Steering Group to engagethe participation of stakeholders suchas the Chamber of Commerce andNGOs. The Council provided data onkey trends to facilitate informed dis-cussion. Specialist working groupswere formed and peer review teamscreated to challenge vested interests.More than 2,000 residents and 100organizations took part in 70 work-shops and forums. An iterative pro-cess was adopted resulting in thedocument “Our City—Our Future,”which covered the city’s vision, goals,targets, performance indicators, andinitiatives.

90

Prepare Work ProgramThe CDS team sets the work program andits details. The work program would coverthe steps involved in preparing the following! City profile;! Sector statements;4

! Outlook and expectations (targets,forecasts, and gaps);5

! State of the City Report;! S-W-O-T analysis;! Vision and mission statements and

supporting targets;! Alternative strategies and their cost;! Preferred strategies;6

! Action plans for each strategy, identify-ing key interventions, projects, andprograms;7 and

! CDS document.Major outputs should be noted and all

proposed participatory workshops identified.The work program may follow the for-

mat given in Table 2.

Analysis (Where We Are Now)

This chapter covers the second stage of theCDS process. It outlines the basic tasks thatmust be accomplished and the broad coverageof each one. Normally, the staff of the citygovernment, through the CDS team, wouldtake the lead in the preparation of the cityprofile and the State of the City Report.Sector or theme statements and the outlookand expectations for the city would be pre-pared with the assistance of other stakehold-ers such as chambers of commerce, NGOs,and educational institutions. Strengths,weaknesses, opportunities, and threats (S-W-O-T) would be analyzed jointly by the citygovernment and the identified stakeholders.

Compile City ProfileBasic data about the city would be gatheredto determine key indicators for the city. Datarelating to, say, a 10-year period8 should begathered to allow planners to identify trends

and changes. Much of these data would befound in the city’s comprehensive land useplan or similar plans and supporting docu-ments, recent studies, official census reports,and other documents. Where possible, exist-ing data, or proxies if no data are available,should be used. Only in exceptional casesshould specific surveys be undertaken. Anindicative format for data collection is given inAnnex 1.1.

The profile should be descriptive andexamine past trends. As a general rule, theprofile would cover the following data:! Geographic characteristics: locational

advantages and physical characteristics ofthe city area including: (i) socioeco-nomic, trade, and historical links, growthprospects, general land use, and location;(ii) topographic, geologic, soil, hydro-logic, and climatic factors affecting devel-opment; and (iii) political and cadastralboundaries.

! Environment: extent and location of theenvironmental concerns of the city in-cluding: (i) air, soil, and water quality;(ii) toxic, hazardous, and solid waste;(iii) protection and conservation mea-sures for urban forest or open space; (iv)biodiversity and protected areas; (v)coastal and marine resources, whereapplicable; and (vi) noise levels andpollution.

! Infrastructure and services: present, aswell as prospective, condition and cover-age of facilities including: (i) transportinfrastructure (roads, bridges, railways,air and sea ports); (ii) transportationsystems (motor vehicle ownership anduse, public transport facilities, and trafficmanagement); (iii) power and electricitygeneration and distribution;(iv) communications (postal servicesand facilities, telecommunications includ-ing Internet access, broadcast and printmedia and other information providers);(v) water supply, sewerage and sanita-

tion, and drainage; (vi) solid wastemanagement (collection, recycling, anddisposal); and (vii) public buildings,markets, and slaughterhouse facilities.

! Demographic profile: aggregate data onthe resident and daytime populationsupporting the urbanization and socio-economic development of the city includ-ing: (i) population data (growth rates,sex and age distribution, households,languages, labor force, etc.); (ii) urban-ization (densities, occupancy of urbanland); (iii) household income, savings,and expenditures and poverty; and (iv)location of pockets of poverty, based onsuch indicators as deficiency of services,poor quality of housing, existence ofinformal settlements.

! Social sector: data on social developmentprograms and facilities, and the coverageand quality of service, including: (i)statistical data on housing and house-holds, education, literacy, manpowerdevelopment, health and nutrition, andpublic safety; and (ii) data on physicalfacilities and conditions relating to hous-ing (informal settlements, blighted areas,etc.), education, health care, civic, andother social services.

! Economic activity: economic structureand regional market characteristics in-cluding: (i) city product9 and invest-ments; (ii) economic activity, growth,and interrelationships, by economicsector; and (iii) employment and unem-ployment.

! Development administration and financ-ing: administrative setup of the city, itsgovernance, and the state of its finances

4 Given the poverty alleviation focus of the Cities Alli-ance, emphasis would be given to the preparation ofeconomic development and shelter sector statements,forecasts, strategies, and other plans to support thepreparation of Cities Without Slums (CWS) compo-nents.

5 See note 4 above.

6 See note 4 above.

7 See note 4 above.

8 Actual period to be determined by the city.

9 The city product (output of goods and services) couldbe estimated if the data are not available, by using na-tional data on output per employee and relating theseto the structure of employment in the city. Appendix 2of the Cities Data Book: Urban Indicators for Manag-ing Cities (Asian Development Bank, 2001) details two approaches.

Description andSubtask

Major Output ResponsibleAgency and

PersonsResponsible

Start DateTask No. CompletionDate

Table 2: Format for the CDS Work Program

91

including: (i) government agencies, cityadministration and capacity building,citizen participation, and communitymobilization; and (ii) revenues andexpenditures, balance sheets, creditrating, etc.Components other than these could be

used if the city considers them more indicativeof its features. What is important is that theprofile should cover the key components ofthe development of the city. In practice, alldata assembled should lay the foundation forthe preparation of the CDS, particularly theidentification of the crucial sectors or themesthat determine the competitive position of thecity.

The output is most useful when theprofile is concise and uses visual aids andtables, where appropriate. The sources of thedata and the years covered should be given.The profile should be designed for the use ofthe existing or future stakeholders of the city.These are likely to include, among others,concerned residents, investors, national devel-opment agencies, financing institutions, andmanagement and planning agencies.

Prepare Sector (or Theme)StatementsOn the basis of the above statistical data andqualitative findings, sector (theme) statementsshould be prepared to provide a comprehen-sive picture of the city’s operating environ-ment.

The sectors are key aspects of the city’sdevelopment that stakeholders are believed toconsider important. They may well reflect thethemes chosen by the city to improve itscompetitive position, such as employmentpromotion, poverty reduction, or serviceimprovement. The sector (or theme) state-ments should focus on issues, opportunities,and constraints. The sectors (or themes)chosen would depend on the pressing needsof the particular city but must be deemedcritical to the development of the city. Ingeneral, the themes would cut across theidentified categories in the city profile.

For some cities, a decision may be madeto shorten the CDS process by focusing onone or two strategic sectors or themes, ratherthan a long list of issues or problem areas.This modified CDS could focus on, say, localeconomic development and Cities WithoutSlums (CWS) themes, such as slum eradica-tion, as priorities.

Identify the Sectors (Themes)The CDS team would lead the process ofidentifying the key sectors (or themes) for aparticular city. But the key stakeholdersthemselves must carry out the process andchoose sectors or themes that reflect theirmain areas of concern. For example, thefollowing sectors (themes) might be selected:! Local economic development (LED),

which represents the process by whichthe public, business, and nongovernmentsectors work in partnership to createbetter conditions for economic growthand employment generation;

! Poverty, housing shortages, and socialinclusion, which would be the basis fordeveloping the CWS program;

! Environmental degradation and geo-graphic constraints;

! Infrastructure coverage, urban transport,and service delivery;

! Governance and management improve-ments to increase participation, transpar-ency, and accountability; or

! Finances and resource generation mea-sures to enable the city to raise morefunds.A city could also come up with its own

sectors (themes), aside from these. Thechoice is that of the stakeholders.

The table on page 92 summarizes theobjectives and coverage of the suggestedsectors or themes.

Prepare the Sector StatementEach statement should show the present stateof the sector, drawing on key trends evidentover, say, the past 10 years, and the relation-ship between the sector and the processesdriving change. The statements should lay thegroundwork and be a point of reference forthe strategies to be formulated in the thirdstage of the CDS process. More specifically,each statement should cover the following:! A brief description of the sector (from

the city profile);! An analysis of the patterns of change

and trends, including the spatial dimen-sion.

! A summary of the implications of fore-casts and projections based on minimalchanges in policy;

! Key problem areas and issues; and! Areas where intervention may be neces-

sary.

The statements should be succinct andshould focus on changes, issues, opportuni-ties, and constraints.

Define Outlook and Expectations(Targets, Forecasts, and Gaps)Using the trend projections and forecasts inthe sector (theme) statements for the cityoverall, the CDS team should draw a pictureof what would happen if there were to be nomajor policy changes—in other words, howthe city would develop and be in a competi-tive position given its present state, currentplans, and programs now being implemented.Forecasts would be qualitative and, wherepossible, quantitative for key components ofthe sectors or themes. Such forecasts wouldindicate the gap or deviation between currentconditions and the goal expressed in thevision statement.

Before forecasts can be made, the plan-ning horizon must be determined. Thishorizon represents the number of years be-tween now and the future date at which thecity vision should be realized. As a generalrule, this would be 10–20 years.

Prepare the State of the City ReportFrom the city profile, sector statements, andforecasts made, a summary State of the CityReport identifying the key problem areaswould be prepared. The report will containthe following:! A summary profile of the city;! Sector (or theme) statements (issues,

opportunities, and constraints);! Overall outlook and expectations for the

city; and! Key problem areas that affect the com-

petitiveness of the city, based on thesector (or theme) work and the outlookand expectations analysis conductedearlier.

Identify Strengths, Weaknesses,Opportunities, and Threats for theCity RegionOn the basis of the findings contained in theState of the City Report, stakeholders (mu-nicipality, private sector, NGOs, serviceproviders, etc.) would analyze the city’sstrengths, weaknesses, opportunities, andthreats (S-W-O-T). Strengths and weak-nesses relate to factors internal to the city andindicate the effectiveness and speed withwhich it can adapt to changes in its external

92

Table 3: Summary of Sector Objectives

Sector/Theme

Local economic development

Poverty, housing, and socialinclusion

Environmental degradation andgeographic constraints

Infrastructure coverage, urbantransport, and service delivery

Governance and management

City finances and resources

Objective of Analysis

To assess a city’s economic growth prospects linkedto output, employment, and regional and nationaldevelopment, and determine how its economic basecan be improved

To assess the extent and causes of poverty andhousing shortages, and determine the need for socialservices need

To assess the state of the urban environment and itsmanagement

To determine infrastructure and service deficienciesand prospects

To determine issues related to city governance

To assess the financial sustainability of the city, itsability to raise resources, and the magnitude of capitalinvestments made in the city

Coverage

City income and employment analysis: economic basea and clusteranalysis; change, output, and markets; job growth and decline (inwhich geographic areas and sectors?); rate of startup, survival, andfailure of small businesses (do any sectors stand out?); barriers thatimpede growth among local businesses (can they be tackledlocally?); availability of land and premises (do local firms have theopportunity to expand within the area?); barriers to thedevelopment of key sitesUnemployment and skills: local unemployment rates (whatproportion are the long-term unemployed?); concentration (socialor spatial groupings); economic inactivity (how high are the rates?);barriers to employability in particular areas or among particularcommunities; skills and experience of local labor force in and outof work (how well do these meet current and projected demand?)Isolated and economically marginalized or resource-poorcommunitiesDemography: population and natural increase and migration,socioeconomic profile including household income distribution andchanges (what are the implications?)Poverty: profile (causes, extent, and distribution of poverty andchanges over time), together with poverty mapsb

Housing demand and supply: new households, housing backlog,upgrading and resettlement, and implicationsSocial services: education, health, and social development needsand deficiencies in provisionEnvironment: water resources and pollution, air quality,environmental hazards (natural and man-made), solid andhazardous wastes, and noise pollutionConstraints: environmental barriers to developmentInfrastructure: water demand and supply, sewerage and sanitationneeds, flood control and drainage problems, solid wastemanagement (collection, recycling, disposal) deficiencies, energydemand, and supplyCommunications: telecommunications and mediaUrban transport: road space demand, traffic management, publictransport issues, and air and sea-port conditionsSocial infrastructure: shortages of school buildings, health facilities,etc.Governance and management: quality and standards of publicservice, including transparency and accountability of the citygovernment and other public bodiesParticipation: involvement of community/stakeholders and extentof consultation undertaken by the cityCivil society: key nongovernment, people’s, and other organizationslinked to poverty reduction and other civic issuesCity financial analysis: sources of funds and importance of localrevenues and transfers; analysis of expenditures including capitalinvestments, recurrent expenditures, and debt service; and trendsand changing structuresInvestments in the city: general trends in public and privateinvestment in infrastructure, services, and business

a Outputs that are sold outside the city, generate income, and sustain all nonexport activities and services.bPoverty maps will be based on identified slum and squatter areas within city boundaries and their main physical, socioeconomic, and environmental conditions (e.g. land area, ownership,use, and cost; population; household size, income, savings, and expenditure; and infrastructure and services including water supply, sanitation and drainage, garbage collection, school andhealth care facilities). The intention here would be to ascertain that the conditions in these slum areas and informal settlements justify their classification as “poor” in relation to statisticscollected by the city and that they can reasonably be considered as the focus of poverty reduction efforts under the CWS program.

93

environment. Strengths generally relate tolocal assets, weaknesses to obstacles togrowth. Threats and opportunities pertain toexternal drivers of change. Figure 3 outlinesthe framework for the analysis.

Strengths and WeaknessesThe strengths and weaknesses, or aspects ofthe city that are especially good or bad, areidentified. Their degree of importance israted high (must be addressed in the strategy),medium (should be addressed), or low (nostrategic significance). Each major identifiedsector (or theme) should be assessed and,where appropriate, its strengths and weaknessesidentified. Not all sectors, however, will haveidentifiable strengths or weaknesses.

From the S-W-O-T analysis of each sector,a number of common strengths and weak-nesses are likely to emerge. Others are likelyto be similar and can be combined into one.The resulting strengths and weaknesseswould then be examined and a final set ar-rived at for the city as a whole. As a generalrule, the strengths and weaknesses selectedwould each number no more than 10, inmany cases considerably fewer. Each strengthor weakness would then be evaluated andlisted according to its overall importance(high, medium, or low). Table 4 gives theformat for identifying and ranking strengthsand weaknesses.

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Table 4: Format for Identifying and Ranking Strengths and Weaknesses

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Table 5: Examples of Strengths and Weaknesses

Strengths

! Strong political leadership! National center for tertiary education! Reliable water supply system! Considerable areas of vacant public land! Extensive greenery and public open spaces

Weaknesses

! Traffic congestion! Poor inefficient public transport! Ineffective solid waste management! Inefficient system of city revenue collection! Poorly skilled labor force

Some examples of strengths and weak-nesses are given in Table 5 below.

Opportunities and ThreatsOpportunities and threats, representinggeneral trends and events that may affect thefuture of the city, are identified next. Oppor-tunities are external conditions that favorgrowth or beneficial change. Threats are

unfavorable external trends.The following drivers of change are the

major areas to be considered: (i) economic;(ii) demographic and social, (iii) environ-mental and ecological, (iv) technological, and(v) public policy and political.

The final list of opportunities and threatsshould be small, if possible no more than twoor three for each driver. Each one is thenevaluated and ranked according to the prob-ability of occurrence and the impact its occur-rence would have on the development andfuture competitiveness of the city. It would besufficient to classify each opportunity orthreat as having high, medium, or low prob-ability or impact. The format in Table 6should be followed.

Some examples of opportunities andthreats are given in Table 7.

Overall S-W-O-T AnalysisTo summarize, the S-W-O-T analysis iscarried out as follows:! For each critical sector (theme or area),

strengths and weaknesses are identified;! For each identified “driver of change,”

opportunities and threats are listed; and! Strengths, weaknesses, opportunities,

and threats are then defined for the cityas a whole.In general, the strengths, weaknesses,

opportunities, and threats defined for the cityas a whole will be those that have a “high” or

94

“medium” rather than “low” rating and willbe a combination of sector and citywidestrengths, weaknesses, opportunities, andthreats. The strengths, weaknesses, opportu-nities, and threats should be stated as com-prehensively as possible, focusing on keyaspects that characterize the entire city. As ageneral rule, the strengths, weaknesses, op-portunities, and threats would each be nomore than 10.

The strengths, weaknesses, opportuni-ties, and threats should be summarized andpresented in a matrix as shown in Figure 8.

Strategy Formulation (WhereWe Should Go and How)

Define Vision and Mission, andSupporting Targets or ObjectivesThe second stage of the CDS process ends

with the analysis of strengths, weaknesses,opportunities, and threats (S-W-O-T). Thethird stage starts with a visioning exercise,which builds on the outputs of the secondstage to develop a vision for the city thatreflects what the stakeholders collectively wantfor the future of their city.VisionThe vision statement will form the basis forthe more specific mission statement for thecity. All the objectives, strategies, programs,and projects of the city should be aligned withits vision.

The vision statement is formulated as aresponse to the question, “Where do we wantour city to be in 10–20 years’ time?” Itshould represent what the community wantsfor the city and where they want it to go. Itsets the context for the development needs ofthe city. If necessary, the vision can be speci-

fied according to the core themes or sectors,such as local economic development, povertyreduction, or governance. The city may alsoset stages or milestones in the achievement ofthe vision, say, every 5 or 10 years.

In summary, the vision represents thecommon aspirations of the stakeholders,including the residents, the city government,business, and all interest groups—what theywant the city to look like at a determinedfuture time. Together, the city stakeholderschoose one future scenario for the city anddefine it. The vision statement should bespecific and time-bound. From it, a summaryor catch phrase that captures the collectiveview of the future can be defined. Examplesof vision statements and the resulting catchphrases are given in Box 2.

Mission and Supporting Targets orObjectivesTo ensure a common understanding of howthe vision will be realized, it should be refinedinto a mission statement with specific targets.The mission is a statement of purpose thatspecifies a time frame within which the visionis to be realized. The time frame naturallycorresponds to the outlook and expectations(targets, forecasts, and gaps) projected ear-lier.

The main components or themes of thevision are identified and the targets or objec-tives to be achieved are quantified in themission statement. Objectives translate thevision into measurable or time-boundoutcomes and must be relevant to the visionformulated.

For example, a city whose key themeswere determined to be reducing poverty,improving slums, restructuring the economicbase, and becoming a tourist destinationcould have the following mission statementand supporting objectives:

By the year 2020, the city is to substan-tially reduce poverty, eliminate slums, restruc-ture its economic base, and become a primetourist destination. By 2020, the city aims to:! Reduce urban poverty from 50% of the

population to 25%;! Provide security of tenure to all house-

holds in squatter settlements, and pro-vide basic services to all households ininformal settlements and blighted areas;

! Increase the proportion of employment inthe high-tech cluster to 10% of the total;and

Table 7. Examples of Opportunities and Threats

Opportunities

! Newly liberalized manufacturing tariff structure! More children participating in tertiary education! Competitive labor market

Threats

! Change in government investment policy! National economic downturn! Increasing migration of rural poor to the city

without employment! Increasing incidence of HIV/AIDS

Opportunities and Threats

Strengths

Impact on the City(High, Medium,

or Low)

Table 6: Format for Identifying and Ranking Opportunities and Threats

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Probability ofOccurence

(High, Medium,or Low)

Strengths

Table 8: Format for S-W-O-T Analysis

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95

! Become one of the top 10 touristdestinations in the country by increasingthe number of tourists visiting the city by75% each year for the first 10 years andmaintaining this number thereafter.The vision and mission together repre-

sent the final goal of city development.

ProcessTo ensure the validation of the vision andmission through a public information cam-paign, the visioning exercise will be under-taken by the CDS team, the steeringcommittee, and a broad cross-section ofstakeholders. Normally, the exercise willentail the following:! Visioning workshops with city councilors

and other officials;! Focus group discussions with representa-

tives of change drivers including nongov-ernment organizations, community-basedorganizations, residents, special interestgroups, businesses, national governmentagencies, and the academe;

! Community liaison meetings;! Multisectoral consultative meetings;! A review of existing plans, studies, and

reports; and! Surveys (among residents and busi-

nesses) and related research projects ifneeded and if time permits.

While extensive consultations promote owner-ship of the CDS, this task may be shortenedfor a city that has previously shown wide-ranging stakeholder participation. In such acase, a participatory workshop could be heldto formulate the vision and mission.! In all cases, the CDS team would docu-

ment the process and the resulting visionand mission statements, and the mayorand the steering committee would have toapprove the documented output.

Develop and Cost AlternativeStrategies

ScopeThis task involves developing strategic op-tions for achieving the vision. The planninghorizon and the time frame for achieving thevision should match.

Strategies are overall programs of actionaimed at a specific outcome. They set measur-able targets (objectives) and outline interven-tions, and a time frame for completion. Aworkable strategy has the following ingredients:! Focus, so efforts and resources can be

concentrated where they are mostneeded;

! Impact on stakeholders and the lives ofthe people; and

! Force, moving all components in thesame direction.

Overall and indicative cost estimates arethen made for each strategic intervention.Using standard cost norms, the estimatedexpenditures required to implement eachstrategy are determined to arrive at the in-dicative cost of meeting the targets for eachtheme or strategy. Possible sources of fundingfor each strategy, including the likelihood ofraising funds from each source, are identifiedin general terms.

Box 3 gives examples of strategic visionstatements.

ProcessStrategic directions are arrived at in generalthrough stakeholder group discussions led bythe CDS team and are based on the need torespond to the problems identified in theState of the City Report.

The steering committee creates workingteams that include stakeholders with directknowledge of the subject areas (themes).

For each strategic direction, the workingteam will define:! Vision: what we want to achieve and by

when;! Objectives: the vision translated into

specific, measurable, achievable, relevant,and time-bound outcomes; and

! Interventions (projects, programs, orpolicies) and an action plan for imple-mentation.The output of this step would be summa-

rized in the format given in Table 9.Indicative costs and analyses of potential

sources of funding for each strategic interven-tion would then be prepared by the CDSteam, with the assistance of other departmentsof the city government, national governmentagencies, or other bodies as required.

Devise and Evaluate CitywideStrategies

Devise StrategiesStrategies summarizing the common featuresof the foregoing strategic directions or themes

Box 2: Vision Statements and Catch Phrases

Seven pilot cities in the Philippines took part in a CDS exercise funded by the WorldBank. The gist of the vision statements of two of these pilot cities is given below.

Vision

The City of San Fernando is envisioned as: (i) a radiant, dynamiccity in the north, which can become a model for innovative de-velopments, a leader in the march toward economic progress inthe north, and a responsive center for health, education, finance,and governance in Region 1; and (ii) a home to God-loving,peaceful, self-reliant, healthy, productive, and empowered citi-zens and leaders, who take pride in their cultural heritage andlive in productive harmony with nature.

Dapitan City is envisioned as transforming itself into the Dr.Jose Rizal heritage center and eco-tourism paradise of south-ern Philippines.

Catch Phrase

A springboard forregional progress

A heritage centerand eco-tourismparadise

Box 3: Examples of StrategicVision Statements

Informal settlements: Upgrading allsquatter and blighted areas, legalizingtenure in all informal settlements bythe year 2015, and implementingsquatter intercept programs to pre-vent further squatting within the cityfrom 2005 onward.

E-governance: Introducing a systemof e-governance within the city ad-ministration by 2010 whereby all tax,service, and fee payments could bemade over the Internet within 2 yearsfrom its introduction.

Employment: Facilitating a change inthe economic base of the city frompredominantly low-wage manufactur-ing to high-tech industries by 2010.

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are prepared for citywide implementation.Different themes could have the same or similarinterventions. For example, a poverty alleviationstrategy and a shelter strategy would bothinvolve implementing a Cities Without Slumsprogram, which would generate income oppor-tunities and provide basic services.

The next step is to set up a matrix asshown in Table 10 and to group or linksimilar interventions into common strategies.

Outline strategies can thus be drafted ingeneral terms and subjected to preliminaryevaluation.

The factors to be addressed by andincorporated in the alternative strategies arelisted. These factors are central to improvingthe competitive position of the city and otheraspects that are considered important. Theaim is to formulate a set of strategies thatmeet all of the following criteria:! Support the city’s vision and mission;! Use the city’s main strengths, particu-

larly those ranked “high”;! Correct its major weaknesses;! Exploit opportunities, especially those

ranked “high-high”;

Theme/StrategicDirection

Table 9: Format for Presenting Strategies Compiled

1

2

3

4

n

Vision Objectives Interventions

Theme

Table 10: Strategy Derivaton Matrix

1

2

3

4

5

Vision Objectives Interventions Strategy

Strategy 1

Strategy 2

Strategy 3

12N

12N

12N12N12N

! Eliminate or significantly reduce majorexternal threats, particularly those ranked“high-high”; and

! Will not expose the city to risks thatwould lower its performance below theminimum target.

Evaluate and Select PreferredStrategiesEach strategy is then ranked in the order inwhich they meet these criteria. The criteriapertaining to strengths, weaknesses, opportu-nities, and threats are applied first and thenthe criterion of compliance with the visionand mission.

The evaluation against strengths, weak-nesses, opportunities, and threats shouldfollow the format shown in Table 11. A “Y”for “yes” or an “N” for “no” in the appropri-ate column indicates whether the strategymeets the given criterion.

The contribution of each strategy to thecity’s vision and mission is further evaluated.A “+” indicates a significant positive contri-bution; a “-” a detrimental effect; and a “*”minimal impact. Table 12 shows the sug-gested format.

On the basis of the evaluation, decisionsare made as to whether to accept or rejecteach of the strategies. Strategies with a large

Strategy and BriefDescription

Table 11: Format for Evaluating Strategies, Step 1

1

2

3

4

n

StrengthUsed

WeaknessCorrected

ThreatAverted

OpportunityExploited

Strategy and BriefDescription

1

2

3

4

n

Strength Not Used

Weakness NotCorrected

Threat NotAverted

OpportunityNot Exploited

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1Strategy No. and DescriptionContribution to Vision/Mission

Table 12: Format for Evaluating Strategies, Step 2

2 3 4 5 n+ + * * + *

n

1

+ – * – + +

Strategy and Interventions

Table 13: Format for Justifying Strategies and Interventions

Intervention/Program/Policy 1

Justification(s)

Strategy One:

Project 1

Project nIntervention/Program/Policy 2

Intervention/Program/Policy nProject 1

Project n

Strategy Two:

Strategy n:


Project n

long term and attain the defined mission andvision are identified.

Table 13 shows the suggested format forpresenting the justification for each strategy.

Timelines clearly showing target startand completion dates (down to the specific 3-month period10) are defined for the requiredpolicy and investment (program and project)actions, and the responsible agencies areidentified. The format could follow that givenin Table 14.

Next, indicative estimates are preparedfor the costs or investments needed to imple-ment each strategy and its constituent pro-grams and projects. These estimates can besummarized in the format suggested in Table15.

ProcessThe stakeholders who are best equipped towork on each strategy will be identified.Implementation tasks will be allocated anddeadlines set. A lead person from the CDSteam will be made responsible for describingeach strategy. The lead person will help forma strategy working team comprising officialsand other stakeholders. The resulting strate-gies, programs, and actions will be submittedto the mayor and steering committee forapproval.

Prepare the CDS Document

ContentThe CDS should be a summary documentcomprising an executive summary (2–3pages) and main text (20–30 pages). Itshould contain the following:! State of the City Report, including a


! Summary of key problem areas;! Findings of the analysis of strengths,

weaknesses, opportunities, and threats;! Vision and mission statements, including

measurable targets;! Outline development strategies, includ-


priority projects and programs; and! Monitoring and evaluation and feedback

mechanisms.


Table 14: Format for Setting Deadlines for Implementing Strategies


Target Dates

Strategy One:

Project 1



Project n

Strategy Two:

Strategy n:


Project n

ResponsibleAgency Start Completion

number of “N”s (for “no”) in the S-W-O-Tevaluation and “-”s (for negative contribu-tion) in the evaluation against the vision andmission should be recast or rejected.

ProcessThe key stakeholders would evaluate thestrategies in a workshop. The strategies or theapproved strategies would then be docu-

mented by the CDS team and endorsed bythe mayor and the steering committee.

Prepare Action Plans and KeyInterventions for Each Strategy

TasksThe major interventions, programs, or actionsneeded to implement each strategy over the

10 For example, second quarter of year 2005 would beexpressed as “II 2005”.

98


Table 15: Format for Presenting Cost Estimates for Strategy Implementation


Expenditure

Strategy One:

Project 1



Project n

Strategy Two:

Strategy n:


Project n

1YearTotal

2 3 n

ProcessThe CDS would be written by members ofthe CDS team and submitted to the mayorand the steering committee for approval.

Implementation Assessment(Performance Measurement andNeeded Changes)

IntroductionA successful City Development Strategy(CDS) involves, among others, the imple-mentation of priority projects that support theselected strategies, stakeholder participationand resource mobilization, and agreed invest-ment plans. For this purpose informationdissemination and monitoring and evaluationprocedures must be established.

It is important to chart the progress of aCDS as product and process, and to amendthe implementation plans, programs, andprojects as required. This section discussesthe monitoring and feedback mechanisms,focusing on performance management,needed to do this.

A CDS produces some significantoutputs overall, the first of which is a commonvision and mission for a city, built throughparticipation and embodying a consensus.This vision will reflect, among others, a clearstrategy for local economic development andurban poverty reduction. However, the con-sensus and strategies must be translated intoa clearly defined action plan, with implemen-tation responsibilities assigned.

After the first CDS exercise, the docu-ment should be revised only when majorchanges in the environment have made thevision and mission unattainable. The visionby definition is long term and should nor-mally not change from year to year. Strate-gies, however, may need to be amended morefrequently, should they fail to achieve theirobjectives and contribute to the attainment ofthe vision. This is why implementation mustbe constantly monitored.

Performance measures should be de-signed for evaluating the progress of activitiestoward the defined vision. With the help ofsuch measures, the effectiveness of capacityenhancements, stakeholder participation, andother institutional arrangements in meetingthe CDS objectives can also be evaluated.

The CDS document should outline themonitoring and evaluation process. An appro-priate monitoring and evaluation methodshould be designed by the local governmentstaff as its primary responsibility, under theguidance of the steering committee. A draftversion should preferably be discussed withstakeholders to ensure their support and com-mitment to the process. If resources permit, thesteering committee may invite an outside party,such as a university or a consultant or a special-ist, to carry out the evaluation in part or in itsentirety. Alternatively, the monitoring systemmay be installed in a committee or a depart-ment such as a monitoring and evaluation officewith links to the various departments of the citygovernment and external agencies.

Establish Monitoring ArrangementsAn implementation committee, to be formedright after the approval of the CDS, mayreplace the steering committee set up for itspreparation. The implementation committee,whose members could be different from thoseof the steering committee, would assume theresponsibility for monitoring. A scaled-downversion of the technical working group set upfor the CDS preparation could be retained toact as the secretariat of the monitoring com-mittee, if monitoring is to be done in-houseand not contracted out.

Monitoring should be done every6 months or yearly and the findings summa-rized in a report. The monitoring process andreporting arrangements are shown in Figure 4.

Set Up System for EvaluatingAttainment of Vision, Mission, andStrategiesNext, the CDS team needs to design a sys-tem for monitoring and evaluating the extentto which the CDS vision and mission andstrategies are being achieved.

Three levels of monitoring are needed:! Citywide monitoring of progress toward

the attainment of the vision, mission, andtargets or objectives;

! Monitoring of progress toward the suc-cessful implementation of individualstrategies and the associated vision,objectives, and interventions; and

! Monitoring of the CDS process.Each level of monitoring is described in

the following paragraphs.

Monitoring ObjectivesWhether the vision, mission, and objectives ofthe city or those associated with individualstrategies are being monitored, the sameapproach applies.

The approach is straightforward andrequires the design of performance indicatorsbased on agreed criteria for each objectivespecified in the mission statement. The indi-cators are normally expressed as a percent-age, where: (i) the numerator is the measuredvalue for the reporting period; and (ii) thedenominator is the value of the target definedin the mission statement.

However, since the CDS process is along-term one, the denominator may changeas targets are redefined. In many cases, thedenominator will be increasing. For instance,more houses, schools, and health centers will

99

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Figure 4: Monitoring and Reporting Arrangements

be needed as the population of a city in-creases over time.

Monitoring must therefore relate to theaccomplishment of the targets or objectives atintermediate stages in the process, either (i)at intermittent stages during the CDS period,say, every 5 years; or (ii) at the end of eachyear in the 3–5 year political administration.

Because the CDS process is participa-tory the collective vision of the key stakehold-ers is a key output and the objectives andtargets that measure the accomplishment ofthe vision should be reflective of what thepeople want. For example, a city with a visionfocused on reducing poverty, improving theslums, restructuring the economic base, andbecoming a tourist destination could have thefollowing mission statement:

By the year 2020, the city is to substan-tially reduce poverty, eliminate slums, restruc-ture its economic base, and become a primetourist destination.

The supporting objectives could thus be:By 2020, the city aims to:

! Provide security of tenure to all house-holds in squatter settlements, and basicservices to those in informal settlementsand blighted areas;

! Reduce urban poverty from 50% of thepopulation to 25%;

! Increase the proportion of employment inthe high-tech cluster to 10% of the total;and

! Become one of the top 10 tourist desti-nations in the country by increasing thenumber of tourists visiting the city by75% each year for the first 10 years andmaintaining this number thereafter.Strategies would be developed for each

of the key theme areas, which in the aboveexample would be (i) slum upgrading, (ii)poverty reduction, (iii) economic base restruc-turing, and (iv) tourism promotion.

The improvement of slum areas is a keytheme for which the corresponding vision

could be:By the year 2020, all slums will be

improved, infrastructure upgraded to afford-able service levels, tenure legalized, and livingconditions upgraded.

The slum upgrading objectives could be:By 2020, for its slum areas, the city aims

to provide! Security of tenure to all households living

in squatter settlements as of 31 Decem-ber 2002; and

! Basic services to residents of informalsettlements and blighted areas as of 31December 2002.Together with each objective, there

should be an indication of how its achieve-ment will be measured. From this, perfor-mance indicators can be established.Objectives, the manner in which they are tobe measured, and the measurement indicatorsto be used are set out in a table, as shown inBox 4.

Monitoring StrategiesThe basic approach is to (i) set up an evalua-tion framework, using a simple performancemonitoring system for the vision and objec-tives or a logical framework approach particu-larly for interventions, or both; (ii) designperformance measures or indicators; and (iii)establish monitoring benchmarks from the cityprofile. The process has two phases:! Design: definition of measurable outputs

and objectives based on the priorityconcerns of the city; establishment ofbaseline values for measurable indicatorsand target values; inclusion of data in thestrategy document, which could contain alogical framework.

! Management: consolidation by the techni-cal working group of information aboutimplementation performance and itsdissemination to the concerned stakehold-ers,11 allowing them to assess how well astrategy is meeting expectations and to

determine needed corrective actions,while referring the wider implications forthe design of strategy or the accomplish-ment of the mission to the steering com-mittee and other stakeholders.

The process enables stakeholders to! Understand the measurable impact of

each strategy;! Appreciate how the strategy thus con-

tributes to the vision and mission for thecity; and

! Be aware of the fact that the outputs andimpact of each strategy can be gaugedwith the help of measurable indicators.

Logical FrameworkA logical framework summarizes in a matrixthe following components of a strategy:! Goal: long-term objectives, normally only

one or two, to be achieved through thestrategy over time

! Purpose: immediate objective for whichthe strategy was designed, which shouldbe achieved by the end of its implementa-tion period

! Outputs: physical and other tangibledeliverables expected from the implemen-tation of the strategy, such as a strongerand more competitive local economy(different strategies would lead to differ-ent outputs)

! Activities: key tasks needed to produceeach output

! Inputs: usually capital investments,training and implementation assistance,civil works and equipment necessary forthe implementation of the strategy

! Assumptions and risks: factors in theexternal environment—economic, demo-graphic and social, environmental andecological, technological, and publicpolicy and political—that are outside thecontrol of the city but could influence thesuccessful implementation of the strategy(assumptions pertain to important condi-tions affecting the implementation of thestrategy, while risks pertain to the prob-ability or likelihood that key assumptionsmay not materialize12)

! Performance indicators/targets:

11 Include those identified and involved in CDS prepa-ration, as well as others identified later.12 As a general rule, conditions worded in positive termsare considered as assumptions; those worded in nega-tive terms are risks. Assumptions and risks are relevantduring implementation and should be monitored in thesame manner as performance indicators and targets.

100

Objective

Provide security oftenure to all householdsin squatter settlementsat the start of the plan

Provide basic servicesto all households withininformal settlementsand blighted areas atthe beginning of theplan period

Measurement

Number of households insquatter settlementswith secure tenure

Number of households ininformal settlementswith:

! Individual plot connec-tions for water;

! Individual electricityconnections;

! Access to standpipewater supply;

! Sanitary cores on plot;! Connection to public

sewer system;! Access to communal

sanitation facilities;! Regular solid waste

collection service; and! Access to primary

health care

Number of households inblighted areas with:

! Individual plot connec-tions for water;

! Individual electricityconnections;

! Access to standpipewater supply;

! Sanitary cores on plot;! Connection to public

sewer system;! Access to communal

sanitation facilities;! Regular solid waste

collection service; and! Access to primary health

care

Indicator

Number of householdsin squatter areas withsecure tenure at theend of the reportingperiod, divided by num-ber of households insquatter settlements atthe start of the planperiod

For each criterion,number of householdsin informal settlementsthat satisfy each mea-surement component atthe end of the reportingperiod, divided by num-ber of households ininformal settlements atthe start of the planperiod

For each criterion,number of householdsin blighted areas thatsatisfy each measure-ment component at theend of the reportingperiod, divided by num-ber of households ininformal settlements atthe start of the planperiod

Box 4: Monitoring Objectives

SMART (SSSSSpecific, MMMMMeasurable,AAAAAchievable, RRRRRelevant, and TTTTTime-bound)indicators selected to establish the ac-complishment of the defined inputs,outputs, purposes, and goals and tomonitor changes in the risks and assump-tions during implementation

! Monitoring mechanisms: early warning

system using performance indicators tomeasure the level of achievement ofinputs, outputs, purposes, and goals, andalert implementers to potential problemsIn summary, the logical framework

specifies, among others,! The goal, purpose, outputs, inputs, and

activities associated with a strategy;

! Selected indicators for monitoring theinputs, outputs, purposes, and goals; and

! Baseline and target values for the se-lected indicators.Table 16 summarizes the format and

components of a logical framework.The accomplishment of the inputs,

outputs, purpose, and goal of a strategy canbe monitored with the use of the formatshown in Table 17. One such table should beprepared for each strategy.

The assumptions and risks outlined inthe logframe should also be monitored. Theformat given in Table 18 can be used for thispurpose. The technical working group wouldbe responsible for such monitoring, which isgenerally done yearly. It may not be possibleto design precise indicators for monitoringbroadly defined assumptions and risks. Insuch cases monitoring would be based onsubjective assessments of the assumptions andrisks, and a note to this effect would be in-cluded in the table.

Monitoring the CDS ProcessThe monitoring should cover the following:! Extent of accomplishment of participa-

tory processes in CDS development andplanning;

! Stakeholder coverage and adequacy ofrepresentation of each group;

! Success in building capacities and capa-bilities throughout the community; and

! Extent of participation rather than con-sultation, as well as the effectiveness withwhich responsibilities in the process wereassumed.

Define Feedback MechanismsThese mechanisms provide useful informationabout the strategies and the CDS process toguide future revisions. Broadly these mecha-nisms involve the following:! Determining the aspects of performance

to be measured in relation to the visionand mission for the city and the city’spriority concerns;13

! Collecting baseline data;! Calculating performance indicators;! Benchmarking performance to provide a

standard or reference by which the city

13 Where city resources are limited, performance indi-cators may have to relate only to the priority concerns ofthe city. This will allow the city to evaluate the useful-ness of the initial data collected and refine the processas it expands the coverage of the CDS.

101

(According to the logframe,policy matrix, and otherrelevant plans, programs, andproject documents)


(Measures of performanceagainst agreed criteria, wherethe denominator representsthe targets to be achievedthrough the strategy inaccordance with the logframe,policy matrix, and otherrelevant plans, programs andproject documents)

(Quarterly or annual) (Including the main contactperson)

Principal Objective Targets and Aims Performance Indicators Frequency of Reporting Responsible Agency

STRATEGY NAME / IDENTIFICATION

Table 17: Format for Monitoring Inputs, Outputs, Purposes, and Goals

Design Summary

Goal

Long-term objectives of the strategy

Purpose

Immediate objectives of the strategy

Outputs

Results that the strategy must achieve torealize its purpose

Activities

Key tasks to be carried out to obtain thedefined outputs

Inputs

What is needed to realize the definedoutputs

Performance Indicators/Targets

(For the goal, purpose, andoutputs, specify quantity,quality, time, and locationof each one)

MonitoringMechanisms

(Sources of data andinformation for theperformance indicators)

Assumptions and Risks

(Conditions that are beyondthe direct control of the citybut important for thesuccessful implementation ofthe strategy)

Table 16: Format for a Logical Framework

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○

Goal

Purpose

Outputs

Activities

102



(Measures of performanceagainst agreed criteria, wherethe denominator representsthe targets to be achievedthrough the strategy inaccordance with the logframe,policy matrix, and otherrelevant plans, programs andproject documents)

(Quarterly or annual) (Including the main contactperson)

Principal Objective Targets and Aims Performance Indicators Frequency of Reporting Responsible Agency


Table 17: Format for Monitoring Inputs, Outputs, Purposes, and Goals

Goal

Purpose

Output

Activities and Inputs

can measure or judge its performanceagainst that of other cities and its ownperformance in the past;

! Assessing performance indicators andidentifying the reasons for any divergencefrom targets;

! Identifying and outlining correctivemeasures to align the strategies with theirgoals and, if possible, with the vision and

mission for the city; and! Recommending revisions in strategy,

where the deviations cannot be correctedto achieve the original goal.Figure 5 summarizes the feedback process.

103

Design Summary Assumptions and Risks Monitoring Indicators


Table 18: Format for Monitoring Assumptions and Risks

Goal

Purpose

Output

Activities and Inputs

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Introduction

PurposeThese guidelines were prepared under anAsian Development Bank (ADB) regionaltechnical assistance (RETA) project1 toassist the five participating cities in drawingup a City Without Slums (CWS) Program.The CWS Program and a City DevelopmentStrategy (CDS) were the two main outputsof the RETA Project.

General Wide ApplicationThese guidelines were used in workshops anddiscussions with technical and stakeholdergroups in five cities and were gradually re-fined during the RETA to respond to theexperience and requirements of all concerned.The guidelines are intended to serve as ageneral reference for CWS Program prepara-tion in cities with widely differing geopoliticalenvironments, cultural backgrounds, physicalsettings, institutional experience, technicalcapabilities, socioeconomic conditions, anddevelopment prospects and priorities.

Participating CitiesCaloocan, Quezon City, and Taguig inMetro Manila, Philippines, have populationsranging from 0.5 million to more than 2.0million. They enjoy a high degree of au-tonomy but little interdependence, eventhough they are part of the same metropolitanarea. These cities experience rapid urbaniza-tion and population growth, and have massiveproblems of poverty and slum formation.They have all been exposed to the povertyreduction and slum upgrading programs ofinternational aid agencies.

Da Nang, located in the central region ofViet Nam, is a major port and tourist desti-nation. It has a rapidly growing population,which is around 0.75 million, but reportedlyonly minor problems of poverty and slumformation. City planning and development isdominated by a strong central Governmentwith seemingly little practical support at

present for slum upgrading. Da Nang haslimited exposure to ADB and conventionalslum upgrading approaches of aid agencies.

Calicut in Kerala State in southern Indiais an economically depressed city. Its popula-tion of less than 0.5 million has not grownmuch in recent years, but the slum populationis nevertheless significant. Addressing theneeds of the poor is a priority in national andstate government policies and programs, butits pursuit is complicated by resource limita-tions. Calicut Corporation has limited expo-sure to ADB and conventional slumupgrading approaches.

Considerations in Preparing theGuidelinesThe emphasis in preparing these guidelineswas on defining a rational and logical processleading to a comprehensive CWS Programthat addresses all facets of poverty. An under-lying theme throughout the process was theneed (i) to maintain links with the parallelCDS process, and (ii) to engage meaningfulstakeholder participation in all stages. Thisrequirement addresses a main symptom ofpoverty: the exclusion of the poor from deci-sions that directly affect their lives.

Need for FlexibilityThese CWS Program guidelines should beused only as a broad reference framework toguide the process and not as a technicalstraitjacket. The guidelines draw on previousprofessional experience in the urban sector,and take into account the different situationsin the five cities. It is hoped that they willhave resonance not only in these cities butalso in other cities that will join the CitiesAlliance (CA) and prepare their CWSprograms in the future. These guidelinestherefore need to be used flexibly, in a mannerconsistent with such realities as (i) the dimen-sions of poverty and slum-related problems,(ii) the availability of resources, (iii) theavailability and reliability of data, (iv) therelative status of CDS preparations, (v) the

existence and impact of pro-poor initiatives,and (vi) the priority given to other, competingdevelopment initiatives.

Full account will also have to be taken ofthe validity of alternative approaches to slumeradication, which in some instances may notsupport conventional slum upgrading solu-tions based on landownership.2

Maintaining MomentumA clear need for close links with the CDS isshown in these guidelines. However, becauseof the urgent need to address endemic povertyand slum formation, poverty reduction effortsmust proceed at the same time that pro-poorinitiatives are being developed on the basis ofthe CWS Program or the CDS process.CWS Program interventions must be imple-mented in tandem with other pro-poor initia-tives, building on their experience and at thesame time having an impact on them—aniterative process that maintains the momen-tum in this critical sector.

Keeping It SimpleFor many years, much debate has surroundedthe issue of poverty, its definition and extent.Complex formulas and approaches have beenproposed for dealing with it. Many of thesedeliberations are no doubt of academic orpolitical value to those who hover on the

APPENDIX 2. GUIDELINES FOR PREPARING A CITIES WITHOUT SLUMS PROGRAM

1 ADB TA 6026-REG: Promoting Urban PovertyReduction Through Participation in the Cities Alliance.

2 In a growing number of local government units(LGUs) in densely populated metropolitan areas suchas Metro Manila there appears to be an increasing con-viction that, given the high cost and limited availabilityof land, the only realistic solution to problems of urbanpoor shelter is not in situ upgrading but the construc-tion of medium-rise apartments—medium-rise buildings(MRBs). The relatively high cost of MRB construc-tion poses potential problems of affordability for poorhouseholds, at least in terms of outright purchase; atthe same time this form of multistory development hasyet to be reconciled with important (Philippine) Gov-ernment shelter initiatives such as the Community Mort-gage Program. Nevertheless, a number of LGUs seethis high-density MRB option as the only feasible long-term solution to their rapidly increasing slum and squattersettlement problems.

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fringes of poverty, but they are often of littlepractical use and are ultimately ignored bythose who are immersed in poverty or mustdeal with it.

An important consideration in preparingthese guidelines, therefore, was to keep themas simple and easily understood as possible.The intent was to ensure their practical useespecially to stakeholders, many of whom lackexperience and familiarity with the CWSapproach. Comprehending guidelines pre-pared in a foreign language would, moreover,be a daunting prospect.

CWS Program–CDS LinksTo succeed, the CWS slum upgrading pro-gram must be part of a comprehensive urbandevelopment strategy, addressing all aspectsof development that affect poverty. In thatsense, the CWS Program is a localizedapplication of the CDS in poor urban com-munities—those now living in slum andsquatter settlements, and those who will formslum settlements in the future. For this reasonclose links need to be maintained between theCDS and the CWS Program. These guide-lines should therefore be read in conjunctionwith those for CDS preparation. The CDSGuidelines diagrammatically illustrates theselinks at various stages of preparation of theCDS and the CWS Program. See Figure 3.The CDS and CWS Interrelation, page 23.

Scope of the CWS ProgramA major consideration in the selection ofparticipating CA cities was the need to dealwith pressing issues of urbanization andpoverty. Poverty reduction is an overridingobjective of the CDS and the CWS Pro-gram. See Box 1.

Secure tenure and improved sanitationare the main indicators of CWS Programaccomplishment, for the CA. The CWSProgram will therefore address legal andenvironmental issues, to ensure the provisionof secure serviced housing for poor urbanhouseholds, as well as acceptable minimumstandards of other basic infrastructure andsocial services. To this end, the program will,in some instances, need to link local infra-structure and service provision to widerstrategic networks, by drawing on the outputsof the key sector studies prepared as part ofthe CDS.

In addition to physical and environmen-tal improvements, the CWS Program will

have to (i) stimulate economic regenerationin slum settlements to create employment andincome; (ii) promote social development andimprove governance and empowerment inpoor urban communities; (iii) help createmore skilled and productive communitiesthrough better public education, health, andwelfare services; and (iv) support enterprisedevelopment and livelihood training.

Although focused on the upgrading ofslum and squatter areas, the CWS Programwill also take into account the need to provideaffordable serviced land and housing for poorhouseholds (i) that are resettled from slumsand squatter settlements in hazardous areasand government reservations, (ii) that aredisplaced as a result of the upgrading pro-cess, or (iii) that could form new slum areas iftheir shelter needs are not met.

The CWS Program must also create thepolicy framework and conditions that will beconducive to greater private investment andstakeholder participation in the slum upgrad-ing process to sustain the program over thelonger term.

Potential Components of the CWSProgram

Two types of CWS initiatives were consid-ered in preparing these guidelines:

! Subproject interventions focused onspecific poor communities that now livein slum or squatter settlements or thatcould form new slums. The interventionswould directly address the main causes ofpoverty and issues related to economicand social development and governance.

! Policy and program interventions to helpin establishing a policy and institutionalframework in participating cities thatwould support and sustain the CWSinitiative over the longer term and bringinitial projects to scale to meet perfor-mance targets.

GuidelinesThe steps set out in these guidelines broadlymirror those in the CDS.

There are six main stages in the CWSProgram preparation process:! Stage 1: Preparation;! Stage 2: Data Collection and Analysis;! Stage 3: Formulation of CWS Program

Goals, Objectives, and Targets;! Stage 4: Preparation of CWS Strategic

Framework;! Stage 5: Implementation of CWS Pro-

gram; and!!!!! Stage 6: Program Monitoring and

Evaluation.

Box 1: Symptoms and Causes of Poverty

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All these stages will involve a high de-gree of participation by and consultation withstakeholders. A CWS Program SteeringCommittee or a similar group will endorse theprogram preparation at key points in theprocess.

In Stage 1 (Preparation) and Stage 6(Program Monitoring and Evaluation),CWS Program activities are virtually identi-cal with CDS activities. The focus of theguidelines is therefore on Stages 2–5.3

STAGE 1: PREPARATION

Institutional ArrangementsThe city, under the direction of the mayor,will lead the preparation of the CWS Pro-gram just as it does in CDS preparation. Incities participating in the RETA the consult-ants acted as advisers. Institutional arrange-ments to support CWS Program preparationwill operate at three levels:! Technical Task Force: to lead CWS

Program preparation;! Housing Board (or equivalent body): to

provide policy support and overall guid-ance; and

! Subproject Stakeholder Groups: to makeinputs into the preparation and imple-mentation of specific site/communitysubprojects.

CWS Program Leader and SupportTeamAs in CDS preparation, the mayor or seniorexecutive of the city4 should drive the processas the CWS Program Director (PD). ThePD will appoint a full-time CWS ProgramManager (PM), who will manage the CWSwork program from day to day. This positionwill be separate and distinct from that of theCDS PM. The CWS PM should be asenior official who will report directly to thePD, but who will be authorized to coordinatedirectly with other department heads in localgovernment in meeting agreed CWS Pro-gram schedules. The PM will be supportedby a dedicated team with suitable experienceand qualifications from appropriate localgovernment departments dealing with urbanpoor or poverty reduction initiatives.

Technical Task Force (TTF)The city will form a Technical Task Force(TTF) to prepare the CWS Program. TheTTF will be made up of senior local govern-

applications to the CA.

Housing BoardIf not already established, a Housing Board(HB) (or an equivalent body) will be formedby the LGUs to provide overall policy guid-ance and direction to CWS Program prepa-rations. The mayor may chair the HB,which should also include senior representa-tives of key LGU departments and selectednational housing agencies, as well as broadstakeholder representation extending to repre-sentatives of people’s organizations (POs)and nongovernment organizations (NGOs)involved in pro-poor shelter initiatives, andthe private business sector (usually developersof low-cost housing).

The TTF will act as the HB TechnicalSecretariat and will make the necessarytechnical presentations for review and en-dorsement, in the process drawing on relevantstakeholder interest groups.

The HB will approve and endorseCWS Program outputs at key junctures ofthe preparation process, including (i) theagreed work program and the monitoring andreporting system; (ii) the shelter needs andresource assessment (see Stage 2);(iii) agreed objectives and targets (see Stage3); (iv) policy and program initiatives form-ing part of the strategic framework (see Stage4); (v) the implementation plan includingprioritized community and site subprojects(see Stage 5); and (vi) applications forfunding support including those submitted tothe CA.

Subproject Stakeholder GroupsA wide range of potential stakeholders will beinvolved in CWS Program preparation andimplementation (i) at the LGU level throughthe HB; and (ii) in the design and imple-mentation of identified site and communitysubprojects.

Box 2 lists the potential stakeholders atthe LGU level.

ment unit (LGU) staff from relevant depart-ments with experience in the urban poorshelter sector (such as the planning office,urban poor affairs office, and city engineer’soffice or their equivalent.) The TTF will beled by the PM, who will assume responsibil-ity as full-time team leader for the preparationand day-to-day management of the workprogram.

The TTF will be responsible for alltechnical aspects of CWS Program prepara-tion. It will also be responsible for (i) coordi-nating within the LGU to ensure overallCWS Program (especially Action Plan andpilot subproject) consistency with availableresources and competing development priori-ties; (ii) interacting and coordinating withsubproject stakeholder groups to ensureappropriate levels of participation and consul-tation; (iii) organizing participatory work-shops and seminars; (iv) preparing CWSProgram documentation and presenting it tothe City Council, Housing Board, and ap-propriate government agencies for approval;and (v) preparing the necessary project/subproject documentation to be submitted insupport of applications for funding, including

Box 2: CWS Program: Poten-tial Stakeholders at LGU Level

! Government (national, provincial,and local) departments involved inpro-poor shelter programs andprojects;

! People’s organizations (POs):broad LGU-level representation inCWS Program preparation, as wellas participation of specific POs incommunity subproject design andimplementation;

! NGOs involved in the pro-poorshelter sector and related sectors;

! Private sector business interests,especially developers of socializedhousing and others in the construc-tion industry;

! Private or public infrastructure andservice providers;

! Government and private landown-ers;

! Civic society;! Academe;! Media representatives: important

in planning and implementing pub-lic awareness initiatives; and

! Special interest groups.

3 In the Philippines two official sets of shelter planningguidelines prepared by the Housing and Land UseRegulatory Board and Housing and Urban Develop-ment Coordinating Council in the early 1990s consid-ered shelter for the urban poor. In addition, the Guide-lines for the Formulation of a Local Shelter Plan forthe Urban Poor were prepared in November 2002 aspart of Asian Development Bank TA-3760-PHI(Metro Manila Urban Services for the Poor Project).

4 In Da Nang, the Vice Chairman of the People’sCommittee directed the preparation of both the CDSand the CWS Program.

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As the CWS Program moves from broaderlong-term program formulation into the moredetailed site/community subproject design,stakeholder interest and involvement willnarrow down to involve groups with moreintimate concerns and interest, such as spe-

cific POs, NGOs, landowners, private sectorinterest groups concerned, and even represen-tatives of national or local government agen-cies with relevant pro-poor programs.

The TTF will ensure that all relevantstakeholders are fully involved in all aspects ofsubproject surveys, feasibility studies, detaileddesign, and implementation. This may bestbe achieved by forming representative sub-project stakeholder groups for each subprojectsite or community, which can act as a counter-part to the TTF in all preparatory andimplementation activities.

Outputs, Work Program, andManagement SystemThe TTF will decide on the required CWSProgram outputs (see Box 3). These willform the basis for (i) preparing the workprogram and assigning tasks; and (ii) settingup a management and reporting system, toextend beyond present LGU institutionalarrangements to involve external stakeholdergroups.

Stage 2: Data Collection andAnalysis

Review of CDS City ProfileThe city profile, to be prepared with theCDS, will cover the demographic, geo-graphical, physical, social, and economiccharacteristics of the city (see Appendix 1,Annex 1.1). It will document present condi-tions and chart future development trends.Because limited time is allowed for compilingthe profile, available data will be used asmuch as possible.

This profile will be reviewed in Stage 2of CWS Program preparation to verifywhether most of the city’s poor are living inslum and squatter areas, and whether povertycan best be reduced through the intendedfocus of the CWS Program on these areas(see Box 4). The review will also yield infor-mation on vacant, potentially developableland in the city areas reserved for strategicinfrastructure and ongoing and committeddevelopment proposals, as well as othercharacteristics that will help in prioritizingprojects at a later stage, such as the locationof potential danger zones.

Data Requirements at the City LevelGiven the limited time allowed for this exer-cise and the restricted capacity of the localgovernment, these indicators should be simpleand directly related to the conditions thatdefine the many facets of poverty. The data tobe collected will therefore include the follow-ing:

Physical and Environmental Condi-tions5

! Location and identity of all informal(slum and squatter) settlements;

! Location of all vacant and potentiallydevelopable land;

! Current and proposed land use;! Landownership and value;! Dangerous, hazardous, and otherwise

undevelopable land (including flood-prone areas and steep slopes);

! Existing and proposed infrastructure andservices (especially the coverage andcapacity of water supply, sanitation,drainage, roads, schools, health centers);and

! Ongoing and committed developmentproposals.

Demographic and SocioeconomicConditions ! Existing and projected population and

growth rates (for the defined CWSProgram period);

! Average household size;! Household income profile, including the

LGU poverty threshold;! Economic activities and unemployment/

underemployment rates;! Primary and secondary school enrolment

and attendance;! Adult literacy; and! Infant mortality and malnutrition rates.

Other Data RequirementsThe review of data should also consider thefollowing:

5 Physical and environmental data will largely be inthe form of maps showing the location of all informalsettlements (slums and squatter areas), as well as allvacant or otherwise developable land on which new ser-viced sites and affordable housing for the urban poorcould be developed. Where possible, the maps will bebased on available geographic information system (GIS)materials. But as most LGUs outside the large metro-politan areas are not likely to have these GIS materials,the maps will have to be based on available aerial pho-tography, land use and development plans, cadastralsurveys, and other data forming part of the CDS orother valid planning and development documents.

Box 3: CWS Program: Re-quired Outputs

! Analysis of city/municipal and infor-mal settlements data (Stage 2);

! Urban poor shelter needs assess-ment and resource analysis (Stage2);

! CWS Program goal, objectives, andtargets (Stage 3);

! Strategic Framework, comprisingpolicy and program initiatives tosupport the CWS Program (Stage4);

! Long-Term and Phase 1 (CWS)Implementation Plan (Stage 5);

! CWS Program Action Plan andpriority/pilot subproject(s) (Stage5); and

! Application for CA funding (whereapplicable).

Box 4: Validating the CWSProgram Approach

The comparative analysis of surveydata at the LGU and informal settle-ment levels can be used to validatethe focus of the poverty reductionefforts of the CWS Program on infor-mal settlements. This comparativeanalysis should be based on agreedpoverty indicators, possibly deter-mined nationally to allow broader(nationwide or even across CA cities)comparison of conditions in urbanareas, such as the percentage ofhouseholds in informal settlementswho are! Below the city average in (i) income

poverty threshold, (ii) unemploy-ment or underemployment rates,(iii) access to safe drinking waterand acceptable sanitation, (iv)primary/secondary school enroll-ment, and (v) educational attain-ment and adult literacy.

! Above the city average in (i) house-hold size and occupancy, and (ii)infant mortality and malnutrition.

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! Ongoing and proposed pro-poor policiesand programs of government (at alllevels), nongovernment entities, andprivate and aid agencies;

! Vision, goal, objectives, key issues, anddevelopment priorities set out for theLGU in the CDS and other valid plan-ning documents; and

! All NGOs, civic organizations, charityand religious organizations activelyinvolved in pro-poor and shelter-relatedactivities at the LGU level.Information on these aspects will allow

the CWS Program to be integrated with andtake full account of parallel urban manage-ment and poverty reduction initiatives.

Profile of City Poverty and SquatterSettlements

The profile will be based on all slums andsquatter areas identified and mapped in thecity/municipal data review (see section onData Requirements at the City Level) butwill also include all vacant, potentially devel-opable land.

As far as possible, especially given thelimited time allowed for preparing the CWSProgram, the analysis should be based onavailable sources, such as socioeconomic datasupporting the CDS and other valid planningdocuments. Detailed survey and analysis willbe required only to prepare feasibility studiesfor identified pilot sites/communities (seesection on Prepare Profile of City Povertyand Squatter Settlements).

Physical and socioeconomic data will beprepared for each identified informal settle-ment (and, where appropriate, vacant devel-opable land). The data will comprise thefollowing:! Physical conditions: land area, owner-

ship, and value; number, use, and condi-tion of structures; existing and proposedinfrastructure and services (especiallywater supply, drainage, sanitation, roadsand footpaths, and garbage collection, aswell as access to education and healthfacilities); main physical features (espe-cially those that could inhibit site devel-opment (such as slopes, rivers, andwaterways and flood-prone areas).

! Population and household characteris-tics: present and projected populationand growth rates (within the definedplan/program period); number and

average size of households; householdincome profile (especially in relation todefined poverty threshold); employment/unemployment rates; educational attain-ment; economic activity and occupation.

! Social services: type and location ofeducation, health, welfare, and recre-ational facilities serving the community;school enrollment and attendance levels;typical reported health problems.

! Profile of urban poor communities:details of people’s organizations (POs)and membership; supporting NGOs;private business interests; priority issuesand concerns of each community.

Assessment of Shelter Needs ofUrban Poor

IntroductionThe assessment will give an overall picture ofpresent and future shelter needs of the urbanpoor against which local governments canmeasure their resources and plot theirresponse. The assessment will be based ondata collected and analyzed at the city leveland in relation to existing informal settle-ments.

Scope of AssessmentLocal governments would normally undertakea comprehensive assessment of housingdemand as part of a comprehensive CityDevelopment Plan. Typically this assessmentwould deal with the full range of housingdemand and include special considerationssuch as the replacement of obsolete housingstock. For the CWS Program, however, theassessment will focus exclusively on theshelter needs of the urban poor at present andin the future. More specifically, it will lookinto (i) the present shelter backlog, repre-sented by the number of poor urban house-holds now living in slum and squattersettlements; and (ii) future shelter needs of low-income households, which, as a result of popu-lation growth, new household formation, andimmigration, could increase the size of theslum/squatter settlements or form new ones ifthese needs are not met.

Definition of “Shelter”To ensure that the poverty reduction objec-tives of the CWS Program are addressed, theassessment of shelter needs will be based onthe widest possible interpretation to include

the need for (i) secure and affordable landand housing; (ii) appropriate standards ofhousing, considering such factors as size,occupancy, condition, and materials; (iii)minimum basic standards of municipal infra-structure and services, with emphasis onwater supply, drainage, sanitation, and gar-bage collection; (iv) essential social services andfacilities, including schools, health care, andwelfare facilities; (v) improved employment andincome-generating opportunities; and (vi)better governance and representation.

Shelter Delivery ApproachBefore shelter needs are assessed, a funda-mental decision has to be made regarding theoverall approach to shelter delivery for theurban poor.

For the purposes of these guidelines, it isassumed that the CWS Program will bebased on a two-pronged shelter deliveryapproach comprising (i) wherever possible,the in situ upgrading of existing informalsettlements, with minimum displacement; and(ii) development of affordable new servicedplots and housing units to accommodatehouseholds resettled from existing settlementsand the new poor households that would beformed in urban areas in the future as a resultof population growth. This approach isconsistent with the scope and objectives of theCWS Program, as well as with the require-ments of most participating LGUs atpresent. However, as has been noted, certainLGUs in more densely populated metropoli-tan areas are increasingly looking at urbanpoor shelter options based on the develop-ment of high- or medium-density/medium-risebuildings (MRBs).

Quantitative Assumptions of ShelterNeedsTo allow broad estimates of the shelter needsof the urban poor several assumptions will bedrawn from the analysis of data at the cityand informal settlement level. These willinclude the following:! Average displacement in informal settle-

ments due to upgradingPurpose: to indicate the demand for newserviced sites and affordable housingcreated by the dismantling of housingunits and the relocation of households inthe course of upgrading.Source: acceptable maximum residentialdensities (housing units or households

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per hectare) or occupancy ratios (house-holds per housing unit), or both, appliedto surveyed conditions in a sample rangeof typical informal settlements.Example: assumptions made whileassessing urban poor shelter needs forCaloocan City, Metro Manila, indicatedan average housing unit displacementdue to upgrading of 20.0%.

! Desirable housing occupancyPurpose: to indicate the demand for newserviced sites created by overcrowdingand the resettlement of households frominformal settlements.Source: relevant local planning anddevelopment regulations.Example: according to the recent MetroManila Urban Services for the PoorProject (MMUSP), Metro Manilainformal settlements have an occupancyratio of about 1.28 households perhousing unit. MMUSP adopted anoccupancy ratio of 1.05 for its shelterneeds assessment.

! Percentage of poor households in futurepopulationPurpose: to calculate the demand forlow-cost shelter resulting from futurepopulation growth.Source: percentage of LGU populationnow living in informal settlements, andprojected growth in city/municipal popu-lation based on the CDS. An assump-tion must be made as to whether thispercentage is likely to increase or de-crease in the future. A key factor indetermining this will be the percentage offuture population growth that is due toin-migration.Example: around 35% of the MetroManila population are now estimated tolive in slum and squatter settlements,although not all of these are necessarilyincome-poor.

In addition to the above, LGUs willhave to agree on acceptable planning andengineering standards to govern the provisionof shelter in the future. These will includeminimum standards for gross residentialdensities; house and plot sizes; water supplyand sanitation; and social facilities such asschools and health centers. These standardsshould all be provided in local planning anddevelopment regulations or in appropriatebuilding bylaws.

Present Shelter Needs of the UrbanPoor

Present needs will be defined in terms ofhousing units and households in informalsettlements. The link between housing unitsand households will be defined by the accept-able occupancy ratio be determined for eachLGU (see section on Quantitative ShelterNeeds Assumptions).

Present shelter needs in informal settle-ments will be further defined in terms of (i)upgradable or nonupgradable housing units;and (ii) retained or displaced households, asfollows:

Type 1: Upgradable housing units/Retained households

(a) Housing units on either governmentor private land that can be upgraded in situ.

(b) Resident households that canremain because of acceptable occupancyratios.

Type 2: Upgradable housing units/Displaced households

(a) Housing units on either govern-ment or private land that can be upgraded insitu.

(b) Resident households that will bedisplaced and resettled in new serviced sitesbecause of overcrowding (occupancy ratiosabove acceptable standards).

Type 3: Nonupgradable housing units/Displaced households

(a) Housing units that cannot beretained because they are in (i) danger zonesor otherwise hazardous areas such as rivers,waterways, flood-prone land, steep slopes,electricity transmission areas, and road reser-vations; (ii) lands officially reserved in ap-proved national, provincial, or localdevelopment or land use plans (or in commit-ted development projects) as (a) publicdomain; (b) public infrastructure, services,and facilities sites; or (iii) sites for uses otherthan socialized housing.

(b) Resident households that will bedisplaced and resettled in new serviced sitesfor the same reasons.

Type 4: Nonupgradable housing units/Displaced households

(a) Housing units that cannot beretained because they will be displaced in theupgrading process, to (i) create road, foot-path, and infrastructure/services rights-of-way; (ii) reduce residential densities to meetdevelopment controls and building regula-

tions, especially in respect of minimum plotsizes, fire regulations, and environmentalconsiderations; and (iii) replace dilapidatedhousing units.

(b) Resident households that will bedisplaced and resettled in new serviced sitesfor the same reasons.

Future Housing NeedsTo meet future housing needs arising frompopulation growth and immigration the citymust provide new serviced sites and afford-able housing units that can accommodatepoor urban households at desirable densitiesand occupancy ratios, with acceptable levelsof municipal infrastructure and social servicesprovision. Otherwise, slum/squatter settle-ments could increase in size or new slumareas could be formed.

Future housing need is calculated on thebasis of the need to accommodate thosehouseholds forming part of all future naturalpopulation growth and in-migration, which ifnot otherwise intercepted and provided for,will expand existing slum and squatter settle-ments or form new informal settlements—inother words, that part of the population thatpotentially forms the urban poor of the future.

Table 8. Housing Needs of InformalSettlements in Caloocan City (page 41) givesan example of an assessment of the urbanpoor shelter needs of a city. It was preparedfor Caloocan City, Metro Manila, during theRETA.

Shelter Components of CWSProgramFrom the preceding assessment of urban poorshelter needs, it is clear there are two mainstreams of shelter provision for the urban poor.

Upgrading of Informal SettlementsWherever possible, existing informal settle-ments will be upgraded, on the basis of secureland tenure. Basic infrastructure and serviceswill be provided in line with acceptable mini-mum standards, and (depending on costrecovery arrangements) with the house own-ers’ ability and willingness to pay. Improve-ments in housing units (vertical structures)will have to be made by the owners them-selves, under private arrangements with local

6 Refer to the ADB or WB Handbook on InvoluntaryResettlement. Also available at http://www.adb.org/Documents/Handbooks/Resettlement.

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contractors or through self-help, and possiblywith the support of home materials loansprovided as part of the CWS Program.

New Serviced Sites and AffordableHousingNew serviced housing sites for the urban poorwill be provided on vacant land to accommo-date the following:! Households resettled from informal

settlements in hazardous areas andgovernment reservations(Nonupgradable housing units/Dis-placed households, Type 3);

! Households displaced by the upgradingof informal settlements (Nonupgradablehousing units/Displaced households,Type 4);

! Households displaced by overcrowding(Upgradable housing units/Displacedhouseholds); and

! New poor households formed as a resultof further population growth, whichcould form new slum and squatter areasor expand existing informal settlements iftheir shelter needs are not met.New plots will be provided with basic

infrastructure and services in line with agreedminimum standards. The type of housing tobe provided—whether core housing, starterunits, or sanitary cores—will depend onagreed cost recovery arrangements andaffordability to potential beneficiaries. Theprovisions of resettlement action plans(RAPs)6 designed to compensate householdsresettled under the CWS Program Housingwill make the housing more affordable.

Resource AnalysisTo prepare a phased program of shelterdelivery, the likely rate at which urban poorshelter needs can be met—the number ofupgraded and new serviced plots, as well asaffordable housing units and supportingservices and facilities, that can be deliveredeach year throughout the CWS Programperiod—must be estimated. The requiredresources must be measured against theavailable resources to give a broad indicationof capacity to meet the shelter needs.

Resources NeededLand, infrastructure, building materials,labor, and finance will be needed to meetprojected urban poor shelter needs.

LandEstimates of the additional land required tomeet urban poor shelter needs over the planperiod will be based on the need for newserviced sites and housing. Assumptions willhave to be made as to the average plot sizeand the proportion of net to gross residentialarea in new sites, taking into account landneeded for roads, footpaths, open space, andcommunity facilities, as well as potentiallyundevelopable areas, such as creeks andrivers.

Municipal Infrastructure and ServicesWater supply, electricity, sanitation, and solidwaste management systems must be provided.Calculations of the capacity of public utilitiesrequired to support this provision will bebased on agreed standards, taking into ac-count those households and housing units tobe retained in existing sites, which are alreadyprovided with some level of infrastructure andservices. For example,! Water supply: assume one metered

connection per housing unit, an accept-able housing occupancy ratio, and anaverage water consumption per house-hold per day.

! Electricity: assume one metered connec-tion per housing unit, an acceptablehousing occupancy ratio, and an averageelectricity consumption per householdper day.

! Sanitation: in most cases it will be safe toassume that a high proportion of domes-tic sanitation in low-cost housing areaswill use septic tanks. Assume one stan-dard domestic septic tank per housingunit, an acceptable housing occupancyratio, an average household size, andthen, on that basis determine the require-ments for desludging.

! Solid waste management: from experi-ence, estimate the garbage generatedweekly by each household, and thus therequirement for a sanitary landfill dis-posal site.

Building Materials and LaborThe analysis of building materials require-ments will be limited to materials required for(i) civil works contracts, such as for the con-struction of roads, footpaths, drainage, andwater supply works; and (ii) basic houseconstruction materials, such as cement, GIsheets, bricks and blocks, and plumbing and

electrical materials. Under the CWS Pro-gram only appropriate and affordable formsof housing (such as core housing or starterunits) will be built in new serviced sites. Allother aspects of housing provision will be theresponsibility of individual owners.

Estimates of building materials and laborcan be arrived at through consultation withlocal suppliers, developers, and contractors,as well as with LGU departments concerned(such as the City Engineer’s Office [CEO]).This approach will be facilitated by theinvolvement of a wide range of private busi-ness interests, including those from the con-struction industry, as stakeholders in CWSProgram preparation. In estimating futurelabor requirements, it will be important toremember that, to minimize cost and increasethe sense of ownership, the fullest possibleuse must be made of residents’ self-help.

FinanceOnly broad estimates of the financial implica-tions of meeting urban poor shelter require-ments over the defined CWS Program periodare needed. Detailed cost estimates will notbe needed at the initial preparation stagebecause (i) 15-year cost projections areinherently unreliable; (ii) the assessed needsthemselves are based in part on untestedassumptions; (iii) there is a lack of specificdetail regarding individual site developmentrequirements and beneficiary affordability;and (iv) details of cost recovery mechanismsand funding arrangements still have to bedetermined. All that the LGUs need is apreliminary indication of the likely financialimplications of meeting the shelter needs oftheir poor constituents, around which theycan begin to plan a response.

7 Some shelter plan documents, such as those in thePhilippines, indicate the need to undertake anaffordability analysis of poor urban communities at theneeds assessment stage. The affordability analysis in-volves an estimate of the financial resources of the ur-ban poor to be used for housing, taking into account (i)current and future household income and expenditure,(ii) household income available for housing, (iii) alter-native housing options available, and (iv) available hous-ing finance and pro-poor support programs. Thisaffordability analysis will help identify the feasible hous-ing options available to the urban poor, given theiraffordability constraints. However, given that (i) CWSProgram preparations at this stage are concerned onlywith shelter needs at the LGU level, (ii) the LGUs arelikely to have limited available data and technical ca-pacity, and (iii) the shelter program must be preparedwithin a short time, it is recommended that thisaffordability analysis be undertaken only later at thedetailed feasibility study stage for identified priority sub-projects (sites and communities).

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More detailed cost estimates must,however, be prepared to draw up a budget forthe CWS Program Phase 1 and ActionPlan, and to complete the financial andeconomic analyses for the feasibility studies ofidentified subproject sites and communities.7

The financing estimates can be based onassumed minimum standards as follows:

Land acquisition! Unit: the land area required for all

upgrading and new sites, based onassumed gross or net residential densi-ties, and taking into account land alreadyacquired by the LGU or by potentialbeneficiaries under government housingprograms (such as the CommunityMortgage Program in the Philippines).

! Basis for cost estimate: site location,area, and market value.

! Source: LGU real property assessor,private sector realtors, and landowners.

In situ upgrading! Unit: the total gross area of sites to be

upgraded or the total number of plots orhousing units to be upgraded.

! Basis for cost estimate: past experienceand the average upgrading cost perhectare, per plot, or per housing unit.

! Source: key LGU departments such asthe City Planning Development Office(CPDO), Urban Poor Affairs Office(UPAO), and CEO, as well as NGOs,POs, and socialized housing developersor contractors in the private sector.

Development of new serviced sites! Unit: the total area of new site develop-

ment or the total number of proposednew plots or HUs.

! Basis for cost estimate: past socializedhousing development experience in siteswith similar conditions and the averagecost per hectare or per plot.

! Source: LGU departments such as theCPDO, UPAO, and CEO, as well asNGOs, POs, and socialized housingdevelopers or contractors in the privatesector.

New housing! Unit: total number of new housing units

required and assumptions regardingstandards and proportions of differenthouse types (core house, starter unit,

sanitary core, etc.).! Basis for cost estimate: past socialized

housing experience and cost per type ofhousing unit or per square meter.

! Source: key LGU departments such asthe CPDO, UPAO, and CEO, as wellas NGOs, POs, and socialized housingdevelopers or contractors in the privatesector.

Municipal infrastructure and services! Unit: any offsite or mains infrastructure

or service provision.! Basis for cost estimate: approximate

coverage of service or length of mainsinfrastructure provision.

! Source: CEO and appropriate public orprivate sector utility agencies; also theCDS and other valid LGU planningdocuments including the Public Invest-ments Program (PIP) or Capital Invest-ment Program (CIP) and annualbudgets. (In calculating the cost of meet-ing urban poor shelter needs, it shouldbe noted that mains infrastructure andservices will also have other uses.)

Social facilities and services! Unit: the requirement will be based on

the application of broad planning stan-dards for schools, health centers, openspaces, and other community facilities, tothe total number of households.

! Basis for cost estimates: standard costsper site, building, or unit (such as therequired number of schools or class-rooms), together with cost of equipment,supplies, and staffing.

! Source: appropriate central or localgovernment departments, such as thosefor health, education, and social welfare;also the CDS and other valid LGUplanning documents including the PIPand annual budgets. (In calculating thecost of meeting urban poor shelter needs,it should be noted that these social facili-ties and services will also have otheruses.)

Resettlement! Unit: the number of housing units in

existing settlements to be dismantled andthe number of households to be voluntar-ily relocated.

! Basis for cost estimates: standard com-pensation packages included in the

RAP, plus other related costs, such asfor surveys, social preparation, andtransportation.

! Source: Appropriate government, ADB,World Bank (WB), or other acceptedguidelines for resettlement.There will also be a need to take into

account the financial implications of otherCWS Program support programs, such as (i)livelihood and enterprise development; (ii)home materials loans; (iii) training and capac-ity building of key LGU staff, NGOs andPOs; and (iv) information dissemination.

Available ResourcesTo arrive at some indication of the rate atwhich projected shelter needs can be met overthe plan period, available resources must bemeasured and compared with the requiredresources. Available resources will include thefollowing:

LandIn assessing the suitability of land for devel-opment for shelter for the urban poor, consid-eration must be given to a number of factorssuch as (i) topographical constraints that willincrease development costs, (ii) location inrelation to employment opportunities andcommercial/community facilities, and (iii) theease of providing infrastructure and services.

Subject to these considerations, variousland typologies such as the following poten-tially offer CWS Program developmentopportunity:! Government landholdings that can be

used for upgrading or new serviced sitedevelopment;

! Other land identified but not yet ac-quired for government socialized hous-ing, slum upgrading, or sites and servicesdevelopment;

! Land already turned over to urban poorcommunities but still requiring upgradedinfrastructure and services under govern-ment socialized housing finance pro-grams (such as the CMP in thePhilippines);

! Idle private lands; and! Foreclosed properties.

Infrastructure and services! Spare capacity for municipal infrastruc-

ture and services, taking into accountongoing and committed developmentprojects.

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Institutional capacity/capability! Local government staffing capability,

taking into account other competing rolesand responsibilities, and the need fortraining and capacity building; and

! Nongovernment resources, includingmanpower and finance from the privatesector, NGOs, community equity, andself-help initiatives.

Financial resources! LGU financial resources, based on

revenue and expenditure projections,budgetary allocations for socializedhousing, additional national Governmentgrants, possible donor financing, andbond flotation; and

! Resources generated from other ongoingand committed poverty reduction andshelter programs of the government andthe private sector.In most developing countries, available

resources will invariably fall well short ofthose required to meet projected shelterdemands. In preparing the long-term pro-gram, therefore, there will be a need to takeinto account the time needed to bolster re-sources through various policy and programinitiatives, other parallel urban poor initia-tives, or approved planning and developmentdocuments such as the CDS.

Both government and nongovernmentcapacity and capability are dependent on arange of variable factors such as (i) the evolv-ing political environment in each LGU, (ii)the commitment of successive teams of seniorexecutives and senior staff, (iii) the effective-ness of organizational arrangements designedto support the CDS and the CWS Program,(iv) the role of the private sector in CDS/CWS Program implementation, (v) the level

of community response and self-help involve-ment, (vi) competing development priorities,and (vii) the impact of training and capacitybuilding programs. It is therefore difficult toassess institutional performance as a deter-mining factor in CWS Program formulation.The only rational approach seems to bebased on the assumption that the pro-grammed level of CWS Program deliveryrepresents a reasonable and incrementalincrease over current levels of accomplish-ment.

Stage 3: Formulation of CWSProgram Goal, Objectives, andTargets

CWS Program GoalThe overall CWS Program goal will com-prise a broad definition of accomplishmentthat will support the attainment of a longer-term multisectoral development vision. It isthis vision that forms the basis of the CDS.

Box 5 shows this link between the CDSvision statement and the CWS Program goalprepared by City Corporation (LGU) andkey stakeholders for Calicut City in Kerala,India.

CWS Program ObjectivesCWS Program objectives will directly sup-port the attainment of the goal—and thus, inturn, the overall development vision stated inthe CDS.

The main factors that affect the poorurban households and define their conditionare the following: (i) lack of secure tenure;(ii) poor quality of life due to inadequateinfrastructure and service provision anddegraded environmental conditions; (iii) highlevels of unemployment or underemployment,and therefore limited household income; (iv)limited access to education, health, andwelfare services; (v) limited access to creditand financial services; and (vi) exclusion fromkey decision-making processes.

By definition, the CWS Program di-rectly addresses some of the main causes ofpoverty, especially those causes linked toinsecurity of tenure and a poor quality of life.CWS Program objectives therefore supportthe eradication or the significant reduction ofpoverty, and are linked to the need to providepoor urban households with! Security of tenure;! Minimum acceptable standards of mu-

nicipal infrastructure and social services;! Improved employment and income-

earning opportunities;! Improved education, skills training, and

health care;! Better access to credit and other financial

services for house-plot purchase, homeimprovement, enterprise development,and livelihood activities; and

! Improved levels of community organiza-tion, capacity, and empowerment.

It will be up to individual LGUs tointerpret these (or other) objectives in compli-ance with prevailing conditions. Dependingon the availability of data and the level ofanalysis, these objectives can be defined eitherin a broadly generic form (as above) or inmore detail with specific reference to realneeds.

The fact that the CWS Program will beprepared with the direct participation of allconcerned stakeholders, including representa-tives of poor urban communities, is in itselfresponsive to the issue of empowerment of theurban poor.

Box 5: CDS Vision Statementand CWS Program Goal forCalicut City

Development vision: By 2020 (theend of the CDS planning period) “tobecome the central place for theregional development of Malabar, thenorthern part of Kerala State.”

CWS Program goal: “A slum- freeCalicut by the year 2020.”

Box 6: CWS Program Objec-tives for Calicut City

! To ensure security of land andstructure tenure for all slum dwell-ers by 2020.

! To upgrade basic infrastructuresand services in all slum sites thatare suitable for upgrading by 2020,with emphasis on water supply,sanitation, and drainage.

! To improve the capability of slumdwellers to improve and maintaintheir dwelling units on a self-helpbasis through skills training andbetter access to credit.

! To generate more employmentand income in slum settlementsthrough skills training and liveli-hood development programs, andsupport for growth-oriented enter-prises.

! To improve slum dwellers’ accessto better education, health care,and welfare services.

Source: Calicut City: Draft Final CDS/CWS ProgramReport.

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CWS Performance TargetsPerformance targets are quantified programobjectives against which relative accomplish-ment can be measured. The accurate determi-nation of shelter needs will make it possible todefine specific objectives and thus, in turn,performance targets. These targets are impor-tant monitoring tools. To facilitate monitor-ing, evaluation, and program review, targetscan be established for each year, or at leasteach phase of the program.

Although the CA identifies security oftenure and improved sanitation as the princi-pal indicators of the CWS Program accom-plishment, performance targets will have to beestablished for each Program objective. It willbe the responsibility of each LGU to defineits performance targets in more detail as partof a CWS Program performance monitoringsystem. These indicators must be readilyquantifiable. Performance targets can beexpressed as an absolute number, as a per-centage (increase/improvement) over existingconditions, or as a percentage of ultimateaccomplishment.

Box 7 lists suggested performance tar-gets based on the CWS Program objectivesfor Calicut City set out in Box 5.

Stage 4: Preparation of CWSStrategic Framework

IntroductionBy matching the urban poor shelter needsagainst resource requirements and availability,in the context of agreed CWS Programobjectives and targets, a CWS Program ofshelter delivery over the defined programperiod can be formulated.

CWS Program initiatives derived fromthe needs assessment will be concernedmainly with the legal, physical, and environ-mental condition of the urban poor, that is,with security of tenure and the provision ofacceptable minimum standards of municipalinfrastructure and services, all of which areimportant performance indicators for theCWS Program. However, in addition, it willbe necessary to! address all other aspects of poverty in

cluding the full range of socioeconomic

Box 7: Suggested Performance Targets for Calicut City

Objective 1To ensure security of land and structure tenure for all slum dwellers by 2020.Performance Targets! Number of households in slum settlements who have received official title for

their house plot.! Number of upgraded and new serviced plots for which title has been awarded.

Objective 2To upgrade basic infrastructure and services in all slum sites suitable for upgrading by2020, with emphasis on water supply, sanitation, and drainage.Performance Targets! Number of households in slum settlements with service connections to water

mains, sewer system, and septic tanks.! Length of access road, footpath, and drainage system in slum settlements, com-

pared with present provision.! Incidence and extent of flooding in slum settlements.! Incidence of waterborne diseases in slum settlements.

Objective 3To improve the capability of slum dwellers to improve and maintain their dwellingunits on a self-help basis through skills training and better access to credit.Performance Targets! Number of slum dwellers attending construction skills training classes.! Number of households in slum settlements taking out microfinance loans for home

improvements.! Number of housing units in slum settlements or resettlement and new low-cost

housing sites that were totally or partially built, extended, or repaired throughself-help.

Objective 4To generate more employment and income in slum settlements through skills trainingand livelihood development programs, and support for growth-oriented enterprises.Performance Targets! Number of new jobs created and additional persons employed in slum settle-

ments.! Number of persons from slum settlements attending skills training courses and

livelihood/enterprise development programs.! Household income and expenditure in slum settlements, compared with present

income and expenditure.! Number of microfinance loans taken out by households in slum settlements for

livelihood and growth-oriented development purposes.

Objective 5To improve slum dwellers’ access to better education, health care, and welfare ser-vices.Performance Targets! Number of additional school buildings and classrooms, health care centers, and

beds serving households in existing slum settlements.! School attendance and educational attainment of children from households in slum

settlements.! Number of slum dwellers registered with, attending, and receiving treatment at

health centers.! Reported incidence of malnutrition, illness, and disease among slum dwellers.

Note: All performance targets can be expressed in absolute terms or measured against present conditions or againstdesirable levels of accomplishment.

8 ADB-TA 3760-PHI, Metro Manila Services for thePoor Project (MMUSP), Final Report, Volume 2,Appendix P, 2003.

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concerns such as the need for more jobs,better education and health care, accessto credit, and greater representation forthe urban poor; and

! facilitate successful shelter deliverythrough policy and program initiatives insuch critical areas as land acquisition,and improved institutional and organiza-tional arrangements to encourage privatesector support and community self-helpinvolvement.

All of these will require specific policyand program initiatives that will form part ofa parallel CWS strategic framework in sup-port of CWS Program objectives.Range of Strategic InterventionsThe scope and content of the strategic frame-

work needed to support the CWS Programwill vary between LGUs, depending, amongothers, on the policy and institutional environ-ment and the nature of shelter problems ofthe urban poor. An indication of the widerange of supporting strategic interventions isgiven in Box 8. For comparison, Box 9 liststhe major elements of the 15-year (2003–2017) Strategy for Slum Eradication inMetro Manila prepared under theMMUSP.8

Whatever the ultimate form and contentof the strategic framework for the LGU, eachcomponent of the strategy should be de-scribed in full and should at least indicate thefollowing: ! Objective and scope in terms of CWS

Program preparation and implementa-

tion, to include desired impact/outcome;! Agency responsibility, including the

allocation of technical and financialresources;

! Business plan, to include scheduled startdate, immediate action (next steps), andtime allowed for completion;

! Link to other national, provincial, orlocal government development initiatives;and

! Additional resource requirements andlikely sources.

Strategic Considerations in Deter-mining PriorityThe wide-ranging nature of the strategicframework indicates that it should be pre-pared in close coordination with the CDSand other comprehensive development plan-ning initiatives in each LGU. Many of theproposed initiatives may already be incorpo-rated in these documents. Some policies andprograms will require considerable time toprepare and put into effect with the necessary

Box 8: Typical Policy and Program Initiatives under the CWS Program

! Preparation of comprehensive slum upgrading policy will involve a review and, wherenecessary, the updating of pro-poor and slum upgrading policies and programs.

! Expansion of ongoing poverty eradication programs will involve determining the rel-evance and impact of existing government, NGO, and private sector pro-poorprograms and projects on the CWS Program, and integrating these into the CWSProgram as far as possible.

! Organizational and capacity strengthening of key institutions involved in povertyreduction and related sectors, including (i) relevant departments of national, state,and especially local government agencies, (ii) CDS/CWS Program steering groupsand technical support committees, (iii) NGOs, (iv) people’s organizations (POs),and (v) microfinance and local banking institutions. Project interventions will in-clude more targeted capacity building initiatives related to specific site/communityconditions, especially among NGOs and POs.

! Improved education, health care, and welfare services will involve relevant govern-ment and private sector agencies in the provision of facilities, human and financialresources, and development programs in support of the CWS Program, including,for example, preschool institutions and primary schools, primary health care facili-ties, recreational facilities, and rehabilitation centers. Again, there will be a moretargeted application of these programs to the specific needs of identified commu-nities.

! General public and community awareness campaigns will include those related to (i)fight against crime, alcohol, drug abuse, and HIV-related problems; (ii) support forbetter health and environmental management practices such as advice on food andnutrition, sanitation, waste disposal, and recycling; and (iii) wider appreciation ofthe objectives and scope of the CWS initiative.

! Information sharing and dissemination on various aspects of the CDS and CWSProgram through the development of a stakeholders’ IT and community-basedinformation network and links to other CA cities and programs.

! Strategic planning and programming to provide an evolving context for long-termCWS Program development. This will be undertaken through the maintenance ofclose links and integration with ongoing CDS activities, such as studies and masterplans in local economic development, transportation, sewerage, drainage/floodcontrol, and other key sectors.

! Preparation of a CWS Program Operations Manual will be a valuable tool in scaling upthe Program within the city, and then to the regional and national levels.

Box 9: Proposed Metro ManilaSlum Eradication Strategy(2003–2017)

! Holistic or integrated approach toshelter;

! Greater participation of the privatesector;

! Two-pronged approach to housingneeds of the urban poor (upgradingand resettlement/new site develop-ment);

! Effective integration of socializedhousing zones with the rest ofurban development, local develop-ment plans, comprehensive landuse plans, and zoning ordinances;

! Workable estates managementsystems; and

! Good collection system to ensurecost recovery.

Source: MMUSP, Final Report, Volume 2,Appendix P, November 2002.

9 The CWS Program period and target year for theattainment of zero slums (2020) will need to be ad-justed to meet specific circumstances. In Caloocan,Metro Manila, for example, a target year of 2017 wasadopted as the basis for CWS Program estimates toconform to the MMUSP time frame.

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official approvals; some may require to beaddressed at the provincial or national levels.These factors and the fact that these policyand program interventions will be necessaryto facilitate shelter delivery in line with CWSProgram schedules indicate that the strategicframework will be an important considerationin determining Program priorities (especiallythe Phase 1 and Action Plans) on the basisof what can immediately be done.

Stage 5: Implementation of theCWS Program

IntroductionThe preparation of the CWS ProgramImplementation Plan will consider a numberof factors derived from previous preparatorystages, as follows:! Total urban poor shelter needs, as deter-

mined through the needs assessment andthe comparative analysis of required andavailable resources (Stage 2);

! Overall CWS Program objectives andperformance targets (Stage 3);

! Realistic assessment of the impact ofstrategic policy and program initiatives(Stage 4); and

! CDS, other valid planning and develop-ment documents, and competing devel-opment initiatives identified in these andin the PIP and annual budgets.It is recommended that the CWS Pro-

gram Implementation Plan be expressed interms of three main planning horizons—longterm, first phase, and immediate implementa-tion. Because there is a close correlationbetween the CDS and the CWS Program,and a need to respond to the overarching CAaccomplishment target set out in the Millen-nium Declaration, it is recommended thatboth the CDS and the CWS Program betargeted toward 2020. Allowing for lead timefor operationalization, this suggests a CWSprogram period of about 15 years.9

Long-Term Implementation Plan

LTIP Form and ContentFor the purposes of these guidelines, it isassumed that the Long-Term ImplementationPlan (LTIP) will be designed to meet allexisting and projected urban poor shelterneeds within the defined (CWS) Programperiod. To promote the close integration ofurban planning initiatives, the LTIP horizon

should correspond to that of the CDS—about 15 years.

The LTIP will be formulated withoutany direct reference to identified informalsettlements or new sites. It will simply set outa phased schedule of accomplishment for theplan period in terms of the number of up-graded, resettlement, and new serviced plots(housing units) to be delivered, and theequivalent number of poor households accom-modated, on the assumption that the shelterneeds of the urban poor will be zero by theend of the program period. On the basis ofthis phased program of delivery and theassumptions made in the resource assessment(see Stage 2), the LTIP will also give abroad indication of costs. However, while thecost estimates will be made as accurate aspossible, these will for the most part be basedon available data and on the unit costs usedfor the resource assessment in Stage 2, withan appropriate escalation factor.LTIP PurposeThe LTIP takes the needs assessment (Stage

2) a step further in that it gives LGUs aphased program of shelter delivery that isconsistent with available resources andpresent development constraints, but alsowith the LGUs’ perceived ability throughoutthe CWS Program period to incrementallyaugment these resources and overcome theseconstraints. It gives LGUs an indication ofthe rate at which land has to be acquired,infrastructure and services have to be pro-vided, technical capability has to be im-proved, and financial resources have to bemade available. It also provides a reliableframework for immediate and short-termaction.

Shelter Components of the CWSProgramThe LTIP will be defined by the rate atwhich upgraded or serviced plots (housingunits) can be delivered and poor householdscan be accommodated. It will be expressed interms of three main streams of shelter deliv-ery:

Box 10: Typical Subproject Initiatives under the CWS Program

! Improved security of land tenure and structure tenure: this will involve (i) landowner-ship mapping and valuation of land in identified slum/squatter settlements, andvacant, potentially developable land; (ii) preparation of topographical, physical, andcadastral surveys; (iii) exploration of alternative land acquisition approaches andtenure arrangements; (iv) acquisition of land in accordance with funding con-straints and technical, economic, and social project evaluation; and (v) issuance oftitles or secure leasehold agreements to eligible beneficiaries.

! Upgrading or provision of basic infrastructure and services in informal settlements andin resettlement and new low-cost housing sites: the infrastructure and services willinclude roads, footpaths, drainage and flood control structures, water and electric-ity supply networks, sewerage and sanitation systems, solid waste managementsystems, streetlighting, schools, health centers, community and rehabilitation cen-ters, and public open space and recreation facilities.

! Provision of affordable housing units in resettlement and new low-cost housing sites.! Maximized opportunities for self-help improvement in site development and housing

through training programs, access to microfinance support, and links to otherestablished government pro-poor programs.

! Financial and microfinance support for house/plot purchase, and growth-orientedenterprise and livelihood development.

! Community training and capacity building: including programs to (i) empower andpromote greater self-reliance in poor urban communities; (ii) improve communityorganization and management and livelihood activities; and (iii) promote moreeffective participation in CWS Program preparation, implementation, monitoring,and evaluation.

! Institutional strengthening and capacity building of specific stakeholder groups includ-ing appropriate LGU departments, NGOs, and microfinance institutions.

! Education and awareness-raising campaigns (i) within the private sector to encour-age investment in the CWS Program; (ii) of specific communities in matters relatedto the prevention of HIV, crime, and drug abuse; and (iii) to encourage communitysavings and loan programs.

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! Upgrading: the in situ upgrading of plots(housing units) in existing informalsettlements.

! Resettlement: the development of newserviced sites and affordable housingunits to accommodate households dis-placed (i) from informal settlements indanger areas and strategic governmentreservations; and (ii) from existing settle-ments as a result of upgrading or over-crowding in excess of acceptableoccupancy ratios.

! New site development: serviced plots andaffordable housing units to accommodatethat proportion of future populationgrowth during the CWS Program periodthat could lead to the formation of newslums and squatter areas or the expan-sion of existing ones.

Main CWS Subproject InterventionsWithin the three main streams of shelterdelivery, the CWS Program will make arange of interrelated interventions at thesubproject (site or community) level to ad-dress the social and economic (as well as thelegal, physical, and environmental) conditionsthat define poverty in these areas.

Box 10 sets out the types of interventionsthat typically may need to be explored in theCWS Program at the subproject level. Theimplementation of many of these will dependon supporting policy and program initiativesincluded in the CWS strategic framework.

LTIP FormulationPractical considerations mean that although itis desirable to implement the CWS Programon the basis of prioritized need, this may notalways be possible. The LTIP needs to beformulated by balancing development priori-ties with practical considerations of resourceavailability.

Initial CWS Program interventions aremore likely to be bound by existing resourceconstraints and focus more on practicabilityrather than absolute need. However, as theLGU resource base expands over time as aresult of accumulated experience and theimpact of policy and program interventions,the scope and momentum of CWS Programshelter delivery can expand exponentially, toincreasingly take account of priority interven-tions.

Priority Shelter NeedIf need were the sole basis, it would in mostinstances be reasonable to adopt the followingurban poor shelter priorities:! Priority 1: Resettlement of households

from danger zones. Immediate life-threatening danger is clearly the firstpriority. However, before these areas canbe cleared new serviced resettlementsites and affordable housing units must

exist to accommodate displaced house-holds, and a Resettlement Action Plan(RAP) must be prepared to provide forcompensation and support for displace-ment.

! Priority 2: Upgrading of informal settle-ments with extremely poor environmentalconditions. Public health is also a pri-mary concern. In addition to the provi-sion of minimum standards ofinfrastructure and services, there will be arequirement in these subprojects forserviced resettlement sites and affordablehousing units to accommodate house-holds displaced as a result of upgradingor overcrowding. Again, displacedhouseholds will receive compensation andsupport on the basis of a RAP.

! Priority 3: Resettlement of informalsettlements in government reservationsneeded for strategic infrastructure develop-ment. The removal of settlements thatobstruct broader LGU developmentmust be a high priority. Again, the re-quirement here will be for new servicedresettlement sites and affordable housingunits to accommodate displaced house-holds, and for the preparation of a sup-porting RAP.

! Priority 4: Development of new servicedsites and affordable housing units toforestall the expansion of slums or thecreation of new ones. . . . . While addressingproblems in existing informal settlements,it will be important to prevent furtherexpansion of slums and squatter areas orthe formation of new informal settle-ments.

Key ResourcesIn formulating the LTIP, resource limitationsmust be taken into account. Land, forexample, is a critical resource, as all forms ofpriority shelter entail some element of vacantland acquisition either for resettlement or fornew serviced plots (housing units) (see Box11). Key resources that are likely to growthroughout the CWS Program, and that canbe reflected in an incremental program ofshelter delivery focused more on priorityconcerns, include the following:! Land. There should be increasing access

to vacant land as negotiations withlandowners, legal proceedings, or otheracquisition initiatives are concluded, andas supporting policy initiatives take effect.

Box 11: Land Acquisition

A high proportion of urban poor shel-ter needs will be for new servicedplots and affordable housing to ac-commodate resettlement or to fore-stall future demand. The acquisition ofsuitable and affordable vacant land fordevelopment is therefore a high prior-ity. The identification of potentiallyappropriate land should be followedimmediately by negotiations withlandowners, as the acquisition of landin the Philippines (even within andbetween government agencies) isgenerally a complex and protractedprocess, which needs to be antici-pated in LGU programming and bud-geting as early as possible. The needto ensure that new serviced shelterdevelopment is in accordance withproposed development trends andland use patterns, and is supported bymains infrastructure and servicesprovision of adequate capacity, furtherreinforces the importance of maintain-ing close links with the CDS in prepar-ing and implementing the CWSProgram. In instances where there arehigh urban densities and limited landavailability to meet demand within cityboundaries, there may be a need toseek suitable sites in adjacent areas.Again, the CDS will give a broad indi-cation of proposed developmenttrends and land uses that may extendbeyond city boundaries and give someindication of external land availabilityand use. If the need for land acquisi-tion beyond city boundaries doesappear likely, there will be great ad-vantage in seeking out the appropriatesite and making the necessary movestoward collaboration with adjacentlocal governments, private landown-ers, and other parties concerned, atthe earliest possible opportunity.

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! Finance. Revenue should steadily in-crease as a result of improved LGUfinancial management systems. Increasedrevenue, in turn, should spark growingprivate sector confidence and investment.

! Infrastructure and services. The imple-mentation of the CDS and related devel-opment planning initiatives should widenmains infrastucture and service coverageand capacity to support CWS Programupgrading and new site initiatives.

! Technical capability. Accumulated expe-rience, coupled with the impact of tar-geted programs of training and capabilitybuiliding, should result in improvedinstitutional performance at all levels(LGU, NGO and PO).

! Community self-help participation. Theimpact of community-based awarenessraising and leadership and organizationtraining programs, coupled with experi-ence and consistent involvement asstakeholders in the CWS Programpreparation and implementation process,should result in increased communitycooperation and self-help participation.

! Private sector involvement. Public infor-mation campaigns, consistent stakeholder

involvement, and proven performanceshould provide the basis for growingprivate sector involvement in the CWSProgram.

SummaryThe rate of shelter delivery over the long termis therefore likely to increase exponentially inline with the expanding LGU resource baseand the growing impact of supporting policyand program interventions making up thestrategic framework. On the assumption thatthe LTIP is to be carried out in three mainphases of similar duration, this could producethe following pattern of delivery: ! Phase 1: 15–20% of total need (housing

units or households),! Phase 2: 25–35% of total need (housing

units or households), and! Phase 3: 40–55% of total need (housing

units or households).This theoretical example is only intended

to illustrate a general principle that may beapplied to LTIP formulation. Parameters andassumptions will have to be adjusted in linewith the prevailing circumstances in eachLGU.

Revised cost estimates will be prepared

on the basis of the phased LTIP program ofshelter delivery. These will be a refinement ofthe broad cost estimates incorporated in theneeds assessment (Stage 2). The same costassumptions, updated where possible, andescalation factors that reflect the LTIP phas-ing schedule will apply.

Short-Term Implementation Plan

IntroductionThe preparation of the Short-Term Imple-mentation Plan (STIP) will be based on thefirst phase of the LTIP. It will normally covera period of around 5 years, adjusted to meetthe specific circumstances in each LGU. TheSTIP will include priority shelter interven-tions identified by matching prioritized needagainst available resources as these are ex-panded throughout the first phase of theCWS Program.

The STIP will be prepared in signifi-cantly more detail than the LTIP. It willadopt the broad mix of shelter types includedin the LTIP (upgrading, resettlement, andnew sites), but will apply these directly tospecific informal settlements and new sitesidentified in the mapping and survey dataprepared in Stage 2. This will inevitablyinvolve some adjustments to the LTIP phas-ing and estimates, which can be accommo-dated over time as part of a regularmonitoring and review process.

STIP Selection CriteriaThe LTIP Phase 1 framework will providean initial definition of the overall STIP scopeand content, and an indication of the relativeproportions of shelter types (upgrading,resettlement, and new sites). The STIP willreinterpret this definition with direct referenceto existing informal settlements and potentialnew developable land identified in Stage 2.This will be undertaken through the applica-tion of selection criteria. See Box 12. STIPSelection Criteria for the CWS Program.These criteria may not in all instances becompatible, and it will be up to the TTF andinvolved stakeholders to place value andweighting on each criterion, to define theSTIP.

Data RequirementsAs far as possible, the STIP should beprepared on the basis of complete baselinedata for all identified sites and communities.

Box 12: STIP Selection Criteria for the CWS Program

! Land acquisition and development cost. It will be important to ensure that all land inidentified upgrading and new sites can be acquired and developed within thePhase 1 time frame, at a cost consistent with beneficiary affordability and PIPfunding constraints.

! Adequate resettlement site capacity. The development of adequate resettlementsite capacity should be included in Phase 1 to accommodate the anticipated levelof displacement and resettlement. The LTIP and shelter needs assessment will givean indication of this.

! Adequate mains infrastructure availability and capacity. This should be sufficient toallow upgrading and/or development of all STIP subproject sites and communitiesto agreed standards within the specified Phase 1 time frame.

! Demonstrably high levels of need. This will be especially critical in respect of com-munities now living in danger zones and households living below the poverty lineand at subsistence levels.

! High levels of community support. This will especially be critical in subprojects re-quiring some measure of dislocation and resettlement.

! High impact and visibility. This will be important in ensuring positive demonstrationfor ongoing CWS Program initiatives and as a means of increasing private sectorinvolvement and community participation and cooperation, as well as generalpublic support.

! General consistency with the CDS, LTIP, agreed CWS Program performance targets,and other valid planning and development documents, supporting PIP, and annualbudget allocations.

! Links to other government, NGO, and private sector pro-poor initiatives. This will helpmaximize the use of limited available resources

Full LGU Council, Steering Group, and stakeholder endorsement and approval.

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In many instances this may entail expandingor verifying data already collated and ana-lyzed in Stage 2, by means of additionaltopographical, physical, and socioeconomicsurveys. However, it is recognized that inmany LGUs with limited resources this maynot in all instances be feasible.

Clearly the need for comprehensive datacoverage is most critical in identified pilotsubprojects (see section on CWS ProgramAction Plan/Pilot Projects). Nevertheless, bydrawing on all available resources, includingthose at the community level, LGUs shouldalso attempt to prepare a comprehensivedatabase for all identified Phase 1 sub-projects. The database will be needed toprovide an accurate determination of Phase 1shelter needs in terms of (i) the main sheltertypes (upgrading, resettlement, and newsites); (ii) likely levels of beneficiaryaffordability, as an input into subprojectdesign, and the need for socioeconomicsupport programs; (iii) the overall require-ment for land acquisition, and infrastructureand services capacity and coverage to beincorporated in the medium-term Compre-hensive Development Plan (CDP); and (iv)the total Phase 1 cost and funding require-ment to be incorporated in the PIP, annualbudgets, and applications for external fundingsupport.

Box 13 lists the STIP data requirements.

CWS Program Action Plan and PilotProjects

IntroductionThe Action Plan is a program of immediateinterventions intended to kick-start the CWSProgram. The Action Plan may well com-prise pilot subproject interventions drawnfrom the STIP (Phase 1). However, becauseof the need for urgent interventions to addresscritical issues of urban poverty, in some in-stances pilot subprojects could also be identi-fied in advance of the formulation of long-and short-term CWS Program interventions.

To facilitate and sustain the CWS Pro-gram over the longer term and to build up theresources and capability needed to increaseshelter delivery for the urban poor to thelevels required in the STIP and LTIP, a highproportion of Action Plan activity will befocused on policy and program interventionsincluded in the strategic framework.

Box 13: STIP Data Requirements for the CWS Program

! Land: area, ownership, and value, to determine the options and likely cost of ac-quisition, including links to other government pro-poor housing programs.

! Existing and proposed land and structure use, including that in adjacent properties.! Physical features: especially rivers, creeks, flood-prone areas, steep slopes, vegeta-

tion, and other features that could affect subproject design and layout, as well asthe upgradability or nonupgradability of structures.

! Structures: number, use, condition, and materials, to determine overall residentialdensity and identify upgradable and nonupgradable structures.

! Existing and proposed infrastructure and services: especially roads and footpaths,water supply, drainage, sanitation, electricity, and garbage collection, to determinethe need for on-site and offsite upgrading or additional infrastructure and servicesprovision.

! Ongoing and committed development proposals: to assess the compatibility of CWSProgram upgrading and new site proposals.

! Population size and projected growth rates throughout the CWS Program period, toestimate household growth and the demand for new affordable housing units inexisting informal settlements.

! Household characteristics including household size and composition, to determineoccupancy ratios and the need for possible housing units to accommodate house-holds displaced as a result of overcrowding.

! Household income, savings, and expenditure, to determine the affordability levels ofpotential beneficiaries.

! Employment, occupation, and levels of skill, educational attainment, and literacy, toestablish the need for supporting socioeconomic programs and facilities, and otherpro-poor development initiatives to support job creation and income generation.

! Governance: details of PO organization, activities, membership, and support fromLGU and NGOs, to judge the need for community empowerment and capacitybuilding programs, and the likely role of the community in the design and imple-mentation process.

Selection Criteria for Pilot SubprojectsPotential pilot subprojects will be identifiedon the basis of criteria similar to those forSTIP selection. However, emphasis will beplaced more on practicability to guaranteeimplementation in line with agreed ActionPlan schedules, than on absolute need. Thesepractical aspects are reflected in the essentialconsiderations spelled out in the recom-mended pilot subproject selection criteria (seeBox 14).

Data Collection and Analysis, and CostEstimatesTo support the preparation of detailed feasi-bility studies and designs for identified pilotsubprojects, a comprehensive database willhave to be prepared for each identified sub-project. The range of data required will besimilar to that for STIP subprojects. How-ever, significant data gaps or questions re-garding the validity of data should be

addressed by additional field surveys in thetarget communities and sites. Preliminarydesigns will be prepared to respond to pre-vailing site conditions, and the priorityconaffordability of the community as potentialbeneficiaries. Detailed cost estimates will beprepared on the basis of the preliminarydesigns, and these will, in turn, be subjectedto detailed feasibility analysis to arrive at anoptimum development solution.

STAGE 6:PROGRAM MONITORINGANDEVALUATION

CWS Program monitoring and evaluation,although linked to specific CWS perfor-mance targets, will best be undertaken as anintegral part of the overall monitoring evalua-tion and reporting system set out for the CDS(see Appendix 1).

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Box 14: Selection Criteria for Pilot Subprojects under theCWS Program

Essential Considerations

Land Acquisition. No major outstanding issues of land acquisition should in any wayobstruct site access or delay scheduled subproject design and implementation, andthe resolution of land tenure issues. Selected sites should therefore be already ownedby the local government unit (LGU) or by the community, or already part of a formalsales agreement involving the community or an existing joint-venture agreementinvolving the landowners.

Resettlement. Upgrading or development should not involve the relocation of anyhousing units or the resettlement of households that cannot be accommodated onsite or in resettlement sites nearby. The development of a “greenfield” resettlementsite as a pilot subproject is a feasible option. At the same time there should be no insitu upgrading of any community or site located in a dangerous or hazardous area, ina strategic government reservation, or in land officially designated for developmentother than residential.

Infrastructure/services availability. Upgrading or development should not be dependenton any form of major offsite mains infrastructure provision that could potentiallyobstruct scheduled subproject completion. Thus, the selected site should (i) alreadyhave all-weather pedestrian and vehicular access; (ii) already have access to watersupply mains and drainage of adequate capacity; and (iii) not be subject to seriousflooding and inundation requiring major flood control and drainage works such asseawall construction, reclamation, or riverbank protection.

Demonstrable need. Any community selected for upgrading or resettlement shouldhave a dominant percentage of poor households living at or below the povertythreshold.

Community support. The selected pilot subproject community should already have astrong and genuinely representative people’s organization, which supports the agreedupgrading and development approach in principle, and which ideally has an estab-lished working relationship with the LGU.

City Development Strategies to Reduce Poverty

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