96

a report by

Quamru l I s l am S i d d i q u e , A B M A s h r a f u l A l am , Moh i b b u r R a hman , Am i n u r R a hman and Ha s i n J a h a n

Local Government Engineering Department, Ministry of Local Government,

Rural Development & Cooperatives, Bangladesh

C a s e S t u d y

O b j e c t i v e s

The basic objective of this study is to highlight some ofthe innovative socio-economic programmesimplemented for urban slum dwellers under the SlumImprovement Project (SIP) of the Local GovernmentEngineering Department (LGED) in Dhaka, and thelessons learned from them. Specific objectives are toassess various aspects of the project’s activities, including:

• the physical and social infrastructure activities;

• the abilities of the infrastructure to meet basichuman needs;

• the capacities of basic and socio-economicservices to improve the overall living conditionsof slum dwellers;

• the impacts of such programmes on the commonconditions of poverty;

• the innovative policies, approaches, practices andlessons regarding resource mobilisation; and

• the effectiveness and sustainability of cost-recovery techniques.

B a c k g r o u n d o f t h e S t u d y

This SIP was the first successful model for slumupgrading in urban Bangladesh. It was designed in1985 to improve the quality of life for slum dwellersby mobilising community resources and improvingtheir access to government resources.

The SIP accomplished a major breakthrough inproviding a basic physical infrastructure system to theurban poor. The underlying philosophy of the projectwas to establish an integrated economic, social andphysical development programme in urban slumsthrough community organisation and the provision ofloans for income generation. Other activities, such ashealth, education, sanitation and environmentalimprovements have been planned alongside the credit

operation. Physical and human development areviewed as interdependent, insofar as the sustainabilityof physical development is contingent upon thesuccess of human development.

This case study, therefore, is based on experiences inDhaka, since slum problems here are, as in othermega-cities in developing countries, particularly acute.It is for the overall benefit of policy planners andconcerned professionals that case studies areundertaken, in order to discern the inherentcapabilities of the model so that it can be developed asa sustained, cost-effective and replicable model. Thisstudy should be of equal benefit to policy planners,professionals and practitioners, in discerning methodsand means to solve common problems in slums.

P u r p o s e s o f t h e S t u d y

This study attempts to analyse the operational issues andproblems relating to slum improvement interventionsin mega-cities. The purpose of the study is four-fold:

1. the context within which the interventions weremade are established;

2. a description of the interventions, the successesachieved and the problems and constraintsencountered, are presented;

3. the lessons learned from the experience arediscussed; and

4. the policy and management issues are identified.

The analysis provides a detailed description of the SIPin its origin and growth, approach, technologiesadopted, institutional arrangements, costs andfinancing and its achievements. The achievements arediscussed in terms of government progress towards asustainable, cost-effective and replicable slumimprovement programme.

C a s e S t u d y C o v e r a g e a n d S c o p e

The study covers 18 slums within the DhakaMetropolitan City (DMA), where improvement

S lum Improvement Pro jec t in Dhaka Metropo l i tan C i ty

ASIAN PERSPECTIVE

Quamrul Islam Siddique, a policyplanner, innovator and practitioner

of rural and urban developmentinterventions with 30 years'experience, is currently Chief

Engineer of the Local GovernmentEngineering Department (LGED),

Government of the Peoples Republicof Bangladesh.

A B M Ashraful Alam, a professionalengineer, with 15 years' experience

in infrastructure development projectsunder the LGED, has been

responsible for implementing,supervising and monitoringenvironmental and urban

infrastructure development projectsfor five years.

Mohibbur Rahman, an academic withmore than 25 years' experience in

training, research and projectactivities in various rural and urbandevelopment interventions, has beena BME specialist with an LGED/AsianDevelopment Bank project for three

years.

Aminur Rahman, an architect/plannerwith over six years' experience in

the field of physical planningdevelopment of human settlements,has been employed as a physical

planner (both urban and rural) withan LGED/Sida project since

mid-1996.

Hasin Jahan, a technology specialiston a World Bank project for one

year, has four years’ experience inthe field of urban development with

environmental and gender issues.

S lum Improvement Pro jec t in Dhaka Metropo l i tan C i ty

activities have been under implementation by theLGED since 1991. The basic information on slums,slum populations, sex ratios, numbers of families andcoverage under these activities was taken from the1996 review of the SIP for the Urban PovertyReduction Project (UPRP), commissioned by theAsian Development Bank (ADB) and LGED.

M e t h o d o l o g i e s o f t h e S t u d y

Design formulation – In order to arrive at soundmethodologies, major considerations focused onrelevance, reliability, accuracy and costeffectiveness, among other factors. Themethodology was therefore developed based onrecent studies and field observations. The studiesconsulted were primarily sources from the LGED,ADB and World Bank and included printedreports, documents, guidelines and manuals on theproject components, as well as quarterly reports on

the various slum activities as secondary data.Primary observations by the study team membersfocused on: group discussions; rapid andparticipatory appraisals with slum dwellers;discussions with project management and staff,professionals and practitioners in the field; and anIndependent Household Survey (IHS) to assess theperceptions and opinions of the beneficiariesregarding project interventions.

Independent household survey – The methodology forthis survey focused on specific criteria, so that unbiasedopinions were polled through a set of simple,objective and relevant questionnaires. It wasrealistically developed and based on standard methods,including physical infrastructure interventions, socialand service infrastructure facilities, economic activities,efforts on cost recovery and the participation ofbeneficiaries in the slum projects.

Sample size and sampling – The survey covered thepopulations of all 18 slums under the SIP in Dhaka,in which there are over 6,000 households. A 10%sampling was done in each of the 18 slums.

Whilst the UPRP-Centre for Urban Studies (CUS)survey proved useful to the establishment of broaderdemographic and socio-economic patterns and

planning purposes, both the focus-group interviewsand the IHS also generated useful insights intocommunity dynamics, demographic data, incomeand expenditure patterns etc.

The sampling was based on coverage of the totalslum area, representing all the occupational groups inthe slums, with more weight given to the dominantoccupational groups. The representation of womenin the survey was 50%.

The questionnaire was developed in accordance withthe objectives of the study, and was pre-tested.

Orientation and training of the survey team – The surveyteam consisted of 10 surveyors, and two supervisorswere entrusted with the responsibility of conductingthe survey. They were provided with an orientation/training session on the methodology of the IHS andthe administration of the survey in the field.

Focus group discussions – Five focus group discussionswere arranged, with slums grouped for rapid andparticipatory appraisal. Specific questions were raisedand discussed in these appraisals concerning theactivities, the participation of slum dwellers in theactivities, efforts towards sustaining project activitiesand resource recovery efforts. In addition, problemsand suggestions for improvements were given by theslum dwellers.

Organisation of data collection – Each survey teammember was allotted 55–70 sets of questionnaires,where each set consisted of a separate questionnairefor all of the components. There were seven femaleand three male surveyors in the team. The twosupervisors, together with the team members, visitedthe survey areas to observe the work first-hand andsort out any problems in the field. The survey wasconducted in April 1997.

Ma j o r F i n d i n g s o f t h e C a s e S t u d y

P h y s i c a l C o n d i t i o n a n d E n v i r o n m e n t

The upgrading of physical infrastructure includedthe development of footpaths and drains and theinstallation of tube wells, latrines, street lighting 97

[This SIP] was designed in 1985 to improve the quality of life for

slum dwellers by mobilising community resources and improving

their access to government resources.

and dustbins. These facilities obviously have adirect impact on the general improvement of theslum environment. They have also indirectlyimproved the health conditions of the poor andtheir quality of life. However, it was observed inthe field that the improvements are not equalwithin all SIP slums, and that maintenance,especially of drains and refuse, seems to be poorerin some places (for example, in Khilgaon).Sometimes, physical components do not respond tothe characteristics of the local land terrain and,consequently, water-logging and overflow ofdrains and sewers can be caused. For example, inBauniabad (Mirpur) and Wari, the overall physicaland drainage conditions seem to be quitesatisfactory, while in Lalbag, four out of five slumsremain in poor condition due to water-logging inthe wet season and overflowing drains andsewerage in almost all seasons. Khilgaon Bagichaand City Pally also have water-logging problems.Therefore, it is suggested that the operatingprocedures for the SIP regarding physicalimprovements should be more flexible and shouldrecognise local people’s needs and the peculiaritiesof individual sites. In addition, low-cost andlabour-intensive technologies should beencouraged so that the slum dwellers canparticipate in construction work and thereby affordthe cost of development more easily. To make thiscomponent more effective, a government “food forwork” programme may also be implemented.Moreover, innovative strategies are needed toensure long-term and sustainable maintenance forthe physical infrastructure.

A common feature found in almost all SIP slums(bastees) is the malfunction of drains due to blockagescaused by careless disposal of solid waste into house-side drains instead of the provided garbage bins. Thisis a very common practice found in almost all poorresidential areas, market places and other congestedareas, but it is severely obstructing the properimprovement of physical and environmentalconditions in these areas, and causing health hazardsaround the city. Slums and squatter settlements, inparticular, are consistently marked by poor living andenvironmental conditions, and by limited access tobasic services through official sources.

Environmental improvement in slum areas dependsgreatly on the improvement of latrine facilities. TheSIP has had success in providing sanitary latrines, butin some cases, due to their poor socio-economicbackground, slum dwellers showed limited interestin upgrading this particular utility. For many poorfamilies, latrine prices, although subsidised, remainhigh. To overcome this situation, a latrine subsidyshould be flexibly implemented and dependent onthe incomes of the beneficiaries.

Most slums are more seriously threatened bynatural calamities, heavy rainfall and subsequentflooding, epidemics and eviction than non-slumhouseholds. Women, in particular, face specialdifficulties, as victims of violence and sexual abuseby mastaans (touts) and others. Hence, socialmobilisation, leadership training for people’sorganisations and possible linkages betweenwomen and existing legal aid-related institutionsneed to be emphasised.

I n c o m e a n d E x p e n d i t u r e P a t t e r n s

With limited scope, the IHS (covering 18 slums inDhaka) generated some interesting insights into theincome and expenditure patterns of male andfemale-headed households. The incomes andexpenditures of slum dwellers, from the IHS, areshown in Tables 1 and 2, which show that thepredominant range of monthly incomes is betweenTk1,000 and Tk3,000, which constitutes 74% ofthe total sample of households. Only about 13% ofrespondents have incomes above Tk3,500 permonth, and again, about 74% of families spendbetween Tk1,000 and Tk3,000 per month. Thisimplies that the lowest income group (74%) exhaustall of their earnings just on surviving in the city.

From the IHS, it has been found that, overall, slumdwellers spend 50% to 60% of their incomes on food.The second highest monthly expenditure is forhousing purposes, which represents between 15%and 18% of their total earnings.

A g e S t r u c t u r e a n d L a b o u r F o r c e

P a r t i c i p a t i o n R a t e

The compositions of sample slums are marked bythe predominance of children (44%) in the overallpopulations, and a higher dependency ratio ofabout 70%. The higher dependency ratio indicatesan overwhelmingly large base of active-agepopulation (54.5%). Subsequently, poorerhouseholds are characterised by a higher labourforce participation rate than less poor households.About two-thirds of men and all working womenare engaged in low or no-skilled, low-paid jobs.The different occupational statuses of males andfemales is shown in Table 3.

The average monthly wage for female workers(Tk1,050) is less than half that of male workers(Tk2,150). The occupational history of theworking population reveals that with increases inage, both men and women tend to change frommore energy-consuming work (for example,rickshaw pulling, construction work, factory work,etc.) to relatively less energy-consuming work(such as petty trading, housemaid work, etc.).98

Wor ld Urban Economic Deve lopment

However, this horizontal mobility does notnecessarily ensure greater income.

L e v e l o f E d u c a t i o n a n d S k i l l s

The results of the IHS regarding the educationallevels of the respondents are indicated in Table 4.Education has been categorised into nine levels. Thefirst group consists of those who can neither read norwrite (more than 40% of the slum population), andabout 9% are able to sign their names only.

T e c h n o l o g i e s A d o p t e d

Technologies introduced in the project were simpleand had already been widely used elsewhere inBangladesh. They included hand-pump tube wells,water-sealed pit sanitary latrines, masonry bins forrefuse disposal, surface drains and footpaths. Publiclatrines-cum-bio-gas-plants proved very successful inimproving the sanitation situation, and also providedsome respite to energy conservation. Choices oftechnology were made by the project designers, basedon their own perceptions and discussions with thecommunities regarding what best suited their needs.Options were determined by the budgetary constraintsof the project and the availability of the technology.

For water supply, suction hand pumps were used,which can extract water from a depth of sevenmetres underground. In low water table areas, Tarapumps were used, which can lift water from a depthof 15 metres. This technology worked better insmaller urban centres than in Dhaka where thepopulation density and the depth of the water table

are both high. In Dhaka, women generally preferredto have piped water connections. The LGED tried tomediate the provision of this service from the WaterSupply and Sewerage Authority (WASA) in Dhaka,but faced problems with the legal ownership of theholdings occupied by the slum residents. Apparently,WASA connections are made only in holdingsoccupied by the slum residents and only in the nameof the legal owners of a land holding. Despite theserules, there are numerous illegal water connections inneighbourhoods where slum residents pay muchmore than the amount charged by WASA for regularhouse connections. These connections are operatedby middlemen, who have managed to obtain themon payment of an illegal service charge.

For solid waste disposal, dustbins were constructedby the project. One large masonry bin was allottedper 100 families at a cost of Tk1,800. Also providedwere: one corrugated iron dustbin for 20 families ata cost of Tk930, where users contribute Tk2 each;and one pushcart to carry refuse from the dustbins tothe masonry bin. Refuse from homes is carried to thedustbins mainly by women and children. Somemodifications in the designs were made to cater forlocal needs and for problems of waste scattering dueto birds and animals.

S o c i a l M o b i l i s a t i o n a n d C o m m u n i t y

P a r t i c i p a t i o n

The SIP is basically a package programme for thesocial, economic and physical improvement of thecommunity. Success in these fields of actiondepends largely on social mobilisation efforts.Raising health and education awareness andmobilising resources for socio-economicempowerment and physical improvement bothrequire regular interactions (for example, meetingsand discussions) among different groups of people(such as Community Health Workers (CHWs),credit groups, Sub-project ImplementationCommittees (SPICs), Community Organisers(COs), Project Implementation Committees(PICs) and a wide range of community people).To accomplish the organisational work, COs playa vital role: they are the main links between thecommunities and the project officials. All physicaland social service components of the SIP arechannelled through the COs. At the communitylevel, SPICs, CHWs and credit groups dependgreatly on the COs. It has been generally observedin the field that, considering their poor socio-economic background and low level of trainingand experience, the performance of the COs inorganising slum communities has beenappreciable. However, project officials at thepolicy level sometimes do not want to recognisethe central role played by COs. Their status in the100

Wor ld Urban Economic Deve lopment

Table 1: Income Levels of Slum Dwellers

Sl. No. Monthly Income Number of Households Percentage

1 < 1000 20 3.91

2 1,000–1,500 94 18.36

3 1,501–2,000 82 16.02

4 2,001–2,500 114 22.27

5 2,501–3,000 89 17.38

6 3,001–3,500 48 9.38

7 > 3,500 65 12.70

Source: IHS, LGED, 1997.

Note: Incomes expressed in Tk (US$1 = Tk43).

Table 2: Expenditure Levels of Slum Dwellers

Sl. No Monthly Expenditure Number of Households Percentage

1 < 1,000 18 3.41

2 1,000–1,500 96 18.18

3 1,501–2,000 107 20.27

4 2,001–2,500 106 20.08

5 2,501–3,000 92 17.42

6 3,001–3,500 47 8.90

7 > 3,500 62 11.74

Source: Ibid.

Note: Expenditures expressed in Tk (US$1 = Tk43).

S lum Improvement Pro jec t in Dhaka Metropo l i tan C i ty

project hierarchy is very low and there is no jobsecurity. The participation of beneficiaries in theproject activities can be delineated according toeight distinct categories:

1. community group formation – introduction tothe community, IHS and base line surveys, groupformation and group meetings;

2. slum improvement committees – formation ofcommittees, selection of a chairman and vice-chairman from the community, participation inmeetings, dissemination of training informationand representation to higher committees;

3. selection of CHWs from the community;

4. selection of teachers (preferably from thecommunity);

5 selection of group leaders;

6 savings activities, such as the establishment ofsavings targets for all group members, openingaccounts in commercial banks and monitoringsavings activities;

7. income-generating loan activities – selection ofloanees, preparation of budgets and finalisation ofthe list of loanees to ensure full loan recovery(with a service charge); and

8. infrastructure development activities – selection ofschemes for each component, establishment ofimplementation processes and liquidation ofadvances.

S u s t a i n a b i l i t y

Guidelines for the SIP identify certain steps topromote sustainability. The revolving fund for thepayment of COs’ salaries, however, has not yet beenfully developed, although arrangements were madewith UNICEF to support the COs’ positions foranother five years. Arrangements for the utilisation ofthe welfare fund by project authorities are in practicein some slums. Regarding land tenure, it wasobserved in the field that tenurial security has aprofound impact on the sustainability of the SIP.

Once tenure becomes more secure, tenants are likelyto pay more attention to improving their slums.Furthermore, the level of sustainability will not be thesame for all components of slum upgrading. Forexample, there is a strong demand for credit, so it ismore sustainable than a savings programme. Similarly,water, electricity and education are higher prioritiesto slum dwellers than dustbins, latrines and drains.The level of sustainability of each SIP componentmay also vary from one slum to another, dependingon the needs of the residents and the topographicaland environmental characteristics of the slum.

C r e d i t , S a v i n g s a n d

R e c o v e r y o f C r e d i t

Of all slum improvement components, the creditfacility appears to be one of the most attractive andsuccessful. Many poor families in SIP slums haveincreased their incomes and earning capacities byinvesting their loans in various profitable fields.

Reasons behind the loans are shown in Table 5,according to which more than 63% of slum dwellerstake loans for small trading activities, from whichthey earn profits.

The recovery of loans was found to be quitesatisfactory. In fact, it is the provision of creditprogrammes which attracts poor families to the SIPfor improvements to their living conditions.However, based on field experience, there arealternative suggestions that can be put forward forfurther improvements to their conditions:

• First, the criteria for selecting a loanee should bebased on both economic and non-economicattributes. To involve a higher number of poorfamilies, preference should be given to low percapita income, female-headed households andunder-privileged or disadvantaged families, such asfamilies with a disabled person and fewer incomeearners. These measures for loan disbursement arevery important, particularly for targeting poorerfamilies who cannot be covered under the existingcredit distribution system.

• Second, the high rate of loan recovery, along withthe ability to pay a high service charge (15% per 101

Once the tenure becomes more secure, tenants are likely to pay

more attention to improving their slums.

annum), indicates that slum dwellers are some ofthe most successful investors. Given this situation,existing loan sizes should be increased to meet thegrowing demand for credit.

• Third, credit management within some SIPslums is not always fair and democratic.Management committees within or outside theslum communities should not select loaneeswho are not in accordance with SIP guidelines.

In parallel to credit, the SIP mobilises savingswithin slum areas. However, unlike credit, only apartial success has been achieved in this sector.Statistics reveal that slum dwellers are willing andable to save more money than the targeted amount.To dispel any doubt about the safety of their hard-earned savings, a strong monitoring capacity withdiligent and efficient management is necessary.

C o s t R e c o v e r y

The SIP did not contemplate any direct cost recoveryfor the operation and maintenance of infrastructurefacilities. It required the beneficiaries to contributeTk500 per tube well and Tk500 per latrine to acommunity fund, to be used to remunerate the CHWsonce the UNICEF assistance ended. In addition, the

SIP expected the community to supply labour towardsother physical improvements. Unfortunately, this planhas been only partially realised.

Generally, one tube well was provided for 10 familiesat a subsidised price of Tk500 (approximatelyUS$12), making the contribution per family Tk50. Insome cases, dysfunctional tube wells were repaired.Here, too, the users contributed Tk500, and whenthe cost of repair was beyond this amount the projectwas subsidised. The users contributed to all of thecosts for the construction of tube well platformsexcept cement, which was supplied by the project.

P e r c e p t i o n s a n d P r e f e r e n c e s o f

S l u m D w e l l e r s

Different categories of men and women in the slumsand squatter settlements perceived different causes fortheir poverty, as was revealed during focus groupinterviews conducted during the survey. The mostcommon perceptions cited included:

• low income or lack of capital; • low levels of education and skills; • poor living and environmental conditions; • high indebtedness; • fewer income-generating family members; and• social factors, such as insecurity, violence,

desertion, polygamy and dowry.

To redress these problems, they suggested thefollowing:

• regular income opportunities; • access to capital and interest-free credit; • education and on-the-job skill development

opportunities; • entitlement to land and shelter; • easier access to water, sanitation, and electricity; and • greater security and stability.

A c h i e v emen t s , Imp a c t s a n dC on s t r a i n t s

M a j o r A c h i e v e m e n t s

The key success factors of the SIP relate to its basis ina multitude of beneficial social initiatives. Theseinclude community participation, a democraticprocess of decision making, community involvementin the development of plans and implementation ofactivities and the positive involvement of electedrepresentatives at every level of implementation.

The overall performance and achievements of theSIP are satisfactory, although the project has coveredonly a very small portion of the total slumpopulation. Nevertheless, the model has proven102

Wor ld Urban Economic Deve lopment

Table 4: Educational Levels of Slum Respondents

Level of Number of Percentage of

Sl. No. Education Households Households

1 Cannot read or write 202 40.97

2 Can read and write 62 12.58

3 Primary up to Class V 118 23.94

4 Up to Class VII 52 10.55

5 Secondary School 6 1.22

6 Higher than Secondary 5 1.01

7 Graduate 5 1.01

8 Masters nil nil

9 Others (able to sign) 43 8.72

Source: Ibid.

Table 3: Occupational Status of Slum Dwellers

Sl. No Occupation Male (%) Female (%)

1 Rickshaw/Van/Pushcart Puller 27.8 –

2 Auto Scooter/Baby Taxi/Tempo Driver 2.6 –

3 Driver of Other Mechanical Vehicle 0.9 –

4 Helper of Mechanised Vehicle 2.7 0.07

5 Vendor/Hawker 3.9 1.7

6 Petty Trader/Shop Keeper 11.2 2.23

7 Night Guard/Cleaner 5.03 1.15

8 Day Labourer 16.22 7.6

9 Garment/Other Factory Worker 5.94 15.76

10 House Maid/Servant 0.78 12.78

11 Other 13.83 10.23

12 Unemployed 6.56 5.84

13 Housewife - 38.51

Source: Ibid.

S lum Improvement Pro jec t in Dhaka Metropo l i tan C i ty

effective and significant physical, social andeconomic improvements are already evident inparticipating slums. A brief list of majorachievements of the SIP is highlighted below.

Although slum development has long been neglectedin Bangladesh cities, the SIP model made asignificant breakthrough in providing an integratedpackage of basic physical, social and economicinfrastructure facilities for the urban poor. At present,the SIP is the single largest programme providingservice and assistance to thousands of poor urbanhouseholds in the country.

Of all SIP components, the micro-creditprogramme was particularly successful andattractive. Many poor households have increasedtheir incomes using this facility.

Empirical studies show that the SIP has significantlyraised the level of health awareness among slumdwellers. As a result, within SIP slums, the incidence ofenvironmental diseases (such as diarrhoea, respiratoryproblems and scabies) has been reduced substantially.

A notable achievement of the SIP is theempowerment of poor women through communityinvolvement, particularly through the savings andcredit programme. The SIP has raised the overallstatus of women in the family as well as in thecommunity, and thus incidences of divorce andabandonment of women has declined remarkably.

Slums and squatter settlements are usually environ-mentally hazardous. The SIP has significantly changedthis by improving the physical infrastructure andoverall environmental conditions in slum areas. Peopleliving in SIP slums have more access to basic servicesthan their counterparts in non-SIP slum communities.

As a “pro-poor” programme, the SIP has been ableto introduce notions of social development togovernment officials.

I m p a c t s o f t h e P r o j e c t

Major impacts which have been effected by the SIPin slum areas around Dhaka are summarised invarious categories below.

The social sector – A strong mutual respect and senseof unity among slum dwellers has been created, alongwith an increase in self-confidence and awareness.Respect for women within the family and thecommunity has been dramatically enhanced, andthere have been great improvements to the generallaw and order in the area. Non-social and antisocialactivities have declined, with accompanying increasesin the development and awareness of education

among adults and children. There is also a growingawareness of the issues of marriage dowries, childmarriages and family planning.

The economic sector – The encouragement of habitsleading to increased savings among poor people hasresulted in the creation of funds that can be put to usefor the benefit of communities. The credit schemeintroduced by the SIP has led to enhanced economicactivity among women, as well as increased incomesfor families. Facilities have also been provided for self-employment through “needs-based” training.

The environmental sector – Many urban infrastructurefacilities have been provided for the directimprovement of slum dwellers’ environmentalconditions. Such improvements include theinstallation of tube wells for the supply of safe waterand the construction of drains to facilitate theremoval of contaminated water. Dustbins have beeninstalled to keep the area free of solid waste and badsmells, and footpaths have been built to keep mothersand their children out of damp atmospheres. Sanitarylatrine facilities, for the use of all family members,have been constructed, as well as community latrine-cum-bio-gas-plants, to promote a more sustainablebalance between the environment and therequirements of the population.

The political sector – There have been noticeableimprovements in institutional consciousness amongwomen within the project areas and also in theoverall consciousness of civil rights. Methods whichfacilitate the creation and exposure of leadership havealso been devised.

M a j o r C o n s t r a i n t s a n d W e a k n e s s e s

The SIP is a package programme for in situimprovements to slum communities. Theprogramme is carried out following SIP guidelines,which, in many ways, are not flexible enough tomeet the differing physical and social characteristicsand needs of people living in different parts of the 103

Table 5: Purposes for Taking Loans

Loan Number of Percentage of

Sl. No. Item Households Households

1 Business 74 63.79

2 Housing 13 11.21

3 Land Purchasing 1 0.86

4 Sending Family Members Abroad 2 1.72

5 Wedding 4 3.45

6 Education nil nil

7 Religion nil nil

8 Illness 8 6.90

9 Household Expenditure 6 5.17

10 Others 8 6.50

Source: Ibid.

city. For example, under the existing SIP operatingguidelines, it is difficult to reach the poorest of thepoor (the “hard-core” poor), who remain virtuallyoutside the reach of the SIP credit and savingsprogramme. As a result, their economic conditionshave not improved much, even compared to peoplewith slightly higher incomes.

The success of slum upgrading projects depends verymuch on tenurial security, but land tenure issues arenot comprehensively addressed by the SIP.Improvements to livelihood conditions, particularlyfor floating and homeless populations, cannot beachieved without solving these critical housingneeds. To date, the SIP has not addressed this vitalhousing issue.

Numerous studies indicate that the number of slumson private lands is gradually increasing, while thoseon government lands are declining. Given thissituation, SIP activities should spread to private

slums. Unfortunately, due to unattractive orunrealistic terms and agreements, the SIP has givenvery little attention to private slums.

The SIP emphasises physical infrastructuredevelopment, but the slum communities also havecritical non-physical needs. This emphasis reflects thetraditional strengths of the LGED. Areas such ashuman resource development, social mobilisation andmotivation and community organisation, all vital forslum improvement and sustainability, need to bedeveloped further.

Beneficiaries and field-level organisers raisedconcerns over the local procedures for handlingproject funds. This points to serious issuesconcerning a lack of transparency and fiscalaccountability in the SIP model.

Although the slum has become an inevitable part ofurban life and its landscape, eviction is still aconstant threat to the existence of slum dwellers,and thus it is a serious constraint on theimprovement of living conditions in slumcommunities. To combat this constraint, relatedSIP procedures and policies for the promotion oftenurial security need to be further developed.

L e s s o n s L e a r n e d

The proliferation of slums appears to be, at least atpresent, an unavoidable part of urbanisation inBangladesh. Slum dwellers, recently arrived migrantsand the very poor are all parts of the city’s populationand, as such, they require infrastructure and servicesjust like other inhabitants. At the same time, they areregarded as a potential human resource for thedevelopment of the city; a resource that requires someattention both for social and economic developmentand for necessary infrastructure development. Theabsence of basic support services saps the strength ofthe urban poor and denies society the fullcontribution they could make. The paradox is thatthe slum dwellers, if given a little support, canbecome worthy citizens and even act as a potentialhuman resource. Furthermore, they can be profitablyemployed in development work, through communityparticipation, social mobilisation, income-generatingactivities, skill training and adequate credit.

U r b a n G o v e r n a n c e b y D e c e n t r a l i s e d

D e c i s i o n - M a k i n g

Partnerships and consultations with localcommunities on major investment decisions help toincrease levels of accountability, not only within citymanagement but also among urban residents whomust ultimately pay for the services they demand.Engaging community groups is effective because itputs decisions in the hands of those who are mostmotivated and able to ensure a good performance,and who are best placed to see a direct link betweentheir efforts and community improvements.

There is a need for a more decentralised system withmore decision-making at community levels. Thisessentially refers to a situation whereby decision-making and planning are not done centrally butrather at a local level.

The SIP hierarchy of management structures forproject implementation is unique and is also themost interesting feature of the approach. Thishierarchy has potential for ‘vertical unbundling’, inthe sense that it creates structures at communitylevels and links them to the formal decision-makingauthorities. However, the management structure in104

Wor ld Urban Economic Deve lopment

At present, the SIP is the single largest programme providing

service and assistance to thousands of poor urban households

in the country.

this case could not deliver the desired results, asplanning decisions remained centralised, (at the PICand CCC levels) and community level groups(especially women’s groups and SPICs) werebasically carrying out what was decided at thehigher levels.

W e a k n e s s e s o f T r a d i t i o n a l U r b a n

F i n a n c i a l I n s t i t u t i o n s

The challenge for cities is to tap into the wealth theygenerate in order to finance the many commongoods – services, such as water, power, sanitationand transportation – that are so essential to makingthem fit places to live in and maintaining theirproductive potential.

The present institutions lack the capabilities oftrained and qualified staff and are incapable of thefinancial resource mobilisation and managementnecessary for the delivery of urban infrastructure andservices in slum areas. The existing financialarrangements governing municipal finance cannotcope with the increasing demand for basic physicaland social infrastructure, especially at low cost, forthe poorest people.

R e f o r m a t i o n s t o t h e T r a n s f e r o f

R e s o u r c e s

If decentralisation is to provide opportunities formore sustainable forms of urban financing, the rulesgoverning transfers of resources between higher andlower levels of government need to be clarified.

Much can be done to install better inter-governmental finance systems. Clarifying functionalresponsibilities and identifying revenue sources forthe provision of local services should occur intandem. Cities should not only be given access torevenues that they are best able to exploit, (forexample, service fees, property taxes andimprovement charges), but they should also be giventhe freedom to determine the rates for these charges.At the same time, rules governing the structure ofshared revenues should be stable and transparentover long periods. Regulations concerning thetransfer of funds to local governments should bestable and transparent as well, and should emphasise,far more than they do, performance in financialmanagement, efficient use of resources andmobilisation of local revenues.

Where direct beneficiaries can be identified, usercharges, for services like water and sewerage, serve tomake households aware of the links between theprovision and the cost of those services. Such directcharges can also oblige users to re-examine theirbehaviour and make the tough choices that are

necessary to cut back on their consumption ofincreasingly scarce resources like water. Where benefitsgo to the general public, (for instance, local roads andstreet lighting), local taxes are more appropriate.

E n c o u r a g e m e n t o f P r i v a t e S e c t o r

P a r t i c i p a t i o n

The shift to greater private sector participation bringsseveral benefits to service delivery, not the least ofwhich are efficiency in managing investments,reliability of services, lower costs and greaterdiscipline in assuring cost recovery.

Authorities at national and local levels play criticalroles in determining responsibilities concerning thedelivery of services, the efficiency of pricing and theenforceability of contracts.

Public sector interventions to protect the poor mustbe carefully crafted so as not to distort prices forservices and discourage private participation.Subsidised prices for services have been shown tobenefit the “better-off” disproportionately and limitthe capacity of infrastructure agencies to extendservices to the poor. Moreover, numerousexperiences have shown that the poor are willing topay for reliable services.

I n c r e a s e d A c c e s s t o C r e d i t

To meet the service responsibilities being shifted tocities, as well as the demands for capital investmentsgenerated by the fast pace of urbanisation, citygovernments need to position themselves to getbetter and greater access to credit.

Effective institutions are fundamental at municipallevel, with credible and intelligible accounting andmanagement systems, independent auditingprocedures, transparent procurement arrangements,adequate financial reporting mechanisms, appropriateadministrative reforms to control personnelexpenditures and accountable local officials backedby reasonably satisfied tax-payers.

The creation of credit facilities appears to be one ofthe most attractive and successful elements of slumimprovement. This is important, as the availabilityof credit can act as a stimulus in motivating poorfamilies to take part in slum upgrading programmes.

The high rate of loan recovery, along with an abilityto pay high interest (15% or higher), shows that slumdwellers are some of the most successful investors inthe growing urban informal sector. The potentialcredit market among the urban poor is large andgrowing very fast. The poor generally know inadvance how they want to apply credit funds, so the106

Wor ld Urban Economic Deve lopment

S lum Improvement Pro jec t in Dhaka Metropo l i tan C i ty

limit or size of credit should be flexible and based onthe merit of the submitted project.

Clear strategies are needed for both communitiesand service providers to ensure the operation andmaintenance of physical infrastructure and thecontinuation of group activities. Cost-sharingarrangements need to be specified. An effectiveprocess of social mobilisation is essential to createthe climate of community ‘ownership’ necessary tosustainability.

S k i l l e d a n d V o c a t i o n a l T r a i n i n g

The SIP tried to ensure the delivery of materials fornumerous provisions, rather than arranging for theirmanufacture within the community. However, theservice delivery package included technical trainingfor the maintenance and repair of these provisions.Although the maintenance and repair of the tubewells, latrines, drains, footpaths and dustbins wereassigned to the users, and contributions were made,no system was devised for the use of thecontributions collected.

Not only in the SIP, but generally speaking, thepresent approach to urban sanitation seldomconsiders any technological options betweenconventional sewerage and the ‘pour-flush’ latrine.Very few urban centres can afford a conventionalsewerage system due to its high cost. Yet the pour-flush variety, being an on-site option, cannot beused where population densities and wastewaterquantities are high, or where soil permeability islow. With the many technological advances made inrecent years, numerous alternative sewerage systemsare now available in various countries, and are just aseffective as conventional sewerage at a fraction oftheir cost. Attempts to replicate the SIP modelwould benefit from these technical breakthroughs inoptions for sanitation.

W o m e n ' s P a r t i c i p a t i o n N e c e s s a r y f o r

S u s t a i n a b i l i t y

Women’s participation in water and sanitationprogrammes is indispensable to the promotion of safewater and safe latrines. Their involvement hasincreased due to their empowerment in managementactivities, and has thereby increased their social status.In contrast, the current domination of men in theWSS programme is not conducive to gender issuesand inhibits women’s broader participation. ■

R e f e r e n c e s

Asian Development Bank (ADB) and LocalGovernment Engineering Department (LGED), UrbanPoverty Reduction Project, Draft Interim Report, (1996).

A B M Ashraful Alam, Current Urban DevelopmentIssues in Bangladesh, (Paper submitted at the UMP-Asia Regional Network of Experts Meeting forUMP Phase 3, Manila, Philippines, 1996).

A B M Ashraful Alam, et al, Public-NGO Partnershipto Sustained Municipal Services, (Dhaka: 1997).

Bangladesh Bureau of Statistics (BBS), StatisticalPocket Book of Bangladesh, (1995).

Centre for Urban Studies, Study of the Urban Poor inBangladesh, (1989).

Government of Bangladesh (GoB) and UnitedNations Development Planning (UNDP),Bangladesh Urban Sector National Programme Document,(1994).

LGED, Slum Improvement Project Reference Manual,(1997).

Ministry of Housing and Works, GoB, BangladeshNational Report, (submitted to United NationsConference on Human Settlements (Habitat-II),(1996).

Planning Commission, Government ofBangladesh, Study of Urban Poverty in Bangladesh,Final Report, Volume 1, Survey Result, (ADB andthe Government of Bangladesh (GoB), Dhaka:1996).

Rahman, Mohibbur, LGED Experience in Sanitationand Waste Disposal, (presented at ITN/World BankWorkshop, Dhaka, 1997).

UNDP and GoB, Bangladesh Urban Sector StrategyStudy, (1995).

United Nations International Children’s EmergencyFund (UNICEF) and LGED, Report on the Evaluationof the Slum Improvement Project, (1994).

World Bank, Livable Cities for the 21st Century,(1996).

This article is an extract from Best Practices Case Books:Urban Infrstructure Development in Asia; List of SelectedCase Studies, published by United Nations Centre forRegional Development in collaboration with: UnitedNations Centre for Human Settlements (Habitat); theNational Economic Social Developement Board,Thailand; the Bangkok Metropolitan Administration;the World Bank; and the Urban ManagementProgramme for Asia and the Pacific. The full casestudy, Case Study on a Slum Improvement Project in DhakaMetropolitan City, can be found on the CD-ROMaccompanying this Business Briefing. 107