4 THE RESPONSE BY OTHER STAKEHOLDERS
99. We now consider the responses of other members
of the international community to urban poverty. Firstly, we will
assess the programmes and policies of the major multilateral institutions:
the United Nations (UN) and the multilateral development banks
(the World Bank, the Asian Development Bank and the African Development
Bank). Two key international initiatives, the Slum Upgrading Facility
and the Cities Alliance, will be considered as part of this. Secondly,
we will look at the role of community-led initiatives in addressing
urban poverty. Thirdly, we will explore how UK local government
could contribute to international efforts. Finally, we will look
at how DFID and other donors can support developing country governments
to give urban poverty a higher priority in national poverty reduction
strategy papers.
100. We think it is worth noting that the scale of
the challenge regarding slum upgrading requires huge leverage
of private sector funds. We believe that all development actors,
including DFID, should do all they can to unlock private sector
investment in urban development. These flows have the potential
to substantially reduce urban poverty. Our recommendations to
DFID, multilateral donors and other global stakeholders are thus
based on the premise that the greatest impacts will be achieved
when donor funds are used to stimulate private, alongside public,
investment in urban development.
The response by multilateral
institutions
THE UNITED NATIONS
101. UN-Habitat is the UN agency for human settlements.
It is mandated to promote socially and environmentally sustainable
towns and cities with the goal of providing adequate shelter for
all. The agency was established in 1978. In 2002, the UN General
Assembly significantly enhanced UN-Habitat's budget and function.
The agency now has more than 130 technical programmes and projects
in 60 countries around the world. Examples of projects include:
work on pro-poor housing, land tenure and property administration;
governance and safety initiatives; emergency relief and reconstruction
(for example, in Afghanistan, China, Iraq, Kenya, Kosovo, Rwanda,
Sierra Leone and Somalia); environmental planning; and improving
water, sanitation and infrastructure in urban areas.[174]
102. At its annual Governing Council meeting in April
2009, UN-Habitat secured the highest year-on-year budget increase
in its history. The total of $396.6 million for 2010-11 represents
an increase of around 30% from the 2008-09 budget of $289.7 million.[175]
However, UN-Habitat officials told us that this was an "aspirational
budget" allowing for the "the best possible scenario"
in terms of what the agency can collect from donors over the two-year
cycle.[176] Most of
the funds are earmarked for specific projects. UN-Habitat said
that this meant they often had to put individual donor priorities
above their own identified priorities, which include: support
for governance and planning; development of pro-poor land and
housing policies; the provision of environmentally sound infrastructure
and services; and expanded housing finance.[177]
103. DFID's current annual allocation of £1
million to UN-Habitat's core funding constitutes around 7% of
all core contributions, considerably lower than the 12% DFID contributed
in 2002 (making it the highest donor at that point). The top-ranking
donors are currently: Norway, which provided 15% of core contributions
in 2007; Sweden with 11%; Italy with 9%; and Spain with 7%.[178]
DFID commits extra funding for UN-Habitat's activities in the
field; for instance, humanitarian operations in countries such
as Pakistan, Afghanistan and Sudan.[179]
This was worth around $12 million in 2007.[180]
However, this equates to just 2% of the agency's total (as opposed
to core) contributions and ranks DFID eighth in donor generosity
(Spain is lead donor, providing 11%).[181]
104. The DFID Minister underlined the fact that he
expected "sharper work by the UN family as a whole"
on urban poverty and that UN Development Programme, UNICEF, the
World Health Organisation and "a range of other UN organisations"
should incorporate responses to urbanisation within their UN Development
Assistance Frameworks in developing countries.[182]
This reflects the new DFID White Paper's emphasis on the importance
of system-wide UN approaches.[183]
Much of UN-Habitat's funding comes to them
through UNDP so this is a particularly important partnership.[184]
105. We commend the work of UN-Habitat on human
settlements and urban development across a wide range of contexts.
We were disappointed to learn that the UK's contribution to the
agency's core funding has fallen from 12% in 2002 to 7%. We recommend
that DFID's £1 million annual contribution to core funding
(or 7% of the total from all donors) is boosted to bring it closer
to that of Norway and Sweden, who provide 15% and 11% of the core
budget respectively. Non-earmarked funding of this kind is vital
for the agency to pursue its identified priorities which cover
an important range of urban development outcomes.
106. We agree with DFID that co-ordination across
UN agencies on urban poverty is highly important and that the
work carried out by different UN agencies on urban issues needs
to be fully integrated at country level. In particular, UN Development
Programme and UN-Habitat, with their close on-the-ground operational
partnership, should ensure that they work coherently so that impact
can be boosted and urban poverty moved higher up the agenda in
the countries in which they work.
The Slum Upgrading Facility
107. UN-Habitat manages the Slum Upgrading Facility
(SUF), an initiative set up in 2004 to help mobilise financial
support for slum upgrading and relocation. DFID provided half
of the initial funding for the initiative (US$10 million, or £5.9
million). Other funding includes US$4.5 million from Sweden and
$4.8 million from Norway.[185]
108. Under the initiative, slum dwellers are involved
in the planning and design of upgrading projects as 'clients'
who sit on the SUF Consultative Board, along with banking and
finance sector representatives and donors. A key element of the
initiative is the establishment of Local Finance Facilities which
are designed to improve access to credit for slum dwellers. Ruth
McLeod of the Development Planning Unit (DPU) said that, whilst
the initiative was still "very young", the SUF, and
the Local Finance Facilities in particular, were achieving a great
deal:
What has been incredibly important about [...]
those facilities is that [...] it brings into a single forum all
the key stakeholders in that city who are concerned about settlement
upgrading [...] [who] make decisions about how seed capital,
which has been basically provided by DFID, can best be used and
leveraged to bring in other resources. [...] I think it is a very,
very important development because cities are just beginning to
learn how to deal with their own budgets and leverage them. To
be able at this stage to provide an option for them to do that
specifically around urban poverty, settlement upgrading and land
issues is an opportunity which is not going to come again.[186]
109. The SUF is currently at pilot stage, with projects
in Sri Lanka, Indonesia, Ghana and Tanzania due to conclude in
December 2009. At its most recent meeting, the SUF Consultative
Board recommended a two-year extension (up to December 2011) to
the pilot phase in order to track the effectiveness of the Local
Finance Facilities scheme.[187]
UN-Habitat is currently looking for funding for this extension,
which they say would also form the basis for exploring the possibilities
for expansion beyond the initial four countries.[188]
Michael Mutter, Director of the SUF, said that because DFID had
made a large funding commitment upfront, they had "been impatient
to see the results coming in." He anticipated that there
would be "good results to show", and highlighted the
"opportunity to continue investing in the process" for
the envisaged two-year extension.[189]
The DFID Minister was cautious about committing to further funding:
To be candid, the Slum Upgrading Facility has
taken longer to begin to have real impact on the ground [than
the Community-Led Infrastructure Finance Facility] [...] Before
we take decisions to provide further funding we carry out evaluations
of such initiatives, and we will talk to a range of advisers who
engage with those projects before we make a decision as to whether
or not to provide further funding to them [...] I hope that the
Slum Upgrading Facility will see further progress.[190]
110. We commend DFID's decision to provide half
of the initial funding for the Slum Upgrading Facility and to
contribute to enabling this important project to get off the ground.
We support DFID's planned evaluation of the initiative
as a basis for future funding decisions, but encourage it to find
extra funding to facilitate a two-year extension of the project.
Local Finance Facilities have provided a unique forum for bringing
together all the major players across a city involved in the slum
upgrading process. Results may have been slow in emerging, but
once momentum has been gained we believe that the Facilities offer
considerable potential for upgrading slum settlements on a large
scale.
The Cities Alliance
111. The Cities Alliance is hosted by the World Bank
and was established in 1999 by UN-Habitat and the World Bank,
with DFID as a founding sponsor. This global coalition of cities
and development agencies aims to highlight the benefits and opportunities
of urbanisation, and to correct the "anti-urban bias"
that we have discussed. It assists with slum upgrading and aims
to help cities of all sizes to obtain financial support to develop
"city development strategies". DFID is one of 16 country
members and works with Cities Alliance on a range of international
initiatives. For example, donor funds for the Community-Led Infrastructure
Finance Facility are channelled through Cities Alliance to Homeless
International.[191]
Ruth McLeod of the DPU highlighted that the Alliance had utilised
a wide range of different approaches since it was created, from
policy support to direct project financing, and that it would
be interesting for DFID to reflect on the relative merits of these
strategies.[192]
112. The Alliance is subtitled "Cities without
Slums", a controversial slogan that according to the DPU
"is neither feasible nor desirable in some of its consequences"the
concern being that it may be used to justify slum clearance and
forced evictions.[193]
Professor Alan Gibson of University College
London said that the idea that cities can fully eradicate their
slums is "wholly unachievable".[194]
The Cities Alliance's attempt to highlight the
opportunities of urbanisation is a worthy one and we commend DFID's
continued collaboration with the coalition. However, we encourage
the Alliance to consider dropping its "Cities without Slums"
slogan, which promotes an unworkable outcome that may encourage
slum clearance or forced evictions. We see the long-term strategic
focus of the Slum Upgrading Facility as equally, if not more,
worthy of DFID support as the somewhat problematic Cities Alliance.
THE MULTILATERAL DEVELOPMENT BANKS
The African Development Bank
113. The African Development Bank (AfDB) currently
undertakes few urban poverty or slum upgrading projects.[195]
DFID said that "currently, AfDB's work in the urban sector
mostly takes place under the infrastructure and water departments
and does not have an 'urban' focus as such." [196]
The AfDB estimates that the urban sector accounts for 15-20% of
its portfolio (mostly in water and infrastructure). The Bank is
currently developing a new urban strategy, to be completed in
2009, with several pillars including infrastructure, governance
and private sector development.[197]
The Bank has no dedicated urban department, and, according to
DFID, nor are there plans to create one.[198]
The AfDB received a record DFID contribution to its most recent
replenishment (the Eleventh Replenishment of the African Development
Fund, ADF 11); DFID is now the Bank's largest bilateral donor.[199]
Improving infrastructure in African countries has been identified
as a priority area for ADF 11.[200]
The DFID Minister acknowledged that "potentially the African
Development Bank does have a sharper role to play on urbanisation
and city governance."[201]
114. We were concerned to hear that the African
Development Bank (AfDB) currently focuses so little attention
on urban poverty. Whilst Africa is still predominantly rural,
it is the fastest urbanising region in the world and has the highest
proportion of slum dwellers amongst its urban population. This
represents a huge and growing problem for the African continent
and it is imperative that its regional development bank does more
to address the growing crisis of urban poverty. The UK should
use its leverage as the largest bilateral donor to the Bank to
ensure that the new AfDB urban strategy, currently under development,
makes strong commitments to addressing urban poverty. This should
include a particular focus on infrastructure, one of the Bank's
priority areas and a crucial component of future progress. We
recommend that DFID press for a dedicated department on urban
development to be set up within the Bank.
The World Bank and the Asian Development Bank
115. The World Bank's engagement with urban issues
has grown and includes more than 150 operations in over 60 countries
totalling US$10.3 billion of lending commitments.[202]
The Bank's 2009 World Development Report, Reshaping Economic
Geography, was supported with £450,000 of funding from
DFID and contained considerable focus on urban development.[203]
The Bank is currently undertaking an Urbanisation Review as a
follow up to the Report; this will inform the development of a
new urban strategy.[204]
DFID said that the Bank's new Strategy "gives greater prominence
to governance at the local level, recognising that strengthening
cities and towns to manage themselves, rather than as recipients
of centrally-driven projects, is a more sustainable way forward."[205]
116. DFID told us that it collaborates "extensively"
with the World Bank in India.[206]
Other examples of joint working on urban development include:
Ghana; Pakistan; Afghanistan; Indonesia; and the West Bank and
Gaza. DFID also provides $350,000 through the Cities Alliance
for the World Bank's work in Africa to prioritise urban issues
within national poverty reduction strategies.[207]
The World Bank received a record DFID contribution to its most
recent replenishment.[208]
We will discuss the Bank's role in urban development further in
Chapter 4 when we address the issue of poverty reduction strategy
papers (PRSPs).
117. We received very little evidence on the support
given to urban poverty by the Asian Development Bank (ADB) and
none on the third regional development bank, the Inter-American
Development Bank. The ADB has had an increasing focus on the urban
sector since 2006 and has had a strategy in place since 1999.
It is now working on a Cities Development Initiative for Asia.
This initiative promotes investment in Asian cities and is run
in collaboration with the German development agency GTZ, with
additional funding from the Swedish and Spanish governments.[209]
The ADB plans to recruit 20-30 new urban specialists in 2009,
which will double the current number of specialised staff in this
area. DFID contributed £28.5 million to the ADB in 2007-08.[210]
118. We commend the increased focus on urban development
by the World Bank and the Asian Development Bank. We welcome the
World Bank's development of a new urban strategy. Given its substantial
funding of the World Bank, we urge DFID to engage fully with the
development of the Bank's new strategy and to ensure that it is
sufficiently comprehensive, with strong focus on African, as well
as Asian, countries. We welcome the Asian Development Bank's Cities
Development Initiative for Asia, and its planned increase in specialised
urban staff. We encourage the African Development Bank to emulate
this enhanced focus and capacity to take forward urban development
work.
The role of community-led initiatives
119. Poor urban dwellers themselves represent an
active community of campaigners, developers, financiers and drivers
of change for the urban environment. Federations of slum and
shack dwellers and homeless people have, under the umbrella Slum/Shack
Dwellers International, sprung up in more than 20 countries. The
federations are mainly formed of savings groups, often managed
by women, which undertake a range of slum upgrading, housing construction
and community initiatives such as building public toilets (as
discussed in Chapter 2). Successful large-scale partnerships have
been developed between these federations and local and national
governments (for instance, in South Africa, India, Thailand and
Malawi).[211]
120. Community-led initiatives for urban development
have important 'spin-off' benefits such as women's empowerment.
Ruth McLeod of the DPU gave an example from Tamil Nadu in India
where community support has enabled 100,000 women from peri-urban
areas to join savings and loan groups. Over the years, these groups
have acquired a capital base of more than £80 million and
have become so influential that they even control local election
results.[212] Women's
quests for land acquisition and secure tenure can increase their
own and their children's opportunities to participate in education
and access healthcare.[213]
121. Witnesses believed that there was scope for
donors such as DFID to do more to facilitate alliances between
urban dwellers and local and national government.[214]
David Satterthwaite of IIED said that to do this, "You begin
working where the urban poor are very well-organised, and they
become your partner."[215]
A pre-requisite for this partnership is the presence of urban
expertise within development agencies so that they can engage
with urban dwellers and central and local government. He said
that DFID currently lacks in-country (as well as headquarters-based)
urban advisers.[216]
We will return to this issue in Chapter 5.
122. Another key step in the process of building
partnerships with community groups is building local capacity
and governance so that organisations are able to form and operate
effectively. This relates back to the points we made earlier about
promoting inclusive urban development. The NGO One World Action
underlined the need for DFID to allocate adequate resources to
urban programmes that strengthen local governance, democracy,
citizenship and transparency so that even the most excluded groups
can hold their municipal and national governments to account.[217]
Caren Levy of the DPU emphasised that supporting communities did
not mean letting the state "off the hook" and highlighted
the importance of strengthening local government, which can help
"localise" aid, enhance democratic governance and ensure
"well-planned, rights-based" cities.[218]
The DFID Minister told us that he has asked officials to explore
what more the Department could do to support city governance.[219]
123. For effective community groups to be formed,
some external support is necessary.[220]
This is the kind of "bridging" assistance that the Community-Led
Infrastructure Finance Facility (CLIFF) is trying to achieve.
As we have said, CLIFF is successfully forging new relationships
between urban poor organisations, governments, donors and banksand
leveraging considerable financial resources in the process. External
funding enables groups to organise themselves and mobilise other
supporters, andonce establishedto engage with national
governments, which can then provide larger-scale funding.[221]
We were told that small amounts of money go a long way; community
groups have become practised in building housing and infrastructure
for a minimum cost. Funds have been managed transparently with
loan repayments re-invested into other urban development schemes.[222]
We were told about the Community Organisation Development Institute
(CODI) in Thailand, which extends loans to communities for settlement
upgrading including: land acquisition; livelihood-based activities;
and the construction of housing and infrastructure.[223]
Under its Baan Maankong Programmelaunched with a target
to achieve 200 slum-free cities within five yearsinformation
generated by communities themselves, including on expenditure,
is published on community boards, to promote scrutiny and prevent
corruption and bribery.[224]
124. There are funding mechanisms already in place
to support community groups. Charities such as Homeless International
fund organisations of the urban poor worldwide and we were told
that contributing to the organisation was a "great way"
to provide support.[225]
In 2007, Slum Dwellers International (SDI) developed the Urban
Poor Fund International, an innovative, self-managed finance facility
that acts as the financial arm by which SDI transfers capital
directly to slum dwellers who are undertaking urban improvement
schemes that they have negotiated with local and municipal authorities.[226]
Funds are channelled to the SDI via the International Institute
for Environment and Development (IIED) and other institutions,
but the SDI makes all funding decisions on behalf of the Fund.
Initial financial support for the Fund included $10 million from
the Gates Foundation.[227]
David Satterthwaite estimated that improvements in housing and
basic services for 30,000 urban poor households had been achieved
by the Fund for less than £1.8 million over six years.[228]
An extra £5-10 million annually would guarantee that the
Fund could reach new groups wanting to begin urban development
projects.[229]
125. We were impressed to hear that federations
of poor urban dwellers are facilitating slum upgrading and urban
improvement schemes in more than 20 countries, with large-scale
partnerships being developed between these groups and governments
in several instances. We believe that supporting community-led
initiatives not only strengthens citizenship and boosts democracy,
but is also an incredibly cost-efficient way of promoting urban
development. Evidence shows that small amounts of external financing
can help deliver substantial development gains.
126. We believe that DFID should boost its funding
for urban community-led initiatives. We recommend that DFID begin
funding the Urban Poor Fund International, an existing financing
mechanism that has brought about improvements to housing and basic
services for 30,000 households for less than £1.8 million
over the past six years. If this success can be replicated, as
little as £5-10 million of additional DFID funding could
potentially reach another 150,000 households.
The role of local government
SHARING OF EXPERTISE BY UK LOCAL
GOVERNMENT
127. Local government authorities in developing countries
play a central role in urban development. They bear responsibility
for town planning, run municipal services, develop infrastructure
and act as the official link with communities. However, we were
told by a number of witnesses that the opportunity for sharing
UK expertise with local government in developing countries is
currently under-exploited.[230]
128. The UK Local Government Alliance for International
Development (LG AID), which comprises five local government agencies,
suggested that DFID could support this sharing of expertise through
actions such as:
- adopting a departmental strategy for strengthening
local government and working in partnership with UK local government
to implement this;
- working with the local government constituency
worldwide to strengthen urban authorities' capacity to plan for
urban growth and slum upgrading; and
- supporting the sharing of UK expertise in areas
such as: business and financial services; the "greening"
of urban economies (developing jobs, technologies and approaches
that produce environmental benefits); regeneration; climate change
mitigation and adaptation; and local data collection and analysis.
129. These proposals have been put forward to DFID
by the Local Government Association as a "Manifesto on International
Development".[231]
It is suggested that they could build on existing exchange schemes
by individual UK councils. For example, Warwickshire council has
facilitated staff exchanges with cities in Sierra Leone on waste
management, health and staff development. Lancashire County Council
has a longstanding partnership with the town of Gulu in Uganda
which helps increase resilience to climate change.[232]
130. Adopting such strategies would follow a lead
established by countries such as Norway and Canada, where development
agencies fund the deployment of local government practitioners
to contribute to development projects internationally.[233]
For example, the Canadian Municipal Association collaborates with
the Canadian International Development Agency to provide expertise
to support local governance and basic service provision through
partnerships with countries across the developing world. An annual
award is provided to Canadian municipalities that have made an
outstanding contribution to international development.[234]
Other approaches from European countries include a commitment
of 0.7% of local authority budgets towards partnering with cities
abroad.[235] Richard
Shaw, Chair of LG AID, said that learning from such partnerships
would be a two-way process and that the UK could learn from developing
countries as well as vice versa.[236]
He believed that DFID should take the initiative to enter into
dialogue with local government, who would: "want a policy
framework". He said that, "There may need to be some
encouragement and incentivisation, and these things do not just
happen on a whim. They need to be planned quite carefully.[237]
Geoffrey Payne echoed this view:
We have quite a lot of expertise in this country.
I would have thought that relationship could be better exploited,
but it needs a national framework in which central government
addresses local government here and says, We want to draw on your
expertise, we want to have that dialogue with you.[238]
In its recent response to our Report on Aid Under
Pressure, DFID acknowledged that there were "significant
benefits" to be gained from partnership with local government
organisations and provided us with information on its work with
the Local Government Association to promote collaboration on
development.[239]
131. We believe that a key opportunity exists
for UK local government expertise to be shared on a more systematic
basis with municipal authorities in developing countries and we
welcome DFID's acknowledgement of this in its response to our
earlier report. DFID's ability to expand its human resources
is currently constrained but expertise on urban issues exists
within many UK local authorities. This seems to us to create the
perfect opportunity to tap into an available but currently under-exploited
source of knowledge. We recommend that DFID look at partnership
models used by Canada and Norway whereby small amounts of international
development funds are used to support the logistical arrangements
for sending local government staff overseas. It is important that
the objective of such projects should be to facilitate capacity-building
and should involve robust on-the-ground collaboration and strategic
follow-up. This will require strong commitment from DFID, the
Department for Communities and Local Government and local government
if it is to be effective. But we believe that a relatively modest
amount of funding could have great impact in strengthening local
government capacity in areas such as financial management, governance
and accountability, the 'greening' of urban economies and regeneration.
This would be a two-way learning process and would bring mutual
benefit.
IMPROVED COLLABORATION ACROSS WHITEHALL
132. It is clear that for DFID to support UK local
government to participate in international development, it would
need to co-ordinate closely with the Department for Communities
and Local Government (DCLG).[240]
Richard Shaw said that currently DFID co-ordination with DCLG
on urban development and local government appeared to be lacking.[241]
133. The DFID Minister told us that the two departments
collaborate on the Cities Alliance and the Commonwealth Local
Government Programme. DFID also combines with DCLG to provide
the UK representation at the biennial World Urban Fora with DCLG
taking the lead. Iain Wright MP, then Parliamentary Under-Secretary
of State for DCLG, attended the Fourth World Urban Forum, held
in Nanjing in November 2008, but DFID acknowledged that "otherwise
the UK input was limited".[242]
The DFID Minister told us:
We do work with DCLG on any international dimension
of their work. For example, [...] [at the] World Urban Forum [...]
it is a DCLG Minister that leads the delegation, but there are
usually senior DFID officials in that delegation.
Geoffrey Payne highlighted that DFID sent just one
representative as part of the UK delegation in Nanjing.[243]
DFID told us that discussion about UK participation in the Fifth
World Urban Forum in Rio de Janeiro in March 2010 is "on-going".[244]
134. Within DFID's submission to us, details of co-operation
with other UK Government departments on urbanisation and poverty
were limited to a description of its work with the BRIC countries
(Brazil, Russia, India and China).[245]
Government action on urbanisation and poverty in BRIC countries
falls mainly under three of the 30 Public Service Agreements (PSAs),[246]
within the overall heading of "A more secure, fair and environmentally
sustainable world":
- PSA 27: Lead the global effort to avoid dangerous
climate change (lead department: Department for Energy and Climate
Change);
- PSA 28: Secure a healthy and natural environment
for today and in the future (lead department: Department for Environment,
Food and Rural Affairs (DEFRA); delivery partners include Department
for Communities and Local Government); and
- PSA 29: Reduce poverty in poorer countries through
quicker progress towards the MDGs (lead department: DFID; delivery
partners include HM Treasury, the Foreign and Commonwealth Office
and DEFRA).[247]
DFID did not provide us with details of UK Government
co-operation on urbanisation and poverty in developing countries
other than in relation to these four major economies. It acknowledges
that "greater interaction with other Whitehall government
partners is possible."[248]
135. Co-operation between DFID and the Department
for Communities and Local Government on urban development currently
appears to be weak. For example, DFID sent just one staff member
as part of the joint delegation to the last World Urban Forum
held in 2008. Closer joint working will be necessary if DFID is
to provide support for UK local government to contribute to international
development and it will only become more important as the world
continues to urbanise. We recommend that, in response to this
Report, DFID provide us with information on how it intends to
improve joint working. We also encourage DFID to use the forthcoming
Fifth World Urban Forum in Rio de Janeiro in March 2010 as an
opportunity to move towards new, closer working practices.
Poverty Reduction Strategy Papers
136. Poverty Reduction Strategy Papers (PRSPs) were
introduced by the World Bank and International Monetary Fund in
1999 as a framework for negotiations between major bilateral
and multilateral donors, partner country governments
and civil society. They are produced by developing countries to
describe macroeconomic, structural and social approaches to growth
and poverty reduction, and to highlight financing needs to external
lenders. National priorities, policies and action plans are set
out, often including quantitative targets and monitoring frameworks.[249]
137. We were told that the lack of prioritisation
of urban development within PRSPs is a major barrier to progress.
Homeless International said that PRSPs "show a general lack
of focus on, and understanding of, urban poverty issues".[250]
They attributed this partly to the lack of civil society involvement
in the PRSP process within contexts where organisations of the
urban poor are not recognised.[251]
David Satterthwaite of IIED pointed out that, if you were to search
a 300-page PRSP for the words "slums" or "squatter
settlements", you would find nothing: "It just is not
in the conception of the people that develop the PSRPs that there
is a thing called "urban poverty" that has importance".[252]
He blamed this on World Bank staff.[253]
Since PRSPs were introduced, criticism has been directed at the
Bank's powerful role in developing the Papers, with some arguing
that macroeconomic policy choices have not been adequately debated
and that few countries have felt able to deviate from standard
approaches recommended by the Bank.[254]
138. DFID has provided $350,000 through the Cities
Alliance for the World Bank's work in five African countries on
"Mainstreaming Urban in Poverty Reduction Strategies."[255]
Ruth McLeod thought DFID could have a "tremendously strong"
role in supporting the capacity of agencies working on urban development
to "make that voice louder" within PRSP consultation
processes.[256] The
DFID Minister told us:
We do address and raise in discussions about
poverty reduction strategies in-country concerns about some of
the needs of slum dwellers or some of the needs around urbanisation
in terms of education, on health, on water, on sanitation et cetera.
Simply because there is not a paragraph that talks about urbanisation
does not mean that we are not addressing some of the challenges
that urbanisation brings in those PRSPs.[257]
139. We believe that urban issues require far
more emphasis within developing countries' national Poverty Reduction
Strategy Papers (PRSPs). We disagree with DFID that implicit references
to urban issues within PRSP texts are sufficient. Urban poverty
will only be prioritised when it is made visible as an issue on
national agendas with the necessary political will underpinning
firm targets. We believe that achieving higher prioritisation
within PRSPs will require concerted efforts from key players in
the process, including the World Bank, civil society and major
donors. We recommend that DFID make much more vigorous efforts
to encourage development partners to ensure that urban poverty
reduction is given specific and detailed coverage in their strategy
papers.
174 UN-Habitat, UN-Habitat: For a Better Urban Future Back
175
UN News Centre press release, "UN agency receives major cash
injection to ensure adequate shelter for all" (29 April 2009).
The total included a "general purpose budget of $66 million". Back
176
Q 14 Back
177
Q 14 Back
178
UN-Habitat, "The present funding of UN-Habitat" prepared
for the UN-Habitat Donors meeting in Seville, 15-16 October 2008,
p.5, online at http://www.unhabitat.org/downloads/docs/5883_5454_Present%20funding.pdf
and Q 16 Back
179
Q 184 and Q 16 Back
180
Q 16 Back
181
UN-Habitat, "The present funding of UN-Habitat" prepared
for the UN-Habitat Donors meeting in Seville, 15-16 October 2008,
p.5, online at http://www.unhabitat.org/downloads/docs/5883_5454_Present%20funding.pdf Back
182
UN Development Assistance Frameworks are the common strategic
framework for the operational activities of UN agencies at country
level. Back
183
DFID, Eliminating World Poverty: Building our Common Future, Cm
7656, July 2009, paras 6.10-6.19 Back
184
Q 16. For example, the £60 million UK funding for the joint
UNDP-UN-Habitat urban development programme in Bangladesh is channelled
through UNDP and on to UN-Habitat. Back
185
Ev 88 Back
186
Q 90 Back
187
Ev 88 and Q 38 Back
188
Q 38 Back
189
Q 40 Back
190
Qq 189-190 Back
191
Ev 87 Back
192
Q 80 Back
193
Ev 105 Back
194
Ev 110 Back
195
Ev 83 Back
196
Ev 84 Back
197
Ev 83-84 Back
198
Ev 84 Back
199
The UK contribution to the 11th African Development
Fund (ADF), announced in November 2007, more than doubled the
amount committed from ADF 10 (2005-07) to £417 million for
2008-2010 Back
200
International Development Committee, Seventh Report of Session
2007-08, DFID and the African Development Bank, HC 441-II, Ev
27 Back
201
Q 181 Back
202
Ev 86 Back
203
Ev 86 and World Bank, World Development Report 2009, "Reshaping
Economic Geography" Back
204
Ev 87 and Ev 76 Back
205
Ev 76 Back
206
Ev 86 Back
207
Ev 86-87 Back
208
In December 2007, DFID committed £2134 million to the 15th
replenishment of the World Bank's International Development Association
(IDA), an increase of nearly 50% from IDA 14. Back
209
Q 170, Q 179 and Ev 83 Back
210
This figure refers to funding of the Asian Development Fund, the
Asian Development Bank's concessional lending and grant-making
arm. DFID, Statistics on International Development 2003/04-2007/08,
p.110 Back
211
Ev 134 Back
212
Q 93 [Ruth McLeod] Back
213
Q 141 [David Satterthwaite] Back
214
Q 139 Back
215
Q 143 Back
216
Q 146 Back
217
Ev 149-150 Back
218
Q 89 and Ev 106 Back
219
Q 198 Back
220
Q 144 Back
221
Q 155 Back
222
Q 153 Back
223
Q 86 [Ruth McLeod] Back
224
Ev 108 Back
225
Q 153 [David Satterthwaite] Back
226
Urban Poor Fund International, Strategic and Financial Plan Back
227
Background document on the Urban Poor Fund International, made
available by David Smith, Affordable Housing Institute, at Wilton
Park conference, Financing Affordable Housing for Low Income
Groups: Innovative funding for urban housing, 21 May Back
228
David Satterthwaite, presentation given at Wilton Park conference,
21 May, "Financing housing and community development for
low-income groups: The International Urban Poor Fund" Back
229
Q 155 Back
230
See, for example, Q 111 Back
231
Local Government Association, "Using Public Excellence Overseas"
(2009). Back
232
International Development Committee, Fourth Report of Session
2008-09, Aid Under Pressure: Support for Development Assistance
in a Global Economic Downturn, Vol II, Ev 127-128 Back
233
Ev 169-170. The five local agencies are: the Commonwealth Local
Government Forum; the Improvement and Development Agency; the Local
Government Association; the National Association of Local Councils;
and the Society of Local Authority Chief Executives & Senior
Managers. LG AID has recently been awarded £300,000 (over
three years) from DFID's Development Awareness Fund for raising
awareness of development issues amongst local councils in the
UK. Back
234
Ev 169-170 Back
235
Qq 94-95. 0.7% is the target proportion of gross national product
set by developed countries to go towards international development. Back
236
Q 112 Back
237
Q 114 Back
238
Q 106 Back
239
Fourth Special Report, Session 2008-09, HC 1009 , response to
recommendation in paragraph 96 Back
240
Q 107 Back
241
Q 104 Back
242
Ev 91 Back
243
Geoffrey Payne, id21 Viewpoint, "The world comes to Nanjing
for the World Urban Forum" (14 December 2008), online at:
http://www.id21.org/viewpoints/pdfs/Payne.pdf
Back
244
Ev 91 Back
245
Ev 88-93 Back
246
The 30 cross-government PSAs were introduced in the 2007 Comprehensive
Spending Review as the basis for government spending from 2008-2011;
each has a lead department with named departments as delivery
partners. Back
247
HM Treasury (2009) "PSAs-A more secure, fair and environmentally
sustainable world", http://www.hm-treasury.gov.uk/pbr_csr07_psaenvironment.htm,
quoted in Ev 88-89. Back
248
Ev 81 Back
249
S.Fukuda-Parr, "Are the MDGs priority in development strategies
and aid programmes?", International Policy Centre for Inclusive
Growth, 2008, p.5 Back
250
Ev 117 Back
251
Ev 118 Back
252
Q 161 Back
253
Q 161 Back
254
For example, Bretton Woods Project and World Vision, "Blinding
with Science or Encouraging Debate? How World Bank analysis determines
PRSP policies" (2002) Back
255
DFID says that these funds were used to support analytical work
on urbanisation/urban policy/urban poverty issues and dissemination
in Ethiopia, Ghana, Tanzania, Kenya, and Mozambique (Ev 86). Back
256
Q 79 Back
257
Q 193 Back
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