UPA Package 3, Module 1

1. UPA Package 3, Module 1 URBANIZATION AND THE POOR: PERSPECTIVES FROM THE THIRD WORLD

2. Urbanization in the Third World (TW) • Defining and subclassifying the Third World • General characteristics of TW countries • TW urbanization experience compared with that of western countries • Stages of TW urbanization • pre-colonial period • colonial era • post-colonial times 3.1.2 Urbanization and the Poor: Perspectives from the Third World

3. Socio-Spatial Structuring of the TW City and its Impact on the Poor • Rural-urban migration and the fragmentation of the built environment • The dual economy and the fragmentation of the labor market • The shared space 3.1.2 Urbanization and the Poor: Perspectives from the Third World

4. Approaches to Urban Planning and Management in TW Countries • The experience with the use of western models • Toward more radical and innovative approaches • socialist TW approaches • UN Habitat-led initiatives

5. Residential Options of the Poor in TW Cities • Self-help schemes • the multi-step transition model • the shared space model • Government programs • urban renewal and slum upgrading • sites and services provision • tenure improvement schemes

6. Defining the Third World • “Third World” is defined by elimination: • First World - industrialized countries of Western Europe, North America and the Pacific (OECD-member countries). • Second World - industrialized formerly centrally planned economies of Eastern Europe. • Third World - all the rest of the countries in Latin America and the Carribean, Africa, Middle East, and all of Asia except Japan. Other exceptions: Israel (ME) and South Africa (Africa).

7. By geographical configuration: North - First and Second Worlds: Advanced, modern, developed, industrialized, rich. South - Third World: Backward, traditional, underdeveloped or developing or less developed, poor.

8. Classification of TW Countries (World Bank, 1988) • Low income economies - less than $500 per capita annually • Middle income economies - between $500 and $6,000 per capita • Lower middle income - less than $2,200 per capita • Upper middle income - Asian tigers (Israel, Hongkong, Singapore) • High income countries - OECD countries with income per capita of over $6,000

9. Recent Sub-categoarization of TW Countries • Advanced developing countries (ADC) or newly industrializing countries (NIC) - Brazil, Argentina, Singapore, Taiwan, Hongkong and South Korea. • Petroleum exporting countries (PEC) - a disparate group of 36 nations with super-rich nations like Kuwait and Libya at the top and poor countries like Nigeria and Indonesia at the bottom

10. Middle-income countries (MIC) - 45 other TW countries including Malaysia, Philippines and Thailand. • “Fourth World” - remaining 35 countries accounting for 35% of TW population but only 3% of gross global product (GGP) and 5% of TW exports. Their per capita income is insufficient to provide for a minimum level of welfare.

11. General Characteristics of TW Countries

12. General Characteristics of TW Countries Source: Atlas of the Third World, 1983.

13. Socialist Third World • 122 countries comprise the Third World • About one-fourth of these belong to the socialist TW classified into four categories: • Group I - members of CMEA or Comecon, e.g. Vietnam and Cuba • Group II - well-established communist of socialist states outside of Comecon, e.g. China • Group III - self-proclaimed hard-line socialist states closely aligned with USSR, e.g. PDR, Yemen • Group IV - marginal states with one-party governments, e.g. Algeria, Nicaragua, Guyana

14. Characteristics of the Socialist TW • Effective one-party rule • High and increasing degree of state ownership of industry and agriculture • Tendency towards centralized command of the economy • Establishment of comprehensive planning structure • A development path that does not rely on the dynamics of private capital ownership and entrepreneurship • Generally slow rate of urban growth

15. TW and Western Urbanization Experience compared

16. TW and Western Urbanization Experience compared

17. Phases of TW Urbanization • Pre-colonial TW Cities • Existed prior to European-based exploration and discovery in the 15th century • Unique and indigenous, the city was a product of local initiative to serve local needs utilizing the local environment • Population density remained low • Simple and small, performed a few functions and had little spatial differentiation

18. Phases of TW Urbanization • Pre-colonial TW Cities (continued) • Economic activities oriented to subsistence needs • Technology was rudimentary • No long-distance trading due to self-sufficient economy and underdeveloped transport networks • No distinct land use assignments; people of all social classes lived and interacted together in relative small space

19. Colonial TW Cities • Begun with the rise of mercantilism; reached maturity with the Industrial Revolution • A distinctive product of European colonialism • Colonial urbanization involved dismantling of indigenous technology and implanting European social and cultural values • TW city served as European colonial outpost

20. Colonial TW Cities (continued) • TW city as commercial entreport: facilitated export of primary products and import of manufactured goods • TW city also as industrial hub: for intermediate processing of raw materials destined for the mother country • Industries developed in turn key fashion from Europe rather than from within • TW city fostered continued dependence on the west for technology and markets • Segregation policy imposed by the colonial order gave rise to fragmented land use patterns

21. Post-colonial TW Cities • Emerged after independence or during the post-World War II period • Control passed on to local elites but colonial influence and legacy lives on • Increase in population size due to influx of rural migrants • Increase in commercial and industrial land use due to investments by multi-national corporations • Coexistence of traditionalism and modernism, wealth and poverty, legal and illegal quarters.

22. Socio-spatial Structuring of the TW City: Impact on the Poor • TW urbanization is often called “false urbanization” because: • it is driven by demographic forces • unaccompanied by economic growth • Two demographic factors causing TW urbanization: • high natural growth rate due to • modest decline in birth rates • steep decline in death rates • Heavy migration from rural areas to urban centers

23. 1a Rural Crop Zone 1 Rural Crop Zone 2 1b Rural Family Migrant in Town Return visit for seasonal agricultural needs The Seasonal Flow

24. Rural Family Migrant in Town Permanent return either through dissatisfaction or upon acquiring family responsibilities in village or following retirement Circular Migration

25. Step or stage migration Rural Area Small Urban (Time lag, maybe one generation) Small Urban Large City The Permanent Flows

26. Chain Migration Migrant Quarters Develop in Town Stays with Relative or Friend in Town Migrant sets up own dwelling in town Rural Area Friend or Relative of First Migrant Stays with migrant now established in Town Second migrant sets up own dwelling in Town

27. Causes of Rural-To-Urban Migration • “Push Factors” • Very low rural incomes • Wars and civil strifes • Natural calamities • Difficult access to land • Labor redundancy due to farm mechanization • Price of agricultural inputs and outputs manipulated by traders

28. Causes for Rural-To-Urban Migration • “Pull Factors” • Huge urban-rural differentials • Available better paying jobs in cities • Better quality urban services and facilities • Possibility of publicly subsidized goods and services • Lure of “bright lights”

29. Social Consequences of Rural-To-Urban Migration • The Myths • Louis Wirth’s destruction of “folk societies” • Oscar Lewis’ “culture of poverty” • Transitional settlements stereotyped as social aberrations “cancers” that overwhelm an otherwise healthy municipal body

30. Social Consequences of Rural-To-Urban Migration • The Realities • Squatter settlements or transitional represent a solution to the complex problem of urbanization and migration. • Contrary to Wirth, rural-urban migrants are not anonymous nor alienated; they maintain stronger contacts with their rural folks than with their urban neighbors. • Contrary to Juppenlatz, residents of transitional settlements display remarkable vigor and ingenuity in improving their living conditions. • Contrary to Lewis, shanty town residents are upwardly mobile, industrious, savers, and are often more conservative than radical.

31. Squatter settlements perform important functions in the urbanization process • They provide affordable housing to the lowest income groups. • They act as reception centers for new migrants assisting them to adopt to urban life. • They provide a wide variety of employment in marginal and small-scale enterprises. • They provide accommodation in close proximity to work • Their social organization provides essential support in times of extreme difficulties. • They encourage and reward small-scale entrepreneurship in the field of housing.

32. Spatial Consequences of Rural-To-Urban Migration • Migration, coupled with segregationist policy, led to spatial fragmentation of the colonial city. Evidences: • the center or the colonial city core • Planned districts of the pre- and post-colonial periods • The historic city (often pre-industrial) • Illegal settlements – built on illegally subdivided land • Slums – both on inner cities and in the peripheries

33. Economic Impact of Rural-To-Urban Migration • Rapid migration leads to rapidly increasing labor force. • The increased labor force cannot be absorbed in full productive employment. • Bulk of new manpower is absorbed by small-scale enterprise, personal services and open unemployment. • Spurts of urban investment trigger more migration to the city. • Maintenance of a minimal “survival” economy. • Reinforcement of traditional subcultures in the city. • Rise of a coexistent dual economy: the formal and the informal. • Linkage between the formal and informal sectors characterizes the economy of the TW city.

34. Characteristics of the Informal Economy • Ease of entry • Reliance on indigenous resources • Family ownership of enterprises • Small scale of operation • Labor-intensive and adapted technology • Skills acquired outside formal school system • Unregulated and competitive markets

35. Characteristics of the Formal Economy • Difficult entry • Frequent reliance on overseas resources • Corporate ownership • Capital-intensive, often imported technology • Formally acquired skills, often expatriate • Protected markets (through tariffs, quotas and licenses) 3.1.2 Urbanization and the Poor: Perspectives from the Third World

36. Impacts of the Dual Economy on the Poor • Formal sector firms employ substantial number of casual workers who are paid low wages, without fringe benefits, unprotected by social security. • Low wage labor produces low cost inputs for the formal sector. • Informal sector provides cheap goods and services for formal sector workers. • Informal sector subcontractors to formal sector firms hire children and minors to work in sweatshops. • Subcontractors to subcontractors do piece work in their own homes at exploitatively low rates. • Home work creates the “shared space”: activities for living share space with activities for making a living.

37. Floor to roof wall Workshop Residence T Kitchen T Workshop Residence Kitchen 1. Resident-workshop 2. Residence-cum-workshop Residence R1 W1 W2 R2 Workshop R Residence W Workshop 3. Residence-linked-workshop 4. Independent workshop Source: Chadwick, 1987 Factories in Domestic Premises Types of Workshops (Sit, 1970)

38. Spatial Impact of Informal Sector Activities Source: Chadwick , 1987

39. TW Approaches to Urban Planning and Management • Premised on the belief that Urban Primacy is undesirable, planning sought to limit urban growth through • Control of migration • Positive urbanization and urban development policies • Regional planning and development • Urban planning at municipal level

40. Measures to Control Migration • Residency permit system • Development of lagging regions • Integrated rural development

41. Regional Planning Approaches • Regionalization with identified growth poles for each region • Industrial location incentives • infrastructure provision • tax credits and holidays

42. Positive Urbanization Measures • National infrastructure development • Capital cities development • New towns/satellite towns development • Promotion of medium-size cities

43. Municipal Level Urban Planning • Master plans for specific sectors and areas • Urban renewal or revitalization

44. Socialist TW Urbanization Policy • Promotes a society that is neither urban nor rural through • decentralization and development of uninhabited regions • industrialization of the countryside using small-scale technology • distribution of equal levels of services and knowledge

45. To convert consumer cities to producer cities, through • Reducing the size of the largest cities • Promoting self-sufficiency in the urban economy • Encouraging the growth of small and medium sized towns; creation of new towns

46. To make cities self-sufficient in food • Expansion of the city boundary to incorporate a productive rural hinterland • Greening of the suburbs by promoting household fruit and vegetable gardens • Developing peri-urban agriculture and allocation of urban labor to this region

47. Housing the Poor in the TW Cities • Rationale • The great majority of poor people cannot afford to purchase housing in the market at a quantity and quality adequate to sustain a decent standard of living. • The inability to afford housing leads the poor to find unconventional solutions including solutions that are illegal in certain contexts

48. Features of TW Housing • Many people occupy land without due permit of the owner or due process of subdivision. • TW housing is distinctive for the variety of building materials used. • Renting and multiple occupancy are an important aspect of accommodation for the poor.

49. Structures of Sub-market for Housing • Criterion 1: Legality of land occupancy • Legal occupants use land in accordance with existing laws on property rights • Illegal occupants do not have legal title and have violated subdivision regulations • Criterion 2: Legality of physical characteristics of individual units • Those that meet minimum government standards for building material, lot size, floor area, etc. • Those that have violated building regulations • Criterion 3: Status of Tenure • Owners with unique or multiple occupancy • Renters with unique or multiple occupancy

50. LEGAL Occupancy of Land ILLEGAL Physical Characteristics of Land and Structure A Regular Housing Market C Invasion Housing Market LEGAL Owners Renters Owners Renters D Squatter Housing Market B Slum Housing Market ILLEGAL Source: Lim, 1987 Structure of Sub-market for Housing