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Imagining a Social Enterprise Model for the Provision of Pro-poor Housing Solutions in the Philippines

By ucfudho, on 7 December 2016

In November 2013, super typhoon Yolanda hit the Philippines in full swing. Fragile shelter structures across the archipelago’s coastal areas did not withstand the strong winds and storm surges brought about by Yolanda. In the aftermath of the disaster, the government launched an emergency programme with the mission to ‘build back better’ [1]. The government was supported by the international humanitarian community, whose swift response matched the scale of the disaster in its scope and ambition. Yet serious funding challenges were said to hamper recovery.

 

Budget shortfalls are one of the most pervasive barriers to the successful implementation of recovery programs and a constant challenge faced by traditional development models. The idea that social enterprises could offer an answer to this issue has gained traction in the past years [2]. Social enterprises are organisations set up as revenue-generating business with social objectives, which allows them to be financially independent. As part of DPUs Junior Professional Programme, I was lucky to work closely with one of them.

 

Founded in 2014, LinkBuild is a young Housing Development Enterprise (HDE) whose mission is to scale up innovative, low-cost, and sustainable shelter solutions and programs for and with the poor. LinkBuild was set up as the latest addition of the Philippine Alliance, a grouping of 5 organisations that has a long history of successfully mobilising communities around savings groups in order to achieve secured land tenure. Given the current housing context in the Philippines, the need for this kind of program has never been more urgent.

 

The Housing Context in the Philippines

 

A new day begins in Quezon City, one of Metropolitan Manila’s 16 cities. The streets have been buzzing since the early morning hours, the traffic slowly pulsating through their aching junctions. As I work my way through the streets, I walk past busy informal settlements. Some are squatter settlements, the result of spontaneous and unplanned occupation of land. Others are informal subdivisions. The residents here live on a surveyed plot and they usually have proof of ownership or land-lease rights.

 

Flooded downtown Manila during rain season.

Flooded downtown Manila during rain season.

 

In Metro Manila, one out of every four people resides in informal settlements, often within disaster-prone areas. As an alternative, several shelter programs are being implemented by government and non-government actors. Yet the delivery of these programmes has been unable to cope with the rocketing demand for affordable housing. Driven by natural population growth and rural to urban migration, the main urban areas in in the Philippines are growing at a breath-taking pace. The country is projected to be 80% urbanised by 2025 [2] – an increase of 30 points from 2015. Moreover, officials are talking of a housing backlog of 5.7 million houses of which 60% are believed to be economic and social housing [3].

 

Most worryingly, some of the latest government’s efforts to deliver shelter programs have been proven to be counterproductive. A recent operation plan that aimed to relocate over 104,000 informal settler families out of danger zones in Metropolitan Manila, relocated 67 per cent to off-city sites [4]. The programme beneficiaries call these off-city sites the ‘death zones’. They feel effectively disconnected from their earlier life as they struggle to deal with the loss of their livelihoods and networks. Reports show that up to 60% of individuals that were relocated out of Metro Manila eventually return to the city [5]. If given the option, many ISF would rather remain in the old site despite the immediate risks they face instead of moving outside of the city.

 

Informal subdivision in Valenzuela City, Metro Manila.

Informal subdivision in Valenzuela City, Metro Manila.

 

At the same time, the private sector has recognised affordable housing as a potential growth market, yet it is struggling to set foot in the sector. From a purely financial perspective, affordable housing provision is a cut-throat affair. In Metro Manila, developing affordable housing amounts to ‘financial suicide’, as a local housing developer recently put it. The high land prices, as well as the additional costs of building in a congested city mean that selling houses for less than 7.500£, the maximum unit price at which they are considered to be affordable, can only be achieved at a loss. Even the supply of houses within the ‘economic housing’ brackets, at a unit cost of no more than 19.000£, is a hard trick to pull off.

 

The fundamental problem with these government and private programmes is that they treat informal settlers as an issue that needs to be dealt with, or an opportunity that ought to be exploited. What they fail to see is that informal settlers can be actors in the housing delivery process.

 

Imagining a Social Enterprise Model for the Provision of Pro-Poor Housing

 

As a social enterprise, LinkBuild is set as a revenue-generating business with social objectives. This distinguishes it from traditional NGOs that rely on international aid and funding to run their programmes and operations. Historically, the Philippine Alliance members have operated as traditional NGO’s. However, the donor landscape is shifting as it tries to make its beneficiaries’ programmes more investor-friendly. As a result, donors increasingly treat capital disbursements to partners as an investment, which has important implications for organisations like LinkBuild. This new trend is pushing LinkBuild to imagine a business model that sits comfortably within the highly competitive real-estate sector while staying true to its vision of reaching and mobilising the marginalised communities.

These units were built on an in-city relocation site identified by the local government. It also facilitated negotiations with the landowner and landfilled 6.5 hectares of land. Seventeen (17) of these plots were allotted to one of the communities associated to the Philippine Alliance

The units pictured above were built on an in-city relocation site identified by the local government.  Local government also facilitated negotiations with the landowner and landfilled 6.5 hectares of land.

 

To achieve financial sustainability, LinkBuild’s latest wave of housing projects is being conceived as mixed-income developments. The idea is to make a part of the 670 units fit for middle-income clients. The units, which will be more spacious, will be sold at a price surplus, effectively subsidising the construction of the more affordable units. While this new approach seems like radical change in direction, it does have a compelling argument in its favour. It offers a possibility for the organisation to become financially independent over time.

 

In the short run, LinkBuild’s operations would still heavily rely on the access to a starting capital. LinkBuild has therefore partnered with Real Equity For All (ReAll – former Homeless International), one of the few investors who are venturing into the housing market at the bottom of the pyramid. The capital enables LinkBuild to cover the costs of ‘hard investments’ such as purchasing and developing land, as well as the construction of the housing units; and thus, LinkBuild cannot be thought of as a stand-alone organisation, at least not for the time being.  However, in the medium run LinkBuild is hoping to achieve financial sustainability sustaining through the profit generated by the sales of surplus houses.

 

Chart 1: LinkBuild’s Social Enterprise Model

Chart 1: LinkBuild’s Social Enterprise Model

Strong Communities Make a Difference

In line with the tradition of community-oriented organisations like the Community Architects Network and the Asian Coalition of Housing Rights, LinkBuild works closely with the communities that it seeks to reach. The Philippine Alliance is the main enabler of this process. Each organisation in the Alliance plays a strategic role in delivering LinkBuild’s housing projects, as their active networks and expertise allows them to mobilise and engage communities through participatory processes. For example, through the Homeless People Federation Philippines, Linkbuild is able to link with strong communities (see Chart 1) in different regions. After connecting with the communities,  LinkBuild conducts market research and hosts workshops with clients and communities to ensure that it is able to reach target clients; that it meets their specific needs; and that the project is financially viable. In the end, the gathered information directly feeds into the architects’ final project design.

Chart 2: What defines a Strong Community?

Chart 2: What defines a Strong Community?

Moreover, the close ties of the Philippine Alliance with the local government units help to navigate the hurdles that land acquisition and development may pose. For example, in Mandate City, local government identified land and facilitated the negotiations for acquisition. Given the competitive nature of the sector, this form of support is crucial.  Least but not last, LinkBuild also follows international best practice of developing in-city projects. By purchasing land that is centrally located, the organisation hopes to deliver projects that actively contribute to the integration of marginalised communities to the existing city fabric.

 

Participants of the Bago Gallera Site Planning Workshop in Davao City last September.

Participants of the Bago Gallera Site Planning Workshop in Davao City last September.

All of the above factors allow LinkBuild to distinguish itself from the traditional housing developers that tend to have a top-down approach to housing delivery and are primarily concerned with meeting sales objectives.

Ultimately Linkbuild’s model still remains to be tested since the mixed-income housing projects are yet to be completed. As the organisation enters unexplored waters with the Philippine Alliance, it will continue to learn by doing. And there remains a lot to be learnt. Given the housing sector’s state of permanent emergency, planning for the future of the countries’ urban poor is crucial. Despite the scale of the problem, there are only few organisations bold enough to offer an alternative. As it paves its way to sustainability, LinkBuild might well be leading the path towards the ‘imaginative reformulation of the systems by which we manage change’ [7]. And it is leading the change by asking the right question – how do we build forward better?

 

References

 

[1] National Economic and Development Authority, 2013. Reconstruction Assistance on Yolanda:  Implementation for Results. [online] Available at: http://yolanda.neda.gov.ph/wp-content/uploads/2015/11/RAY-2.pdf

[2] Overseas Development Institute, 2013. Why and how are donors supporting social enterprises? [online]. Available at: https://www.odi.org/sites/odi.org.uk/files/odi-assets/publications-opinion-files/8894.pdf

[3] The World Bank, 2016. Closing the Gap in Affordable Housing in the Philippines: Policy Paper for the National Summit on Housing and Urban Development. [online] Available at: http://documents.worldbank.org/curated/en/547171468059364837/pdf/AUS13470-WP-PUBLIC-Housing-Summit-Policy-Paper-has-been-approved-P155561.pdf
[4] Lorenciana, C.R. (2013). Philippine housing backlog is 5.5M SHDA targets to build a million units by 2016. [online]. Available at: http://www.philstar.com/cebu-business/2015/07/13/1476445/philippine-housing-backlog-5.5m-shda-targets-build-million-units

[5] The World Bank, 2016. Closing the Gap in Affordable Housing in the Philippines: Policy Paper for the National Summit on Housing and Urban Development. [online] Available at: http://documents.worldbank.org/curated/en/547171468059364837/pdf/AUS13470-WP-PUBLIC-Housing-Summit-Policy-Paper-has-been-approved-P155561.pdf

[6] Housing and Urban Development Coordinating Council. 2014. Developing a National Informal Settlements Upgrading Strategy for the Philippines (Final Report). [online]. Available at: http://www.hudcc.net/sites/default/files/styles/large/public/document/NISUS%20Final%20Report_July2014.pdf

[7] Sumsook, B. 2016.  Cities for People and by People. [online]. Available at: https://unchronicle.un.org/article/cities-people-and-people

 


 

David Hoffmann is an alumna of the MSc Urban Economic Development and a participant of the DPU/ACHR/CAN Young Professionals Programme. He currently works at LinkBuild, where he is involved with the design and implementation of organisational development strategies. Amongst others he organised workshops to encourage the knowledge exchange between community associations in Cebu and Davao.

 

*All pictures taken by D.H.

 

Collective practices vs. the Neoliberal City?

By ucfuhrj, on 24 November 2016

Has democracy failed to resist the neoliberal vision of the city and does architecture have anything to contribute to the debate? A presentation by Leonardo Cappetto, an architect and co-founder of Grupo TOMA, came as a fresh and potent ray of hope on Thursday evening – 17th November 2016. Thanks to Dr. Camilo Boano, Leonardo was invited to present at the Development Planning Unit. His presentation commenced by juxtaposing the rise of populist right-wing politicians almost all around the world and the seeming demise of an alternative to the neoliberal city. But the optimism rose as he presented the work done by the Chile based collective – Grupo TOMA towards attempting to find that alternative.

37_TOMA_poster_v1b

The promise of an alternative reflected within the very structure of Grupo TOMA, defying the norms that governed the 20th century professional world. Grupo TOMA is a collective of architects without any hierarchical internal relationships. It is a nomad organisation that resents the idea of growth for its sake and it works with temporal communities inherently being denied the chance for any permanent architectural statement.

 

What motivates a group of architects to let go of the egotistic practice of the 20th century? What inspires their continuing reconciliation with temporal existence? Leonardo’s presentation was just a glimpse into some of the aspects that may answer these questions.

 

TOMA’s first project involved bringing together neighbours to discuss and decide potential uses for an empty plot in a neighbourhood. Not having accomplished the desired outcomes after months of working with the local government, TOMA moved to set up its office in a factory that was commissioned for demolition and used the opportunity to invite 10 organisations to collectively model a city, comprising of design shops, kitchen, discussion areas, artist workshops, bicycle shops and media outlets among others. Though short lived, the experiment involved developing a territory and building a social organisation to organise that developed territory. According to Leonardo, such an experiment has immense potential in stimulating political questions over the city and thereby informing us of the alternatives.

 

TOMA’s journey continued in a new factory, commissioned to be converted into a centre for innovation. Cautious of the potential of their actions towards gentrifying the neighbourhood, TOMA embarks on a new project of generating a social narrative of the history of the place. Using a fictitious character of an elderly resident, Mr. Hugo, the narrative attempted to capture the rise of social speculators, searching for their gains in the neoliberal city – “a speculopolis – a Chillicon Valley”, suggested Leonardo. Although criticised of being a “dystopian narrative”, Leonardo claimed that such an exercise helps prompt discussion and provocations against the “seduction and destruction” of neoliberalism. Grupo TOMA has carried out similar other projects in Santiago de Chile, as well as Chicago, where they moved their office for a few months.

 

Leonardo concluded his talk by hinting at three main contributions architecture can make towards questioning the dominant neoliberal city. Firstly, he claims, the contribution lies in acknowledging the interrelation between the territory and its social organisation, something the profession has neglected so far. Secondly, in his opinion, architecture can help mobilise contemporary political discussion through use of unconventional languages and of experiments. Lastly, he concluded by asserting the potential of architecture in building spaces and scenarios for involving all socio-political conflicts.

 

Undoubtedly, Leonardo’s passionate accounts of TOMA’s work and its ideological journey stimulated a lively debate. Questions came from the audience that ranged from the ethics of involving community during projects to TOMA’s future plans for a bigger and a more permanent movement. Leonardo’s fitting comments, modestly acknowledging the unknown and further provoking the ideas of permanency, growth and the neoliberal, closed the session by stating, “Although temporal, the projects are Real and even as they disappear – nothing remains the same.”

 

Follow the works of Grupo TOMA here.

 

Brexit and Its Malcontents

By Liza Griffin, on 12 July 2016

The hateful Brexit campaign has a lot to answer for. The few at its helm have emboldened racists and racist acts and have caused many to be fearful and many more to feel unwelcome or reviled. This is a tragedy that can’t be wished away.

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But I fear that the outcry after the result is patronising to the very many who voted to come out of Europe for a multitude of reasons or whom  felt excluded from the EU as a set of institutions. While the issues may have been poorly drawn by mainstream media and presented ineffectually by campaigners; I’ve no doubt that millions voted as a result of a careful evaluation of the issues as they saw them.

In my view, there needs to be a legitimate space for airing and discussing those feelings as well as, and in relation to, the fears and attitudes concerning racism and xenophobia.

It is both depressing and concerning that these views have been pitted against one another. It is also alarming that those choosing to leave the EU have been tarred with the same brush as the Brexit campaign itself. The campaign revealed itself to be mendacious and its central strategy was to stir up animosity.

However, choosing to leave the EU was not an automatic vote of support for this invidious campaign. Voters were asked about membership of an institution with contradictory policy objectives and a multifaceted identity. It was a straightforward question – in or out –  but the choice itself was not straightforward.

The EU is undeniably multiple: it is at once a commitment to peace between historically volatile nations; an expression of open borders and a series of safeguards against social and environmental harm. Other imaginaries perceive  it rather differently; as is an elitist entity, an instrument of neoliberalism, an interfering authority or a self-serving confederation facilitating the plunder of sovereign states’ wealth and consuming resources at a time when public spending is being squeezed. For many others, myself included, the Union has symbolised several of these conflicting perspectives.

Whichever imaginaries voters were drawn to, there is little doubt that many were ignorant of the history and finer workings of the EU and its political economy – but this goes for both the brexit and remain supporters. For these reasons, the complexity of the issues at stake and the multiple imaginaries at play inevitably belie any simplistic analysis of the referendum result.

In trying to make sense of the result for myself, I particularly enjoyed Emejulu’s piece on the whiteness of brexit. http://www.versobooks.com/blogs/2733-on-the-hideous-whiteness-of-brexit-let-us-be-honest-about-our-past-and-our-present-if-we-truly-seek-to-dismantle-white-supremacy

She argues that issues of race are inherent to EU politics and have infused this referendum but I don’t take from her piece that all ‘no votes’ are simply racist votes. The article doesn’t set up a crude division between broadmindedness and prejudice, a division which has been all too prevalent in the last few days of Brexit reportage.

Attention to whiteness by contrast opens up a space for a conversation not simply about where people situate themselves in arguments on immigration and multiculturalism. Attention to whiteness is one powerful way to destabilise some of the unhelpful and inevitably marginalising rhetoric we’ve been subject to. She asks instead ‘What does it mean that those who now are expressing ‘concern’ about a surge in xenophobia have previously had little to say about everyday and institutionalised racism and violence that people of colour experience?.’

I believe that, like race, class is imbricated in the referendum fall out. The EU is above all a set of institutions which regulate the nature, rhythms and movements of workers’ bodies –  black and white bodies.

And yet different people’s experiences of this regulation will inevitably be diverse and divisive. Another reason why the analysis has to be nuanced; to allow those experiences and grievances – which are not the same for us all – to be validated. Those disenfranchised on low wages and, or those marginalised by the not so subtle codings of racism must be heard and understood with respect to complex social relations, not pitted against one another in a story of heroes and villains.

What initially concerned me about the early referendum reportage is the way it has played out like a game of top trumps: who is the biggest felon or the most put upon victim group – and who has the most legitimate grievance? Are the (mostly white) residents of Seaburn in Sunderland working class heroes who have simply had enough of austerity or are they hatemongering proto-nationalists? And too much coverage talks in terms of ‘they’ when, as I see it, the publics are not clearly interpellated by the poorly orchestrated debate.

Of course I am not so naïve as to think that at least some of the public discussion wont cause conflict or be hateful or racist. And I am one of the last to romanticise the ‘working classes’.  Surely there is a class and race geography to the voting, but it is far from clear-cut.

I also know that there wont be one truth to explain what has happened or a single social movement to coalesce around going forward, but trying to make sense of this confusing and divided time seems important.

Another so-called split I haven’t yet started to get to grips with to is the apparent division between the ‘younger’ and the ‘older’ voters – with disproportionate older voters seeking  Brexit and many younger ones favouring the current arrangements. In a climate of pension crises, youth unemployment, onsies and adult colouring books what does this mean I wonder?

But I guess what I am left really pondering is whether there is a way to acknowledge the fear and bad feeling caused by the apparent shock result while also thinking about what an alternative kinder and more open politics could look like? One that acknowledges how unhappy some folk are about the status quo , but that doesn’t white wash a history of colonialism and marginalisation ? I do hope so. And I hope too that any emerging solidarity first gives room for the expression of manifold, conflicting and complex feelings of those celebrating the result or grieving this separation.


 

Liza Griffin is a lecturer in political ecology and director of studies at DPU

Industrial development and business-civic leadership in Nigeria

By Naji P Makarem, on 5 July 2016

Why is unemployment and poverty rising in Nigeria, despite over a decade of robust economic growth? According to new research from, Naji P. Makarem, the organized private sector (OPS) has the opportunity to leverage its clout and political influence for urban governance. To do so however, it must strengthen its urban organizational capacity and shift its political attention beyond pure-efficiency to broader conceptions of functional urban agglomerations. A failure to do so risks locking Nigeria into a ‘low-productivity trap’, long after it has overcome its chronic ‘efficiency-crisis’.

 

Since its independence in 1960 Nigeria has been struggling to industrialize and diversify its economy away from low-productivity agricultural employment and dependence on Oil & Gas export revenues.  It has adopted numerous government strategies from import substitution to market liberalization; yet the economy continues to be highly dependent on oil reserves and imports of food and consumer goods from abroad.

 

It is estimated that 70% of households are currently living on less than $2 a day and a similar proportion is employed in the informal economy. Impressive GDP growth and considerable diversification into new sectors such as ICT, Real Estate and Professional, Scientific and Technical services over the past decade have failed to translate into sufficient employment generation, with unemployment rising significantly over the period to well above 20 percent according to government figures.

 

Figure 3 Unemployment in Nigeria, 1999-2010 Source: NBS data.

Figure 3 Unemployment in Nigeria, 1999-2010
Source: NBS data.

 

Jobless growth over the past decade can be attributed to two aspects of Nigeria’s industrial structure: About a third of the growth in output since 1990 has been driven by Oil & Gas, ICT and Real Estate, which together employ a mere 1.4% of formal sector workers. These are highly productive sectors with considerable impact on employment within the cities where they are concentrated, such as Lagos, but they do not generate sufficient employment to absorb Nigeria’s growing labour market.

 

Figure 6 Contribution to Real GDP Growth 1990-2010 Source: Authors’ calculations using NBS data

Figure 6 Contribution to Real GDP Growth 1990-2010
Source: Authors’ calculations using NBS data

 

On the other hand, manufacturing, which suffers from low productivity even compared to countries within the same development club, such as Kenya, India and South Africa, has contributed a mere 5% to GDP growth since 1990. Today Nigerians import the vast majority of the products they consume. They also import the machinery and high value inputs of the few products which they do produce, such as foam, steel pipes and pharmaceutical products. If Nigerians produced more and imported less (or developed favourable terms of trade) more of the money going into tills and ending up in the pockets of investors, entrepreneurs and workers abroad could be going to Nigerian workers, investors, entrepreneurs and the government. Tradable industries in general, and the manufacturing sector in particular, offer Nigerians the opportunity of generating employment, income and public revenues, which are all necessary for poverty reduction.

 

Nigeria’s 55 year struggle to boost its tradable industry is hampered by the country’s chronic ‘low-efficiency’ trap. Consider the following thought experiment to illustrate: take a successful exporting firm in China and place it and its managers and employees in Nigeria. It would not operate anywhere near as efficiently. Here’s why: In Nigeria the same firm would struggle to find serviced industrial land, having to build or fix its own slip roads, dig its own bore hole to access water, build its own sewers system, run its operations on costly diesel generators and hope the land it acquired is not claimed by somebody else, it would have to contend with often negotiated and opaque duplicity of taxes, inconsistent government regulations, a user-unfriendly bureaucracy, competition from counterfeit products produced locally or that enter the market illegally through poorly regulated international borders, an unreliable judiciary, poor quality roads connecting cities across the country with multiple check-points for informal bribes, slow clearing of imported intermediate goods at ports, tariffs on imported inputs which are not locally available, the risk of arbitrary increases in import tariffs for dubious reasons, double-digit interest rates and precarious access to finance and foreign exchange (Although this month, June 2016, the government floated the exchange rate).

 

These dysfunctional aspects of the business climate are well known and well researched by the World Bank’s ‘Doing Business’ reports which in 2016 ranks Nigeria 169 out of 189 countries in terms of ease of doing business. They are substantiated by our 77 interviews with business and civic leaders in Lagos, Kano and Port Harcourt, as part of DPU research for a DFID-funded project called Urbanization Research Nigeria (URN).

 

Yet the dysfunctionality of Nigeria’s economic development context runs much deeper than these ‘efficiency-related’ aspects of its urban and national contexts. Economic development theory highlights agglomeration economies, the home market effect (local demand) and productivity drivers as engines of industrial development and productivity growth, the essential conditions for income growth and quality jobs. Efficiency, while extremely important especially in contexts of cost-based competition, is just one of many development drivers urban regions and countries produce, and which firms draw on to compete.

 

The question is how can Nigeria break out of its chronic ‘low-efficiency trap’? While conventional wisdom would point to the need for good governance, this is not very useful advice in and of its own (it’s too obvious). Our research takes a different approach. Drawing from economic sociology, we argue that business-civic leadership has the potential of influencing policy and governance. Moreover, the perceptions and world views of the business community and business civic leadership can shape the formal institutions that govern them (see Figure 1). So we investigate the degree to which the private sector in Nigeria is organized, and the scope of their political attention.

 

Source: Authors’ calculations using NBS data

Source: Authors’ calculations using NBS data

 

Our research found the Nigerian business community, from small to large firms across different industries, to be highly organized. The peak business association which has been gaining power and influence since independence is the Manufacturing Association of Nigeria – MAN. The political attention of the organized private sector (OPS) focuses almost exclusively on efficiency-related aspects of the business climate. However, they overlook aspects of the urban context related to agglomeration economies and non-efficiency related productivity drivers; both indispensable features of functional cities for people and businesses.

 

These overlooked urban features include access to affordable, secure and serviced housing which are essential for human capital development; public transport which is indispensable for worker access to work places; education and skills development which are essential for human capital development and innovation; public R&D in related industries to support knowledge creation; firm- and industry-level support strategies for facilitating coordination and knowledge sharing; public space and cultural amenities to enable interaction, identity formation and innovation; and initiatives designed to bridge fragmented communities and develop appropriate and widely shared perceptions and world views in pursuit of social capital.

A failure to focus political attention on investing in functional cities risks locking Nigeria into a ‘low-productivity trap’, long after it has overcome its chronic ‘efficiency-crisis’.

 

 

This is a Blog about a recently submitted URN report to DFID. It will be publicly disseminated soon.


Naji P. Makarem is co-director of the Msc. Urban Economic Development at the Bartlett School’s Development Planning Unit (DPU) at UCL, and a lecturer in Political Economy of Development.

 

How friendships and networks matter for urban economic development

By Naji P Makarem, on 23 June 2016

Why do some cities perform so much better than others? According to new research from, Naji P. Makarem, it’s not just down to their resources – both human and physical – but also how people and organisations interact and work together. In studying social relations in business communities, he finds that while San Francisco’s diverse and connected social structure has allowed the Bay Area to withstand new economic challenges, Los Angeles’ comparable regional network has not been able to maintain its connectivity, which has led to relatively poorer economic outcomes for the city. 

 

“If I’ve learned anything in the last seven years, it’s that ideas live

less in the minds of individuals than in the interaction of communities”

(Fred Turner, 2006-p.VII)

 

Economists attribute economic performance – growth in output, employment and wages – to initial factor endowments, such as educated workers, patented inventions, lucrative industries, good infrastructure, property rights and excellent public services. This makes sense to the extent that cities with higher levels of these factors are undoubtedly better equipped to grow their economies and incomes. But if we stop to think how these factor endowments produce economic growth and respond to technological, market and political shocks, challenges and opportunities, the picture becomes more complex, dynamic and social.

 

A closer look reveals the diversity of individual and organisational actors in economic development processes. Such a sociological perspective focusses on individuals and their ideas, knowledge, cultures, world views, interactions and social relations; firms and their practices, strategies, cultures, structures, technologies, capabilities, networks and social responsibility; financial institutions and their lending practices and risk strategies; formal institutions and their laws, regulations, policies, public services, bureaucracy, infrastructure investments, incentives and power relations; and civic organisations such as charities, community-benefit organizations, private foundations, unions and business associations.

 

A dynamic perspective reveals how individuals and organisations interact to combine and re-combine ideas, knowledge, capabilities, assets and resources into novel combinations in pursuit of lucrative opportunities. Such interaction and re-combination in response to market challenges and opportunities is enabled and constrained by two intrinsically-linked aspects of institutions: The social networks in which actors are embedded, and their formal and informal ‘rules of the game’. Entrepreneurship and investments in a region emerge from this interaction and re-combination in the face of challenges and opportunities, steering urban industrial structures down specific industrial pathways, with its consequent impact on employment, wages and public revenues.

 

In a new study, I focus on one of these two institutional aspects of urban economies: The structure of social relations in high-end business communities. The economic sociology literature investigates how entrepreneurial and innovative contexts are associated with more connected, diverse and central social structures. While this has been researched using network analysis techniques at the scale of sub-regional industrial clusters, entrepreneurial communities and small cities, it has never been tested at the scale of large metropolitan regions.

 

To fill this gap in the literature, directorate research was used as a proxy for the social structure of the business community in two large metropolitan regions, the Bay Area and Southern California, whose per capita incomes diverged significantly between 1980 and 2010 (Table 1). This case selection within the State of California to a great extent controls for differences in formal government institutions, broad-stroke cultural and linguistic attributes, climate and geographic location, infrastructure, amenities and distance from the technological frontier.

 

Table 1 – Per Capita Incomes in the LA and Bay Area CMSAs, 1980 and 2010

Picture1

Source: Author’s calculations using BRR data.

My analysis reveals that both networks were almost identical and highly connected back in 1982. Figure 1 below shows that the largest component (a fully connected network of nodes, whereby each node is linked to at least one other node) in both networks included over 50 percent of the 70 sampled firms.

 

Figure 1 – LA and SF networks of board interlocks, 1980.

Source: Author’s calculations using UCINET and NET-Draw.

Source: Author’s calculations using UCINET and NET-Draw.

 

Over the subsequent three decades of economic divergence however, their network structures also diverged. While the Bay Area’s maintained and even increased its level of connectivity, the LA region’s network fragmented by 2010, with a mere 20 percent of firms in its largest component (Figure 2).

 

Figure 2 – Percentage of sampled firms in largest component, by year, LA Vs SF

Source: Author‘s calculation, number of interlocked firms in each network‘s largest component as a percentage of all firms in the sample.

Source: Author‘s calculation, number of interlocked firms in each network‘s largest component as a percentage of all firms in the sample.

 

Figure 3 shows the two networks in 2010, clearly highlighting the connectivity in the Bay Area (SF) and the fragmentation in Southern California (LA).

 

Figure 3 – LA and SF networks of board interlock, 2010

Source: Author’s calculations using UCINET and NET-Draw.

Source: Author’s calculations using UCINET and NET-Draw.

 

Turning to the degree of diversity, the two networks were found to be equally diverse in 1982, however by 2010 while the Bay Area network had maintained its high level of diversity, LA’s had declined substantially, despite having more industries represented in its 2010 network. While the Bay Area’s high-end corporate social structure maintained its high level of connectivity and diversity over the three decades of economic divergence, LA’s became less connected and less diverse.

 

The analysis of centrality of business-civic associations, whose role it is to represent the needs of the business community, is equally revealing. The results on a broadened network (which included the 50 largest Private Foundations in each region) shows the Bay Area Council in the Bay Area to be the most central organization in the network, with an nBetweeness score of 18 percent (i.e. The Bay Area Council lies on 18 percent of the shortest paths between all node pairs in the largest component). This is three times greater than the LA Chamber of Commerce, the most central business-civic organisation in the LA network with an nBetweeness score of 5.86 percent. The Bay Area Council arguably plays the role of an ‘anchor tenant’ within the region’s industrial social structure, connecting business leaders across industrial categories. No comparable business-civic organisation exists in LA.

 

The Bay Area’s connected and diverse social structure withstood the tumultuous challenges brought about by the New Economy, and successfully combined and re-combined its ideas, knowledge, capabilities, assets and resources in response to these challenges and opportunities. It successfully produced new firms and technologies that carved new industrial pathways in IT, biotechnology and supporting services such as venture capital and specialized legal services. The interactions behind such productive recombination were embedded in a connected, diverse and central high-end corporate social structure. LA’s comparable regional network on the other hand was unable to maintain its connectivity and diversity, and failed to productively combine and re-combine regional endowments in the face of a rapidly changing economic reality.

 

While my study sheds light on the network dimension of regional business institutions, our co-authored book investigates perceptions and world views of various public, private and civic actors, revealing further notable differences. Policy makers and business and civic leaders may draw from this research by focusing attention on the social architecture behind their industrial structures. Business-civic associations in particular may play a central role in bringing influential business leaders from across industries to interact and think about their regional economies and their collective challenges and opportunities.

 

This article is based on the paper, ‘Social networks and regional economic development: the Los Angeles and Bay Area metropolitan regions, 1980–2010’ in Environment and Planning C Government and Policy.

Disclaimer: This blog was also posted in USAPP (An LSE Blog)


 

Naji P. Makarem is co-director of the Msc. Urban Economic Development at the Bartlett School’s Development Planning Unit (DPU) at UCL, and a lecturer in Political Economy of Development.

Citywide upgrading strategies in Phnom Penh, Cambodia: three years of engagement

By Giovanna Astolfo, on 23 May 2016

In a famous picture of Phnom Penh in 1979, two children stand in the foreground looking steadily at the camera, while behind them the city, once the ‘pearl of Asia’, is nothing but a desolated and spectral bunch of abandoned buildings. The urban history of the capital of Cambodia is demarcated by iterative evacuations and expulsions of its population. Although there is no agreement on numbers and scale of the phenomenon, the first evacuation took place in Phnom Penh during the Pol Pot regime. The vast majority of the urban population was forcibly deported to the countryside, in order to fulfil the utopia of a rural Kampuchea and a classless agrarian society; while public buildings, cultural and institutional symbols, were emptied, abandoned and eventually destroyed in what can be referred to as urbicide, an act of extreme violence towards the city and what it represents for its people.

At the end of the war, people returned to Phnom Penh. As refugees in their own city, they occupied abandoned buildings or settled in unregulated land. When, two decades later, Cambodia opened to the global market, and new foreign investments flew into the city, that land became attractive to the appetite of new developers. As a consequence, entire communities were brutally evicted and forcibly moved to peripheral areas. Relocations took place from the 90s to ‐ officially ‐ the early 2010s. Over this period, with more than 50 relocation sites around Phnom Penh, the relocation process has become the main way to produce the city.

Today, urban planning is still not high in the national agenda (there is a city strategy plan which level of implementation is hard to grasp and local investment plans which consider private development only), while the housing policy (released in 2014) is poorly articulated and not yet implemented. Although a social housing policy (programme) for low income people is under study, the housing needs of the poor are not addressed. In general terms, local government is not much interfering in the land market; such a laissez faire approach is favouring private-sector development, with no alternative for the poor. As the land on the market is not accessible to them, poor communities keep occupying public or private interstitial land along canals and unused infrastructure, mostly vulnerable and prone to flooding, while gated communities and satellite cities are growing in number. Given that 50% of the urban population are below the poverty line, who can afford these houses? Gated communities are probably aimed at a middle class that still does not exists or better to foreigners and officials that are part of a highly corrupted political system.

Looking inward: challenges at site level. Smor San community, Chbar Ampov district, Phnom Penh, settled since the 1970s on a graveyard. Pictures by Catalina Ortiz.

Looking inward: challenges at site level. Smor San community, Chbar Ampov district, Phnom Penh, settled since the 1970s on a graveyard. Pictures by Catalina Ortiz.

Most of the sites selected for the MSc BUDD fieldtrip – taking place in Phnom Penh for the third consecutive year – reveal aspects and nuances of these urban processes. Particularly, Pong Ro Senchey and Steung Kombot communities are informal settlements on narrow strips of public land stretched between private properties waiting for redevelopment; while Smor San settlement is located on a graveyard. By learning from the unique approach of our partners, Asian Coalition for Housing Rights (ACHR), Community Architects Cambodia (CAN-CAM), and Community Development Foundation (CDF), and from the people in each community, BUDD students, divided into three groups and joined by local students of architecture and urbanism, by UN intern and representative of the housing department, worked for five days in the three sites. Five days of emotionally intense engagement with the people and the context, trying to identify needs and aspirations, while unpacking the complex power relations within the government, digging into the legal and normative frameworks to understand how to ‘break the vertical’ and to disclose the potential for change.

After working with the communities to develop site upgrading strategies, the students were asked to produce an ulterior effort, that of looking across the different sites (and for this purpose the original groups have been reshuffled into new groups each one including at least two members from each site group) to address what we call ‘citywide upgrading’. This is a difficult and ambitious task, as it encompasses the multidimensionality of urban issues at the political, social, spatial and economic levels. Particularly, it calls for a multi-scalar reasoning and strategising that takes into consideration the community singularity and agency as well as the national policy framework in which community action needs to be framed. The scaling up of site upgrading strategies does not happen in a merely quantitative manner (i.e. iteration of a similar strategy), but rather considering the city as a wider community, where spatial proximity is replaced by shared practices and interests. Citywide upgrading is at the core of the BUDD pedagogy, and although this is not a new theory, BUDD students are currently contributing to its redefinition as a development theory for the poor, deeply embedded into the practice of ACHR and CAN.

Engaging the community to identify priorities for upgrading in Steung Kombot, Russey Keo district. Pictures by Giorgio Talocci

Engaging the community to identify priorities for upgrading in Steung Kombot, Russey Keo district. Pictures by Giorgio Talocci

Amongst the principles for citywide upgrading, three seem to be crucial.

First, to include the urban poor in the ongoing development. While Phnom Penh is witnessing fast urbanisation and growth, poor people are still uninscribed in such growth. How to capture and redistribute the profits and benefits? How to dismantle the hierarchical system that is at the basis of unequal development?

Secondly, to question the regulatory role of state authority. Although the government is merely indulging in highly corrupted laissez faire, legal and policy frameworks exist (for instance, art. 5 of the housing policy includes onsite upgrading). The question is how to implement them? How to monitor the implementation through accountable mechanisms?

Third, to address the aid dependency and foster self determination of the communities. This stems from the acknowledgement of existing potential: the people knowledge, skills, technology and capital. How to achieve political recognition? How to increase the visibility of people processes?

 

BUDD and Khmer students @work learning from each other. Pictures by Giorgio Talocci/Giovanna Astolfo

BUDD and Khmer students @work learning from each other. Pictures by Giorgio Talocci/Giovanna Astolfo

The above questions have been addressed through small, short or long term, concrete actions such as: environmental upgrading particularly related to flooding risk (households repeatedly affected by seasonal flooding or flooding related to climate change and land development, can access to new grants for upgrading); online knowledge platforms (as people are increasingly connected, online platforms can ensure easy and fast access to knowledge, and data collection and sharing; such platforms can be accessible also to NGOs and local authority); network upgrading fund (as private development is happening, social responsibility can be strengthen, for instance through new funding schemes sourced from the private sector and led by people); social ombudsman (in order to ensure the inclusion of the community as well as the transparency of the decision making process, the implementation of policy and scrutiny of the process).

As in the previous two years, strategies have been publicly presented by students and representatives of the communities, serving as a platform to advocate ‘the cause’ with national and local authorities. As political recognition remains one of the main challenges that the communities in Phnom Penh face, after three years of engagement, the ‘cumulative impacts’ of the work developed by BUDD with local partners has inspired a young and strong generation of architects equipped to take up the challenge of a more just future for our cities

Presentations to the local authorities in Khan (district of) Por Senchey and Russey Keo. Pictures by Giorgio Talocci/Giovanna Astolfo

Presentations to the local authorities in Khan (district of) Por Senchey and Russey Keo. Pictures by Giorgio Talocci/Giovanna Astolfo

 


Giovanna Astolfo is a teaching fellow at the MSc Building and Urban Design for Development, she recently joined students on overseas fieldwork in Cambodia. This is the third year that the MSc BUDD has visited Cambodia, continuing a collaboration with the Asian Coalition for Housing Rights and Community Architects Network Cambodia

If Habitat III wants to uphold the right to housing, it needs to address financialization

By ucfurli, on 11 May 2016

At the start of April, a number of civil society groups, members of NGOs and activists from across Europe met in Barcelona for the European meeting of the Global Platform for the Right to the City. This was in part to complement the Habitat III meeting on Public Space that was to take place later that week. Habitat III will be the third installment of the UN conference on human settlements, held every 20 years. At this Global Platform meeting in Barcelona, priorities relating to the ‘Right to the City’ in Europe and strategic aims for Habitat III, to take place in Quito this October, were discussed.

Global Platform for the Right to the City meeting in Barcelona

Global Platform of the Right to the City meeting in Barcelona

One of the main issues that emerged in the Global Platform meeting was the financialization of real estate. Financialization can be defined as a “pattern of accumulation in which profit-making occurs increasingly through financial channels rather than through trade and commodity production” (Aalbers 2009, p. 284). The financialization of housing refers specifically to the linking of housing markets with finance markets, where housing is viewed primarily as a financial good. This is what allows banks to speculate on land and housing, which causes house prices to rise far beyond what most people can afford. The linking of mortgages with financial products, especially in the United States, was a central factor in the 2008 economic crisis that had catastrophic effects across the globe.

In a working group on the topic, participants exchanged experiences of how financialization has manifested in their respective countries. A member of the Plataforma de Afectados por la Hipoteca (Platform for people affected by mortgages) in Barcelona summarized the particularly dire situation in Spain, where over 400,000 evictions have taken place since 2008. While each European country has its own unique context, many common themes emerged, such as speculation, inflated housing prices, empty homes, the selling off of social housing, and an increase in evictions and displacement. These phenomena were linked to a systematic eroding of regulations that have allowed the financial sector to exploit housing for profit.

An open letter to the Habitat III Secretariat signed by members of the Global Platform points to the connection between the 2008 financial crisis and its context of housing financialization, a topic which it says is strikingly absent from Habitat III documents thus far. The letter asserts that land and housing must be treated as goods for people and not for profit. In this vein, the signatories call for a new Habitat III policy unit to be set up that focuses on the global financialization of real estate, to provide recommendations for the social and political regulation of real estate markets and actors.

But at the moment, as the letter states, Habitat III documents do not seem to be dealing with the issue. The Policy Paper on Housing Policies, an official input into Habitat III, states that “Housing stands at the center of the New Urban Agenda”. It re-affirms UN Member states’ commitment to the right to housing, which it says must be adequate and affordable, with security of tenure. Yet in the 74 pages of the document, financialization is not once mentioned. In a section on affordable housing, there is reference to the financial crisis, and to the increase in mortgage debt and repossession of homes, especially in Europe (p.10). The global estimate that 330 million households are currently financially stretched by housing costs is also provided. But this section concludes with “Nearly half of the housing deficit in urban areas is attributable to the high cost of homes, and to the lack of access to financing” (p. 10).

In this sense, rising house prices are presented as a natural and uncontestable process, with the core problem simply being that many people do not have access to housing finance. There is no questioning of why house prices are allowed to rise at such a rate in the first place, nor is there acknowledgement of the role of the financial sector in inflating real estate values. The report mentions how vulnerable groups are traditionally excluded from home ownership and rental markets, implying that the solution to the housing deficit is to get more people in on this market. (The paper seems to ignore the phenomenon of sub-prime or predatory lending integral to the 2008 crisis, where vulnerable groups were not excluded, but explicitly targeted for mortgage loans.) Overall, the focus is on the individual requirements needed to access housing, and not on structural factors and the institutions responsible for shaping access to housing.

Given the very limited diagnosis analysis of the situation, the paper’s proposed policy solutions largely miss the point. The report states that to “To provide affordable housing, the private sector requires incentives (adequate capital and financial returns) and an enabling environment (development process and public policy)” (pp. 22-23). In other words, the financial institutions and private developers who are largely responsible for the massive housing crisis do not need to re-examine any of their practices; rather, the public needs to provide incentives for them to build “affordable” housing because the relentless profit motive of private developers and financial institutions cannot be challenged. In addition, the public sector must provide an “enabling environment” for the private sector to do its work, as if it has not already been doing so by implementing neoliberal policies to slash regulation of lending and speculation.

To address the assumed core problem of people with limited or no access to credit for housing, the policy paper states “housing finance and microfinance should be integrated into the broader financial system in order to mobilize more resources, both domestically and internationally”(p. 21). This statement ignores the extent to which housing finance has already been integrated into the financial system, and what disastrous effects this has had. If anything, the paper seems to be suggesting an increase in financialization, rather than a re-thinking of this phenomenon that has been a major factor in the housing deficit.

The housing paper does mention that policies are needed to reduce property speculation and even mentions the “social regulation of real estate”, and that these can be strengthened if “municipalities adopt inclusive housing ordinances and appropriate property taxation policies” (p. 17). This is a start, but it is not enough for a global urban agenda. The details of these policy proposals are not explored in any meaningful way in the current policy paper, nor are they linked to address the current embedding of real estate within the financial sector. Furthermore, this is not just a local problem for municipalities to deal with; both national and international institutions hold responsibility for our current situation, and need to be targeted as entry points for intervention.

There are many forms of regulation that would at the very least be a step in the right direction in terms of housing affordability. But we need to address the now assumed linkage between real estate and the financial sector if we want to get to the root of the problem. For a conference aiming to come up with a “new urban agenda”, and that has previously agreed on such rights such as the right to adequate housing, the issue of financialization, which has put housing that much more out of reach for millions of people, needs to be addressed at Habitat III.

References:

Aalbers, M. B. (2009) “The sociology and geography of mortgage markets: Reflections on the financial crisis”, International Journal of Urban and Regional Research, 33(2), 281–290.

Habitat III Policy Paper 10 – Housing Policies, 29 February 2016, available at: https://www.habitat3.org/bitcache/3fa49d554e10b9ea6391b6e3980d2a32ce979ce9?vid=572979&disposition=inline&op=view

Possible tags: Habitat III, Financialization, Housing policy, Right to the City, Right to Adequate Housing, Barcelona, Europe


 

Rafaella Lima is an alumna of the the DPU and currently works as a graduate teaching assistant for the MSc Urban Development Planning. She has been involved in research looking at civil society engagement with Habitat III processes in various countries.

Power and Politics: A reflection on political settlement

By Michael Walls, on 11 April 2016

To many – perhaps more today than in some generations past – ‘politics’ is a dirty word. Yet the political permeates our social lives on the most personal of levels as well as more generally. And the twin sibling of politics is power; specifically it’s exercise and pursuit. Perhaps the thing that most upsets many of us about ‘politics’ is what we perceive as the naked or covert use of power for personal betterment. But there’s a complication there. As much as we tend to presume that unbalanced power is a bad thing, the reality is that the stability of human societies through history and around the globe rests on just such imbalances. And personal interest occupies an uneasy yet always central motivator in the exercise of that power. In some ways, it is hard to even conceive of power in terms other than in some unbalanced sense. After all, if one person possesses the ability to compel someone else to do something, then that represents an imbalance in itself. There’d be no compulsion if the person compelled didn’t accept the authority of the other. Which highlights the difficult balance we need to try and find as human societies if we are to balance some sense of social justice with the sort of systemic efficacy we must aspire to if our states are to be run with reasonable efficiency.

Political leaders sign an agreement on voter registration, Hargeisa

Political leaders sign an agreement on voter registration, Hargeisa

The idea of the ‘political settlement’ that lies behind this project encourages examination of the nature of those balances in the political realm.

But we can also think of power in different ways. The sense of power as an imbalance in which one person can compel another, which I’ve just described, is what Andrea Cornwall and John Gaventa called ‘power over’. But we also sometimes think of power in different terms. For example, the power to do something is usually more about the capacity we have to act, and we sometimes also talk about ‘inner’ strength; the power we gain from within ourselves. Not quite the same as the capacity to do something because it refers more to strength of character or resolve, but that can connect with capacity as well. There is also a sense of power that labour unions, amongst others, have often used: the power of unity or solidarity. The power we gain by working together with others of like mind.

Focus group meeting in Laas Aanood

Focus group meeting in Laas Aanood

The ‘Political Settlement in Somaliland‘ research project is designed to dig deeper into some of the attitudes that women and men have to each other’s political engagement, and to find out more about how those attitudes are reflected in the ‘political settlement’ that underpins what has become an enduring peace in Somaliland. In so doing, we will be thinking hard about how different kinds of power are exercised by women and men in Somaliland: both in the negotiations, debates and decisions that form the political settlement, and in the actions people take or have taken in an effort to influence those decisions.

It is axiomatic that one of the most persistently asymmetrical balances of power is where it relates to the roles of men and women in a society. A growing body of research has focused on Somali state-building, and particularly on Somaliland, and there have been a number of studies on gender roles in that context. We are aiming to explore the ideas at the intersection of those concerns by trying to understand more about the assumptions and positions that shape social relations for men and women. That links strongly to a number of specific areas, including violence against women and girls, which seems to have worsened even while stability has been consolidated.

We are still in the relatively early days of the research, and are currently collecting primary data. There’ll be numerous updates of one sort or another. Keep an eye on the research microsite for new material.

drawing water for camels from a well, Sanaag

Drawing water for camels from a well, Sanaag


Dr. Michael Walls is a Senior Lecturer at UCL’s Development Planning Unit (DPU) and Course Director for the MSc in Development Administration and Planning. He has twelve years’ experience in senior management in the private sector and lectures in ‘market-led approaches to development’. For some thirteen years he has focused on the Somali Horn of Africa, and most particularly on the evolving political settlements in Somaliland and Puntland. He is currently leading a research project focused on developing a gendered perspective on Somaliland’s political settlement. As well as undertaking research on state formation and political representation, he has been a part of the coordination team for international election observations to Somaliland elections in 2005, 2010 and 2012 and is currently observing the 2016 Voter Registration process. 

From theory to practice: Real life social policy for development

By ucfummh, on 19 February 2016

When I was undergoing my masters degree in Social Development Practice at the DPU, I was consistently amazed by the insight that development gurus provided when discussing and critiquing the design of public policy for development. As a student, reading about government policy was comfortable because you could deconstruct, isolate variables and analyze government performance by focusing on issues regarding diversity, identity, and the importance of planned intervention. We usually come to the easy conclusion that it is (sometimes) inefficient, separated from the reality of those in poverty, swamped with bureaucratic nonsense and overall unable to perform correctly. However, we usually look at this from a distance and perhaps we lack insight into how public policy is designed and the complexities of its execution.

 

In January I joined the national Ministry for Social Development in Mexico City, as a senior advisor for the under secretary. This is by far the most challenging professional opportunity I´ve had and is one that requires lots of work, dedication and most importantly, patience. Why? Because there are many things to be considered before any work is actually done. It’s attempting to reach the most people in poverty, with the most cost-efficient programmes, whilst balancing a complex political agenda….AND at the same time, attempting to put into practice all the knowledge gained from other development experiences and from my brand new masters award. It sounds tricky right? Well, it is.

IMG_6858

So far, this is what I have learned.

Lesson one: In Mexico, public social policy is understood as the norms, institutions, programs and resources that are designed to improve livelihoods. It is meant to be a tool for the promotion and protection of basic social rights, but in reality it translates into each government undertaking a set of compromises that match the current political agenda.

There is a long-term national development effort that can be traced all the way back to the 1910 Revolution and to the recognition of social rights in the Constitution of 1917. For years, the social agenda has been woven into the very fabric of government institutions in this country, but it is constantly changing, shifting priorities and strategies depending on the political arrangement. The implications of this are that once a particular government ends, a new administration starts all over again. New priorities, new strategies. There is no continuity in this “long-term development effort” except for a few successful exceptions which are worth mentioning on a different entry.

Lesson two; “Cost-efficient and viable programmes that reach the most people living under the poverty line”… Cost-effective is not a sexy concept in the world of social development. We analyze and deconstruct loads of other more profound concepts, like power dynamics or citizenship. In practice however, while all of these profound concepts are essential, cost-efficiency becomes a priority to public policy. I learned this recently when I had to define with a group of experts where to open 200 community dinners for women and children that lack access to nutritious food. So I work for hours putting together all the social variables that ought to be considered, from the figure of mothers as caregivers and how that ought to change and include other roles, to the complexity of food chains and power relations. I sit down to discuss this strategy and the main issue is, where can we reach the most people with the most cost-effective operation. No need to say more.

Lesson three; in a public institution, everything is urgent, it needs to be done as soon as possible. So when cost-effectiveness meets viability, then that´s it. The policy gets designed and it operates under those two principles. More profound, long term considerations are harder to incorporate, not because they are considered less important, but because there is a utilitarian formula at place. Reach the most people, other aspects will eventually be introduced. I learned this whilst performing an evaluation of a Woman’s Centre in one of the poorest areas in the country. I had exactly 4 hours to conduct an evaluation of the social impact of this place and report back. My evaluation would determine important things at a higher level. 4 hours. Is it cost-effective, is it reaching the targeted population, is it viable to keep? Of course I had a file with a vast number of considerations that I learned in the Practice module of my Masters degree, but only got to use very few of them.

Lesson four; however difficult it its to incorporate the knowledge from my previous experiences and from my master degree, I recognise the privileged position I´m in. To work in these issues is to be able to impact thousands of people who live in the most poverty stricken areas in the country. What a great responsibility right? So this is why I started my entry by saying patience is the most important lesson. By having patience I will hopefully learn how to play this game, how to match the political agenda with the life agenda of those we work with, not for. How to match what is cost-effective with what is profound and sustainable. Of course, having been in this job for less than two months, any ideas and suggestions on how to do this would be greatly appreciated!

Evolving Cuba. The Need for a Planned Transition.

By ucfuamd, on 31 December 2015

It was the end of November. Only four days had passed since I went back to Mexico after finishing my studies at the DPU. I found myself in Havana, enjoying the outdoors without having to wear a coat. I was excited because I had been invited to present the main topic of my MSc dissertation in a local Congress organised by the Ministry of Construction (MICONS) targeted to 160 public servants, representing the country’s main “territories”.

Martí pointing at the US Embassy in Havana

Martí pointing at the US Embassy in Havana

I was proud to be portrayed as one of the four key speakers at the Congress among three members of the Havana University Faculty. My research topic was about the need to regulate infrastructure services to find a balance between a free-market economy and a communist system. The objective was to explore the need for direct regulation in order to redefine social justice “beyond a distributive understanding”, and expand “people’s capabilities”. All this is contextualised in the recent changes in Cuba, which will encourage greater governmental transparency and economic openness to global investors. The main topic of my lecture was to explain the importance of having available data and information to be able to address people’s main concerns and include their perspective in government policies. I used the same case study as I did in my dissertation: a mobility strategy for Havana. Little did I know that my conference was going to be the only lecture related to infrastructure. I was taken by surprise when I realised that the rest of the conferences were devoted to the Internet.

Fidel talking about the importance of the internet

Fidel talking about the importance of the internet

Inside the rooms of the Palacio de las Convenciones, most of the speakers explained the main uses of the Internet and the convenience of integrating new software and mobile devices to be more productive at work. At first, their explanations were as basic as describing the main uses of Twitter and Facebook to the audience. My first impression was that it was all part of an agenda to insert a specific vision into the public servants; and in a way, it was. However, I started to pay attention to what the professors were really saying and the reactions from the audience and that is when I realised there was so much more. At one point, one female professor explained, “Humans created the Internet to expand their reality, the same way as Plato’s Theory of Ideas”. The audience then made affirmation noises as if everything was now crystal clear and needed no further explanation. I was thankful for my philosophy modules at University. Another professor made it clear that if they “did not tell their story to the world, the only version the people could learn was the one written by the other side”. Hence highlighting the urge to become active users of the web.

I slowly became aware of what was happening in this conference, the country was preparing selected public servants for a transition. A big one! To do so, they are executing a very clever strategy: they are not only taking into consideration the big changes they need to improve their urban mobility or to re-open Mariel, their biggest trading port. They are also taking a step back and considering all the other basic tools they need to succeed when these changes happen. This means introducing themselves to new technologies, software and the biggest modern tool of all, the Internet. It is an integral and multidimensional strategy for Cuba to take over the world instead of fearing the world will take over the island, and I think it is an interesting way to do it.

The venue.

The venue.

After the Congress finished, I went to the Havana University campus in Marianao, just outside Havana to meet an Architecture professor. Having in mind the described events, I felt confident about what was going to come out of this final meeting. I was not disappointed in that aspect. However, the cruelty of the country’s reality hit me when I got there. The Architecture faculty building was decayed, grey, and partially destroyed. As we climbed the stairs to the eighth floor, we had to dodge debris, rods and the risk of falling into the void as the cardboard that served as a wall on one side of the stairs explicitly announced. The professor explained to us that there were over 500 students in that building and that many students were not able to attend due to lack of means of transportation to what he refered to as “the remote” campus, situated 15 km from the City Centre.

The University

The University

After four days I went back to Mexico feeling exhausted, confused and at the same time extremely grateful to have played a part in this transition. I see a country excited with the prospect of change and new hope, built on national proudness of what they have been achieved and the plans they have sketched for the future. Changes are everywhere in this island, so hopefully with the right urban planning policies, cubans will be on the road to success in no time. I cannot wait to see what happens next.


Ana Maria de la Parra Rovelo has an MSc in Social Development Practice from The Bartlett Development Planning Unit. She has specialised inn social impact and infrastructure, especially on projects related to roads. Last June she launched the International Road Federation Young Professionals Programme where members from all over the world collaborate in joint academic research on topics related to mobility and roads. Ana Maria is now based in Mexico City where she is helping with the launch of The Bartlett Built Environment Club – Mexico City, while she works on projects in Cuba and Mexico.