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Industrial development and business-civic leadership in Nigeria

Naji P Makarem5 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

Naji P Makarem23 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

ucfuast23 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

ucfurli11 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

Michael Walls11 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

ucfummh19 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.

ucfuamd31 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.

Business-civic leadership’s urban social responsibility

Naji P Makarem29 October 2015

Mainstream economics attributes economic performance to factor endowments; the characteristics of a national or regional economy expected to impact future output growth and wages. These can be understood as Lego pieces of various colours and shapes needed to produce lucrative products and services. According to this view of the world, the Lego set endowed to cities determines economic performance: Yellow blocks of human capital might be limited to lower educated two-pronged blocks in one region, and higher-educated 5-pronged blocks in another (usually proxied as educational attainment), can explain past or determine future growth and incomes. Factor endowments typically used in growth regressions include population size, the cost of housing, ethnic composition, the industrial structure (often proxied by the share of manufacturing and FIRE industries – Finance, Insurance & Real-estate), innovation (often proxied by patents per capita) and of course educational attainment. Carefully designed econometric models can explain and predict economic outcomes fairly well, given initial factor endowments. They only do so however ‘on average’, evident by persistently high residuals and numerous outliers.

Picture taken by Naji P. Makarem in Los Angeles

Picture taken by Naji P. Makarem in Los Angeles

There are two problems with this approach: First, regions and countries can change the composition of their Lego sets through unpredictable governance mechanisms that create characteristics which the market fails to create, such as by investing in education, infrastructure, changing migration policies and zoning laws. Second, there are much smaller Lego pieces excluded from the analysis, in the form of people, ideas, assets, experience, organisations and capabilities, which can be combined and recombined in a multitude of different ways. The industrial structure of two regions with seemingly comparable initial factor endowments at a given time can evolve and branch out into very different activities, despite initially comparable Lego sets. Their systems of governance can focus on different issues and tackle challenges very differently (as institutional economists and political scientists would argue), and they can combine and recombine smaller Lego pieces in very different ways. Both of these important dynamics are exogenous to econometric models, thus persistently large residuals and outliers in growth regressions.

 

Our in-depth historical case studies of the San Francisco and Los Angeles regions expose the limitations of the growth accounting and other mainstream economic approaches to explaining economic development. We found that given two seemingly very similar Lego sets back in 1970, and you might be surprised by the incredible similarity on so many fronts, the two regions developed their so-called factor endowments and combined their people, ideas, assets organizations and capabilities very differently: The ability of their regional governance systems to respond to major regional challenges and opportunities, through cross-jurisdictional coordination, diverged significantly around 1950; the perceptions and world-views of their business and political leadership vis-à-vis their regional economy and its role in a globalizing world with serious environmental challenges differed starkly since at least as far back as the 1980s; differences in their corporate practices with regards to attitudes towards failure, entrepreneurship, spin-offs and out-sourcing were starkly different; their civil movements organized and responded very differently to social and environmental concerns throughout the 1900s; and their high-end corporate social structures diverged significantly between 1980 and 2010.

Picture taken by Naji P. Makarem in Los Angeles

Picture taken by Naji P. Makarem in Los Angeles

The Bay Area’s social, relational and political contexts created fertile-ground, as our co-author Taner Osman would put it, for break-through technological innovations, start-ups, spin-offs and initiatives by robust actors to flourish. We show that even though these were abundantly planted in both regions, they had greater regional spillovers in the Bay Area, giving rise to an eco-system of world-leading firms and clusters. In LA however comparable events had negligent spillovers beyond the boundaries of large and highly successful vertically-integrated corporations, or the confines of the Hollywood entertainment complex. The culture and relational structure of the San Francisco region, evident in its long civic and political history and in its recent high-end corporate social structure, allowed the region to develop its Lego pieces and to combine and re-combine its smaller Lego blocks in response to economic, technological and environmental challenges and opportunities. Through this recombinatory process the industrial structure developed new innovative firms, products and services in response to the changing economic reality, carving new lucrative industrial pathways for innovators, investors and entrepreneurs. It is through this process that the industrial structure of the Bay Area evolved, branching out into new unchartered and highly lucrative industrial terrains, producing tremendous high-waged employment in the region. As a result, the Bay Area ‘won’ the New Economy, whereas the LA region missed it, for now. This has had important implications to social mobility, personal incomes and public expenditures in the two regions.

 

Back in 1970 a person with a job in LA would have earned a very similar wage to his or her comparable counterpart in the Bay Area (same level of education, recent immigrants or not, and in the same industry and occupation); today there is a staggering difference in their wages across all these comparable groups, with the average person in LA earning 30% less than in the Bay Area. And this was achieved with comparable levels of population growth, openness to immigration and levels of inequality. The Bay Area produced its Lego blocks and combined and recombined its smaller blocks better in response to the challenges and opportunities brought about by technological change, globalization and the emergent New Economy.

 

How does all this apply to developing countries and cities? I propose the following transposition of ideas and insights from our study of the Bay Area and Los Angeles: Business-civic leadership can play an important role in both shaping the perceptions and world views of the broader business community (employees, entrepreneurs and investors), and in mobilizing public and private resources in response to economic challenges and opportunities. Their world views can either be narrow and conservative in nature, focusing on cutting costs by weakening labour rights, reducing taxes and diminishing social and environmental regulations, fearfully perceiving technological change and globalization as a threat, or they can be progressive, perceiving technological change, social and environmental regulation and globalization as an opportunity. Moreover, their regional perspectives can either be narrow in nature, focusing their attention on aspects of their cities that directly impact their business operations, such as access to land, services, connective infrastructure and red-tape, all very important albeit partial aspects of a functional business climate, or broader in nature, incorporating the entire urban system in which they operate, recognizing and valuing the potential gains from a functional agglomeration.

Picture taken by Naji P. Makarem in Los Angeles

Picture taken by Naji P. Makarem in Los Angeles

A functional agglomeration generates agglomeration economies which are the advantages firms and people gain from propinquity. These are namely the advantages of sharing infrastructure costs, the convenience and efficiency of geographically proximate suppliers and customers, the matching of jobs with specific skills and therefore the probability of finding the right job, and the learning from social interaction and people moving between firms. That is the economic rationale behind current high rates of urbanization – cities essentially reduce the transactions costs of all these activities. Business communities with strong and broad regional identities recognize and value the whole breadth of agglomeration economies which the city offers them, and the potential for unlocking its full agglomeration potential.

 

Progressive business leaders are aware of their interdependence with the region, and therefore they have a broad perspective of the business climate, which includes secure tenancies and the cost of housing, the quality and accessibility of education, congestion and accessible public transport, access to quality healthcare, sanitation, education and social safety nets for all citizens. Together these determine the quality of human capital, people’s access to employment, the quality of social interaction and the propensity for entrepreneurship and innovation, all integral to a functional urban agglomeration. Business-civic leadership in the Bay Area, as reflected in reports by the Bay Area Council and the Association of Bay Area Governments amongst others, have been concerned with broader regional issues such as the cost of housing, the environment and public transit over the past few decades. Progressive business people understand that their community is highly interdependent with the functionality of their urban system, and they mobilize public and private resources in response to urban challenges, with the aim of unleashing the agglomeration economies which they and their children will benefit from.

Picture taken by Naji P. Makarem in Los Angeles

Picture taken by Naji P. Makarem in Los Angeles

Economics and society interact in important and meaningful ways. This offers hope to people in urban economies who might otherwise feel locked-in to a path-dependent low-road trajectory of high unemployment, low wages, poor governance and weak public finance. It also raises community and business leaders to a broader sphere of regional social responsibility. How they think, organize and lead in response to regional challenges and opportunities is important: Their world views, social relations, association and leadership can have a profound impact on regional governance and organizational cultures and practices. As Douglas North argues, “[t]he dominant beliefs, that is, of those political and economic entrepreneurs in a position to make policies, over time result in the accretion of an elaborate structure of institutions, both formal rules and informal norms, that together determine economic and political performance” (North, 2003-p. 6).

 

The broadening of world views that transcend narrow conservative self-interest has long been the subject of intense research in the fields of psychology and philosophy (Wilber, 1996). Our world views, cultures, organizations (Laloux, 2015) and political and economic systems co-evolve towards greater levels of complexity, interdependence, creativity, compassion and shared-knowledge, and are doing so at a faster rate than at any other time in human history. Business communities have the power and responsibility to facilitate our journey towards more inclusive, just, wealthy and sustainable societies.

 

 

 

References:

 

Laloux, F. (2014). Reinventing Organizations: A Guide to Creating Organizations Inspired by the Next Stage of Human Consciousness. Nelson Parker.
North, D. C. (2003). Understanding the process of economic change. In Forum Series on the Role of Institutions in Promoting Economic Growth: Forum (Vol. 7).

 

Wilber, K. (2007). A brief history of everything. Shambhala Publications.

 

 

 

 

 

Impediments to Development: A Cursory View of Nigeria

ucfuogu14 October 2015

What is development?

Source: Sun.Star http://gallery.sunstar.com.ph/Editorial-Cartoons/i-hWjMJP8

 

There is no universally accepted definition of development. Different definitions and measurements have been proffered over the decades. These range from the use of indicators of economic affluence, such as GDP and poverty line, to use of social variables encompassing rights, education, and freedom, such as the Human Development Index. Nonetheless, no matter the approach adopted, a generally consensus is that many countries in the developing world, including Nigeria, are at the lower end of the development trajectory.

Why are developing countries not developing?

Source: SMART Technologies http://exchange.smarttech.com/details?id=88de0e47-b103-491c-ab9b-401d9554f440

 

“Corruption is one of the top three issues facing Nigeria, along with insecurity and unemployment. We must act to kill corruption or corruption will kill Nigeria”. [1]
Many issues have been attributed for the slow pace or lack of development in developing countries such as Nigeria, with a lot of emphasis laid on corruption. This is buttressed in Nigeria by the fact that successive governments have prioritised tackling corruption. Corruption, especially in its endemic state, has a negative impact on development. Such negative impacts include negatively impacting on the business environment, a decrease in funds available for developmental projects, increasing cost and time of transacting private and public business, etc. Such impacts, which affect the day to day living of citizens, has resulted in a hegemonic narrative that if corruption could be tackled then Nigeria would be on the highway to development.[2]

Hegemonic narrative overshadows other impediments to development.

“The fight against corruption is a full time job that the Federal Government will carry with sustained resolve. I have always maintained zero tolerance for corruption. I am even more committed to fighting this number one enemy decisively because I am convinced beyond any shadow of a doubt that the much needed impetus for our country’s survival is held back by corruption”. [3]
This hegemonic view has resulted in the relegation of other substantive issues hindering development to the background. Furthermore, by focusing so much attention on tackling corruption, policy makers lose sight of the fact that corruption could be directly or indirectly tacked by focusing on other substantive issues. One such substantive issue that is not being given adequate attention in Nigeria is urban development planning and management.

Urbanisation and development

It is widely agreed that urbanisation is a necessary condition to achieve development beyond a modest level of income. This is because urban centres are important drivers of development and poverty reduction, as they concentrate much of the national economic activities, and provide crucial links with rural areas, between cities, and across international borders. According to the World Bank, more than 80 percent of global GDP are generated in cities. [4]

Why are cities/urban centres critical to development?

The answer can be seen in the fact that cities, right before the creation of nation states in the 16th century, have existed to perform crucial functions which allow development to flourish and these functions are still germane today. These include: presence of thick markets around multiple workplaces and division of labour; shared infrastructure and service providers resulting in the dynamics of backward and forward inter-linkage of firms in industrial systems; and the emergence of localised relational assets promoting learning from knowledge spill-overs and innovation effects. [5] These functions are enhanced as productive cities tend to have a high concentration of support services; from high end legal and accounting services, financial and management consulting, repair and logistics, advertising, to public services like education and policing.

Nigeria’s experience

Findings indicate that successive Nigerian governments have not come to terms with the critical roles of cities/urban centres. This is based on the fact that with the exception of Abuja and Lagos, urban governance structures are lacking or non-existence in Nigerian cities.[6] This is despite the fact that Nigeria’s urban population was estimated at 47% of her total population as at 2014 and it is predicted to rise to 67% by 2050.
The above fact is further nuanced when the functions of Ministries, Departments and Agencies (MDAs) saddled with urban development issues are examined, as well as, the coordination of urban issues amongst the national, state and local levels of government. Nigeria’s Federal Ministry of Housing and Urban Development is responsible for urban development initiatives at the federal level. At the state level, Ministries of Physical Planning and Urban Development exist in some state, although they may bear different nomenclature. While planning for local government areas are undertaking by state MDAs in most states in Nigeria.
A deeper look at the activities of these MDAs reveals that while at the federal level the focus is geared towards housing related issues such as provision, state MDAs focus on physical planning, mainly designing of master plans and enforcement of planning laws and regulations, which many states see as a tool for revenue generation through development permit. Coordination of urban development issues amongst the national, state, and local levels of government can be said to be non-existence, despite provisions made to this regard in the 1992 Nigerian Urban and Regional Planning Law, decree No. 88 as amended in 1999.

Realisation

If the preceding facts are correlated with the conclusion arrived at by Cities Alliance that “no country has ever attained middle-incomes without urbanising, and none has reached high income without vibrant cities that are centers of innovation, entrepreneurship and culture”,[7] then the situation in Nigeria and other developing countries, where policy makers are yet to come to terms with the need to create structures and systems to effectively manage cities/urban centres, is a cause for concern. This is because when corruption is eventually tackled in these countries there will be a realisation that attaining development is still a mirage.

 

References
1. A Statement by the President of Nigeria President Muhammadu Buhari. Source Punch Newspaper http://www.punchng.com/news/buhari-to-split-nnpc-into-two-plans-fresh-bid-round-for-oil-blocks/
2. Editor Punch Nigeria Limited, 2015. PUNCH. [Online]
Available at: http://www.punchng.com/editorials/corruption-let-the-war-begin-in-earnest/
[Accessed 3 August 2015].
3. Statement by the President of Nigeria President Muhammadu Buhari at the US Institute for Peace on 22nd July 2015. Source: Punch Newspaper http://www.punchng.com/news/buharis-speech-at-us-institute-for-peace/
4. http://www.worldbank.org/en/topic/urbandevelopment/overview
5. Miller, H., 2014. What are the features of urbanisation and cities that promote productivity, employment and salaries?. s.l.:EPS-PEAKS.
6. Well-being and citizenship in urban Nigeria (2015) Forthcoming publication by Andrea Rigon et al.
7. Knowledge platform: Urbanization. http://www.citiesalliance.org/sites/citiesalliance.org/files/7%20-%20WB%20Urbanization%20KP%20Full%20Document.pdf

Tags: Development, Urban development planning and management, urbanisation, corruption, cities/urban centres


 

Olusegun Ogunleye is a development practitioner with several years working experience in the field of town planning in Nigeria. He has also taken part in urban-based research in Nigeria, London and, Dar es Salaam. His passion lies in the area of urban governance as he sees it as a veritable tool to ensure and enhance the wellbeing of citizens. He also believes in the potential inherent in community-led development as a means of ensuring sustainable development. Olusegun graduated from the MSc Urban Development Planning in 2014.

Building Partnerships for South-South Cooperation

ucfudak29 July 2015

Considering the increased focus on South-South Cooperation development dialogue and India’s long standing presence in assisting development in various regions of the world, the UK Department for International Development (DFID) is implementing a new model of cooperation support in India.

DFID India’s Global and National Team (GNT) is at the centre of delivering the transition from an aid-based UK-India development relationship to a mutual partnership for global development, in line with the vision set out by the Former Secretary of State in his Emerging Powers speech at Chatham House in February 2012. Enhanced policy engagement with India on national and global issues through programmes like the Knowledge Partnership will be at the heart of this transition.

The Knowledge Partnership Programme (KPP) with which I am associated as a Senior Programme Manager from the last two and half years will be completing its pilot phase in June 2016.

Women Development Group Members in Oromia region of Ethiopia

Women Development Group Members in Oromia region of Ethiopia

IPE Global, where I work, is implementing the programme on behalf of the UK Department for International Development (DFID). The programme aims to produce and disseminate high quality research and analysis products, share Indian and global evidence on policies that impact development outcomes and support advocacy towards strengthening policy design and implementation.

To date we have promoted sharing of Indian evidence, best practices and expertise with Low Income Countries in order to facilitate evidence-gathering and uptake.

Priority Areas

Since its beginning, the programme has prioritised the following areas for engagement: (a) food security, resource scarcity and climate change; (b) trade and investment; (c) health and disease control; (d) women and girls; and (e) development effectiveness.

The aim is to step up collaboration around ideas, knowledge, evidence, accountability, technology and innovation between UK, India and the developing countries of Sub-Saharan Africa and South East Asia. The work my team and I carry out, focuses on Indian policy and practice with the explicit intention of developing India-Global networks, strategies and sectors to promote knowledge exchange through south – south collaboration.

Recently, we were able to facilitate a partnership between, Kudumbashree, a state led mission in India and Ministry of Women, Children and Youth Affairs Ethiopia, on the theme – women economic empowerment.

Delegates with Kudumbashree SHG members - women construction workers

Delegates with Kudumbashree SHG members – women construction workers

What can Self Help Groups contribute?

Today, the MFIs in Ethiopia are motivated to extend the frontier of financial intermediation to those traditionally excluded from conventional financial markets, the Poor, and especially the poor women. At the same time, various studies point out that the Self Help Groups (SHGs) can act as a tool for advancement and empowerment of women in India.

The microfinance movement through the SHG model in India has also been considered an effective development tool to enable women SHG members to graduate to microenterprises and in turn, to address poverty. The Indian experience of empowering marginalized women through formations of SHGs with institutional linkages and the growing demand for microfinance development in Ethiopia created an ideal situation for us, at the programme, to promote collaboration and cooperation between the two countries.

In my opinion, this India-Ethiopia alliance on SHGs represents a success story of mutual cooperation between two nations. It reiterates the potential for knowledge based cooperation and collaboration between nations in the global south to set their agenda and achieve sustainable development.

Indian SHG Group Leader and Ethiopian SHG Group Leader

Indian SHG Group Leader and Ethiopian SHG Group Leader

Progress towards SDG Goal 17

As development processes become ever more complex, I see a growing demand for knowledge and analytical products that can provide evidence and learning for policy changes and reforms. Informing and influencing policies are hence critical aspects of inter­national development and I believe, together we can bring a change by focusing on advocacy along with service delivery.

By adopting the new Sustainable Development Goals, countries are also committing towards achieving the Goal 17 – to strengthen the means of implementation and revitalize the global partnership for sustainable development.

More specifically, countries will promote multi-stakeholder partnerships that mobilize and share knowledge, expertise, technologies and financial resources to support the SDGs. In addition, these collaborations will encourage and promote effective public, public-private, and civil society partnerships.

These two targets 17.16 and 17.17 are banking on the existing North-South cooperation and the emerging South-South, and triangular cooperation.

Ethiopia Delegates; Kudumbashree Executive Director; Chairman Dr.M.K.Muneer, Hon’ble Minister for Panchayat & Social Welfare; IPE Global Team

Ethiopia Delegates; Kudumbashree Executive Director; Chairman Dr.M.K.Muneer, Hon’ble Minister for Panchayat & Social Welfare; IPE Global Team

India’s role in the post-2015 development agenda

In the post-2015 era, India plays a critical role in sharing learnings it has accumulated in the process of gradually upgrading from a low-income to a middle-income country. I hope partnerships based on knowledge will support effective and targeted capacity building in developing countries and help achieve common objectives.

Through activities undertaken and studies supported by the programme, we hope to engage more with policymakers and key stakeholders. By providing informating their choices through evidence-based advice, we hope the effectively influence the policy environment and reforms in India.

At the same time, we through the KPP are also aiming to strengthen India-UK partnership and significantly contribute to global development opportunities across the developing world.


Daljeet Kaur has a double Master’s degree in Environment and Sustainable Development from the DPU and Environmental Planning from School of Planning and Architecture, New Delhi. She has worked as a qualified planner and an architect for more than eight years at a variety of organisations.

At present she is working as a Senior Programme Manager for the DFID funded Knowledge Partnership Programme (KPP), implemented by IPE Global. The programme has established more than 50 partnerships to date with a wide range of partners in a number of sectors, including IDS (Sussex), UNDP, FAO, and Governments of Ethiopia, Nepal, Bangladesh, Kenya and Malawi. For more information about the programme please visit www.ipekpp.com.