Based on the updated urban poverty line of $1.90 a day, the World Bank’s latest projections suggest that global poverty may have reached 700 million, or 9.6 percent of global population. But, on the opposite side, World Bank also says, wealth around the world is increasingly concentrated among those at the top. The top 1 percent now owns 50.1 percent of the world’s wealth.
Statistics indicate, in Sri Lanka, 33 percent of the population live in urban areas and only 4.1% live below the national poverty line. Looking at urban poverty from a national point of view provides a favourable picture. However, according to World Bank reports, about 20 per cent of the urban population are slipping into a ‘near poor’ situation and closer to the poverty line, and would eventually end up being poor.
Urbanization of poverty
In view of the increasing importance of urban areas as the engines of economic growth in the country, a major share of our GDP growth is expected to come from urban economies. It is, therefore, necessary to review the major issues confronting urbanization such as, urban poverty and assess its implications for the country’s economic development.
The UNDP predicts there will be an increase of ‘urbanization of poverty’ here - over the next 10 years. Their concept of poverty encompasses not only low or inadequate income, but the lack of access to basic physical necessities and assets (both tangible and intangible). If poverty is to be alleviated, UNDP says, the poor need to be ‘empowered’ in terms of achieving a greater share of, and increased access to, the economy.
Issues
It is estimated, based on research data, that about a quarter of our urban population live under substandard conditions although they do not fall below the poverty line. Their inability to devote resources to environmental protection aggravates their living conditions. Among this segment, those most vulnerable to environmental threats include women, children, and the elderly.
Confronted by haphazardly functioning land markets, the poor often have little choice but to occupy hazardous or polluted areas. This lack of access by lower income families to serviced land, affordable shelter and basic environmental infrastructure and services has plagued our growing cities for several decades.
Challenges
The persistent neglect of the basic needs of the urban poor and the mounting environmental problems take a heavy toll on urban health and productivity. Today, thousands of poor urban dwellers lack any form of sanitation. This is a major cause of sickness in cities and a drain on urban economies (due to lost work days, illness, the costs of treating pollution-related illnesses and of clean-up activities).
As urban poverty comes to be recognized as a specific subject area in need of targeted interventions, the challenges it faces can be seen to arise from three major sources; (a) Complex poverty landscape, (b) weakness in the policy framework of poverty alleviation, (c) lack of knowledge about poverty and its effects.
Poverty landscape
Improving the living conditions of the urban poor involves a range of city specific and national institutions. The Urban Development Authority was set up to carry out planning and development activities - with special emphasis on land use policy – in all urban areas. The Common Amenities Board was established to construct and maintain services in low-income settlements. The National Housing Development Authority provides housing loans and regulates housing ownership on land purchased by the Authority.
While these institutions are the key players in the sector, there is a range of other institutions with special functions and regulatory mandates. There are serious inefficiencies because multiple institutions have overlapping mandates and areas of responsibility. The situation is aggravated when institutions have contradictory mandates.
Hence, many pro-poor activities carried out by institutions such as, City Councils are not within its strict legal mandate. State institutions frequently overcome these constraints by coordinating with non-government organizations, which are knowledgeable and active in the area of urban poverty alleviation.
Policy Framework
The regulatory framework adopted in our urban areas has been blamed for aiming at unrealistically high standards and for being bureaucratic, thus putting legal land and shelter out of reach of poor households. The latter end up living in unplanned settlements, which develop irregularly, sometimes on marginal land, lacking basic infrastructure.
The revision of the policy framework which supports realistic levels of planning standards, the incorporation of communities and the private sector in land delivery, and the decentralisation and streamlining of procedures are the urgent needs of the day.
Knowledge base
In Sri Lanka, the primary focus of poverty of the central government normally relates to the rural economies and societies. The urban poor have received little recognition as a special group that face dynamics and dimensions, significantly different from the rural. Though the national statistical providers such as, the Department of Census and Statistics produce basic data on the incidence of poverty in the urban sector, secondary data that helps an understanding of the living conditions and livelihood patterns of Colombo’s poor are not enough to make realistic decisions.
Urban Management Program
During the latter part of the last century when world economic discussions were strongly favouring the participatory approach and environmental sustainability for development activities, the United Nations launched what is known as the Urban Management Programme (UMP) in Asia.
The UMP was envisioned to promote sustainable urban management and to improve the living conditions of the urban poor by enhancing the civic capital (social capital) in cities and by promoting and strengthening pro-poor urban governance. In many developing countries, by adapting the Urban Management Program, cities and towns were strengthened in human development, including participatory governance, economic efficiency, social equity, poverty reduction and environmental improvement.
This was achieved through more efficient and equitable use and distribution of resources, including the harnessing of the skills and initiatives of individuals and communities (particularly among the poor), private and voluntary organizations and local authorities.
It’s time we think of introducing similar or equivalent programs in Sri Lanka.