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Affordable housing for all

The world’s population is steadily moving to cities and towns. This demographic transition is set to cross a major milestone in 2008, when every second person on the planet will live in an urban area. The United Nations Population Fund forecasts, in its recently released State of the World Population report, that by 2030 Asia and Africa could see a doubling of the urban population from turn-of-the-century levels. In India, relatively prosperous cities attract a vast number of people from rural areas. This trend can only grow stronger as cities expand. If we go by the experience of the developed world, there is little prospect of this migration being reversed. What is clear is that the existing national schemes for housing, water supply, sanitation, infrastructure, and public transport are grossly inadequate. The United Progressive Alliance government promised an augmented social housing campaign, setting it out as a priority in the Common Minimum Programme. It drafted a new housing policy with an emphasis on egalitarian objectives; this includes a dedicated shelter fund for the weaker sections. Yet the Ministries of Housing and Urban Poverty Alleviation, and Urban Development have not finalised the new policy and strategy to meet the existing shortfall of 25 million housing units, not to speak of the new demand. Almost three quarters of the shortage affects the poor.

The housing shortfall in India evidently parallels China’s. Both countries are trying to increase the available stock but China has acted more firmly in the face of high levels of speculation and rising prices. Beijing has compelled local governments to promote low cost housing and directed private developers to reserve 70 per cent of their new projects for small units. The Housing Ministry in India has been considering cross-subsidisation but progress will depend on the Central and State governments acting in a far-sighted way. The most difficult task is to integrate the resources of local bodies, financial institutions, city planners, and the private sector to remove hurdles encountered by the weaker sections. The lack of institutional financing options for the poor and the rising cost of property have been identified as two major barriers. Speculation has driven up land prices in urban and peri-urban areas, while there is little new stock of public housing for rent or sale. To see some results, the government needs to move ahead on reserving land, adopting vertical construction in congested areas, reducing prices through use of low cost materials, and partnering with the private sector. Will it measure up to the challenge?

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