Unsanitary Sanitation

I visited some slums in Delhi in order to assess the availability and condition of sanitation facilities for a volunteer program. And ‘deplorable’ is the word.

The slums I visited were notified slums and had been provided community bathrooms and toilets by the Government. Some of these were in an unusable condition, effectively amounting to no access. By far the worst was the ‘Sonia Gandhi Camp’ at RK Puram, where the outlet pipes of the toilets were broken resulting in a stinking muck all around. The slum habitants waited for nightfall to defecate by the roadside, in the open. All slums had a government/NGO cleaner and mostly, the worker was irregular.More details on the visits can be found at: What's that Smell?

A UNICEF survey conducted in 2009 estimates that 1.2 billion across the world defecate openly. Of these, the largest number is of Indians: 665 million defecate openly.

Graph: Distribution by country of people defecating openly

Country; Population defecating openly; Population defecating openly in the country as percent of total world population defecating openly

Source: UNICEF

Poor sanitation has adverse health implications: deaths, productivity loss due to sickness, increased public health care costs. According to WHO, in 2008, 13% of child mortality under age of 13 was due to diarrhoea. Indeed there is significant economic cost of the productivity loss. Water and Sanitation Program estimates the loss in income at USD 54 billion, about 6.4% of India’s GDP: http://www.wsp.org/wsp/node/1150

Dharavi in 2002:

Dharavi in 2010:

Outbursts of growth in the slum pocket of Mumbai. It is good to see India acquiring a fancy skyline but it is disheartening to see the condition of slum dwellers.

the market solution to slum rehabilitation

I was recently introduced to the concept of market based solutions for slum rehabilitation.

At the fore: slums are not a result of market failure, rather a result of markets. The solution therefore, lies embedded in the working of markets.

The solution is provision of low cost housing to the slum inhabitants, who were too poor to afford extant housing. A prerequisite: inexpensive land. The current demand supply mismatch in the real estate market seems large. Authors suggested accelerated clearance of disputed land, conversion of unused public lands and conversion of agricultural lands at city periphery for urban use.

Following calculations based on cheapest available land around Bombay (Thane district?) at Rs 2,500 /sq ft show ~1,000 acres of residential land needs to be made available (further, land for infrastructure will also need to be made available) to meet demand. There may still be some people who may need titling benefits or subsidies.

Releasing this kind of land should not take much, it is only about 1% of Mumbai’s total land.

• Households with annual income less than Rs 90,000 per annum will be eligible for subsidies.
• Given the magnitude of 'inexpensive' land required, converting agricultural land and developing satellite towns may actually be the best available option.
• Substantial investments would have to be made for provision of infrastructure, particularly transport.

Paper: "Working with the Market: a New Approach to Reducing Urban Slums in India"

the scintillating urban and the static rural

Higher urban wages attract rural poor, leading to migration, unemployment, emergence of squatter settlements etc.

Higher wages or the ‘expected higher wages’ in the urban sector drive the immigrants.

Of course migration cannot be stanched. Two pronged policies:

• Cities should expand to keep pace with immigrant population. Policies to integrate informal into mainstream economy, Govt provision of adequate physical infrastructure.

• Productivity in rural areas can be enhanced (for example through imposition of minimum wages).

In India, rural labour market seems to have settled at a low productivity equilibrium encouraging migration.

Productivity in Agriculture sector has not progressed over past few years:

Why land titling does not work? It doesn't teach you how to earn!

Land titling is an incomplete solution. It does give the inhabitants a house but not the assured stream of income to maintain the house. Government should extend the policy purview (Rajiv Awas Yojna for slum rehabilitation) to include establishment of vocational training institutes that will provide the dwellers with the skill set required for sustenance. This can be implemented through a government financed slum development authority or through involvement of private developers.

Land titling is successful in so far it eliminates the need for the presence of an adult member in the house at all times to protect eviction from property. Thus, property rights provided to an x number of households makes available a comparable number of adults and consequently an equivalent amount of productive labour. Since the households become registered and therefore legal, numerous other problems such as electricity theft are alleviated.

However, any significant increase in access to credit has not been recorded, as a study in Peru, the developing country with the largest land titling program revealed. Plausible reasons are the costs associated with small ticket credit approval process; determination of creditworthiness of a borrower which entails evaluation of individuals on accounts of land available for collateral besides employment and level of income, education level, counter-guarantee, purpose of loan (productive or consumption) etc.

A potential problem with the land titling policy: reversion of the targeted group to slum dwelling and renting out the newly possessed property.

Slum rehabilitation authority with an initial paid up capital allocated in the budget. This authority should plan, aid and oversee the construction of a complete township. The house area, if we assume to be of double carpet area of the initial slum houses, and three storied, will leave almost one-third area available for workshops and other commercial trade centers.

This authority should undertake the establishment of vocational training institutes. Depending on the supply side feasibility, each slum can create a niche in some craft. The onus of marketing and the brand building exercise should also be on the authority. This is analogous to the highly successful state emporia model, an initiative of the state governments to showcase and sell its state’s traditional handicrafts.

This would also bring a sizable number of taxable transactions or sometimes even the flourishing black economy under the government net.

The program can also be designed to involve private developers who can use the land available commercially, while also showcasing the crafts associated with the slum.

Slums are a large part of the informal economy.