Working with the Market : Approach to Reducing Urban Slums in India

This paper examines the policy options for India as it seeks to improve living conditions of the poor on a large scale and reduce the population in slums. Addressing the problem requires first a diagnosis of the market at the city level and a recognition that government interventions, rather than thwarting the operations of the market, should seek to make it operate better. This can substantially reduce the subsidies required to assist low income households to attain decent living standards. The authors show that government programs that directly provide housing would cost, in conservative estimates, about of 20 to 30 percent of GDP, and cannot solve a problem on the scale of India's. Using two case studies, for Mumbai and Ahmedabad, the paper offers a critical examination of government policies that shape the real estate market and make formal housing unaffordable for a large part of the population. It illustrates how simple city level market diagnostics can be used to identify policy changes and design smaller assistance programs that can reach the poor. The linkage between chronic infrastructure backlogs and policies makes housing unnecessarily expensive. Increasing the carrying capacity of cities is essential for gaining acceptance of real estate policies suited to Indian cities. The authors propose approaches for funding major investments to achieve this.

Bibliographic Details

Main Authors:	Annez, Patricia Clarke, Bertaud, Alain, Patel, Bimal, Phatak, V. K.
Format:	Policy Research Working Paper biblioteca
Language:	English
Published:	2010-11-01
Subjects:	AFFORDABLE HOUSING, APARTMENT, APARTMENT SIZE, APARTMENT UNITS, APARTMENTS, CITIES, CIVIC LEADERS, COMMUNITIES, CONSUMERS, COST OF HOUSING, COUNTRYSIDE, CROSS SUBSIDIES, DESCRIPTION, DEVELOPMENT AUTHORITIES, DWELLER, DWELLING, DWELLING UNITS, DWELLINGS, EVICTION, GOVERNMENT HOUSING, HOMES, HOUSEHOLDS, HOUSES, HOUSES FOR THE POOR, HOUSING, HOUSING AFFORDABILITY, HOUSING CENSUS, HOUSING CONDITIONS, HOUSING CONSTRUCTION, HOUSING DEVELOPMENTS, HOUSING FOR THE POOR, HOUSING MARKET, HOUSING NEEDS, HOUSING POLICY, HOUSING PROGRAMS, HOUSING PROJECTS, HOUSING STANDARDS, HOUSING STOCK, HOUSING STOCKS, HOUSING STRATEGY, HOUSING SUBSIDY, HOUSING SUPPLY, HOUSING UNITS, INCOME, INFORMAL HOUSING, INFORMAL SETTLEMENTS, INTERVENTIONS, LABOR MARKETS, LAND MANAGEMENT, LAND MARKET, LAND PRICES, LAND SUPPLY, LAND TENURE, LAND TRANSACTIONS, LAND USE, LAND USE REGULATIONS, LAND VALUE, LEASING, LIVING CONDITIONS, LOCAL GOVERNMENT, LOW COST HOUSING, LOW-INCOME HOUSEHOLDS, MOBILITY, MUNICIPAL CORPORATION, MUNICIPALITIES, MUNICIPALITY, NEIGHBORHOOD, NEIGHBORHOODS, PER CAPITA INCOME, POVERTY REDUCTION, PRIVATE DEVELOPERS, PRIVATE LANDS, PRIVATE SECTOR HOUSING, PUBLIC, PUBLIC AGENCIES, PUBLIC HOUSING, PUBLIC OWNERSHIP, PUBLIC PROGRAMS, REAL ESTATE, REAL ESTATE MARKETS, REAL ESTATE TRANSACTION, RENT CONTROL, RENT CONTROLS, RENTAL HOUSING, RENTING, RURAL AREAS, SETTLEMENTS, SEWAGE, SHELTER, SLUM, SLUM AREAS, SLUM UPGRADING, SLUMS, SOLID WASTE MANAGEMENT, STREETS, SUBURBAN AREAS, SUBURBS, TAXATION, TOWN PLANNING, URBAN DEVELOPMENT, URBAN ECONOMY, URBAN GROWTH, URBAN INFRASTRUCTURE, URBAN LAND, URBAN LAND MANAGEMENT, URBAN POLICIES, URBAN POOR, URBAN POPULATION, URBAN POVERTY, URBAN ROADS, URBAN SERVICES, URBANIZATION, VILLAGES, ZONING,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101115095218 http://hdl.handle.net/10986/3957
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