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The starting point for any city-wide or national program of
upgrading should be some sort of an overarching framework of how a
city copes with the problems of poverty and impoverished and
under-serviced areas. The Bank is experimenting with instruments
such as City Poverty Strategies that will help city governments
understand the problems of poverty and develop local action plans
to respond. By putting in place these kinds of strategic
frameworks, upgrading projects can be better placed within a more
comprehensive approach to urban poverty reduction.
At
a minimum, an upgrading program should be designed within the
context of the city-wide system of municipal service delivery to
take into account any existing plans for future servicing of these
areas, and to determine the impact of the program on the city-wide
system. This is critical for the sustainability of the
infrastructure and the requirements for operations and maintenance
of the facilities created. Similarly, there is a need to
synchronize the linkages to health and education services and
transport planning to ensure that these services can respond to
the demand generated by program. There are also opportunities to
attract the private provision of services to supplement the
efforts of the public sector, ranging from social services to
infrastructure and utilities.
Related
to overall development of these areas, the poor need to have
access to affordable microcredit, for things ranging from small
business development to housing improvement. In many places,
specialized institutions and financing mechanisms already exist
(e.g. ACCION, SEWA) which upgrading program can link with. Where
they do not exist, credit is an issue that needs to be addressed,
even if it is not done through the project itself.
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