Urban Innovations: Development of Poor Urban Communities

Abstract

n 2003, the Philippine Government began implementing the Development of Poor Urban Communities Sector Project (DPUCSP), a pro-poor set of investments in secure tenure, housing, and livelihood support. Though local government units (LGUs) are the appropriate agencies for making such investments, most have a fairly limited capacity for investing in settlement upgrading and development of low-cost housing. However, all LGUs agree that additional investment in housing is necessary. Most LGUs thus prefer that the local communities themselves, nongovernment organizations (NGOs), and private sector investors assume the lead role in site development, upgrading of infrastructure, construction of housing, and financing. Supported by a $30.5 million Asian Development Bank (ADB) loan to the Development Bank of the Philippines (DBP), the DPUCSP aims at reducing poverty, providing housing, and improving the income and quality of life of the urban poor. More specifically, its purpose is to put in place systems for providing affordable housing, serviced building sites, and microcredit facilities to the poor.