Textbook
Housing: Sector Policy Paper
The task of accommodating the unprecedented increase in the number of urban dwellers in developing countries and improving their living standards poses a major challenge not only for urban development and housing policies, but for national development in general. This paper approaches the housing situation from the standpoint of effective housing demand. The costs of dwelling units of varying sizes, standards, and locations are compared to the ability of low income groups to pay. It is suggested that housing, including site and services and other self-help methods of construction, could be provided without significant subsidy for at least 80 percent of the population of most cities. In relatively higher income countries most of the lowest 20 percent could be reached with a small measure of subsidy. In very large, lower income cities squatter area upgrading appears to hold the most promise. The paper discusses the economics of housing and international and Bank Group experience in the sector in order to recommend future directions for lending. Monitoring, evaluation, and research should continue to be an integral component of the urban development program.
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