This book is concerned with housing and urban development in Nepal. Nepal is urbanizing fast. The level of urbanization was only 3.6% in 1971. It is, at present, about 17%. During the period, the total population increased from 11.6 million to about 26.5 millions.
The urban sector contributes significantly to national development. Not only that the contribution of the sector to the national GDP is high, most activities take place in urban areas. It is but natural that problems of coordination are nowhere as acute as in the urban areas. Urbanization has influenced human life in many ways not only in urban areas but also in the rural regions of the world. To-day almost all the aspects of development respond to new demands that it has urged.
After the mid 1980s, there had been many positive changes as regards to housing and urban development in Nepal. Enormous investments were made in the sector. Savings are mobilized through housing finance and infrastructure investments. There is an adequate increase in human resources engaged in urban development. Local resource base has been widened. People have become more aware and empowered. The absolute poverty level in urban areas has dropped significantly. More of the financial resources have been drawn to urban centers. There has been a growing realization of the need for decentralized government action. People are empowered as they become engaged in community action on the provision of urban services. This has also urged political changes. It is becoming more difficult to provide infrastructure d services to the growing population. Housing conditions, in both rural and urban areas, have deteriorated. As a result, poverty has increased; and living environment has not improved.
The purpose of the book is twofold. The first is to present the existing situation of housing and urban development and to analyze the trend of urbanization. It makes an analytical review of the experiences and efforts made since 1976. After dealing with the problems and issues, it attempts to suggest strategies to facilitate housing and urban development in the country. The second is concerned with the process of implementation. It works on governance; and shows why we ought to pursue a participatory process of development. It tries to link governance with the provision of housing and urban services in Nepal.
The concept of housing should be comprehensive. People migrate to towns and cities for jobs and income. As they earn, they build their houses in towns and cities. Housing process initiated by the people influences the development of human settlements markedly. Towns and cities are created, shaped, and molded by their actions.
When people are engaged in the production of goods and services, there are more jobs, production, and economic growth. With the increasing cost of the provision of services, poverty will be more linked to these in the coming days. The cost of service provision will also increase as natural resources get used up. People should be encouraged to invest in their settlements and use their resources, talents, and skills. It should be realized that the cost of getting services through other means is costly and will be still more costly in the future.
Chapter I gives a general profile of Nepal and deals with the increasing importance of human settlements development. Housing process helps the development of towns and cities. With the increase in the level of services, settlements should be developed as viable economic entities. Recognizing its role in rural and national development, urban development is getting more and more attention.
Chapter II is concerned with urbanization in Nepal. It provides the distribution of urban population over the nation; and presents the trend to the year 2021. It explores the relationship between urbanization and development. It deals with the linkages between urban and rural areas.
The next chapter puts forward the concept of housing and housing process. The changes since 1976 are also presented with a view to evaluate the progress made in the sector. It depicts the existing situation of housing in Nepal. It makes a general assessment of the existing level of urban services. It also shows that, despite many positive changes, living and working environment in urban areas has not improved. Housing is being considered more as economic goods to be produced and traded.
Chapter IV gives a review of urban policies and programs. It discusses the problems and issues of urban development. It works on the goals and objectives of urban development. Urban policies and strategies are viewed at two levels: the urban level and the supra urban level. Even though the pace of urbanization is rapid, Nepal is still predominantly rural. Urban areas by definition are more developed and hence more capable of exploiting the benefits of urbanization. The spatial dimension of an urban strategy has a direct bearing on the formation of a viable national urban system. To reach the rural areas, one has to pass through a system of urban settlements. Cities should provide services to their hinterland and the resources should be used in a sustainable way. It is necessary to develop city regions.
Chapter V deals with housing strategies and different options of housing delivery. The importance of standards and norms is discussed and criteria for setting these are analyzed. The key components of housing are land, finance, building materials and construction technology. Organized housing and land development, upgrading and owner-builder housing are the major options of housing delivery. The large proportion of the population in our cities can be called slum dwellers; the worst manifestation of urban poverty, deprivation, and exclusion in the modern world. The chapter also deals with urban upgrading and regeneration. Chapter VI deals with land as a key element of housing. It gives different perspectives on land and discusses different land development strategies. Chapter VII deals with technology and building materials as important building blocks. For housing and urban development, technology is critical. Nepal has a good potential to develop local resources for housing. However, the progress is slow; and much needs to be achieved in terms of building materials and construction technology. On one hand, it is necessary to transform the traditional ways to make them more sustainable. On the other hand, it is necessary to adapt modern alternatives to local conditions. Chapter VIII deals with housing finance and analyzes the problems of urban financing. Housing and urban development policies are presently not backed by investment commitments; and financing mechanisms are not clear. In order to get more resources, it is necessary to enhance the returns to investments and contribute to poverty alleviation. Based on the returns that would be generated, future investments become available. Infrastructure costs need to be recovered to make their production self-financing. Resources need to be drawn from the market for the construction and maintenance of infrastructure. When the costs of these can be recouped through the use of the infrastructure, sustainable funding will become possible. The people at large have found it increasingly difficult to meet their housing needs. The widening gap between the investment required and the affordability of the target group is the major problem. The ever-increasing land prices, inadequate housing loans, and poor cost recovery on urban investments are the major problems in the provision of housing and urban services. It is necessary to enhance fiscal sustainability.
The government makes policies but is not committed to their implementation. Irrespective of what the government does, changes do take place and policies must be responsive to changes. In view of these, chapter IX tries to analyze the implementation process. Implementation analysis will help to identify the problems and issues relating to the management of urban services. It is necessary to understand how the process is being implemented to make any sort of intervention. It should be linked with the formulation of policies in order to make them clear and consistent. Understanding of the policies and their evaluation in terms of the realization of goals and results are essential since development takes place because of several conflicting forces. It is necessary to make goals and polices explicit and clear. Some of the policies are not intended to be implemented. It is not easy to ensure coordination as many actors are managing the process of urban development. It is necessary to mobilize resources owned by all for urban development. It should influence other policies for ensuring sustainable provision of goods and services in a fair manner. After making an implementation analysis, the chapter deals with some institutional requirements.
Chapter X gives a historical perspective and a review on efforts towards decentralization. It deals with strategies for deepening it. The need to link it with local empowerment is highlighted. It is concerned with strategies for strengthening local government action.
The implementation of policies, plans, and programs rests on governance. The subject matter of chapter XI is urban governance. It deals with the changing role of government. The role of the national government is changing rather fast. It is necessary to emphasize on local governance. Instead of controlling, good governance depends on influencing the actors that their actions become compatible with agreed goals. The concept of good governance needs to be linked with effective delivery of services. It is necessary to strengthen the local base. The goal of decentralization should be to improve people’s participation. It should promote inclusive development and ensure access of all to services. Institution evolves through the working of key players, the government, business, and the civil society. It must deal with the people and their organizations. It suggests strategies for enhancing participation and privatization as well as partnership building.. Cities should work closely with urban planning agencies. Cities develop from a multiplicity of large and small initiatives and investments. There is an increased sharing of power between national and city government. With this, cities have to guide, support and encourage families, community organizations, and private sector to contribute to housing and urban development. It is essential that all the territorial controls within their areas should be exercised either by them or with their consent. They should be encouraged to produce and sell services and recover costs. To sustain the business of urban goods and services, it is necessary to satisfy the service takers; and this is not happening. By providing services, we have to make our cities more competitive. Most investments are made in real estate for making returns in a short period. The challenge is how to use the limited resources in more productive ways. Urban financing mechanisms need to be improved for the sustainable provision of infrastructure and services with adequate cost recovery. Self-financing schemes such as land readjustment projects should be promoted. As a public good, infrastructure is most needed; and in most cases provides more benefits to the society compared to others. This is why the private sector needs to be attracted more to investing in infrastructure. Chapter XII is the concluding chapter with a summary drawing the main points of the book.