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R. C. Sharma (ed). South Asian Urban Experience, Criterion Publicaton, 1988. pp. 211 – 221

The main objective of this paper is to develop an adequate urban strategy in the context of Kathmandu. The first section identifies the role that Kathmandu should be playing in the national urban system. This is followed by the identification of problems and issues in relation to the assigned role and the objectives. Urban policies are then evaluated to examine how far these are addressed to the issues raised and the problems identified. Finally an urban strategy is suggested for the development of Kathmandu.
The Role of Kathmandu in the National Urban System
Nepal is a small country (141,000 km. 2 ) with a population of 15 million (1981). The population growth rate is 2.66 per cent per annum. Broadly speaking, Nepal can be divided into three physical divisions : (i) the Terai; (ii) the hills; and (iii) mountains. Because of differences in resource endowments and investments, the Terai region and the Kathmandu valley of the hill region are relatively more developed. The population distribution is also highly irregular. The Kathmandu Valley with 0.4 per cent of the total area of the country has 50.0 per cent of the total population giving a population density of the city of Kathmandu alone is 20,000 persons per sq. kilometre. The Terai covering about 17.4 per cent of the total land area has 62.2 per cent of the total cultivated area and 36 per cent of the total population. The average population density in the Terai has increased from 140.5 to 212.8 persons per sq. kilometre between 1971 and 1981. The highlands of the mountain region has got a population density of mere 10 persons per sq. kilometre. In order to integrate the hill economy with that of the Terai and to alleviate the problems of regional disparity, attempts were made to create regional centres in the hills. However, except for Kathmandu and Pokhara, these could not function as growth poles. Most of the terai towns are growing at a much faster rate. Experience has shown that it is too costly as well as unrealistic to create growth poles under adverse natural conditions. Two things are now plausible :
1. To encourage the growth of Kathmandu Valley.
2. To extend the growth of the terai towns towards the foothills de-emphasising the border region towns.
Both of these strategic elements imply for a much greater growth in Kathmandu and in the hierarchy of national urban system, the primacy of Kathmandu has to be established. This calls for a much greater urban management capabilities in Kathmandu to absorb population increase in a much faster rate. The following will reinforce this contention :
1. Nepal being a small country, with the development of transport and communication, the national capital will be able to effectively influence the entire country. To create other centres is not necessary.
2. Given the relatively developed stage of Kathmandu, instead of creating other national/regional centres, Kathmandu can play a meaningful role in the integration of the national space by synthesising interregional ideas, disseminating technology and information, etc.
3. This is the centre of decision-making affecting the fate of the people far and wide. Even by creating rivals to Kathmandu, this role is not going to be delegated to other centres.
4. Results of investments in the Valley region can be made easily accessible to other parts of the country.
How far the strategy outlined above can realistically be pursued can be ascertained after analysing the potentials of Kathmandu in terms of land availability, job opportunities and income and cost effectiveness in providing urban infrastructures and services within the resource and institutional constraints. These need be assessed in relation to the planning processes and policy responses in the past.
Implicit in the foregoing discussions is that planning strategy for Kathmandu will depend on national policy on population distribution and employment. Based on the above assuming that intermediate cities will be created in the Terai region, Kathmandu will be the only city which will call for urban management capabilities of immense dimension. The long term goal should, therefore, focus on urbanising Kathmandu at a much faster rate.
The population of the three towns of the Kathmandu Valley in 1971 and 1981 are given in Table 1. Urban growth rate is 4.2 per cent per annum. The average density of Kathmandu and Lalitpur combined was 102 persons per hectare. The total urban area is increasing rapidly. In 1981 the total area of Kathmandu and Lalitpur was 3,100 hectares. The area within the Ring Road is 5,600 hectares.

TABLE I. Population of Kathmandu Valley Towns
Town
Population 1971
Population 1981
Urban Area 1981

Kathmandu
150,402
235,160

Lalitpur
59,049
79,875

Kathmandu Lalitur
209,451
315,035
3100 ha.

Bhaktapur
40,112
48,472
154 ha.

The population of the three towns is now estimated at 424,000 while the total urban population of the country is 1,363,000. The share of Kathmandu Valley towns is 31.1 per cent. By the end of the century, total urban population will be 3,996,000 (Table 2), i.e., 8 per cent of the projected national population of 25 million. Accordingly the urbanisation rate will be 7.43 per cent per annum. If this urbanisation trend is to be well accommodated within regional/national development context to achieve the objectives defined
TABLE 2 Urban Population Distribution
Urban settlements in
Population 1985
Population 2000

Kathmandu Valley
424,000 (31.1)
1,771,000 (44.3)

Others
939,000 (68.9)
2,225,000 (55.7)

Nepal
1,363,000 (100.0)
3,996,000 (100.0)

Figures in the parenthesis show percentage.

earlier, the city of greater Kathmandu (i.e., including Lalitpur) should be allocated an annual population increase of at least 10 per cent. In the initial years this means absorbing about 30,000 persons every year. By the end of the century the total Kathmandu Valley urban population will be 1.77 million. Of this it is proposed that Greater Kathmandu will have 1.4 million with a population density of 250 persons perhectare. The remaining 370,000 persons will be distributed among satellite settlements including Bhaktapur. Kathmandu Valley towns will then share 44.34 per cent of the total urban population and Greater Kathmandu 35.04 per cent. After this period, the population in the Greater Kathmandu will be stabilised and further increase will be absorbed by compact settlements of the Valley.
In order that Kathmandu may continue to function as the regional/national centre and also build the absorption capacity to cope with the increasing population, it is essential to create jobs, build infrastructures, provide services and facilitate housing development. Kathmandu is already well within the national transport and power grid. The presence of national level services, e.g., Tribhuvan University, national level hospitals, and being the seat of the national Government as well as the entrepot to the outside world, there is no doubt that this role will be well assumed and maintained by Kathmandu in the future as well.This means the more pressing and urgent response should be city level management to cope with the increasing population. It will be relevant to discuss the existing urban conditions in order to understand the magnitude of the problems.
Problems and Issues of Urban Development
These are discussed in relation to housing, employment and infrastructures and services.
Housing
As nearly 94 per cent of the houses have permanent structures, shelter is not a major problem.A modest shelter can be built in around Rs. 15,000 affordable to the 30th percentile given the extended family system, free labour and self-help practices. Sanitation is a major problem. Only 5 per cent have private toilets. The core area housing 40 percent of the urban population does not have well maintained drainage. There is no storm drainage. Most of the houses are fast deteriorating. As the ground floors in the core area are being rented to low-income group at an affordable rent, the core area providesmixed-income housing. This pattern can be continued if urban upgrading programmes are effectively launched. 40 per cent of the population are living in the traditional core in houses of relatively good quality using only 10 per cent of the urban land. De-densification is taking place because of the deteriorating housing conditions. Being the part of the owner occupied houses dwellings are also in good conditions. This system of tenure and vertical stratification of income creates the most favourable conditions for the implementation of environmentalimprovement programmes with good cost recovery as households with varying incomes can be made to participate. In order to maintain the inner city area, a traditional urban planning approach has been used in the past which augmented the land consumption for housing. For instance, in the Kuleswore Housing Project, land was expropriated and landowners compensated at a very low price of Rs. 32 per sq. metre making the low density of 127 persons per hectare possible. Kuleswore is well located in an area of rapid growth. It has 661 new plots and 89 existing houses. Of the total plots, there are 158 numbers of 130 sq. meters, 191 Nos. of 195 sq. metres, 67 Nos. of 260 sq. metres, 219 nos. of 360 sq. metres and 27 Nos. of 400 sq. metres. Housing development schemes do not address the main issues of improving resource use, cost recovery, financial replicability and meeting the needs215 of low-income group.
Because of allocation of land in the urban fringe to low income group in the past by the Government, low income squatter settlements had been prevented. But now a small plot of unserviced land (50 sq. metres) on the urban fringe is not affordable below the 60th percentile. Land price is very high and land market is secretive. Neglect of inner core area, adoption of modern/western standards and the construction of the Ring Road have increased \urban land consumption. There are more than 1,000 families squatting on different parts of the city. If immediate action is not taken, there will be sprawling growth of squatter settlements.
Ownership of dwelling is of great value to the people. It provides durable assets with appreciations over time, social prestige, income if rented out, and help to take loans. More and more dwelling units are rented out meaning more and more people have no security of tenure. Multiple occupancy has also increased from 21 per cent in 1961 to 79 percent in 1977. Housing density has increased and space per person has decreased. An estimate showed that there was a backlog of 9,300 houses in 1981. The cost of dwelling units has increased due to rise in land prices.
Employment
The present rate of urbanisation is only 4.2 per cent.. There are sufficient urban jobs at present. However, with 10′ per cent annual increment in labour force, available jobs will soon be exhausted. A very optimistic urban employment projection is presented in Table 3. This projection is based on the assumption that urban investment will continue to be 15 per cent of the GDP till the end of this century. Employment generated in industry, power, transport, communication, services and commerce will be all urban generated in settlements with more than 10,000 population. The total employment at present is 384,000. The available labour force is only 171,000. In the year 2000, there will be a shortage of employment of 77,000.
TABLE 3 Employment Trend
In thousands
1985
2000
Annual growth
rate (%)

Total Urban Population
1363
3996
7.43

Total Urban Labour Force
691
2026
7.43

Total Employment generated
1406
2076
2.63

Greater Kathmandu Population
372
1400
10.00

Greater Kathmandu Labour Force
171
644
10.00

Greater Kathmandu Employment Generated
384
567
2.63

Source : PADCO/USAID, Urban Development Assessment , Nepal, Kathmandu, 1984, pp. 145-47 (based on).
Infrastructures and Services
Kathmandu Valley cities have relatively better urban infrastructures and services in relation to other urban areas. Within the Ring Road, there are 103 kilometres of black top road, 49 kilometres of gravelled road and 72 kilometres of fair-weather road. The total urban roads in the country are 275 kilometres of black top, 147 kilometres of gravelled road and 21 1 kilometres of earthen tracks. The problem is mainly the utilisation of the existing road infrastructures. The maintenance part is not well-coordinated with other infrastructural works. The 27 kilometre long Ring Road needs to be exploited by systematically planning for the development of suitable areas around the Ring Road. High density settlements within the Ring Road in relation to the existing transport network should be developed. Within the valley most of the compact settlements have easy access but yet more such settlements need be provided with easy access with Kathmandu. At the national level Kathmandu is well within the national transport and power grid.
Existing power supply in the Kathmandu Valley is 3.218 Megawatts (1982). The quantity of urban power in Kathmandu is adequate, although the standard of the quality is not maintained. Use of power in industry is limited and should, therefore, be extended.
As regards to water supply and sewerage, although Kathmandu has relatively better water supply and a modem sewer line has been recently constructed, the conditions are far from being satisfactory. At most places, water supply is intermittent with lots of leakages and contamination with ground water. Sanitation conditions arc very poor. A foreign aided solid waste disposal project is in operation but yet the major part of the city is not clear and people’s attitude needs to be changed.
There are 28,000 telephone lines in the Valley towns. The communication system of Kathmandu with other areas is good and improving very fast.
For the present, Kathmandu enjoys adequate essential services like health and education and people all over the country make use of these facilities.
Major problems of providing and maintaining various infrastructures and services are as follows:
(i) Lack of integrated action among various utility agencies : Urban roads contain a wide variety of utilities including water supply, tele-communication, sewers, storm drainage and power. There is no meaningful coordination among different agencies to avoid damage and disruption of road service.
(ii) Lack of a responsible agency for storm drainage.
(iii) Low density development, sprawl growth, and vacant land have led to inefficiency and costly provision of urban infrastructures and services. Absence of vacant land tax system and any mechanism to recapture unearned income have made the provision of infrastructures costly and cost recovery difficult. Land-use regulation and building by-laws have not been compatible with the provision of low cost infrastructures and services.
(iv) Lack of coordination of agencies dealing with infra- structures and services with agencies dealing with industry, agriculture has led to inefficient growth.
(v) Limited cost recovery.
(vi) Lack of maintenance.

(vii) Limited private sector financing.
(viii) Lack of evolution of proper and affordable standards.
(ix) Limited people’s participation especially in maintenance.
(x) lack of proper role-casting.
Evaluation of Urban Policies
This section examines how far the issues raised have been addressed by urban policies of the Government. Till early sixties, there had been no systematic urban planning efforts. The town planning functions in the Kathmandu Valley were fulfilled by the Kathmandu Valley Construction Committee whose actions consisted in building some basic infrastructures and beautification projects implemented whenever resources were made available. In 1963, Physical Development Plan for the Kathmandu Valley was prepared. This plan was never approved. The recommendations were predominantly physical and not supported by economic data. The next Plan, the Kathmandu Valley Physical Development Plan was prepared in 1969. This Plan was comprehensive but being rather ambitious could not be implemented. Regional development policies introduced in 1971 also de-emphasised investments in Kathmandu. The 1969 Plan is a traditional zoning map aiming at regulating land-use in the Valley.
However, the somewhat imprecise limits of the zones combined with the strict restrictions they brought on development made the Plan difficult to enforce. The Kathmandu Valley Development Plan J976, is a more accurate zoning and land-use plan. However, the Plan proved to be inadequate due to the following :
(a) It is control-oriented and did little to promote planned development. The Ring Road could not yet be utilised.
(b) The Plan failed to strengthen institutional set-up.
(c) The Plan failed to be action-oriented. More pressing problems remained unsolved.
(d) Integrated action of different line agencies could not be achieved.
(e) Resource mobilisation and development of self-financ- ing urban system were not given adequate attention. Cost recovery, affordability and replicability of various urban programmes were not considered.
(f) Maintenance aspects including maintenance budgets were neglected.
(g) People’s participation in development programmes were not considered.
Kathmandu Valley Physical Development Concept, 1984 also could not get rid of the above-mentioned shortcomings except that the need for developing land around the Ring Road was established. The concept is based on the population projection of the Valley in the year 2000 as 1,029,166. This presumption itself is not only undesirable but also unrealistic.
Strategies for Urban Development
The urban scenario given in section II clearly depicts that it will, by no means, be an easy task to provide housing, infrastructures and services and generate adequate income and employment to the population projected at ten per cent annualincrement. Urban strategies should aim to achieve the following :
(a) Substantial increase in political awareness among the local leadership and creation of local leadership for urban development programmes.
(b) Development of multi-level, multi-dimension and multi- sectoral planning process.
(c) Substantial improvements in inter-Govcrnmental working relationships on urban affairs.
(d) Integration of planning objectives with taxation, finance and law,
(e) Provision of employment, shelter, physical infrastructures and social services particularly to the urban poor by developing effective urban management system at the urbanlevel.
Realising that resources available for urban development are by no means sufficient to face the problems of develop- ment, it is essential to ensure affordability and replicability of various urban development programmes and maximum cost recovery should be aimed at. For this, the following strategies should be pursued :
(a) The tax base at the Nagar Panchayat level should be widened and strengthened and local level resources should be channelised to urban development efforts.
(b) The planning and implementation capabilities of the Nagar Panchayat should be strengthened. Replicable projects should be conceived, initiated, designed and implemented at this level. The Nagar Panchayat should have a very powerful and effective division on urban development which will not •only formulate action-oriented integrated planning process but -also ensure inter-agency integration and effective inter-institu- tional role-casting.
(c) Below the Nagar Panchayat level, people should beencouraged to organise themselves for improvement schemes and housing development programmes. People’s programmes •conceived at the ward level should be integrated at the Nagar Panchayat level. The participation of non-Govemmental organizations should be encouraged and facilitated. By encouraging people’s participation in planning, implementing and cost sharing, small projects can be replicated more easily with greater impact.
(d) A realistic as well as viable approach in the adoption of ■standards should be evolved and pursued. Land should be used as efficiently as possible.
(e) The movement from high cost, modern, high techno- logy, capital intensive, monumental and centrally controlled services to low cost, traditional, low technology, labour intensive, incremental and locally controlled services should be facilitated.
(f) In order to increase income, employment and hence affordability, emphasis should be given to intensive agriculture, small scale industries and tourism. But with the density of around 250 persons per hectare pulse institutional, commercial and touristic land-uses, most of the land within the Ring Road will be used. Land-use outside the Ring Road should, therefore, be judiciously decided upon. Industries could be located at suitable compact settlements of the valley. Diversification of tourism and intensive agriculture should be considered at suitable locations within the valley. These should be plannedin order to create jobs. Intensive agriculture, tourism diversification and cottage industry are three main potential areas where jobs can be created with minimum costs. Land-use implications of these activities should be clearly understood and the present trend of lavish/extravagant use of land should be totally controlled. Outside the Ring Road it is possible to control/conserve land-use by discouraging haphazard growth.

References
H.M.G. of Nepal, 1984, Kathmandu Valley Physical Development Concept , Kathmandu : Kathmandu Vally Town Planning Team.
H.M.G. of Nepal, 1969, The Physical Development Plan for the Kathmandu – Valley, Kathmandu : Department of Housing and Physical Planning. ,
H.M.G. of Nepal, 1983, Urbanisation and National Development , mimeo, Department of Housing and Physical Planning.
USAID/PADCO, 1983, Urban Development Assessment: Nepal „ Kathmandu,
World Bank, 1982, Urban Sector Memorandum: Nepal.

 

Introduction
For the purpose of this paper, the word “governance” is used to mean how the Nepali society as a whole and the people at large are being governed and served by the players of governance. The paper aims to relate it with constitution, rebuilding and international relations in the context of availing essential needs of the people. The recent developments are marked by the influence of governance where the key players have tried to define and manipulate it in the pursuit of their interests. The distinctive feature of the governance in contemporary Nepal is that the government along with other political players are trying to distort the market economy. Black market is being encouraged through government consumption with increasing corruption making the access to essential goods more inequitable. Leaders are not prepared for the implementation of the new constitution and elections thereto. Whether it be rebuilding after quake or the supply of limited goods due to transit problems at the Indian border, they looked for opportunities to enhance their role and the consequence was disastrous. Their perspectives have been related to generate fund for meeting the cost of governance and different levels of imminent elections. Credibility is lost in maintaining international relations. Even the friendly nations are not commiserative enough to the sufferings of the people of Nepal.
What made governance ineffective?
The year 2015 turned out to be not only disastrous but also remarkable with achievements as well as governance failure. Leaders saw the need for complying with democratic culture and the concept of decentralization embodied in the new constitution as something threatening. The cost of governance is increasing which made them hesitant in agreeing to a new constitution with many provinces. Due to inter-party competition for gold and glory, they tried to see their own position and looked for ways of appropriating the necessary funds. The guiding principle of federalism is distorted and the number of provinces became the issue as that is, according to their perception and modus operandi, linked with huge cost of governance. The idea of federalism is to unlock the potentials of different areal units of the country by allowing them to work with autonomy. Instead of developing synergy among the regions and unleashing their development potentials, the issue focused on raising conflicts and dividing the limited resources just to increase the cost of governing. We need federal states so that they will be less control of the centre in their attempts to develop their own resources by unlocking their potentials. Since the people have become so empowered that further centralization will be increasingly difficult. Leaders failed to understand this; but they were troubled pondering how to bear the cost of governance which they thought will increase with the new constitution. The overhead costs of running the government has been increasing in leaps and bound for some years and the implementation of the new constitution will incur much more cost if they opted to continue with this trend of governance. This has made the governance ineffective.
Consequences
The government (excluding the Army) was too slow to respond to the immediate consequence of the April 25 Earthquake. It was the earthquake of May 12 that the key leaders found themselves trapped in inaction, a situation quite threatening to all of them. The process of constitution writing in Nepal thus got momentum in the wake of earthquakes.The government played its traditional role of controlling development more vigorously for establishing its effectiveness and tried to centralize all the more. Sincere relief efforts were discouraged due to rules and regulations imposed. The immense power of the government in manipulating the governance that we observed during this time of national emergency and crisis is due to the power of political parties to defy law including the Constitution and use the public resources in pursuing their own benefits and make false propaganda. They are also reported to have resorted to corruptive activities and apparently are immune to any sort of action by the State. They left no stone unturned in trying to legitimize whatever they have been doing. This extended to international arena as well. Donors were not integrated and harmonized into the rebuilding process, and conflicts in the Madhes became an issue of security and integration. The concern centred on the supply of goods. They are now trying to pursue the people to believe that federal system is not good for Nepal. India who helped us during the time of earthquake will rethink its relationship with Nepal. The prerogative of the leaders to delay action is the greatest weakness that will make constitution ineffective. Immediate action is needed for making impacts of the good intentions. Sadly, the government is becoming more ritualistic, less welfare-oriented and more centralized on partisan lines.
Corrective Measures
There is no denial that we need a strong government but for this, governance should not be detached from the people. Nor should it be made more expensive at the cost of public good. Development efforts should not perpetuate bad governance but allow the economy and communities sustain their resilience. That the Nepali society along with its business community showed the coping potential for sustainability on its own, the new constitution should help planning for good governance in a strategic sense limiting the possibility of excessive control of the government and promoting desirable initiatives towards the necessary changes. Good governance requires that the government rely on the process of interest articulation. International relations can be strengthened only when there are reciprocal relationships. Nepal should contribute to peace and security as well as global environment.
The new constitution should urge the articulation of interests and for any action, consutlations, partnership formation, working together and inclusive decisions ought to be more frequent. This will make even a relatively weaker constitution work and evidence-based changes will get incorporated in the subsequent revisions of the constitution.

Conclusion
The recent Earthquakes with the exposure of our limitations in terms of good governance along with inertia that we showed in initiating the necessary changes have made it clear that there are lots of interests that deter any sort of planning towards good governance and initiatives for change. Constitution is not an end in itself, but is the fundamental law of the land that should help to create conducive environment for good governance and facilitate changes required for the transformation of the lives of the Nepalese people. The political players presented it too seriously and instigated the people towards anarchy and violence just for their own benefits. They allow things to worsen and intervene only when they can and only when there is their own interest. They manipulate the course of action to serve their interest. Constitution will have no meaning if all are not allowed to participate in the process of interest articulation. They used the people for making amendments to the constitution to their liking and when they did not see their interests being served they used power to suppress the popular activities.They encouraged disjointed and fragmented decisions within the government and got the freedom to speak as an activist even being inside the government which made Nepal weak in the international arena as well. While the cost of governance is increasing at an alarming rate and will increase still more with the addition of the federal structure, the system allows for participation and creates a mesh of desirable things and in choosing between there will not be enough time for the articulation of interests which leads to more costs of implementation. There is unfair competition between the private good and the public good; and the public good suffered all the more.
All these led to make governance worse and it has implications such as inefficiency in the rebuilding process, problem of demonstrating the inclusive nature of the new constitution as well as deteriorating condition of Nepal’s international relations. The solution lies in understanding that leaders instead of making governing a profit-making business, should work for the development of their constituencies by unlocking their potentials. They should learn to seek their identity through dedicated work for the welfare of the people and enhance the public good. They should stop meddling with international relations out of protocol, projecting a bad image of Nepal. Because Nepal has been contributing to international peace and prosperity, she is qualified for international support and not otherwise. Being the part of the governance, whether in the government or not, they should not impair the image of Nepal.

Published in
Nepal Council of World Affairs. Annual Journal 2016, February 2016, ISSN 2467-947x, pp. 51-53.

After the successful completion of the relief works, HMG initiated the rehabilitation and reconstruction works from September 22, 1988. A high power quake Rehabilitation and Reconstruction Committee was constituted under the Chair of Hon. Minister for Housing an Physical Planning.
The main objective of the Rehabilitation Plan is to reconstruct government buildings and public infrastructure and to provide possible support to the people to rebuild their shelter.
The scope of the Plan has been defined by the extent of damage under different categories.
Residential Buildings: About 65,000 residential buildings in 33 districts have been seriously affected by the earthquake making them inhabitable.
Infrastructure: The Plan does not cover the reconstruction of irrigation and power infrastructure which will be dealt by the concerned agencies. The damage of roads and bridges accounted for Rs. 1.56 billion. A T.V. transmission has been damaged in Biratnagar. Its reconstruction will cost about Rs. five million.
Government Buildings: The reconstruction of educational buildings will require about Rs. 100 million and that of health buildings about Rs 40 million. Other government buildings will require about Rs 150 million.
Community buildings and temples: The damage of Panchayat owned buildings and temples is estimated at Rs. 40 million.
Residential Buildings
This Plan is primarily concerned with totally damaged and seriously cracked buildings which are no more habitable. No special support program has been envisaged for affected buildings which can be made habitable after minor repairs. Housing loan and technical support are the elements for the rehabilitation of residential buildings.
Housing Loan Program
The amount and terms of loan for different areas are fixed as follows:
Rural areas: A maximum loan of Rs 10,000/- with one percent interest for the first Rs. 5000/ and 10 percent for the next Rs. 5000 will be provided for each totally damaged or seriously cracked buildings. Capital repayment will be made in six installments from the third year to the eighth year.
District Headquarters: A maximum loan of Rs. 20,000/- with one percent interest for the first 5000 rupees and 10 percent for the remaining Rs. 15,000 will be provided for each house. Repayment of the capital will be made from the third year to the eighth year.
Urban Areas (Nagar Panchayat): A loan up to Rs. 50,000 will be provided at 10 percent interest rate. An additional amount not exceeding Rs. 50,000 could be borrowed at current interest rates. Capital repayment will be made in six installments from the third to the eighth year.
Cash grant: A cash grant of Rs. 600 will be provided for each house on the condition that sulov latrine has been constructed. In district headquarters, sulov latrines are made mandatory and Rs. 600 will be provided after the construction of the latrine.
Technical support program: In order to ensure better quality of residential buildings the following provisions are made under the technical support program:
1.  More efficient and economical buildings designs will be prepared and circulated to increase technical awareness among the pople
2.  Demonstration buildings will be constructed
3.  About 800 to 1000 workers will be trained in th field of improved stoves, sulov latrines, production of building materials and low-cost building techniques. Training programs will include information on the construction of sulov latrines and low-cost sanitation practices, use of smokeless improved stoves, prevention from dampness and health related construction aspects, construction techniques for craftsmen, adoption of standardized doors and windows and low-cost construction techniques, information on architecture, mortar joints, foundation relating to prevention from natural disasters, Low-cost building design, using local building materials and use of improved equipments.
4.  Technical support will be provided for cluster development according to the approved structure plans for settlements. Feasibility studies will be conducted for the development of clusters.
5.  R and D programs will be launched to ensure the maximum utilization of local building materials. Production of building materials will be given priority. A cement tile production plant will be implemented.
HMG will play meaningful roles as specified below:
– reconstruction of government buildings
– rehabilitation of public infrastructure and services
– to bear the interest subsidy amd make necessary administrative and legal arrangements or th distribution of loan through commercial banks,
– to make necessary budgetary and manpower provision for the special project.
– to prepare low cost buildings designs and construction demonstration projects.
– to exempt royalties and local taxes levied on local building materials
– to disseminate technical information by constructing model house and develop improved construction techniques
– to increase the use of local building materials through R &D activities and also produce cement tile on an experimental basis.
– to grant Rs 600 for th construction of sulov latrines in areas other than town panchayats.
– to make building materials easily available in district headquarters
– to prepare norms and quake resistance measures.
– to give trianing to overseers and engineers working for the special project
– to arrange training programs for bank officials

Besides, the Plan envisages to ensure active participation of all the concerned agencies. The banking sector, the local panchayats and the beneficiaries are assigned different roles.
Commercial banks: The main function of th commercial banks is loan disbursement. The commercial bank will designate its branch and sub-branch offices to distribute the loan even up to the village level as per the needs. The bank will simplify its loan disbursement procedures and deal with the beneficiaries directly.
Local Panchayats and Class organizations: These local organizations will ensue the use of the loan in the reconstruction of the shelter. They will assess the local needs and make the information available to the concerned agencies. They will play an active role in information dissemination and help to conduct training programs designed to train local works.They will reconstruct community buildings. Thy will also help HMG in its evaluation work.
Beneficieries: As the main objective of the Rehabilitation Plan is to provide possible hlep to the affected people in the construction of their shelter, the burden of rebuilding the shelter lies solely on the beneficiaries. They will therefore mobilize the concerned agencies working for the rehabilitation. They will utilize the local resources use their family labout in the building constructio. to ensre the proper use of incentives, subsidies and techcnicl support will be the duty of each and every beneficieries. They will also disseminate technical information among themselves and promote mutual help.
International donor agencies: They can help HMG in the rehabilitation work in many ways. They can provide soft loan, cash grant and techncial support. Major technical programs could be communication support focusing on dissemination of technical information
In order to ensure the participation of all th concerned agencies and successful implementation of the plan, an organization framework has been designed and proposed for implementation.
Important deadlines of the Plan
Designation of Bank offices and prepararion of loan procedures Oct. 1
Start of loan disbursement Dec. 18
Preparation of quake resistant norms Oct 15
Improved buildings designs Oct 14
Orientation training for overseers Nov 4
Training on town planning for engineers Nov 7
Training for rural workers Dec 15
Locak level workshop February
Construction of model houses Dec 14
Start of dissemination Program Oct. 14

UKP_SriLanka

Presentation of Nepal Country Report made by Dr. Jibgar Joshi at the Urban Knowledge Platform organized by the World Bank in 2012 at Colombo,

Urban Planning for Safer Cities

Presentaion made by Dr. Jibgar Joshi in a training cum workshop program held in Kathmandu in 2007

Ecosystems are resilient and robust by nature. They have ability to adapt to any natural changes. They are not vulnerable to climate change. Whenever balance is at stake, what we call a natural calamity occurs to restore it. Most of human actions are factors unknown to nature. Due to our own deeds, we have become vulnerable. Natural fires occur in the forest to restore the balance. Air quality is maintained in the atmosphere through the carbon cycle.

We have changed natural ecosystems to fulfill the human greed. We have ignored the natural system. Through the exploitation of natural resources, we created wealth. We used it to create further conflicts between man and man and between man and nature. Our ability to adapt to climate change is at stake. Instead of harmony, we have created conflicts and disorder.

Working for peace is a solution to poverty. This is not same as conflict resolution as the latter gives further ways to create conflicts. Poverty eradication is possible when needs can be fulfilled, which in turn is possible only when we have means and resources to do so. The only source of our means is environment.

Sustainable use of resources is the best policy for the conservation of nature. It is related with the people. They use resources for their prosperity. The source of our achievements is natural resources. But people are divided into haves and have-nots.  Those who were lucky to get an early access to natural resources became rich. They used their richness to exploit others who were slow to harness these. This cleavage separates the rich from the poor. The rich created their own towns to be served by a large rural region. Through the functioning of the market that the rich has formed, they legalize their easy and cheap access to natural resources that the poor harness for their benefit.

In the process, the periphery developed the power because of growing disparity. They resisted the cheap supply of their labour and goods that they produce. This gave rise to conflicts. The social system that emerged failed to ensure the necessary cohesiveness. More and more people became excluded. This explains the root cause of conflicts anywhere in the world and in the present crisis that Nepal is facing. This also shows how conflicts are related with the use of natural resources.

As the rich found that the resources are depleting fast, they developed rules in such a way that their access to resources could be maximum. There are several examples to support this. The earlier restriction to tiger hunting in Nepal was guided by the fear that the rich might not have sufficient tigers to hunt in the future. CDM strategy is facing a serious pricing policy. How should natural resources be exchanged in lieu of money? What mechanisms are available to value resources? We have failed to get rid of market distortions despite an egalitarian policy on free trade. Conflict in the Gulf region was also related with the use of petroleum products. Conflict has emerged as we fail to deal with the public good. We indulge in private goods. The concept of a welfare state is never realized. We now talk of good governance. But the way we want to implement it is again the same. We teach others to practice it so that we still can rule with bad governance. The goal of good governance is to ensure access of the poor to resources and services created through the use of natural resources. Conservation is not possible in a conflict-ridden situation. Conflict has become a lame excuse to destroy nature.    

The sustainable difference between the rich and the poor nations is explained by the state of environment. Financial difference is due to the use of resources. It has led to the power differential. Environment has paved the way for a dialogue between the rich and the poor nations. Poor nations are asked to save it. They are not able to divert resources to reduce global risks. Flow of resources will help to conserve it.  But less money is available now for conservation, as lots of money is used to resolve conflicts. This has become truer after Sept. 11.

The problems of conservation in Nepal are also due to poverty. The poor depends on natural resources for their survival. Policies must widen people’s options for earning a livelihood. This is more relevant in fragile ecosystems. Skills and technology will help them to use resources wisely on a sustainable basis.

Equitable access to resources and sharing of the social costs of development makes development sustainable. For this, “Polluters Pay Principle” should be linked with the goal of conservation. The creation of communities at different levels is necessary to achieve it. It requires the involvement of more and more actors. The lack of coordination is a critical issue in pursuing the goals. We must improve it for conserving resources. It is much more important when we are for integrated development that is sustainable. Good governance creates channels of communication within system of actors and stakeholders. It can be used as a guiding force for integrated action for conservation. Partnership helps it. The Conservation Agenda should promote environmental governance at the local level. This will raise awareness on conservation. It is based on partnership that includes government bodies, private sector, academia, media, CBOs and indigenous people and families

Peace is a pre-requisite for development. The role of peace can hardly be undermined in conservation. In the context of emerging threats all over the world, Nepal has joined the world community to maintain peace and stability.

Nepal today faces the problems of poverty and land degradation. We are committed to reduce poverty. High population and rapid urbanization are other problems. Nepal has both prospects for and challenges to mountain development. Conservation strategies will not be effective amidst conflicts.  It is a sad plight that we are using conflict as a tool to destroy resources for a short run gain to be able to rule others. In the name of conflict, we take liberty to destroy it. During elections, most of the forest resources get used. Conflict has become a lame excuse for us to terrorize the masses and to use resources rampantly. This has impaired the relation of man with nature. The rate of increase of insecurity in Kathmandu is alarming. Before managing the green belt of the present ring road, we are hastening to build the outer ring road. People are led to believe that Kathmandu is safer than the rest of the country. Resources are being appropriated for the richness of Kathmandu. The ecological footprint of a person in a rural area is much less compared to the same in the city. We are destroying natural resources by encouraging people to come here with false hope. The concept of ecological footprints has underpinned the need of rural areas for making cities more sustainable. When will urban governance be prepared to realize the environmental costs of urban ways of life?

And we magnify the conflict in remote areas. We get more foreign aid. We can do simpler works only there. We can transfer the budget allocated to these places to be spent in Kathmandu. We bring resources from there to Kathmandu. Conflict has widened the gap between the rural and the urban areas. The frontier group  of the rural areas migrates to the city. Our development activities and our security both impair the environment. It impairs the harmony between the man and the nature. The prevailing nature-based culture and social fabric is exposed to erratic behavior of our security operation and post-conflict management style.

Siachen lakes are a classic example. It is the world’s largest mountain glacier, 70 km long, 5 – 10 km wide. It is shrinking fast. The number and size of blue lakes within the glacier are increasing.  In the words of Supriya Bezbaruah, army activities are hurting Siachen’s fragile ecosystem. The armies dump more than 1,000 tonnes of garbage every day. “This implies that man has succeeded in doing what all of nature’s fiercest forces failed to do over a million years – dislodge the glacier’s snow and ice which nourish the sub-continent’s rivers.” (India Today, November 1, 2004)

The debris in the Sagarmatha areas has become a burden. The Himalayan region is facing problems of land degradation and adverse effects of climate change. It is highly vulnerable because the mountains are young and fragile with steep slopes. Of late, it is affected by glacier lake outbursts and monsoon floods.

A study done by ICIMOD has shown that Khimsung glacier near Lirung glacier has shrunk in past 17 years. Lirung surface lowers by four meters every year. Its lower part is detached from the upper part. The debris-covered part is just a mass of dead ice, which is degrading rapidly. Surface lowering and terminus retreat is fast. There is a pond in front of the glacier. The large debris covered glacier of Khumbu the surface lowering every year by about two meters. Majority of glaciers in Kanchenjunga are also retreating.  The terminus of Rika Samba glacier is retreating by 10 m per year.

The consequences of glacier retreat are eventually formation of glacier lake and outburst flood of the lake. The study showed that there are 26 dangerous lakes including Tsho Rolpa (Rolwaling), Imja(Khumbu), Thuklaga (Manang) and Barun (Makalu).

People living in the lowlands face externalities created by the activities done in the highlands. This calls upon us concrete actions for the sustainable management of mountain ecosystem. Third, we should remain committed to implement global environmental agreements. We have to revert to sustainable ways. Our intervention should not make irreparable damage to the existing system. Nature and culture based heritage and social system have crumbled. These are the basis for creating social harmony and to deal with exclusiveness. To redress it we prepare some isolated programs at an exorbitant price. This way we will nourish conflicts instead of solving them.

We should understand the economic and political significance of conflict management. Conflicts survive as they generate more resources for the ruling class. Post-conflict management entails huge investments. There is lots of flexibility in their spending. People can make easy money. We are less responsible. They can be less accountable. One reason for perpetuating conflict is this. This does not serve a social purpose. Nor is it helpful for conservation.

Instead of creating fear, we should continue to work in conflict prone areas with dedication for creating cohesiveness. Conservation and development in a spatial context will help to restore peace dealing with conflicts and social injustice.  

Poverty must be considered as a state in which some or none of the needs are satisfied and the right to define one’s own need should fall under Human Rights. For a sustainable future, we are looking for a new type of partnership. Environmental problems move from country to country. The developing nations sincerely believe that the present plight was the outcome of the wrongs committed by the developed nations in the past.

Let us therefore not talk about conflicts. Let us concentrate on peace. Conflicts breed conflicts. We have to live with it. Instead of creating fear, let us concentrate on conservation and creation. This will help to bring everyone closer. Peace depends on complete harmony. If we start to redress the mistakes, more mistakes will crop up. Let us reconcile to our present and work for conservation relentlessly. The process of conservation and peace will resolve conflicts. Conflict resolution may not lead to peace. Many interests arising due to management of conflicts will breed other conflicts. As we devote ourselves to conservation, we will be able to harness resources and as conservation requires working together, inclusive ness and a closer relationship between the rich and the poor, there is hope that we get together. Otherwise, those who are out from mainstream, and those who are not happy, will always defy the rules made by others. They have more power as those who rule are using the benefits of conflict management as a means to suppress others.

URBANIZATION POLICY AND RESEARCH AGENDA FOR VIETNAM

JIBGAR JOSHI

This report is prepared to make the inevitable urban transition in Vietnam a good one unlike in other places. It is intended to raise issues that need to be dealt with to shape urbanization in Vietnam in a way that its socio-economic vision and environmental goals can be achieved. It will raise issues related to economic resilience, livability and poverty reduction. The transition in Vietnam should not be guided by the global economy as such. Its preparedness to exploit the external as well as domestic opportunities as a concomitant effect of the transition is critical. This report is organized in four parts. The first part gives a broad premise, some sort of an overall scenario where urbanization policy will have to stand and take roots. It is necessary to rely on the process of evolution and develop it gradually to the extent that it influences investment decisions. This part focuses on areas where there is already a substantial consensus among the development partners and stakeholders. It gives a general context and background and set a vision for 2020. The general trend and expectation in terms of poverty, good governance and sustainability are discussed in brief. The next part based on the premise, deals with issues, problems and challenges that will come in the process of policy building. Part III deals with the elements of urbanization policy and gives an outline of the policy based on spatial organization. Part IV is the main output of the report. As the policy outlined in the preceding part is very tentative, it identifies areas where further works, studies and research are required to make the urbanization policy relevant and effective for Vietnam.

PART I: THE GENERAL PREMISE

The growth pattern in Vietnam has so far been pro-poor. The size of the economy doubled during the period from 1993 to 2002. The population living in poverty has also halved. Both have 7% annual rate. Vietnam’s development during the last decade has been spectacular. This is mainly due to Dui Moi. Land use right certificates to rural people meant a transfer of wealth at a massive scale. This clearly indicates that the government policy has been fairly egalitarian. In order to sustain the pace of development, it is necessary now to create institutional base for a more egalitarian system. There is a clear indication that Vietnam is committed to move towards that direction. CPRGS has the following objectives, as for instance, Ensure grass roots democracy. Ensure budget transparency. Improve the income of the poor significantly. Improve the access of the poor to basic social services, production and resources. Expand the official social safety net (health) and diversify the voluntary safety net (schools, insurance for agricultural crops, agri-extension). Ensure job security. Resolve fully the problem of child labour and street children. Ensure that there are no slums and temporary houses in all towns and cities by 2010. Ensure that 100% of all wastewater is treated in all towns and cities. Ensure that 100% of solid waste is collected and disposed off safely. Ensure that air and water pollution comply fully with national standards by 2005. Provide basic infrastructure to 100% of the poor communes by 2010. Provide essential infrastructure, especially water supply and environment in poor areas in cities and towns. Besides there are targeted programs for the women, minority and disaster prone areas.” “The low hanging fruits are often harvested first.” (Forthcoming joint report on Poverty). Rural Remote Mountain may not be accessible. Poverty will remain mainly rural. Urban will have increasing share of the poor in the time to come. The future expansion will be less pro-poor. Industries are facing difficulties in being integrated with the global market (Vietnam News, Nov. 24, 2003). Integration with the world economy will help the economic growth poles but disparity in income earnings will increase. Moreover the market has made social goods more costly. There is a need to increase entitlements for the poor. The following points will briefly represent the current premise on which an urbanization policy should be based:

1. Integration with the global economy is necessary. It will lead Vietnam towards progress and prosperity. For this, its major cities must develop as strong growth poles in the ASEAN region. More than economic growth, Vietnam should be internally strong, powerful and dominant. It should have a resilient economy based on self-reliance and empowerment. (Douglas, 2001, 2002).

2. Urbanization is easily understood and accepted as an inevitable process. Policies refer to the urban vision where up to 45% of the total population will be living in urban areas in 2020. (Cour; CPRGS). Everyone believes that the urban population will be around 45% by 2020. But what constitutes urban is not very clear. Where the population will be located is also not clear. We may not be able to locate population as we like. Neither can we predict where the poor will be located. Only few of them will be living in big cities and industrial parks.

3. Recognizing that it may not be easy to locate them as the urban vision would like it to be, the research so far done on the subject seems to have theoretical bias. But yet, everyone agrees intermediate cities are the best locations for housing more and more people. It is not clear what constitutes intermediate cities.

4. Lots of research on the concept of poverty has been done. The measurement of poverty is complex. This is natural. We will not finish our exploration on the matter. Perhaps it is not good to dig deeper on the poverty of the poor. We will be finding ourselves on a bottomless pit. All we should know is that the increase in the relative poverty is not sustainable. Relative poverty as shown by gini coefficient by regions and within regions, for example, cities, rural communes, remote mountains, should be the basis for policy interventions.

5. Targeted pro-poor projects could have only limited impacts.

6. Urbanization should be studied at different levels. Every part of the nation is urbanizing in its own way. In the process, opportunities are created but they are not shared equally. (Douglas; Cour). Hence deliberate policy is required.

7. Costs of urbanization and ecological footprints have not been fully assessed.

8. Future costs of urbanization are likely to increase at a rapid rate because of depletion of resources. And livability of cities will decrease.

9. Urbanization policy should not be limited to what is generally understood as the urban sector, as it deals with population distribution in response to socio-economic opportunities that are created through pubic investment in national infrastructure, rigorous application of policies on trade and transit, industry, rural development, and investment. It should have strong influence by all economic sectors and by space at different levels. It should link space with investment planning.

PART II: ISSUES, PROBLEMS AND CHALLENGES

How can adverse impacts of globalization in terms of livability and poverty reduction be minimized in the coming years?

How can the integration process of the economy of Vietnam be sustained in the wake of growing competitiveness in the ASEAN region?

How should the long-term sustainable use of domestic resources and the impacts of globalization be considered in the process?

How can the space-economy of Vietnam be organized to achieve regional balance and exploit the potentials derived form rural- urban linkages? What are the spatial and environmental implications of poverty? Sustainable poverty alleviation will not be possible without understanding such implications.

How can rural economy be transformed? How should livability and sustainability be addressed in the management of urban areas, big cities, in particular?

How can a more resilient and vibrant economy be built at local, sub national and national level of development? Is it another manifestation of urban-rural linkages?

How can space be linked in macro-economic planning and investment decisions? How to produce social goods and make them accessible to the poor as the main source of entitlements? How can key industries be identified at different regions and protected against market distortions actuated by capital mode of production system? Should we protect? If yes, how do we ensure that we are not protecting unviable industries? How can coordination among agencies and sectors be ensured to achieve integration and institutional coherence?

Given the fact that urban transition will lead to a better economic performance, how can poverty be reduced through good governance in the transition? What opportunities exist for linkages and interactions between urban centres of different sizes and different places? What mechanisms can be developed for evaluating existing linkages in terms of growth, equity and sustainability? How can the opportunities created by urbanization and rural-urban linkages be enhanced?

PART III: URBANIZATION POLICY

The pattern of urbanization process as will be witnessed in the future will give a holistic picture. But development approaches are difficult to be interwoven into an integrated whole. It is therefore pertinent to look at the elements of the process. At least six important elements of urbanization policy could be identified. They are as given below:

ELEMENTS

For presenting it as a cross-sectoral multi-dimensional and overall spatial policy, it is necessary to identify the elements of the policy on sustainable urban-industrial development. These should include the following:

• Space: spatial planning framework
• Poverty alleviation and socio-economic vision
• Integration and Economic Resilience
• Investment planning, city marketing and lead activities (different regions should specialize in different activities with strong economic linkages and multiplier effects)
• Environment and sustainable development

Institutional arrangement and good urban governance including infrastructure and service provision

SPACE

Spatial planning framework should consider a multi-level planning system that includes: National level Regional level and city regions (the concept of a region as a economic planning unit is losing favour amongst development planners) Provincial Level and urban regions Urban level and rural regions Village level. The framework should be based on Urban system, city size and population distribution Inter-city relationship Rural-urban linkages Managing urbanization should be dealt at different levels: Growth poles for the global economy. Growth poles as engines of national development for directing national development with emphasis on poverty alleviation, economic resilience and livability. Growth centres at different levels for regional development and for linking different areas including rural and urban areas through city regions, intermediate cities, and local growth centres like industrial parks etc. Urbanization policy should help to create spatial system integrating different spaces together, urban and rural areas in particular. Urbanisation policy should also articulate the role of urban centres as follows Service centres for rural areas (system/hierarchy of urban centres provides an excellent framework to locate different hierarchy of services (example from health post to hospital) across the nation in a more cost-effective manner) Non-firm employment (not necessarily in cities and towns but in rural environment): This is very important. As the rural economy transforms from subsistence to a mechanized one, rural labour force will be released from agri employment. Urban productivity is much higher than rural productivity (everywhere in the word). In this sense urban economy could generate extra wealth a part of which can be used to finance rural development.

RURAL-URBAN LINKAGE:

Urbanization can be used to reduce the dependence of big cities on external resources. It can release people’s initiative towards productive enterprises for generating such resources. The linkage potentials available at small towns are much more difficult to tap. Urban centres should also serve the hinterland from where resources are drawn for the urban consumption. It seems the potentials of rural urban linkages are not well understood in Vietnam like in many other transitional economies in the region. The development of rural areas will depend on the urbanization through the creation of non-agricultural jobs and modernization of agriculture. Through the process, wealth will be created for further development. The same area will be able to hold more people. Through urbanization, the peripheral conditions within cities can also be improved through the creation of intermediate cities against further concentration in bigger cities. The integration of peripheral regions will increase the size of domestic market and also raise the national output. Inter- space disparity can be reduced, when backed by self- reliant policies at the rural local level. The synergies of the relationship should be exploited. Poorer regions will not be able to spend in social overhead capital. They are less attractive for private investment. Improved public investment programs. Unemployment level is very low. Social good are also located in urban spaces. They also need infrastructure and services. Cities are not just export driven industry. They should care for low-income settlements and provide dynamism and vitality.

POVERTY ALLEVIATION AND SOCIO-ECONOMIC VISION

Poverty alleviation should be the most important goal of urbanization policy for the following reasons (economic growth is essential for poverty alleviation, not that we can achieve the latter when we achieve a high growth rate. I suppose there is a trade-off between the two and that is where lies the crux of the problem) This is the most influential Vietnamese Vision type of the thing This is very much related with MDG. As it is not adequately linked with Urbanization; location specific response at different levels is required. Calorie-based poverty line will have decreasing influence as the relative disparity increases. It will be in the interest of the market to satisfy the basic needs of all and pretend to have full employment for ensuring industrial growth. The poor will soon be concentrated in overcrowded villages and big cities not able to produce new entitlements as demanded by urbanization. A safer way to deal with poverty may be to relate it with the ability to satisfy needs and aspirations, or put it bluntly, ability to achieve what people want or need. They should however be based on the assumption that human beings are honest, good by nature and do not like to create externalities on others to suffer. It is our institutional shortcomings that people especially in urban areas while dealing with this common property have to be too competitive and rather dishonest in using the common property that externalities just crop up. This implies dealing with poverty should also be linked with good self-governance. By fulfilling their needs, the ability of others should not be diminished. Ability of all to satisfy their needs can be ensured if globalization could be made to produce adequate social goods. What used to be difficult to produce two decades ago has become much simpler, for example food. The global market can produce most of the basic needs much easier. Instead of dealing with poverty directly, Vietnam should be committed to produce alternative forms of entitlements for the poor in the face of rapid urban transition – produce social goods and make them easily accessible to all in an equitable manner. The spatial implications and meaning of poverty is thus critical. This will direct the future pattern of migration. For understanding what poverty should mean in the face of impending urban transition, the Mike Douglas’ reports should be very helpful. The poor will be located not only in isolated and remote countryside but also congested slums in the cities. If poverty alleviation programs had to be effective they must focus on the poor irrespective of whether they are rural and urban. Responses to allocate poverty have naturally to be situation specific. The joint report on Poverty based on seven RPA will be very much helpful. RPA helped to roll out CPRGS to provinces.

INTEGRATION WITH THE GLOBAL ECONOMY AND RESILIENCE

With the integration of the economy of Vietnam with the global economy, disparity has increased and further integration may lead to unsustainable ways of resource extraction. The process of urban transition and further integration will bring further development creating enormous wealth. For generating wealth, the existing resources of all kinds will be further exploited. The replicability of good things will be doubtful if more attention could not be given to environmental sustainability and social equity. A two-pronged strategy to shape the transition becomes plausible: To institute mechanisms for an egalitarian distribution of the generated wealth by increasing access of all to the created benefits. To closely monitor the costs of urbanization and to fully realize the costs. The first can be ensured by bringing all the people close to the development process. People should be made able to participate in the process. Their ability will depend on their assets and resources including skills, training, property and income. The second can be achieved through the use of urban development tools, including the following: Increase competitiveness in the supply of infrastructure and services, Equitable pricing and fiscal policies, Cost sharing using innovative approaches like land readjustment. Use of Multisectoral investment planning and the impact of investments on spatial form. Both of these have spatial dimension. And require the recovery of costs incurred in major investments in infrastructure. Cost recovery is important. Pro-poor social welfare programs can facilitate it. In the process of urbanization all settlements are urged to be upgraded.

SELF-RELIANCE AND EMPOWERMENT

Emphasis should be given to make the local economy stronger and more self-reliant. and more powerful. This is a precondition to reap the benefits of urban transition for further development. The focus of the policy will be to shape and manage the transition so that cities at different levels could be built to promote local development instead of exploiting the rural areas. A well articulated national urban system should be envisaged for shaping urbanization in Vietnam in order to provide equal opportunities to all. This is a condition for sustainable development ensuring poverty alleviation and regional balance. The policy should play a key role in empowering weaker and vulnerable section and communities to urbanize their rural areas rapidly keeping the cost of urbanization to the minimum. Over the last decade, it is clearly seen that disparity in bigger cities are much more compared to smaller settlements. Even if jobs are created there at relatively lower costs, jobs may not bring sufficient incomes for LIG to lead a life of dignity and basic urban amenities have become less and less affordable for this group. To measure only the monetary costs and income derived from the job and the financial costs of creating a job is not a sufficient criteria of investment decision in Vietnam.

INVESTMENT PLANNING

In order to link urbanization policy with investment, the concept of growth poles can be used. To sustain competitiveness, investments in growth poles must promote local potentials of associated region for autonomous innovation. Otherwise short-term experiences cannot be replicated. The strategy should aim at integrating local advantages with the global needs. Big cities attract investment. So they are growth poles. Major cities will function as the dominant growth poles to be the engines of economic growth in Vietnam. They should however be made to pay the due environmental prices for all the resources they draw from sub national regions. It is necessary that urbanization policy should influence investment decisions. Where to locate investments are more important. Rural urban linkages, urbanization potentials, are all linked with growth pole strategies. The goal is to exploit the opportunities created through the inevitable urban transition to activate the whole economy through building sustainable urban centres at various levels for the people of Vietnam.

ENVIRONMENT AND SUSTAINABLE DEVELOPMENT

For pursuing these goals, it is necessary to understand ecological footprints and the concept of limited goods. Externality should be strongly dealt with. Land itself is not given any value in economic cost benefit analysis but the declining utility of land can be considered. Externalities should be measured. Environment linked with land needs to be considered. The cost of degrading land and associated environment. With the loss of natural resources, the total ability will diminish and absolute poverty will increase. Livability will decrease and relative disparity also increases. It is necessary to assess the environmental and social costs of urbanization and development Projects, which are feasible in the short run, will not be so in the long run. Big projects could have enormous adverse impacts on social welfare and environment. Environment is the most important part of sustainable development. Both the ability to satisfy needs overtime and ability to produce more depends on how far environment and natural resource base can be sustained. Urban management should create good working and living environment to the residents of the city. It should deal with externalities like pollution

GOOD URBAN GOVERNANCE

A very important element of an effective urbanization policy is the development of local institutions to ensure strong local government action. A fair distribution of wealth created by urbanization is possible only through good governance. The cost of urbanization and social impacts should be equitably shared and pricing of infrastructure and services should not exclude the weaker section. Good governance will help to provide: Equal access to social goods and services Enhance ability to satisfy needs over a longer period, Entitlements in the form of technology, knowledge, skills, assets, social goods, and Equal access to environmental resources

URBANIZATION POLICY

The policy outlined below is linked with spatial organization. At different levels, priorities will change and mechanisms for synthesis and integration will also differ. NATIONAL LEVEL: The national economic performance will depend on the functioning of the major cities. They are HCMC and Hanoi in particular. These major cities tend to serve as the periphery of the global system. They supply the necessary inputs that the global capital demand. While serving as the periphery to the global system they bring sufficient capital to the country. The capital transfer can be increased through their competitiveness. They should be developed as good locations. HCMC has one third of the national production. Nearly 100,000 people migrate to it every year. It has spatial polarization increasing. The density is 23,000 and in some crowded places even 80,000 per sq. km. These should be made to function as growth poles in the ASEAN region. They should at the domestic front be the engines of growth. Investments should aim at transforming them from periphery to growth poles in the global system. At the same time the social and environmental impacts of big investments should be known. Ecological footprints and externalities should be worked out. In order that these do not help to drain out the resources out of Vietnam, as the engine of growth they should be made to play a lead role in the transformation. For this they should be more closely linked with sub national region to use the urbanization potentials. They should play a key role to build up a resilient economy. Infrastructure and services should be linked with competitiveness for the global market, developing satellite towns and the formation of city regions will provide adequate green areas in between nodes for livability. Growth poles will link the domestic potentials of Vietnam with the global market. HMC and Hanoi are the growth poles in the international arena to produce social goods. They have to be significant and be able to supply the basic inputs for the proper functioning HCMC and Hanoi are the growth poles in the international arena to produce social goods. They have to be significant and be able to supply the basic inputs for the proper functioning of the global market. But all these resources necessary for the global system cannot originate only in these poles. While there are no ways to immediately change policies so far as FDI or SOE are concerned, it is possible to lay down rules for their operation so that regional planning within the national boundary may play a positive role. This is necessary for sustaining the competitiveness of Vietnam in the global arena. Otherwise big cities will not be sustainable. Livability will dwindle rapidly and economic resilience will diminish. Along with the creation of jobs, adequate attention should be given for improving the living and working environment of low-income group. To sustain their competitiveness in the global market, they should be able to tap internal resources on a sustainable basis. This will help to ensure resilience.

REGIONS:

Whether dealing with poverty or economic growth, national aggregates do not make much sense. At the regional level, along with the poverty analysis, resource potentials and comparative advantage should e more fully ascertained, For each of the regions, Vision 2020 could be envisaged to ensure that regions do not compete among themselves but complement each other through functional specialization to present Vietnam as a powerful economy in the global market. The works of MOC should be integrated with the investment planning and priorities. The identification of key sectors with high multiplier effects and development of infrastructure and services for enhancing the performance of key sectors should be the basis of regional development. Natural resource management and identification of resource regions is a critical element at this level. Integrated vision 2020 in terms of poverty and resource use should help to use synergies.

INTERMEDIATE CITIES:

These are considered as appropriate locations for absorbing migrants for new urban development or extension and for locating activities critical for establishing rural urban linkages of different forms. They are medium sized cities, good for resource exploitation. The potential could be easily tapped. As city building is a dominant economic sector by itself, vast urbanization potentials could be stored here. As focal points for rural urban linkages, diffusion of technology, innovation, and technical vocational schools and as centres for new types of entitlements, they should be developed. People can be led to participate in the whole process using innovative tools like land readjustment, action planning. They should be designed as zero poverty zones. They provide skills for urban jobs. All these demand strong local governance. The tools for synthesis here are multi-sectoral investment plans, integration of environment, infrastructure and population into a spatial plan. Rural urban linkage is important. They should tap that part of the migrants who would otherwise land into sprawl settlements along the road or in slums of congested areas of big cities. Intermediate towns and small towns will help to release opportunities due to rural urban linkages. Self-reliant, sustainable enterprises with good multiplier effects and linkages should be identified at this level. These should be capable of establishing functional linkages with other economies. There are 61 provinces. The spatial basis for their development will be smaller cities and urban regions. Community development and integrated actions are important at this level.

SMALLTOWNS:

They are to be developed as local growth centres with the objective of creating local self-reliant communities. They will play a key role in the development of local economies. Industrial parks and local growth poles (Cour) could also describe them.

RURAL URBAN LINKAGE: Linkage potentials are real. By integrating rural and urban areas, opportunities coming out of urbanization can be tapped. They are generally undermined and overshadowed by the capital mode of production system. Market distortions and pricing policy generally make rural goods comparatively cheaper and urban areas are made to exploit their rural counterparts. Exchange of resources, flow of goods in equitable manner and environmental accounting are the right policy options. Investment should be complementary. Investment made in urban areas should provide urban amenities, markets for the benefit of rural people. Smaller regions like rural regions should be considered to deal with self-reliant communities. Placement of services and infrastructure make them accessible to the rural people. Mixed land use, rural regions in between settlements should be thought out. Rural urban continuum should be the basis of policy intervention.

PART V: RESEARCH AGENDA

BASIC RESEARCH

• Research on migration and population dynamics in line with Cour’s work. This should analyze census data and show changes with a view to reflect spatial differentiation in income earnings and should help understand the changing space economy of Vietnam as it experiences intensive urbanization.
• Research on policy adjustment and integration of urbanization with respect to current polices on industrialization, rural development, poverty alleviation and infrastructure development

POVERTY AND ENTITLEMENTS (AS MEANS OF EMPOWERING THE POOR AND VULNERABLE)

• Research on the urban poor — their living, working and economic conditions, employment, health, nutrition, community organization and their participation in city building process.
• Research on assessment of urban skills, other sources of entitlements for local empowerment and community building to make the development process local need based and community driven.

URBAN MANAGEMENT, FINANCING AND GOVERNANCE

• Research on urban management in terms of service and infrastructure delivery relating also with affordable standards and access and pricing polices.
• Research on urban financing including land readjustment, land development, infrastructure provision, cost recovery
• Research on institutional development to create strong local government ensuring good urban governance through transparency and accountability. It should cover decentralization. Research on good practices and learning regions.

ENVIRONMENT

• Research on pollution control and sustainable urban management. Research on ecological footprints and externalities

REGIONAL BALANCE AND LINKAGES

• Research on spatial balance to address how can urbanization avoid concentration in one or two mega cities and is protected from adverse workings of the world economy.
• Research to address how HCMC and Hanoi retain their competitiveness in the global market while contributing to a resilient economy. In the context of sustainable development, how far is the integration with the global economy a sustainable proposal?.
• Research on urban-rural linkages of all forms and economic, environmental and demographic linkages in particular.
• Research on the role of cities and towns for spatial balance and linkages.

ECONOMIC LINKAGES AND MULTIPLIER ANALYSIS

• Research for the identification of lead activities just like crafts and industrial villages. Are they sufficiently propulsive?
• Linkage analysis and multiplier effects.
• Impact studies of major infrastructure investments on wages, prices and income. Also environmental impacts.

Besides research should address the following:

• Redefining poverty with its spatial implication and also poverty as being exclusion and marginalized from development process.
• Whether urban rural potential is a myth or reality incase of Vietnam.
• Assessment of use of opportunities created by urban transition and rural urban linkages.
• Assessment of local institutions, political interests, potentials, assets, resources, and other entitlements for making a break through in the development of local economy. Are infrastructure and services being allocated in a manner that is likely to match economic growth potential at different levels? Which location and types of investments are most likely to succeed in winning global investment manufacturing?
• Criteria to check whether the projects as a whole constitute an integrated investment cum spatial plan. What are the unintended cross-sectoral and spatial impacts of development in each sector?
• Impacts of longer terums spatial development on the resilience of the national economy.
• Impacts of Foreign direct investments (FDI).

As a first step in research, it is suggested that an urban region be selected to study the following: Natural resources and changes in land use Rural urban linkages Lead activities and regional investment pattern Changes in spatial form and settlement system Poverty and population dynamics Emergence of growth centers and market towns Cost o providing infrastructure, services and housing Alternate forms of entitlement, ( e.g., vocational training,. urban skills, information) Urban development and land readjustment projects Provision of infrastructure and services and governance Based on the output of this initial research, research agenda given above can be refined. The agenda for research will help to facilitate debate and consultations. The research along with the debate and deliberations that will take place in the consultative forums at different levels and definitely in the meetings of Urban Fiorum will help to continuously improve the urbanization policy for Vietnam. It will also sustain the policy as a powerful tool for guiding investments in Vietnam, whether foreign or domestic, whether private or public to achieve the socio-economic vision of Vietnam.

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Regulatory framework