4d2 Nutta`s presentation RNS[1]‎

Report
Continued effort to improve quality of life
of slum dwellers
In relation to MDG Target No 7d
Ms. Nutta Ratanachaicham
Community Organizations Development Institution (CODI)
MINISTRY OF SOCIAL DEVELOPMENT & HUMAN SECURITY
THAILAND
Thailand stance towards slum
improvement

History- focused on physical improvement
more than quality of live of slum dwellers
1992- began to involve slum dwellers in
decision-making and developing process. A
special fund for urban poor was created.
2003 – announced housing policy for lowincome ‘One Million House’. Launching of
people-participatory
slum
upgrading
program called ‘Baan Mankong.’
Thailand’s low income housing policy

‘One Million House Program’ launched in 2003:
- Building of new 600,000 housing units under the
National Housing Authority’s Baan Eua Arthon
- Slum upgrading of 300,000 units under the
Community
Organizations
Development
Institution (CODI)’s “Baan Mankong/Secure
Home Program”
- Another 100,000 units through the Government
Housing Bank’s financing scheme
(NB- Target of slum upgrading was later revised downward from 300,000
units to 200,218 units)
Baan Mankong: upgrading housing and
quality of life of slum dwellers
Approach:

- Poor communities are key actors in finding
solutions
for their problems, conducting surveys, planning and
carry out improvements to their housing, environment,
basic services and tenure security including managing the
budget themselves
- Government provides subsidy through CODI to partially
finance the project cost so as to reduce the burden for the
poor
- CODI supports community-based upgrading process by
means of financial and technical assistance
- Other parties also collaborate in the process e.g. local
authorities, NGOs, academics
Baan Mankong: sustainable solutions for
land tenure insecurity

Participatory Planning:
Several solutions have been reached through
negotiations between land owners and slum
dwellers. For example;
- minimum 30-year lease for state-owned land
- land sharing between private land owner and slum
dwellers
- relocate to new plot legally acquired by slum
dwellers
Baan Mankong: physical and social
environment upgrading

Community Participation:
Once land tenure issue is dealt with, people are eager
to improve physical conditions of their housing and
surrounding environment;
- newly built or reconditioned housing
- upgraded infrastructure; wider paths, proper
drainage, legal connection to tap water and power
grid
- community center, welfare house, playground, etc.
City-wide upgrading involves several actors in finding most suitable
solutions for urban poor communities in the city
On-site
Upgrading
Community
Row-house
Community
Land-sharing&
reconstruction
Flat
Detach house
Municipality
City-wide survey /
joint planning,
search for solutions
together
Find suitable
solutions for all
communities
in city
Reblocking &
readjustment
Flat
Other
dev.agencies
Resettlements
Row-housing
Mixed approach
New paradigm shift for pro-poor housing
development
1. Community organizations are the owners and main actors of projects
(surveying, planning, designing, savings, management)
2.
Shift from supply driven to demand driven
3.
Shift from construction project management to people process management
4.
New initiatives of land reform for urban poor
5.
Holistic upgrading process; integrated physical, economic and social
6.
improvement
City-wide development process involving all poor communities in the
city
Community Survey
Community survey of all households
In the community and all communities in the city
carried out by community people
การ
Housing Model : by Community
Flexible financing: making it possible
for the poor

Three main financial components are instrumental for
the success of the program;
- communities’ own savings of at least 10% of project
cost. Collective savings represents mutual
commitment and responsibility, and mobilization of
financial and non-financial capital.
- subsidy from the government of THB 80,000 (~USD
2,667) per unit to support costs of infrastructure,
management process, and housing upgrade.
- a collective loan from CODI, carrying terms which suit
the poor’s income conditions e.g. 15-year tenor, 4%
interest rate, monthly installments.
Providing Flexible Financial Support
for City-wide Upgrading by Communities
1)
Subsidy
from
government
~ 80,000 Bht./hh.
Upgrading of Infrastructure and Social
Facilities 35,000 – 45,000 Bht. x No. of Families

2) 5% of 1) for Local Management
3) Support for Community Exchange, Capacity
Building, Seminars, Coordinator
4) 25,000 BHT (Support Housing)
Members
Loans
From CODI
Revolving Fund
Interest 4 %
Communities
Members
Members
Max. 300,000 Bht./hh
Banks
(~ 1 us $ = 30 Bht.)
Budget allocation by government

Since 2003,each government has continued to support
Baan Mankong Program by allocating annual budget
to finance ‘subsidy’ portion.
From 2003 to 2012, THB 6,340 mil.(~USD 211 mil. ) was
given to slum upgrading program.
Results of Baan Mankong:
from Jan 2004 to Feb 2012

Number of approved projects:
Number of implementing cities:
Number of provinces:
Participating communities:
Household beneficiaries:
CODI housing loans (THB mil.):
897
293
74
1,664
95,032
5,188
Reconstruction Project : Klong Bang Bua

BEFORE
AFTER
Social achievements

Apart from improved housing settlement for slum dwellers,
Baan Mankong also delivers
- Legal and social recognition through proper house
registration, entitling access to several public welfare and
services
- Access to utility connection which significantly reduces
the poor’s household expense
- Strengthened community-based partnership, led to better
and safer society, less conflicts, less crimes, drug-free
- More job opportunities for adults, and higher education
for children
- Further development activities; community welfare, etc.
Economic achievements

Benefits to slum dwellers:
- Increased property values
- Income generated from project during
construction period
- More job opportunities
Benefits to government:
- Direct income from tax, rent, VAT
- Indirect income from growing economic
activities
- Reduced public expenses on healthcare, social
crimes, etc.
Indicators: Summary
•
•
•

Habitat quality – physical characteristics: newly built or reconditioned
housing
Habitat density – space available per person: Improved
Access to basic infrastructure / Utilities:
•
•
•
•
Secure tenure (ownership housing or rental) : Legal and social recognition
through proper house registration, entitling access to several public welfare and
services
•
•
•
•
•
upgraded infrastructure; wider paths, proper drainage, legal connection to tap water
and power grid
Improved access significantly lowered the cost of poor’s household expense
Safe and clean pedestrian access; access to public transport
minimum 30-year lease for state-owned land
land sharing between private land owner and slum dwellers
relocate to new plot legally acquired by slum dwellers
Gender dimensions : Safer environments for children and women
Vulnerability /resilience to climate change impacts: Improved conditions
Conclusions

 Specific
 Target of 200,218 housing units
 Measurable
 95,032 units have now been upgraded
 Achievable
 Conditional on government continued support
 Relevant
 National economic and social development plan
 Time-Bound
 Reviewed periodically
Baan Mankong in
Chantaburi Province
BEFORE
AFTER
Housing cooperatives of the Rafters in Pitsanuloke

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