Catalog

	Table of Contents
p. 17 of 26 BACK | NEXT Executive Summary I. Introduction II. The Urban Sector III. The Bank's Involvement in the Urban Sector IV. Objectives and Policy Priorities A. Urban Development Objectives B. Policies for Promoting Urban Governance C. Policies for Mobilizing Financial Resources D. Policies for Improving Urban Management E. Policies for Reducing Urban Poverty F. Policies for Urban Subsectors V. The Bank's Urban Sector Strategy VI. Implications for Bank Operations VII. Conclusion

Urban Sector Strategy : IV. Objectives and Policy Priorities

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E. Policies for Reducing Urban Poverty

92. While the growth process in most DMCs may not have been as equitable as desired, it has led to significant improvements in the living conditions of the urban poor. However, the benefits of “trickle down” economic growth can not be relied upon to eradicate severe and absolute poverty in the next several decades. Instead, explicit objectives must be identified and consciously incorporated in development strategies to reduce the level of urban poverty. The key strategies are as follows:

1. Implement integrated poverty reduction programs. Physical, economic, and social components should be combined to have the greatest impact on reducing poverty, with a focus on improving quality of life. Attention should be placed on improved access to basic social services, and on related issues such as addressing the needs of vulnerable groups such as women and street children. Infrastructure and service projects and pricing mechanisms should incorporate policies to ensure equitable access to urban services at affordable prices for the urban poor.

2. Improve access to microcredit. Broadening the opportunities for the urban poor to gain access to microcredit will ensure that the potential business acumen for the poor is fully realized, generating beneficial impacts in terms of economic growth and poverty alleviation.

3. Strengthen gender equity. Empower women through facilitating their equal access to education, health, job opportunities, land, and credit.

4. Develop partnerships of local and provincial governments, central government, and communities. The energies and commitment of the poor will be harnessed only if communities recognize a general commitment to community-based participatory programs with real resources and shared decision-making. Awareness building is needed to help engender between all parties, the strong element of trust that is necessary.

5. Develop a policy framework. The direct approach uses the availability of land, employment generation, human resource development, and population growth control, and relies on programs aimed directly at increasing the incomes of targeted families. The indirect approach requires the incorporation of explicit policies into growth strategies designed to reduce poverty. The indirect approach has an obvious appeal to many economically hard-hit DMCs at present, but will be severely constrained by budget considerations.

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