Anacláudia Rossbach, executive director of the United Nations Human Settlements Programme (UN-Habitat), is visiting India this week. In an interview with HT, she speaks about critical urban challenges facing the world. She discusses the plans, investments, and systemic changes needed to address these challenges, as well as what India can offer as solutions to cities worldwide. Edited excerpts.
Air pollution, traffic congestion, water shortages, poor sanitation, and infrastructure deficits are serious concerns in Indian cities. How does UN-Habitat perceive these issues? Do you think India is adequately addressing these problems?
India is not unique in terms of facing these challenges. They can be seen in urban settings, especially in global metropolises, and in countries facing accelerated urbanisation without proper city planning or investment in urban areas. These challenges are common in the Global South, where high levels of inequality also exist. Where people have affordability gaps to buy or rent houses to live in good locations in cities.
UN-Habitat estimates that the global housing crisis affects nearly three billion people, including 1.1 billion in informal settlements. Where does India stand in this crisis?
We don’t have a ranking as such, but we are calling it global because it’s affecting most countries in different ways. We have 200 million people living homeless. And this is a feature you find in cities in the South and in the North.
Affordability is now a global issue. It’s more prevalent in the Global South, given the levels of poverty and inequality, the limited size of markets, and the governments’ limited fiscal capacity to subsidise and provide the investments and subsidies needed. Now it’s also affecting the Global North. In Europe and North America, you find people who are unable to buy or rent a house, or even stay in their own homes, because it is becoming unaffordable. The cost of living has become a strong political agenda.
Do you think India is adequately addressing the demand-supply imbalance in affordable housing?
Let me respond from a global perspective. I think the systems in place across different countries aren’t working at all. The financial systems are not working. The way we have been planning our cities has not worked. We are growing more in territory than in population. Our urban footprint is expanding, and perhaps it’s not necessary. The result is pressure on natural resources. Cities are facing problems like droughts… cities such as Bogota, Cape Town, Mexico City, you name it… fire, flooding, landslides, and other climate-related events. We have to recognise that land has an ecological function and respect it.
We need to plan our cities for the people, so that everyone can equally access jobs, social services, education, healthcare, and culture and leisure. Also, the newcomers should be able to access everything a city has to offer. We haven’t been planning for that.
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We have to review how we plan our cities. We have to ensure investments in urban development, housing, and the transformation of precarious areas so they gain centrality in domestic budgets and public investments.
At the Seville conference last year, we looked at international financial architecture and how to improve subnational finance, ensuring it reaches the ground where people need it.
And that the subsidies and incentives available are balanced and cover the affordability gap I mentioned. There is a need for investment and realignment in finances, domestically and internationally.
Where are these finances going to come from?
Housing is expensive. I think this is one area where India has a lot to contribute. Each country and region has a different context. We have to build on the possible models and identify which ones we can use.
I don’t believe international finance will solve all the problems that we have in urban areas and housing. It’s important to develop domestic financial models and systems. But again, we cannot copy and paste. We have to look at the country’s capacity for savings and how much people can afford, assess the fiscal space available, and use that to maximise subsidies and incentives.
Investments in cities and housing work as a multiplier, generating local economic development and contributing to GDP. Many countries have historically used housing as an important input for the GDP. European countries after the Second World War. China has used housing as an economic engine. Brazil has used housing as an economic counter-cyclical measure after the (global financial) crisis in 2008. So, the multiplier effect, job creation, and the entire value chain can generate additional resources to address the gap.
The lack of affordable housing has led people to seek shelter in informal settlements. Based on your experience with slum upgradation in Brazil, what would you say is the best way to transform these neighbourhoods?
One critical aspect that Brazil recognises is that land has a social function… and the reality of slums. So, slums have been embedded into urban plans as an intrinsic part of the city.
There have been massive investments in infrastructure, such as sanitation, drainage, housing, and public spaces, as well as cultural spaces and social services in slums. Many cities have improved the connection and integration of slums into the cities. In metropolitan areas, mainly large-scale projects have been developed with high success rates.
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At the UN-Habitat member states meeting in Nairobi last year, one outcome was a set of policy recommendations for transforming informal settlements, which align with the example I gave. First, map these informal settlements, understand their dimensions, and plan for and address them in planning and investment. But most important is working with people and community-based organisations.
A critical element of these upgrades is to factor in climate adaptation and resilience, especially with regard to heat and flooding…
At UN-Habitat, we have been promoting nature-based solutions to address this issue. There are several experiences globally of extending green coverage and protecting water sources in urban areas using locally generated, more environmentally sustainable materials.
How can rural-to-urban transitions be managed effectively?
About half of the population lives in cities, and our estimates show that by 2050, about 70% will live in cities. This means about two billion people are coming into cities, especially in Africa and Southeast Asia. These are the regions where the urbanisation process is currently very intense and accelerating. So, cities need to prepare to receive the population. It is very important again that these cities have proper plans to maximise the built environment and the use of vacant and underutilised spaces.
In cities, we can look at densities in a balanced way to preserve city boundaries and food systems. We are expanding much more in territory than in population, and this is putting pressure on food systems and endangering the environmental resources we have.
We have to ensure that rural-urban linkages are strong because cities are gateways for the production generated in rural areas, as well as in the city. People living and working in rural areas producing food can get the education and training, access to technology, equipment, and information they need.
How do you look at India’s urbanisation? Are there any good practices or outcomes emerging from India’s urban space that could be useful globally?
India is extremely relevant to the rest of the world, and there are many practices we can get from India. Finance, for example. A vibrant civil society and a critical mass from academia. Experience from the local level to the national level. Innovative experiences, such as transforming and improving slums in Odisha, and the PPPs in Mumbai for redeveloping slums and informal settlements. You have housing programmes, several assets, and the trajectory of how technology can also improve access to services. So, there’s a lot from India that needs to be shared with the world.