US $ 356 for UN Habitat program

From Rodney MARTINESZ in Nairobi

The United Nation's Habitat program received USD 356 million at the just concluded 22nd sessions of UN Habitat's Governing Council in the Kenyan Capital of Nairobi. Although the quantum of funds was modest considering that the membership counts for 58 countries depending on funds for their shelter program, in the wake of the global economic recession this was certainly a boon according many delegates who attended the summit at the sprawling UN compound offices in Gigiri Nairobi.

Ban-ki-Moon

Anna Tibaijuka

In fact the US dollars 356 million in the kitty was a veritably windfall for the apex body of the UN system concerned with shelter and settlements across a wide spectrum of countries mostly impoverished states woefully lacking in housing.

Financial gloom

This is particularly so given the overall bleak financial outlook in the wake of the global economic melt down. It is against the backdrop of this financial gloom that UN Habitat held the meeting of its Governing Council in the Kenyan Capital, attracting delegates from over 100 countries for the week long sessions which who held from March 30 to April 4.

There was initial pessimism hanging in the air on the outcome of the event especially as the world was going through its worst economic recession in living memory. The 22nd UN Habitat Governing Council meeting was held under a cloud amidst the unfolding development with severe cut backs looming on UN Habitat programs.

That it was able to squeeze out a financial commitment of more than 30 percent obtained at the last sessions no doubt augers well for the UN's ambitious global housing program that would alleviate the conditions of the poor living in slums and those without shelter.

The Governing Council meets every two years to examine UN Habitat's work and relations with its partners. It is a virtual Parliament which passes funds for human settlement programs in member countries. The biennial event is looked forward to by most countries with ambitious housing programs for generous funding. But the mood this year was decidedly sombre with the pall of the world financial crisis hovering over the deliberations. This mood was reflected in the message of no less a personage than the UN Secretary General Ban-ki-Moon, to mark the occasion. "There is a risk that our efforts to meet the Millennium Development Goals and to address the shelter crisis will be rolled back". At the Millennium summit convened by the United Nations, member states endorsed the Millennium Declaration whereby explicitly they expressed their commitment to promote development, eradicate poverty, to foster human dignity and equality as well as to achieve peace and stability. The Secretary General also said he had been urging industrialised countries to ensure that national stimulus packages pay due attention to the needs of developing countries.

It was pointed out that funds spent by Western Governments for stabilizing economic and financial systems in industrialized countries are much higher than what is normally spent on development cooperation - the peak of $ 100 billion of official development aid was reached in 2005 and has declined in the following years.

Consequences

Speaker after speaker at the UN Conference Hall expressed grave concern on the future of the human settlement programs now in the pipeline especially given the instability of the micro finance housing arrangement that had hitherto sustained the UN's Habityata program, in the wake of the current credit crunch. Delegate from Bahrain Dr. Dafer Aljalahma Deputy Minister for Housing noted that the crisis will no doubt have serious consequences for availability of resources for social services and private capital to finance improvements in housing, basic infrastructure and services. "Countries all over the world are now reviewing their plans and strategies in the light of global economic and financial crisis.

UN-HABITAT Executive Director Mrs. Anna Tibaijuka also outlined how the global financial crisis affected housing worldwide. "This year our meeting takes place at a time our world is mired in the worst economic crisis in living memory.

The origin of the crisis lies with a housing finance system gone wrong", she said referring to the US experience which triggered the collapse, adding "lessons learnt from this experience must inform our housing policies and strategies."

The problem in many developing and even some developed countries is not that housing is too expensive but that incomes are too low. This requires establishing an efficient housing finance as well as reducing the production and delivery cost.

It is estimated that close to 3 billion people or 40% of the world's population by 2030 will need to have housing and basic infrastructure services. This translates into completing 96,150 housing units per day or 4,000 per hour. Will the current financial imbroglio permit such an undertaking?

Kenyan Vice President and Home Affairs Minister Stephen Kalonzo addressing the delegates said "promoting affordable housing finance systems in an urbanizing world in the face of the global financial crisis and climate change will only be sustainable if we put in accountable,transparent and professional mechanisms and systems of dealing with the issues at hand in place. Rapid urbanisation has also exacerbated the problem of shelter coupled with the effects of climate change".

It is estimated that there are 1 billion people who live in slums around the world. Slum prevalence is highest in sub-saharan Africa where 62 per cent of the urban population suffer from inadequate shelter, followed by Southern Asia 43 per cent and Eastern Asia 37 percent. The 22 General Council sessions is unique in that for the first time in the history of mankind the financial, monetary, economic food energy and ecological crisis concur in time bringing dramatic consequences different from those previous ones. UN Habitat's strategic goal is to improve access to sustainable financing for affordable housing and infrastructure. The 22nd sessions of the Governing Council agenda was for a better urban future for ensuring that the poorest of the poor in our towns and cities have a better hope for a better future. Hence the dialogue on the special theme of "Promoting affordable housing finance systems in the face of the global financial crisis and climate change", assumes significance.

Affordable housing and climate change

Host Kenya showcased the UN Habitat's slum upgrading projects. A short film during the proceedings depicted the Moonbeam Youth Empowerment program in the overcrowded Nairobi slum of Kibera. It is a project started with seed capital donated personally by the UN Secretary General. Some of the highlights of the week long meeting included dialogue sessions on affordable housing and climate change; the signing of partnership agreements with six financial institutions that would serve as pilot housing financing schemes.

Breakthrough resolutions were also passed most significantly being the one calling for governments to support UN Habitat's work on human settlements development in the occupied Palestinian territories.