This week I started a project in my Human Geography class that focuses
on redesigning an international city. I chose to look at Urban
Development, and more specifically at slum prevention and then viable
alternatives for future growth. The language of the universe is written
in mathematics, from the interaction of particles at speeds near light
to stars slowly (or at least relatively) orbiting one another. A
statistical model can describe most of Human interaction and behavior
that we call economics, and there is where I first turned. History tells
us that there has rarely been an event where frugality didn’t play the
key player and economics confirms that people look for the solution that
is most viable with the highest profit for the party in power.
The question on the surface is what is the best solution, but ‘best
solution’ is a subjective question. Everyone has an agenda, whether they
are a high school student looking for a solution that improves foreign
investment, gender equality, and human capital or a city planner looking
to level the highest profit for the city or a slum dweller just hoping
for a better life and better access to water. Obviously, leveling all
the slums, building high rises, and shooing the untouchable further from
the city center would be the most profitable for the city, but there
isn’t a way that they could do that. Alternatively, they can’t invest
their entire budget into the slums to bring them sanitation, bathrooms,
water, and transportation systems. So what is the happy medium?
Well, first what are the main problems in the average slums today? And
since this is a Gender publication what are the largest gender
inequality issues? Slums are large expanses of land that are developed
by migrants from the rural countryside to find jobs in the city.
Generally, they aren’t looking for riches but a chance to survive. They
build homes out of wood and cardboard. The average home size is about
the size of half an American car parking space with an average house
size of six to twelve members. In some house the members sleep on their
sides and they almost fit. Sanitation is a huge issue, and women
especially feel this, with few bathrooms that have constant lines and a
surcharge per use and non-existent hygiene stations like sinks for hand
washing. Most children just use the restrooms in the makeshift slum
streets that run with water from the crowded and dirty water pumps that
serve about 100 to a 1000 people each. Women are hard hit in these
situations and are the first to feel the effects of poor sanitation
through high birth-mortality rates, higher fertility rates, and little
access to proper health care to boot.
In my project I followed the model that India is champing and combining
it with western tax & property policies. The city I chose was
Cairo, but I found that most developing cities are facing the same
problems and that the solutions are more or less universal. First, land
needs to be privatized to get anywhere. After that, there are a few
roads that one could go down that could lead somewhere positive, the
road I took was one where the city government and foreign investors came
together to create change through free market competition. India
champed this model, in a way; they would sell existing slum land to
investors and give current inhabitants a lease in the building. In my
model the land was sold anywhere from 16th to 1/3rd
free market value, which would be rather high for land with that
proximity to the city center and to charge an impact fee that would
bring the sale price to about 2/3rds to 4/5ths the
free market value. The impact fee would be used to purchase leases for
1.5 times the amount of space that current inhabitants previously
occupied. Money would still be left over after those leases were paid
and could be used to cover the cost of new infrastructure like water and
roads.
One
major obstacle to this kind of plan is that slum businesses and
services don’t want to, or can’t, pay the higher cost of business that
urbanization brings. I proposed that the tax system be bracketed so that
low-income businesses that operated in former slum land be given rent
subsidization and that companies that hire low income workers on the
books be given a tax credit. This would also encourage more companies to
hire low-income workers and disperse more income. The next policy would
be to create a perpetual sharing scheme in the city where infinite
maturity bonds are sold and the profits be used to create infrastructure
and finance the increased social sector, which I’ll touch on soon. All
the citizens in the city, which would include the previous slum
dwellers, will pay the interest that would be built on those bonds as
they are cashed. This would mean that those who benefited from the
projects would also be helping shoulder the cost. I wanted to create
low-income housing for new residents to prevent future slums. However,
they would only be able to retain residence if they practiced fiscally
sound policy. That’s where the expanded social sector comes in; the city
would need to train a fleet of social workers, which could be previous
slum dwellers, which would help keep citizens on a fiscally responsible
path.
This
plan probably is too idealistic and too simple to spite the time I put
into it, but I think that some of the ideas from the project could
really be put into place to prevent, fight, and reverse slums in
developing countries and help reduce gender in-equality and raise the
standard of living across the board.
By William Lynch