Private-Public Sector Collaboration for Housing Needs of the Urban Poor.
117
Private-Public Sector
Collaboration for Housing Needs
of the Urban Poor
Mohd Haizzan Yahaya, Muhamad Fadhil Nurdin and Mohd Taufik Mohammad
Universiti Sains Malaysia
Hery Wibowo Universiti Padjadjaran
Introduction
Home as a Necessity
One of life's basic needs, like food and water, is shelter. The provision of housing
and associated services does extend across virtually all facets of social work
endeavour, from providing foster care to the neglected, finding homes for persons
leaving treatment facilities, helping refugees find their "place" in a new country and
on addressing homelessness itself. Social work research related to housing reflects
the wide array of interest in the field in finding the best way to meet housing needs
while helping client build a new sense of belonging, pride of ownership, and sense
of self-sufficiency.
Perhaps nowhere else are both the micro and macro social work approaches to
meet basic human needs by addressing both people and their environment better
displayed than in the housing services field. Housing or lack thereof reflects the
individual's economic environment, and quality housing reflects the level of a
community's social development. The provision of housing is a further reflection
of society's meeting the needs of its most vulnerable residents.
Helping to provide a well-brought-up housing for urban poor and low income
household is a worldwide challenge to governments especially in countries where
citizens are well educated. However, it would be suitable to use the term strategies
on donating the public policies concerning the housing situations in most countries
particularly dominated by free markets (Downs, 1969). Authorities simply do not
have well-reasoned, realistic, long-range policy on coping with housing needs.
Nevertheless, for the purpose of analysis, it is useful to view public efforts to
improve the housing of the urban poor in each nation as resulting from at least an
unspoken strategy.
118
Social Development
There are numerous clear statements by the Malaysian government calling for a
balanced development which will bring about holistic development. However, for a
majority of policy drafters and makers, the thrust is mainly focusing on economic
growth and returns. There is therefore an urgent need to recapture the balanced
approach in social development, especially in Penang. Holding this balance at the
level of policy formulation and direct implementation is necessary in making a
difference for Penangites (an informal way of referring to people living in Penang).
Social development is central to national and community development. The
authors believed that each and every community in Penang would love to share
the state prosperities and strive for the attainment of a better quality of life. Social
development is used in a broad sense to encompass economic, education and social
wellbeing, including the available and affordable housing for the urban poor. The
orientation is not so much welfare focused but one that advocates for social justice
and equal opportunities especially for the urban poor in Penang.
There is an urgent need for the state to strengthen the institutional capacities of
agencies and institutions to ensure that the social development agenda is further
enhanced for all Penangite. Perhaps, these would include creating new avenues
for urban poor to have a say especially in social development and be effectively
able to participate in social welfare dialogues, including the opportunity to buy and
own an affordable house.
Urban Poverty
Issues of urban poverty have attracted increasing attention among Penangites and
academics in the last few years. Studies have been carried out to establish the links
between unemployment and urban poverty (Zhu, 1998; Zhang, 1999). Regional
variations in urban poverty, the relationship between poverty and family income,
employment types and economic sectors have also been investigated. These
studies have led to new policy development and some changes in social welfare
provision. At the international level, the literature on urban reform and transition
has also grown rapidly over the last few years. Published material addresses a wide
range of issues, including:
The economic and industrial changes occurring in cities as part of the country's
reemergence on the world stage (Solinger, 1993)
• The physical and cultural transformation of Chinese societies (Davis e t. al,
1995)
•
119
The theme, urban poor and low income poor, is one of the major areas of
concern in this chapter. The findings of the two urban poverty conferences and
the impact of urban poverty lays a strong claim that urban poverty must be
urgently addressed in society. Six key areas have been debated and many
innovative policies and programmes have been launched by the Malaysian Federal
Government (Jayasooria, 2008). Academicians and civil society leaders have been
part of these deliberations.
The first is the National Social Policy. This was formulated as an umbrella
policy giving a balance between economic and social development, between
infrastructure and human capital development. Second is PINTAS which is a
social action plan which provides the framework for integrating the various
components of social development in the country. This social action plan was
developed by Prof. Dato Dr. Wan Halim and his team. Millions of ringgit had been
spent as well as a pilot project was launched at the district level. However, the sad
reality is that there is not even a single reference to PINTAS in the Ninth Malaysia
Plan (9MP). It was a major highlight in the 8MP and even in the Mid Term Review
of the plan.
Third is the Social Referral Centre (Pusat Rujukan Sosial). The original
intention was for these centres to be located in 'high risk neighbourhoods'.
Fourth is the Social Impact Assessment (SI A). Field research was undertaken and
foreign consultants recruited to provide input and framework. However while the
reports were being done and the policy formulated, this dimension was not given
much emphasis in the implementation.
Fifth are the professional development of social workers and the recognition of
social work as a profession. Even teachers and nurses are certified; but
unfortunately, currently any one can be a social worker or can even use this term.
While anyone can be a volunteer there are basic competencies needed in social
work practice. Only trained social workers are best equipped to handle complex
social situations.
Finally, the sixth aspect is the National Social Institute and its role in not only
undertaking research but also to train social workers with the required basic
competencies. The institute must provide the content for professional
development.
There is an urgent task to recapture all the work done in the above six areas. One
major step would be to gather all academicians, civil servants and civil society
people who were involved in conceptualizing the social agenda. The attempt will
be to form a resource team of experts to truly provide the intellectual base for
fostering a social agenda which will truly bring about a balance on social
development.
120
Housing the Urban Poor
Housing and living conditions are important indicators of household poverty.
Housing provision in Penang looks like it had been dominated by the private sector.
Along with job security, housing is the next most important element in the
welfare system. Over time housing conditions were getting poorer due to
insufficient investment. However, there have been important changes to the urban
housing provision system since the urban economic reform. Commercial property
developers emerged as the main housing providers. Many urban families now live
in purpose-built flats, which are often small and congested compared to the size of
the family.
The authors suggest that some of the immediate strategies in addressing the
issue of affordable housing for the urban poor may include the following:
Policies and Social Support
For a betterment of arrangement in coping with the issues of housing for the
urban poor in Penang, the authors believed that policies and more social support
programs need to be strengthened as soon as possible. It is expected that this will
perhaps minimize the burden and functions of state government, which can focus
more to production management related efforts than service provision. With the
introduction of the arrangement, welfare provision by work units will reduce
substantially in order to improve production of urban poor housing effectively and
efficiently.
Social Housing Policy
On the other hand, new social support policies such as social housing policy
should be introduced to fill some of the gaps between the old and the new policies.
These can include policies aimed at creating more job opportunities to reduce urban
unemployment, and several social security systems established to protect the weak
and unemployed in the cities.
Housing affordability problems arise as a result of two conditions which are
high shelter costs or insufficient income (Carter & Polevychok, 2004). A social
policy has been attempted to address the problem of insufficient income through
government transfers. Social housing also represents an implicit form of income
support, although it is designed to address the other aspects of housing affordability
or the high housing costs. While these two components of social policy are
intrinsically related they have developed and function in relative isolation from
each other. The interface has never been adequately addressed. Welfare support
raises the household's income, while social housing reduces housing costs and
freeing up income for other purposes. Both approaches address the problems
especially of the urban poverty issues.
121
Furthermore, social housing policy can also make radical difference.
Unlocking state lands for affordable housing are critical to reduce the price of
houses for the urban poor, who are increasingly being driven out of the city
environment. Beyond the supply of houses, government enforcement of existing
laws against house profiteering would be a valuable start and a long-term home
mortgage financing for the urban poor, another breakthrough effort.
Higher Basic Allowance
Social assistance benefits may incorporate a higher basic allowance that should vary
by household size and composition as well as considering the high cost of living in
in Penang, which will indirectly add the shelter component. A higher basic
allowance is supposed to be sufficient to cover the cost of food clothing and other
basic living costs. The shelter component is supposed to reflect the market rent of
units suitable for the size and composition of the households. In reality, however,
the current basic allowance plus the shelter component leaves Penangites in
poverty and with too few housing ringgit left to afford a decent housing. Often
households on social assistance have to take money from their current basic
allowance to pay the rent, raising their shelter-to-income ratio to 50 percent or
more and leaving them with too little money to buy food (Carter & Polevychok,
2004).
Social Assistance Program
The combination of compromises in the social assistance program and cuts to
social housing in recent years has undoubtedly played a role in the growth in the
homeless population and the serious housing circumstances (Chau et. al, 2001).
The social assistance program should complement the role of publicly sponsored
housing programs by providing immediate housing relief for those urban poor.
Investing
Enabling small group of communities to have a role in investing in the markets is
seen necessary. This will in return, enable them to create social wealth and have a
boost in their social welfare indirectly. Carter and Polevychok (2004) mentioned
that housing and owning a home are one way of accumulating wealth and escaping
the poverty trap. The analysis can be extended further by looking at owners with
and without a mortgage. Approximately 54 percent of owners have a mortgage on
their home. Homeowners' net worth increased from being 29 times that of renters
in 1984 to 70 times that of renters in 1999 (Social and Enterprise Development
Innovations, 2003).
122
The Future and Struggle of Urban Poor
Historical and inherited problems such as the disabled people, the pursuit off full
employment in urban areas and overstaffing in the public sector, were the main
causes for urban poverty. However, these historical problems did not result in
serious poverty under the well planned economic system. The number of poor
people inherited from the previous period was also relatively small.
In addition, the struggle of the urban poor communities in Malaysia for
housing and land rights is closely related to the development and history of the
country. After the British colonial period, Malaysia's priority was to develop its
economy by focusing on the manufacturing and export industry in urban areas.
This resulted in the rural population migrating to the cities in search of
opportunities and to fill the workforce demand. With hard work and their limited
resources they would open up nearby areas (wilderness) and build houses. With
more people migrating, subsequently, this would further encourage development the
area. This new group of population later became to be known as urban pioneers.
Reform and the marketization of the urban social welfare and economy,
particularly the reduction of universal benefits and rising unemployment, are new
causes of increasing incidents of urban poverty. Adult unemployment, laid-off
workers and poverty among pensioners were all related to the process
marketization and the privatization of the previously state-owned public
enterprises. There is perhaps a possible correlation between factors determining
future urban developments and the prospect of a higher incidence of urban
poverty in the new urban centres.
References
Carter.C, Polevychok.C, 2004. Housing is a good social policy. Research Report
F|50 Family Network. Canadian Policy Research Networks Inc. (CPRN).
Chau, S., A. Fitzpatrick, J.D. Hulchanski, B. Leslie, and D. Schatia. 2001. Ore in
five... Housing as a factor in the admission of children to care: New survey
of Children's Aid Society of Toronto. Updates 1992 Study. A Joint Research
Project by the Children's Aid Society of Toronto and the Facuky of Social
Work, University of Toronto. Centre for Urban and Communi Studies,
Research Bulletin No. 5.
Davis, D. S., Kraus, R., Naughton, B., & Perry, E. (1995). Urban spaces in
contemporary China: The potential for autonomy and community in Poy
Mao China. Cambridge: Woodrow Wilson Center Press and Cambridge
University Press.
Downs, A. (1969). Housing the urban poor: The economic of various strategic The
American Economic Review, 59, 646-651.
123
Jayasooria, D. (2008). Social development and Indians in Malaysia: An agenda for
social inclusion. Kuala Lumpur: Yayasan Strategik Sosial (YSS). Social and
Enterprise Development Innovations. 2003. HomeSave: Building
investment in housing assets: A study of individual development accounts
for housing – A national demonstration project. Ottawa: Canada
Mortgage and Housing Corporation.
Solinger, D. J. (1993). China's transition from Socialism: Statistic legacies and
market reforms, 1980-1990.
Armonk, NY: M. E. Sharpe. Wang, Y. P. (2000). Housing reform and its impacts on
the urban poor in China. Housing Studies, 15(6), 845-64. Zhang, J. D. (1999).
Informal institution in the process of market transformation.Beijing: Wenwu
Press.
Private-Public Sector
Collaboration for Housing Needs
of the Urban Poor
Mohd Haizzan Yahaya, Muhamad Fadhil Nurdin and Mohd Taufik Mohammad
Universiti Sains Malaysia
Hery Wibowo Universiti Padjadjaran
Introduction
Home as a Necessity
One of life's basic needs, like food and water, is shelter. The provision of housing
and associated services does extend across virtually all facets of social work
endeavour, from providing foster care to the neglected, finding homes for persons
leaving treatment facilities, helping refugees find their "place" in a new country and
on addressing homelessness itself. Social work research related to housing reflects
the wide array of interest in the field in finding the best way to meet housing needs
while helping client build a new sense of belonging, pride of ownership, and sense
of self-sufficiency.
Perhaps nowhere else are both the micro and macro social work approaches to
meet basic human needs by addressing both people and their environment better
displayed than in the housing services field. Housing or lack thereof reflects the
individual's economic environment, and quality housing reflects the level of a
community's social development. The provision of housing is a further reflection
of society's meeting the needs of its most vulnerable residents.
Helping to provide a well-brought-up housing for urban poor and low income
household is a worldwide challenge to governments especially in countries where
citizens are well educated. However, it would be suitable to use the term strategies
on donating the public policies concerning the housing situations in most countries
particularly dominated by free markets (Downs, 1969). Authorities simply do not
have well-reasoned, realistic, long-range policy on coping with housing needs.
Nevertheless, for the purpose of analysis, it is useful to view public efforts to
improve the housing of the urban poor in each nation as resulting from at least an
unspoken strategy.
118
Social Development
There are numerous clear statements by the Malaysian government calling for a
balanced development which will bring about holistic development. However, for a
majority of policy drafters and makers, the thrust is mainly focusing on economic
growth and returns. There is therefore an urgent need to recapture the balanced
approach in social development, especially in Penang. Holding this balance at the
level of policy formulation and direct implementation is necessary in making a
difference for Penangites (an informal way of referring to people living in Penang).
Social development is central to national and community development. The
authors believed that each and every community in Penang would love to share
the state prosperities and strive for the attainment of a better quality of life. Social
development is used in a broad sense to encompass economic, education and social
wellbeing, including the available and affordable housing for the urban poor. The
orientation is not so much welfare focused but one that advocates for social justice
and equal opportunities especially for the urban poor in Penang.
There is an urgent need for the state to strengthen the institutional capacities of
agencies and institutions to ensure that the social development agenda is further
enhanced for all Penangite. Perhaps, these would include creating new avenues
for urban poor to have a say especially in social development and be effectively
able to participate in social welfare dialogues, including the opportunity to buy and
own an affordable house.
Urban Poverty
Issues of urban poverty have attracted increasing attention among Penangites and
academics in the last few years. Studies have been carried out to establish the links
between unemployment and urban poverty (Zhu, 1998; Zhang, 1999). Regional
variations in urban poverty, the relationship between poverty and family income,
employment types and economic sectors have also been investigated. These
studies have led to new policy development and some changes in social welfare
provision. At the international level, the literature on urban reform and transition
has also grown rapidly over the last few years. Published material addresses a wide
range of issues, including:
The economic and industrial changes occurring in cities as part of the country's
reemergence on the world stage (Solinger, 1993)
• The physical and cultural transformation of Chinese societies (Davis e t. al,
1995)
•
119
The theme, urban poor and low income poor, is one of the major areas of
concern in this chapter. The findings of the two urban poverty conferences and
the impact of urban poverty lays a strong claim that urban poverty must be
urgently addressed in society. Six key areas have been debated and many
innovative policies and programmes have been launched by the Malaysian Federal
Government (Jayasooria, 2008). Academicians and civil society leaders have been
part of these deliberations.
The first is the National Social Policy. This was formulated as an umbrella
policy giving a balance between economic and social development, between
infrastructure and human capital development. Second is PINTAS which is a
social action plan which provides the framework for integrating the various
components of social development in the country. This social action plan was
developed by Prof. Dato Dr. Wan Halim and his team. Millions of ringgit had been
spent as well as a pilot project was launched at the district level. However, the sad
reality is that there is not even a single reference to PINTAS in the Ninth Malaysia
Plan (9MP). It was a major highlight in the 8MP and even in the Mid Term Review
of the plan.
Third is the Social Referral Centre (Pusat Rujukan Sosial). The original
intention was for these centres to be located in 'high risk neighbourhoods'.
Fourth is the Social Impact Assessment (SI A). Field research was undertaken and
foreign consultants recruited to provide input and framework. However while the
reports were being done and the policy formulated, this dimension was not given
much emphasis in the implementation.
Fifth are the professional development of social workers and the recognition of
social work as a profession. Even teachers and nurses are certified; but
unfortunately, currently any one can be a social worker or can even use this term.
While anyone can be a volunteer there are basic competencies needed in social
work practice. Only trained social workers are best equipped to handle complex
social situations.
Finally, the sixth aspect is the National Social Institute and its role in not only
undertaking research but also to train social workers with the required basic
competencies. The institute must provide the content for professional
development.
There is an urgent task to recapture all the work done in the above six areas. One
major step would be to gather all academicians, civil servants and civil society
people who were involved in conceptualizing the social agenda. The attempt will
be to form a resource team of experts to truly provide the intellectual base for
fostering a social agenda which will truly bring about a balance on social
development.
120
Housing the Urban Poor
Housing and living conditions are important indicators of household poverty.
Housing provision in Penang looks like it had been dominated by the private sector.
Along with job security, housing is the next most important element in the
welfare system. Over time housing conditions were getting poorer due to
insufficient investment. However, there have been important changes to the urban
housing provision system since the urban economic reform. Commercial property
developers emerged as the main housing providers. Many urban families now live
in purpose-built flats, which are often small and congested compared to the size of
the family.
The authors suggest that some of the immediate strategies in addressing the
issue of affordable housing for the urban poor may include the following:
Policies and Social Support
For a betterment of arrangement in coping with the issues of housing for the
urban poor in Penang, the authors believed that policies and more social support
programs need to be strengthened as soon as possible. It is expected that this will
perhaps minimize the burden and functions of state government, which can focus
more to production management related efforts than service provision. With the
introduction of the arrangement, welfare provision by work units will reduce
substantially in order to improve production of urban poor housing effectively and
efficiently.
Social Housing Policy
On the other hand, new social support policies such as social housing policy
should be introduced to fill some of the gaps between the old and the new policies.
These can include policies aimed at creating more job opportunities to reduce urban
unemployment, and several social security systems established to protect the weak
and unemployed in the cities.
Housing affordability problems arise as a result of two conditions which are
high shelter costs or insufficient income (Carter & Polevychok, 2004). A social
policy has been attempted to address the problem of insufficient income through
government transfers. Social housing also represents an implicit form of income
support, although it is designed to address the other aspects of housing affordability
or the high housing costs. While these two components of social policy are
intrinsically related they have developed and function in relative isolation from
each other. The interface has never been adequately addressed. Welfare support
raises the household's income, while social housing reduces housing costs and
freeing up income for other purposes. Both approaches address the problems
especially of the urban poverty issues.
121
Furthermore, social housing policy can also make radical difference.
Unlocking state lands for affordable housing are critical to reduce the price of
houses for the urban poor, who are increasingly being driven out of the city
environment. Beyond the supply of houses, government enforcement of existing
laws against house profiteering would be a valuable start and a long-term home
mortgage financing for the urban poor, another breakthrough effort.
Higher Basic Allowance
Social assistance benefits may incorporate a higher basic allowance that should vary
by household size and composition as well as considering the high cost of living in
in Penang, which will indirectly add the shelter component. A higher basic
allowance is supposed to be sufficient to cover the cost of food clothing and other
basic living costs. The shelter component is supposed to reflect the market rent of
units suitable for the size and composition of the households. In reality, however,
the current basic allowance plus the shelter component leaves Penangites in
poverty and with too few housing ringgit left to afford a decent housing. Often
households on social assistance have to take money from their current basic
allowance to pay the rent, raising their shelter-to-income ratio to 50 percent or
more and leaving them with too little money to buy food (Carter & Polevychok,
2004).
Social Assistance Program
The combination of compromises in the social assistance program and cuts to
social housing in recent years has undoubtedly played a role in the growth in the
homeless population and the serious housing circumstances (Chau et. al, 2001).
The social assistance program should complement the role of publicly sponsored
housing programs by providing immediate housing relief for those urban poor.
Investing
Enabling small group of communities to have a role in investing in the markets is
seen necessary. This will in return, enable them to create social wealth and have a
boost in their social welfare indirectly. Carter and Polevychok (2004) mentioned
that housing and owning a home are one way of accumulating wealth and escaping
the poverty trap. The analysis can be extended further by looking at owners with
and without a mortgage. Approximately 54 percent of owners have a mortgage on
their home. Homeowners' net worth increased from being 29 times that of renters
in 1984 to 70 times that of renters in 1999 (Social and Enterprise Development
Innovations, 2003).
122
The Future and Struggle of Urban Poor
Historical and inherited problems such as the disabled people, the pursuit off full
employment in urban areas and overstaffing in the public sector, were the main
causes for urban poverty. However, these historical problems did not result in
serious poverty under the well planned economic system. The number of poor
people inherited from the previous period was also relatively small.
In addition, the struggle of the urban poor communities in Malaysia for
housing and land rights is closely related to the development and history of the
country. After the British colonial period, Malaysia's priority was to develop its
economy by focusing on the manufacturing and export industry in urban areas.
This resulted in the rural population migrating to the cities in search of
opportunities and to fill the workforce demand. With hard work and their limited
resources they would open up nearby areas (wilderness) and build houses. With
more people migrating, subsequently, this would further encourage development the
area. This new group of population later became to be known as urban pioneers.
Reform and the marketization of the urban social welfare and economy,
particularly the reduction of universal benefits and rising unemployment, are new
causes of increasing incidents of urban poverty. Adult unemployment, laid-off
workers and poverty among pensioners were all related to the process
marketization and the privatization of the previously state-owned public
enterprises. There is perhaps a possible correlation between factors determining
future urban developments and the prospect of a higher incidence of urban
poverty in the new urban centres.
References
Carter.C, Polevychok.C, 2004. Housing is a good social policy. Research Report
F|50 Family Network. Canadian Policy Research Networks Inc. (CPRN).
Chau, S., A. Fitzpatrick, J.D. Hulchanski, B. Leslie, and D. Schatia. 2001. Ore in
five... Housing as a factor in the admission of children to care: New survey
of Children's Aid Society of Toronto. Updates 1992 Study. A Joint Research
Project by the Children's Aid Society of Toronto and the Facuky of Social
Work, University of Toronto. Centre for Urban and Communi Studies,
Research Bulletin No. 5.
Davis, D. S., Kraus, R., Naughton, B., & Perry, E. (1995). Urban spaces in
contemporary China: The potential for autonomy and community in Poy
Mao China. Cambridge: Woodrow Wilson Center Press and Cambridge
University Press.
Downs, A. (1969). Housing the urban poor: The economic of various strategic The
American Economic Review, 59, 646-651.
123
Jayasooria, D. (2008). Social development and Indians in Malaysia: An agenda for
social inclusion. Kuala Lumpur: Yayasan Strategik Sosial (YSS). Social and
Enterprise Development Innovations. 2003. HomeSave: Building
investment in housing assets: A study of individual development accounts
for housing – A national demonstration project. Ottawa: Canada
Mortgage and Housing Corporation.
Solinger, D. J. (1993). China's transition from Socialism: Statistic legacies and
market reforms, 1980-1990.
Armonk, NY: M. E. Sharpe. Wang, Y. P. (2000). Housing reform and its impacts on
the urban poor in China. Housing Studies, 15(6), 845-64. Zhang, J. D. (1999).
Informal institution in the process of market transformation.Beijing: Wenwu
Press.