Creation of Enabling Environments for Slum Upgrading and Affordable Housing

Introduction

Slum upgrading is an essential part of addressing urban housing challenges, particularly in rapidly growing cities like Monrovia, Liberia. A large percentage of the city’s population lives in informal settlements, lacking proper infrastructure, legal land ownership, and access to essential services. This paper, authored by Sanjeevani Singh and presented at the 2018 World Bank Conference on Land and Poverty, explores how slum upgrading can be integrated into affordable housing strategies to improve living conditions for low-income communities.

The study argues that the creation of an enabling environment for slum upgrading requires a multi-tiered approach that tackles issues at different levels:

1. Community-Level Interventions – Improving the living conditions of informal settlements through participatory planning, infrastructure improvements, and incremental housing support.
2. Market-Based Interventions – Expanding access to housing finance, reducing construction costs, and strengthening private sector involvement in slum upgrading.
3. Policy-Level Interventions – Strengthening land tenure security, improving zoning regulations, and creating long-term urban development plans that prioritize slum upgrading.

By focusing on these areas, the study presents slum upgrading as a key urban development strategy that can promote inclusivity, reduce poverty, and create more resilient communities.

Challenges and Key Findings

1. Widespread Informal Settlements and Housing Deficits

Monrovia faces a severe housing shortage, with over 70% of its population living in informal settlements. These communities have expanded due to rapid urbanization, poverty, and weak housing policies. Most residents lack access to basic services such as clean water, sanitation, electricity, and proper waste disposal. As a result, living conditions are unhealthy and unsafe, with many settlements exposed to environmental hazards.

Slum upgrading aims to integrate informal settlements into the formal urban fabric by improving infrastructure, legalizing land tenure, and enhancing housing quality. Without targeted interventions, these settlements will continue to grow, worsening Monrovia’s housing crisis.

2. Weak Governance and Policy Fragmentation

The absence of a unified housing authority has led to policy fragmentation in Monrovia. Instead of a single institution overseeing housing policies, multiple government agencies handle different aspects, causing inefficiencies and delays in implementing housing projects. Key challenges include:

• The National Housing Authority, the Ministry of Public Works, the Ministry of Internal Affairs, and other agencies have overlapping responsibilities, leading to a lack of coordination in slum upgrading.
• The Land Rights Bill of 2014 remains stalled in Liberia’s legislature, preventing progress on land tenure security.
• Zoning laws and building regulations are outdated, failing to address the reality of informal settlements.

Slum upgrading requires government reforms to streamline housing policies and improve governance. Without these changes, informal settlements will continue to operate outside formal urban planning structures.

3. Economic and Financial Barriers

Liberia’s high poverty rate (64% of the population lives below the national poverty line) severely limits housing affordability. Most low-income households allocate only 15% of their income to housing—significantly lower than the global standard of 30-40%. Major financial barriers to slum upgrading include:

• Lack of affordable mortgage options for low-income households.
• Expensive construction materials, as most are imported.
• Informal labor markets, making it difficult for residents to access stable income sources for home improvements.

Slum upgrading programs must be accompanied by financial support mechanisms that enable low-income households to invest in housing improvements.

4. Environmental Hazards and Climate Risks

Monrovia is one of the wettest capitals in the world, receiving high annual rainfall that contributes to severe flooding in informal settlements. Poor drainage systems, weak infrastructure, and coastal erosion pose significant risks to housing stability.

Some communities, such as West Point and Samuel Doe settlements, are highly vulnerable to sea-level rise and face frequent displacement. Slum upgrading strategies must integrate climate adaptation measures, such as flood-resistant housing and improved drainage infrastructure, to protect residents from environmental risks.

Proposed Interventions

1. Community-Level Interventions

Slum upgrading at the community level focuses on empowering residents to take an active role in improving their neighborhoods. This involves:

Risk Awareness and Disaster Preparedness

• Conducting community-based disaster risk management (CBDRM) training to help residents understand environmental hazards.
• Implementing Participatory Approach for Safe Shelter Awareness (PASSA) programs to involve communities in planning slum upgrading projects.

Infrastructure Upgrades

• Improving storm water drainage systems, street lighting, and sanitation facilities to enhance living conditions.
• Introducing solid waste management programs to reduce health hazards.

Incremental Housing Improvements

• Supporting step-by-step home improvement programs, allowing residents to expand and renovate their homes gradually.
• Providing technical training for local builders to improve construction quality.

2. Market-Based Interventions

Slum upgrading requires stronger private sector involvement to make housing more affordable.

Expanding Housing Finance

• Encouraging microfinance institutions to develop incremental home improvement loans for low-income families.
• Introducing productive housing loans, allowing families to build rental units for additional income.

Reducing Construction Costs

• Promoting locally manufactured building materials to lower costs.
• Establishing public-private partnerships with construction companies to supply affordable housing materials.

Supporting the Rental Market

• Developing affordable rental financing programs for landlords participating in slum upgrading.
• Implementing tenant protection policies to prevent exploitation of low-income renters.

3. Policy-Level Interventions

Slum upgrading requires stronger regulatory support and policy reforms to ensure long-term sustainability.

Land Tenure and Regularization of Informal Settlements

• Passing the Land Rights Bill to establish legal ownership for informal settlers.
• Implementing clear guidelines for regularizing informal settlements, integrating them into the city’s urban planning framework.

Urban Planning Reforms

• Updating zoning laws to support slum upgrading efforts.
• Investing in citywide drainage and infrastructure to prevent environmental risks.

Voluntary Relocation Policies

• Developing fair relocation guidelines for communities affected by flooding and coastal erosion.
• Ensuring livelihood and social integration programs for relocated households.

Conclusion and Lessons Learned

Slum upgrading is a comprehensive development strategy that improves housing, infrastructure, and economic stability for low-income urban populations. Key takeaways include:

1. Community participation is essential – Successful slum upgrading efforts require local involvement and grassroots leadership.
2. Incremental housing is the most feasible solution – Step-by-step housing improvements are more affordable and realistic for low-income families.
3. Financial inclusion is critical – Expanding housing finance options will enable more families to participate in slum upgrading programs.
4. Government policies must support long-term solutions – Integrated urban planning and land tenure security are necessary for sustainable slum upgrading.
   Also read: Different approaches to Slum Upgrading From Forced Eviction to In situ Upgrading