Foreword - Habitat For Humanity

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ForewordHabitat for Humanity’s vision — a world where everyone has a decent place to live —demands bold action. While we celebrate more than 4 million people who are already inbetter housing because of Habitat, there are 1.6 billion people without adequate sheltertoday, and the need is growing.Because of Habitat’s history, we know that we can do more. Because of our vision, wemust do more, and do so in partnership with others.We invite our supporters to be the power of change, to provide a way out of poverty forlow-income families by building homes, communities and hope.It is not only population growth which accelerates the need for adequate housing.Working in the world’s most disaster-prone region means we cannot ignore the effectsof climate change and environmental degradation. Housing is closely related to otherdevelopment issues such as increasing urbanization, health and social policy. With thisreport, we present an overview of the major future trends which affect inadequate housing and how these trends offer both challenges and opportunities.The scale of the problem is large but we also know what a world of difference a decenthome brings. Studies have shown the positive impact that decent housing has on anindividual. Having light, safe drinking water and sanitation, a quiet place to work, andstable occupancy mean better performance at school and improved income prospects.Citizens living in adequate homes are healthier, more productive, creating thriving communities and generating stronger economies.1Opening the door to improved lives: tackling inadequate housing in Asia-PacificRick HathawayVice-President, Asia-PacificHabitat for Humanity

Table of contents2Foreword1Executive summary3Part 1 – The poverty housing landscape in Asia-Pacific6Part 2 – Eight trends that affect poverty housing in Asia-Pacific10Part 3 – How Habitat for Humanity makes a difference15In conclusion21Endnotes22Opening the door to improved lives: tackling inadequate housing in Asia-Pacific

Executive summaryDespite impressive gains in poverty reduction almost one fifth of the 4.3 billionpeople in the Asia-Pacific region are still living below the international extremepoverty line, earning less than US 1.25 a day.1,2With 120,000 more people flocking to cities in the region every day, demand forhousing increases by an average of 20,000 dwellings a day.3 This demand islargely unmet. Poor land governance, outdated regulations, policies and systems,as well as under-resourced institutions all conspire to exacerbate the problem ofpoverty housing. It affects not just urban dwellers but rural residents too, who oftenface insurmountable difficulties to putting a roof over their heads.Housing has a profound effect on people’s health, well-being and development.Access to safe sanitation and clean water — fundamental tools of public healthimprovement — goes hand-in-hand with decent housing. There are wide inequalities in access to both clean water and safe sanitation in the region, where there arestill over 200 million people using unsafe sources of drinking water and 671 millionstill using unhealthy sanitation facilities.4Inadequate housing increases the risk of illness and deaths from communicableand non-communicable diseases and has a negative impact on mental health.Indoor air pollution is a major housing-related health hazard: according to the WorldHealth Organization, up to 1.6 million people, mainly women and children, die eachyear because of indoor smoke inhalation from household cooking fires.53Opening the door to improved lives: tackling inadequate housing in Asia-PacificLack of access to electricity deprives many of the basic amenities of modern life,including lighting and communications for almost 700 million people in AsiaPacific.6 It condemns men and women to hours of back-breaking physical labor,and restricts children’s educational advancement because they are unable to studyafter dark, or must do so straining to see by candlelight.Adequate housing addresses all of these issues, and creates a base of safety fromwhich to foster social inclusion and community. It generates employment throughdemand for building materials and labor. It empowers women, who are often thehead of the household. It improves people’s livelihood as the home can be used asa base for small business. When wage-earners can return to a safe and comfortable home, they are likely to be healthier both mentally and physically, whichboosts their labor productivity. Improvements in housing are also associated withimproved educational outcomes for children.7Every job created in the housing sector generates two jobs elsewhere in theeconomy. 8 According to UN-Habitat, the housing sector comprises as much as 20percent of a country’s gross domestic product. Without a well-functioning housingsector, a country’s economy is likely to stagnate.In short, decent housing provides a way out of poverty.There is a complex web of factors that affect the housing sector and inadequatehousing does not exist in isolation. Specifically, there are eight major future trendsthat have an impact on poverty housing in the Asia-Pacific region.

8 trends that will shape the Asia-Pacific housing sectorPopulation growthPopulation d demographic IncreasingshiftsurbanizationClimate change and Climate change andnatural disastersnatural disastersHousing-related healthIncreasingissuesphilanthropic givingHousing-related health issuesIncreasing philanthropic givingChanging developmentfundinglandscape1. Climate change and2. Population growthand3. Increasing givingurbanizationChanging4. Housing-relatedhealth landscape5. lopment fundingHousingsectormarket ealthissuesIncreasingurbanizationIncreasing urbanization Cities account for2 percent of land usebut are responsible for70 percent of greenhouse gas emissions. The global population isexpected to go from 7billion in 2012 to 8.3 billionby 2030, with half of thatincrease occurringin Asia.An estimated 70 percentof the world’s populationis expected to be livingin cities by 2050.In South Asia, anestimated 42 percentAlready vulnerable and of the urban populationBy 2050 there will be anmarginalized commu currently lives innities are the mostestimated 900 millioninadequatehousing.Housing andscapeIncreasing capeaffected byclimatepeople aged65anddevelopmentchange as they live inolder, accounting for 18When slums are high-risk areas and lesspercent of the populationupgraded, social improveresilient structures.versus 8 percent in 2012.ments, local economicdevelopment and im Environmental sustaina An expanding globalproved urban mobilitybility in new housingpopulation strengthensfollow. stock development isthe case for makingone of the most powerfulhousing a developmentways to mitigate climatepriority, becausechange and to adapt toadequate housing is keyits impact.to poverty eradication.Housingsector market developmentsHousing sector market developments4 Housing in social policyHousing in social policyOpening the door to improved lives: tackling inadequate housing in Asia-PacificHousing is one of themajor social determinantsof health, and slumsexacerbate both communicable and non-communicable diseases. Lack of safe drinkingwater, poor sanitation,Housing in socialHousingin socialenergypovertyand policyindoor air pollutioncaused by burning solidcooking fuels all add tothe health burden ofpoverty housing. Governments can leverage housing improvements to reap healthrelated gains.Economic progress isvery uneven between andwithin countries withincreasing incomedisparity.As the number of highnet-worth individuals inthe region increases andpolicysocieties mature, thetrend of philanthropicgiving is gainingmomentum.Interest in volunteeringis increasing, especiallyamong young people.Changing

ingentsHousing sector market developmentsHousingsectormarket developmentsChanging developmentfundinglandscapeHousing in social policyHousing in social policyThese trends come with their challenges but also multipleopportunities. In order to capitalize on these opportunities,Habitat recognizes the importance of large-scale, sustainableinitiatives and seeks partnerships to do this.6. ChangingdevelopmentHousing in social policyfunding landscape 57. Housing sectormarket developments8. Housing in socialpolicy The already limitedbilateral aidbudget is beingfurther squeezed intoa narrower range ofcountries.Funding agencies often look for short-termmeasurable impact,but impact indicatorsfor housing are longterm. The scope forpartnerships betweenpublic, private andpeople sectorscontinues to widenand can help toplug the gaps left byshrinking development assistance. Low-income households put a roof overtheir heads throughparticipation in localmarkets, no matterhow frail anddysfunctional.Despite high demandfor housing financeproducts, microfinance institutionshave been slow tooffer them. Tackling barriersin the value chain,rather than just atthe individual clientlevel, is becomingrecognized as a wayof enabling systemicchange.Opening the door to improved lives: tackling inadequate housing in Asia-PacificMany countries lackcoherent nationallevel and localhousing policies.Several areas stilldemand urgent attention, such as women’saccess to land ownership, and the formaland informal rentalsectors.Organizations engaged in the housingsector can leveragetheir experience andreputation to advocate for pro-poorhousing policies.Habitat for Humanity’s Strategic Plan for 2014-2018 ensuresthat the organization is better equipped than ever to respondto the trends shaping the Asia-Pacific housing sector.Through its Strategic Plan, Habitat amplifies the effects of itsefforts through community and sector impacts. Habitat seeksto increase affordable housing opportunities and advocate forpolicies and systems that advance access to adequate, affordable housing. By raising awareness of housing as a criticalfoundation for breaking the cycle of intergenerational poverty,and by setting ambitious targets for mobilizing volunteers,Habitat is also building societal impact.On the ground in the Asia-Pacific region, this means thatHabitat galvanizes the full range of its resources and partnerships. It works across different development sectors and at alllevels: regionally, nationally and in communities. Its regionalinfrastructure and country presence gives Habitat a uniqueposition in understanding housing sector conditions, limitationsand opportunities in specific settings.This enables Habitat to deploy its efforts where they can havethe most impact. Working closely with partners, Habitat buildshomes, influences the development of housing markets tomake them work better for the poor, marshals developmentfunding, engages at policy level and mobilizes volunteers.

6Opening the door to improved lives: tackling inadequate housing in Asia-Pacific

Poverty housingSlumPoverty housing, or inadequate housing, is that which lacks the minimumrequirements of tenure security, affordability, adequacy, accessibility, proximityto services, availability of infrastructure, and cultural adequacy, according tothe UN Special Rapporteur on Adequate Housing 2005.9The United Nations characterizes slums, or informal settlements, byone or more of the following: Poor structural quality and durability of housing Insufficient living areas (more than three people sharing a room) Lack of secure tenure Poor access to water Lack of sanitation facilities10Population, poverty and housing in Asia-PacificThe Asia-Pacific region is home to 4.3 billion people,approximately 60 percent of the world’s population.11Although population growth has been slowing acrossthe region as a whole since 2000, it is still expected totip the 5 billion mark by 2050.12Despite impressive gains in poverty reduction, in2011 an estimated 18.3 percent of the region’s population was still living below the international extremepoverty line, earning less than US 1.25 a day.13 In theregion’s developing countries, 743 million people livebelow the poverty line, the largest absolute number ofall global regions.14 Gains made in reducing povertyhave been undermined by widening income inequality in many countries.The global trend of rapid urbanization is playing out inthe region, with 120,000 more people flocking to cities in the Asia-Pacific region every day.15 UN-Habitatestimates that at least 20,000 new dwellings — andsupporting infrastructure — are required every day toaccommodate this steady inflow into cities.16 Housingdemand is far out-pacing supply, and where demandcannot be met with adequate housing, slums emerge:in the Asia-Pacific region, more than 500 millionpeople live in slums.177In the region’s poor countries, rapid urbanizationbrings additional challenges of vulnerability and alack of resilience to disasters. For example, more thanhalf of Cambodia’s urban population lives in PhnomPenh, and nearly 99 percent lives in flood-risk areas.18Poor land governance, outdated regulations, policiesand systems, as well as under-resourced institutionsall conspire to exacerbate the problem of inadequatehousing. Urban dwellers are not the only ones affected. Rural residents often face insurmountabledifficulties in putting a roof over their heads. Landtenure may not be secure, and housing finance canbe difficult to obtain for those with intermittent incomeand thus considered risky clients. Even where thereare financial institutions catering to the rural poor,such as microfinance lenders, they may not have theresources to offer housing-related products.Secure land tenureLand tenure is the legal right to ownership of land.Secure land tenure ensures that households cannotbe involuntarily removed from their land withoutdue process. Households with secure tenure aremore likely to make improvements to their homeand therefore cause its value to increase, and arealso more likely to be able to access commercialfinancing through mortgages and short term loans.19Opening the door to improved lives: tackling inadequate housing in Asia-PacificIn urban areas, land tenure can also be difficult tosecure and the high cost of land pushes many peopleinto peri-urban and informal settlements.20 Slumdwellers typically maintain or upgrade their accommodation piecemeal, as and when money becomesavailable, making it difficult to significantly improvetheir living conditions.Why poverty housing mattersSafe and adequate shelter is a basic human rightThe Universal Declaration of Human Rights states:“Everyone has the right to a standard of living adequate for the health and well-being of himself and hisfamily, including food, clothing, housing and medicalcare and necessary social services, and the right tosecurity in the event of unemployment, sickness, disability, widowhood, old age or other lack of livelihoodin circumstances beyond his control.”21Housing affects health, education and economicdevelopmentThe state of one’s housing has a profound effect onpeople’s health, well-being and development. Thisis particularly so for groups who spend more time athome, including children, mothers with small children,the elderly, people with disabilities and those whowork from home.

Access to safe sanitation and clean water — fundamental tools of public health improvement — goeshand-in-hand with decent housing. Living in povertyhousing condemns people to poor sanitation andinadequate or unsafe water supplies. Water contaminated by human waste spreads numerous diseases,such as diarrhea, cholera, dysentery, hepatitis A andtyphoid, especially in the wake of natural disasters.22In the past 15 years almost 2 billion people worldwide gained access to improved sanitation, and 2.3billion people were able to access drinking waterfrom improved sources, including 1.6 billion peoplewho for the first time gained access to piped waterconnections.23 Despite this progress there are wide inequalities in access to both clean water and improvedsanitation. In the Asia-Pacific region, there are stillover 200 million people using unimproved sources ofdrinking water and 671 million still use unimprovedsanitation facilities.24Improved sanitationSanitation facilities that hygienically separate humanwaste from human contact.Improved drinking water sourceA source of drinking water that is constructed toprotect the water from outside contamination, inparticular from contamination with fecal matter.25Improvements so far in water supply and sanitation inurban areas also belie inequalities that restrict accessfor people in low-income, illegal and informal settlements or in smaller urban conurbations. In rural areasthe improvements in sanitation and water supply havelargely benefitted richer people, with the vast majority8of poor rural dwellers still left without safe sanitationand improved sources of drinking water.26According to the World Health Organization, inadequate housing also increases the risk of illness anddeaths from temperature extremes; home injuries; exposure to chemicals, mould and damp, noise, pestsand infestations. Many communicable diseases suchas tuberculosis are spread by poor living conditions.27Poor housing also has a negative impact on mentalhealth, and increases the risk of non-communicablediseases.28Indoor air pollution is a major housing-related healthhazard. Without access to clean cooking technology,families burn solid fuels for cooking: 1.6 billion peoplein the region are still burning whatever is available,usually wood, animal dung or charcoal, for cookingand heating purposes.29 Illness attributable to household air pollution caused by cooking with solid fuelsresults in more than 4 million premature deaths a yearworldwide.30Among children under the age of five, who tend tospend more time at home than older children, theeffects are particularly deleterious. Over half of allpremature deaths among children under the age offive are due to pneumonia caused by soot inhaledfrom household air pollution. Data on childhood hospital admissions shows a strong association of suchdeaths with inadequate or overcrowded housing.31 Italso causes 3.8 million premature deaths a year dueto stroke, ischemic heart disease, chronic obstructivepulmonary disease and lung cancer.32Inadequate housing is also typically associated withlimited, unsafe and unreliable electricity supply. Inthe Asia-Pacific region, almost 700 million peoplelack access to basic electricity services. This restrictsaccess to many of the basic amenities of modernOpening the door to improved lives: tackling inadequate housing in Asia-Pacificlife, including communications.33 In rural householdswhere there is no electricity, men and women arecondemned to hours of back-breaking work performing tasks that could easily and quickly be done bymachine if there was electricity to run it.34This ‘energy poverty’ also restricts opportunitiesfor men and women to generate income producingthings to sell. Without electricity, children strain theireyes to study by candlelight. Electric pumps are alsoessential for water supply and sanitation facilities.Adequate housing creates a base of safety fromwhich to foster social inclusion and community. Properroads, well-connected transportation links, and drainage and sewage systems further support a thrivingcommunity. As well as health benefits, better housing leads to less stress and more security, having anespecially big impact on women and children.35 A decent home provides space for home-based industry,giving women in particular potential new sources ofincome. When income earners can return to a decenthome to rest, they are more productive at work, anda healthier living environment reduces the

Habitat for Humanity’s Strategic Plan for 2014-2018 ensures that the organization is better equipped than ever to respond to the trends shaping the Asia-Pacific housing sector. Through its Strategic Plan, Habitat amplifies the effects of its efforts through community and sector impacts. Habitat seeks

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