Peru shelter sector assessment

THE NEW PROGRAM WOULD PLACE SPECIAL EMPHASIS ON THE SQUATTER AREAS ("PUEBLO JOVENES") TO PROVIDE ESSENTIAL INFRASTRUCTURE AND BASIC UTILITY SERVICES, HOME IMPROVEMENT LOANS, AND OTHER ALTERNATIVES, INCLUDING LOTS AND CORE HOUSING. ON THE BASIS OF ITS OBSERVATIONS, THE TEAM MADE FOUR RECOMMENDATIONS: 1.) THE SEVERAL PERUVIAN GOVERNMENT AGENCIES INVOLVED IN PROVIDING SHELTER AND SERVICES SHOULD BE MORE INTENSIVELY COORDINATED AND CENTRALLY DIRECTED IN THE PLANNING, PROGRAMMING, AND IMPLEMENTATION OF THE PROPOSED PROGRAM; OTHERWISE, AS PAST EXPERIENCE HAS SHOWN, THE PROPOSED LARGE-SCALE PROGRAM CANNOT BE EFFICIENTLY IMPLEMENTED. 2.) INSTITUTIONAL MECHANISMS FOR REACHING INTO THE MARGINAL SETTLEMENTS ARE NEEDED. A LARGE GAP EXISTS BETWEEN THE TYPE OF HOUSING THAT IS NEEDED AND THE TYPE PRESENTLY BEING FINANCED. MOREOVER, THE BCH AND THE "MUTUALES" MAKE ALMOST ALL OF THE LONG-TERM HOUSING FINANCE IN THE COUNTRY WITH AVERAGE LOANS SEVERAL TIMES LARGER THAN WHAT CAN BE AFFORDED BY THE AVERAGE FAMILY. AS FOR THE CREDIT COOPERATIVES, THEIR OPERATIONS ARE LIMITED BY RESTRICTIONS ON THE AMOUNT OF INTEREST THEY CAN PAY ON SAVINGS OR SHARES. 3.) THE GOVERNMENT SHOULD REVIEW ITS INTEREST RATE STRUCTURE AND CONSIDER PERMITTING HIGHER INTEREST RATES TO BE PAID ON SAVINGS, PARTICULARLY FOR THOSE INSTITUTIONS WILLING TO EXTEND CREDIT TO LOWER INCOME GROUPS. 4.) PROGRAM DESIGN IS AN EXTREMELY IMPORTANT CONSIDERATION IN MEETING THE NEED FOR SHELTER AND SERVICES IN THE "PUEBLO JOVENES." WHENEVER POSSIBLE, PROGRAMS SHOULD UTILIZE A MAXIMUM AMOUNT OF LOCAL INPUTS AND NEIGHBORHOOD CONTROL THROUGH PARTICIPATION OF NEIGHBORHOOD ASSOCIATIONS, CREDIT COOPERATIVES, HOUSING COOPERATIVES, AND OTHER LOCAL ORGANIZATIONS.