PREPARING A NATIONAL HOUSING POLICY

While keeping to the fundamental principle that the preparation of a national housing policy must be the responsibility of an LDC itself, this paper attempts to develop more specific guidelines and suggested objectives based on current world experience. AID views its role in housing policy formulation as stimulating the developing country to recognize the importance of a national housing policy; providing limited technical assistance in determining how to prepare a national housing policy; and providing access to worldwide experience in order to assist the country in understanding the range of options and solutions which other countries have adopted. The recognized deficits in housing stock are the result of a mix of factors affecting the quality of life in LDC"s. Some of the factors are: (1) the urban population in developing countries is over 544 million, (2) additional capital investment of almost one trillion dollars would be required to provide minimal housing, infrastructure, facilities, and jobs for this population; (3) for most urban centers buildable land is subject to speculation which causes land value to increase from 10 to 25% annually; and (4) the public sector in most LDC"s is ill equipped to respond to these enormous urban challenges. Cities such as Karachi, Pakistan and Calcutta, India, are faced with providing between 40,000 and 60,000 dwelling units a year for the next 30 years if they are to keep up with the population growth. This means tripling and quadrupling housing construction rates. This must be accomplished in the face of material shortages, skilled labor shortages, capital shortages, and the inability of the majority of people to pay economic rates for minimum shelter. This paper"s premise is that the starting point for rational decision making in housing is the formulation of a national housing policy.