Support strategies for informal production of housing and urban services

This report focuses on ways in which A.I.D. can encourage informal sector participation in projects to improve the production and quality of shelter and urban services. The report recommends a sectorwide approach consisting of policy dialogue to relax the regulatory environment as well as direct support to the informal sector. Specifically, the report examines the following options for strategic programming: formal sector reforms related to land markets, improving access to credit for low-income households, generating income and employment related to shelter, and expanding urban services. The report also recommends that country-specific analyses be conducted on the following issues: informal land development techniques, squatter settlements and clandestine neighborhoods, informal financial institutions and mechanisms, traditional building materials and practices, employment and income generation, provision of infrastructure, and deregulation.