Familara, Milena Mari D.

ARC 5103

BASECO: Strategic Pathways to Formalize the Informal

Urban Design Proposal for Informal Settlement Upgrading in Metro Manila 2019

Global Issues of Urban Poor and Informal Settlements

Complex Housing and Humanitarian Crisis

Urbanization:
As of 2018, 55.24% of the world population lives in urban areas, and it is estimated that by 2050
this percentage will grow to 68%. It is estimated that 3 million people move from the countryside to
cities per week. In general, the shift to urban majority was primarily due to the agricultural and
industrial revolution. Rural employment opportunities dropped significantly from an increase in
mechanization and automation while non-agricultural industry created more jobs in the cities. As
rural populations dropped, so did their political influence, government investments, available
products and general services. Wealth and success thrive in cities, which creates an attraction for
people who are seeking an improved quality of life with more livelihood opportunities. Cities also
offer greater access to social support and services such as health care, education and technology.
The reality is that not everyone in the city equally benefits from the consolidation of wealth.

Income and Opportunity Inequality and the Proliferation of Poverty:

As cities continue to grow rapidly in population and wealth, so does income inequality and the
proliferation of poverty. While the issues are complex, there are a few common causes that
contribute to this divide. Increasedf population can lead to an adequate amount of fiscal assistance
for those in need, with governments focusing a majority of resources that favor wealthy
investments. This shift in interest from agricultural to industrial investment increases employment
rates for skilled laborers, while decreasing the opportunities for generally unskilled rural migrants.
The lack of affordable education and skills training leads to high unemployment and increased
urban poverty.

Economic de-regulation policies promote a free market economy with little government
intervention, often leading to low pay and income below the standard living wage. Additionally,
inequitable tax policies favor the wealthy, limiting the funds and services available to distribute
across the population. This can include affordable healthcare, childcare and transportation.

Increased inequality and poverty issues are moresevere in developing countries. The lack of
education and family planning lead to rapid urbanization and population growth, which strains the
existing infrastructure. Other factors include a lack of technological development and miss-use of funds
through government corruption. This combination can lead to the proliferation of the urban poor and
incidence of informal settlements.

As more people move to cities in search of opportunity, in reality they often face inadequate salaries or
long term unemployment, pricing them out of the formal rental market. In addition, government
policies and financial focus lead to an inadequate number of affordable housing units. These residents
often have no choice but to move to illegal informal settlements where they are able to build their own
shelter or live with family and friends for a lower cost of living. Within the world’s urban population,
approximately 30% of people are living in informal settlements. Unfortunately the living conditiond can
be unhealthy, with overcrowding, dangerous structures, personal insecurity, constant risk of eviction,
and insufficient of city services.
The proposal aims to contribute ideas for improving the housing crisis in the Philippines by providing
solutions for upghrading existing informal settlements through the lens of Sustainable Urban Design.
These concepts are applied to the BASECO area of Manila, and are intended to be scalable and
applicasble to other settlements worldwide while considering the site specific requirements and
inhabitant’s unique needs.

Informal Settlements:
Metro Manila has grown expotentially due to rapid urbanization of people from the countryside
seeking work opportunities services. Unfortunately many of these job-seekers do not earn enough
income to live in formal accomodations slose to their waork and the metro area lacks sufficient
affordable housing. More often their only choice is to stay with co-workers or family members in
informal settlements, where the conditions are cramped and lacking suffiecient water and
sanitation services.

These informal settlements are illegaly formed often on government land and close to water access.
The settlements are often in danger zones with little prevention for flood or fire. The majority of
homes are built with lightweight materials and without proper foundations. The structures which
can be multi-story, are damaged easily from strong winds and earthquakes. The residents live
under a constant threat of eviction, flooding, loss of shelter or injury from damage and water
related illnesses.

In response, the government protocol is to remove residents from the high risk environment and
relocate them to safer areas. Unfortunately, these relocation sites are usually where land is cheaper
and a far distance from the economic opportunities in the city. With an insufficient transportation
system and extreme traffic times, many residents choose to move back to city, and end up once
again in high risk informal settlements. Although the government recognizes these issue and is
pursuing alternative solutions, the cost of land prohibits the ability to provide in-city relocation for
the amount of need that axists.

Understanding the Key Actors

The following chart represents a portion of the key actors involved in low income housing
production and services for informal settlers. During the fieldwork, the main government entities
interviewed include the NHA and the PCUP.
 HUDCC
Housing and Urban
Development Coordinating
Council

HGC HLURB NHMFC PAG-IBIG SFHC NHA

NHA
Low income
housing
production
BALAI
Government Housing
Housing for Disaster Victims
Resettlement
Vertical Low Income Development
Settlement Upgrading

SMOKEY
MOUNTAIN
 Informal / Formal Low
Income Housing Community

National
Government Civil Society
Agencies Organizations

PCUP
Implement Government
Policies and Programs for Cooperatives
the poor
Peoples Organizations
Non Government Organizations

Local Government Private Sectors

Unit

Autonomous Region
Barangay Developers
Province Banks
Municipality Architects
Contractors

National Housing Authority

The NHA is the primary government entity responsible for producing socialized housing. Started in
1975, it is a government owned and controlled corporation. They are pressed with high targets that
are difficult to reach, and the need continues to grow yearly. For instance in 2018, the target was
over 552,000 homes, and 15% of this was accomplished. The more recent BALAI initiative is in
place to focus on increased public/ private partnerships to help fill this fulfillment gap. The NHA
faces immense challenges in fulfilling their mandates due to the distribution of power in the
government. Local government (LGU’s) are responsible for housing in their jurisdiction, and can
stop a project by withholding funding, Often they do not want informal settlers in their city or they
wish to capitalize on the high price of land.
NHA Mandates
 Provide technical and other forms of assistance to LGUs in the implementation of their
housing programs
 Undertake identification, acquisition, and disposition of lands for socialized housing
 Implement vital components of the National Shelter Program
 Manage and administer the Trust Fund for the Medium Rise Public and Private Housing and
Local Housing Programs.

NHA Housing Programs:

 Resettlement program for ISFs living along danger areas and those affected by
infrastructure projects
 Regional resettlements
 Settlement Upgrades
 Government Employees Housing Program
 Vertical development low income housing
 Housing Program for calamity victims

Factors contributing to the Housing Crisis:

 De-regulated market driven approach
 Government as an enabler not provider
 Short term mayors (3 years) – inconsistent promises
 Over-burdened public transportation
 Corruption
 High risk to disaster
 Lack of cohesive master urban plan
 Loopholes in construction permit

Reference:
Urban Design Thesis, 2019: BASECO, Strategic Pathways to Formalize the Informal.
(2020, April 19).