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Housing, Infrastructure & Services

Introduction

Some of the most basic needs of a community include the provision of housing and urban services to its residents. Providing equitable access to water, sanitation, trash collection, solid waste disposal, and electricity across all areas of a city – wealthy and poor – are the cornerstone of a municipal government's compact with its citizens, and is the most tangible result for which communities hold their elected officials accountable. This is particularly true as more countries decentralize administrative and fiscal authority to city and local governments, and the responsibility of closing the gap in service provision between the poor and the wealthy falls to cities. This gap remains substantial, and continues to grow in parts of the world, as over 1.1 billion people lack adequate access to safe water, nearly 2.5 billion lack access to sanitation services, and more than one billion people currently live in slums.

In addition to creating more livable and healthy cities, urban services are also critical to economic growth. Cities are referred to as engines of growth, but without adequate infrastructure and services, the gears of commerce become obstructed and ineffectual. Conversely, cities with effective urban services become magnets for private sector activity, as companies can trade goods and services efficiently, leading to formal sector jobs and additional growth.

Perhaps the most basic of services is the provision of housing. Adequate housing is considered so important that 75% of countries in the world have enshrined this right constitutionally or through enacting legislation. Adequate housing is also critical to the social, economic, and political stability of a country; a viable housing sector can generate employment opportunities, improve public health, deepen the financial sector, provide a sense of ownership to the populace, and help develop complex institutions that provide benefits across many sectors of society. Housing is also typically the greatest source of wealth creation available to the poor. Through investing in their individual homes, the poor accumulate equity which can then be used as collateral to start or expand a small business.

Despite its size, the public sector by itself does not have the resources needed to bridge the gap in basic service provision to areas that are currently unserved or underserved. City governments will need to reach out to the private sector and to citizens, particularly the poor, to explore how public-private partnerships might improve service delivery. Without engaging stakeholders regarding their needs and ability to pay, municipalities will be unable to provide even the most basic services in a sustainable manner. Although cost recovery is fundamental to sustainable and responsive basic service provision, participatory management, cooperation, transparency, and accountability are also critical. Service provision is critically important to the health of a city and its inhabitants, likewise the processes whereby these services are provided, and the infrastructure built and maintained are also significant in building an inclusive, prosperous society.

For more information, contact Robert Schneider at roschneider@usaid.gov.

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