Category Archives: Culture

The Historical Evolution of South Africa’s Housing Policy, Exemplified in Cato Manor

By Ellie Leaning, Analyst

This is the first of a series of blog posts on the historical evolution and uniqueness of South Africa’s housing policy as seen in Cato Manor. This initial post aims to provide a historical overview of the political, economic, and cultural factors at play in Cato Manor.

Cato Manor is one of South Africa’s most historically significant townships. It sits on Durban’s periphery, tucked out of the public eye amongst the hillside, about a ten minute drive from the waterfront. I have a particular affinity to Cato Manor because I lived there for eight-weeks in 2013 with a Zulu family. This was where I had my first exposure to affordable housing projects and became acutely aware of the significance of my family’s Reconstruction and Development Programme (RDP) house in their quest for opportunity in a world of pervasive inequality (tune into the next post in this series for a discussion of RDP houses!).

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Gardens Drive in Cato Manor with RDP houses as far as the eye can see and a mini-bus taxi parked along the street, waiting for customers. These taxis are constantly running back and forth, honking and blasting music, trying to attract a new client. While perhaps intimidating for a foreigner, these taxis are very inexpensive and very efficient (although perhaps not very safe), connecting the township to the greater Durban area.

 Fun fact: As the buses do not have signs indicating their destination, the drivers (or a driver’s assistant who sometimes rides along) and passengers use hand signals to indicate where the bus is going. For instance, lifting your index finger in a circular motion will get you a ride to South Beach. This stems from Apartheid-era innovation when the government did not supply any public services to these areas – yet another example of a creative response to a market failure! 

Cato Manor’s role in the monumental political, economic, and cultural changes of 20th century South Africa make it a useful and relevant case study. It was one of the main areas where the African National Congress (ANC) focused re-development efforts post-1994, and today it is frequently considered Durban’s equivalent to District Six in Cape Town. While this is a specific township with its own history, the lessons learned and the complexity of that history are representative of the rest of South Africa.

Cato Manor has a unique history that is deeply rooted and very important in its culture today. The Nqondo clan occupied the area as early as 1650, until the Ntuli clan took over about a century later. It is unclear what happened to these tribes, but in 1815 the British established Port Natal (the Portuguese word for Christmas, as Natal was first found by a Portuguese explorer on Christmas Day 1497). The Brits lived primarily on the coast, while the Zulu King Shaka controlled the interior. In 1845, George Cato became the first mayor of Durban and was given the land of Cato Manor, which he subdivided and sold to Indian market gardeners (Durban is also home to the world’s largest Indian population outside of India) who decided to remain in South Africa after their terms as indentured slaves ended. Africans began to set up shacks and informal settlements along the periphery of the area, and as more and more Africans settled in, a unique mixture of vibrant Indian and African culture appeared. These Africans were primarily Zulus, who previously ruled large parts of present-day KwaZulu Natal (KZN) and had an incredibly strong empire. The long-lasting periods of conflicts and consequent colonization were brutal and oppressive, but resulted in a strong sense of identity and pride in the Zulu Kingdom, one that is still evident today in Cato Manor and elsewhere in KZN.

In 1932, Cato Manor was officially brought into the Durban municipality, and the (mostly native African) shack-dwellers were declared illegal occupants. Regardless, Africans continued to rent homes and land from Indians (under the law at this time, Africans were not allowed to own land or build homes in urban areas), with established tenure and amicable relationships for a time. Around 1945, historians estimate that Cato Manor was home to over 50,000 Africans, who began accusing Indians of rent-hikes and overcrowding. This occurred simultaneously with the rise of the Afrikaaner National Party in 1948, which imposed a legalized racial segregation system, infamously known as Apartheid. Racial tensions exacerbated existing divides, leading to a brutal “anti-Indian war” on 13 January 1949 that left 137 dead and thousands injured.

After this, Indians began to leave Cato Manor, returning only to collect rent from Africans, who were busy building more shacks and sub-letting to more Africans. Indian landowners then sold a large portion of their land to the Durban City Council, which then developed the land as a largely unregulated and overcrowded emergency center for homeless people. This became one of the main points of unregulated production of shimeyane, a homemade distilled liqueur, and consequent chaos.

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Cato Manor forced removals and police brutality in mid-1950s.

In 1950, National Party passed the Group Areas Act, the Population Registration Act, the Immorality Act, and the Suppression of Communism Act – the infamous laws of Apartheid. The 1950s marked significant increases in brutal legalized segregation and horrific race-based violence. Apartheid’s opposition, the ANC, was gaining immense power when it was forced to go underground by laws prohibiting political groups and defining anti-apartheid sentiments as equal to treason. The ANC had various underground hubs in the different provinces, and Durban’s branch was based in Cato Manor. The ANC women’s league was also largely prominent in Cato Manor around this time.

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Cato Manor: October 1959.

The apartheid regime responded to this by attempting forced removals (within the law, under the Group Areas Act) to place residents in racially exclusive Indian and Black townships, such as KwaMashu and Chatsworth. These efforts were met with massive resistance and violent conflicts, but eventually the bulldozers and police forces won.

Cato Manor was mostly vacant from the late 1960s, aside from a few Hindu temples and avocado trees, a sad ghost of its vibrant history. As the anti-apartheid movements gained strength in the later 1970s, people began trying to move back, but violence plagued the region again in the 1980s. Soon after, people began proactively reclaiming their land and returning to Cato Manor. The first area which people resettled was along the ridge of Cato Manor, an area called Cato Crest.  In 1994, the ANC won the national elections in a remarkably peaceful power transfer. The Zulu Kingdom was incorporated in the Province of Natal in a deal which recognized the power and presence of the Zulus in Natal while stably bringing them into the Republic of South Africa. Natal was renamed as KwaZulu Natal, in which “Kwa” denotes ownership-of or possession: the Zulu’s Natal.

The ANC, left with a broken country, attempted to implement broad changes, including a brand new constitution containing Section 26: the Right to Housing, where “Everyone has the right to have access to adequate housing”. A unique aspect of the South African constitution is that is does not only apply to South African nationals; anyone living in the country is entitled to the same rights as a citizen. In this unique aspect of the constitution, the state took on the responsibility of providing access to adequate housing for both its citizens and permanent residents. In a country of legally enforced geographic segregation of races and consequent socio-economic divides, this was no easy task. Accordingly, since 1994, South Africa has devoted a lot of time and resources to pro-poor housing initiatives, most of which were implemented in Cato Manor with varying levels of success.

Residents of Cato Manor and the larger eThekweni (Durban) municipality established the Cato Manor Development Association to upgrade and redevelop the area. Soon following this, Cato Manor was identified as a Presidential Lead Project of the Reconstruction and Development Programme (RDP), which awarded R130 million ($11.2 million) for specific upgrading schemes to be explained in the next South Africa post.

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The RDP house that I lived in for eight weeks with my homestay family (my little sister is at the front door)!

Today, Cato Manor is a very large and partially well developed area, yet is still plagued with violent crime, unemployment, and poor health. Cato Crest, one of the six informal settlements on the outskirts (the ‘crest’) of Cato Manor, is a place of extreme poverty and violence. Parts of Cato Manor are formally owned by their dwellers, with homes attached to the grid with relatively steady electricity and functional plumbing, while others, as in Cato Crest, are completely informal with no legal land ownership, no financial mechanisms for home improvement, no connection to grids, no sanitation, etc. The different mechanisms of housing are at play in Cato Manor, from the 1994 RDP houses, to “green streets” of solar power and efficiency upgrades, to basic slum upgrading schemes attempting to solve the dilemmas of the informal settlements.

South Africa’s, and Cato Manor’s, unique history has led to a regeneration process that is both very difficult and vitally important to get right as the country struggles for socio-economic equality. As we stress here at AHI, there is not one sector of life that housing does not touch. Housing is the keystone species of development, and Cato Manor has been a guinea pig for a lot of these initiatives.

The next blog post in this series will discuss the different regeneration and redevelopment programs at the national level and the local level – stay tuned!  

Promoting a Rare Breed: Private Nonprofit Housing Developers in the GCC

This piece was originally published by Jadaliyya, an ezine produced by the Arab Studies Institute. Jadaliyya combines local knowledge, scholarship, and advocacy to better understand the Arab World and to fulfill its dedication to discussing the Arab world on its own terms. The original article can be found here.

           

By Maysa Sabah Shocair, AHI’s Managing Director of the GCC Region

While working as a Project Manager at the Fenway Community Development Corporation (CDC) in Boston and as a Consultant to Phipps Houses in New York City, I experienced firsthand how nonprofit developers can contribute to preserving housing affordability in central locations. Fenway CDC builds and preserves housing and champions local projects that engage the entire Fenway community in protecting the neighborhood’s economic and racial diversity. It has operated since 1973 and has developed nearly six hundred homes, housing approximately 1,500 low and moderate-income [1] residents, including those with special needs. In addition, Fenway CDC has supported residents through offering job placement and career advancement services, building playgrounds, running after-school programs for teens and operating a center for seniors. Similarly, Phipps Houses develops, owns and manages housing in New York City. Since its  founding in 1905, it has developed more than six thousand apartments for low- and moderate-income families, valued at over one billion US dollars. Phipps Houses manages a housing portfolio of nearly ten thousand apartments throughout New York City. In addition, it serves over eleven thousand children, teens, and adults annually through educational, work readiness, and family support programs.

Now that I am working in the Gulf Cooperation Council (GCC) as an affordable housing consultant for several public and private entities, I often wonder: Could private nonprofit housing developers, like the Fenway CDC and Phipps Houses, make an impactful contribution to bridging the supply and demand gap in affordable housing in the GCC for both citizens and non-citizens? Could the experience of other countries with nonprofit housing developers be distilled and adapted to the GCC states?

To answer these questions, I will first discuss the main attributes of nonprofit housing developers, followed by a discussion on the shortage of affordable housing for citizens and non-citizens in the GCC and the resulting need for nonprofit housing developers. I will then recommend strategies to enable the growth of nonprofit housing developers and end with a few concluding remarks. 

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Domed roofs in Haram City


Nonprofits Housing Developers as Mission Entrepreneurial Entities

In its 2010 landmark study Mission Entrepreneurial Entities: Essential Actors in Affordable Housing Delivery, the Affordable Housing Institute (AHI) defined Mission Entrepreneurial Entities (MEEs) as “private nongovernment entities that are in the business of making housing ecosystemic change by doing actual transactions valuable in themselves that also serve as pilots and proof of concept.” MEEs could be Non-Governmental Organizations, Community Development Corporations, or Housing Associations, labels that have sometimes been used interchangeably. The study profiles twenty-three MEEs in the United Kingdom and the United States, where, in both countries, there has been a steady migration from entirely publicly managed and operated systems to hybrid public-private models, with MEEs as key delivery mechanisms.

According to the study, the three main attributes of MEEs are: (i) being mission oriented, since their goal is impact, not just profits; (ii) entrepreneurship, taking risks and persuading established institutions, including governments, to approve proposals, provide capital, etc.; and (iii) self-containment, because sustainable MEEs must make profits and maintain a positive cash flow. However, generated profits are used to further the purposes of the organizations instead of being distributed to managers and shareholders.


MEEs also share the following strengths:

·         Willingness to serve populations that the private for-profit sector cannot or will not serve, including the hardest-to-house residents;

·         Commitment to providing affordable housing to lower income people for the long term;

·         Building strong connections with residents and the communities they serve;

·         Commitment to providing various social services that lower income or special needs residents may require;

·         Potential for accessing affordable land, buildings and funding through governments and philanthropic entities or individuals;

·         Commitment to seeing projects through both during their early and post-delivery phases.

Given the potential of MEEs to serve populations that are not served by private or public housing provision, this essay discusses the potential relevance of this model to the GCC countries. This interrogation is critical at a time during when many GCC countries are facing a shortage of housing for low and moderate income households. It is also a time in which we are witnessing the emergence of institutionalized charitable giving that could be in part harnessed to help with housing provision. These conditions are creating a ripe environment for the growth of nonprofit housing developers, with the much needed support of the public and private sectors.

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Photo Report: Three Days in Ulaanbaatar

By: Anya Brickman Raredon

AHI has been working with the World Bank and Municipality of Ulaanbaatar, Mongolia to develop an affordable housing strategy for the rapidly growing city.  In late-August, David Smith, our CEO and Founder, and I took a three-and-a-half day trip to present the results.  Fortunately we got a little bit of time away from our meetings to see the city and visit a ger area neighborhood – their term for the informal settlements. What follows is a bit of a photo tour with some interspersed musings.

Located in a high valley at the intersection of two rivers, Ulaanbaatar has some of the worst air pollution in the world, in part due to coal heating in the winters. According to the city masterplan, both rivers have protected buffer zones along their banks, although new apartment construction is edging very close on the south side of the valley.  10534525_10100612341304914_7619381653213947338_n936681_10100612341349824_5668957290735238999_n

Downtown Ulaanbaatar is a striking collection of soviet style apartment blocks, yurts, and modern glass towers all sitting right next to each other. There’s even an amusement park in the middle of downtown.10569050_10100606082482644_1606306620005765474_n                 10593150_10100612341424674_2564284688276477326_n  10629839_10100612341629264_7146385909691851264_n                  10474839_10100606076444744_4868540471071979280_n  10610547_10100612341150224_5811294750562497487_n

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South Korea: Finally shifting away from a centuries-old housing system

by Judy Park, Analyst

South Korea’s primary housing system, called jeonse (or “key money”), dates back to their Joseon Dynasty. That is, back when the denizens of this humble country looked like this:

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King Sejong is not amused.

Jeonse is one of only two systems of its kind in the world (the other being rahn in Iran), where renting out a modest two-bedroom unit entails the lump sum possession of hundreds of thousands of dollars.

The process goes thus: tenants provide landlords with this hefty deposit to lease a unit for two years. The deposit is calculated as a certain percentage (typically 40-60% in Korea, 20% in Iran) of the value of the unit. The landlord can then invest these funds (e.g. in other properties, businesses, or at the bank) until the end of the two-year contract, when they must return the full sum to the tenant. The unit acts as collateral in the event that the landlord can’t or won’t pay it back. Estimates show that about a tenth don’t.

If interest rates are high, jeonse is good deal for landlords – it’s basically an interest-free loan. If they’ve got the cash, it’s a good deal for tenants – they can live in a unit rent-free and continue to save up money.

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An average, middle-class apartment in Seoul. Source: HanCinema

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An average, middle-class apartment in Seoul. Source: HanCinema

But getting the cash is no easy feat. The typical deposit is a casual $200,000, taking the average household five years and boatloads of fiscal restraint to save up. Despite this, it seems that much of the nation’s families are up for the challenge, as more than 60% of rental units are currently held under the jeonse system. Thus, jeonse units constitute the main source of affordable housing for low and middle income families in the country.

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Guest Post: Painting Slums

The following guest post by Noll Tufani, the Haiti Country Director for Build Change, opens our minds to how we can share our experiences working in housing and informal settlement upgrading with both intellect and creativity.

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Cerfs Volants

As a humanitarian professional implicated in slum-upgrading projects, I’ve come to realize that slums are key revelators of the challenges facing modern cities, of the broader development challenges facing entire countries or regions, and of a universal condition that humanity has been facing through the ages.

The economic, social, political, environmental and ethical implications of our times can all be found in the slums.

I realized that slums had rubbed-off on me when I began to feel this urge to draw and paint them. At first representing the slum itself was important to me, but then I started to give-in to an even stronger urge to render the slum as relative as it is to the very slum dwellers and as inconspicuous as it is to the ruling classes. The best way to do this was to merge three concepts:

  • The slums are everywhere: whatever the product one consumes, someone from a slum somewhere has had something to do with that product. And this is also true for the products we discard as trash. Whatever the location in the world, there is a slum of sorts, hidden from the mainstream, but very much intertwined with it. Whether a Brazilian favela or a squatted run-down building in the heart of Paris, ignoring the existence of slums is simply failing to fully understand the world we live in.
  • Slums are not slums in the eyes of their residents: slum-dwellers project their life-aspirations and their moments of joy beyond the contingency of the slum. They are able to create this reality that renders the hardship of the slum relative and as a result, they transform the slums into welcoming and heartwarming places from which they project themselves into their dreams and life-plans.
  • Slums evoke hardship and suffering: although slum-dwellers project their life-aspirations beyond the slum, they are very much aware of the daily hardship of living in the slum. From lack of comfort, to exposition to crime, disease and natural disasters, slum-dwellers wish they were living elsewhere, and non-slum-dwellers wish the slum were not there!
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Bidonvuille en bordure de mer

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Loiseau

 

 

 

 

 

 

 

 

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A Typical Home: the Town House – Sai Gon, Vietnam

By: Duong Huynh, Project Manager

Housing is complex. Its stakeholders and creatures are as varied as the skin colors of the human race – developers and financiers, consumers and policy makers. Its value chains are highly intertwined – demand side and supply side, taking us from land obtainment to consumer off-take and move-in. At the core of this complex system lies the key product it helps to produce more of, and in high quality: the home.

So via this post, I hope to inspire my colleagues and myself in understanding the typologies of homes all over the world in closer detail. For this first venture, I chose Sai Gon, Vietnam; otherwise known as Ho Chi Minh City.

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Sai Gon’s location on the southern tail of Vietnam’s “S” shape

A map of Sai Gon’s districts

A map of Sai Gon’s districts

Typical traffic in Sai Gon during busy hours

Typical traffic in Sai Gon during busy hours

With any emerging markets, growth and architectural landmarks sit alongside dated low-density residential uses.

The glamorous and trendy Sai Gon at night

The glamorous and trendy Sai Gon at night

Low and mid-density uses lie below and alongside the city’s landmark tower

Low and mid-density uses lie below and alongside the city’s landmark tower

Within any nation and economy, many diverse sets of housing typologies exist. Vietnam is no exception.

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Inequality in India’s Development Dreams

By: Stephanie Tam, AHI Volunteer, Canada

In unspoken agreement, individuals melted into a crowd and closed ranks at one end of the Sabarmati Riverfront promenade. A reverent murmur rippled across: “The Chief Minister is here”. The sky clouded over with raised hands hailing Narendra Modi, the state of Gujarat’s Chief Minister since 2001 and India’s Prime Minister-elect as of May 16th, 2014. A feverish undercurrent threatened to bubble to the surface with a few shouts ripping through the silence. Modi’s trademark all-white attire became blinding under the sunlight, and the crowd hushed with awe when he began to speak.

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Modi speaking on the Sabarmati Riverfront promenade during the National Festival, August 2012.

Labeled as India’s most loved and most loathed politician, Modi has polarized politics nationally in the few years that have elapsed since that afternoon on the Sabarmati. His supporters claim that his Gujarat model of development will launch the country into a new economic era, while his opponents accuse him of inciting the communal riots that slaughtered thousands of Muslims in 2001. Modi’s landslide election victory shows that his platform of secularized development prevailed over misgivings about his right-wing Hindu roots. However, it remains unclear what development means for the 14 million households living in identified slums across India[1].

Throughout Modi’s electoral campaign, development has meant improved built infrastructure and industrial expansion. Gujarat’s major urban centers boast well-paved roads, few electrical outages, and a flourishing upper class that enjoys air-conditioned malls and luxury cars[2]. Enacted in 2004, Gujarat’s Special Economic Zone (SEZ) legislation has attracted foreign investors and industrial tycoons by doing away with taxes and offering up cheap land, thereby increasing wealth according to development measures that focus exclusively on market growth, i.e. GDP.

Development in terms of employment and consumption, on the other hand, reveals stagnation. Atul Sood et al. show through a series of studies that there is “poverty amidst prosperity”[3], revealing increased reliance upon contract workers and casual labourers, as well as overall wage growth that lags behind the all-India wage increase. This correlates to Gujarat’s slow growth in monthly per capita expenditures: with little increase in household profits, there is little capacity to spend. In short, industries are making a lot of money, but those profits are not benefiting the average worker.

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