Assignment is about Migrant and low income housing.
Assignment is about Migrant and low income housing.
A. CONTEMPORARY URBANIZATION PROCESSES IN DEVELOPING COUNTRIES 5. Why and how do people migrate from rural to urban areas? In what ways is the migration process selective? What policies should be pursued in the current period to deal with rural-urban migration? Discussions on migration and globalization often tend to involve international migration;Mentions on Urbanization and industrialization need to include internal migration. The internalmigration always is the most important part of urban and urbanization process in every countryparticular in countries with marked regional inequalities, but is not limited to the developingworld. Migration in general means “the is the movement of people across a specified boundaryfor the purpose of establishing a new or semi-permanent residence”1, more specific with internalmigrant, i.e. that which occurs inside the borders of a country, is actually far more important bothin terms of the numbers of people involved and the resulting flow of remittances. The appearance of migrants in cities and their contribution to the cities is evident, but thereasons why people come to cities are quite complicated. The reasons for migration can bedivided into two main aspects, the so-called "push" and "pull" factors. Push factors are those intheir old place which force people to move. For example, there may be civil wars or wars ingeneral in the country, but political or religious oppression, climate changes, lack of jobs orsimply poverty are all important push factors. Pull factors are factors in the target country whichencourage people to move; these include peace and safety, a chance of a better job, bettereducation, social security, a better standard of living in general as well as political and religiousfreedom. More clearly, the reasons for migrants could be determined by many various aspects,many factors. Those factors driving this migration are common to both permanent and circularmigration, including regional inequality, under-employment in rural areas and the growth oflabor intensive industries. Other factors differ, depending on the history, culture, policyenvironment and social structure of each country.1 Definition by http://www.indepth-network.org Page | 1
The inequality of spatial is one of the most important reasons of migrant. Inequalities could bebetween rural and urban, mountain areas and lowland areas, urban and urban, etc. The inequalityof these different areas, sectors often is income. The inequality of income in different spatialencourage people moving to the areas with higher income. Sometime the difference in is narrowbut attractive enough to make people want to move. Beside the inequality of income, some otherfactors could lead to inequality are caste, tribe, gender, education and ethnicity. Demographic factors are also important, as young adult populations have a greater propensityto migrate and large young adult populations in a country will affect migration streams. Thisfactor was closely linked with labor-market restructuring in terms of industrial/occupationalemployment changes. E.g. the high birth rate in some areas could provide human resources forthe lower one in the future. The last factors, the removal of restrictions to settling down or claiming benefits and changingviews on the importance or necessity of access to village life may increase permanent rural–urban migration. Many cities have been removing restrictions with the migrants for having theircontribution. Looseness requirements or removing restrictions of the destination cities areopening “the dream gate” for migrants. It helps migrants stay stably and encourages them staylonger. This would speed up the transfer of populations from rural to urban areas and a move tomore urbanized societies. Beside the question of reason for migrant also the question of migrant driver, we must toconsider the question of Migrant selectivity. In what ways is the migration process selective?This question has been asked by many scholars; of course many answers also have been givenout. A large number of studies, carried out by demographers and sociologists among others,show that age is the most important variable for selection, but that sex, civil status andoccupation also have clearly selective characteristics. Most countries now practice selectivemigration by demanding qualifications, such as skills, youth, and health, for immigrants. High-skilled or international migration is often more selective than low-skilled or internal migration,and migration occurring under liberal immigration regimes is likely to be less selective thanmigration under restrictive immigration regimes. Page | 2
The problem of selection has, however, largely been treated only in structural terms wherethe starting-point has been comparison of the composition of migrants and those still domiciledwith regard to the variables mentioned, whereas the qualitative aspect, the personalcharacteristics of the migrants, has hardly ever been mentioned. In 1966, S. Lee made anattempt to develop a more general diagram with regard to several different types of mobility inwhich he also strongly stressed the importance of the individual factors. The following fouraspects influence, according to Lee, the decision to migrate and thus the whole migrationprocess. 1. Factors associated with the area of origin. 2. Factors associated with the area ofdestination. 3. Intervening obstacles (such as distance, physical barriers, immigration laws, andso on). 4. Personal factor: some are observable elements, such as wealth and education, whilesome others are unobservable features, such as ambition and ability. Migration is a selective process attracting those with the greatest endowments of humancapital – and therefore contributes to economic growth and labor demand in receiving societieswith remittances, while having the opposite effects in sending societies, engendering furtheropportunity disparities, leading to even more migration 2. The lacking of human resources in thesending regions, countries particularly the phenomenon of Brain-drain is also one of negativeeffect of migrants. All those issues need to be solved harmoniously with the benefits of migrantsby promulgation and pursuance some policies. In the current period, Because of these social, economic problems which Urban – Ruralmigration bring on, the situation of urban – rural migration is having a right looking from thepolicy makers and from the State. In Vietnam, the registration system called Hộ Khẩu (KT)which has been used to influence rural-urban migration. Urban-rural and rural-rural migrationwere encouraged, while rural urban migration, especially to the largest cities, was discouraged soas to avoid over-urbanization, social insecurity and disorder. And not surprisingly, with themarket-led urbanization taking place in Vietnam, there has been a growing population ofunregistered migrants, who are among the least protected on the urban labour market, despitemaking a large contribution to economic development. A migration survey was carried out bythe government of Viet Nam in 2004 in eleven major migrant-receiving cities and provincescovering 5,000 migrant households and an equal number of non-migrant households. The survey2 Massey 1990, Myrdal 1957 Page | 3
showed that nearly 63 per cent of those who moved for work had KT4 3 registration, and 50 percent of those who moved to improve their living conditions had KT4 registration. 4 That is brieflyabout the current managing residents in Vietnam which is not enough to deal with the migrantfrom rural to urban. Policy attention is needed urgently in the areas of developing social securitysystems for migrants such as Vietnam. Policy makers need to recognize the importance ofmigration for poverty reduction and development. Policy should aim to ease the hardship ofmigrants and facilitate a ﬂexible labour force in the short term, in order to distribute the beneﬁtsof growth as evenly as possible. But there is a need to build human capabilities over the longterm so that people who currently have to depend on such livelihood strategies can diversify intomore remunerative options. Almost every area of policy has direct and indirect effects on rural – urban migration. Forexample, in rural areas export taxes and restrictive credit policies adversely affect ruralemployment and incomes. In urban areas high wages rates are often the result of governmentwages policies. As mentioned above, the different rate of wages and other economic factorsbetween rural and urban attract rural population moving to urban for livelihood. Narrow downthese differences by creating incentives to develop rural economy such as increasing socialsubsidizations while decreasing taxation and interest rates in rural areas. In fact, rural populationis very hard to approach any loans particularly the poors. Thus, besides reducing interest rates,the state needs to loosen the loan conditions, also giving poors more chance to get loans. Fordeveloping rural economy, one other important factor is infrastructure comprise roads, drainagesystem, etc. The rural regions with well connection to cities, other region have more chances todevelop their economy. Training and Education policies are particularly important because of thelarge number of school-leavers in the rural-urban migration stream. Accurate policies in trainingand education could help to raising knowledge of population and supplying skilled labours for3 The system is applied in both urban and rural areas. There are four categories of residents: KT1, KT2, KT3 andKT4. The 2004 Migration Survey defines these categories as follows:• KT1 – Person registered in the district of residence;• KT2 – Person not registered in the district of residence, but registered at another district of the same province;• KT3 – Person who has temporary registration for a period of six months and more;• KT4 – Person who has temporary registration for a period of less than six months.There is also a category of “no registration” at the destination4 From national census 2004. Page | 4
development local economy. Some other policies are improving the living condition in urbanareas e.g. providing sufficient electricity, clean water, entertainment conditions, etc. Finally, the externalities associated with rural-urban migration have implications forformulating a policy toward population distribution and industrial decentralization. Given thesesocial cost of urbanization it may be desirable to provide incentives to encourage thedevelopment of small-scale industry in rural areas and smaller urban areas. The long runimplications of rural-urban migration for population distribution are particularly important inVietnam because of their relatively early stage of urbanization. In conclusion, Rural-urban migration has been a driving force in dismantling the economy,promoting labour market integration, and realizing rapid economic growth. The migrationpolicies have evolved from being very strict to acceptance, encouragement, and facilitation. Thishas come after the realization of the contribution of migration to structural changes andeconomic development. The process of rural-urban migration is a confirmation that thedevelopment of the labour market and the improvement of management capacities are bothimportant in maximizing the benefits from migration. In case of Vietnam, although theunfinished Hộ Khẩu system reform still associates employment with individual identity and sostill hinders labour mobility and causes labour market discrimination, the active policy actionsand legislation in Vietnam in recent years will improve the employment opportunities andwelfare of rural migrant workers and create a condition for finally abolishing the Hộ Khẩusystem. Page | 5
References: Bryan Roberts. “Migration and the agrarian structures”. Chapter 4, pp.89-107 Agesa R.U. (2001) “Migration and the Urban to Rural Earnings Difference: a SampleSelection Approach” Economic Development and Cultural Change, vol. 49, pp. 847-875 General Statistics Ofﬁce. (2005) The 2004 Migration Survey: Major Findings, StatisticalPublishing House, Hanoi, Vietnam. Overseas development Institute. (2006). “Internal migration, poverty and development inAsia” World Migration. (2008) “Internal Migration”, chapter 7, pp.173-199. Hein de Hass. (2008) “The internal dynamics of migration processes” Page | 6
D. URBAN RESIDENTIAL AND ECONOMIC STRUCTURES, PROCESSES AND POLICIES 2. Analyze the evolution of low income housing policies in a developing country of your choice and their association with dominant development strategies. The Evolution of low income housing policies in Vietnam (a developing country) andtheir association with dominant development strategies. Vietnam has been experiencing rapid urbanization owing to economic development since theintroduction of Doimoi policy in 1986. It is projected that by 2020, city dwellers will amount to46 million, about 45% of total population. As a small country with only 329,000 squarekilometers and GDP per capita at slightly more than US1,000. Vietnam is still feeling muchpressure on ensuring adequate housing for all the people. Around 25% of housing stock isclassified by the Government as substandard, or temporary. The situation is especially dire forthe low-income sector. Current housing policies are not suitable for the present situation andonly provide temporary solution to meet urgent housing needs. The increasing of population, urbanization, industrialization taking rapidly has causedproblems in urban housing which is one of the most urgent issues of Vietnam nowadays. AfterThe implementation of Đổi Mới Policy5, The subsidized housing types has been stopped, Privateowner housing type has increasing rapidly. Therefore, Population who want to having ownhouses, must to find in the market. In 1990s, the out breaking in investment of private housing(mostly uncontrolled) has increased supplying of housing for middle and high income class. Inthis period, the managements of housing in general and low cost housing in specific faced manydifficulties. The state was not interested in housing sectors instead of interested in goals ofmodernization and industrialization. The houses which were built in the decade of subsidize, has5 Đổi Mới (English: Renovation) is the name given to the economic reforms initiated in Vietnam in 1986 with thegoal of creating a "socialist-oriented market economy". Page | 7
been degrading because of non-maintained. For nearly ten years, just a few low cost housingprojects have been built. This stagnation has kept on till last 1990s decade, the state hasrecognized the important role of housing sectors. In 2002, New incentive policy has been givenout- Decree no71 (Nghị Định 71/CP) which was about encouragement invest in building lowcost housing and low income housing. It has accompanied with many models of mobilizeresources. But the lacking of related regulations caused to hardly implement these policies. Theparticipation of private investors is mostly in middle and high income housing. However, in some recent years, together with development strategies, some low incomehousing policies have been implemented. The state has taken back the pioneer role inconstruction activities, particularly in supply low income housing. The State owned enterprises(SOEs) such as HUD, HANDICO, and VINACONEX etc have been developing many newurban in the suburban area. Although those housing programs have purpose for serving all thesocial classes include low income earners, but this purpose could be not implemented well. Thereasons could be: Buyers don’t have enough requirement conditions for buying subsidizedhouses; Hardly determine who are eligible for having subsidized etc; the speculation in thehousing market; the investors find less profitable in low income sectors; to deal with thoseissues, the state has implemented such many policies: - Changing from individual construction towards more professional model of mass construction. Building homes copied from design samples and assembling them at construction sites will shorten the overall construction time. Implemented those strategies could help to reduce the prices of housing and quickly provide enough floor areas for population. - According to the incentive policy of the Viet Nam Government for investors in low-income housing, which took effect in June last year, investors will enjoy exemptions on value-added taxes (VAT) and land-use or land-lease charges. - Those who invest in housing projects for low-income earners will also receive a corporate income-tax exemption for the first four years and a 50 per cent discount for the next nine years. After that, the rate will be 10 per cent. (The normal corporate income-tax rate is 25 per cent). Page | 8
- The proportion of housing area on the project sites has been increased by 1.5 times more than what is allowed by current regulations. - Under the Governments policy, investors are also eligible for low-interest loans, loans from localities Housing Development Funds and cleared plots of land. - Pham Si Liem, deputy chairman of the Viet Nam Federation of Civil Engineering Associations, said localities should also assist low-income people, including offering long-term, low-interest bank loans. To ensure security for the loans, the loans should be for around 80 per cent of the houses value, he said. "Creating conditions for buyers will accelerate house demand; then the market will itself increase the supply," Liem said. - To avoid the selling low income houses to the market, all the activities of selling, buying in low income housing is prohibited. If the government discovers any case, the houses could be retrieved. The result after one year of implementing the Governments programmer to build low-income houses, 37 projects nationwide have started, with a total investment of VND3.6 trillion(US$180 million) and total floor space of 750,000 square meters. These projects will provideliving space for a total of 64,000 households. By the end of 2010, construction on 1,653apartments had been completed, with 728 of them sold to residents in Ha Noi and Da Nang. Lastyear, around 1,000 government employees in HCM City were eligible to receive loans approvedby the citys Housing Development Fund. Of that figure, 522 people have received loans for atotal amount of VND132 billion. The remaining people are still looking for housing. Development strategies and housing policies have changed in important ways over the lasttwo decades. Along the evolution of the housing policies since 1990s, diverse actions were takento provide solutions to the most poor. However, stronger and more successful strategies wereimplemented to support actions of the private sector. It is time for the private entrepreneurship toaddress the informality of the society in a consistent manner. Some steps towards this goal werealready taken. Page | 9
Most planning concepts, top-down strategies have given way to market and people-basedsolutions, process approaches, and an emphasis on building capacities and institutions. Housingpolicy has been very much influenced by these dynamics. A sketch of housing policydevelopments of Vientam since the 1990s, shows how an early focus on physical planning andpublic housing gave way, first to "self-help" housing projects (which mostly served middleincome households and proved to be an unsustainable option to address the needs of the poor dueto the high subsidies involved), and then to the "enabling approach" which concentrated onmaximizing the contributions of all the actors in housing production within a supportive legaland regulatory framework . In fact, the promulgation and implementation of any low income policies has direct andindirect effects on development strategies. In one side, it helps to accomplish the social -economic goals. In other side, it contributes partly to orient the national development strategies.These state policies also rely on the broad connections between housing and other developmentstrategies to increase the availability of affordable housing for families and individuals of allincome levels and provide housing that promotes quality regional growth. The quality,availability, and affordability of housing affect the economic competitiveness, tax base, andquality of life of a community. The state policies are helping to ensure that all housing andrelated development priorities are considered and addressed. In conclusion, the most important challenge in low income housing development strategies ofVietnam is how to balance market incentives and private initiative (which are essential toefficient housing delivery), with social and environmental goals and collective action (which arecentral to equity and sustainability). Most importantly housing policy and implementationstrategies should incorporate an integrated vision, which sees adequate housing both as a goal initself and as a contributor to economic growth and social development. The intervention bypolicies of national state in the sector of low income housing is Indispensable. The policies mustto be very accurate, specific and scientific. With well implementation of those policies, the poorsare satisfied with the most fundamental living condition – housing meanwhile the economicgoals are still ensured. Therefore, the policies must to be always evolved to harmonize with othereco-social policies. Policy makers must be able to recognize and build on these linkages so thathousing and other policy goals can be made mutually supportive. Page | 10
References: 1. Dr. Lê Thị Bích Thuận & associates. (2004) Institution of research architecture,Construction ministry “Nghiên cứu các giải pháp đồng bộ phát triển các khu ở, nhà ở cho ngườithu nhập thấp tại các đô thị”, 2. Result of housing Investigate & Census in Vietnam 2009. 3. Researchers from institution researching of architecture & ministry of construction.(2009) “Solution to get the goals of low income housing in Vietnam” 4. Ma. Architect. Than Thuy Ha and associates. (2008) “Policies for management socialhousing in Vietnamese urbans”, chapter 2. 5. Form Vietnam news networks, Http://vietnamnews.com Page | 11