UPDF   May 2003

News about some of the recent activities of the Urban Poor Development Fund in Cambodia 

 

Fifth anniversary of UPDF

Upgrading

 



SDI      ACHR   and     UNCHS 
welcome Prime Minister Hun Sen 
to 5th Anniversary Celebrations of the UPDF
 

The   Urban  Poor  Development  Fund 
was set up in March, 1998 as a joint venture of the Penh
Penh, the Solidarity and Urban Poor Federation (SUPF) and the Asian Coalition for Housing Rights (ACHR). 

The idea was to create a revolving fund which would provide affordable credit to poor communities for housing and income generation, through their savings groups and federations, and use the fund to pool efforts in partnership and development. The fund is governed by a "mixed" board (which includes a majority of community leaders, with representatives from the Municipality, ACHR, NGOs and other development agencies) and managed by a small support staff, with as little bureaucracy and as much flexibility as possible.

UPDF’s task is to use its small resources of money strategically to make other things happen - it’s not just a matter of providing micro-credit. Money can be a powerful tool, and if money - and decisions about how money is used - is channeled in ways which bring people in communities together, it can be a potent people’s process booster. When poor people see clearly that a fund is available to them, and that it supports what they are doing, it can strengthen their hand in negotiations with the state for land, services and access to other resources, and strengthen their capacity to manage their own development process.

It’s hard to imagine a more difficult context than the one in which UPDF operates. Decades of war, political upheaval and unspeakable hardship have torn communities apart in Cambodia, scattered people across the country and obliterated their links with the past. As the country gets back on its feet and money pours into it’s capital city’s free-wheeling economy, poor migrants from the provinces are drawn to the city for jobs in the new factories, on the construction sites and in the burgeoning service and tourism sectors. For the poor, Phnom Penh is a city of hope and opportunity, but when it comes to finding decent, affordable places to live, most have no option but to build shacks in the city’s 550-odd informal settlements, on open land, and along roadsides, railway tracks, canals and rivers, where conditions are unhealthy and insecure.

Cambodia, unlike its neighbors Thailand and Vietnam, still has no formal support systems for the poor: no housing board, no ministry of housing, no legislative mechanisms for regularizing informal settlements, no government programs to provide basic services or to support people’s efforts to improve conditions in their settlements. There is no housing finance to any sector - poor or middle class. And the municipality, which has been overburdened with challenges such as flood control, crime and economic development, has had difficulty responding to the needs of the city’s growing poor population. On the other hand, Cambodia has been the target of innumerable international agencies and a great deal of development aid, which intervenes in virtually every conceivable sector of the country’s development and governance. All this foreign aid and expertise has certainly done many good things for Cambodia, but it has left little space for the urban poor to build their organizations and to explore their own solutions to the problems they face.



May 24 2003  
Prime Minister Hun Sen at the 5 Year Anniversary
Celebrations for UPDF

 

UPDF’s anniversary theme is
 upgrading poor communities
 
where they exist now . . .

The UPDF has been able to provide housing  and income generation loans to only some of the 11,000 families who have been evicted in recent years from their settlements in Phnom Penh. 

These loans have helped people to rebuild their lives at resettlement sites they purchased themselves or at the big government relocation colonies at the outer edges of the city. 

Some of these relocation projects involved a high level of community participation, others didn't. 

The government's commitment to provide alternative land to evicted families has been important, but as Phnom Penh develops, evictions are increasing, and there is a danger that resettlement becomes the ONLY option. 

In fact, most of the city's poor settlements are on land which is not  needed for urban development or infrastructure projects and these settlements could be very nicely upgraded for a fraction of the cost of resettlement. 

These communities provide a much-needed stock of housing for the city’s workers which neither the poor nor the government can afford to replace.  A big investment in housing and services has already gone into these settlements, whose central locations and built-in social support structures are vital to poor people's survival.  

Upgrading basic services and environmental conditions in these settlements is the cheapest and most practical way of improving the lives of Cambodia's urban poor, while making the city a more beautiful place for everyone to live.

 

Next   How to use a fund to mobilize a genuinely people driven development process