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  • URBim | for just and inclusive cities

    By Howaida Kamel, Cairo Community Manager

    I managed to drive across Kasr el Nile bridge at 8:30am to find people already on the streets, cleaning up after four days of protests. I passed the Constitutional Court, where police forces had secured the area so that Judge Adly Mansour, the new interim President, could take his oath. What became publicized rather quickly was the coincidence that Judge Mansour was appointed the Head of the Constitutional Court on June 30, after his predecessor’s term had ended. While some suspect that this might be foul play, he has served on the Constitutional Court since 1992 and has held the position of Vice-President until appointed as the leader by former President Mohamed Morsi.

    At 11am, Judge Adly Mansour was sworn in as the sixth President of the Arab Republic of Egypt. His address to the nation afterward was inspiring, commending the Egyptian people for their strength, the army for its dedication, the leaders of the political opposition for their role in the democratic process, and all other members of Egyptian society that played a significant role in the events of the last few days. He spoke eloquently about his role as President during this interim period and the steps that must be taken to ensure new elections that will satisfy the needs of the country and its people.

    On the streets today, Egyptians are happy that the Muslim Brotherhood has been ousted, and that they were ousted by the people. There is satisfaction that SCAF has not taken control of the country itself once again, and people agree that the appointment of President Mansour was a smart political move. Local media has already picked up on the fact that he did not once use the word “legitimacy” in his speech, unlike the last Presidential speech from Morsi, which included it 74 times.

    Egyptians now feel change. We know what we have accomplished is huge, but we also know that there is still a long way to go. There is a new energy in the country that has been powered by the people’s determination to make Egypt a place for all of us. Jokes have come out that we are experts on removing regimes but absolutely terrible at creating them. Let’s just hope this new energy will give Egypt the extra push it needs to get it right this time.

    Notes from Tahrir: June 30th
    Notes from Tahrir: July 1st
    Notes from Tahrir: July 2nd
    Notes from Tahrir: July 3rd
    Notes from Tahrir: July 4th

  • URBim | for just and inclusive cities

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    2. Work conditions: informality, coersion and change ›

    Catalina Gomez replied on Wed, 07/17/2013 – 11:25 Permalink

    Hi Katy, I agree that the abuses of international companies are to blame for some of the very low working conditions affecting millions of workers in various developing countries. But I also think that globalization is actually helping in many ways to change such abusive reality. In a general way, globalization is making people more aware of the insecure conditions for workers and the tragedies related to them. Being able to see such evidence on TV, and being able to follow it on Facebook and Twitter is also putting some pressure in the companies that are taking advantage on the local cheap labor. The fact is that such information can affect their reputation and therefore their sales.

    In addition, I think that as a global economic and social problem, adequate labor conditions need to be discussed in international audiences and committees, and in this sense global forums might help to put pressure on countries that don’t support minimum standards. What I still consider is a local “duty” and where most countries need to do their “homework” is in strengthening their own legislations and mechanisms to ensure basic standards are really met. Ulfat in her article from Dhaka explains that many garment factory owners are lawmakers as well, creating a clear conflict of interest and very low incentives for change. This leaves room for international/global pressure to support long lasting change in partnership with related local movements and civil society organizations.

  • URBim | for just and inclusive cities

    Micro-finance — the provision of credit and other financial services to micro-entrepreneurs and small businesses that lack access to mainstream banking — has proven to be a remarkably effective way to reduce poverty in cities across the developing world. The principle is simple: through access to credit and related resources, the urban poor are empowered to pull themselves out of poverty. Still, as with all matters of finance and investment, the details matter — especially since the goals of justice and financial inclusion have been so elusive in the past. Read on to learn about micro-finance solutions from Dhaka, Mumbai, Cairo, São Paulo, and Bogotá, and then join the discussion below.

    The Asian University for Women Writing Team, Dhaka Community Managers

    Grameen Bank is one of the most successful experiments in extending credit to Bangladesh’s poor. Many have used microfinance to pull themselves out of poverty. The beginnings of Grameen Bank can be traced back to 1976, when Professor Muhammad Yunus, the head of the Rural Economics Program at the University of Chittagong, launched a research project to examine the possibility of designing a credit delivery system to provide banking services for the rural poor. This research project grew, and as of 2011, Grameen Bank’s 23,144 employees serve 8.349 million borrowers (97 percent of which are women) in 81,379 villages, covering more than 97 percent of the total villages in Bangladesh. Borrowers own 90 percent of the bank’s shares, while the remaining 10 percent is owned by the government.

    The Grameen Bank’s loan system is divided into several steps. The first step is to encourage the poor to believe that they can succeed as an entrepreneur. The poor attend a training program, and then draft a credit proposal. Only then do the beneficiaries receive the funds for investment. The rest of the process includes fund collection, returns, operations, and credit cost.

    Grameen’s methodology encourages borrowers to strive for specific goals in social, educational, and health sectors, known as the “sixteen decisions”. These include helping others in need, drinking clean water, and educating children. Grameen therefore does not limit itself to providing credit, but also works on other development goals.

    Grameen Bank’s work shows how transformative a small amount of money can be in breaking the cycle of poverty. Microfinance has shown to be one of the most effective means of “developing from below,” leading not only to increased income but also to empowerment.

    Photo credit: Schipul

    Carlin Carr, Mumbai Community Manager

    Shaila Satpute and her husband have been running a footwear shop in Mumbai for the last 15 years. Their $130 monthly profit goes to taking care of household expenses and the family’s future — educating their three children, providing them with opportunities Shaila and her husband were unable to access. The Satputes always had aspirations to grow their small business, but were unable to save enough to invest in more stock. That all changed when Shaila took a small loan from Mumbai-based microfinance organization Swadhaar FinServe. Now on her third loan cycle, Shaila’s monthly profit has doubled.

    While the city is full of formal financial institutions, Shaila is one of millions of urban poor who lack the collateral or documentation to access bank loans. In an effort to fill this gap, Veena Mankar launched Swadhaar as an NGO in 2005 to bring the same microcredit services to urban areas that were taking off in rural India. The pioneering organization became Swadhaar FinServe Pvt. Ltd. in 2008. Swadhaar’s clients are nearly all engaged in Mumbai’s large informal economy, running micro-businesses such as food stalls, small general stores, and tailoring services.

    “For a long time, the focus has been on the rural poor, but now, MFIs are also looking at providing financial support to the urban poor,” says an article in DNA, “A micro initiative with a macro objective.” “Now, for the first time, a whole section of Mumbaikars no longer have to rely on local money lenders.”

    Urban microfinance initiatives were slow to enter the market because of misconceptions about the clientele. Poverty in India’s cities is largely from migrant populations who lenders see as “risky,” says an article in the Economic Times. “While it is true that several people from the cities have come from the hinterland, a sizable majority have been around for years, staying in the same place, with the same neighbors,” says the article. “Several of them own the places they stay in. Hence the apprehension that they would vanish without a trace is rather misplaced.”

    The other misconception is that the model of group lending does not work with the individualistic nature of cities. While most Indian villages have formed tight-knit communities, slum areas — by virtue of their close proximity or perhaps their shared determination against all odds — also have developed a strong sense of “oneness” over time. The Economic Times article quotes a microfinance banker: “People who have stayed in the same neighborhood for years, even in cities, have a natural tendency to support each other, as much as their rural counterparts. The social mores of groups are pretty much the same wherever they are.”

    Urban poverty poses its own unique challenges, and as with Swadhaar’s model, lending to the poor requires more than just a loan. In addition to its three tenets: flexibility, convenience and choice, Swadhaar also provides financial literacy programs and supports women in starting or expanding businesses. Urban microfinance has great potential to give greater independence and opportunity to the urban poor, especially women, and hopefully more organizations will continue to see this potential.

    Photo credit: Meanest Indian

    Howaida Kamel, Cairo Community Manager

    Microfinance has proven to be one of the most effective, targeted tools to promote pro-poor economic growth. Inclusive growth is one of post-revolutionary Egypt’s goals, and microfinance is indeed effective in creating growth that focuses on increasing social justice, closing the income gap, and creating new job opportunities. There are over 400 micro-finance institutions (MFIs) currently operate in Egypt, positioning microfinance services as key tools for impacting the poor.

    The Cairo Economic Livelihoods Program (CELP) is one example of a successful microfinance organization that serves Cairo’s poor. A joint effort between the Aga Khan Foundation and the Canadian International Development Agency, CELP concentrates its efforts on the residents of Darb el Ahmar, a district characterized by its poverty, as well as its production of oriental crafts like wood inlaying and tent making. CELP provides microcredit for local residents to develop their crafts, and also provides employability services.

    The microfinance arm of Aga Khan Foundation in Egypt, the First MicroFinance Fund (FMF), works with CELP to provide financial and business development services to help existing businesses with pricing, record keeping, and other necessary business skills. The FMF also helps connect the artisans to buyers of their crafts by organizing exhibitions. These exhibits are located in the more affluent areas of Cairo as well as around the world, including in Italy and Canada. CELP also publishes an online catalogue that displays the work of the Darb el Ahmar community.

    By creating these market linkages and providing business development services in addition to microcredit, FMF has contributed to Cairo’s inclusive growth, providing the poor of Darb el Ahmar with a new source of income. Furthermore, CELP runs its own economic program that coordinates both the vocational training programs and job counseling and placement unit. Vocational trainings are designed to teach the skills needed develop a small business, such as carpentry, plumbing and electrical maintenance. The career center offers advice, and connects residents to jobs based on their skills. To date, CELP has ensured new employment opportunities for over 350 individuals, 40 percent of which are women.

    To highlight the success of microfinance programs as a solution for inclusive growth strategies in Egypt, the Ministry of Planning and International Co-operation published the IMPACT quarterly report in October 2011, in which CELP was featured as a case study. The now former Minister, Mrs. Fayza AboulNaga, emphasized the ministry’s vision to promote inclusive growth and participatory development during Egypt’s political, social and economic transition. While the document emphasizes microfinance as the main tool for Egypt’s inclusive growth strategy, the numbers indicate otherwise. Of the 50 billion Egyptian pounds spent, only 2 billion pounds were earmarked for employment support activities. The rest was allocated for increasing minimum wage, ensuring that temporary workers receive permanent worker status, and increasing the budget for consumer subsidies. While these other solutions are important, they lack the participation of the poor that is inherent to microfinance. CELP’s work in Darb Al Ahmar shows that with a small boost of funding and training, the poor can pull themselves out of poverty.

    Photo credit: Oliver Wilkens/AKDN

    هويدا كامل – مديرة وحدة القاهرة

    أثبت التمويل الأصغر المعروف ب’microfinance’ أنه من الأدوات الأكثر فعالية لتشجيع الفقراء على النمو الاقتصادي. من إحدى أهداف ما بعد الثورة في مصر هو النمو الذي يشمل جميع فقات الشعب، و قد يخلق التمويل الأصغر النمو الشامل الذي يؤدي إلى زيادة فرص العمل وإنتشار العدالة الإجتماعية. هناك حاليا أكثر من ٤٠٠ مؤسسة للتمويل الصغير في مصر، مما يجعل التمويل الأصغر من الخدمات الرئيسية التي تساعد الفقراء.

    منظمة (CELP) من احدي منظمات التمويل الأصغر الناجحة التي تخدم الفقراء في القاهرة. أنشئت (CELP) من خلال جهد مشترك بين مؤسسة الآغا خان والوكالة الكندية للتنمية الدولية، وقد يركز برنامجهم على مساعدة سكان منطقة الدرب الاحمر، وهي منطقة معروفة بالفقر والصناعات اليدوية الشرقية. لتطوير حرف السكان المحليين في الدرب الاحمر، يوفر برنامج (CELP) القروض الصغيرة و خدمات التوظيف لهم.

    يعمل فرع التمويل الأصغر لمؤسسة الآغا خان في مصر(FMF) مع (CELP) لتقديم خدمات التنمية المالية والتجارية لمساعدة الشركات في حفظ السجلات، والتسعير، وغيرهما من مهارات إدارة الأعمال الضرورية. تساعد أيضا منظمة ال-(FMF) الحرفيين على بيع مصنوعاتهم اليدوية من خلال تنظيم المعارض لهم. تقع هذه المعارض في المناطق الغنية في القاهرة، وكذلك في جميع أنحاء العالم، بما في ذلك إيطاليا وكندا. كما ينشر برنامج (CELP) كتالوج على الانترنت لعرض أعمال و فنون مجتمع الدرب الأحمر.

    قد ساهمت منظمة ال-FMF في خلق النهضة الشاملة في القاهرة، وتوفير مصدر جديد للدخل لسكان الدرب الأحمر. وعلاوة على ذلك، تدير منظمة (CELP) برنامج إقتصادي خاص بها لتنسيق برامج التدريب المهني والإرشاد الوظيفي التي تعلم الحرفيين المهارات اللازمة لتطوير الأعمال التجارية الصغيرة مثل النجارة، والسباكة، والصيانة الكهربائية. و يقدم مركز توظيفهم المشورة المهنية لمساعدة السكان على إيجاد وظائف وفقا لمهاراتهم. وقد كفل برنامج (CELP) فرص عمل جديدة لأكثر من ٣٥٠ شخصا حتى الآن، بما في ذلك %٤٠ من النساء.

    لإثبات نجاح برامج التمويل الأصغر في تحقيق النمو الشامل في مصر، نشرت وزارة التخطيط والتعاون الدولي تقرير(IMPACT) الفصلي في أكتوبر ٢٠١١, وشمل هذا التقرير برنامج (CELP) كنموذج دراسي. أكدت وزيرة التعاون الدولي السابقة، السيدة فايزة أبو النجا، دعم الوزارة للمبادرات والجهود التي تعزز النمو الشامل والتنمية التشاركية أثناء المرحلة الانتقالية السياسية, والاجتماعية، و الاقتصادية في مصر. تعرض الوثيقة خدمة التمويل الأصغر كأداة أساسية للنمو الشامل في مصر، ولكن الأرقام تبين خلاف ذلك: على الرغم من إنفاق الوزارة حوالي ٥٠ مليار جنيه مصري لتطوير المجتمع والوضع الاقتصادي، تم تخصيص ٢ مليار جنيه فقط للانشطة التي تدعم العمالة. خصصت بقية الميزانية لرفع مستوى الأجر الأدنى و ميزانية الاعانات للمستهلكين، و ضمان تلقي العمال المؤقتين وظيفة دائمة. قد تكن هذه الجوانب ذات أهمية كبيرة في مجال قطاع العمل ، ولكن هذه الحلول تتجاهل مشكلة عجز الفقراء في إيجاد فرص عمل, و خلافا لخدمات التمويل الأصغر لا تساعد الفقراء على الانضمام إلى القوة العاملة. تبين جهود (CELP) في الدرب الاحمر أن الفقراء يمكنهم تحسين وضعهم الاجتماعي ببساطة من خلال دفعة صغيرة من التمويل والتدريب.

    Catalina Gomez, São Paulo Community Manager

    Para muitos empreendedores dar início a uma microempresa é um grande desafio. É ainda um desafio maior para aqueles microempresários de baixa renda, os quais geralmente não tem como receber crédito do sistema bancário tradicional pela ausência de garantes, e quando conseguir, os juros do crédito estão acima da media.

    Tendo em conta esta situação e para facilitar maior aceso ao crédito dos novos empreendedores, especialmente aqueles de baixa renda, em 2001 foi estabelecido São Paulo Confia, uma instituição sem fins lucrativos, que foi criada por entidades da sociedade civil e atualmente conta com apoio financeiro e gerencial da Prefeitura. Nos últimos dois anos, a instituição atendeu mais de 20 mil microempreendedores.

    O São Paulo Confia oferece um crédito inicial de R$ 3.500 (US$1.900) podendo chegar até R$ 15 mil (US$8.300) de acordo com o desempenho dos beneficiários. O crédito pode ser acessado por todo cidadão maior de 18 anos que tem prova de residência em São Paulo. O empréstimo é concedido individualmente para grupos de três a dez pessoas que formam como “grupos solidários”. Nesses grupos são reunidas pessoas de diversos ramos de atividades que se comprometem a garantir o pagamento do crédito concedido a todos os integrantes. O objetivo dos grupos solidários é fazer com que cada empreendedor acompanhe o pagamento dos créditos dos demais participantes do grupo.

    Anteriormente a receber o beneficio, todos os possíveis beneficiários tem que ter feito o curso básico de empreendedorismo oferecido pelo mesmo programa. O curso está dividido em quatro aulas de três horas cada uma, totalizando 12 horas. Na primeira aula, o empreendedor aprenderá a controlar seu dinheiro abordando temas como os cuidados com o caixa, com as contas a pagar e receber, e a prática desse fluxo de caixa. Na segunda e terceira aulas os alunos receberão noções sobre técnicas de vendas e de compras, e na quarta conhecerão a legislação Microempreendedor Individual. O acesso ao crédito é feito em 23 unidades operacionais instaladas em diferentes localidades da cidade. Nestas unidades tem serviços de acessória assessoria jurídica sem custo.

    Recentemente o mês passado, a Prefeitura anunciou que a Caixa Econômica Federal será o novo agente operador do programa para tentar aumentar as linhas de crédito e oferecer melhores juros. Atualmente, a taxa de juros utilizada é de 3,9% ao mês, que é mais baixa que a media dos bancos comerciais.

    Além de ampliar o número de beneficiários, o principal desafio desta instituição é conseguir beneficiar a aqueles empreendedores mais pobres e apoiar eles na sustentabilidade de seus negócios. Provavelmente as aulas rápidas iniciais ajudam bastante, mais esta população poderia precisar mais acompanhamento e apoio para garantir a sustentabilidade de suas empresas no longo prazo.

    Foto: São Paulo Confia

    Catalina Gomez, São Paulo Community Manager

    For many entrepreneurs around the globe, starting a new business is a great challenge. Launching a new business is even harder for micro-entrepreneurs from low-income communities: they generally lack access to credit because they have no guarantors. When they do manage to get credit, the interest rate is often much higher than usual, limiting the possibilities to launch a business and to live off it.

    In order to address this situation and to promote greater access to credit for entrepreneurs, especially those with less education and income, the institution São Paulo Confia (São Paulo Trusts) was established in São Paulo in 2001. This institution is a nonprofit initiative that was created by civil society organizations and is currently managed and financially supported by the city’s local government. In the last two years alone, the institution has benefited more than 20,000 entrepreneurs.

    São Paulo Confia offers an initial credit of R$3,500 (USD $1,900) and increases to R$15,000 (USD $8,300), depending on the beneficiaries’ performance. This funding can be borrowed by any São Paulo resident over the age of 18 with a business idea. The loans are granted to individuals who then form groups of three to ten people, known as “solidarity groups.” These groups diffuse credit risk, since the members commit to assisting each other in case of financial difficulty. This group model also ensures that credit payment is carried out in a timely manner.

    Before receiving the initial credit, all potential beneficiaries must complete basic training on entrepreneurship, provided by São Paulo Confia. The training is composed of four three-hour sessions. In the first one, the entrepreneur learns about basic terms and practices, including cash flow management. The second and third sessions cover buying and selling techniques. The last session is dedicated to learning about the local legislation on individual micro-entrepreneurs. These services are provided in 23 São Paulo Confia units all around the city, where there are also advisory services available on how to become a legal entrepreneur, as well as free specialized legal counseling.

    The local government recently announced that São Paulo Confia’s new operator would be the Caixa Econômica Federal, a mixed-income bank. Caixa intends to increase the number of beneficiaries and offer new services and benefits, including lower interest rates. The credit’s current monthly interest rate is 3.9 percent, which is already lower than the average commercial banks.

    Besides expanding the already high number of beneficiaries, the greatest challenge this institution faces is improving its targeting to the poorest populations. São Paulo Confia also needs to improve its support to clients, especially regarding long-term sustainability. The existing 12-hour crash course is a good start, but expanded, longer-term counseling would be ideal to provide additional support.

    Photo credit: São Paulo Confia

    Jorge Bela, Gestor Comunitario de Bogotá

    La exclusión financiera es uno de los principales frenos para la salida de la pobreza, especialmente en el caso de las poblaciones más vulnerables, como madres solteras, desplazados, indígenas o afrodescendientes. En Bogotá, las empresas medianas, pequeñas, micro y familiares constituyen el 98 por ciento del total, pero de éstas tan solo el 29 por ciento tiene acceso al crédito que ofrece la banca comercial. Aunque el sector de los microcréditos ha aumentado de forma significativa en Colombia, duplicándose la cartera en el periodo 2006 al 2012, en parte gracias al apoyo del gobierno, las altas tasas de interés y los requisitos de garantías e idoneidad exigidas por las entidades privadas hacen muy difícil el acceso al crédito precisamente a los sectores más desfavorecidos. Las ONGs no disponen de fondos suficientes para cubrir la demanda, y las microempresas y empresas familiares quedan en muchos casos sujetas al sector financiero informal, conocido como “gota a gota,” con tasas de interés exorbitantes.

    Como forma de paliar este problema, la Alcaldía de Bogotá ha lanzado una iniciativa innovadora: la creación de un banco de primer piso, con una inversión inicial de 250.000 millones de pesos (unos 137 millones de dólares). El objetivo de este banco es ofrecer microcréditos, microseguros, además de otros servicios financieros como créditos de vivienda y consumo, especialmente dirigidos a poblaciones vulnerables. Aunque la participación municipal en la ayuda de la obtención de microcréditos no es novedosa, sí lo es la creación de un banco de primer piso con un enfoque integral.

    Para el Secretario de Desarrollo Económico de Bogotá, Carlos Simancas Narváez, la ayuda pública es la única forma de conseguir que las poblaciones más vulnerables tengan acceso al crédito, aunque ve la intervención municipal como una fase temporal, destinada a ser suprimida una vez que las entidades privadas y las ONGs tengan la capacidad suficiente para cumplir plenamente esta función. Respecto al banco de primer piso, estima que la mejor forma de proceder es la compra de una entidad financiera, lo que permitiría ofrecer desde un primer momento atención integral, lo que constituye una prioridad para la Alcaldía. En este sentido, la cantidad aprobada por el Concejo de Bogotá no permite la adquisición de un banco, centrándose la búsqueda en una corporación financiera. Si bien este tipo de instituciones, a diferencia de los bancos, no pueden abrir cuentas corrientes, si puede captar recursos mediante certificados de depósito. Esto permitiría aprovechar parte de los ingentes recursos financieros de Bogotá que ahora se depositan en entidades financieras comerciales, según afirma Simancas.

    La única forma de que una iniciativa de este tipo funcione es ofrecer a las microempresas un acompañamiento integral, con una revisión previa de los planes de negocio, formación, seguimiento y la utilización simultánea de otros servicios, como los microseguros, que ofrecen una garantía adicional de cobro en caso de fallecimiento. La estructura liviana y ágil de las corporaciones financieras permite cumplir estos objetivos con una mayor eficiencia y menores costes. Las corporaciones financieras están en todo caso sujetas a la regulación y supervisión de la Superintendencia Financiera.

    Aunque el futuro del banco de primer piso es ún incierto debido a la compleja situación política de Bogotá, la Alcaldía sigue impulsando otras vías innovadoras de apoyo al microcrédito, en conjunto con ONGs y operadores financieros. Para el año 2013 cuentan para este fin con un presupuesto de 38.000 millones de pesos (unos 21millones de dólares), que se convierten en 63.000 millones (unos 35 millones de dólares) si se le suman las aportaciones que hacen las entidades privadas. Una cantidad pequeña para una ciudad tan grande, pero crítica para las poblaciones a las que se dirige, que pueden de esta forma escapar del gota a gota y en última instancia cumplir el objetivo final de estas políticas: que escapen también de la pobreza.

  • URBim | for just and inclusive cities

    Micro-finance — the provision of credit and other financial services to micro-entrepreneurs and small businesses that lack access to mainstream banking — has proven to be a remarkably effective way to reduce poverty in cities across the developing world. The principle is simple: through access to credit and related resources, the urban poor are empowered to pull themselves out of poverty. Still, as with all matters of finance and investment, the details matter — especially since the goals of justice and financial inclusion have been so elusive in the past. Read on to learn about micro-finance solutions from Dhaka, Mumbai, Cairo, São Paulo, and Bogotá, and then join the discussion below.

    The Asian University for Women Writing Team, Dhaka Community Managers

    Grameen Bank is one of the most successful experiments in extending credit to Bangladesh’s poor. Many have used microfinance to pull themselves out of poverty. The beginnings of Grameen Bank can be traced back to 1976, when Professor Muhammad Yunus, the head of the Rural Economics Program at the University of Chittagong, launched a research project to examine the possibility of designing a credit delivery system to provide banking services for the rural poor. This research project grew, and as of 2011, Grameen Bank’s 23,144 employees serve 8.349 million borrowers (97 percent of which are women) in 81,379 villages, covering more than 97 percent of the total villages in Bangladesh. Borrowers own 90 percent of the bank’s shares, while the remaining 10 percent is owned by the government.

    The Grameen Bank’s loan system is divided into several steps. The first step is to encourage the poor to believe that they can succeed as an entrepreneur. The poor attend a training program, and then draft a credit proposal. Only then do the beneficiaries receive the funds for investment. The rest of the process includes fund collection, returns, operations, and credit cost.

    Grameen’s methodology encourages borrowers to strive for specific goals in social, educational, and health sectors, known as the “sixteen decisions”. These include helping others in need, drinking clean water, and educating children. Grameen therefore does not limit itself to providing credit, but also works on other development goals.

    Grameen Bank’s work shows how transformative a small amount of money can be in breaking the cycle of poverty. Microfinance has shown to be one of the most effective means of “developing from below,” leading not only to increased income but also to empowerment.

    Photo credit: Schipul

    Carlin Carr, Mumbai Community Manager

    Shaila Satpute and her husband have been running a footwear shop in Mumbai for the last 15 years. Their $130 monthly profit goes to taking care of household expenses and the family’s future — educating their three children, providing them with opportunities Shaila and her husband were unable to access. The Satputes always had aspirations to grow their small business, but were unable to save enough to invest in more stock. That all changed when Shaila took a small loan from Mumbai-based microfinance organization Swadhaar FinServe. Now on her third loan cycle, Shaila’s monthly profit has doubled.

    While the city is full of formal financial institutions, Shaila is one of millions of urban poor who lack the collateral or documentation to access bank loans. In an effort to fill this gap, Veena Mankar launched Swadhaar as an NGO in 2005 to bring the same microcredit services to urban areas that were taking off in rural India. The pioneering organization became Swadhaar FinServe Pvt. Ltd. in 2008. Swadhaar’s clients are nearly all engaged in Mumbai’s large informal economy, running micro-businesses such as food stalls, small general stores, and tailoring services.

    “For a long time, the focus has been on the rural poor, but now, MFIs are also looking at providing financial support to the urban poor,” says an article in DNA, “A micro initiative with a macro objective.” “Now, for the first time, a whole section of Mumbaikars no longer have to rely on local money lenders.”

    Urban microfinance initiatives were slow to enter the market because of misconceptions about the clientele. Poverty in India’s cities is largely from migrant populations who lenders see as “risky,” says an article in the Economic Times. “While it is true that several people from the cities have come from the hinterland, a sizable majority have been around for years, staying in the same place, with the same neighbors,” says the article. “Several of them own the places they stay in. Hence the apprehension that they would vanish without a trace is rather misplaced.”

    The other misconception is that the model of group lending does not work with the individualistic nature of cities. While most Indian villages have formed tight-knit communities, slum areas — by virtue of their close proximity or perhaps their shared determination against all odds — also have developed a strong sense of “oneness” over time. The Economic Times article quotes a microfinance banker: “People who have stayed in the same neighborhood for years, even in cities, have a natural tendency to support each other, as much as their rural counterparts. The social mores of groups are pretty much the same wherever they are.”

    Urban poverty poses its own unique challenges, and as with Swadhaar’s model, lending to the poor requires more than just a loan. In addition to its three tenets: flexibility, convenience and choice, Swadhaar also provides financial literacy programs and supports women in starting or expanding businesses. Urban microfinance has great potential to give greater independence and opportunity to the urban poor, especially women, and hopefully more organizations will continue to see this potential.

    Photo credit: Meanest Indian

    Howaida Kamel, Cairo Community Manager

    Microfinance has proven to be one of the most effective, targeted tools to promote pro-poor economic growth. Inclusive growth is one of post-revolutionary Egypt’s goals, and microfinance is indeed effective in creating growth that focuses on increasing social justice, closing the income gap, and creating new job opportunities. There are over 400 micro-finance institutions (MFIs) currently operate in Egypt, positioning microfinance services as key tools for impacting the poor.

    The Cairo Economic Livelihoods Program (CELP) is one example of a successful microfinance organization that serves Cairo’s poor. A joint effort between the Aga Khan Foundation and the Canadian International Development Agency, CELP concentrates its efforts on the residents of Darb el Ahmar, a district characterized by its poverty, as well as its production of oriental crafts like wood inlaying and tent making. CELP provides microcredit for local residents to develop their crafts, and also provides employability services.

    The microfinance arm of Aga Khan Foundation in Egypt, the First MicroFinance Fund (FMF), works with CELP to provide financial and business development services to help existing businesses with pricing, record keeping, and other necessary business skills. The FMF also helps connect the artisans to buyers of their crafts by organizing exhibitions. These exhibits are located in the more affluent areas of Cairo as well as around the world, including in Italy and Canada. CELP also publishes an online catalogue that displays the work of the Darb el Ahmar community.

    By creating these market linkages and providing business development services in addition to microcredit, FMF has contributed to Cairo’s inclusive growth, providing the poor of Darb el Ahmar with a new source of income. Furthermore, CELP runs its own economic program that coordinates both the vocational training programs and job counseling and placement unit. Vocational trainings are designed to teach the skills needed develop a small business, such as carpentry, plumbing and electrical maintenance. The career center offers advice, and connects residents to jobs based on their skills. To date, CELP has ensured new employment opportunities for over 350 individuals, 40 percent of which are women.

    To highlight the success of microfinance programs as a solution for inclusive growth strategies in Egypt, the Ministry of Planning and International Co-operation published the IMPACT quarterly report in October 2011, in which CELP was featured as a case study. The now former Minister, Mrs. Fayza AboulNaga, emphasized the ministry’s vision to promote inclusive growth and participatory development during Egypt’s political, social and economic transition. While the document emphasizes microfinance as the main tool for Egypt’s inclusive growth strategy, the numbers indicate otherwise. Of the 50 billion Egyptian pounds spent, only 2 billion pounds were earmarked for employment support activities. The rest was allocated for increasing minimum wage, ensuring that temporary workers receive permanent worker status, and increasing the budget for consumer subsidies. While these other solutions are important, they lack the participation of the poor that is inherent to microfinance. CELP’s work in Darb Al Ahmar shows that with a small boost of funding and training, the poor can pull themselves out of poverty.

    Photo credit: Oliver Wilkens/AKDN

    هويدا كامل – مديرة وحدة القاهرة

    أثبت التمويل الأصغر المعروف ب’microfinance’ أنه من الأدوات الأكثر فعالية لتشجيع الفقراء على النمو الاقتصادي. من إحدى أهداف ما بعد الثورة في مصر هو النمو الذي يشمل جميع فقات الشعب، و قد يخلق التمويل الأصغر النمو الشامل الذي يؤدي إلى زيادة فرص العمل وإنتشار العدالة الإجتماعية. هناك حاليا أكثر من ٤٠٠ مؤسسة للتمويل الصغير في مصر، مما يجعل التمويل الأصغر من الخدمات الرئيسية التي تساعد الفقراء.

    منظمة (CELP) من احدي منظمات التمويل الأصغر الناجحة التي تخدم الفقراء في القاهرة. أنشئت (CELP) من خلال جهد مشترك بين مؤسسة الآغا خان والوكالة الكندية للتنمية الدولية، وقد يركز برنامجهم على مساعدة سكان منطقة الدرب الاحمر، وهي منطقة معروفة بالفقر والصناعات اليدوية الشرقية. لتطوير حرف السكان المحليين في الدرب الاحمر، يوفر برنامج (CELP) القروض الصغيرة و خدمات التوظيف لهم.

    يعمل فرع التمويل الأصغر لمؤسسة الآغا خان في مصر(FMF) مع (CELP) لتقديم خدمات التنمية المالية والتجارية لمساعدة الشركات في حفظ السجلات، والتسعير، وغيرهما من مهارات إدارة الأعمال الضرورية. تساعد أيضا منظمة ال-(FMF) الحرفيين على بيع مصنوعاتهم اليدوية من خلال تنظيم المعارض لهم. تقع هذه المعارض في المناطق الغنية في القاهرة، وكذلك في جميع أنحاء العالم، بما في ذلك إيطاليا وكندا. كما ينشر برنامج (CELP) كتالوج على الانترنت لعرض أعمال و فنون مجتمع الدرب الأحمر.

    قد ساهمت منظمة ال-FMF في خلق النهضة الشاملة في القاهرة، وتوفير مصدر جديد للدخل لسكان الدرب الأحمر. وعلاوة على ذلك، تدير منظمة (CELP) برنامج إقتصادي خاص بها لتنسيق برامج التدريب المهني والإرشاد الوظيفي التي تعلم الحرفيين المهارات اللازمة لتطوير الأعمال التجارية الصغيرة مثل النجارة، والسباكة، والصيانة الكهربائية. و يقدم مركز توظيفهم المشورة المهنية لمساعدة السكان على إيجاد وظائف وفقا لمهاراتهم. وقد كفل برنامج (CELP) فرص عمل جديدة لأكثر من ٣٥٠ شخصا حتى الآن، بما في ذلك %٤٠ من النساء.

    لإثبات نجاح برامج التمويل الأصغر في تحقيق النمو الشامل في مصر، نشرت وزارة التخطيط والتعاون الدولي تقرير(IMPACT) الفصلي في أكتوبر ٢٠١١, وشمل هذا التقرير برنامج (CELP) كنموذج دراسي. أكدت وزيرة التعاون الدولي السابقة، السيدة فايزة أبو النجا، دعم الوزارة للمبادرات والجهود التي تعزز النمو الشامل والتنمية التشاركية أثناء المرحلة الانتقالية السياسية, والاجتماعية، و الاقتصادية في مصر. تعرض الوثيقة خدمة التمويل الأصغر كأداة أساسية للنمو الشامل في مصر، ولكن الأرقام تبين خلاف ذلك: على الرغم من إنفاق الوزارة حوالي ٥٠ مليار جنيه مصري لتطوير المجتمع والوضع الاقتصادي، تم تخصيص ٢ مليار جنيه فقط للانشطة التي تدعم العمالة. خصصت بقية الميزانية لرفع مستوى الأجر الأدنى و ميزانية الاعانات للمستهلكين، و ضمان تلقي العمال المؤقتين وظيفة دائمة. قد تكن هذه الجوانب ذات أهمية كبيرة في مجال قطاع العمل ، ولكن هذه الحلول تتجاهل مشكلة عجز الفقراء في إيجاد فرص عمل, و خلافا لخدمات التمويل الأصغر لا تساعد الفقراء على الانضمام إلى القوة العاملة. تبين جهود (CELP) في الدرب الاحمر أن الفقراء يمكنهم تحسين وضعهم الاجتماعي ببساطة من خلال دفعة صغيرة من التمويل والتدريب.

    Catalina Gomez, São Paulo Community Manager

    Para muitos empreendedores dar início a uma microempresa é um grande desafio. É ainda um desafio maior para aqueles microempresários de baixa renda, os quais geralmente não tem como receber crédito do sistema bancário tradicional pela ausência de garantes, e quando conseguir, os juros do crédito estão acima da media.

    Tendo em conta esta situação e para facilitar maior aceso ao crédito dos novos empreendedores, especialmente aqueles de baixa renda, em 2001 foi estabelecido São Paulo Confia, uma instituição sem fins lucrativos, que foi criada por entidades da sociedade civil e atualmente conta com apoio financeiro e gerencial da Prefeitura. Nos últimos dois anos, a instituição atendeu mais de 20 mil microempreendedores.

    O São Paulo Confia oferece um crédito inicial de R$ 3.500 (US$1.900) podendo chegar até R$ 15 mil (US$8.300) de acordo com o desempenho dos beneficiários. O crédito pode ser acessado por todo cidadão maior de 18 anos que tem prova de residência em São Paulo. O empréstimo é concedido individualmente para grupos de três a dez pessoas que formam como “grupos solidários”. Nesses grupos são reunidas pessoas de diversos ramos de atividades que se comprometem a garantir o pagamento do crédito concedido a todos os integrantes. O objetivo dos grupos solidários é fazer com que cada empreendedor acompanhe o pagamento dos créditos dos demais participantes do grupo.

    Anteriormente a receber o beneficio, todos os possíveis beneficiários tem que ter feito o curso básico de empreendedorismo oferecido pelo mesmo programa. O curso está dividido em quatro aulas de três horas cada uma, totalizando 12 horas. Na primeira aula, o empreendedor aprenderá a controlar seu dinheiro abordando temas como os cuidados com o caixa, com as contas a pagar e receber, e a prática desse fluxo de caixa. Na segunda e terceira aulas os alunos receberão noções sobre técnicas de vendas e de compras, e na quarta conhecerão a legislação Microempreendedor Individual. O acesso ao crédito é feito em 23 unidades operacionais instaladas em diferentes localidades da cidade. Nestas unidades tem serviços de acessória assessoria jurídica sem custo.

    Recentemente o mês passado, a Prefeitura anunciou que a Caixa Econômica Federal será o novo agente operador do programa para tentar aumentar as linhas de crédito e oferecer melhores juros. Atualmente, a taxa de juros utilizada é de 3,9% ao mês, que é mais baixa que a media dos bancos comerciais.

    Além de ampliar o número de beneficiários, o principal desafio desta instituição é conseguir beneficiar a aqueles empreendedores mais pobres e apoiar eles na sustentabilidade de seus negócios. Provavelmente as aulas rápidas iniciais ajudam bastante, mais esta população poderia precisar mais acompanhamento e apoio para garantir a sustentabilidade de suas empresas no longo prazo.

    Foto: São Paulo Confia

    Catalina Gomez, São Paulo Community Manager

    For many entrepreneurs around the globe, starting a new business is a great challenge. Launching a new business is even harder for micro-entrepreneurs from low-income communities: they generally lack access to credit because they have no guarantors. When they do manage to get credit, the interest rate is often much higher than usual, limiting the possibilities to launch a business and to live off it.

    In order to address this situation and to promote greater access to credit for entrepreneurs, especially those with less education and income, the institution São Paulo Confia (São Paulo Trusts) was established in São Paulo in 2001. This institution is a nonprofit initiative that was created by civil society organizations and is currently managed and financially supported by the city’s local government. In the last two years alone, the institution has benefited more than 20,000 entrepreneurs.

    São Paulo Confia offers an initial credit of R$3,500 (USD $1,900) and increases to R$15,000 (USD $8,300), depending on the beneficiaries’ performance. This funding can be borrowed by any São Paulo resident over the age of 18 with a business idea. The loans are granted to individuals who then form groups of three to ten people, known as “solidarity groups.” These groups diffuse credit risk, since the members commit to assisting each other in case of financial difficulty. This group model also ensures that credit payment is carried out in a timely manner.

    Before receiving the initial credit, all potential beneficiaries must complete basic training on entrepreneurship, provided by São Paulo Confia. The training is composed of four three-hour sessions. In the first one, the entrepreneur learns about basic terms and practices, including cash flow management. The second and third sessions cover buying and selling techniques. The last session is dedicated to learning about the local legislation on individual micro-entrepreneurs. These services are provided in 23 São Paulo Confia units all around the city, where there are also advisory services available on how to become a legal entrepreneur, as well as free specialized legal counseling.

    The local government recently announced that São Paulo Confia’s new operator would be the Caixa Econômica Federal, a mixed-income bank. Caixa intends to increase the number of beneficiaries and offer new services and benefits, including lower interest rates. The credit’s current monthly interest rate is 3.9 percent, which is already lower than the average commercial banks.

    Besides expanding the already high number of beneficiaries, the greatest challenge this institution faces is improving its targeting to the poorest populations. São Paulo Confia also needs to improve its support to clients, especially regarding long-term sustainability. The existing 12-hour crash course is a good start, but expanded, longer-term counseling would be ideal to provide additional support.

    Photo credit: São Paulo Confia

    Jorge Bela, Gestor Comunitario de Bogotá

    La exclusión financiera es uno de los principales frenos para la salida de la pobreza, especialmente en el caso de las poblaciones más vulnerables, como madres solteras, desplazados, indígenas o afrodescendientes. En Bogotá, las empresas medianas, pequeñas, micro y familiares constituyen el 98 por ciento del total, pero de éstas tan solo el 29 por ciento tiene acceso al crédito que ofrece la banca comercial. Aunque el sector de los microcréditos ha aumentado de forma significativa en Colombia, duplicándose la cartera en el periodo 2006 al 2012, en parte gracias al apoyo del gobierno, las altas tasas de interés y los requisitos de garantías e idoneidad exigidas por las entidades privadas hacen muy difícil el acceso al crédito precisamente a los sectores más desfavorecidos. Las ONGs no disponen de fondos suficientes para cubrir la demanda, y las microempresas y empresas familiares quedan en muchos casos sujetas al sector financiero informal, conocido como “gota a gota,” con tasas de interés exorbitantes.

    Como forma de paliar este problema, la Alcaldía de Bogotá ha lanzado una iniciativa innovadora: la creación de un banco de primer piso, con una inversión inicial de 250.000 millones de pesos (unos 137 millones de dólares). El objetivo de este banco es ofrecer microcréditos, microseguros, además de otros servicios financieros como créditos de vivienda y consumo, especialmente dirigidos a poblaciones vulnerables. Aunque la participación municipal en la ayuda de la obtención de microcréditos no es novedosa, sí lo es la creación de un banco de primer piso con un enfoque integral.

    Para el Secretario de Desarrollo Económico de Bogotá, Carlos Simancas Narváez, la ayuda pública es la única forma de conseguir que las poblaciones más vulnerables tengan acceso al crédito, aunque ve la intervención municipal como una fase temporal, destinada a ser suprimida una vez que las entidades privadas y las ONGs tengan la capacidad suficiente para cumplir plenamente esta función. Respecto al banco de primer piso, estima que la mejor forma de proceder es la compra de una entidad financiera, lo que permitiría ofrecer desde un primer momento atención integral, lo que constituye una prioridad para la Alcaldía. En este sentido, la cantidad aprobada por el Concejo de Bogotá no permite la adquisición de un banco, centrándose la búsqueda en una corporación financiera. Si bien este tipo de instituciones, a diferencia de los bancos, no pueden abrir cuentas corrientes, si puede captar recursos mediante certificados de depósito. Esto permitiría aprovechar parte de los ingentes recursos financieros de Bogotá que ahora se depositan en entidades financieras comerciales, según afirma Simancas.

    La única forma de que una iniciativa de este tipo funcione es ofrecer a las microempresas un acompañamiento integral, con una revisión previa de los planes de negocio, formación, seguimiento y la utilización simultánea de otros servicios, como los microseguros, que ofrecen una garantía adicional de cobro en caso de fallecimiento. La estructura liviana y ágil de las corporaciones financieras permite cumplir estos objetivos con una mayor eficiencia y menores costes. Las corporaciones financieras están en todo caso sujetas a la regulación y supervisión de la Superintendencia Financiera.

    Aunque el futuro del banco de primer piso es ún incierto debido a la compleja situación política de Bogotá, la Alcaldía sigue impulsando otras vías innovadoras de apoyo al microcrédito, en conjunto con ONGs y operadores financieros. Para el año 2013 cuentan para este fin con un presupuesto de 38.000 millones de pesos (unos 21millones de dólares), que se convierten en 63.000 millones (unos 35 millones de dólares) si se le suman las aportaciones que hacen las entidades privadas. Una cantidad pequeña para una ciudad tan grande, pero crítica para las poblaciones a las que se dirige, que pueden de esta forma escapar del gota a gota y en última instancia cumplir el objetivo final de estas políticas: que escapen también de la pobreza.

  • URBim | for just and inclusive cities

    A música “Happy” e seu clipe, do cantor Pharrell William, provocaram um movimento mundial nas ruas de diversas cidades de todos os continentes. O clipe que mostra Pharrell, amigos e pessoas comuns dançando e felizes nas ruas de L.A., inspirou diversas versões de diferentes cidades. No Brasil não foi diferente, e algumas prefeituras aproveitaram para criar suas próprias versões, como aconteceu em Porto Alegre e Curitiba. Leia mais.

    Pharrell William’s song “Happy” and its 24 hours videoclip with him, his friends and ordinary people dancing in L.A. streets, provoked an worldwide movement of people celebrating and dancing over streets of all continents. Many cities made their own version of the video, including some in Brazil, where even City Halls created their versions – as it happened in Porto Alegre and Curitiba. Read more.

    Submitted by Carla Link — Wed, 04/16/2014 – 12:49

    O Brasil está vivendo um delicado momento com o aumento da violência e com uma sensação generalizada de falta de segurança. Manchetes se repetem em todo o país – roubos, assassinatos, violência no trânsito. Se por um lado, temos um Governo ineficiente sem a força necessária para combater essa insegurança; por outro, vemos uma sociedade impaciente e começando a fazer “justiça com as próprias mãos”. Leia mais.

    Brazil is living a difficult moment, with the increase of violence and lack of security. The main headlines in different parts of Brazil are the same – robberies attacks, murders, traffic disasters. On one hand, we have an inefficient government with no power to solve problems and reduce insecurity; and on the other, a impatient society that starts feeling the need to take justice into their own hands. Read more.

    Submitted by Carla Link — Mon, 03/17/2014 – 17:18 Submitted by Editor — Thu, 03/13/2014 – 10:38

    Ano passado, o mundo viu uma transformação no Brasil com os jovens indo às ruas pedindo por novas medidas para as questões de mobilidade no país. Após uma violenta resposta policial nos primeiros dias de manifestações, a causa ganhou mais força em todo o país. A frase “Não é pelos 20 centavos” ficou famosa e foi usada para representar angústia e desejo dos jovens por novas soluções — mais sustentáveis e sociais (em mobilidade, na política, na econômica, etc). As reivindicações eram muito mais profundas do que o aumento de 20 centavos da passagem. As manifestações, porém, aconteceram há mais de 6 meses e o que mudou no Brasil — principalmente no que se refere a mobilidade? Leia mais.

    Last year, the world saw a transformation in Brazil: young Brazilians went to the streets asking for better mobility solutions. After a strong and violent response from the police in the first days of protests, the cause gained more and more depth all over the country. The phrase “It’s not about the 20 cents” became famous and it was used to represent their anguish and plea for a more sustainable and practical mobility solution. It wasn’t about the 20 cent rise in fares, it was about so much more! In some cities, the protests were successful in preventing the fares from rising. It has now been more than six months since the protests: what has changed in the Brazilian transportation scenario? Read more.

    Submitted by Carla Link — Tue, 02/25/2014 – 10:55

    Na competição por água no Rio de Janeiro as zonas Norte e Oeste — mais carentes que a famosa Zona Sul — estão claramente perdendo. A cidade enfrenta um dos verões mais quentes dos últimos tempos e alguns bairros tiveram seu fornecimento de água intermitente por semanas nesse Janeiro, devido em parte à falta de reservatórios em larga escala e à manutenção incipiente na rede de fornecimento. Leia mais o discutir.

    In the competition for water, Rio’s North and West zones — poorer than the fancy Southern zone of the city — are clearly losing. The city is facing one of the hottest summer seasons in recent years, and some neighborhoods’ water supply has been intermittent for weeks in the past month, due to the lack of large-scale reservoirs and maintenance of the water supply system. Read more or join the discussion.

    Submitted by Eliana Barbosa — Mon, 02/10/2014 – 00:00

    Os “Nem-Nem” são jovens entre 15 e 24 anos que nem estudam, nem trabalham, nem procuram emprego. Segundo dados do último censo, Brasil tem mais de 5 milhões de “Nem- Nem” no seu território, com grande concentração nas áreas urbanas. Rio atualmente tem mais de 150 mil “Nem-Nem”; preocupa que aquela população cresceu em 30 mil entre 2000 e 2010. Quais são as causas deste fenômeno? E quais são as respostas da cidade para enfrentar aquela situação? Leia mais o discutir.

    A “NEET” is a youth between ages 15 to 24 who does not study and does not work. According to the latest Brazilian census, there are more than 5 million “NEETs” throughout the country, mainly concentrated in urban areas. In Rio alone, there are more than 150,000, and the number is rising: between 2000 and 2010, there were more than 30,000 new “NEETs.” What are the causes of this phenomenon and what is the city doing to respond to this situation? Read more or join the discussion.

    Submitted by Catalina Gomez — Mon, 11/11/2013 – 00:00

    Rio de Janeiro está avançando na expansão efetiva da titulação de terras e beneficiando a sua população mais vulnerável. Esta direção positiva é o resultado da implementação do programa habitacional Minha Casa Minha Vida e do programa de melhoramento de bairros Morar Carioca Leia mais o discutir.

    Rio de Janeiro is actively moving forward with the expansion of effective land titling for its most vulnerable citizens. This positive trend is the result of the implementation of programs such as Minha Casa Minha Vida, the national housing program, and Morar Carioca, the city’s urban upgrading program. Read more or join the discussion.

    Submitted by Catalina Gomez — Mon, 10/21/2013 – 00:00

    É assim que Luiz Henrique do Nascimento define as favelas. Ele é o coordenador do Observatório de Favelas e da Escola Popular de Comunicação Crítica, iniciativas cariocas que querem mudar o paradigma dos jovens das favelas brasileiras: de pobres e violentos para potentes e criativos. Leia mais.

    Powerful, creative and supportive – that’s how Luis Henrique Nascimento defines the slum environment. He is the coordinator of Observatório de Favelas (“Slums Observatory”) and the Escola Popular de Comunicação Crítica (“Popular School of Critical Communication”) in Rio de Janeiro. These initiatives aim to change the slums’ youth paradigm: from poor and violent to powerful and creative. Read more.

    Submitted by Editor — Tue, 10/08/2013 – 11:36

    Segundo Rio Como Vamos, a insatisfação dos cariocas com a mobilidade e o transporte público da cidade vem crescendo nos últimos anos. A mais recente pesquisa da Rio Como Vamos foi feita em 2013 previamente aos protestos de Junho. Para compreender aquela insatisfação coletiva é importante conhecer melhor as condições do sistema de transporte público da cidade para identificar suas fraquezas e potenciais soluções. Leia mais o discutir.

    According to Rio Como Vamos, the unhappiness of residents towards mobility and transportation infrastructure in Rio is on the rise. The most recent research was carried out in 2013, before the June protests started. To explain this collective disapproval, it is worth taking a closer look into the city’s public transportation system to better understand its failures and some of its potential solutions. Read more or join the discussion.

    Submitted by Catalina Gomez — Mon, 09/30/2013 – 00:00

    Last week, the New Cities Foundation’s Executive Director, Mathieu Lefevre, wrote an article for Ashoka’s Next Billion on the results of the Foundation’s E-health project in Rio de Janeiro. The project was the first major study looking at the impact of integrating e-health technology in low-resource, densely populated, urban settings. The New Cities Foundation is currently looking to dramatically extend the project with the city of Rio to cover most of the city’s favelas. Read more.

    Submitted by Editor — Thu, 09/26/2013 – 10:17

  • URBim | for just and inclusive cities

    A música “Happy” e seu clipe, do cantor Pharrell William, provocaram um movimento mundial nas ruas de diversas cidades de todos os continentes. O clipe que mostra Pharrell, amigos e pessoas comuns dançando e felizes nas ruas de L.A., inspirou diversas versões de diferentes cidades. No Brasil não foi diferente, e algumas prefeituras aproveitaram para criar suas próprias versões, como aconteceu em Porto Alegre e Curitiba. Leia mais.

    Pharrell William’s song “Happy” and its 24 hours videoclip with him, his friends and ordinary people dancing in L.A. streets, provoked an worldwide movement of people celebrating and dancing over streets of all continents. Many cities made their own version of the video, including some in Brazil, where even City Halls created their versions – as it happened in Porto Alegre and Curitiba. Read more.

    Submitted by Carla Link — Wed, 04/16/2014 – 12:49

    O Brasil está vivendo um delicado momento com o aumento da violência e com uma sensação generalizada de falta de segurança. Manchetes se repetem em todo o país – roubos, assassinatos, violência no trânsito. Se por um lado, temos um Governo ineficiente sem a força necessária para combater essa insegurança; por outro, vemos uma sociedade impaciente e começando a fazer “justiça com as próprias mãos”. Leia mais.

    Brazil is living a difficult moment, with the increase of violence and lack of security. The main headlines in different parts of Brazil are the same – robberies attacks, murders, traffic disasters. On one hand, we have an inefficient government with no power to solve problems and reduce insecurity; and on the other, a impatient society that starts feeling the need to take justice into their own hands. Read more.

    Submitted by Carla Link — Mon, 03/17/2014 – 17:18 Submitted by Editor — Thu, 03/13/2014 – 10:38

    Ano passado, o mundo viu uma transformação no Brasil com os jovens indo às ruas pedindo por novas medidas para as questões de mobilidade no país. Após uma violenta resposta policial nos primeiros dias de manifestações, a causa ganhou mais força em todo o país. A frase “Não é pelos 20 centavos” ficou famosa e foi usada para representar angústia e desejo dos jovens por novas soluções — mais sustentáveis e sociais (em mobilidade, na política, na econômica, etc). As reivindicações eram muito mais profundas do que o aumento de 20 centavos da passagem. As manifestações, porém, aconteceram há mais de 6 meses e o que mudou no Brasil — principalmente no que se refere a mobilidade? Leia mais.

    Last year, the world saw a transformation in Brazil: young Brazilians went to the streets asking for better mobility solutions. After a strong and violent response from the police in the first days of protests, the cause gained more and more depth all over the country. The phrase “It’s not about the 20 cents” became famous and it was used to represent their anguish and plea for a more sustainable and practical mobility solution. It wasn’t about the 20 cent rise in fares, it was about so much more! In some cities, the protests were successful in preventing the fares from rising. It has now been more than six months since the protests: what has changed in the Brazilian transportation scenario? Read more.

    Submitted by Carla Link — Tue, 02/25/2014 – 10:55

    Na competição por água no Rio de Janeiro as zonas Norte e Oeste — mais carentes que a famosa Zona Sul — estão claramente perdendo. A cidade enfrenta um dos verões mais quentes dos últimos tempos e alguns bairros tiveram seu fornecimento de água intermitente por semanas nesse Janeiro, devido em parte à falta de reservatórios em larga escala e à manutenção incipiente na rede de fornecimento. Leia mais o discutir.

    In the competition for water, Rio’s North and West zones — poorer than the fancy Southern zone of the city — are clearly losing. The city is facing one of the hottest summer seasons in recent years, and some neighborhoods’ water supply has been intermittent for weeks in the past month, due to the lack of large-scale reservoirs and maintenance of the water supply system. Read more or join the discussion.

    Submitted by Eliana Barbosa — Mon, 02/10/2014 – 00:00

    Os “Nem-Nem” são jovens entre 15 e 24 anos que nem estudam, nem trabalham, nem procuram emprego. Segundo dados do último censo, Brasil tem mais de 5 milhões de “Nem- Nem” no seu território, com grande concentração nas áreas urbanas. Rio atualmente tem mais de 150 mil “Nem-Nem”; preocupa que aquela população cresceu em 30 mil entre 2000 e 2010. Quais são as causas deste fenômeno? E quais são as respostas da cidade para enfrentar aquela situação? Leia mais o discutir.

    A “NEET” is a youth between ages 15 to 24 who does not study and does not work. According to the latest Brazilian census, there are more than 5 million “NEETs” throughout the country, mainly concentrated in urban areas. In Rio alone, there are more than 150,000, and the number is rising: between 2000 and 2010, there were more than 30,000 new “NEETs.” What are the causes of this phenomenon and what is the city doing to respond to this situation? Read more or join the discussion.

    Submitted by Catalina Gomez — Mon, 11/11/2013 – 00:00

    Rio de Janeiro está avançando na expansão efetiva da titulação de terras e beneficiando a sua população mais vulnerável. Esta direção positiva é o resultado da implementação do programa habitacional Minha Casa Minha Vida e do programa de melhoramento de bairros Morar Carioca Leia mais o discutir.

    Rio de Janeiro is actively moving forward with the expansion of effective land titling for its most vulnerable citizens. This positive trend is the result of the implementation of programs such as Minha Casa Minha Vida, the national housing program, and Morar Carioca, the city’s urban upgrading program. Read more or join the discussion.

    Submitted by Catalina Gomez — Mon, 10/21/2013 – 00:00

    É assim que Luiz Henrique do Nascimento define as favelas. Ele é o coordenador do Observatório de Favelas e da Escola Popular de Comunicação Crítica, iniciativas cariocas que querem mudar o paradigma dos jovens das favelas brasileiras: de pobres e violentos para potentes e criativos. Leia mais.

    Powerful, creative and supportive – that’s how Luis Henrique Nascimento defines the slum environment. He is the coordinator of Observatório de Favelas (“Slums Observatory”) and the Escola Popular de Comunicação Crítica (“Popular School of Critical Communication”) in Rio de Janeiro. These initiatives aim to change the slums’ youth paradigm: from poor and violent to powerful and creative. Read more.

    Submitted by Editor — Tue, 10/08/2013 – 11:36

    Segundo Rio Como Vamos, a insatisfação dos cariocas com a mobilidade e o transporte público da cidade vem crescendo nos últimos anos. A mais recente pesquisa da Rio Como Vamos foi feita em 2013 previamente aos protestos de Junho. Para compreender aquela insatisfação coletiva é importante conhecer melhor as condições do sistema de transporte público da cidade para identificar suas fraquezas e potenciais soluções. Leia mais o discutir.

    According to Rio Como Vamos, the unhappiness of residents towards mobility and transportation infrastructure in Rio is on the rise. The most recent research was carried out in 2013, before the June protests started. To explain this collective disapproval, it is worth taking a closer look into the city’s public transportation system to better understand its failures and some of its potential solutions. Read more or join the discussion.

    Submitted by Catalina Gomez — Mon, 09/30/2013 – 00:00

    Last week, the New Cities Foundation’s Executive Director, Mathieu Lefevre, wrote an article for Ashoka’s Next Billion on the results of the Foundation’s E-health project in Rio de Janeiro. The project was the first major study looking at the impact of integrating e-health technology in low-resource, densely populated, urban settings. The New Cities Foundation is currently looking to dramatically extend the project with the city of Rio to cover most of the city’s favelas. Read more.

    Submitted by Editor — Thu, 09/26/2013 – 10:17

  • URBim | for just and inclusive cities

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    Wura replied on Wed, 07/17/2013 – 14:04 Permalink

    I completely agree with you Feyi, unions are important and provide an outlet grievances and fighting for better working conditions. More importantly is the regulation of said unions otherwise they would be pointless and this is where more attention needs to be placed. In the situations spoken about in the various cities some employees are not even allowed the unions as in the Lagos’s case subject if that is not allowed what can the workers do? They need the job for survival and its a battle between need to afford basic needs and enduring a hostile work environment with unfair conditions. unions need to be mandated especially in the blue collar world and informal sectors where contracts often do not exist to protect employees.

  • URBim | for just and inclusive cities

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    Wura replied on Wed, 07/17/2013 – 12:49 Permalink

    The experiences of workers in factories of all sort, foreign production plants and factories or at least does that carter to foreign companies is appalling! the stories here have really struck a nerve with me. Imagine working in an unsafe environment that could collapse at any minute, while in some cities lives are not lost yet, it really does not have to get to that extent for intervention. Unions are one thing but really overworked employee do not have the time, underpaid employees may not be able to afford union fees at the end of the day though it is a step in the right direction. What is imperative is for governments to try to monitor these so called foreign investments in their countries. A company restricting union formation or membership of its employees is likely violating Labour laws. The citizens are supposed to benefit from foreign investments in the countries, not just the economy and said firms. Its time to review investments policies and monitoring and evaluation, at least from time to time to see who is abiding the law, might sound like a long stretch but slow and steady wins the race. Workers have died in Lagos and Bangladeshi from unsafe working environments, that at least has to take priority for intervention and investigation of such firms where this occurs. FDI is great! it just needs to be better sanctioned, fines for companies without union member work force, periodic check of safety violations etc.

  • URBim | for just and inclusive cities

    Migration has often been identified as a central component of urbanisation, and with the rise of a ‘mobility’ paradigm, whereby movement is recognised as a rising necessity, the focus is on why people move and the nature of such movement. Novel innovations now enable our speed of movement, while services and infrastructure continues to build networks between spaces, people, and opportunities. However, in the case of Sub-Saharan Africa the question has been raised on what happens when urban agglomerations hosting migrants fail to secure livelihoods (see Bryceson, 2011)? Research in migration showcases the articulation of circular patterns of movement, rising rates of return, and greater insecurities in whether goals are achieved. Such raises an additional question – to what extent are those using, adopting, and experiencing, migration becoming stuck within such a mobility paradigm? Further, what do migrants do to get them out of this trap and achieve aspirations? Read more.

    Submitted by Gemma Todd — Fri, 03/28/2014 – 11:18

    Data has emerged showcasing the latest trends of our demographic shift – the global population now articulates a ‘youth bulge’. The UN-Population Demographic Profile (2010) show children, and ‘youths’, comprise 1.6bn, and 1.0bn, of the population in less-developed regions. The population is younger; and Sub-Saharan Africa is no exception. Attention is now turning to youths: what young people do, what opportunities they initiate for their families and nations, and what it means to be ‘young’ in the developing world. However, an important caveat requires recognition: the focus has been particularly male-focused. Our understanding of girls, within both public and private spaces, remains limited. Such is the debate in this blog post – if we are now looking at ‘kids’ in the city and development, what are the experiences of girls? What can we learn about the city through an engendered perspective? Fundamentally, who is responsible to grant equal rights? Two models of intervention are discussed be, each using alternative methods to provide rights for girls. However, each acts to reinforce the need to improve our understandings on ‘being’ a girl. Read more.

    Submitted by Gemma Todd — Mon, 01/20/2014 – 10:08

    On the 12th of December, Kenya celebrated Jamhuri (Independence) Day. The event came at the end of a year that played host to a roller coaster of emotions for all those who have a part of themselves invested in this country. Nairobi’s 2013 was a year that witnessed impressive progress in terms of infrastructure development, but in which the government made no significant progress on providing services to the city’s numerous slum dwellers. It was a year in which Nairobians came together in great shows of unity, but also saw neighborhoods turn against each other; a year of victories and pride, but also one of great loss and shame. 2013 was the year in which it became clear to what extent corruption puts everyone’s security at risk and the year that the term “Silicon savannah” began to gain serious traction in the business world. Read more or join the discussion.

    Submitted by Katy Fentress — Mon, 12/23/2013 – 00:00

    Within development studies a shift has been identified. An increasing sense of consciousness has emerged on whose ideas are being used to theorise development practice, whether they are applicable, and offer effective solutions. The post-development school of thought is centred on deconstructing ‘universal’ ideas of development. Novel viewpoints have emerged which are transforming how the ‘developing’ world is understood and what role citizens of the Global South can play. With post-development thought, urban researchers, and planners, are advancing new thinking to plan inclusive cities in the Global South. In a succeeding event on urbanisation at the African Research Institute, the subject matter was how urban planning in Africa is adapting for the future. Read more.

    Submitted by Editor — Thu, 12/19/2013 – 15:32

    The September 2013 Westgate crisis was the most recent in a slew of attacks that have rocked Kenya since it began military operations in Somalia two years ago. The blame for this and previous attacks has generally been pinned on the Islamist group Al Shabaab, who claim to be retaliating against what for them is an unjust invasion and occupation of their country. While Eastleigh, a neighborhood in the east of Nairobi that houses most of the city’s Somali immigrants, has borne the brunt of most of these attacks, residents have also experienced a rise in hostility from local Kenyans and harassment at the hands of the police. Read more or join the discussion.

    Submitted by Katy Fentress — Mon, 12/09/2013 – 00:00

    The internet has quickened the pace of globalization by speeding the flow of information, creating access to new markets and enabling cross-border collaboration. The African continent is witnessing this as fast-growth economies emerge. The McKinsey Global Institute, the think tank of the global business consultancy, has released a series of insightful analyses on Africa’s growing economies and the role of technology. Read more.

    Submitted by Tracey Grose — Tue, 11/26/2013 – 11:02

    With urbanisation becoming a rising topic on the research agenda it is interesting to see how new models for urban planning, and laws, are being constructed. Recently, an event by the African Research Institute raised such ideas. The speakers introduced how the contextual diversity across Africa required exploration, and consultants need to focus on adapting a checklist of rule making, rather than make the rules, in planning Africa’s emerging cities. Current African cities were presented as ‘un-planned’, or in need of a re-visioned approach to become inclusive and equitable. Urban planning was the solution — a means of enabling tax reform, effective management, and equal rights to the city. However, urban planning law needed to be re-written to work for ‘African cities’. Read more.

    Submitted by Editor — Thu, 11/21/2013 – 11:58

    In September this year the Kenyan government launched the Uwezo Fund, a 6 billion Ksh. cash reserve (approximately $70 million) aimed at channeling financial resources into the hands of youth and women. Money for the fund was obtained from capital set aside by the Jubilee Coalition during this year’s election campaign, for use in the case of a run-off. The Jubilee Coalition, led by Uhuru Kenyatta and his deputy Samuel Ruto, pledged that any money that was not spent on the campaign would be channeled into a fund of this sort. Six months after winning the election, they stood by their commitment and announced that the application process for accessing interest-free loans was now open to registered youth and women’s groups. Read more or join the discussion.

    Submitted by Katy Fentress — Mon, 11/11/2013 – 00:00

    In Kenyan communities that have little of the collateral needed to access credit, a common approach is to set up savings and investment associations known as “Chamas.” A Chama is an informal group, often composed of women, that follows a system by which everyone contributes money on a regular basis and in turn gets disbursed a fixed amount. The method evolved from the tradition of rural women grouping together and pooling their labor to work on each other’s farms. Read more or join the discussion.

    Submitted by Katy Fentress — Mon, 10/28/2013 – 00:00

    It is widely believed that urbanisation is occurring faster in sub-Saharan Africa than anywhere else in the world, as migrants move from rural to urban settlements. This is a fallacy. While the populations of numerous urban areas are growing rapidly, the urbanisation levels of many countries are increasing slowly – if at all. Natural increase, rather than net in-migration, is the predominant growth factor in most urban populations. African governments, policymakers and international donors need to acknowledge fundamental changes in urbanisation trends, and respond to the irrefutable messages these impart about urban employment, incomes and economic development. Read more.

    Submitted by Editor — Mon, 10/21/2013 – 13:16

  • URBim | for just and inclusive cities

    Perhaps the most shocking inequalities in growth and development between the elite and the marginalized play out in India’s biggest metropolis — Mumbai, the country’s economic and financial capital, where 36 percent of slum children are malnourished. Dasra, a Mumbai-based strategic philanthropic foundation, spent four months researching malnutrition amongst children aged 0-3 years in Mumbai’s worst slums, such as Govandi and Dharavi. Almost counterintuitively, we found that malnutrition rates in urban India are often higher than in rural India and are, in fact, intricately linked with rapid urbanization, poverty, and illiteracy, requiring the urgent attention of policy makers, development practitioners, and philanthropists. Learn more.

    Submitted by Dasra — Mon, 03/19/2012 – 01:00

    After four months researching malnutrition among young children in the slums of Mumbai, Dasra, a leading strategic philanthropic organization in India, concluded that child malnutrition in Mumbai’s informal settlements is, at its core, a political and behavioral issue among key stakeholders — specifically, caregivers and public health care providers. The resulting research report focused on children from birth to age three and surveyed 50 organizations working with marginalized communities in Mumbai, including SNEHA (Society for Nutrition, Education and Health Action), Mumbai Mobile Creches, and Apnalaya. In part two of a series on child malnutrition in Mumbai, Dasra offers insights into how caregivers’ practices can be changed. Learn more.

    Submitted by Dasra — Mon, 04/23/2012 – 01:00

    After four months researching malnutrition among young children in the slums of Mumbai, Dasra concluded that child malnutrition in Mumbai’s informal settlements is, at its core, a political and behavioral issue among key stakeholders — specifically, caregivers and public health care providers. The resulting research report focused on children from birth to age three and surveyed 50 organizations working with marginalized communities in Mumbai, including SNEHA (Society for Nutrition, Education and Health Action), Mumbai Mobile Creches, and Apnalaya. In part three of a series on child malnutrition in Mumbai, Dasra offers insights into how the public healthcare system can be improved. Learn more.

    Submitted by Dasra — Wed, 05/23/2012 – 01:00