UNPF & the International Institute for Environment Development Report

The United Nations Population Fund and the International Institute for Environment Development report published in August 2010, concludes that Brazil's urban policies over the last four decades failed because they were too slow to respond to changes and address inequalities. The growth of Brazilian cities coincided with a decline in agricultural production. There was an exodus from rural areas. Instead of paying attention to the housing needs of the migrants and other workers, policymakers left them at the mercy of market forces. Numerous underserviced and crime-ridden slums sprang up in the peripheries of the cities. In the absence of corrective measures cities now face severe inequalities, tensions, and ecological deterioration. Brazil since the 1970s relied on incentives to encourage growth in 130 small cities so as to relieve pressures on larger cities. The report highlighted the benefits of The City Statute enacted in Brazil in 2001. The statute is a unique legal instrument appreciated worldwide for its potential benefits. It helps municipalities democratise urban management through public hearings and participatory budgeting. The statute was meant to protect low-income areas from real estate speculation but in practice these powers have often been subverted by influential high-income groups. Brazil's experience proved that unless infrastructure is developed, growth is not possible in second- and third-tier cities.

The report served as a warning to Indian policy makers as well. The report underlines the immediate need to the urgent need is for a bold plan that reserves sufficient land and built units for those who cannot access formal housing markets. The report suggests Indian urban local bodies to adopt the City Statute but also take protection against their misuse, as was evident in Brazil.