City structure and social inclusion Har ris Sel od (The Wo rld B ank ) July 27, 2011 [email protected]
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 1/24
City structure and
social inclusion
Harris Selod (The World Bank)
July 27, 2011
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 2/24
Outline
1. Ideas and facts about spatial city structure
2. Discussion on the disconnection between jobsand residence (spatial mismatch)
2
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 3/24
Outline
1. Ideas and facts about spatial city structure
2. Discussion on the disconnection between jobsand residence (spatial mismatch)
Time permitting: broach issues related to housing and land tenure formalization
Other issues important for SA: the harmful effects of residential segregation (criminality,
schooling,)3
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 4/24
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 5/24
South African cities No contiguous built-up area (inherited from buffer zones planned under Apartheid)
No negatively sloped density
Sprawl and low average density (although highly variable within city) Cape Town: 39 persons per hectare
between 100 and 150 in shack areas
between 4 and 12 in former white suburbs
Severe disconnection between places of work and residence (problem)
Severe residential segregation (problem)
Residential informality (problem)5
Johannesburg (1990)
Positively sloped densitygradients due to historic
constraints on city development (source: Alain Bertaud)
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 6/24
What shapes cities? City structures are path dependant (i.e. history matters). In SA,
history means Policies of strict racial segregation (forced removals)
Separation of economic and residential zones (out of non-white areas)
Where land market exists, city structures are determined
primarily by market forces (location and transport choices towork, shop and play) in interaction with urban planning andurban regulations. Market forces will respond to constraints andincentives such as those created by urban planning
City structures are evolving US example: The suburbanization of the population was made possible by
decreasing transportation costs (emergence of tramways, trains, then cars).The decrease in transport costs enabled the population to consume morehousing in the suburbs while keeping their job in the center. Thesuburbanization of the labor force in turn attracted jobs to the suburbs (acumulative process)
6
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 7/24
Trends that are being observed Emergence of megacities (over ten million residents) although it was never
planned. Large cities tend to become less monocentric. The share of public transit is
eroding in most cities (in spite of heavy investments and subsidies).
In Europe and Asia, land prices in high density cores city centers tendto increase in relation with availability of services and amenities
Rapid urbanization in Asia (China) and Africa
What specific changes / trends in South Africancities?
SA cities remain segregated / reproduction of Apartheidstructure (led by market forces, according to income, which is
highly correlated with ethnicity). White flight from city center inJohannesburg (90s), not elsewhere.
More people living in denser informal settlements (rural-urban migration) in spite of formal housing policies
No densification as yet
Sprawl and long commutes 7
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 8/24
2. Spatial mismatch
8
Disconnection from jobs is about costs (time, monetary, informational)
matters for the poor
is about the disconnection from jobs (job vacancies) thepoor/the unskilled could occupy
Why are the poor physically disconnected from
the jobs they could occupy? Not the case everywhere depends in city structure (in Paris,
segregation is the problem, not spatial mismatch, due to a goodtransportation network). A big city issue.
In the US: both housing market discrimination and land markets
In SA: history, and reproduction of Apartheid city structure
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 9/24
Why is spatial mismatch bad? It is costly
Average travel-to-work time in Joburg: 80 mn (30 mn in the Paris region)
In SA, HH from lowest income bracket spend 35% of income on transport!
Environmental externalities
It can cause unemployment and low income
There are different mechanisms Offered wages net of commuting costs can be too low for
unemployed workers to accept a job
Job search is inefficient for distant unemployed workers whohave little information about job locations and job profiles
Because transport is costly, some unemployed workers can onlysearch occasionally or around a small perimeter
Firms may discriminate against long-distance commuters(who may arrive late or be tired)
9
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 10/24
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 11/24
Urban unemployment in South Africa 11
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 12/24
Urban unemployment in South Africa 12
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 13/24
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 14/24
Urban unemployment in South Africa 14
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 15/24
Urban unemployment in South Africa 15
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 16/24
Urban unemployment in South Africa 16
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 17/24
Urban unemployment in South Africa 17
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 18/24
Urban unemployment in South Africa 18
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 19/24
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 20/24
Moving people to jobs
In the US: addressing restrictions on residentialchoice
Enforcement of the law against housing-market discrimination Facilitation of residential racial integration
Voucher programs to facilitate residential mobilityexpecting a positive impact on wage and employment
More of an experiment. What would be the potential for scalingup?
What about those left behind?
20
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 21/24
Moving people to jobs
Has not been an outcome of housing policies in SA:
State-sponsored housing on the urban periphery (cheaperland) fixing people rather than improving access to jobs
Relatively low-density of RDP housing
No planned residential densification or infilldevelopment in more central suburbs (Lack of political will?Lack of coordination of local and central authorities? Financialcost of acquiring land? Lack of state-owned well-connectedland? Opposition of vested interest groups?)
New initiatives in the right directions (devolution of housing to municipalities, release of well-located publicland)
21
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 22/24
Moving jobs to people
Experience of Urban Enterprise Zones in the US, UK and France (subsidies to hires in the French case).Costly, with little effect on reducing unemployment
Relevance for SA?
Its about formal jobs
Challenges to overcome to attract jobs in and around townships(transport accessibility, security)
22
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 23/24
Improving the connections between peopleand jobs
Transport policies
Reduce commuting and search costs, increase theproductivity of commuters
Suggestions put forward for the US
Vouchers to buy cars
Public and private transport system improvement
Relevance for SA?
Historic under-investment in transport and over-centralized
system unresponsive to the needs of the poor? Challenge of an integrated public transport system for cities
(bus, rail and minibus operators)
Integration with housing interventions
23
8/6/2019 Session on Social Inclusion July 27 2011 - Harris SELOD v2
http://slidepdf.com/reader/full/session-on-social-inclusion-july-27-2011-harris-selod-v2 24/24
Information policies
Regarding job opportunities and their location
Relevance to SA? Job-search support (in conjunction with tenure security and basic services)
as a means to help informal settlers improve their labor-market position
24