Urban Housing Mobilising Private Sector

By Shanker KC

URBAN housing has never been the priority of His Majesty's Government of Nepal, in the sense that there has never been any comprehensive and concrete programmes to address the existing housing problems in the urban areas. A decade has passed since the establishment of Ministry of Housing and Physical Planning. Department of Housing and Urban Development has been in existence for more than three decades. For the Kathmandu Valley there are other institutions like Kathmandu Valley Town Development Committee and its implementing committees, metropolitan and sub-metropolitan authorities. Their functions are directly or indirectly related to solving the housing problems in the Valley.

Policy
A project was launched in 1988 by the Ministry of Housing and Physical Planning and United Nations Centre for Human Settlement to prepare the shelter sector background report. Out of that study came a very rudimentary housing policy which was adopted by the HMG in 2053 B.S. in a haste preparation for HABITAT conference held in Istanbul, Turkey in 1966. However, no comprehensive follow-up actions have been taken by the Ministry of Housing and Physical Planning towards the implementation of these policies.

Often it is urged that housing problem in urban areas in Nepal is not very severe as in many Third World cities. It is true to certain extent that we do not have problems like Calcutta or Mubai in India or Sao Paulo in Brazil. But that is because historically our urbanisation rate has remained low. However, this situation is gradually changing as urban population is growing very rapidly in recent years. Growing squatter settlements, overcrowded housing condition and ever growing homeless population indicate the severity of problems in urban Nepal. Especially in the Kathmandu valley, not only for the poor, but also for many middle class households, housing has become unaffordable. This situation will further worsen as urban population will grow in the future.

The time has passed for the government to remain complacent about the growing problems of urban housing. However government involvement does not mean that it becomes directly involved in providing housing stocks or engage in land development activities. Experiences from many developing countries in producing low cost housing for the low income people by government have proved disastrous from the viewpoint of replication, cost recovery as well as affordably, which are very important for success of any housing programmes. In Nepalese context too, involvement of the Kathmandu Valley Town Development Committee in few sites and services projects and other land development activities has proved very inadequate as well as unsuccessful. Housing policy of the HMG must thus move from its previously narrow scope, which focused on engagement of government in the direct production of residential land development and low cost housing to provide efficient environment for private sector involvement in housing sector.

Traditionally housing has been regarded as unproductive sector for investment, so involvement of private sector was discouraged. However this thinking has gradually changed over the time. Mobilisation of private sector resources in the housing is no longer regarded as unproductive. Housing construction provide employment opportunities for large number of unskilled as well as skilled labour force and it also gives boost to construction sector industries like bricks, cement concrete etc.

The basic question is how government can mobilise private sector investment in housing sector in Nepal a number of land development companies already exist whose resources, creativeness and enthusiasms can be mobilised for the residential land and housing development. However, their activities have mainly remained informal because there is not regulatory and planning framework to guide their activities, which have contributed to haphazard growth in suburban regions. Bringing them under basic regulatory and planning framework will contribute to more rational and planned urban development and increase the supply of residential land plots which will eventually contribute to lowering the price of land thus increasing the affordability. However, many responsible private sector investors are hesitating to come into this sector due to various constraints such as, restrictive land ceiling, problems in land assembling, conflicting property rights because of dual ownership of land, archaic and antiquated land records etc. These problems should be addressed and appropriate amendments should be made in related rules and regulations to increase the efficiency and effectiveness of private sectors in housing and land development.

Involvement of formal private sector in housing and land development should be complemented by developing well functioning housing finance mechanism. In Nepal, at present housing finance is very much undeveloped. Private finance companies should come with creative and innovative mechanism for providing greater access to housing finance for all the income groups.

Environment
Time has come for the government to realise that its limited intervention in land makret is not going to address the growing housing problem in urban areas, so it should work towards creating better environment for functioning of private sector.

An Irreparable Loss

By Guna Dev Bhattarai

KING Tribhuvan was shocked to find uncertainties in Nepalese politics even after the revolution of 1951. His earnest efforts to establish a smooth functioning democracy had failed. This made him frustrated and hampered his health.

All the ugly political disruptions came to an end after the exit of K.I. Singh from the political platform, far some years. King Tribhuvan who had thought to create a congenial atmosphere to let democracy flourish was highly upset. Still he did not deviate from his democratic principles and norms. He then undertook another step and reconstituted the old Advisory Assembly. The above said circumstances compelled the King to enhance his power and the general public opinion was also in favour of a powerful King.

B.P. Koirala and the leading members of the Nepali Congress Party charged Matrika Prasad Koirala that he was running his government contrary to the ideals of the party. The Congress Working Committee sent the Prime Minister a list of members to be included in his cabinet but Matrika was adamant to comply with the demand of C.W.C. The Congress Party was on the verge of splitting. Matrika found himself like a ship without a rudder to the effect and he tendered his resignation to the King. Having accepted the resignation King Tribhuvan proclaimed, on August 1952, the formation of an Advisory Committee better known as Paramarshadatri Mandal to help him in administering the state affairs. Meanwhile many parties came into existence. Matrika founded a new party-Rastriya Praja Party in 1953.

The split in different parties encouraged the King to apply his good services in tackling the situations. Nevertheless the inefficiency of the then government and the presence of the Indian Military Mission fosterd one agitation after another throughout the country, but to no effect.

King Tribhuvan who had firm faith in Matrika announced on July 15, 1953 that the Rastriya Praja Party headed by Matrika, could not run the government in an effective way. No member of the other parties joined his government. To make the matter still worse Bhim Dutta Pant revolted at Nepal's border against the government. Once again the Indian forces quelled the revot of Bhim Dutta who was killed in an encounter. The Interm constitution was so much changed that it lost its former vision. In short the Interm Government Act of 1954 AD made the King more powerful due to the lack of the farsightedness of then political parties' leaders.

On February 18, the King formed a national cabinet comprised of Rastriya Praja Party, the Rastriya Congress, the Praja Parishad and the Jana Cngress of Bhadrakali Mishra. The national government was vehemently criticised by the Nepali Congress and the Communist parties.

King Tribhuvan came in contact with the various forces prevalent then in the country. Though earlier he was not familiar with democratic practices, at the critical moment he acquired a rich glimpse of democratic freedom. Before 1951, though the commoners revered, respected and even worshipped King Tribhuvan, he was powerless before the autocratic Ranas. Within a decade he laid the foundation of democracy by ousting the Ranas from the power. In one way he was not against the Ranas whom he had courted matrimonial alliances but was against their ways of ruling.

King Tribhuvan, Father of the Nation, the Sovereign of Nepal was, because of the prevailing circumstances in and outside the country, encouranged to revive the power, dignity and the prestige of Kingship which had been snatched away by the Ranas for more than a century. Yet he was committed for the stability of democracy in the country.

King Tribhuvan's policy was to look after the interests of the country and its people. When he had been in Switzerland for medical treatment, he said, "Though I am far from the country for some days the country and the people linger in the core of my heart. I always wish the country and the people to flourish."

King Tribhuvan having no lust for power could leave behind him an indelible impression in the mind of the people because of his sacrifice and love for the country. Different political parties of the country wanted to take undue advantage of the liberal attitude of the King. But, as he had experienced a lot of things in the courses of time, he did not let them exploit him. His demise on March 13, 1955 was a irreparable loss for the aspirants of democracy.