UN-HABITAT’s Strategy for the Implementation of the MDG 7, Target 11
It was with these considerations in mind that the General Assembly in 2001 called upon UN-HABITAT to capitalise the United Nations Habitat and Human Settlements Foundation to enable member states mobilise international and domestic resources for the financing of shelter and related urban infrastructure. At its 20th Session in May 2003, the Governing Council of UN-HABITAT adopted resolution 19/11 entitled “Strengthening the Habitat and Human Settlements Foundation.” The resolution provides guidelines that UN-HABITAT has used subsequently to establish a strategy for mobilising finance for slum upgrading. The first element of the strategy is to promote greater donor coherence among multilateral development agencies and international financial institutions. Specifically, UN-HABITAT seeks to engage the World Bank Group and the regional development banks to link strategically the agencies’ advocacy, capacity building and project demonstration activities with the investment portfolio of the financial institutions. This will entail the establishment of framework agreements that advance such collaboration at country level. The co-operation agreement between UN-HABITAT and the Asian Development Bank (AsDB) demonstrates the synergies that can be achieved. In this agreement, AsDB has agreed to fast-track USD 500 million in loans to cities that participate successfully in the Water for Asian Cities Programme of UN-HABITAT. A second element of the strategy is to mobilise domestic capital for slum upgrading by field testing financial instruments that local authorities and community organisations can use to attract investment for slum upgrading initiatives. This involves working with local development partners and local banks and financial institutions to design and apply such instruments. And it also entails working with these local actors to package the financial, political and technical elements of slum upgrading projects such that these projects are more financially viable over time.
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