Editorial
Stabroek News
August 9, 2001

In his important Sunday column which seeks to publicise and explain aspects of the National Development Strategy (NDS) Dr Kenneth King dealt last week with the question of housing the nation. He started by identifying some pre-conditions for dealing with the homelessness that now exists. These were: funding for housing development must be made available at acceptable rates of interest; there should be speedier and more widespread access to serviced lands; the delays in the process of land allocation and building approval must be eliminated; conditions which encourage the private sector to get involved in developing land for housing and in the construction of houses should be established; programmes of financial support for lower income families in making rental and mortgage payments should be devised; informal housing development (squatting areas) should be regularised; rental laws should be reformed to increase the availability of rental housing and mechanisms should be developed to ensure the greater involvement of NGOs in housing for the poor, such as the well respected Habitat for Humanity.

Dr King went on to say that with those pre-conditions in mind the authors of the NDS had formulated a strategy which they were convinced would result in ten years in the virtual removal of homelessness. The spin off effects on the rest of the economy would also be considerable.

The proposal involves the government setting up two funds, one to provide rental supplements for low income families who meet strict eligibility criteria and the other to supplement mortgage payments associated with house buying. A broad based Board would be set up to oversee the provision of those supplements. As well as helping the poor, these funds would stimulate private investment in housing. Such schemes are already working well in other developing countries. Banks should also be given a rediscount line in the Bank of Guyana to enable them to make `cheap' mortgage loans. This subsidy would be funded by the budget. Land for housing should be granted free to those below the poverty line. Government should make freehold land available to entrepreneurs by public auction for housing development. Unutilised sugar estate lands could be used. The private sector could also be given incentives to construct high-rise blocks of apartments for use by the middle class, or for offices, particularly in some of the areas to be cleared of slums.

The NDS proposed the establishment of townships to assist in the resettlement of youths, public servants, members of trades unions, and rural poor and other groups. They should be designed to emphasise the interdependence between urban and rural settlements and to take advantage of their synergies. The private sector should be involved through incentives. Finally, they authors stress the need for low cost housing (they consider two types) and for a reform and upgrading of the housing administration and new legislation.

This is innovative, constructive and exciting stuff. We urge Minister of Housing Shaik Baksh, who has shown himself to be one of the most capable and intelligent ministers, to take these ideas very seriously. As the NDS suggests it may well be possible to interest donors in a project like this, particularly in the supplement to low cost housing. Perhaps he can set up an advisory committee with persons like Dr King, Mr Stanley Ming and Mr Philip Allsopp, to consider the matter further.