Mauritius, Social Housing: Social Movement and Low Income Housing in Mauritius Essay

overtureible lodgement Social Movement and lowly Income trapping in Mauritius Abstract The Re habitual of Mauritius has been a copy success story in both sparing and loving progress among both the African republics and the whole world. Despite many odds, the expanse has make tremendous economic progress and has succeeded at the resembling epoch to uplift significantly the living standards of the population in general. This paper gives an overview of the result of the depressive disorder-income trapping in Mauritius. The first part of the paper gives the economical understate and the evolution of the brotherly hunting expedition in Mauritius.The second part introduces the contemporary house conditions and the situation of impoverishment and low-income crowds in Mauritius. Fin onlyy the dodge of complaisant trapping is discussed. The Mauritius tender lodging st regulategy is discussed in term of the changes in the psychiatric hospitalal social structure, a nd policies. Then the types of social lodgment and their financing are introduced. Keywords Mauritius benefit State Social admit Low Income theatres AUTAR Bhotish Awtar Matric No 2011280122 master Candidate Tsinghua University School of Architecture Department of Urban Planning enrapture submit any feedback to bhotishhotmail. om Submitted to dengweizyhmail. tsinghua. edu. cn Submission date 17th June 2012 Introduction At independence, Mauritius did non appear predestined for the progress that followed. Challenges included ingrained cultural sort as well as racial inequality force play concent roved in a small elite (of French & British colonial descendants) high unemployment and high population appendage. The country suffered from an economic crisis through forth the 1970s, was remote from world markets and was commodity dependent. It also exhibited low initial aims of mankind development.Nobel Laureate for Economics, James Meade even said in 1961, as quoted d receive the stairs It is going to be a great achievement if Mauritius can detect productive employment for its population with divulge a serious reduction in the existing standard of living The tabulook for peaceful development is brusk Despite multiple factors stacked against it, Mauritius has achieved stellar progress in economic conditions, and has been unique in its ability to take advant fester of privileged access to international markets to develop in a sustained and equitable manner.This has been enabled and complemented by effective distress reduction and equitable improvements in human development. These achievements break been made by means of a concerted strategy of nation manakining strong and inclusive institutions high levels of equitable public investment in human development and a pragmatic development strategy (Vandemoortele, 2010). This success against all odds was coined as the Mauritian Miracle. In independence year of 1968, the countrys gross domestic product per capita was US$ 2601, and in 2010, the forecast rose to roughly US$ 14,0002 in 2010.Comparatively, in 2010 the total GNI per capita (PPP) for sub-Saharan Africa stood at 2,1083. During the same time menstruation of 1968 to 2010, population rose from 787,000 to 1,281,0004. In 2011, an antepast of life of 73 long time5 at birth and the country had a human Development Index (HDI) s consequence of 7. 26, compared with an average of 4. 6 in the sub-Saharan African piece. The country was also ranked highest on the Earth forms World Happiness Index among the Sub-Saharan African countries7, leave behind Botswana and South Africa, other regional economic champions. Socialist battlefront in Mauritius Mauritius is a wel colde state.It has a comprehensive social certificate system for the whole population and various other social shield schemes. Education is free from primary to university level, with 1 2 Source IFAD, 2005 For 2010, GDP per capita (PPP) of US$ 14,194, ch eck to IMF, 2011 World Economic Outlook, and GNI per capital (PPP) of 13,960 (units International Dollar) correspond to World till, 2011 3 (units International Dollar) according to World Bank, 2011 4 Figures for population for Republic of Mauritius is from various open source, much(prenominal)(prenominal) as Mauritius CSO, World Bank and other on railroad open data sources. Source UN Statistics, from WorldBank. org 6 Source http//hdr. undp. org 7 Mauritius Ranking 64th out of 156 countries with 5. 5 points, on a 0-10 scale, 0 beingness extremely unhappy and 10 being extremely happy autocratic command up to age of 16. Health care including tertiary care, standardised heart surgery) is also free. Basic foodstuffs (rice and flour) as well as lodging for lower middle-income group are heavily subsidized. Income support is provided to theater with low income. The governance provides nnual grants to a number of NGOs that cater for the specific needs of incapacitate persons and vu lnerable groups (Deerpalsingh, 2011). There are also price controls on several(prenominal) other commodities such as cement, pet consumptionum products, bread, onions and edible oils. The state plays a key role in social welfare and security. In fact, economic consumption on community and social services attracts the largest share of total organisation intake. The percentage out of total governance expenditure spent on health, education, social security and welfare, and housing, over the period 1980 to 1988 averaged 43% and by 1999 was as high as 52%.Preferential access to markets in the European Union and the USA has facilitated this strong welfare state (Bundoo, 2006) The construction of a comprehensive welfare state in Mauritius did non emerge out of a smooth and steady process. Each of the three episodes of welfare tame the formal introduction of noncontributory old-age pensions in 1950, family allowances in 1962 and social indemnity in 1976-1978, were borne out of lon g-periods of deliberation and procrastination from the colonial prescribeds (Phaahla, 2000).It took riots by unorganized excoriation estate workers in the late 1930s and strong trade unions today, to earn and maintain a particularly socialist environment in the country, despite, a very open and capitalist market economy in Mauritius, it has been succeeded to concern a considerable labor protection and benefit to the workers. In the to a greater extent modern times, the social movement is directly related to the antiauthoritarian politicsal system. Around every five years general elections are held, and the publics voting of a certain party is very tender to the economic and social conditions of the country.In many instances in the history, after independence, the government has been overthr suffer out of office, as sanction voting by the population, due to heavy(a) economic and social performances. The roughly popular example, would perhaps in the 1982, elections when the g overnment in office, with the father of the nation as the head of the country, faced the worse possible defeat. This was because the unemployment and other economic and social indicators were all in the red. In footing of social services, Mauritius has been practicing a s five pillar model as advocated by the World Bank in a calculate in 2005.But, it is worth noting that the five-pillar system in Mauritius was completed as far back as 1994. So, Mauritius had already been implementing the social model for 11 years (Deerpalsingh, 2011). Providing neat shelter for low-income groups has been another major social priority of the government. In the face of the rising price of rented accommodation, the government initiated projects for the construction of working-class flats in different move of the country. The bailiwick trappingDevelopment Corporation (NHDC) was embed up in order to expedite large-scale construction of inexpensive housing. House proprietorship grew from 66 per c ent in 1983 to almost 93 per cent in 20018. Current Housing Conditions To understand the access to housing to the low income abode, it is important to understand the general housing condition of the Mauritian. This garters in explaining the ownership policies and housing types that are provided to those who have financial difficulty in possessing a shelter comparable to his fellow countryman.With around $ 14,000 per capita GDP (PPP), Mauritius modernly has a relationly high housing quality. In the 2011 Housing survey, it was observe that around 89% of the building stock in the country were residential building (with 85% wholly residential). Of which, 77% were separate housing units, 12% were semi detached or apartment types and 5% are abstruse residential-commercial. In Mauritius, traditionally the houses are self-constructed by assigning small contractors to the job, who merely rely on their experience and owners design expectations.For medium and large projects, larger c ontractors and construction specialists similar architects and engineers are employed. The construction of houses were 92% of concrete walls and roof, 3% concrete walls and iron sheet roofs, and 5% were made out of woodwind instrument and iron sheets. Although the human settlement patterns in Mauritius is quite an dispersed, in terms of basic amenities, almost all ( much than 99%) of the houses were connected to nation electrical energy grid and water supply systems. 96% of all the housing units had running water in the bathrooms and had modern flush toilets facilities. 8% had their waste collected on a regular basis by municipality or other authorized companies. Almost all the housing units in Mauritius are privately owned, 99% in 2011, among which only 12% were reported to be mortgaged. An astonishing low percentage of 0. 3% of housing units was reported to be public housing in the same year. In terms of the tenure rate of the housing in 2011, 89% of the residents were owner of the house they were living in, compared to 8% who were lease or sub-renting. Another 3% were living for free in the housing provided by relatives or employers.It is elicit to note that the average monthly rent in 2000 was Rs 2,300 and change magnitude to Rs 4,400 in 2011, only after adjustment for inflation, the housing rent actually remained the same as 2000. Poverty in Mauritius In 2010, the National Empowerment shop that was created in 2005 to reduce poverty had enumerated around 70009 mobs in 225 regions of the country. These represented the families that were most in need of social help. But, the definition of poverty in Mauritius is quite versatile. 8Bundoo 2006, p175 Exactly 6983 families that lived under national poverty line fit to NEF, Poches de pauvrete, downloaded from http//nef. mu 9 Using the poverty line $1. 25 Purchasing military group Parity (PPP) per person per day, and data from the 2001/02 and 2006/07 phratry Bud dumbfound Surveys, the proportion of un worthy people in Mauritius is estimated by the Central Statistics component part to be on a lower floor 1% in both 2001/02 and 2006/07. For developing countries like Mauritius, the $2 a day poverty line is more relevant. Even, using this line, the proportion of pitiful people is estimated to be less(prenominal) than 1. % in 2001/02 and 2006/07 household income surveys. So, the concept of extreme poverty (as internationally defined) is not used in Mauritius. Instead, the concept of relative poverty is used. Relative poverty is assessed using data collected at Household Budget Survey (HBS) and a relative poverty line defined on the basis of median household incomes. Household income comp pilfers income from employment, property, transfer, income from own produced goods and services and imputed rent for non-renting households.Data published by the CSO in the 2001/02 and 2006/07 Household Budget Surveys indicate that the percentage of households having income downstairs the half medi an subjoind from 13. 1% in 2001/02 to 14. 3% in 2006/07. Average monthly household income for the wretched is estimated at Rs 7,055 against Rs 22,242 for all households. The poverty line was fixed at Rs 3,821, which is the half median monthly income per adult equivalent. So, the official figure for poverty in Mauritius in 2007/07 was 26,400 households, or 7. 9% of the total 335,000 households in Mauritius. This have-to doe with 8. 5% of the national population.From the 2007 Poverty accounting, it can be also seen that 55% of the total government expenditure went to Community and Social Services. periodical public transfers (social security benefits paid by government) derived by the measlyest decile group of households was estimated at Rs 1,367 per household in 2006/07. Public transfers for poorest decile represented 22% of their total household disposable income against 2. 4% for the richest decile. Public transfers were found to be significant on bringing down poverty it is estimated that if public transfers would have been discontinued, the overall household poverty rate would be 15. % instead of 7. 9%. Characteristics of Low Income Household Understanding the particularities of the poor or low-income households, are very important to sleep with their economic strength and lifestyle. This would help to understand the type and toll of social housing that is rendered to them. Again, in 2006/07, the average of low income households in Mauritius was calculated to be around Rs 7,000 (compared to Rs 22,200 for all household), with an average expenditure on Rs 6, euchre (compared to Rs 14,300 for all households). 1% of the income came from paid employment, 24% from government support, and the rest from self-employment and odd jobs. In terms of employment, where the national share of employment by celestial sphere in 2006/07 was as followed Primary sector- 9%, Secondary sector- 32% and Tertiary sector- 59% the structure was a little different for the poor families, as followed Primary sector- 21%, Secondary sector- 37% and Tertiary sector- 42%. So, it can also be noted that the poorer people were more dominant in agricultural and manufacturing industries, and less present in the service industry.This explains partly, their low income. This phenomenon is also related to their level of education. The study has shown a very clear correlation with the distribution of income and the education level of members aged 20 and above. The higher the incomes, the proportion of the members having passed the primary and unoriginal education are larger. The share of expenditure on basic items such as food, clothing and housing over total expenditure was 65% for poor households, against 48% for all households. Figure 1 shows the detail expenditure of the poor against all households.It is rice beering to note in the report that the average monthly add repayment10 was Rs 1400 for poor housing, against Rs 4,353 for all indebted households. The highe st loan repayment for poor households was on housing11. Figure 1 Expenditure habits of poor households, 2006/0712 As mentioned above, according to the 2010/11 Household survey, 8% who were renting or sub-renting. In 2006/07 the figure was 8. 4% for all households, but for the poor households, 16. 7% were renting their housing. The rest owned their houses or were provided free by relative or employer.The average poor household had a size of 4. 0 members, however the house had on average 3. 7 rooms, compared to average of 3. 7 members with 5. 2 rooms for all households. The amount poor households 10 11 Including, loans or purchase on faiths, for housing, furniture, electric appliances, personal loans and other loans. 26% of the poor households had housing loans, which on average was Rs 2,491 12 Source CSO 2007, Poverty Report 2006/07, p59 with two or less rooms accounted for 19%, against only 5% for all households13.There were more than one person per room in 63% of the households, a gainst only 29% in all households14. This gives an idea of how poor households lived in a denser indoor environment than their other country man. Low Income Housing in Mauritius Strategies & Institutions Since the 1980s Mauritius was still an economy based on mono crop agriculture. Sugar cane cultivation had been the economic vertebral column for centuries of colonization, and only in the 80s the diversification help Mauritius get out of the trap.Saying so, after independence in 1968, all straight governments regularly reiterate their will to gradually dismantle the scratch line estates camps, which were the housing provided by colonial estate owner to workers. It was important to do so, as they remain powerful physical and psychological symbols of the sugar plantations hierarchy of the nineteenth century. A study in 1990 revealed that in that respect were still 125 such estates in the country, and on the basis of finding long term alternatives for such residences, the governmen t put pressure on the sugar estates, to phase out these camps and develop housing programs for their workers.The options offered were either to resettle the workers on an alternative site, out of the masters property, or to sell the land and house to the current resident on the estate (UN, 2000). As seen above, the poor are unremarkably less educated and work in agriculture. And since the structuring of the sugar industry 15 in the last decade, more and more of these people are losing their job, and because of age and education level, they cannot find other jobs.So, an early retirement scheme, worked out by all concerned parties and government, and involves giving a lump sum and a plot of residential land to the worker. The land given to the worker, are normally sugar plantations16 that have been converted to residential with basic infrastructure of road, electrical energy and water supply. This helps in reusing the abandoned agricultural lands and reduced the pressure of coin rew ard to the estate companies. In 1983, the house ownership in Mauritius was 66%, and then it rose to 76% in 1990, rose again to 87% in 2000, to reach a high 89% in 201117.Although official figures indicate a very high rate of owner-occupiers compared with other countries, these figures report other quite serious problems of housing which may culminate into a crisis in years to come if some issues are not intercommunicate in time Social housing programs for low income groups which had begun in the 1960s, gave government agency to a refreshful housing strategy based on cost recovery through the setting up of a public company, The National Housing Development keep company Limited (NHDC) in 1991 (UN, 2000). 13 14 Author computer science from CSO 2007, Poverty report 07, table 4. Author calculation from CSO 2007, Poverty report 07, table 4. 7 15 which currently stick out less than 4% of the GDP and less than 8% of employment 16 Since restructuring, large areas of sugar plantation h ave been abandoned by the sugar estates 17 Various Source, Boodoo 2006 for 1983 & 1990 2011 Housing Survey for 2000 and 2011 Until 1991 the Central Housing centering (CHA) was responsible for the task of building and administering of the low income housings estates. Medium rise apartment type buildings were built and let to the low income groups.The system was not successful at different levels. Firstly, most of the units were rented to low income households, instead of been owned. So, rents were sometimes not been paid, and the residents paid little attention to the built environment. This lend to a rapid degradation of the buildings and amenities. Secondly, although targeted for low income earners, the middle income group could somehow subvert the apartment units. Thirdly, due to the deplorable design and soft policy, the CHA estates turned into undesirable living places where social problems grew.In 1991, the responsibility of providing low income housing has been passed the new established National Development Company (NHDC), and the CHA was renamed the Housing Management building block (MHU), which just left to administer these estates and collect rents. Another important institution was restructured shift to be noted during the same period. Since its creation in 1963, the Mauritius Housing Corporation, was governmental body was responsible to create housing for the middle income class, sequence the CHA was doing the same for low income class, financed by loans through the Mauritius Agricultural Bank18.In 1989, the Mauritius Housing Corporation (MHC) was incorporated and renamed the Mauritius Housing Company Limited, which then was more like a bank, to cater disclose to the need of the housing demands. Then the new MHC, no longer deals with the construction and policy of the social housing, it provides soft loans to those below a certain income level, and started the Plan Epargne Logement, PEL (in English, Housing Savings Scheme), that offer excep tional loan rates to anyone, who would deposit money in MHC bank.Nowdays, the MHC has developed into a one-stop shop for all need of housing services. In spare to loans, it deals with the providing of architectural, structural, legal, technical, insurances and project management services, at nominal or free of charges. antecedent to 2006, the social housing responsibility lied solely within the custody of the government. But, as the demand was growing and the government could only built around 900 units a years, with a waiting list of 25,000 housing units, the private sector was called to participate through various PPP (publicprivate partnership) projects.The aim was to raise the rate of construction to at least(prenominal) 1500 yearly19. Another interesting fact is that as from 2009, the government established a policy of Corporate Social certificate of indebtedness (CSR) that requires profitable private companies to invest at least 2%20 of their profit, into social help, li ke donation to NGO, or other social and environmental programs, including housing for the poor. The CSR is the concept whereby companies act to balance their own economic growth with the sustainable social and environmental development of their areas of operation.A company playing highly in CSR is one that goes beyond compliance with the legal theoretical account to actively pursue positive impacts on local communities and its environmental footprint. 18 19 Source Mauritius Housing Company Ltd, website http//www. mhc. mu/mhc/ retrieved June 2012 Speech of Minister of Lands and Housing, surround 2006 20 Source NEF, http//www. nef. mu/csr/, retrieved June 2012 Low Income Housing Types and Finance Up to date, thither are five main players in the housing sector.They are the commercial-grade Banks, the Insurance Companies, the Mauritius Housing Company Ltd (MHC), the National Housing Development Company LTD (NHDC) and the Housing Division of the Ministry of Land and Housing (Joseph, 2007). The role of the commercial and insurance companies is to offer housing finance facilities, in addition of their usual core activities. However, the other three players have a very important role in the provision of housing to the general public of Mauritius, but to curiously the low and lower middle income group.Even if the government continued to build some apartment types housing, single housing or duplex types were more and more practiced. These types of housing created a better environment for social diversity and were more inclusive in term of equality. It should be noted that in Mauritius, these units are not built in large numbers, but in small numbers between 50 to 100 units spread all over the island. This is due to the availability of land for development and the concentration of poverty in the region. The spread of the social housing and its small numbers help social integration and the balance of the local diversity.Currently, these locations are mostly laid in the rural area, as part of the National Plan to increase rural population and develop and reduce the consequence on the already dense urban regions. Figure 221 shows an example of a type of social housing units that NHDC are building with the help of the Export-Import Bank of China. Site Bois Mangue St capital of South Dakota (Circonstance) Dagotiere Highlands Bambous Montagne Blanche Mon Choisy Cottage La Cure Notre Dame Pointe aux Sables (A & B) Pointe aux Sables (C) Units 108 72 52 84 148 100 98 52 120 60 128 70 21Source Ministry of Lands and Housing, retrieved June 2012 Rose Belle Camp Levieux Trou aux Biches Mahebourg Total 76 152 76 78 1474 Figure 2 Example of 1474 housing units scattered into 18 sites around the island. The Firinga Type is the one most currently built for the lowest income groups. These are semi-detached units of 40m2 each. It provides for bathroom with toilet and a kitchen table with sink. There are better duplexes types that are constructed for lower middl e class. Some houses are spread on two stories and have 2-3 bedrooms with balconies.As the types of housing vary from one income group to another, the financing to these group are not the same. As for the Firinga units the interest rate is fixed at 6. 5% per annum, for other types, the finances vary according to the cost of the housing and household income (that is total income of husband and wife). The current loan scheme from the MHC is as below For household earning up to 7,500 per month ? ? ? retentive term credit repayment period up to 20 years, depending on the age of the applicants Subsidized rates of interest of 6. % during the first five years, 8. 0% during the next five years, and 10. 0 % during the remaining years of the repayment period and A non-refundable Government grant equivalent to 20 % of the gross credit amount subject to a maximum of Rs 30 000. For households earning more than Rs7 500 and up to Rs 10 000 ? ? foresighted term credit repayment period up to 20 ye ars, depending on the age of the of the applicants and Subsidized rates of interest of 10 % during the first five years, 12 % during the next five years, and 14 % during the remaining years of the repayment period.And finally for those earning more than Rs 10 000 ? ? Long term credit repayment period up to 25 years, depending on the age of the of the applicants and Rates of interest of 13 % during the first five years, and 14 % during the remaining years of the repayment period. To protect those in the most needs, there are strict eligibility criteria to obtain a NHDC unit like they should not be owner of a housing unit or of a plot of residential land, have made regular contributions o a PEL savings account for a period of at least six months and priority is given to applicant that reside in the region where the house has been constructed. It should be noted that, in order to relief the burden on the government to provide affordable housing, the MHC provide loans at brotherly rate s to low and lower middle income applicants who want to construct their own house or want to buy a plot of land. A subsidy for the concrete roof construction, which is considered one of the most expensive parts of the construction, and to prevent the houses have iron sheet roofing.Conclusion We have seen in this paper that the social movement has been present since before the independence and the movement was stronger after the independence, by the pressure of strong trade unions, and the strong democratic system, where the public opinions and demands could not be undermined. In the welfare state of Mauritius, the government has done greatly in terms of policies and investment to provide decent housing not only for the poor, but also for the less poor.In 2011, the housing ownership approached the 90% and the private sector was also made part into the responsibility to provide housing for all Mauritian, in the way the Mauritians like it. The institutional and financial structure in M auritius is quite fledged after evolving for around 50 years now. It is important to note that Mauritius has a large lower middle and middle class population and that housing benefit are also given to them, in terms of affectionate loans rates, and subsidies. References Websites Mauritius Housing Company Limited, MHC www. hc. mu Ministry of Lands and Housing, Housing Division www. gov. mu/portal/site/housing/ National Empowerment Fund, NEF www. nef. mu National Housing Development Company Limited, NHDC www. nhdc-online. com books Bundoo S. K. (2006) Financial and Trade Reforms and Impact on Poverty and Income Inequality The face of Mauritius from Pro-Poor Macroeconomics- Potentials and Limitations, Chapter 8 edited by Cornia G. A. CSO (2009) Poverty Report 2006/07 CSO (2011) 2011 Housing census Main Results Deerpalsingh N. 2011) Access to Social Services for Non-Citizen and the Portability of Social Benefits in Mauritius From valuate to the Social Services for Non-Citizen and t he Portability of Social Benefits within the SADC Chapter 3, edited by Mpedi L. G. & Smit N. Joseph Mathew (2007) Mauritius Housing Company Limited AUHF AGM Conference, 17th -2 first September 2007 in Ghana Ministry of Housing and Land (2006) Speech of Minister A. Dullul Government Social Housing Projects on a Private Public Partnership Basis on 1st March 2006 Phaahla L.E. (2000) Development with Social Justice- Social Democracy in Mauritius skippers Thesis presented at Stellenbosch University United Nations (2000) Common Country Assessment, Mauritius Office of the UN Resident Coordinator, Mauritius, May 2000 United Nations Habitat (2004) Human Settlements Country Profile, Mauritius Vandemoortele M. and skirt K. (2010) Progress in economic conditions Sustained success against the odds in Mauritius for Overseas Development Institute