Livelihood Strategies of Urban Poor

in Kathmandu Metropolitan City: A

Case Study of Balaju Squatter
settlement

Chhabi Ram Baral

Patan Multiple campus
 Introduction
Urban poverty is a growing phenomenon in the world
Urban poverty is that poverty in which individuals are unable
to fulfill their basic requirements and not having the minimum
health care facilities and other basic services
Likewise Katmandu the capital city of Nepal has experienced a
number of changes during the last two decades. During the
period squatting has became one of the major issues in
capital city like other capital of the third world. This has result
mainly due to rapid population growth particularly migration
and uncontrolled urbanization (Subedi, 1998).
In Nepalese context, squatter settlements are locally known
as 'Sukhumbasi basti' and people who live in Sukhumbasi
Basti are called Sukhumbasi. The term Sukumbasi indicates
the person of household who lacks land, home, employment
and other reliable income generating resources
 Research questions

Who are the squatters?

Where are they from?
What sort of socio-economic background do they have?
Why did they leave their origin place?
What strategies have they adopted to earn livelihood?
What are their risks and how do they avoid them?
What are the main causes of people becoming squatters?
 Objectives of the study
to find out the socio-economic characteristics
of the squatters.
to assess the livelihood assets of the
squatters.
to analyze the vulnerability and coping
strategies of the squatters
to suggest appropriate urban poverty
reduction programs and policies.
 Significance of the study
it attempts to present the existing situation of
squatters of the study area
it depicts to present socio-economic status of the
squatter people, the causes of becoming
squatters, origin of squatters, health and
sanitation condition livelihood assets and
vulnerability
It will also help to the policy maker and planner
and also helpful for the development worker for
further study in this theme.
 Limitations of the study
this study does not cover all of the poor
people of KMC
this study do not give more priorities to the
rural poverty analysis
finding of this study may not be representing
other urban areas of the country
Limited Time and limited funding also
 Literature review
Theoretical review and empirical review
Theoretical review- sustainable livelihood approaches
Empirical review studies reviewed here deals with the
land, poverty, education, skill, migration, occupation
and so on in rural and urban areas. These are the
contributing factors for the diversification of
livelihoods
Through the review of books and articles related to the
objectives of this research, the itinerary during
research is properly guided and these studies were
received for betterment of the analytical capacity of
researcher. And livelihood approach provides angle of
view to understand peoples livelihood strategy and it
offers the framework for analysis.
 Research methodology
This study is mainly based on primary data. However, secondary data are also
utilized in this study. Primary data were collected from the field survey applying
various techniques which are described later. Secondary data were collected from
various published and unpublished documents. Basically, qualitative information
collected from various sources. Various tools such as key informant interview,
observation, household survey, and focus group discussion were also conducted in
the study area. Primarily both qualitative and quantitative information were
collected through interview and discussion with squatters.
Structured questionnaire were used for the household survey. The main purpose
of the household survey was to obtain information about socio-economic status
and demographic characteristics of the squatters. Among 118 household of the
squatter settlement 52 household were taken for the survey. Households have
been selected as a stratified method to represent the entire households of
different caste/ethnic groups. Then purposive method was used considering the
heterogeneous character. Mostly household heads were selected as respondent
when the household head was absent; the senior member of household was
selected as a respondent. (305 males and 286 females=591)
The information gathered from diverse sources and methods were subsequently
edited, processed and analyzed. As data are both qualitative and quantitative in
nature, separate methods and techniques were applied to analyze data so those
meaningful conclusions are reached.
 Rationale of the selection of study area
*It is impossible to select a large area for primary
data collection as it needs much time and money.
*This settlement is in proximity to city centre.
*This settlement is more vulnerable than other
settlements because there is no land for further
expansion. It lies quite near the bank of
Vishnumati River.
*The people and their habitation have been
affected to the socio-economic, environmental
and political sector.
 Push factors
Causes of becoming Affected Household Percent
squater

Famine
Loss of Property
Lack of Physical Facilities
Unemployment
Family Conflict
Natural Calimaties
Lack of Relative
Others: (political conflict, 2
difficult to work)
Total
24 46.2
6 11.5
6 11.5
5 9.6
5 9.6
2 3.9
2 3.9
3.9
52 100.0
 Pull factor
Main Reason for Coming No. of Household Percent
to Balaju
Availability of work 23 44.2

Nearness to the market 12 23.1

Availability of public land 7 13.5

Familiar with the settlement 4 7.7

Difficult to pay room rent 3 5.8

For physical facility 2 3.8

Not response 1 1.9

Total 52 100.0
Livelihood assets human capital-skill, education ,health
Main Male Female Total
occupation
No. % No. % No. %
Unskilled 17 11.6 14 9.5 31 21.1
labour
Service 13 8.8 7 4.8 20 13.6
Wool spinning - - 8 5.4 8 5.4
Livestock 12 8.2 7 4.8 19 12.9
Farming
Driving 13 8.8 - - 13 8.8
Tailoring 1 0.7 7 4.8 8 5.4
Mason 6 4.1 - - 6 4.1
Small Business 9 6.1 11 7.5 20 13.6
(Grocery Shop)
Foreign Labour 11 7.5 1 0.7 12 8.2
Black smith 3 2.0 - - 3 2.0
Butcher 2 1.4 1 0.7 3 2.0
Painting 2 1.4 - - 2 1.4
Contracter 2 1.4 - - 2 1.4
Total 91 62 56 38 147 100
Natural capital land and common property, access
to natural resources(water forest grazing)

Landholding Size No. of Households Percentage

1-2 (Anna) 24 46.2
3-4 (Anna) 25 48.1
5 and above 3 5.8
Total 52 100
 Financial capital-
Income (NRs.)monthly No. of H.H. Percent
4000 or less 7 13.5
4001-8000 23 44.2
8001-12000 16 30.8
12001-16000 3 5.8
16001-20000 1 1.9
20000 and above 2 3.9
Total 52 100.0

Expenditure (NRs.) No. of H.Hs Percent

4000 or less 12 23.7
4001-8000 30 57.7
8001-12000 7 13.5
12001-16000 2 3.9
16000 and above 1 1.9
Total 52 100.0
 Physical capital
all surveyed households have found their own house in the
study area.
Personal house but 75 percent built toilet
53.8 percent households throw their garbage into the river
71.15 percent of the dwelling units have electrical connection
however twenty five percent supply the electricity for their
neighbors who have their electricity supply.
90 Ninety percent households have the means of
entertainment like T.V. Radio
3 public taps provided by the water supply corporation for the
settlement
 Social capital
It was found that there are two social organizations in Balaju.
One is settlement improvement committee (Tole Sudar
Samiti) which is associated with Nepal Abaybastit Basti
Sanrachhan Samaj (Society for Unsystematic settlement
Conservation).
Besides this, other organization and associations were also
found in the study area and can be considered as their social
capital. They are youth club, child care centre, and women
association. Youth boys and girls are associated with club.
Youth club helps the people to give a variety of knowledge to
the squatter people. Some saving groups of women are
involved in this group and they have started saving and credit
program. Lumanti helps to function and run programme of
the saving groups.
Squatter people of Balaju are also involved in different social
works such as demonstration of the right of squatters. But
social interaction is weakly developed in the study area.
 Vulnerability and coping strategies
The risks of unemployment, loss of income and indebtedness-
depends to a great extent on working children. At that time from a young
age onwards, boys were sent out in the street to realize meager incomes,
for instance by working as servants in shops or through pottering. Taking
loan from saving and credit
The risk of food insecurity- common coping strategy is the tendency
to skip one meal a day, establishing friendly relations with shopkeepers
and receiving support from them
The risk of deteriorating health- obtaining loans for treatment,
reducing the labour force to provide constant care for household
members in need and trying to mobilise social relations for support are
certainly the most important coping strategies.
The risk of social disintegration- other NGOs and GOs are working
for the establishment of their social interaction through different local
institutions, i.e. youth network, women network
 Program and policies for urban poverty reduction
(programs)
Kathmandu Valley Physical Development Concept (1984)- it focus(1) to
improve the municipal services and facilities and to develop areas in a more
integrated way by providing them these facilities, and (2) to improve physical
environment through the provision of necessary develop land use.
Training in Area Upgrading and Slum Rehabilitation in Kathmandu (TASK)
(1989)-TASK project were develop training manuals and training programme,
implemented of the appropriate plans to meet needs of urban poor,
demonstration of the urban upgrading programme.
Kathmandu Valley Urban Development Plans and Programmes (1990)-
HMG/Nepal and ADB jointly under took this study. This study delivered various
strategies plans and operational strategies regarding to the land use, environment,
infrastructure and institutional development. The study does not have prioritised
urban poverty and squatter issues.
Kathmandu Valley Urban Development Policy Study (1990) -HMG/Nepal, UNDP,
World Bank and USAID jointly undertook this project, which delivered a national
level urban development strategies and policies. Many strategies and guidelines
are recommended for the Kathmandu valley without sound strategies for urban
poverty reduction and the squatter settlements.
 Policies
Government policies-Poverty reduction is a prime objective of the
each fifth year plans of Nepal. Even it was only one objective of the Ninth
Fifth Year Plans (1997-2002). Nevertheless, the level of poverty remained
almost same. Tenth plan (2002-2007) has committed to reduce poverty
particularly in the urban area. The plan commits to reduce urban poverty
through the development of infrastructures and housing facilities.
KMCs policies-Both Mayor and CDS have ambitious vision for
Kathmandu. City Development Strategies (CDS) has clear goal to develop
clear policy on squatter settlement. It is positive step in the sense that the
urban poverty and squatter settlements is perceived as an emerging core
issue in the metropolitan development committed to the provision of
granting tenure security and temporary security to stay for squatter before
finding other alternatives

Major organizations involved in the urban

development and the squatter settlement in
KMC-------------------------contd
Institutions/ Nature of participation Implication to squatter
organizations settlement
Central Government
National Planning Commission National level policy 10th plan (2002-2007) felt the
(NPC) formulation need of policies and strategies
for the improvement of the
squatter settlements

Ministry of Local Development Monitoring and evaluation of No specific objectives and has
(MLD) the governance issue through direct linked and the
Local Self-Governance Act implication
1999.
Housing and Urban Department
to look urban through
management, environment and
urban divisions
Ministry of Physical Planning Set up Urban Development No specific objectives and has
and Work (MPPW) Committee and Town direct linked and the
Development Committee implication
Involved preparation and
implementation of the National
plan of action for Habitat II in
1996
Donor Support

ADB Formulation urban policies No specific and has direct linked

Involvement in the urban
infrastructure development
UDLE/GTZ Urban Planning (integrated action Financial assistant for the
planning) improvement slum community in
Financial Management Lonhla (Patan) via Lumanti
Urban Hygiene and Environmental
Action Programmes
Municipal Organization
Development and Administration
UNDP Institutional Strengthening Mostly out of Kathmandu
Public-private partnerships No impact to the squatter in KMC
Rural-urban partnerships
Local Government
KMC CDS Felt the need of action and priority issue
KVMP No policies and working mechanism
Implementation?? (Uncertain)

NGOs

Lumanti Improve quality of life of the urban Participation in the slum/squatter

poor upgrading/improving programme in
Secures shelter for the urban poor KMC, Lalitpur and Thimi of
Solidarity of urban poor Kathmandu valley
 Overall assessments of the participation of the different stakeholders and their
interests and capacities
Stakeholders Interests/strategies Capacities

KMC Increase supply of affordable housing Vision of KMC

plots meeting the demand of various Political will
income group including low income Poor finance
group
Control and prevention of new squatter
and management
Preparation for clear-cut squatter policy
Lumanti Improve the living environment of the Weak resource base
(NGO) squatter and the slum communities
Coordination and advocate role
Local Communities Improvement of the neighbourhood Cooperation and coordination
environment Participation and suggestion
Preservation of the historical monuments
and the signatures at the river side
Improve the infrastructure
Increase security
Central Government Develop urban development policies Financial help,
within where squatter issues should be Framework provide
addressed
Donor agencies Delivered the quality urban development Direct involvement
policy
Politician Vote bank Political support
Improve environment
Squatter Equity Participation
Tenure security Provide cheap labour force
Access to services and facilities
 Conclusions
Squatter settlement of Balaju was established before 1981. But it is one of the
unmanaged and unimproved settlements regarding the physical condition. It is in a very
vulnerable condition and has high risk of flooding and erosion
the housing condition is poor. Their houses are made of the raw bricks and old zink
plates. Houses and lives are vulnerable even from wind, rain storms and fire because it
can damage everything in the settlement. They feel less secured since they are at times
threatened by municipality.
This settlement is not well managed. It is absolutely lacks different infrastructure and
social services. For example, if lacks drinking water, public health, facilities and security.
It is because people have low income and hand mouth problem.
people constructed a toilet at the corner of the room. Some of them use riverside while
a few have constructed toilets in the open riverbank. Regarding the state of social
services and facilities, health and sanitation, drain management, electricity, education,
these squatters have been suffering from adverse effects.
Due to poor economic condition neither people have strong and wide social networking
nor are they confident of being organized, nor have they attachment with other place in
Balaju
This settlement is composed of different caste/ethnic groups such as Chhetri,
Mongoloid, Newars and Dalits (Damai, Kami). However, people of Mongolion origin are
dominant ethnic group of this settlements contd
 The social network was important for them to come to the settlement
57.7 percent knew about Balaju from their friends. 34.7 percent knew
from other sources such as relatives, local leaders, and middlemen.
Lumanti helps them to do small business. Those having skills find it rather
easy to earn their living. Tailoring, driving and painting are examples. They
would have problem during off-season. Some have relatively stable
earning sources. They include those running small scale business like tea
stall, poultry farm, pig rising.
The bank of Vishnumati river has open drain and polluted air worsens the
health and sanitation situation. This also causes spread of bad smell
beyond the settlement. Worst of all are the roaming ducks and swine in
those open drains which has seriously affected the sanitation and public
health situation of the settlement.
 Recommendation
Seminars and workshops: Both central government and KMCs role
towards urban poor and squatter issue found passive. Therefore, central
government should conduct seminars and workshops in national level and
KMC should organize such activities in the community level for raise
consciousness.
Collaboration is must for resolving problem. Therefore, Kathmandu
Metropolitan City should encourage to the University for conducting
occasional research regarding to the housing affordability and their
income level, causes and possible consequences of squatting population in
future. KMC will know the extent of the issue, effectiveness of the
squatter policies and programmes, possible causes and consequences etc
from these studies.

First, KMC should define urban poor, squatter, slum and vulnerability
groups in the Kathmandu.
At present, KMC has not clear squatter policy. CDS is an initial broad
strategic framework. Therefore, it is recommended that Kathmandu
Metropolitan City should develop clear urban poverty reduction policies.
Formulation of a Task Force: A task force has been strongly recommended
in order to identify problem, need and priorities. The task force has to the
draft policies and programmes. With the certain method from KMC, local
NGOs, CBOs, donor agencies, university and expert of the concern area.
 The final policy will be defined after the consultation with other institutions and
stakeholders for example, the university, NGOs, CBOs, donor agencies and the local
community [particularly squatter] as well. Such policies should encourage to the
local NGOs CBOs to work with poor squatter communities.

Institutional set-up: Squatter issue is increasing rapidly in Kathmandu. But KMC

does not have a responsible department[s] to see the issue. Therefore, it is
recommended that the KMC should have a separate department to see problem.
Such department will keep an up to date data and records of the squatting
population, performance evaluation of the policy and programmes, further need
and priority assessment.
Integrated Development Framework: An Integrated Development Framework has
also been recommended in this study. The framework must address to the three
issues, for example, land, housing and infrastructure development. The framework
should also covers to the income generation activities, saving and credit schemes,
training and encourage to the micro and small enterprises development, low cost
housing and improve housing condition through encourage to the self-help groups
and cooperation, and access to the credit.
Revolving fund should be established through the cooperation of the central
government, KMC, donor agencies and the community as well. Such fund will use
for income generation activities of the squatters and loan for housing
Lastly It should be kept in mind that it may be
possible that all the benefits of different
development programs are enjoyed by those
who are actually not a squatter i.e. who is not
landless. Therefore, the positive steps should
be taken in the welfare of the real squatters
and land should be conferred to those who
are really a landless and homeless.

Thank you