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UNIVERSITY OF LONDON THE INFORMAL LAND MARKET IN CEBU CITY, THE PHILIPPINES; ACCESSIBILITY, SETTLEMENT DEVELOPMENT AND RESIDENTIAL SEGREGATION A Thesis submitted for the Degree of Doctor of Philosophy a t The London School of Economics and Political Science University of London Allyson Thirkell September 1994 UMI Number: U615397 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI U615397 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 I (4 £S £ S F 7 Z2 ABSTRACT The main aim of the thesis is to explore the nature of informal land development in Cebu City, the Philippines, and to evaluate the impacts on shelter, particularly among the urban poor. More specific objectives are to examine who gains access to informal land, how the process of informal land alienation and turnover occurs, and which actors are involved in informal land delivery. The research uses primary data from 243 household interviews conducted in 5 informal settlements in urban Cebu to assess how informal land sales influence the socio-economic composition of settlements. The research also examines whether there is evidence of residential segregation among informal settlements according to income and the implications of this for urban settlement and levels of poverty. The research also draws on detailed interviews with 25 land agents to explore their roles in these processes. Similar to other studies the research acknowledges that informal lands are undergoing significant commercialisation, mainly because of the demand imposed on informal plots by high land prices in the formal market. This has made titled property unaffordable to the urban poor and a less attractive option to middle income groups. The research particularly highlights how the behaviour of middle income buyers in the informal land market creates bottlenecks in the supply of plots (by buying large plots for occupation, leaving purchased plots vacant and also accelerating plot prices through speculation, for example). In addition, since poorer residents are vulnerable to “crisis selling” of land and generally have a lower perception of plot value, they do not always receive a fair price for their plots, which reduces their ability to r repurchase land at a later date. The research concludes that these processes exacerbate residential segregation between households on the basis of income and has led to great disparities in settlement densities, infrastructure and service availability. The latter are vital issues for urban policy, social development and poverty considerations. ACKNOWLEDGEMENTS This study was made possible by a postgraduate studentship from the ESRC. During the time of researching and writing this thesis a number of people have given me advice and support. A few of which I would like to mention here. In Cebu City I would like to thank Margie Matheu for her help and lively debate during my fieldwork and the office of HIGC who provided much support and encouragement during my survey work. I would also like to thank my research colleague, Lory Abela who undertook each and every interview with me extending patience and kindness during the survey. In the United Kingdom, I would like to extend my heart felt thanks to my supervisor, Dr Sylvia Chant who had the arduous task of reading the many preceding drafts of this thesis. Her useful criticisms and guidance during the research has been invaluable. In addition she has extended much kindness and understanding through the years. Furthermore a number of close friends in the Department of Geography have given me help and advice namely; Cathy, Brian, Peter, Hazel and Helen. In particular I would like to mention Sarah who was, at the time, also finishing a Ph.D and provided support and encouragement through a period of mutual anguish. Finally I would Like to thank Euros whose support, compassion and love has got me through a difficult year and given me the will-power to finish. Last I would like to mention my parents who have with much love and good humour been a source of strength, especially my father to whom this is dedicated. flQMEMIS Abstract i Acknowledgements i i Contents i i i List of Tables v ii List of Figures i x List of Plates x Glossary x i Abbreviations x i i Chapter 1 Informal Land Delivery; Research on MarKet Transformation and Behaviour 1 Objectives of the Study 2 Research on the Evolution of Informal land Markets 3 Methodology 15 Thesis Organisation 1 9 Notes to Chapter 1 2 2 Chapter 2 The History and Political Economy of Cebu.Central Visavas 23 Introduction 23 Cebu: Before the arrival of the Spanish 2 3 The arrival of the Spanish: Impacts to the local economy:1521 2 8 The rise of the Chinese mestizo elite and the beginning of the economic recovery in Cebu 1750-1840 3 2 The Emergence of Cebuano Politics in the 20th century: The Political Elite 3 7 The Philippine economy: the need for newinvestment destinations 4 0 The Social Consequences of Ceboom 4 9 Conclusion 5 4 Notes to Chapter 2 5 6 i i i ■Chapter.3 Land Use Rights and Private Property, the History and Culture of Land Ownership in Cebu 5 7 Introduction 5 7 The Origins of Contemporary Land Holding Patterns in Cebu City 5 8 Contemporary land ownership, the formal land market and the formation of an informal land delivery system 64 Housing Development 6 9 Traditional land tenure systems and the significance of “use rights” in contemporary Land Relations in the Philippines 76 Conclusion 8 6 Notes to Chapter 3 8 7 Chapte.r_4 Current Demand for Informal Land in Cebu Citv: the Changing Nature of the Urban “Squatter" 8 9 Introduction 8 9 The Contemporary Urban Geography of Cebu City 9 0 Informal Land Development in Cebu City and Its Locations 9 4 Characteristics of the Five Sample Settlements 9 4 The Conceptualisation of the Urban Poor and the Squatter 102 Overall Socio-Economic Characteristics of the Sample Residents 10 6 Tenure Status in the Settlements 117 Conclusion 1 21 Notes to Chapter 4 122 i v Chapter 5 The Role and Function of Agents in Informal Land Delivery in Cebu Citv 124 Introduction 124 Agents and their Role in the Land Development Process 125 The Nature of Land Ownership and its Impact on Development 131 Agents and Land Conversion: The Transfer of Agricultural Land to Urban Settlement 132 Agent Strategies and Power Relations in Informal Land Delivery 146 Conclusion 148 Notes to Chapter 5 150 Chapter 6 Land Sales and Sellers: Choice and Constraint within the Informal Land. MarKet 151 Introduction 151 Informal Plot Sales and Settlement Development 1 52 Players in Informal Land Markets: Who Wins? Who Loses? 16 6 Conclusion 187 Notes to Chapter 6 189 Chapter 7 The Implications of the Land Market for Informal Settlement Development 191 Introduction 191 Residential Development through the Informal Land Market in Cebu City 191 Community Development, Self Perception and Participation 2 0 7 Conclusion 2 1 5 Notes to Chapter 7 2 1 6 v Chapter S Conclusions 2 1 7 Critical Findings of the Research 2 1 7 Policy Implications 2 2 0 Areas for Future Research 221 APPENDICES. Appendix 1 Household Survey 2 2 3 Appendix 2 Land Aaent Survey 2 2 4 Appendix 3 Baranaav Map of Cebu 24 6 Appendix 4 Maps of Study Settlements 2 4 8 Appendix 5 Local Housing Demand 2 6 4 Appendix 6 Documentation for InformalLand Transfer 2 6 9 Appendix 7 Perception of Informal Communities. Barangav Captain 271 Bibliography 273 v i List of Tables 2.1 Top Gross export Sales in 1991 for Cebu Province 4 5 2.2 Population growth, Cities and Municipalities in Metro Cebu, 1980-1990 50 2.3 Employment, Under- and Unemployment, Cebu City 1991/92 52 3.1 Growth of Informal Settlements over Time in Cebu City 73 3 .2 Original and Current Status of Land by settlement in Cebu City 76 4.1 Demographic Growth and Population Density by Barangay, 1980 and 1990 97 4 .2 Household Headship by Settlement 107 4.3 Educational Levels Achieved by the Household Head by Settlement 111 4.4 Income Statistics between Settlements, 1992 11 1 4.5 Origin of Migrants 114 4.6 Migration since 1980 to Metro Cebu by Settlement 114 4 .7 Age on Arrival in Metro Cebu 115 4.8 Tenure Differentiation among Migrants and Non-Migrants 117 4.9 Tenure Type by Settlement, Cebu City 118 5.1 Hierarchy of Informal Land Agents Operating in Cebu City 141 6.1 Origin of Land Right Purchase in the Study Settlements 157 6.2 Actual Cost for Formal and Informal Housing Schemes in Cebu City, 1991 168 6.3 Informal Plot Prices by Settlement according to Area in 1992 170 6.4 Land Acquisition Payments in Cebu City 173 6.5 Source of Finance for Land Right Purchase 174 7.1 Socio-economic Composition of Sample settlements in Cebu City, 1992 194 7.2 Structure and Plot Density by Settlement 195 v ii Table 7.3 Standards of Housing Quality be Settlement 198 Table 7.4 Water Provision within Sample Settlements 2 0 0 Table 7.5 Household Estimation of the Number of users for Communal Water Pumps or Private Water Supply by Settlement 2 0 2 Table 7.6 Community participation within Settlement Based Organisations 2 0 8 viii List of Figures Figure 2.1 Cebu, Central Visayas and its Position in the Philippines 24 Figure 2.2 Map of the Port Area of Cebu ca.