UNITED NATIONS	HS
	Commission on Human Settlements	Distr. GENERAL HS/C/17/2 9 March 1999 ORIGINAL: ENGLISH

1. As the new millennium approaches, a consensus is emerging that, in the next century cities will hold the key to sustainable development, economic growth, political and social stability and domestic peace. This dramatic increase in the weight of cities and urban areas in national and international development and global economic progress is the result of demographic shifts over the past 30 years which are unprecedented in history in terms of their speed and the numbers involved. And this transformation of the settlements landscape will continue well into the twenty-first century, especially in Africa and large parts of Asia. It is clear that many Governments throughout the world are unprepared and under-resourced in anticipating, planning and preparing for the scale of this urban challenge, especially at a time of equally unprecedented global change at the political, economic, technological and environmental levels.

2. The Conference on Human Settlements (Habitat II), held in Istanbul in June 1996 was an attempt by the international community, including mayors and local authorities, non-governmental organizations, researchers, parliamentarians and other concerned partners, to come to terms with this global urban challenge and its policy implications. This, in turn, underscores the critical importance for the international community of the recommendations of Habitat II adopted in the Habitat Agenda.

3. It also underscores the critical need for an agency within the United Nations family specifically focused on the responses to urbanization and on assisting Governments and cities to manage this complex process. Given the scale of the problems to be confronted in the decades to come, however, and the fact that other United Nations agencies and bodies are also devoting more attention to urban issues within their sectoral areas of responsibility, the United Nations Centre for Human Settlements (UNCHS) (Habitat) must first determine how best it can contribute to the global response to urbanization. Another vital and related task facing the Centre is to determine how to strengthen itself and to increase its credibility and administrative and operational efficiency if it is to become a recognized global player in the urban arena.

4. Accordingly, UNCHS (Habitat) has begun to overcome a number of major deficiencies in both the orientation of its work programme and its management and financial controls, all of which over the past years have led to a major drop in donor confidence, as pointed out by the Commission at its last session. At the same time, it has commissioned a number of major studies on the Centre and its operations, which have also highlighted the continuing need for a strengthened and revitalized Centre, given that the areas under its responsibility will be core development concerns of the international community in the decades ahead, and keeping in mind that investments in cities are also crucial to rural development and regional growth.

5. This progress report, therefore, provides an overview not only of the Centre's work since the last session of the Commission, but also summarizes the concrete steps taken by UNCHS (Habitat) to face the coming challenges in the field of human settlements and to redefine its priorities, so as to be able to make a strategic contribution to global sustainable development, poverty eradication and economic growth in the twenty-first century, in the realization of which cities will play a very large part.

6. Notwithstanding the two assessments conducted since 1996 and numerous recommendations, including those of the four Governments' assessment, circulated at the Commission's sixteenth session in the annex to document HS/C/16/CRP.7, and of the Office for Internal Oversight Services (OIOS), contained in its report on UNCHS (Habitat) (A/51/884), by the middle of 1998 the Centre was still in serious trouble and faced an extremely uncertain future. A revitalization team was appointed in September 1998, with members nominated by the Governments of Norway, South Africa and the United Kingdom of Great Britain and Northern Ireland, and also by United Nations Headquarters, to assist the new acting Executive Director in the reform of the Centre.

7. The instruction to the revitalization team was not to produce another study, but to build on the work of previous reports, as well as on the report of the Secretary-General on the work of the Task Force on Environment and Human Settlements, and then to make recommendations for immediate implementation. Those recommendations would signal to member States, donors and - not least - to the staff of UNCHS (Habitat) itself that this was an organization with a mandate, with support and with a future and which, furthermore, would respond to Commission resolution 16/8 on the revitalization of the Habitat Centre, as well as resolution 16/19 on corrective measures in administrative and budgetary matters, both of 7 May 1997.

8. After establishing its programme of work and guiding principles, and circulating these to all staff members and the Permanent Representatives to UNCHS (Habitat) in Nairobi, the team then produced a frank assessment of the current state of the organization, based on wide-ranging interviews with staff members at all levels and with the staff association, and made a set of preliminary recommendations. This report was shared with all UNCHS (Habitat) staff members and was distributed to the Permanent Representatives as well.

9. The team then moved to the second phase, which contained the most detailed and significant work. For this, it established two working groups, both including staff members and managers, to assist in the development of sets of recommendations. Working Group One developed a new strategic vision for Habitat, setting out the priorities for the future substantive work of the Centre, whereas Working Group Two made recommendations on management and administrative matters.

10. The recommendations of Working Group Two led to the issuance of the report on management and administrative matters, which was completed at the end of October 1998. The report sought to review both the internal efficacy of administrative and managerial controls within UNCHS (Habitat), as well as to establish clear institutional arrangements within the Nairobi duty station in this regard.

11. In this report, which was distributed and discussed with the Permanent Representatives, the team made a total of 26 recommendations, grouped according to the timing of their proposed implementation. These recommendations dealt with planning, budgeting and performance reporting; the information and reporting system; financial and administrative concerns; synergies between UNCHS (Habitat), UNEP and the United Nations Office at Nairobi; and, finally, organization, refocused programme priorities and resources.

12. The main recommendations included:

    (a) Establishment of a planning and coordination office;

    (b) Rationalization of funding and resource mobilization;

    (c) Identification of potential joint synergies with UNEP and the United Nations Office at Nairobi; and

    (d) Regularization of L-post/200 series contracts.

In direct response to these recommendations, a new Planning and Coordination Office was established by the acting Executive Director in early November 1998, becoming operational from 1 January 1999.

13.  Subsequently, a small inter-agency working group was set up to address recommendations dealing with joint services to be shared with UNEP and the United Nations Office at Nairobi respectively, and to develop proposals for consideration by the revitalization team.

14. Working Group One examined the context and the approach of UNCHS (Habitat) to its work and its mandate. The Habitat Agenda, and its Global Plan of Action, are wide-ranging and comprehensive documents that can lead to the dissipation of effort, especially for a small organization such as UNCHS (Habitat).

15. The direct outcome of this exercise was a document on a new strategic vision for UNCHS (Habitat), which proposed a significantly different approach to the implementation of the Habitat Agenda. It argued that UNCHS (Habitat) should adopt the style and profile of a global advocacy agency and, utilizing principles of social justice and equity, focus on maximizing its impact through human settlements programmes that would lead to urban poverty reduction, thereby making a direct contribution to broader development goals of the United Nations and the international community as a whole. In line with this focus, UNCHS (Habitat) should become recognized as the United Nations city agency, dealing with the human settlement challenges of an urbanizing world. The proposals of the strategic vision were discussed at length with the Committee of Permanent Representatives to UNCHS (Habitat) in Nairobi.

16. In line with the recommendations of the strategic vision, and to give effect to its mandate, UNCHS (Habitat) will adopt a new approach, and use two global campaigns as strategic points of entry into the Habitat Agenda. The campaigns are each derived from one of the two themes of the Habitat Agenda. Work on the first theme of adequate shelter for all will be led by a global campaign for secure tenure; whereas the second theme of sustainable urban development will be addressed through the global campaign on urban governance.

17. Both campaigns will require a significantly different approach to the work programme, and the management of work processes within UNCHS (Habitat). The new strategic vision served as the basis for the preparation of the draft work programme of the Centre for the biennium 2000-2001, and has already signalled a change in the style of the organization.

18. The third phase, dealing with management style, was addressed more systematically by the team in the first quarter of 1999, as part of the process of implementing a new organizational structure. Work in this area was guided, in many respects, by the logic inherent in the structure itself. Care was also taken to locate any managerial reform within the context of the Secretary General's overall reform of the United Nations. In particular, the financial and administrative management of UNCHS (Habitat), working in close collaboration with the United Nations Office at Nairobi, must be of a calibre sufficient to remove the doubts of member States and donors.

19. As indicated, a key task of the revitalization team in the last phase of its work was to develop proposals for the organizational structure that would best enable the organization to implement its work programme within the context of the strategic vision. In the light of all previous recommendations taken in combination, any proposed structure should be measured against the following results:

(a) Strengthening of the normative capacities of UNCHS (Habitat);

(b) Facilitated exchange of information and experience;

(c) Improved financial and administrative efficiency;

(d) Enhanced opportunity for staff development, learning and advancement;

(e) Linking of operational and normative work processes;

(f) Integration of the regional offices into the work programme;

(g) Forging of a corporate identity; and

(h) Promotion of accountability and delegation of authority.

21. The new organizational structure incorporates a streamlined executive management structure and three divisions at headquarters. This will allow the Centre to concentrate the bulk of its human and financial resources on the implementation of the work programme, structurally focused on shelter for all and sustainable urban development and their respective global campaigns. Of the three divisions, two are substantive, while the third will provide programme support in programming, administrative and financial management, resource mobilization and in facilitating cooperation with all partners.

22. Of the two substantive divisions, the Global Division, with its urban development and shelter branches, will have overall responsibility for projecting the normative and policy activities of the Centre around two global campaign themes of secure tenure and urban governance. The Regional and Technical Cooperation Division will project the Centre's campaigns into the world's respective regions, provide direct policy and technical support to regional partners in the implementation of the Habitat Agenda, develop cooperation at the regional level for urban and shelter development and, through its technical cooperation activities, feed back knowledge gained into all policy components of UNCHS (Habitat). This division will also execute technical cooperation projects funded by United Nations agencies, especially the United Nations Development Programme (UNDP) and including UNEP, as well as by other donors. Finally an Urban Secretariat will provide support to both divisions with regard to monitoring and assessment, including indicators and statistics, gender issues, best practices and information.

23. As part of this reorganization, the regional offices will become fully integrated into the work of the Centre and act as regional focal points for the global campaigns, as well as sources of high quality inputs to the work at headquarters. In short, these offices should have the ability to operate as an integral part of UNCHS (Habitat) for the benefit of the regional member states, cities and partners.

24. In a relatively short time, and working intensively with members of the Committee of Permanent Representatives, both formally and informally, the revitalization team helped to create a more positive outlook for UNCHS (Habitat). By the end of 1998, several significant donors felt confident enough to signal their positive financial responses to the progress already made. At the same time, the Centre entered into a partnership with the World Bank - The Cities Initiative - which is in line with the new strategic vision for UNCHS (Habitat).

25. Since Istanbul, there have been a number of significant developments and a number of Governments, as well as some of the major Habitat II partners, have adopted specific plans of action to implement the Habitat Agenda. A review of progress to date, however, also reveals significant gaps and weaknesses. At the same time, the continuing process of rapid urbanization in most developing countries and deterioration in the physical, social, and environmental conditions of settlements the world over make the implementation of the policy recommendations of the Agenda, as well as international cooperation for that purpose, even more imperative.

26. Such gaps and shortcomings, alarming in many ways, are particularly evident in the area of shelter, one of the major areas of emphasis of the global plan of action adopted in Istanbul. Despite the fact that housing conditions continue to deteriorate worldwide, and with the number of women, men and children having to make do without adequate housing now surpassing the one billion worldwide estimate at the time of the International Year of Shelter for the Homeless (1987), no clear progress can be detected. The fact is that, since Istanbul, and setting aside for the moment all pronouncements of impending policy change, there has been virtually no significant major initiative that has made an impact on national housing conditions, the laudable efforts of some non-governmental organizations and city authorities notwithstanding. Housing is usually not a national policy priority, especially in this time of economic downturn and financial crisis in many parts of the world. Negative macro-economic trends should, however, not be an excuse for inaction; they should rather give cause for some rethinking of current economic growth and development strategies, leading to more linkages between economic and social development.

27. In the light of the deteriorating situation, a different response is also required from UNCHS (Habitat), beginning with building greater global awareness of the deterioration of housing conditions of the poor majority and its consequences and a focus on key policy issues that can be catalytic to housing improvement. To address this in a more forceful manner, UNCHS (Habitat) is establishing a campaign on secure tenure and is engaging in the "Cities Initiative", one goal of which is slum and squatter settlements improvement.

28. As for the other major subject area of the Habitat Agenda, sustainable urban development, the most significant change since 1996 has been the recognition by major international development institutions, national Governments, and other major players in the development field, of the importance of cities and urban areas in general for economic growth and sustainable development globally. While this offers the prospect of a greater emphasis on cities and on urban-based development strategies in the near future, it reinforces the preposition that the Centre should position itself as the city agency of the United Nations.

29. Parallel to the conceptual progress made by UNCHS (Habitat) on the future role of cities in sustainable development, leading to the re-orientation of its work programme and its organizational structure in line with the recommendations of the revitalization team, substantial advances have also been made with key partner groups in support of this new orientation, particularly with mayors and associations of local authorities, as well as with parliamentarians. Work has begun with the international and regional associations of local authorities, in particular the International Union of Local Authorities (IULA) and the local authority umbrella organization of the World Associations of Cities and Local Authorities Coordination (WACLAC), on a world charter of local self-government to serve as an international framework on the rights and responsibilities of local government, with a view to facilitating the implementation of the Habitat Agenda at the political and policy levels. In addition, following the second Global Forum of the Global Parliamentarians on Habitat, held in Cancun, Mexico, in January 1998, the Centre has begun to collaborate with the Global Parliamentarians on human settlements legislation, for the further promotion of the Habitat Agenda. Both of these initiatives will be critical to success of the follow-up to Habitat II, as will new networks established by the Centre over the past two years, such as the International Urban Poverty Forum and the International Urban Environment Forum.

30. One key area where UNCHS (Habitat) can make a significant contribution is in the improvement of urban governance, given its accumulated experience and actual work in the field of urban management and capacity-building, where activities of UNCHS (Habitat) global programmes such as the Urban Management Programme and the Sustainable Cities Programme grew significantly during the period covered by the present report. Efforts will be made to strengthen these experiences in the development of norms and standards to guide policy. Accordingly, this topic should be a concentrated focus of work of the Centre as part of its contribution to urban development in future, mobilizing for this purpose its partnership with local authorities and networks of cities.

31. Moving forward also means strengthening international cooperation. It is expected that the preparations for the special session of the General Assembly for an overall review and appraisal of the implementation of the Habitat Agenda, as well as the session itself, will provide the framework to deepen that cooperation between all partners and parties concerned, and to accelerate the momentum initiated at Istanbul in 1996.

32. Pursuant to paragraph 12 of General Assembly resolution 52/190 of 18 December 1997 on the special session of the General Assembly for an overall review and appraisal of the implementation of the outcome of the Second United Nations Conference on Human Settlements (Habitat II), the Secretary-General submitted to the General Assembly at its fifty-third session a report which, inter alia, contained proposals on the scope and substantive aspects of the special session; the organizational aspects of the special session, including the preparatory process; the roles of the Commission on Human Settlements, the Economic and Social Council and the General Assembly in that process; and the involvement of partners and relevant United Nations organizations and agencies in the review and appraisal process. A copy of that report is annexed to document HS/C/17/3/Add.1, which is before this session of the Commission.

33. After its consideration of the report of the Secretary-General, the General Assembly adopted resolution 53/180 of 15 December 1998, in which it, inter alia, decided that the special session would be held in June 2001 for a period of three working days, and that the Commission on Human Settlements should serve as the Preparatory Committee. The full text of General Assembly resolution 53/180 is contained in the annex to document HS/C/17/3/Add.1, which outlines the functions and responsibilities of the Commission as the Preparatory Committee, as well as the goals of the session. It is the expectation of the General Assembly that the preparatory phase for the special session, as well as the special session itself in 2001, will serve to accelerate the implementation of the Habitat Agenda and coordinate collaboration with United Nations entities and other partners, as well as with the follow-up of other United Nations global conferences. This amounts to a significant challenge for the Commission, as the Preparatory Committee, and for the Centre as its secretariat.

34. At its sixteenth session, the Commission on Human Settlements provided policy guidance on a number of specific issues related to the Centre's work programme and requested the Executive Director to report on progress in the implementation of these resolutions at its seventeenth session summarized in the following sections.

35. In response to resolution 16/3 of 6 May 1997, by which the Commission called on the Executive Director to strengthen the disaster management work of the Centre and invited Governments to support such activities, the Disaster Management Programme during 1997-1998 strengthened the Centre’s capabilities for disaster mitigation and rehabilitation in human settlements. While continuing its operational activities on settlements rehabilitation, the programme has increased its efforts to formulate management and skills development tools targeted at local authorities and the informal builders of cities. Recent support missions on flood management demonstrate the need for more integrated work with UNEP on this issue. A joint UNCHS (Habitat)/UNEP Task Force on Flood Management was set up for this purpose, to promote regional approaches and agreements to deal with the problem and as a optimum mechanism for delivering policy and normative support. Cooperation with the United Nations Volunteers (UNV) has continued by the deployment of UNVs to the Disaster Management Programme. The Government of Japan has also continued its support through 1997 and 1998. There is now a need to strengthen the core capacity of the Disaster Management Programme to meet increasing country demands jointly with UNEP and to consolidate the role of the Centre on policy formulation, norm-setting and skills development, all of which are also reflected in the work of the revitalization team and in the draft 2000-2001 work programme.

36. In its resolution 16/6 of 7 May 1997, the Commission, in recognition of empowerment of women as a prerequisite for sustainable development and poverty alleviation, requested the Executive Director to integrate the gender perspective into all activities of the Centre, as well as to create a gender coordination unit for that purpose, and to ensure gender balance in the staffing of the Centre. In addition, Governments and the Executive Director were urged to support the work of the Centre's Women in Human Settlements Development Programme in the implementation of the Habitat Agenda. Accordingly, UNCHS (Habitat) has, through its Women and Habitat Programme, given advisory services and capacity-building to governments, local and national, on gender-aware implementation of the Habitat Agenda and has begun, in collaboration with its main civil society partner organization, the Huairou Commission, which includes members of grassroots and non-governmental organizations such as Grassroots Organizations Operating Together in Sisterhood (GROOTS) International, the Habitat International Coalition (HIC), the Women and Shelter Network, the International Council of Women and the Women's Environment and Development Organization (WEDO), to monitor and evaluate gender-aware implementation of national plans of action. This includes the inclusion of women in decision-making in human settlements.

37. In addition, the Centre has approved a comprehensive policy paper and action plan entitled: Gendered Habitat: Working with Women and Men in Human Settlements Development. The Centre has established its Gender Unit, with the support of the Government of Norway, which is responsible for monitoring and evaluating the full integration of a gender perspective into the work of the Centre. UNCHS (Habitat) and the Human Resource Management Office of the United Nations Office at Nairobi are taking steps to ensure a gender balance in the staff of the Centre. Progress here has been slow, however, because of cutbacks and a general lack of funds, with a consequent curtailing of new recruitment for posts subject to geographical distribution.

38. At the programme level, all major programmes of the Centre are required to give visibility to women and women's organizations in their activities. Finally, phases 2 and 3 of the indicators collection process for the measuring of women's participation in human settlements development at the local and national levels are now in progress. The data collected will be used by the Centre, Governments and civil society partners. Looking to the future, the strategic vision for UNCHS (Habitat), which informs the Centre's draft 2000-2001 work programme, includes women as a prime indicator for progress towards poverty alleviation, better governance and security of tenure.

39. Pursuant to the Commission's resolution 16/7 of 7 may 1997, on the realization of the human right to adequate housing, the Centre is working with the Office of the United Nations High Commissioner for Human Rights and with a number of international housing organizations on this subject. In line with this work, the Centre also participated in the fifty-fourth session of the United Nations Commission on Human Rights in March 1998.

40. A strategy document on practical aspects of the realization of the human right to adequate housing, with contributions by the Centre on Housing Rights and Evictions (COHRE), was finalized by UNCHS (Habitat) and the Office of the United Nations High Commissioner for Refugees in early 1999. It aims to provide guidelines to countries for the realization of this right. Two other documents to support the implementation of the Habitat Agenda, namely on strategies to combat homelessness, with contributions from the European Federation of National Organizations working with the Homeless (FEANTSA), and on women and property rights, were also produced.

41. In addition, the Centre is participating actively in the work of the Ad Hoc Group on the Right to Development of the United Nations Development Group, on the issue of housing rights. The Centre's activities in this area are, to a large extent, facilitated by contributions from the Government of Sweden. As a substantial initiative envisaged by UNCHS (Habitat) in its new strategic vision, beginning with the 2000-2001 work programme, the issue of the right to housing will be addressed by the Centre through the Global Campaign on Security of Tenure, given the fundamental importance of housing and property rights in addressing homelessness and housing for the poor.

42. By its resolution 16/9 of 6 May 1997, the Commission requested the Executive Director to publicize and disseminate the second global report on human settlements as widely as possible and to begin work on the third report as part of the 1998-1999 work programme of UNCHS (Habitat). Accordingly, the Centre has continued to publicize and disseminate the Global Report on Human Settlements to government organs, educational institutions, organizations and individuals at various meetings, workshops, seminars and conferences, and by mail on request. Oxford University Press, publisher of the report, has also marketed the report in various regions of the world. In addition, the Government of Colombia has translated it into Spanish and disseminated it in Latin America. The Government of China has produced a Chinese-language version.

43. Preparation of the third global report on human settlements, scheduled to be released in the year 2001, has been initiated with a focus on the theme: "State of housing and homelessness". This theme has been chosen because shelter was one of the two key themes of Habitat II, but not centrally addressed in the last edition of the report. An expert group meeting on the preparations for the report was held in March 1999. Data and other information for the report are progressively being collected, collated and analysed.

44. The Centre continues to experience financial constraints for the preparation of this new report, if it is to be funded within "existing resources" as requested by the Commission. This matter is of further importance as the 2001 edition of the report will be the flagship analytical and normative publication for subprogramme 1 "Shelter for All" of the draft 2000-2001 work programme and support the work of the Global Campaign on Security of Tenure. It is scheduled to be released in time for the review of the implementation of the Habitat Agenda in 2001.

45. Despite the continuing shortage of funds to support the implementation of the Habitat Agenda at national and local levels, most UNCHS (Habitat) missions related to technical cooperation in developing countries have been able to make some progress. This issue is more extensively explored in the Executive Director's report on international cooperation for the implementation of the Habitat Agenda (HS/C/17/6), under consideration by the Commission at the current session.

46. In this regard, UNCHS (Habitat), jointly with UNDP, has also issued guidelines for the United Nations resident coordinator system on the implementation of the Habitat Agenda, with inputs from most United Nations agencies. All major global and interregional Habitat programmes, as well as operational activities in various developing countries, contain strong components for the building of partnerships at local levels and capacity-building activities tailored to local partners, in particular for local authorities and non-governmental and community-based organizations. UNCHS (Habitat) has prepared the Habitat Special Programme for Africa to support the implementation of national plans of action and the Habitat Agenda in general, but development agencies have not yet been able to provide financial support for the Special Programme. In short, UNCHS (Habitat) has performed its role of catalyst and facilitator in the continuous involvement of partners in the Habitat Agenda implementation process by supporting specific follow-up activities and enlisting new partners.

47. As a follow-up to resolution 16/15 of 6 May 1997 on this subject and as a continuation of the work undertaken in this area in previous work programmes, two specific research projects were initiated for the preparation, first, of a policy paper on enablement and partnership for shelter and social services and, second, of a report on the delivery of shelter and social services through partnerships and joint ventures with local authorities, private sector and non-governmental organization. The first paper focused on the contributions of community organizations and the second on the contributions of housing cooperatives. The latter study is being undertaken jointly with the International Cooperative Alliance, also making use of the financial and technical support of Turkkonut, a major housing cooperative union in Turkey. Memoranda of understanding between the Centre and these organizations have been signed.

48. The Centre closely cooperated with shelter non-governmental organizations active at the national and the international levels with a view to advocating shelter development, as well as with youth organizations and organizations representing the interest of the aged, albeit with very limited resources, given the scale of the problem addressed.

49. The operational activities of the Centre in the area of shelter development, including components relating to promotion of the contributions of the private and non-governmental sectors, continued in the 1998-1999 biennium in about 10 developing countries, including South Africa. Actions in the field of shelter development at the national level and the trends at the regional levels regarding these developments are summarized in chapter I, on adequate shelter for all, of the Executive Director's report on implementation of the Habitat Agenda (HS/C/17/3).

50. Finally, it should be noted here that, as the role of the private sector, as well as that of non-governmental organizations, will be essential to reaching the goal of adequate shelter for all, much more will have to be achieved in this area in future, which is precisely why shelter will be one of the two priorities in the 2000-2001 work programme.

51. UNCHS (Habitat) is working closely with the United Nations Children's Fund (UNICEF) in implementing resolution 16/17 of 7 May 1997 on the rights of the child, particularly with respect to shelter and related services, and has actively participated in its initiative on child-friendly cities. UNCHS (Habitat) and UNICEF jointly organized a workshop on this issue at the first World Congress on Health and Urban Environment, held in Madrid in July 1998. In addition, together with the Government of Italy and the Committee of UNICEF in Italy, UNCHS (Habitat) participated in the organization of forums on child-friendly cities in that country.

52. The International Forum on Urban Poverty has also focused one of its areas of work on urban children, working with mayors and local authorities to develop strategies to address an issue which is fundamental to social stability in cities worldwide and which is directly linked to broader issues of poverty and social fragmentation in urban areas.

53. With this in mind, the Urban Management Programme has developed guidelines for African cities on how to deal with street children and gangs in conjunction with the Centre's new Safer Cities Programme. Other activities include a strategy document on implementing the Habitat Agenda: towards child-centered human settlements development in developing countries, which deals with the mainstreaming of child-related issues into the implementation of the Habitat Agenda, and cooperative work between UNCHS (Habitat) and Plan International on the issue of children and habitat, which has resulted in a policy document on the topic. It has also become clear as a result of these activities, however, that measures to improve the living conditions of urban children cannot be carried out in isolation, but must be addressed within the broader framework of poverty alleviation, an approach which is endorsed in the new strategic vision for UNCHS (Habitat).

54. As requested in resolution 16/22 of 6 May 1997, the International Conference on Urban Poverty, organized by the Centre in cooperation with the Italian authorities, was held in Florence in November 1997, leading to the institutionalization of the International Forum on Urban Poverty, with the Centre serving as the ad hoc secretariat. The Forum joins United Nations agencies with other partners, primarily cities and non-governmental organizations. Subsequently, as decided in Florence, regional forums were formed at initial meetings in Fukuoka, Japan, and Nairobi, Kenya, to exchange experience and define strategies for action. The next international conference on urban poverty will take place in Côte d'Ivoire in October 1999. The Centre's activities in the field of urban poverty during the period under review also led to a focus on the specific relationship between crime and urban poverty and the launching of the Safer Cities Programme, which has succeeded in actively involving a large number of cities and mayors.

55. While the Centre's activities in the area of urban poverty at this initial stage focused on research, networking, strategy formulation and awareness-building, there is no doubt that poverty reduction in urban areas will become a central goal of UNCHS (Habitat) work, as it can lead to greater thematic integration with the work of the United Nations as a whole, given the fact that urban poverty is increasing at a much faster rate than rural poverty.

56. In its resolution 16/24, the Commission requested the Executive Director to report to the General Assembly at its special session on the implementation by UNCHS (Habitat) of Agenda 21. At that special session, held in June 1997, the General Assembly adopted the Programme for the Further Implementation of Agenda 21, which identified a number of priority areas, namely: integration of economic, social and environmental objectives; energy and transport; water use; and international support for national implementation of the Agenda.

57. The Centre has made some progress in integrating social and environmental objectives in its work at the city level, most prominently in the Sustainable Cities and local Agenda 21 programmes, of which the former is of particular significance as it has led to the dissemination of experience through wider networks, such as the Urban Environment Forum. Only now, however, is the Centre beginning to work to transform positive local level experience into support for national policy change, an area of work which will be expanded in future years as part of the ongoing reorganization of UNCHS (Habitat). Moreover, the economic variable has been often underestimated in this equation, which points to a significant skills and knowledge gap in UNCHS (Habitat) that must be overcome in the coming years, especially in the light of the role of cities in economic development.

58. As for the other priority areas of the Programme, significant work has commenced, in conjunction with UNEP, in one key area: water and water management in urban areas and river basins. This project, Water for African Cities, is supported by the United Nations Fund for International Partnership (UNFIP). The absence of progress in the other issue areas listed above validates the underlying premise of the work of the revitalization team, namely, that UNCHS (Habitat) should prioritize its future work and build on those sectoral issues of human settlements work in which it has already achieved some recognition for expertise, rather than spread its limited resources too thin.

59. The Commission adopted resolution 16/18 of 7 May 1997, pursuant to paragraph 9 of resolution ES-10/2 of 25 April 1997, adopted by the General Assembly at its tenth emergency session. Following the adoption of resolution ES-10/2, the Secretary-General submitted to the General Assembly a report on, inter alia, the cessation of the construction of the new settlements in Jebel Abu Ghneim and of all other illegal Israeli actions in occupied East Jerusalem and the rest of the occupied Palestinian Territory (A/ES-10/6-S/1997/494). After its consideration of this report of the Secretary-General, the General Assembly adopted resolution ES-10/3 entitled "Illegal Israeli actions in occupied East Jerusalem and the rest of the occupied Palestinian Territory". Both the above-mentioned report of the Secretary-General and the subsequent resolution were circulated to all Governments through their permanent missions to the United Nations in New York.

60. Pursuant to subparagraph 2 (g) of resolution 16/19 of 7 May 1997 of the Commission on Human Settlements, UNCHS (Habitat) submitted two reports on the proposed increase in regional offices to the Bureau of the Commission, the Committee of Permanent Representatives and all Member States. These reports stress that an expanded regional presence is a logical and necessary response on the part of UNCHS (Habitat) to the responsibilities vested in it by the Habitat Agenda, as such a presence would ensure closer proximity to Governments and other partners and would strengthen the operational and policy capacities of the Centre.

61. The first report, dated 7 July 1997, clarified the mandate of UNCHS (Habitat) regional offices. It described the current situation regarding the regional offices in Rio de Janeiro and Fukuoka, the information offices at the regional level in Amman, Budapest and Mexico City, and at the national level in Beijing, Madras and Moscow, as well as the liaison offices in New York and Geneva. The report also indicated that several proposals for new regional offices were under consideration.

62. The second report, dated 9 June 1998, presented in more detail the regionalization strategy of the Centre, based on resolution 15/7 of 1 May 1995 of the Commission on Human Settlements. It clarified the financial arrangements regulating the establishment of regional offices. In particular, it indicated that, owing to the current financial situation of the Centre, regional offices would need to be financed by the regions themselves, i.e., by combining overheads generated from projects executed in the respective regions with earmarked contributions from host countries. The report also emphasized that regional offices should be an integral part of UNCHS (Habitat), contributing fully to the implementation of its work programme.

63. The second report concluded by proposing procedures to establish new offices. These procedures, generally endorsed by the Bureau of the Commission and the Committee of Permanent Representatives, are in line with the provisions of resolution 15/7: the geographical coverage of a regional office should be decided on a case-by-case basis by taking into account the views of concerned Governments, the critical staffing mass required (four United Nations Professionals), the financial viability of the office and its potential for expansion. After detailed discussions, the Committee of Permanent Representatives decided that the issue of regionalization should be incorporated into the broader revitalization process of the Centre and should therefore be taken up again by the Commission at its seventeenth session.

64. Regional offices have successfully developed operational and awareness-raising activities in Latin America and the Caribbean and in Asia and the Pacific, respectively. They benefit from strong support from host cities - Rio de Janeiro and Fukuoka - and host countries. As requested in paragraph 22 of resolution 16/2 of 7 May 1997 and by resolution 16/25 of 7 May 1997, a brief overview of their activities is provided below.

65. Since its opening in September 1996, the Rio de Janeiro office has provided important technical cooperation services to Chile and Colombia in the area of shelter and social services, to Bolivia, Ecuador, Haiti, Nicaragua and Panama in the area of urban management, and to Chile, El Salvador, Guatemala, Honduras and Montserrat in the area of environment and infrastructure. It has contributed to the organization of various regional meetings, including meetings of ministers, local authorities and parliamentarians.

66. Since its opening in August 1997, the Fukuoka office has provided important technical cooperation services to Cambodia, Indonesia and Myanmar in the area of shelter and social services, to Bhutan, Indonesia, Nepal, Thailand and Viet Nam in the area of urban management and to Afghanistan, India, Philippines and Sri Lanka in the area of environment and infrastructure. It has also organized various regional meetings in cooperation with partner groups, including three conferences in Fukuoka on the topics of community development (March 1998), sustainable consumption patterns (June 1998) and urban poverty (October 1998), respectively.

67. During 1998, preliminary discussions were held with the Government of Jordan regarding the upgrading of the information office in Amman, as requested by resolution 16/14 of 7 May 1997. At the time of the preparation of the present report (February 1999), the Government of Jordan had not yet mobilized the necessary financial contribution for such an upgrading.

68. In application of resolution 16/5 of 7 May 1997 on the regional training centre for the Arab States, UNCHS (Habitat) organized a four-day regional workshop on the urban indicators in April 1998. The workshop was hosted by the Housing and Urban Development Corporation of Jordan and sponsored by the League of Arab States.

69. During 1997-1998, the Centre supported operational and capacity-building activities in countries with economies in transition, as requested by resolution 16/4 of 6 May 1997. Sustainable city projects were supported in Poland and the Russian Federation, while a regional training-of-trainers workshop for local-government-elected officials was organized in Romania. Training manuals for local-government officials were also adapted and translated by UNCHS (Habitat) partners in several countries of Central and Eastern Europe and used as a basis for broad national training programmes.

70. During 1998, discussions were also held with the Government of Turkey regarding the establishment of a UNCHS (Habitat) Istanbul Office. The Government of Turkey made a formal offer to host and fully finance such an office for an annual amount of $1 million over an initial five-year period. The geographical coverage of the office would include countries from Central Asia and Eastern Europe.

71. Early in 1999, the two technical cooperation units of UNCHS (Habitat) dealing, respectively, with francophone Africa, Arab States and Europe and with anglophone Africa and the Southern African Development Community (SADC) have been merged into a Regional Unit for Africa and the Arab States, based at UNCHS (Habitat) headquarters. Activities in Central and Eastern Europe are temporarily managed by the newly established Planning and Coordination Office, pending the outcome of the process described in paragraph 70 above. The Regional Unit for Africa and the Arab States, which may be split at a later stage, depending on the outcome of the moves described in paragraph 67 above plays the role of a regional office and enjoys the same delegation of authority.

72. The key policy issue of cooperation with partners was addressed by the Commission at its sixteenth session, principally in its resolutions 16/2 and 16/12, both of 7 May 1997, which focused on the role of partners in the implementation of the Habitat Agenda, in the work of UNCHS (Habitat) and in the sessions of the Commission, as well as in the preparations for sessions. A specific report on cooperation with partners is also before the Commission at the current session (HS/C/17/7).

73. In the above-cited resolutions, the Commission singled out the local authorities and their associations and their key role in the implementation of the Habitat Agenda as a plan of action for local sustainable development, and urged the Centre to deepen this collaboration. Accordingly, and as already noted earlier in the present report (see paragraph 29 above), the most significant initiative with local authorities has been the joint work on a world charter of local self-government, the idea behind which was first tabled at Istanbul in 1996 and adoption of which is envisaged as one of the outcomes of the International Union of Local Authorities in 2001. Principal local authority partners in this undertaking have been IULA and other member associations of WACLAC, the international local authority coordinating body. A first draft of the charter was elaborated by a joint UNCHS (Habitat)-WACLAC working group in April 1998, with further regional review meetings planned in 1999 for Latin America and the Caribbean in Santiago, Chile, and for the Arab States in Agadir, Morocco - the first in a series of regional consultations. Work on the charter has, thus far, generated a very positive response from all regions, which underscores the importance of this exercise.

74. In addition, the Centre has, over the past two years, strengthened its collaboration with parliamentarians working on human settlements and housing issues, principally through the Global Parliamentarians on Habitat, as national enabling legislation and the political support of legislators are fundamental prerequisites for the successful implementation of the Habitat Agenda. This collaboration is also described in the note by the secretariat on the activities of the Global Parliamentarians on Habitat (HS/C/17/INF/4).

75. The analysis of inputs from local authorities and their associations, relevant non-governmental organizations and the private sector is an integral part of the work of the Global Urban Observatory, the mechanism established to monitor the implementation of the Habitat Agenda. Information in this area is provided in the report of the Executive Driector on The State of the World's Cities: 1999 (HS/C/17/2/Add.1).

76. In addition, partners' contributions to the Habitat Agenda have been the subject of global meetings of individual partner groups, the most important of which was the Habitat II follow-up conference on the theme: New Partnership for Action, held in Turin in December 1998, which also provided an opportunity for major partner groups (parliamentarians, cities and local authorities, trade unions, non-governmental organizations, researchers and youth) to exchange views on their respective progress in implementing the Habitat Agenda and on a collaborative strategy for the further promotion of the Habitat Agenda's implementation process in partnership with the Centre. This meeting was also organized in response to the Commission's recommendation to accord due recognition and importance to close collaboration between the Centre and universities and research and scientific institutions, including human solidarity and voluntary groups.

77. Commission resolution 16/2 had instructed the Centre to broaden the preparation of thematic discussions in the Commission to local authorities, non-governmental organizations, the private sectors and other partners. In this regard, the Turin partners' conference offered the Centre an opportunity to obtain inputs to the draft paper being prepared for one of the two thematic discussions to be held at the Commission's current session on the local implementation of the Habitat Agenda, with particular attention to local Agenda 21s.

78. Several other inter-sessional activities have been the object of consultations with partners and will be presented at the seventeenth session of the Commission. Among these are the organization of regional meetings on the world charter of local self-government, regional and global meetings of the Global Parliamentarians for Habitat, and meetings to be held in partnership with the International Labour Organization (ILO) for the full involvement of the trade union movement in the implementation of the Habitat Agenda.

79. The substantive participation of partners in the work of the Commission is addressed in resolutions 16/2 and 16/12, which refer, in particular, to the inclusion of partners in official delegations (paragraph 1 of resolution 16/12) and the organization of dialogues with major groups to provide opportunities for partners to engage in dialogue among themselves and with Governments.

80. While implementation of the first recommendation is the responsibility of Member States, the Commission will note that the proposed organization of work for the present session contemplates the holding of three plenary sessions based on the dialogue format successfully used at the Habitat II Conference. During these sessions, the representatives of each group of partners will be given an opportunity to make a presentation, to be followed by an informal discussion with delegations and other partners on the implementation of the Habitat Agenda and cooperation with partners. It is clear that, if the work of the Commission and the Centre is to succeed and if progress in the Habitat Agenda is to be achieved, there must be greater involvement of partners.

81. Apart from the specific partners mentioned above, the Centre has worked to involve youth in the implementation of the Habitat Agenda and to strengthen its relations with youth organizations at all levels. In June 1998, a memorandum of understanding was signed with the secretariat of the Youth For Habitat International Network, which has expanded its reach to more than 300 youth organizations from around the world. With the support of the Centre, the Youth For Habitat International Network organized a large-scale international consultation meeting in Eskisehir, Turkey, in September 1997, where organizational matters related to the operations of the Network and guidelines for its future activities were discussed and formulated. The Centre also actively participated in the Third World Youth Forum of the United Nations system and in the First World Conference of Ministers Responsible for Youth, which took place in Portugal, in August 1998. Activities of the Centre related to youth are being facilitated by financial support from the Government of Turkey.

82. As requested in its resolution 16/20 of 6 May 1997, the Centre and UNEP made substantial progress in strengthening cooperation, due in part to the appointment by the Secretary-General of the Director-General of the United Nations Office at Nairobi and Executive-Director of UNEP as acting Executive Director of UNCHS (Habitat) in July 1998. Substantial advances were made in the joint UNCHS (Habitat)/UNEP Sustainable Cities Programme. UNEP-UNCHS (Habitat) cooperation in the Sustainable Cities Programme also allowed the two organizations to exploit substantial complementarities, with UNEP and UNCHS (Habitat) moving forward on an UNFIP-funded project on improving water management capacity in African cities and river basins. In addition, UNCHS (Habitat) and UNEP recommenced their cooperation in post-disaster rehabilitation and established a joint task force to assist countries in the aftermath of natural disasters in the areas of damage assessment and post-disaster mitigation reconstruction. These countries included Bangladesh, China and Indonesia, as well as those in Central America.

83. Through the joint activities strengthened and initiated over the period, UNCHS (Habitat) and UNEP are moving into a position where they can exploit their respective capacities to the maximum advantage in order to support the efforts of member States, cities and other partners in the field of sustainable development. It is clear, in this context, that the Centre's policy implementation capacities at the regional and national levels can be used by UNEP for its own benefit as well, an advantage which is taken into account in the new organizational structure of UNCHS (Habitat).

84. The focus of resolution 16/21 of 6 May 1997 was on practical mechanisms to be provided to Governments and others to facilitate implementation of the Habitat Agenda; on closer collaboration with research organizations; and on enhanced coordination with organizations of the United Nations system. The Centre responded to that call by providing guidelines for the implementation of the Habitat Agenda to Governments, local authorities and other partners, as well as to the United Nations resident coordinator system, although this has not yet led to an integrated monitoring and implementation system. The Centre's Global Urban Observatory has been at the centre of this effort, through its Urban Indicators and Best Practices and Local Leadership Programmes, as well as in establishing linkages with other centres of excellence and research to monitor the implementation of the Habitat Agenda and urban conditions and trends.

85. In addition, the Dubai International Award for Best Practices in Improving the Living Environment has been established to recognize innovation in the field of urban development and housing and an award ceremony took place in Dubai in October 1998 in conjunction with World Habitat Day. Significant progress has also been made in collaboration with the World Bank, with a joint initiative launched in early 1999. This Cities Initiative includes two components: city development strategies and slum upgrading, and represents the Bank's implementation of its commitments made at Istanbul. At the same time, UNDP and UNCHS (Habitat) are continuing their collaboration in the multi-year Urban Management Programme, with strong support from the British, Netherlands, Swedish and Swiss Governments.

86. There is no doubt that, at this point in its institutional history and development, the Centre is in a critical stage of transition as a result of the revitalization exercise begun in September 1998, resulting in a new strategic focus in its work programme and an organizational structure and methods of work designed to put into practice that focus and new programme of work.

87. Many of the activities of the Centre referred to in this report will in future be given varying degrees of priority and addressed differently. In making such a strategic choice and taking on an advocacy role, the Centre will be taking risks, but such risks are necessary if UNCHS (Habitat) is to make effective use of its limited resources. Decisions have to be made as to what is marginal and what is central to facing the human settlements challenges of the next century - and what can best be done by others. This will also entail some changes in the focus of the Commission, not the least of which is the involvement of local authorities and other partners in its work, as well as the work of the Centre. For the urban transformation which the world is facing requires cooperation and collaboration of an unprecedented scale, if UNCHS (Habitat) is to assume a true leadership role and to become a recognized centre of excellence on shelter and sustainable urban development.

2/    See also the report of the Executive Director on the same subject (HS/C/17/3/Add.1).

3/    This issue is further explored in the report of the Executive Director on the follow-up to the special session of the General Assembly for the purpose of an overall review and appraisal of the implementation of Agenda 21 (HS/C/17/4).

4/    This issue is further explored in the report of the Executive Director on cooperation between UNCHS (Habitat) and UNEP (HS/C/17/10).

5/    See also the report of the Executive Director on cooperation with agencies and organizations within the United Nations system, inter-governmental organizations outside the United Nations system and non-governmental organizations (HS/C/17/11).