MAY 6, 2015

President Bachelet receives “Land Policy for Social Integration” report from National Council for Urban Development

The report proposes a series of reforms to tackle the urban segregation of the most vulnerable groups; inequalities in urban living standards within towns and cities caused by income differences; and land speculation which has led to price distortions, land scarcity and increased pressure on public infrastructure.

At an event at La Moneda Palace this morning, the President of Chile, Michelle Bachelet, received the “Land Policy for Social Integration” report from the National Council for Urban Development (Consejo Nacional de Desarrollo Urbano, or CNDU).

The CNDU was established on April 8, 2014 as a permanent public entity in the area of urban policy and is chaired by Eduardo Bresciani, an architect from the Universidad Católica. Its mission is to analyze urban development policies, review Chilean laws related to urban development and land use and propose relevant reforms and improvements. In the State of the Nation address on May 21 of last year, President Bachelet commissioned the CNDU to propose reforms to land policy that would guarantee social integration and prioritize social outcomes before private concerns.

In her speech, the President highlighted the importance of the report: “We know that the configuration of cities and neighborhoods, the distribution of public services, the planning and operation of transport systems and the availability of sites for building housing are a fundamental part of making equality and justice a tangible reality.” She added, “The nation’s development needs to be reflected in our urban development, by eliminating discrimination and marginalization in cities; by creating decent homes and neighborhoods for everyone that are integrated into urban centers, with better public services, green spaces where children can play, efficient transport systems and greater security for local residents.”

The CNDU report provides a comprehensive review of the key reforms needed to resolve three major problems: urban segregation of the most vulnerable groups and its impact on social exclusion, violence and stigmatization; inequalities in urban living standards within towns and cities due to the uneven distribution of public resources; and land speculation, which not only results in problems of urban equality and transparency but also leads to price distortions, land scarcity and increased demands on public infrastructure.

Referring to this last point, President Bachelet stated that “Chile urgently requires clear and transparent rules on urban land use. We know that changes to land use, in line with local municipal regulations, often lead to speculation, price variations and profits for a select few. And this is something that the vast majority of Chileans find ethically reproachable.”

In this respect, President Bachelet announced that specific actions will be taken for sites that are prone to speculation by property developers, in line with proposals recommended by the Presidential Advisory Council chaired by Eduardo Engel. “We do not want a situation where these investments become an opportunity for eventual speculation or profit by a minority rather than benefitting the residents who use these areas. Therefore, our immediate priority is to establish measures to rectify this distortion and create an appropriate institutional framework to ensure that these measures are enforced and updated on a permanent basis,” she emphasized.

The CNDU report also proposes the creation of decentralized Regional Offices for Urban Development (Servicios Regionales de Desarrollo Urbano, or SRDU). These offices would be responsible for developing public projects and investment plans and managing land use and public-private partnerships. They would also oversee increased public investment in urban revitalization plans and projects, giving priority to emblematic infrastructure projects and public spaces that improve urban equality and social integration.

The report also addresses the role of civil society and regulations to ensure civic participation at all stages of urban and land development. It includes financing the training of community leaders; providing technical support to community organizations; and ensuring the participation of community organizations, NGOs, foundations, housing cooperatives, co-owned social housing associations and resident organizations in the development of housing and neighborhood projects and plans.

In her concluding remarks, President Bachelet stated, “I will study this report carefully, as it contains measures that echo what we have been proposing since the start of my administration, and I hope that we can announce many of these measures by May 21 at the latest.”