Introduction

The objective of the following paper is to provide an approach to the analysis of the investment made by the Department of Social and Urban Integration (SISU) of the Ministry of Social Development of Argentina. This work is urgent in a context where President Javier Milei’s statements regarding the end of public social investment, salary cuts, and layoffs authorized by DNU 70/2023, the elimination of public trusts, and proposed changes in funding sources in the so-called “Omnibus Law” threaten the continuity of the Social and urban Integration process in informal settlements throughout the Argentine Republic.

The SISU is responsible for implementing policies to address the housing deficit and the precarious living conditions of nearly 5 million people in over 6,467 informal settlements documented in the ReNaBaP (National Survey of Informal Settlements).

Additionally, it is the outcome of a process characterized by the following:

1. Historical

Until 2016, there was no official and reliable information about the number of informal settlements in Argentina. In that year, the first National Survey of Informal Settlements was conducted, leveraging the efforts of social organizations and the commitment of the national government. From that moment on, a process of strengthening the state’s capabilities to address the deficit in access to land and housing as a structural problem in our country began.

The establishment of the National Registry of Informal Settlements, the enactment of Law 27.453 on Title Regularization, the creation of the Family Housing Certificate, the institution of the Socio-Urban Integration Fund (FISU), and the assumption of Fernanda Miño as Secretary of Socio-Urban Integration, with the daily involvement of residents from informal settlements, were some of the most significant events that allowed the consolidation of this experience.

ReNaBaP Map

2. Fair

The financing for this process came from the Socio-Urban Integration Fund (FISU), two external loans from the Inter-American Development Bank (No. 4804/OC-AR and 5741/OC-AR), and funds allocated from the budget for the Socio-Urban Integration Program (53) of the Ministry of Social Development (referred as ‘Fuente 11’).

The primary source of funding occurred through the FISU, which had a specific allocation of a percentage of the revenue from two taxes: the Solidarity and Extraordinary Contribution (Tax on Large Fortunes) and the Tax for an Inclusive and Solidary Argentina (PAIS).

The first tax established a one-time contribution at a rate of 2% on the assets of individuals who declared more than 200 million pesos (approximately 2.25 million dollars as of December 2020) in the Wealth Tax. At that time, according to AFIP data, it was estimated that the contribution would apply to a potential universe of 9,298 individuals. Meanwhile, the second tax was applied to the purchase of foreign currency, expenses with debit and credit cards in foreign currency, tourist services abroad, among others.

In both cases, it is worthy of mention that these were progressive taxes, applied to the wealthier and higher-income sectors, utilized in this instance to address the precarious living conditions and overcrowding experienced by millions of less privileged individuals in our country.

FISU’s Income

Nominal

Constant Pesos

USD

3. Sustainable

In order to preserve the FISU’s heritage, collaborative efforts were undertaken with ANSES in its capacity as the administrator of the Sustainability Guarantee Fund (FGS) of the Argentine Integrated Pension System. The objective was to establish cooperative actions and assistance in FISU’s participation in Tenders for Treasury Bills and Bonds conducted by the Ministry of Economy.

This collaboration facilitated proper profitability and security in placing surpluses, making a substantial contribution from the FISU to the domestic economy and contributing to the sustainability of the funds.

Total Income

4. Strategic

Following the idea of urban integration promoted by the ‘Curas Villeros’, the primary challenge was to ensure the improvement of the quality of life for those who inhabit it based on the culture of encounter. This approach involves respecting the value of the community’s identity and culture, acknowledging their knowledge, and avoiding solutions based solely on technical expertise that ignores the reality of the neighborhoods. Thus, the formation of the ‘National Assemble of Informal Settlements’, which involves organized residents, community leaders, and activists from neighborhoods across the country, and their development of a Master Plan for Social and Urban Integration, allowed for the creation of a medium and long-term strategy towards the urbanization of all informal settlements.

This Master Plan, grounded in the evidence generated by the urban analysis of the National Survey of Informal Settlements (RENABAP), envisions a 12-year implementation horizon and requires an investment of 27.174 thousands of millions of US dollars.

To achieve this goal, the department demonstrated the ability to build outstanding teams and incorporate technologies that enabled the fulfillment of its objectives. Its members included professionals with expertise in Public Administration, Architecture, Engineering, Law, Communication and Computer, Economics, and Social Sciences. Furthermore, the inclusion of universities and professional associations as external auditors of the projects represented a significant innovation in project monitoring and completion.

  • Integration Projects

Within the framework of social and urban integration management, notable projects include both urban infrastructure developments, prioritizing access to basic services such as water, sewage, and electricity, as well as intra-domiciliary connections to homes. Additionally, improvements to common and green spaces, sports courts, productive areas, and the strengthening of spaces linked to activities in the informal economy are emphasized. The initiative also embraces the construction and installation of urban furniture for public spaces, housing for the relocation of households, and socio-community promotion actions regarding access to health programs and the promotion of health, offering a comprehensive response to COVID-19.

  • Mi Pieza

The ‘Mi Pieza’ (My Room) Program provides subsidies to women in informal settlements with a Family Housing Certificate, aiming to enhance, renovate, and expand their homes. This initiative aims to reduce housing deficits and overcrowding, improve sanitary conditions, and enhance the quality of life for beneficiaries and their families. The proposed works include expansions of living spaces and/or renovations of roofs, walls, floors, openings, interior divisions, plumbing, or electrical systems.

  • Lots of land with public services

This program involves the financing of infrastructure projects to create lots on government-owned or socially owned lands provided with public services. It includes special projects for the construction of single-family permanent residences, land acquisition for the production of new urban areas for low-income families, and initiatives for community repopulation (ARCA), focused on reclaiming land for family and indigenous agriculture in rural areas near cities.

Investment by Program

Nominal

Constant Pesos

USD

5. National

Achieving the effectiveness of this policy required strong participation from provincial and municipal states, within the framework of an unprecedented coordination with popular sectors and organized communities in the territories. The role played by social organizations is noteworthy; through cooperatives and other civil society institutions, they expanded the reach of the policy, whose scale and territorial extension increased significantly. Territorial proximity favored precise planning, swift resolution of issues, early identification of alarms, and the recognition of needs for project modifications.

It is worth noting that, of the more than 300,000 jobs estimated by the department between the ‘Mi Pieza’ program and Integration projects, a majority consisted of residents from these same popular neighborhood’s.

Furthermore, the deparment’s flexibility in adjusting its procedures based on issues arising in contact with the territories, as well as its ability to shake up and transform bureaucratic logics entrenched in the functioning of the state, speaks to a new institutional framework centered on territorial realities and needs.

Reached Neighbourhoods

Mi Pieza

2021

2022

2023

Integration Projects

2021

2022

2023

6. Effective

Observing the progression of the implementation over the months of the deparment’s administration, there is noticeable exponential growth in nominal terms. Additionally, when calculating the currency value in constant terms (both in December ’23 pesos and in dollars), there can be seen an exponential increase during the first year and linear growth in investment in the following two years. This represents a consistent contribution to the development of this public policy, which now involves over a thousand active or completed projects throughout the national territory.

Among other examples illustrating the urgency in implementing SISU policies, remarkable instances include the fast implementation of the National Survey of Informal Settlements. In its first edition, it surveyed all cities nationwide with more than 10 thousand inhabitants in three months. Another example is the ‘Mi Pieza’ program, which took only 40 days from its launch to the date of the first payment to tens of thousands of beneficiaries. On the other hand, the three and a half years it took to execute loan No. 4804/OC-AR with the Inter-American Development Bank can be considered a sign in this regard, unlike the average execution time of similar loans in Latin America, which stands at 7 years.

Evidence of this can also be found in statements such as those of Felipe Vera, a specialist in the Housing and Urban Development Division of the IDB, during the meeting organized by SISU at the Torcuato Di Tella University in late 2023. At that time, he stated, “They are not only changing what they are doing in Argentina, they are changing what is happening in the region because from other places, they ask us what we are doing in the Social and Urban Integration Program to arrive more quickly and more agilely, and to ensure success.”

Cumulative Monthly Investment by Funding Source

Nominal

Constant Pesos

USD

7. Distinguished

The distinguished socio-urban integration process undertaken in recent years has been recognized and acclaimed by numerous national and international institutions for its innovation in the housing and habitat sector.

Awards

In 2023, it won the first prize for Inspiring National Practices in Housing and Habitat against Climate Change at the 5th Latin American and Caribbean Housing and Habitat Forum organized by the Urban Habitat and Housing Practices Platform (UHPH). Additionally, it participated in the Immersive Week of the MECATE Program at Tec de Monterrey in Mexico City.

Academic Studies

In the document titled How do we improve the lives of popular neighborhoods?, officials from the Inter-American Development Bank (IDB) stated that the Social and Urban Integration Program is “crucial for overcoming barriers faced by vulnerable populations and ensuring their access to the goods and services offered by the city.” They emphasized that:

  • The involvement of the beneficiary population throughout the project’s lifecycle generates viability and a sense of belonging, resulting in greater sustainability of interventions. Furthermore, accompanying the design and implementation accelerates the pace of project execution, positively impacting timelines and quality.

  • Early inclusion of projects in the program builds credibility and allows for the development of more complex technical proposals in the meantime.

  • Hiring cooperatives and local residents also contributes to the development of the local economy and fosters a virtuous cycle.

  • Initiatives tailored to each local context promote an increase in the purchasing power of the inhabitants.

In a second document, Analysis of the programmatic offer of the Social and Urban Integration Deparment of the Ministry of Social Development, prepared by CIPPEC and CONICET, it is mentioned that “the social and urban integration of informal settlements is Argentina’s most powerful state policy to overcome structural poverty, highlighted by the degree of consensus reached based on the ratification of the Social and Urban Integration Law and the actions implemented in that framework.” The strengths of SISU are emphasized throughout, such as being “(the) first registry of informal settlements in the country after almost a century of coexistence with the problem of urban informality,” constituting a key management tool for monitoring the department’s actions. They affirm that “to promote the social and urban integration of informal settlements, a multiplicity of programs are adopted in combination in the territories,” and the most interesting cases occur “where different programs can be implemented addressing issues related to services, facilities, housing, and socio-productive integration.”

Last but not the least, it is worth mentioning the work done by the Social Debt Observatory of the Argentine Catholic University (UCA), Study evaluating the first two editions of the ‘Mi Pieza’ program, which indicated that it “mobilized various economic and social resources for the improvement of the beneficiaries’ homes.” Favorable results in terms of structural improvements to the residences, including increased space, enhanced sanitary services, and overall better housing conditions, had a “positive impact on the quality of life of the beneficiaries and their families, covering various aspects such as improved rest, family relationships, safety, and overall well-being.” Finally, it is highlighted that the program “encouraged decision-making by women and their active participation in the projects, strengthening the leading role of women in popular neighborhoods,” as well as the positive impact of “the use of technology applied to the monitoring of social programs.”

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