THIS IS ONE of a number of publications resulting from a research project on Urban Poverty and Social Policy in the Context of Adjustment undertaken by the Urban Development Division of the World Bank. The case study in Manila was part of a four-city comparative project in countries experiencing economic difficulties in the 1980s; the others were in Lusaka (Zambia), Guayaquil (Ecuador) and Budapest (Hungary).

In the Executive Summary, the authors explain how an increased attention to poverty reduction requires a greater understanding of how the poor respond to economic crises, so that external interventions by governments and international agencies aimed at reducing poverty complement peoples' own inventive solutions rather than substitute for or block them. The paper then presents the main findings from the community of Commonwealth in Manila, exploring how poor households have responded to changes in economic circumstances by way of adjustment to a deteriorating situation, and what strategies have been adopted to limit the impact of shocks and to generate additional resources. It also considers the constraints that impede their actions. The study takes a micro-level approach, combining households and communities as the main units of analysis.

The authors first outline the main findings of the project as a whole and describe the use of a vulnerability matrix in their analytical framework as a tool for moving strategies away from ideological and towards practical approaches to strengthening the assets of the poor. Assets for poor households are identified as labour (including women's and children's), social and economic infrastructure, housing, household and familial relations (often associated with inequalities), and social capital. Priorities for action are outlined and acknowledgement is made of the limits to micro-level analysis and of the number of issues concerning links between local communities and the broader economy which need further research.

Chapter 1 distinguishes between poverty and vulnerability and assesses vulnerability in association with asset ownership and coping strategies. It also traces the economic development of the Philippines during the 1970s and 1980s and explains the criteria used for choosing Commonwealth as a research community. Chapter 2 presents an economic, social and demographic profile of Commonwealth in 1992, including poverty levels and household size. It also discusses the changing characteristics of income and expenditure and how poor households' expenditure patterns respond to economic changes. Other strategies the urban poor use to reduce vulnerability during economic stress are also described and the authors note the need to be aware of a number of complex interrelated factors affecting the assets of the poor.

Chapter 3 considers labour as an asset, with the authors outlining the trends of intensifying mobilization of the female labour force and diversification through male international labour migration. The nature of urban employment in the community is discussed within the context of changes between 1988 and 1992, and the expanding informal sector is examined as to whether it is merely enabling households to stay out of poverty or whether it is reducing vulnerability in the long term. Chapter 4 discusses infrastructure as an asset within the trends of improved access to infrastructure but of declining quality by way of private initiatives. The changes in public expenditure at a national level are also outlined, as are the effects these have had on the changing infrastructure of Commonwealth. Trends in economic and social infrastructure are explored, including the question of whether the poor pay more with regard to their access to services.

Housing is discussed in Chapter 5, with the authors outlining the wider trends in housing provision and land supply before examining the nature of consolidation and the productive use of housing in Commonwealth. Chapter 6 discuss