In 1991, some of Xalapa's poorest residents aligned with an urban planning group and devised a remarkable plan designed to give them a sense that they belonged to -- and were respected by -- their community.

At the time, 46 percent of the city's population were low-income construction workers, domestics, drivers and street sellers squatting on land on the outskirts of the city of 350,000, 150 miles east of Mexico City.

The land was virtually useless and lacked paved roads, plumbing and electricity. Further, the relationship between the residents and state and city officials verged on hostility.

But some of the residents formed the Union of Tenants and Housing Applicants and worked with the Center of Housing and Urban Studies, a non-governmental organization. Together, they created "Protest with a Proposal," not only bringing their problems to the attention of the authorities, but also offering a number of solutions.

Over the next few years, 50 of the 80 settlements were accepted as viable entities by the authorities. Sanitary facilities units were installed. Some residents were allowed to purchase land on a state reserve and a model house was built as part of a program to teach the residents to help themselves.

Using information from similar programs in India, a savings and loan program was set up and is run by women in the settlements. Central to the progam is a scheme in which residents pool their savings, in turn helping them finance the purchase of new homes.

The "Protest with a Proposal" model, along with information from participatory planning programs in Brazil, has been adopted elsewhere in Mexico including a project in Mexico City.