Housing finance between social needs and economic realities: The dilemma of policy transfer under neo-liberalism.
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Date
2010
Authors
Nubi, T.G.
Oyalowo, B.A.
Journal Title
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Publisher
Housing finance between social needs and economic realities: The dilemma of policy transfer under neo-liberalism | TU Delft Repository.
Abstract
The aim of this paper is to show how the interplay between social needs and economic
realities affects housing policy in developing countries. The paper addresses the very
topical issue of housing finance policy for low-income dwellers in rapidly urbanizing
African countries. The paper locates housing finance firmly within the neo-liberal
development framework being canvassed as the panacea to underdevelopment in
these countries and argues that the dilemma facing governments in the current
economic downturn is manifested in the realities of decreasing productivity,
marginal economic growth, low development and massive urbanization problems
versus low-income housing need within the constraints of a neoliberal macro-economic
policy.
The study adopts a comprehensive content analysis methodology which is based on the
review of literatures, the analysis of media accounts of government activities in the
housing sector and analysis of official government policy statements. This methodology
is applied to housing policy in Nigeria (as a case-study of developing countries) and
Britain (as a case-study of developed countries).
Findings reveal interesting dimensions of change in institutional and political
transformation of housing services in developed and developing countries: while
housing finance reforms are generated within the system in developed countries, it is
led by international institutions such as IMF and World Bank in developing countries.
Thus, while developed countries have responded to the present economic downturn by
adopting ‘more government’: direct injections into the housing finance basket,
developing countries have exhibited a dilemma –seeking to satisfy legitimate, obvious
housing needs and facing the need to conform to neoliberal policies in the hard realities
of low productivity and marginal economic growth. The result has been the adoption of
an ‘enabling’ toga which is overwhelmingly displayed as reduction of fund injection into
low-income housing and a disturbing readiness to appropriate this role to a reluctant
private sector.
The paper concludes that sectorial policy transfers are incapable of meeting
developmental needs when they take place within the context of divergent macroeconomic policies. What is needed therefore are policies that are in tune with local
realities, and are flexible and responsive to change. This is best achieved with homegrown policies. However, governments necessarily operate within a comity of nations
and therefore have to sign on to global agreements. The challenge for governments
here is to localize foreign policies and then mainstream them into indigenous policies and hence ensure that when policy transfer occurs, it is not to the detriment of the
people they are meant to serve.
Description
Scholarly article
Keywords
housing finance , Affordability , Neo-liberalism , Policy , Research Subject Categories::SOCIAL SCIENCES
Citation
Nubi, T.G. & B. Oyalowo (2010) Housing Finance between Social Needs and Economic Realities: the Dilemma of Policy Transfer under Neo-Liberalism Comparative housing research: Approaches and policy challenges in a new international era. To reference this document use: http://resolver.tudelft.nl/uuid:14c63c81-79c3-415f-a4f3-152ff596536b. Available at:https:// repository.tudelft.nl/islandora/object/uuid%3A14c63c81-79c3-415f-a4f3-152ff596536b.