Resource information
This housing policy in developing
countries, conjectures and refutations article discusses
housing policy in developing economies. It examines recent
research findings in light of earlier arguments as to the
benefits of more market-oriented approaches. It also looks
at whether the recommendations of earlier work have been
refuted or developed in subsequent analyses and policy
measures. In particular, it reviews the empirical analysis
of the effects of policy on housing supply, the richer
understanding of the effects that land market regulations
have on housing affordability and the functioning of urban
areas, and the alleged mysterious effects that researchers
claim effective property rights have on housing policy and
on development more generally. It also examines the effects
of the increased emphasis on community participation,
showing how it helps to more fully reconcile the incentives
faced by beneficiaries of housing policy and donors.
Finally, it examines recent literature on the welfare
effects of rent control. The article shows that some of the
conjectures as to the likely benefits of more market-based
policy have been refuted, but large welfare gains for poor
people can still be realized by adapting this approach.
Furthermore, this approach appears to be gaining ground as
the consensus approach to effective housing policy.
