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Housing as a Tool of Economic Development since 1929

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  • GODWIN ARKU
  • RICHARD HARRIS

Abstract

Housing policy in the developing world has usually been shaped by social and political considerations, yet housing can also be used to promote economic development. From the 1930s to the 1950s, it was increasingly deployed for this purpose by the agencies of colonial powers, including Britain and France; by the United States in Puerto Rico; and by the US Agency for International Development and the Inter‐American Development Bank in Latin America. By the mid‐1960s, the UN and affiliated agencies, notably the International Labour Office, had a keen and broad appreciation of its significance for economic policy. This understanding was temporarily swamped by rising social concerns and then sidelined when the World Bank began to support sites‐and‐services schemes in the 1970s. It reasserted itself in the 1980s in the form of ‘market enabling’ strategies which, however, too often became an excuse for inaction. This history underlines the importance of paying attention to the potential role of housing as a tool of economic development. Dans le monde en développement, la configuration de la politique du logement tient généralement à des aspects sociaux et politiques, alors que le logement peut aussi servir à promouvoir l’expansion économique. Des années 1930 à 1950, c’est dans ce but qu’elle a été mise en œuvre par les organes des puissances coloniales, dont la Grande‐Bretagne et la France, par les États‐Unis à Puerto Rico, ainsi que par l’agence de développement international des États‐Unis (USAID) et la Banque interaméricaine de développement en Amérique latine. Au milieu des années 1960, l’ONU et ses agences, notamment le Bureau International du Travail, ont émis un avis général tranché quant à son importance en politique économique. Cette idée a été temporairement submergée par l’apparition de problèmes sociaux, puis mise sur la touche lorsque la Banque mondiale a soutenu les projets Sites et services dans les années 1970. Elle s’est réimplantée dans les années 1980 sous la forme de stratégies de stimulation de marché qui, toutefois, ont trop souvent servi d’excuse au manque d’action. Cet historique souligne l’intérêt à accorder au rôle potentiel du logement en tant qu’outil de développement économique.

Suggested Citation

  • Godwin Arku & Richard Harris, 2005. "Housing as a Tool of Economic Development since 1929," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 29(4), pages 895-915, December.
  • Handle: RePEc:bla:ijurrs:v:29:y:2005:i:4:p:895-915
    DOI: 10.1111/j.1468-2427.2005.00627.x
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    Cited by:

    1. Jayaraman, Praveena & Gebremedhin, Tesfa G., 2013. "A Non-Spatial Analysis of the Role of Residential Real Estate Investment in the Economic Development of the Northeast Region of the United States," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 143107, Southern Agricultural Economics Association.
    2. Monica Palma & Claudia Cappello & Sandra De Iaco & Daniela Pellegrino, 2019. "The residential real estate market in Italy: a spatio-temporal analysis," Quality & Quantity: International Journal of Methodology, Springer, vol. 53(5), pages 2451-2472, September.
    3. Masron, tajul & Mohd Nor, Abu Hassan Shaari, 2016. "Foreign Investment in Real Estate and Housing Affordability," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 50(1), pages 15-28.
    4. Jie Chen & Feng Guo & Aiyong Zhu, 2011. "The Housing-led Growth Hypothesis Revisited," Urban Studies, Urban Studies Journal Limited, vol. 48(10), pages 2049-2067, August.

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