Capitalist Theory: Neoliberist Approach In Housing

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Neoliberalism theory: Origins Neoliberalism originated in political-economic theories formed, dating back from the late 19th and early 20th centuries, in debates between German and Austrian economists. These arguments were amongst two ideas: one being of promoting capitalist ideologies from the Marxism theory, through reaping benefits for the labour of those who are employees. The other idea, was of promoting the notion of economies to be in equilibrium, motivating self-interest and equality in general through labour division and sharing equitable profits (Peet & Hartwick, 2009). Throughout these debates, it was identified that the policies of capitalist nature were strongly criticised, as they created economic instabilities. However the…show more content…
Self-help housing in developing countries was introduced as a solution to addressing the issue of rapid urbanisation and informal squatter settlements in urban peripheries, particularly the low income earners. This was done through the different modes of housing production. These housing modes or delivery systems a very briefly a process through which the provision of such housing is achieved, which are outlined by Keivani & Werna (2001). These production systems are achieved through a agency-structure model, where the ‘agencies’ are the stakeholders involve in the housing delivery productions. These stakeholders are the government, financiers, land owners, investors, community sector groups and politicians. The ‘structure on the other hand, refers to the socio-political framework which governs the overall process of housing delivery through regulations and policies. This framework also stipulates the roles of the stakeholders involved in the housing production system. Therefore the relation between the agent and the structure is essential in the housing delivery…show more content…
This was evident in South Africa, where the government would identify cheap land which was far-off from the urban settlements, thus ensuring racial segregation. Moreover, this resulted in a tenacious increase in informal settlements in urban peripheries, as low income individuals seek for employment opportunities and access to convenient services (Ntema, 2011). The idea of providing sites and services schemes was also criticised, as it was argued by Ntema (2011) that it mainly targeted the working class, being the middle income earners, who had the means to build their own houses. Low income earners who were unemployed being the majority of the South African population, could not afford to do such. Again, the consequences were the increasing rates of informal settlements as a response to having shelter. Similarly in Zambia, the issue of affordability was prevalent, as there was a shortage of building materials for the core housing and sites and services

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