1970s
Summary
Economic Planning
Supported by government, the private sector is increasingly relied upon to bridge the gap between housing demand and housing supply. Quasi-public economic instruments such as housing finance authorities are established to facilitate access to mortgage financing.
Global Context
Government As Provider
The “Green Revolution” has the unintended effect of accelerating urbanization. Governments take lead in low-income housing and urban programs with slum upgrading, serviced sites and core houses implemented by state-owned authorities and development banks, but public capacity fails to keep up with need.
Influences
- The Vietnam War ends
- Housing demands outpace supply, leading to housing shortages and squatter settlements
- World Bank increases urban project lending and influences housing and economic planning
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Policies and Programs
- Japan, Korea, Taiwan & Singapore pursue "developmental state" approaches
- Indonesia focuses on providing inexpensive housing for low-income households
- Korea addresses housing shortfalls by encouraging housing production
- China introduces market reforms
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Institutional Roles
- Housing authorities & finance agencies standardize documents and reform land titling, registration, and legal systems
- Thailand creates the National Housing Authority in 1972
- The Grameen Bank is established in Bangladesh
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Methods, Tools, and Practices
- Slum improvement programs
- Indonesia requires luxury developers to develop low cost housing with "1:3:6" rule, and subsidizes affordable housing
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Lessons and Outcomes
- A housing crunch leads to inflation and high interest rates in Korea
- Most people in China are still in work unit housing
- In Japan, the share of new housing loans from private institutions increases from 32% in 1966 to 73% in 1975
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