Asian Housing Finance

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1950s

Summary

Asian Housing Finance - 1950s

Reconstruction

Countries battered by war and disinvestment mobilize resources to rebuild the housing stock. Acute housing shortages and squatter settlements spur the establishment of public funding mechanisms. In some countries, however, industry is favored over housing.

Global Context

Government As Architect

Under the Marshall Plan, Western Allies undertake post WWII reconstruction of Europe with an eye toward economic recovery, while the Soviet Union focuses on centralized planning. New towns dominate the urban development agenda, but are overtaken by unregulated housing built without regard to water, sanitation, and essential services.

Influences

  • World War II and Korean War devastate housing and create refugees
  • Hong Kong's Shek Kim Mei squatter settlement is destroyed by fire in 1953
  • India achieves independence in 1957

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Policies and Programs

  • China establishes work units (danwei) as primary providers of employment, housing and services
  • Korea and China emphasize industrial development strategies rather than housing
  • Housing is a low priority in India after British colonial rule ends

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Institutional Roles

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Methods, Tools, and Practices

  • In Korea, government bonds are issued to finance budget deficits and industrial investments

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Lessons and Outcomes

  • In Japan, banks and other financial agencies have difficulty providing loans through the Government Housing Loan Corporation

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