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housing market

Eight stubborn facts about housing policies

Luis Triveno's picture
A low-income residential neighborhood in Mumbai, India. Photo: Simone D. McCourtie / World Bank
As John Adams famously warned, “facts are stubborn things” that we cannot wish away. Governments in the developing world are finally facing up to the increasing need for affordable housing: today 1.2 billion people live in substandard housing; by 2030, 3 billion will need new housing. While challenges may vary by country, I believe there are at least eight “stubborn facts” about housing policy that should not be ignored.

Quote of the Week: Brad Pitt

Sina Odugbemi's picture

Brad Pitt“I get enraged when people start telling other people how to live their lives.”

- Brad Pitt, an American actor and producer. He has received a Golden Globe Award, a Screen Actors Guild Award, and three Academy Award nominations in acting categories, and received three further Academy Award nominations, winning one, as producer under his own company Plan B Entertainment. Most recently, he produced The Big Short (2015), a biographical comedy-drama based on the 2010 non-fiction book of the same name by Michael Lewis about the financial crisis of 2007–2008 that was triggered by the build-up of the housing market and the economic bubble, which garnered a nomination for Best Picture.

Wanted: Your questions on challenges and benefits of living in the city

Huong Lan Vu's picture
Dean Cira will answer some of your questions in a video

Urbanization itself cannot guarantee economic growth, but it does appear to be an inevitable process on the way to development: no country has achieved high income status without first urbanizing, and nearly all countries become at least 50% urbanized before fully reaching middle income status.

The trick is in how to manage this process in a way that plays up the benefits and minimizes the challenges it brings.

When I was a little child, we lived in a 30m2 house in the suburbs of Hanoi, Vietnam, with intermittent supplies of power and clean water. But I enjoyed playing on the quiet and clean street in front of my house. Twenty years later, my whole neighborhood has been nicely renovated; there’s enough electricity to run all appliances in my house, including two air conditioners. But I get stuck in traffic every day on my way to work, and the smog is so thick I can hardly breathe, even with a mask on my face.

Urbanization has arrived to my hometown with both advantages and challenges. However, noises, heavy traffic, and air and water pollution are not unique to Hanoi. They can be observed in many cities in emerging countries all over the world (such as China, India, Brazil, Indonesia, Mexico, the Philippines, or Nigeria). The Vietnam Urbanization Review notes that if these challenges are well managed, they will allow cities like Hanoi to retain its unique charm and livability while enjoying the benefits that urbanization brings.   

Do you have any questions on how to ease traffic congestion? Or dealing with high housing prices in your city? Do you want to share your own experiences? What are your concerns when moving in or out of a city?

Our urban expert, Dean Cira, is here to answer your questions. 

Send your question now using the comment function below to ask him and he’ll address on video five of all the questions received. We’ll take questions until the end of Wednesday, June 20. You can also join the conversation on Twitter by sending your questions to @worldbankasia.

Urban population (% of total)

 

Data from World Bank

China’s economic outlook and policy implications: normalization

Louis Kuijs's picture

(Available in Chinese)

This is the first blog post I write after revisiting China’s recent economic developments, the outlook, and policy implications as part of writing our latest China Quarterly Update. After this general overview I will in a few days write one on some interesting medium term trends on relative prices and the relative importance of external trade in China’s economy (they are also discussed in the Quarterly).

The term “normalization” has been used a lot lately in relation to the composition of growth and macroeconomic policy stance, also in China. But it is hard to avoid it. During 2010, China’s composition of growth started to “normalize”—as in look like it typically does—after the spectacular developments in 2009, when a massive government-led domestic demand surge offset a huge contraction in exports. Later in 2010, the macroeconomic policy stance also started to “normalize”. I guess many of us use the word “normalization” to describe or prescribe a macro policy stance that would be in line with the “normalized” economic outlook, as opposed to a particularly tight stance.