The enabling strategy and its discontent: Low-income housing policies and practices in Asia

Over the past few decades, Asia's urbanization has been driven by rapid economic growth, while also making economic growth possible. These developments have allowed millions of people to escape income poverty and led to the emergence of an expanding middle class. Its ambition for home ownership and its paying capacity, reinforced by a vibrant housing finance sector and supported by enabling housing policies, have motivated private-sector real estate developers to supply housing affordable for large sections of the urban population. This has improved housing conditions in urban areas. However, like elsewhere, free-market economic policies have also resulted in growing income and access inequalities between those with the entrepreneurial spirit, knowledge and skills to seize new economic opportunities, and those who, for various reasons, have not been able to do so. So, despite economic growth, the demand for informal housing has not declined. At the same time, globalization and foreign direct investments have increased development pressure on urban land, as investors see real estate as a safe investment.The housing problems of the urban low-income population cannot be solved unless the urban poor have access to urban land, but this requires urban planning and government intervention in the urban land market. Most governments are unwilling to do this, as it runs counter to their free-market economic policies. Urban planning, within a free-market economy, is critical, not only to address the low-income housing shortage, but also the impacts of climate change, two issues which converge in the future of informal settlements in the disaster-prone coastal areas of the Asia–Pacific region.