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DISCLAIMER: This document does not meet current format guidelines Graduate School at the The University of Texas at Austin. of the It has been published for informational use only. Copyright by Yu Chen 2018 The Dissertation Committee for Yu Chen Certifies that this is the approved version of the following Dissertation: Advance in Housing Right or Accumulation by Dispossession? How Social Housing Is Used as Policy Tool to Promote Neoliberal Urban Development in China and in Mexico Committee: Peter M. Ward, Supervisor Bryan R. Roberts, Co-Supervisor Mounira M. Charrad Néstor P. Rodríguez Joshua Eisenman Edith R. Jiménez Huerta Advance in Housing Right or Accumulation by Dispossession? How Social Housing Is Used as Policy Tool to Promote Neoliberal Urban Development in China and in Mexico by Yu Chen Dissertation Presented to the Faculty of the Graduate School of The University of Texas at Austin in Partial Fulfillment of the Requirements for the Degree of Doctor of Philosophy The University of Texas at Austin December 2018 Acknowledgements I would like to express my deepest gratitude to my committee chairs, Dr. Peter M. Ward and Dr. Bryan R. Roberts, for their constant support and intellectual guidance. Their commitment to research and scholarship have inspired me throughout my graduate career. They have been such wonderful and dedicated mentors, and I cannot thank them enough for nurturing my academic enthusiasm. I would like to thank my committee members, Dr. Mounira M. Charrad, Dr. Néstor P. Rodríguez and Dr. Joshua Eisenman, for their extensive help in my dissertation research and writing. Their comments and feedbacks on my dissertation also motivated me to envision future research projects. I am hugely indebted to Dr. Edith R. Jiménez Huerta, also my committee member, for her tremendous support during and after my field research in Guadalajara. I learned so much from our academic conversations, as well as the numerous field trips we did together. I would like to extend thanks to all my friends who have supported my dissertation research, whether in China, in Mexico, or in the United States. Without their support, this research project would have been impossible. Special thanks goes to my amistades and adoptive families in Tlajomulco. They not only warmly received me with open arms when I arrived as an outsider and painted a giant mural of my face at the entrance of the neighborhood before I returned to school; they have also taught me the spirit of struggle for the common good. Finally, I am grateful to my family, whose love and unconditional support is with me whatever I pursue and wherever I travel to. I would like to dedicate this dissertation to my grandparents, Yang Shanle and Bi Kechang, and my parents, Chen Guirong and Yang Jingli. Abstract Advance in Housing Right or Accumulation by Dispossession? How Social Housing Is Used as Policy Tool to Promote Neoliberal Urban Development in China and in Mexico Yu Chen, Ph.D. The University of Texas at Austin, 2018 Supervisors: Peter M. Ward, Bryan R. Roberts Social housing is defined as the housing production supported by the public sector with the purpose of improving housing access and condition for low-income urban population. This dissertation discusses the social housing boom in China and in Mexico in 2000s and 2010s. I ask what motivates the governmental agenda to make and implement social policy for low-income populations in these two developing countries with very different political economies. Drawing on mixed-methods, this dissertation undertakes three levels of comparison. At the national level, social housing develops through different approaches in the two countries: a government-centered approach in China, and a market- centered approach in Mexico. The variations in these approaches are the result of the existing housing regime when the neoliberal transformation of housing and urban policy started in these two countries in the 1980s and 1990s. At the local level, local governments’ different roles in social housing development reflect their different urban agendas, which can be further attributed to the political and the land regimes in the two countries. Yet a common denominator of the two cases is the close alliance between the local governments vi with developers. Finally, at the community and household level, I argue that social housing in China and in Mexico does not represent an advance in housing rights for the low-income urban population, but rather a wave of accumulation by dispossession. I conclude that, in contrast to the post-war social housing development in advanced industrialized countries, in which the State acts as a force of de-commodification and social provider of essential services, social housing in China and in Mexico is used as a tool for the expansion of real estate and financial capital towards the urban low-income population. This leads us to rethink the nature of social policy in the neoliberal era: disguised as a form of “welfare”, it is used as a tool and venue to facilitate the advance of neoliberal projects such as financialization towards vulnerable social groups. vii Table of Contents List of Tables ................................................................................................................... xiii List of Figures ...................................................................................................................xv List of Illustrations ........................................................................................................ xviii Chapter 1: Introduction: Social Housing and a Tale of Two Polities .................................1 1.1. Background and Research Questions ..................................................................2 1.2. Literature Review: Housing as a Commodity and a Right ..........................................6 1.3. Research Methods: A Comparative Case Study ........................................................9 1.4. Chapter Organization and Dissertation Structure .....................................................19 Chapter 2: Housing Policy in China: 1950-2015 ..............................................................22 2.1. Housing Policy under the Planned Economy (1949-1979) ...............................23 2.1.1. Expropriation of Private Rental Housing ...........................................25 2.1.2. Self-Built Dwellings and Slum Upgrading ........................................27 2.1.3. Government-Led Housing Construction .............................................29 2.2. Housing Reform during the 1980s and 1990s ...................................................34 2.3. Completing the Housing Reform: 1998-2003 ..................................................40 2.3.1. The Hegemony of Commercial Housing and the Residualization of Social Housing: 1998-2003 ...............................................................41 2.2.2. Housing Reform Embedded in Broad Social Changes ......................46 2.3.3. Consequences of the Housing Reform ...............................................48 2.4. Current Housing Policies ..................................................................................51 2.4.1. Government Intervention in Commercial Housing Market ...............51 2.4.2. Housing Provident Fund ....................................................................54 2.4.3. Social Housing Development ............................................................55 viii 2.5. Conclusions .......................................................................................................57 Chapter 3: Housing Policy in Mexico: 1950-2015 ...........................................................59 3.1. 1950- 1972: Housing Policy as a Tool of Political Corporatism .......................62 3.1.1. Selective Rent Control ........................................................................63 3.1.2. Government-Supported Housing Production ...........................................64 3.1.3. Policy Regarding Self-Built Settlements .................................................67 3.2. 1972-1992: The Consolidation and Crisis of Political Corporatism ................69 3.2.1. Housing Policy under “Shared Development” in the 1970s: The Creation of INFONAVIT .......................................................................70 3.2.2. The INFONAVIT ..............................................................................73 3.2.3. The Crisis of Political and Social Pact in 1980s ................................76 3.3. Housing Policy in Mexico: 1992-2015 ..............................................................80 3.3.1. The Context of the 1990s ...................................................................80 3.3.2. Market-Oriented Housing Reform in Mexico: 1990s and 2000s ......82 3.3.3. The Reform of INFONAVIT and the Scale of the Social Housing Boom ......................................................................................................89 3.4. A Comparison of China and Mexico .................................................................93 3.4.1. Housing Policy, State Formation and State-Led Industrialization ....93 3.4.2. Housing Policy Reform in the Neoliberal Era: A Comparative Perspective (1980s-2000s) .....................................................................96 3.4.3. Different Approaches to Social Housing Development in China and in Mexico: An Explanation .............................................................98 3.5. Conclusions ......................................................................................................100