Abstract
The power of developmental Washington and the neo-liberal consensus
is generally accepted and frequently criticised in academic circles.
How powerful it actually is and how that power is exercised is less
often demonstrated. Based on research on housing subsidy policy
in Chile, Colombia and South Africa and on interviews conducted
in Washington, I will explore the nature of Washington's power.
In broad terms I will argue that in the case of Chile, Colombia
and South Africa, the powerful development institutions of Washington
have a less than impressive record. Without claiming that they are
powerless, the stronger hand appears to lie with the local governments.
Medium sized, middle-income countries with sophisticated officials
have considerable clout in their negotiations with 'developmental'
Washington. Perhaps the situation of highly indebted, smaller and
less sophisticated countries is different, perhaps not?
At the same time, a neo-liberal developmental agenda clearly exists
and operates at a higher level than housing or urban policy. Perhaps,
it is the links between this agenda and urban policy that should
be the main focus of our study? What is this developmental agenda
and how does it impinge on housing and urban policy?
On the other, by adopting a set of macro-economic policies which
were in accord with current orthodoxy, and the reduced housing budget
that this policy implied, perhaps South Africa merely showed that
there are much more powerful hegemonic forces operating than the
World Bank.
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