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Background:
The privatization of habitat is often linked to the larger issue of Neo-Liberal Economic Globalization.  As part of decentralization of National governments, once publicly provided housing programs are being sold or transferred to private bodies.  The competition in the private market does not always equal a more efficient or fair environment for one’s right to housing.  In fact, the privatization of habitat creates greater instability for low income citizens – especially those living in rapidly urbanizing areas. Consequently, governments are faced with the often insurmountable problem of providing enough services to negate basic human rights violations.  This negative housing environment affects the society at large – making the capacity for improved, sustainable living conditions less attainable.

Governments Lose:
The government privatization of social housing creates grave housing problems. The processes of globalization and neo-liberal economic practices makes even more difficult the already challenging fight for the right to housing that millions of low income tenants make on a daily basis. By moving the management of low income housing to the private sector, governments lose influence on the housing market and also lose the ability to provide housing.  In general, by allowing the privatization of habitat, states lose the capacity to ensure basic human rights for their citizens.

Human Rights are Threatened:
Urbanization is a powerful and inevitable part of a globalizing world with millions of urban citizens constantly vying for a place to live in dignity.  Amongst the movement of people to the city the right to housing gains importance in the face of a privatized housing market by making the rights – supposedly guaranteed to the citizen by the state – harder to exercise.  As party to the ICESCR (International Covenant on Economic, Social, Cultural Rights), governments make a commitment to provide certain fundamental rights to every citizen. 

However, the privatization of housing threatens individuals’ right to:

  • Descent living conditions
  • Employment opportunities
  • Adequate housing
  • Continuous improvement of living conditions
  • Social Securities (ICESCR 1976: Art. 11.1)

As a result of all of these trends, the cost of social stratifications and segregations accompanying neo-liberal privatization practices must be solved through holistic, innovative, people-centered campaigns. 

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International NGOs, International Finance Institutions.... whose agenda is it? Reflections of an Activist.
 
(ENG) Behind the Buyouts - Inside the World of Private Equities
This is an excellent analysis of Private Equity Funds, by a major US trade union, the Service Employees International Union. While not specific to housing/land investment, the article provides a good introduction and background on this new form of global speculative investment, which is playing a rapidly growing role buying up large stocks of social housing in Germany and the USA.
 

     

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