Balancing Perceptions on Financialization of Housing
In a statement on the financialization of housing in March 2017, Leilani Farha, the special rapporteur on adequate housing, expressed her deep sentiment about human rights. Farha mentioned that the valuation of housing as a commodity rather than a place where humans should reside left a grave impact on the disregard for fundamental human rights. As a result, there have been more reports of homelessness, and they have increased in direct correlation with housing costs.
As someone who lived in a third-world country, I felt the empathy of the rapporteur towards the escaping dignity of human rights. The marginalization in the community has been an everyday sight in our country. Spiking housing costs in urban areas and the acquisition of sizable tracts of land by private organizations uprooted informal settlers, leaving many of them homeless. While their displacements are disheartening, I cannot fully be in sympathy when other factors are considered. For instance, even when the relocation was announced beforehand and the new location was prepared for the people, some of them continue to vehemently object and refuse to move. On the other hand, private organizations overly capitalize on the populace, which is also a worrying aspect.
The financialization of housing proved that it helps the economy of a country in a drastic manner, but it also hurts the rights of human beings. Increasing housing costs somehow rob people of their right to shelter, which is regarded as a basic need. Consequently, there are implicit pros and cons in the financialization of housing, and both sides have their own importance.
According to Dr. Shiller, he believes that “Financial innovation is a pillar of our civilization.” Meanwhile, this does not happen instantaneously. It takes time and is usually slow because people are resistant to change. The causes of new discoveries and innovations that improve our lives are actually found in the events that take place daily. Take for example the pioneering of insurance. The people did not dive into it instantly, but somehow they gradually came to appreciate its significance. For that reason, thinking of an approach to the financialization of housing without compromising human rights could go a long way.
The New Urban Agenda, according to Fahra, focuses on how to create sustainable metropolitan developments. It takes into account the basic human rights in urban planning. On the other hand, the financial industry could also find methods to make a profit while carefully considering how to respect human rights. Now that the advantages and disadvantages have already been recognized and people have a better grasp of the situation, it is not impossible to develop a good strategic plan. This can be achieved by imposing regulations. Dr. Shiller mentioned that the goal of regulation is to take care of human problems, manipulation, and deception. All of these issues circumscribe the financialization of housing. Thus, implementing regulations that are beneficial for both parties should be obtained. It might be difficult and slow, but people could eventually adapt if the change is for the better.
Resources:
New urban agenda: H III: Habitat III: Quito 17–20 October 2016. (2017). Nairobi: United Nations.
Shiller, R. (n.d.). Financial Markets. Retrieved June 23, 2020.
Statement by the Special Rapporteur on the right to adequate housing, Leilani Farha, during the Interactive Dialogue at the Human Rights Council. (2017). Retrieved June 23, 2020, from https://www.ohchr.org/en/NewsEvents/Pages/DisplayNews.aspx?NewsID=21264
