Autoportret HOUSING PROBLEM AFTER 1989

Page 5

Poverty, limited access to vital public services,

Europe and looked at the housing situation on other

1980s, as an area of great potential. With huge resources

and economic inequalities, especially within the

continents, it would turn out that the people of Canada,

in the form of public housing, ranging from 20 per cent

domain of housing, are systemic phenomena:

Kazakhstan, Chile and India would be equally eager to

(in Hungary) to as much as 70 per cent (in Latvia) of

over the last three decades, a decent house

sign the manifesto for housing justice. Seen from this

all available apartments, they constituted the perfect

that would offer adequate conditions of health

perspective, housing problems in Central Europe turn

ground to test new market solutions in practice. The

and hygiene has become a luxury that fewer

out to be not an endemic phenomenon, but a part of

events in the region after 1989 are often interpreted as

and fewer people can afford. The privatization

the global crisis. Former UN Special Rapporteur for the

an obvious continuation of the neoliberal policies devel-

of the current social housing fund, the govern-

right to adequate housing Raquel Rolnik sees this crisis

oping in the West and the inevitable result of geopoliti-

ment’s support almost exclusively for the con-

as “the expression and the result of a long process of

cal changes. We should remember, however, that these

struction of private houses and for real estate

deconstructing housing as a social good and transform-

policies had only been implemented in the West for a

developers, the encouragement of the transfor-

ing it into a commodity and financial asset.”

decade and were still emerging in the process of “chaotic

mation of the living space into an investment for

5

This process is inextricably linked with the expan-

experimentation” at that time.7 Thus, the post-commu-

profit through fiscal measures favourable to this

sion of the reactionary political and economic concept

nist and post-socialist states were not only a place for

aim—all these have led to the current state of

of neoliberalism. Central European countries played

the implementation of ready-made solutions, but also

affairs.1

a special role in the history of commodification and

“an important laboratory for creating a new paradigm

financialization of housing. By looking at this story, we

of housing policies, clearly expressed in the documents

The above quote comes from the Manifest petru drep-

can illuminate both the key features of the neo-liberal

of the World Bank”.8 If we take into account the

tate locativă (Housing Justice Manifesto), published

doctrine and the sources of the housing problems we are

costs of these experiments borne by the inhabitants of

last April by the Romanian network of associations and

currently facing in our region.

the region, we should speak not so much of a laboratory

groups Blocul pentru Locuire (Housing Bloc), fighting for a fair and equitable housing policy in response to the coronavirus pandemic. The latter revealed and

The free market enters people’s homes

as a military training ground. Let us begin with the assessment that had been at the root of all these experiments. In 1993, the World Bank

deepened the scale of the housing crisis in Romania.

The housing sector has played an important role in

published the Housing report. Enabling markets to work.

Data published by the Eurostat show that the country

this story since the birth of the neo-liberal ideology.

Raquel Rolnik compares its effects to releasing the genie

is facing serious problems: in 2018, Romania had the

Generously financed from public funds as part of the

from the bottle. This document, aptly referred to by the

highest share of overcrowded housing among European

post-war welfare policy, for the supporters of free-mar-

Union countries (46 per cent) and severe housing depri-

ket solutions it has become an example of how not to

vation (16 per cent of the population live in overcrowded

organize social policy. From the 1970s, it was targeted

apartments with at least one major disadvantage, e.g.

by ideologists who were convinced that the state should

a leaking roof, no bathroom or toilet, too dark).2 Roma-

drastically reduce its expenses, and withdraw from the

nia also had the highest percentage of people at risk of

position of regulator in various areas of social life. It

poverty and living in overcrowded homes. Having said

was not only about savings for the budget and opening

that, after studying the Eurostat data, we will notice

a source of potential profits for commercial enterprises.

that many countries experience these problems on a

The home was a sphere in which neoliberal doctrine met

similar scale. In terms of overcrowded housing, Latvia,

directly with the personal, everyday experience of indi-

Bulgaria, Croatia and Poland are close behind. The

viduals, and it could serve as a space for transmission

highest rates of severe housing deprivation are recorded

and training of the desired norms and attitudes. As a

in Latvia, Bulgaria, Poland, Hungary and Lithuania. As

result, writes David Harvey, “all forms of social solidar-

in Romania, alarmingly high numbers of people at risk

ity” were to be replaced by beliefs in “individualism,

of poverty live in overcrowded flats in Poland, Slovakia

private property, personal responsibility, and family

and Bulgaria.3

values.”6

It is tempting to interpret these comparisons as

The flagship example of neo-liberal housing pol-

another symptom of the “poverty of small Central and

icy – the “Right to buy” program launched by Margaret

Eastern European countries”, a typically Central Euro-

Thatcher in the early 1980s that allowed council tenants

pean ailment, resulting from the repeatedly described

to buy the flats in which they lived – opened up space

structural backwardness of the entire region. However,

for financial institutions offering mortgage loans, for

when we also take into account other indicators related

private property administrators and commercial con-

to the quality of housing, the picture becomes some-

struction companies, but most of all it made tenants

what more complicated: among the countries with the

aware that the relationship between them and the state

highest financial burden related to the cost of housing

had changed significantly and that from then on, ensur-

(expressed in the number of households that spend

ing proper living conditions for themselves would be

more than 40 per cent of their income on housing),

primarily on them.

Greece is clearly the leader; excessive costs of housing

3

← Ruczaj Estate in Kraków, from the series Self-affirmation

Neoliberal ideologists and economists perceived the

also plague many residents of Great Britain,

countries of Central and Central Eastern Europe, which

Belgium, and Germany.4 If we went beyond

entered the transformation period at the end of the

HOW CENTRAL EUROPE LOST ITS RIGHT TO HOUSING, AND HOW TO GET IT BACK

1

Blocul pentru Locuire, Manifest pentru dreptate locativă. Împotriva pandemiei capitalismului și rasismului, 02.04.2020, https://bloculpentrulocuire.ro/2020/04/02/ manifest-pentru-dreptate-locativa-impotriva-pandemiei-capitalismului-si-rasismului/. English version: Manifesto for Housing Justice: Fighting the Pandemic of Capitalism and Racism, 02.04.2020, https://bloculpentrulocuire. ro/2020/04/02/manifesto-for-housing-justice-fighting-the-pandemic-of-capitalism-and-racism/ (accessed: 15.03.2021). 2 Severe housing deprivation rate, 2017 and 2018 (%), Eurostat, https://ec.europa.eu/ eurostat/statistics-explained/index.php?title=File:Severe_housing_deprivation_rate,_2017_ and_2018_(%25)_SILC20.png (accessed: 15.03.2021). 3 Housing statistics, Eurostat, https://ec.europa. eu/eurostat/statistics-explained/index.php/ Housing_statistics#Tenure_status (accessed: 15.03.2021). 4 Ibid. 5 R. Rolnik, Urban Warfare: Housing Under the Empire of Finance, London–New York: Verso, 2019 (ebook). 6 D. Harvey, A Brief History of Neoliberalism, Oxford: Oxford University Press, 2005, p. 23. 7 Ibid. 8 R. Rolnik, op. cit.


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