Low-income Housing in Latin America and the Caribbean
Housing is one of the most important sectors of the economy -- in developing countries as in richer ones -- with large positive externalities in terms of economic growth, public health and societal stability. It is the primary form of asset accumulation for the poor -- often representing more than 50 percent of the assets of households. However, housing systems in developing countries are dominated by badly designed, poorly targeted, and inefficient government subsidies, market failures in land markets, overwhelming informality, a predominance of powerful vested interests and a growing slum population. This paper addresses the following headings: the housing sector in Latin American countries (LAC); the World Bank Group housing strategy in LAC; and the challenges ahead.