Glasgow Theses Service http://theses.gla.ac.uk/ theses@gla.ac.uk Hernandez Velasco, Carlos Roberto (2014) The role of land tenure in housing the urban poor in Mexico. PhD thesis. http://theses.gla.ac.uk/5483/ Copyright and moral rights for this thesis are retained by the author A copy can be downloaded for personal non-commercial research or study, without prior permission or charge This thesis cannot be reproduced or quoted extensively from without first obtaining permission in writing from the Author The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the Author When referring to this work, full bibliographic details including the author, title, awarding institution and date of the thesis must be given 1 THE ROLE OF LAND TENURE IN HOUSING THE URBAN POOR IN MEXICO Carlos Roberto Hernández Velasco Submitted for the degree of Doctor of Philosophy in Urban Studies School of Social and Political Sciences University of Glasgow June 2013 © Carlos Roberto Hernández Velasco, 2013 2 ABSTRACT. This dissertation addresses critically the role that land tenure plays in housing the poor in rapidly urbanising medium–sized cities in the Global South and in particular, Aguascalientes, Mexico, a city with one of the highest growth rates in the country. Urban sprawl, industrial development, and the increasing impoverished population in these sorts of cities are key variables that demand the attention of scholars and policy makers who have traditionally focused on the largest Mexican cities, i.e., Mexico City, Monterrey, and Guadalajara. The urban poor struggle to achieve consolidated housing by means of creative agency strategies operating within restrictive environments, or structures. Thus, this study engages with the implications of poverty, informality, and security of tenure as the starting points to understand the problems of housing the poor. Their experiences and voice were incorporated by following a behavioural approach and contesting the arguments that assert the need for a Western–like legal land and housing system as the only path for such cities to overcome poverty as promoted by influential international bodies. In order to gain the in–depth knowledge required for this research, a qualitative case study methodology was employed, interviewing formal and informal poor settlers, policy makers, and experts. The results showed that more questions are raised by the structure than by the agency strategies utilised by the urban poor, as the latter proved to be more part of the solution than of the problem. Besides the evident overlapping of formal and informal housing mechanisms, institutions must learn from their experiences. Approaching the role played by land tenure in home choices from a behavioural approach enriched this research by assessing it from the perspectives of the main actors involved in the process. It helped understand the problem from a perspective that is rich in experience as settlers provided an honest insight into their problems within the sampled areas by incorporating their voice into the housing equation. Yet, there was still an evident mismatch between the settlers’ and public bodies’ approaches to housing that will probably endure for some time. 3 ACKNOWLEDGEMENTS. I would like to express my deepest gratitude to my supervisors Stella Lowder and Kenneth Gibb for your time, support, patience, and guidance throughout all these years. I have no words to thank you for all your help. I acknowledge the financial support of CONACyT, particularly in the award of the scholarship that allowed me to finance my studies. I also acknowledge the complementary financial support of CONCyTEA and the Tecnológico de Monterrey. I also thank Florentino Reyes and Miguel Andrea for their generous support as well. My deepest thanks go to my dearest friends Lidia, Duncan, and little Sophie who helped me finish my studies. You are my Scottish family and I will be always thankful with you. Special thanks also go to my colleagues and friends Danny (†), Flavia, Jennifer, Joaquim, Marcia, Min Ah, Naofumi, Masayoshi, Melville, Mary, and Moses in Glasgow. I also want to thank to my friends Claudia, Gustavo, Mi Laura, and Mi Luis in Aguascalientes. My sincerest thanks go to Lula and Fernando, who have been always there, no matter what. My deepest appreciation goes to the people I visited during the fieldwork. They shared part of their valuable experiences and knowledge and, at the same time, their expectations with me. They were the most valuable sources of information throughout the study. I learnt many things by listening to their voice. Jenny, my lovely wife, I highly appreciate your invaluable contribution and unequivocal support and patience through all these years. You helped me keep all the pieces together during the most difficult times. Finally, to Solangie and Daniel goes my greatest gratitude. You kept me asking when I was going to finish “this book”. Now, I hope that you actually read it and, most importantly, write your own “books” with the stories you want. You are always there for me without any doubts. I love you so much. 4 TABLE OF CONTENT. ABSTRACT. 2 ACKNOWLEDGEMENTS. 3 TABLE OF FIGURES. 7 DECLARATION 11 CHAPTER I. INTRODUCTION. 12 1.1. The challenge of housing the urban poor. 12 1.2. Rationale of the study. 17 1.3. Aim and objectives of the research. 20 1.4. Thesis structure. 20 CHAPTER 2. THE DEBATE ON LAND TENURE AND ITS BENEFITS. 23 2.1. Introduction. 23 2.2. A rapid urbanisation process in the South. 24 2.3. The implications of defining poverty. 27 2.4. Alternative paths to housing the poor. 31 2.4.1. State investment programmes. 31 2.4.2. The formal financial sector. 34 2.4.3. Self–help housing. 37 2.4.4. Microfinance institutions. 40 2.5. The formal/informal dichotomy. 42 2.6. Official attitudes towards informality. 49 2.7. The debate on the benefits of land titling 52 2.8. Transaction costs and property rights. 58 2.9. Credit and savings. 63 2.10. Taxation and mobility. 66 2.11. Conclusions. 68 CHAPTER 3. LAND FOR THE URBAN POOR IN MEXICO. 71 3.1. Introduction. 71 3.2. Ejidos, their role in housing the poor. 71 3.3. Land and urban development policies in Mexico. 74 3.4. The process of land and housing for the urban poor in Mexico. 79 3.5. Poor’s housing promoted by the State. 86 3.6. The formal financial sector. 88 5 3.7. Self–help housing. 93 3.8. Microfinance institutions as financial sources for the poor. 98 3.9. Conclusions. 100 CHAPTER 4. METHODOLOGY. 102 4.1. Introduction. 102 4.2. Perceptions and interpretations of housing, and decision making. 102 4.3. Choices in the housing process. 106 4.4. The methodological framework. 112 4.5. The case study design. 114 4.6. Secondary sources. 115 4.7. Primary data collection. 116 4.8. The City of Aguascalientes, Mexico, as a case study. 118 4.9. Housing the urban poor in Aguascalientes. 121 4.10. The sampling process. 125 4.11. The schedules and the analysis of results. 155 4.12. The researcher and the case study 157 4.13. Conclusions. 158 CHAPTER 5. THE URBAN POOR AND THEIR EFFORTS TO ACQUIRE PERMANENT HOUSING. 160 5.1. Introduction. 160 5.2. Leaving the parental/previous home. 160 5.3. Searching for a new place to live. 165 5.4. Choosing the place to live. 170 5.5. The arrival at the new place. 182 5.6. Drivers for home improvements. 186 5.7. Conclusions. 197 CHAPTER 6. THE CONTRIBUTION OF SECURITY TO INFORMAL HOUSE CONSTRUCTION. 199 6.1. Introduction. 199 6.2. The evolution of security of tenure. 199 6.3. Transactions and security of tenure. 203 6.4. Structure and agency. 205 6.5. Investment and security of tenure. 209 6.6. Regularisation and security of tenure. 212 6.7. Risk and security of tenure. 223 6 6.8. Conclusions. 224 CHAPTER 7. LAND TENURE AND FORMAL HOUSING. 226 7.1. Introduction. 226 7.2. Agency and structure. 227 7.3. Transactions and security of tenure. 230 7.4. Living in a formal housing development. 235 7.5. The perceived security of tenure in formal settlements. 239 7.6. The role of local authorities in housing the poor. 241 7.7. Reflecting on the efficacy/obstacles of the existing structures. 249 7.8. Conclusions. 254 CHAPTER 8. CONCLUSIONS. 257 8.1. Introduction. 257 8.2. The aim, objectives, and methods of the research. 257 8.3. Key findings. 258 8.4. Reflections. 263 APPENDIX NO.1. COMPARISON OF POVERTY APPROACHES. 291 APPENDIX NO. 2. MICROFINANCE INSTITUTIONS REVIEW. 293 APPENDIX NO 3. INTERVIEWS. 295 APPENDIX NO.4. ACRONYMS. 299 APPENDIX NO. 5. SPANISH TRANSLATION OF QUOTES. 300 7 TABLE OF FIGURES. Figure No. 1. Location of Aguascalientes City in Mexico. 19 Figure No. 2. Selected demographic indicators. 25 Figure No. 3. People living on less than $1.25 US a day (percentage). 26 Figure No. 4. The basic capabilities lists. 29 Figure No. 5. Selected public housing programmes. 33 Figure No. 6. Phases in formal and informal housing processes. 38 Figure No. 7. Arguments and counter arguments to De Soto’s ideas. 57 Figure No. 8. National Urban System: Cities and Population by Type, 2010. 78 Figure No. 9. Unemployment rates in Mexico (2001–2011). 81 Figure No. 10. Informal workers from the EAP in Mexico (2000–2012). 82 Figure No. 11. Earners by income levels in Mexico (2000– 2012) (%). 83 Figure No. 12. Municipalities by minimum wage zones. 83 Figure No. 13. Minimum wages in Mexico by zones (pesos per day). 84 Figure No. 14. Inflation VS. minimum wages evolution in Mexico (1993-2012). 85 Figure No. 15. Main formal housing sources in Mexico (1973–2011). 87 Figure No. 16. Housing loans by banks in selected years in Mexico. 89 Figure No. 17. Screen from the Banamex Credit Simulator. 90 Figure No. 18. Screen from the HSBC Credit Simulator. 91 Figure No. 19. Screen from the Santander Bank Credit Simulator. 92 Figure No. 20. A typical shack in an informal settlement in Mexico. 97 Figure No. 21. A house in the process of consolidation process. 98 Figure No. 22. The five largest MFIs in Mexico (2011). 99 Figure No. 23. Housing MF products in the two largest MFI’s in Mexico. 100 Figure No. 24. The Human–Environment Behavioural Interface. 108 Figure No. 25. The Rossi Model summary. 109 Figure No. 26. Stressors, stress, and stress reactions. 110 Figure No. 27. A Shelter Process Framework. 113 Figure No. 28. Population evolution. 120 Figure No. 29. Housing stock evolution. 120 Figure No. 30. Employment by sectors in Aguascalientes. 120 Figure No.31. Selected economic indices for the City of Aguascalientes. 121 Figure No. 32. Mortgages in Aguascalientes, 1973–2011 (%). 122 8 Figure No. 33. Ejido land share in the City of Aguascalientes. 124 Figure No. 34. Informal sales openly promoted along the roads; it says: “cheap plots for sale in this zone”. 125 Figure No. 35. Housing settlements visited during the fieldwork. 126 Figure No. 36. Selected characteristics of the areas visited. 126 Figure No. 37. Location of visited fieldwork areas in Aguascalientes. 128 Figure No. 38. Basic information of Los Pocitos. 129 Figure No. 39. Los Pocitos in different years (Google Maps: 2013). 130 Figure No. 40. Basic information of El Rocío. 131 Figure No. 41. El Rocío in different years (Google Maps: 2013). 132 Figure No. 42. Basic information of Paso Hondo. 133 Figure No. 43. Paso Hondo in different years (Google Maps: 2013). 134 Figure No. 44. Basic information of Cumbres III. 135 Figure No. 45. Cumbres III in different years (Google Maps: 2013). 136 Figure No. 46. Basic information of Jaltomate. 137 Figure No. 47. Jaltomate in different years (Google Maps: 2013). 138 Figure No. 48. Basic information of Los Caños. 139 Figure No. 49. Los Caños in different years (Google Maps: 2013). 140 Figure No. 50. Basic information of El Soyatal. 141 Figure No. 51. El Soyatal in different years (Google Maps: 2013). 142 Figure No. 52. Basic information of Guadalupe Peralta. 143 Figure No. 53. Guadalupe Peralta in different years (Google Maps: 2013). 144 Figure No. 54. Basic information of Valle de los Cactus. 145 Figure No. 55. Valle de los Cactus in different years (Google Maps: 2013). 146 Figure No. 56. Basic information of Palomino Dena. 147 Figure No. 57. Palomino Dena in different years (Google Maps: 2013). 148 Figure No. 58. Basic information of Ojocaliente. 149 Figure No. 59. Ojocaliente in different years (Google Maps: 2013). 150 Figure No. 60. Basic information of Morelos. 151 Figure No. 61. Morelos in different years (Google Maps: 2013). 152 Figure No. 62. Key informants interviewed. 153 Figure No. 63. A general view of Cumbres III . 167 Figure No. 64. The façade of ER–02 full shows plenty of plants and trees as in their original home at the countryside. 174 Figure No. 65. A housing module floor plan in Guadalupe Peralta. 175 9 Figure No. 66. A low–cost housing module in Guadalupe Peralta. 176 Figure No. 67. Guadalupe Peralta development under construction –note the size of the units and the limited area for expansion. 177 Figure No. 68. Housing module in Valle de los Cactus 178 Figure No. 69. Valle de los Cactus, a low–cost public housing condominium. 179 Figure No. 70. LP–06 protected as much as possible from intruders. 181 Figure No. 71. The MO–01 façade protected by steel bars/spikes on top. 181 Figure No. 72. The toilet in the Cumbres III dwelling visited. 183 Figure No. 73. Buckets of water in front of a house in Cumbres III. 184 Figure No. 74. Brick production in Cumbres III. 185 Figure No. 75. A house built with siblings’ help in El Rocío. 188 Figure No. 76. A permanent room next to the original informal shack. 189 Figure No. 77. Cooking using any combustible material. 191 Figure No. 78. Some candies on a table ready to be sold through the window. 192 Figure No. 79. OJ–02 invested in protecting the house as much as possible. 193 Figure No. 80. Introduction of sewage in El Rocío. 196 Figure No. 81. Illegal electricity connections to a lamppost in Paso Hondo. 208 Figure No. 82. The owner’s name and “address” on a wall in Paso Hondo. 209 Figure No. 83. Electricity posts along unpaved streets in Paso Hondo. 210 Figure No. 84. A small shop on the road in Los Pocitos. 212 Figure No. 85. Children picking up in the trash container in El Rocío. 214 Figure No. 86. Partial introduction of electricity in El Rocío. 215 Figure No. 87. Comparison of a dwelling in Los Pocitos 2003–2010. 216 Figure No. 88. Comparison of a dwelling in Los Pocitos 2003–2010. 216 Figure No. 89. Comparison of a dwelling visited in El Rocío 2003–2010. 217 Figure No. 90. Comparison of a dwelling visited in Cumbres III 2003–2010. 217 Figure No. 91. Residents waiting for an interview with local authorities. 218 Figure No. 92. A highly protected dwelling from intruders in Los Pocitos. 219 Figure No. 93. The gas cylinders for cooking in a dwelling in Jaltomate. 221 Figure No. 94. A sign publicising “exclusive plots” 60 meters in Los Pocitos. 222 Figure No. 95. A boy walks naked on unpaved streets in El Rocío. 223 Figure No. 96. A view of a formal housing area under construction. 229 Figure No. 97. A view of formal settlements in the East side of the city. 230 Figure No. 98. A dwelling visited in Palomino Dena. 231 Figure No. 99. A dwelling visited in Guadalupe Peralta. 233 [...]... and the understanding of poverty by officialdom, among others These are key aspects influencing the possibilities of achieving owned and consolidated housing over time and play a major role in practical terms of millions of people Chapter 3 assesses the land and housing environment in Mexico, especially the role of ejido land –or communal land in the equation of housing the urban poor It helps scrutinise... dissertation seeks to assess the process of housing the urban poor from both the views of suppliers and the urban poor themselves, aimed to assess the process of achieving consolidated housing In this endeavour, this dissertation takes into consideration the role played by land tenure perception as a driver of home consolidation among the urban poor within a context of rapid urbanisations in the Global South where... of this or any other university or institute of learning No sources other than those acknowledged in the bibliography have been used CARLOS ROBERTO HERNÁNDEZ VELASCO June 2013 11 CHAPTER I INTRODUCTION 1.1 The challenge of housing the urban poor This dissertation addresses critically the role that land tenure plays in achieving housing for the poor in rapidly urbanising cities in the Global South In. .. the needs of its users” and, actually, it mismatched the social and economic profile of millions of ineligible urban residents who do not qualify for credit or mortgages The inability of the housing sector to match the needs of the urban poor accompanies the growth of informal settlements The role of public bodies is often reactive and seen as an attempt to regain control of the urban sprawl Once informal... literature on the implications of the role that land tenure plays in the process of achieving consolidated housing in medium–sized cities with high industrialisation and urban growth rates in Mexico 22 CHAPTER 2 THE DEBATE ON LAND TENURE AND ITS BENEFITS 2.1 Introduction A number of key factors helped shape the theoretical framework of this dissertation: the urbanisation of poverty; the formal/informal land. .. Thus, the understanding of the impact of land tenure on housing the urban poor is of a major relevance for this dissertation, as it must be seen within the context of an evolving urbanisation process in poorer countries where many studies show that the poor are able to achieve consolidated housing despite the lack of a legal title 2.2 A rapid urbanisation process in the South Poverty in cities has increased... attaining consolidated housing, this dissertation seeks to contest the different theories aimed to promote or deter both formal and informal land tenure as a process to improve the housing conditions of the urban poor Chapter 5 scrutinises the process followed by the urban poor towards achieving consolidated housing It recognises a non –linear path, yet, it implies the understanding of each stage in the. .. to intensive subsidy–led programmes, unrealistic repayment rates in public housing schemes, and / or unrecovered investments in the sector The top–down approach to housing has proved to be ineffective Nevertheless, there are a few examples intended to promote urban governance by incorporating the voice of the urban poor, reducing costs, and diminishing the pressure for housing These programmes are innovative... capitalise the enormous amount of data that helped delve into the dynamics of land tenure and housing the urban poor Chapter 2 engages with the debate on the benefits of land tenure and its implications in housing the urban poor It critically engages with interrelated issues, such as urbanisation, poverty, housing processes, formal/informal dichotomies, transactions costs, credit and savings, taxation... failed In some parts, what actually happens in the cities rarely reflects urban planning processes These are often only developed inside public agencies The focus on good planning and theory has led to weak practices in the field Frequently, public housing is contested in terms of the extent of the participation of public bodies in housing markets The intervention of governments has often resulted in a . INTRODUCTION. 1.1. The challenge of housing the urban poor. This dissertation addresses critically the role that land tenure plays in achieving housing for the poor in rapidly urbanising. 3.3. Land and urban development policies in Mexico. 74 3.4. The process of land and housing for the urban poor in Mexico. 79 3.5. Poor s housing promoted by the State. 86 3.6. The formal financial. seeks to assess the process of housing the urban poor from both the views of suppliers and the urban poor themselves, aimed to assess the process of achieving consolidated housing. In this endeavour,