The practice and thought of housing system reform
Abstract Housing is a major issue that affects the personal interests of the broad masses, and the Party Central Committee and State Council take housing reform very seriously. To solve the housing problem of our urban residents, we must first clarify the direction of housing reform. In recent years, all regions and departments have done a great deal of work to deepen their housing reforms. Broadly speaking, there has been a significant improvement in the housing situation of [urban] residents, but it's still not nearly enough. When I was Mayor of Shanghai, on average the urban populace had only 4 square meters of housing per person. Since we introduced measures such as a provident housing fund, it has now reached 8 square meters per person, doubling within a few years.The people urgently need housing - how should we resolve this problem? In the past, housing policy focused on building public housing that was assigned at low rents - it was a form of [social] welfare. This type of policy made the housing problem increasingly acute. The policy of the Party Central Committee and State Council for resolving our housing problem is to promote and refine a provident housing fund, while at the same time using many channels of financing and adopting matching policy measures to go down the path of commercializing housing. Although this is a long road, it is one we musttake.
Practice has shown that this is the correct way to resolve our nation's housing problem.
Key word Housing preferential policies housing fund welfare affordable housing
Text In the past two years, we started a "Happy Homes"project, implemented some preferential policies, and arranged a number of loans. Although the time has been short and the results may not yet be very obvious, it has won many hearts. I feel that the "Happy Homes"project has accomplished a lot during these two years. It has solved the housing problem for some people, but it isn't the primary measure for solving the housing problem. After discussions at a conference, the State Council feels that the universal promotion and continuous improvement of a provident housing fund should be the focus for housing reform for 1997 and for a period of time to come. This is not to say that the "Happy Homes"project is unimportant; rather these two must be done together and should not be separated from each other."HappyHomes"isanemergencymeasure. Atatimewhenaprovident
housing fund has yet to be universally established, and given that payment standards
are very low, it is effective for banks to arrange for some money to be used to build housing that is sold to residents, especially residents with housing difficulties.
[1]. A national work conference on housing reform was convened by the State Council Leading Group on Housing Reform in Chengdu, Sichuan Province, on
January 23C25, 1997.Attendees included responsible members of the housing reform
work groups from 35 provinces, autonomous regions, and centrally administered municipalities; members of the State Council Leading Group on Housing Reform; and responsible members of the related State Council departments. This is the main part of
Zhu Rongji's speech at the conference. It was previously published in the second volume of Selected Important Essays since the 14th Party Congress. Some words have been amended inthis edition.
Now we must focus on promoting and improving a provident housing fund. Some people say that this is taking the path that Singapore did. Actually, first, it isn't entirely the way Singapore does it; second, it isn't only Singapore that uses this method; and third, even if it's Singapore's method, what's wrong with that? The y've used it effectively. In fact, we are integrating it with our own national conditions, drawing upon the methods of others and making major changes. Shanghai's experience has shown that in our country, using a provident housing fund, accumulating funds, accelerating residential housing construction, and resolving the housing problem is effective. This is something I have personally experienced inmy work. When Shanghai instituted a provident housing fund, it was decided upon after being discussed by the entire urban populace. I made a speech on TV to announce this method, and then all the city's residents discussed it for three days, airing their views through TV and other formats. Institutions and organizations also held discussions. A survey of popula r opinion showed that virtually all of Shanghai's residents supported the provident housing fund system. When using the provident fund to build housing, it usually takes only 10 months to complete a building, and construction costs are also greatly reduced. Practice has shown that a provident housing fund can be successfully implemented.
In resolving the housing problem, how do we solve the funding issue? If all the money for constructing housing has to come from banks, it can't last long and there won't be much of it. Practice in housing reform has demonstrated that the funding
for construction must be shared by the state, by enterprises, and by individuals. Only
when a provident housing fund is universally set up byemployees of [government] agencies, enterprises, and publicly funded institutions will there be stable and
low-cost funding for housing construction. These past few years we've held many conferences on housing reform, and these have always stressed the promotion and refinement of a provident housing fund, but nationally speaking, the funds current accumulation rate isn't high, its drawdown ratio is low, and progress is quite slow and insufficiently balanced. I feel that the time has come when we can increase the payment rate for a provident housing fund. Shanghai has mature experience with such a fund, and I suggest you have a look at it.
Establishing a provident housing fund u
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