ON SUBSIDIES AND HOME-OWNERSHIP - COLOMBIAN HOUSING POLICY DURING THE1990S

In the early 1990s, the World Bank began to recommend that governments reform their national housing, land and financial sectors in ways tha t would 'enable the market to work'. Chile and Colombia have both take n this advice seriously. Unfortunately, Colombian experience demonstra tes that while some elements in the new approach are eminently sensibl e, there are certain flaws. Offering subsidies for homes but not for s ervices is highly questionable and the criticism made of sites and ser vices schemes is inappropriate. A further weakness of the Washington a pproach is the sacrifice of rental accommodation on the altar of owner -occupation.