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Security <strong>of</strong> tenure: Conditions and trends123Box 5.7 Increasing tenure insecurity in ChinaIt is not surprising that a low-income country with as huge anddiverse a land mass and population, and a history <strong>of</strong> tumultuouspolitical and economic change, as China would be afflicted withproblems stemming from insecure tenure. It is, none<strong>the</strong>less,surprising how quickly China has evolved from a country withrelatively secure tenure for all during most <strong>of</strong> its history to <strong>the</strong>opposite during <strong>the</strong> last decade.China’s largely successful transition to a highly globalizedmixed economy from a minimally open-command economy during<strong>the</strong> years since <strong>the</strong> Four Modernizations were announced in 1978has much to do with this: land has become a scarce commodity.Prices now more accurately – if still incompletely – reflect <strong>the</strong>expected return on investment to alternate uses. Land prices haverisen dramatically during <strong>the</strong> past decade, while <strong>the</strong> development<strong>of</strong> <strong>the</strong> legal and administrative infrastructure governing <strong>the</strong> allocation,transfer and conversion <strong>of</strong> rural and urban land has only justbegun to adapt itself to existing and emerging economic pressures.As urban and industrial development have expanded westwardduring <strong>the</strong> past decade, problems <strong>of</strong> insecure tenure that wereoriginally found only in <strong>the</strong> fast growing coastal cities and <strong>the</strong>irsuburbs can now be found throughout <strong>the</strong> country. Various groups<strong>of</strong> dwellers are particularly susceptible to insecurity <strong>of</strong> tenure tohousing in China. These include:• Farmers, whose insecurity <strong>of</strong> livelihood in <strong>the</strong> countrysideforces <strong>the</strong>m to migrate to <strong>the</strong> cities in search <strong>of</strong> incomeearningopportunities. Lacking an urban residence permit, andin <strong>the</strong> absence <strong>of</strong> policies supportive towards rural migrants,<strong>the</strong>ir security <strong>of</strong> tenure to housing remains tenuous, at best.Approximately 120 million to 150 million migrant workerslive in major metropolitan centres for a large part <strong>of</strong> <strong>the</strong> year.• Former state-sector workers who have been laid <strong>of</strong>f (xiagang)or paid <strong>of</strong>f (maiduan) by <strong>the</strong>ir employers and are living inoriginal ‘welfare’ housing that <strong>the</strong>y bought from <strong>the</strong>iremployer during earlier housing reforms.• Non-state sector workers holding urban residence permitswhose incomes do not allow <strong>the</strong>m secure tenure to housing.These may be long-term city-centre residents who are, orwere, employed in ei<strong>the</strong>r collective or informal enterprisesand who have been renting or subletting affordable housingfrom private parties or local authorities.• Registered and non-registered urban residents <strong>of</strong> informalsettlements (chengzhongcun), dangerous or dilapidatedhousing (weijiufangwu), or housing constructed illegally orwithout conforming to building codes (weifaweiguifangwu).• Urban workers with adequate incomes and/or politicalresources to maintain access to adequate housing in <strong>the</strong> eventthat <strong>the</strong>ir property is expropriated and demolished under <strong>the</strong>force <strong>of</strong> ‘eminent domain’.Security <strong>of</strong> tenureproblems are by nomeans isolated to<strong>the</strong> developingworldSource: Westendorff, 2007now moderating in many countries, has resulted in increasingnumbers <strong>of</strong> people being unable to access <strong>the</strong>owner–occupation sector, particularly in city centres. 29These various examples, <strong>of</strong> course, are a meresampling <strong>of</strong> <strong>the</strong> degree to which security <strong>of</strong> tenure is not areality for so many throughout <strong>the</strong> world today, in rich andpoor countries alike. The scale <strong>of</strong> insecure tenure and <strong>the</strong>growing prevalence <strong>of</strong> inadequate housing conditions andslums are clearly daunting in nature and will require considerablylarger and better resourced efforts than <strong>the</strong> world haswitnessed to date. While political and economic interestsand a range <strong>of</strong> o<strong>the</strong>r causes lie at <strong>the</strong> heart <strong>of</strong> <strong>the</strong> globalsecurity <strong>of</strong> tenure deficit today, <strong>the</strong> very nature <strong>of</strong> tenureitself contributes to <strong>the</strong> difficulties in building a clear globalmovement to ensure that all can live out <strong>the</strong>ir lives withsecure tenure.SCALE AND IMPACTS OFEVICTIONSWhile insecure tenure is experienced by many largely in <strong>the</strong>realm <strong>of</strong> perceptions – although such perceptions may beexperienced as very real fear, and have very concreteoutcomes, such as <strong>the</strong> inability or unwillingness to improvedwellings – evictions are always experienced as very realevents, with harsh consequences for those evicted. ThisBox 5.8 Erosion <strong>of</strong> tenure protections in CanadaDuring <strong>the</strong> last decade, security <strong>of</strong> tenure regulations – which is a provincial governmentresponsibility – have been eroded in many <strong>of</strong> Canada’s ten provinces. In Ontario, for example,<strong>the</strong> largest province with about 40 per cent <strong>of</strong> Canada’s population,‘<strong>the</strong> entire 50-yearevolution <strong>of</strong> security <strong>of</strong> tenure legislation was wiped <strong>of</strong>f <strong>the</strong> statute books in <strong>the</strong> late 1990s’.In Ontario in 1998, <strong>the</strong> Tenant Protection Act repealed and replaced <strong>the</strong> Landlord and TenantAct, <strong>the</strong> Rent Control Act and <strong>the</strong> Rental Housing Protection Act.The previous legislation had allowed municipalities in Ontario to refuse permission for<strong>the</strong> demolition or conversion <strong>of</strong> rental apartment buildings until <strong>the</strong> rental housing supply andaffordability crisis had passed. The adoption <strong>of</strong> <strong>the</strong> Tenant Protection Act repealed this provision,and it was replaced by provisions for ‘vacancy decontrol’. In practice, <strong>the</strong> new legislationimplies that when a unit is vacated, <strong>the</strong> rent on <strong>the</strong> unit can be set at any level:‘This accountsfor <strong>the</strong> steep increases in rents, far outpacing tenant incomes.’Ano<strong>the</strong>r important feature <strong>of</strong> <strong>the</strong> Tenant Protection Act was that it allowed for quickand easy evictions: a tenant has five days during which to reply to an eviction notice. If tenantsdo not reply (i.e. <strong>the</strong>y were away or did not realize that <strong>the</strong>y have to submit a written intentionto dispute, or if <strong>the</strong>y have language problems or o<strong>the</strong>r pressing issues), <strong>the</strong> landlord can obtain adefault order that does not require a hearing. A review <strong>of</strong> <strong>the</strong> impact <strong>of</strong> <strong>the</strong> legislation foundthat over half <strong>of</strong> eviction orders (54 per cent) were issued as <strong>the</strong> result <strong>of</strong> a default order. TheTenant Protection Act resulted in <strong>the</strong> number <strong>of</strong> eviction orders in <strong>the</strong> City <strong>of</strong> Torontoincreasing from about 5000 at <strong>the</strong> time <strong>of</strong> <strong>the</strong> new legislation to a peak <strong>of</strong> 15,000 in 2002. Notall orders result in an eviction. The estimate is that about 3900 tenant households (about 9800persons) are evicted annually in Toronto as a result <strong>of</strong> <strong>the</strong> Tenant Protection Act.Source: Hulchanski, 2007

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