document.pdf (1.29 MB)
Statecraft strategies and housing financialization at the periphery: Post-socialist trajectories in Russia and Poland
journal contribution
posted on 2020-01-07, 10:56 authored by Mirjam Büdenbender, Andrea LagnaA new literature on housing and financialization has emerged in recent years, but scholars
have yet to examine how political actors shape national trajectories of housing financialization.
In this article, we address this shortcoming by examining the cases of Russia and Poland in
the 1990-2018 period. We argue that in both contexts political elites implemented a radical
market-oriented reshaping of housing finance. However, by pursuing distinct statecraft
strategies and modes of integrating the domestic economy into global markets, Russian and
Polish political elites created two divergent trajectories of housing financialization. Russian
political elites pursued patrimonial statecraft strategies and a mode of global economic
integration based on raw material exports. The Putin administration channeled revenues from
raw material exports into the securitization-based housing finance system and used this
infrastructure as an instrument of hegemonic power. In doing so, the Russian government
shielded homeowners from exposure to financial risk. In contrast, Polish political elites
pursued liberal statecraft strategies and a mode of global economic integration based on
foreign capital inflows. Polish political parties therefore enabled foreign banks to dominate the
housing finance system and sell foreign currency mortgages, which exposed homeowners to
considerable financial risk. In light of these findings we call for further research into the
political factors that shape the process of housing financialization, both in the post-socialist
space and beyond.
Funding
ERC grant 313376
History
School
- Business and Economics
Department
- Business
Published in
Finance and SocietyVolume
5Issue
2Pages
105 - 125Publisher
Finance and SocietyVersion
- VoR (Version of Record)
Rights holder
© The AuthorsPublisher statement
This is an Open Access Article. It is published by Finance and Society under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/Publication date
2019-12-06ISSN
2059-5999Publisher version
Language
- en
Depositor
Dr Andrea Lagna Deposit date: 2 January 2020Usage metrics
Categories
No categories selectedLicence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC