Role Of The State And Of The Real Estate Companies

1413 Words Dec 6th, 2015 6 Pages
International development studies tries to explain the dynamics between countries in terms of the population’s well-being by comparing economic, political, social, historical, and cultural factors (Haslam, Schafer and Beaudet 2012, 5). Indeed, even UNESCO world heritage sites can be examined under the international development scope. Chile is a country containing five world heritage sites including the city of Valparaíso. It was declared as an UNESCO heritage site1 in 2003. A particular case study was analyzed on the impacts that this declaration has on the local population. This case study is an important topic to international development since it focuses on poverty, culture, neoliberalism, and urban development which are issues influencing human welfare. The role of the state and of the real estate companies, both driven by neoliberalism, depicts the structural constraints impeding the development of the town. Thus, early patterns of gentrification2 shows that the designation of Valparaíso as an UNESCO world heritage3 site has caused negative socio-economic effects on the low-income local population on a microeconomic and macroeconomic scale.
First of all, Chile has a neoliberal approach to economy which explains its market-driven economy. Furthermore, this approach leads to weak social welfare policies since it tends to support middle and upper class rather than the low-income population. Thus, equity is not prioritized which explains the wide gap between the rich and…
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