Towards a ‘Post‐Neoliberal’ Mode of Housing Regulation? The Israeli Social Protest of Summer 2011

Abstract

In the summer of 2011, after decades of virtually uncontested neoliberalization, Israel was swept by unprecedented protests against the rising cost of living, social inequality and, most particularly, escalating housing prices. Within two weeks, a small protest camp established on Rothschild Boulevard in Tel Aviv had grown into a mass movement involving hundreds of thousands of people across the country. Given an ambivalent sense of the significance of urban movements in bringing about social change, the aim of this article is to analyze whether the Israeli social protest was able to push forward a post‐neoliberal mode of housing regulation. Building on a framework developed by Brenner, Peck and Theodore to grasp transformations in the landscape of regulatory restructuring, this article argues that the movement has indeed achieved a far‐reaching hegemonic shift in public discourse and also become an important driver in promoting regulatory experiments. Despite its achievements, however, the movement was unable to challenge the Israeli ‘rule regime' of neoliberalization, on account of two structural constraints that were shielded by the most powerful state apparatuses: the commodity character of housing; and a neoliberalized land regime, where state‐owned land is treated as a profit machine for public finance.

Folk-economic beliefs: An evolutionary cognitive model

“…The belief is that regulation generally does what it is supposed to do, as government policy can direct the economy towards desired results (Hirshleifer 2008; Wood 2002, p. 77). For example, in the United States, many cities imposed rent-control in the 1960s – and such measures were a major item in politicians' platforms (Dreier 1999, p. 211) – with the goal of creating an ample supply of cheap housing; see Schipper (2015) for similar processes in Israel. The FEB here is that such regulation efforts will work as intended, for example, that rents will stay low after the imposition of rent-control, or that minimum wages can affect wages without affecting the demand for labor (some people even think that the latter measure could boost employment rates (Haferkamp et al 2009, p. 533).…”

Partisan elites shape citizens' economic beliefs

“…The belief is that regulation generally does what it is supposed to do, as government policy can direct the economy towards desired results (Hirshleifer 2008;Wood 2002, p. 77). For example, in the United States, many cities imposed rent-control in the 1960sand such measures were a major item in politicians' platforms (Dreier 1999, p. 211)with the goal of creating an ample supply of cheap housing; see Schipper (2015) for similar processes in Israel. The FEB here is that such regulation efforts will work as intended, for example, that rents will stay low after the imposition of rent-control, or that minimum wages can affect wages without affecting the demand for labor (some people even think that the latter measure could boost employment rates (Haferkamp et al 2009, p. 533).…”

A “Supertanker” Against Bureaucracy in the Wake of a Housing Crisis: Neoliberalizing Planning in Netanyahu's Israel

“…Originally not part of the interim law which created the Committee for Preferred Housing Projects, a political compromise stipulated that 30% of dwellings within planned housing projects approved by the CPHP will be long‐term rental dwellings, half of which will be under price supervision and half of which will be sold at market price. Yet, in practice, the share of rental housing has been trimmed down, or even eliminated entirely because, as Treasury officials proclaimed, rental housing is unable to meet the ultimate market benchmark, cost‐efficiency, thus rejecting attempts to increase the supply of affordable housing (Schipper ).…”

“…In a country accustomed to the unrivaled ascendancy of security and geopolitics, mass protests under the banner of “the people demand social justice”, albeit brief, were ground breaking. High cost of living, escalating housing prices, and mounting discontent of neoliberal socio‐economic hegemony became the hallmark of the public protest in Israel (Grinberg ; Marom ; Schipper , ).…”