Chen, Y.-L. Finisterra, LX(128), 2025, e36555
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In conclusion, global cities are the dominant command and control centers for global capitalism,
headquarters locations for transnational firms, and agglomerations for advanced producers and
financial services industries (Brenner & Keil, 2006).
The research on global cities has been rich and varied. Pioneering research has been done by
Edward W, John Friedmann, Sakia Sassen, Sharon Zukin, and Susan Fainstein. Soja mentioned socio-
spatial polarization. From the perspective of the Global South, Jennifer Robinson (2006) criticized
global city research for its developmentalism, its assumption of a ‘one world system’ dominated by
Western countries, and its lack of diversity and alternative urban imaginaries. The questions about
globalizing for whom and who benefits are the crucial questions to ask.
Ong (2011) questioned both approaches – capitalism, and post-colonialism –, for being
economistic or politically reductionist, thereby neglecting the complex urban realities in engaging with
the global. She emphasized the importance of situating the analysis into the “highly dynamic”
processes with three angles. First, that cities serve as sites for problem-solving related to modern life
and national interests. Second, that cities act as nexuses of situated and transnational ideas for
addressing urban problems. Third, that the transformation of Asian cities involves inter-city
comparisons, referencing, or modeling that creates new forms of governmentality—with a unique mix
of public and private elements emerging from borrowings, appropriations, and alliances of neoliberal
techniques.
The priorities of urban projects need justification. In Taiwan, it is interesting to see how the
“global cities” theories were used by Taiwanese scholars and governments to set up the goals of urban
development. As argued by Aihwa Ong and Anaya Roy (2011), these justifications are driven very
much by the desire to be global and inter-reference one another. Before exploring more about the
justifications, it is important to understand the existing situation of housing in Taiwan.
III. NEOLIBERALISM AND HOUSING: THE FINANCIALIZATION OF HOMEOWNERSHIP AND
HOUSING RIGHTS
Neoliberalism impacted East Asian developmental states later than it did many countries in
North and South America and Europe, because in the late 1970s and 1980s these states still
experienced rapid economic growth under state-led policies. Neoliberalism altered the strong role of
the developmental states in varied degrees, and it had uneven impacts on different policies in different
countries. Decentralization, economic competitiveness, and public-private partnerships have become
the common tendency, but the driving forces behind this trend cannot be attributed to
neoliberalization. Democratization also plays a part in demanding decentralizing decision-making and
resource distribution (Park et al., 2012).
The increasing mortgage programs and the reliance on the market in Taiwan, although in a
different path-dependent trajectory, end up holding a similar pattern of neoliberalism, that is, “the
financialization of homeownership and housing rights” (Rolnik, 2013). This process, as argued by
Rolnik (2013), involves three steps: first, promoting homeownership and privatizing public/social
housing; second, financing homeownership by lowering the barriers to entering mortgage markets;
and third, unlocking land value by encouraging speculative urban development.
However, after checking these three steps, Taiwan had a different path. Firstly, Taiwan does not
have a housing welfare system like the West. Private homeownership has been the predominant goal
of Taiwan’s housing policies. The homeownership rate reached 83.9% in 2010. Public housing
constitutes only about 0.08% of all housing stock in Taiwan. In other words, privatization has been the
only goal of housing policies in Taiwan. Secondly, in the past 20 years, the Taiwanese government’s
efforts in housing policies were to formalize the mortgage market and rely on mortgage programs as
the major intervention. Thirdly, Taiwan is doing the same thing: unlocking land value by encouraging
speculative urban development.
The financialization of housing has emerged as a growing global issue (Aalbers, 2017). This
process, marked by deregulated mortgage and capital markets, increased cross-border capital flows,
and a rising private-debt-to-gross domestic product (GDP) ratio, has further intensified the challenges
associated with housing financialization. Although this phenomenon is widespread, its pace and timing
vary across countries (Aalbers & Fernandez, 2016). Taiwan’s housing system has a similar trend,
treating housing as a commodity and demonstrating how financialization has accelerated the process
of commodification. Since the 1990s, Taiwan's transition toward neoliberalization and
democratization has facilitated the liberalization of its financial system. Increasingly, low- and middle-
income people have found housing unaffordable, leading to a crisis and a social housing movement in