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Houses are an asset that goes up in value over time.  Giving houses to poor people would give them a vital asset that is useful for their families.  By building houses in regions where there are most jobs in a developing (poor) country you can set off a cascading effect that will see the whole country become rich. 

People who have houses will find that their house prices go up over time in the richer regions.  They will then sell their houses and move to poorer regions, keeping some money from their sale.  This will raise the price of houses in poorer regions in the developing country making many in poorer areas well off.

In addition to this there is a macroeconomic effect.  People will take loans on their houses as they go up in value.  These loans are assets for banks.  Banks would therefore have more revenue which would then allow them to help more people start businesses and invest, creating more jobs.  The amount that banks have would also be increased if those who sold their houses kept the profit they made in the developing country in question.  This would be deposited in a bank which would mean that the loan they have given would still be an asset of the bank.  Wealth is increased in the economy and recycled so that it raises investment and thus the number of jobs. 

As a housing program is carried out building houses in developing countries that have some industry to begin with (such as India and Brazil) more revenue is created from a foreign exchange transactions tax which is used to build more houses.  As these slightly richer developing countries become more wealthy they will invest in poorer developing countries like Africa.  In addition to this there would be more money to invest in building more houses. 

 

 

 


 

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