A/67/286 resources to promote the right to adequate housing without discrimination. This is particularly the case when States devote the majority of their budgets to these policies while at the same time dismantling or failing to promote social housing programmes or other alternatives that specifically target the poor. 38. The capital grant-subsidy approach has been promoted to target low-income households in particular and the Chilean experience has been considered the model that inspired other countries. 58 The model emphasizes: (a) the shift of responsibility for housing provision from the Government to the private sector; (b) provision of one-time grants for home purchase while curtailing all indirect subsidies; and (c) transparent qualifying mechanisms based on household income and a savings contribution. Programmes aim to increase housing affordability by offering a cash subsidy to cover part of the purchase price of a formally constructed dwelling offered for sale in the market by private companies. Subsidies may be combined with mortgage or microfinance loans and/or household savings. Capital grants aim to target the lowest-income households and are perceived to encourage their integration within conventional housing markets, leading to financial market expansion. 59 39. The Chilean model has been praised as a best practice for its transparency, the scale of its shift of housing provision to private market providers (which were seen as more efficient and effective than Government in addressing the diversity of housing demand) and its targeting of the poor. 60 The model has been widely replicated in Latin America (Brazil, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Mexico, Panama, Peru and Venezuela (Bolivarian Republic of)). 61 Outside Latin America, the capital-grant approach has been implemented on a large scale in South Africa since 1994. 62 40. In the absence of State land planning, a large amount of subsidies available in the housing market has led to significant increases in land and housing prices, a general problem of affordability for low-income households and long waiting lists. 63 41. Problems also soon emerged with regard to the location of these programmes. In Chile, planning regulations were loosened and city limits expanded under the premise that a freely operating land market would automatically contribute to __________________ 58 59 60 61 62 63 12-45918 A. Gilbert, “Power, Ideology and the Washington Consensus: The Development and Spread of Chilean Housing Policy”, Housing Studies, vol. 17, No. 2 (2002), pp. 305-324. Diana Mitlin, “New Directions in Housing Policy”, in Global Urban Poverty: Setting the Agenda, Allison M. Garland, Mejgan Massoumi and Blair A. Ruble, eds. (Washington, D.C., Woodrow Wilson International Center for Scholars, 2007), pp. 151 and 163. UN-Habitat, Affordable Land and Housing in Latin America and the Caribbean (Nairobi, 2011), p. 57. Replies of El Salvador, Guatemala, Mexico and Venezuela (Bolivarian Republic of) to the questionnaire. Some 20 per cent of the Inter-American Development Bank lending for shelter has been allocated to capital-subsidy programmes. Inter-American Development Bank, Sharpening the Bank’s Capacity to Support the Housing Sector in Latin America and the Caribbean: Background Paper for the Implementation of the Social Development Strategy (Washington, D.C., 2006) . South Africa Financial and Fiscal Commission, Building an Inclusionary Housing Market: Shifting the Paradigm for Housing Delivery in South Africa, January 2012. In Chile, in 1998 the estimated waiting time for a housing subsidy was over 20 years. UN-Habitat, Affordable Land and Housing in Latin America and the Caribbean, p. 55. 13