Author:

Telma Luciana Hoyler

Abstract:

Is there an institutionalized pattern of public-private relationship regarding policies of land use, which explains the victories achieved by the real estate industry? To provide an answer to this question, this work investigates the interest intermediation between state bureaucracies and real estate developers when it comes to the approval of building projects in São Paulo and contributes to the understanding of how cities are governed. A system of fragmented and heterogeneously scattered power was identified composing a governance pattern in which, depending on the interest intermediation process brought forward in each case, the real estate market does not always take it all. Such proceedings occur not only during the definition of the legislation, but also while shaping which structures will regulate the policy and throughout the implementation of the policy itself. Three types of interaction which channel interest intermediation were identified: a situational interaction, set by the developers actions in the building of the bureaucracy of development approval; an ordinary interaction, in which government action is set by street level bureaucrats; and a participatory interaction within the Technical Chamber of Urban Legislation. In all cases, triumph depends on the process of fitting that can occur between state and private actors interests. The state’s interest in performing the fit in the analyzed city was triggered by the need to build up state capacity to face an external shock, revealing that capacity building can promote better engagement between the public and private sector without necessarily implying greater state control.