Skip to main content Accessibility help
Hostname: page-component-546b4f848f-gfk6d Total loading time: 0 Render date: 2023-06-03T12:13:38.425Z Has data issue: false Feature Flags: { "useRatesEcommerce": true } hasContentIssue false

5 - “My House, My Pride”

The Housing Problem in the Middle of the Pyramid

Published online by Cambridge University Press:  16 February 2021

Alvaro Cuervo-Cazurra
Northeastern University, Boston
Miguel A. Montoya
Monterrey Tec, Guadalajara
Get access


Traditional housing markets have primarily ignored both the Bottom of the Pyramid (BOP) and the Middle of the Pyramid (MOP), as these groups are expelled out from commercial banking given they have insufficient money to formally build their homes, so they remain as vulnerable people. This housing shortage is of particular importance in developing countries where public intervention is not efficient to solve this social problem. In this chapter, and applied to the Latin American and the Caribbean (LAC) nations, we show how the public–private initiatives based on innovation can help to solve this shortage of quality housing. We conclude that managers located in LAC countries have an active role in identifying social needs to satisfy them by applying innovative processes focused on reducing poverty gaps in housing from private initiatives. These creative procedures allow social entrepreneurs to adopt flexible and adjustable models to the variety of needs emerged in the different segments of the low-income market, and we show it in various cases for some LAC countries.

Publisher: Cambridge University Press
Print publication year: 2021

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)


Ahn, D., Kahn, W., Kim, K.-K., & Shin, H. 2016. Analysis and Design of Microfinance Services: A Case of ROSCA. Engineering Economist, Vol. 62, No. 3, pp. 197–230.Google Scholar
Arbeláez, M. A., Camacho, C., & Fajardo, J. 2011. Low-Income Housing Finance in Colombia. IDB Working Paper Series, 256, Inter-American Development Bank.CrossRefGoogle Scholar
ASHOKA. 2016. Francesco Piazzesi. Ashoka Fellows. Accessed September 10, 2016. Scholar
Azevedo, V., Balgun, A., Bouillon, C., Duke, D., & Gallardo, M. 2015. Un mercado creciente de US$750 mil millones. Inter-American Development Bank (IDB). Accessed April 12, 2016. http://publications.iadb.orgGoogle Scholar
BambooFinance. 2014. Bamboo Finance Impact Report. Progress in context. BambooFinance. Accessed November 12, 2016. Scholar
Bessarabova, T. 2014. Housing at the Base of the Pyramid in Brazil. Challenges and Opportunities. Aspen Network of Development Entrepreneurs (ANDE) & Business Call to Action. Accessed April 27, 2016. Scholar
Bessarabova, T. 2015. ¡Échale! a Tu Casa: Providing Low-Income Families Opportunities for Home Ownership. Business Call to Action. Accessed June 5, 2016. Scholar
Bouillon, C. (ed.) 2012. Room for Development: Housing Markets in Latin America and the Caribbean. InterAmerican Development Bank. Accessed March 1, 2017. https://publications.iadb.orgGoogle Scholar
Bloomberg Business. 2016. Building Products Company Overview of Organización Corona S. A. Bloomberg. Accessed November 8, 2016. Scholar
CEMEX. 2015. Building a Better Future. Annual report. CEMEX. Accessed July 13, 2016. Scholar
CEMEX. 2020. Responsible Business. Inclusive Business Models. CEMEX. Accessed June 24, 2016. Scholar
Dobbs, R., Manyika, J., & Woetzel, J. 2015. The Four Global Forces Are Breaking All the Trends. McKinsey & Company. Accessed July 24, 2016. Scholar
El-Gamal, N., El-Komi, N., Karlan, D., & Osman, A. 2014. Bank-Insured ROSCA for Microfinance: Experimental Evidence in Poor Egyptian Villages. Journal of Economic Behavior and Organization 103: S56S73.CrossRefGoogle Scholar
EMIS. 2016. Colombia Company Profiles. Euromoney Institutional Investor Company (EMIS). Accessed September 22, 2016. Scholar
Etang, A., Fielding, D., & Knowles, S. 2011. Trust and ROSCA Membership in Rural Cameroon. Journal of International Development 23(4): 461475.CrossRefGoogle Scholar
ITALMEXICANA. 2015. Acerca de Ital Mexicana. Ital Mexicana. Accessed July 15, 2015. Scholar
Kedir, A. M. & Ibrahim, G., 2011. ROSCAs in Urban Ethiopia: Are the Characteristics of the Institutions More Important Than Those of Members? Journal of Development Studies 47(7): 9981016.CrossRefGoogle Scholar
Khare, H. S. 2016. Barriers Constraining the Low and Middle-Income Housing Finance Market in Bangladesh. International Finance Corporation – The World Bank Group. Accessed October 28, 2017. Scholar
Letelier, M. F., Flores, F., & Spinosa, C. 2003. Developing Productive Customers in Emerging Markets. California Management Review 45(4): 77103.CrossRefGoogle Scholar
Mbamaonyeukwu, V. S. (2013). ROSCAs: An Instrument for the Sustainable Development of the Solidarity Economy. A Paper Submitted to the Asian Solidarity Economy Council, on the Occasion of the 5th RIPESS International Meeting of SSE. Manila, Philippines, October 15–18, 2013.Google Scholar
Mugica, Y. 2004. Fabio Rosa and Social Entrepreneurship. The Kenan-Flagler Business School University of North Carolina. Accessed June 15, 2016. Scholar
O’Connell, K. 2014. What Influences Open Defecation and Latrine Ownership in Rural Households? Findings from a Global Review. The World Bank Group. Accessed October 29, 2017. Scholar
Peterlechner, L. 2009. ROSCAs in Uganda – Beyond Economic Rationality. Savings and Development 109–140.Google Scholar
Roch, F. 2017. Housing Finance and Real Estate Markets in Colombia. IMF Working Paper, 17/190, International Monetary Fund. Accessed October 29, 2017. Scholar
Schmidt, J. 2014. CEMEX Patrimonio Hoy: Providing Integral Housing Solutions for Low-Income Families. Business Call to Action. Accessed July 15, 2016. Scholar
Smets, P. 2000. ROSCAs as a Source of Housing Finance for the Urban Poor: An Analysis of Self-Help Practices from Hyderabad, India. Community Development Journal 35: 1630.CrossRefGoogle Scholar
Stickney, C. 2014. Many Paths to a Home: Emerging Business Models for Latin America and the Caribbean's Base of the Pyramid. Inter-American Development Bank (IDB). Accessed June 10, 2016. Scholar
Treviño, L. 2016. How Latin America’s Housing Policies are Changing the Lives of Urban Families. November 4, 2016. The World Bank. Accessed March 6, 2017. Scholar
United Nations SDG. 2020. Sustainable development goals. Water and sanitation. Accessed June 24, 2020. Scholar
Wei, W. & Lijuan, Z. 2011. Discussion on Legal Regulation Problem of ROSCA. Proceedings of the 2011 International Conference on Future Computer Science and Education, ICFCSE 2011, 506–508.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the or variations. ‘’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats