Two policy strategies for handling this. have been adopted by industrial societies. The result is the creation of a dualist rental system comprised of two rental tenures, public and private. The other policy strategy is a market strategy to integrate cost and profit rental housing into a unitary social rental market . The two rental systems each have their own policy problems. In a dualist system, as public rental housing matures rents fall in real terms relative to private rents and demand for public renting rises.
Governments then have to limit both demand and supply.
In a unitary market the main problem is harmonising the transition to unrestricted competition once a mature stock of cost rental housing has been built up. The theory is illustrated with case studies of the dualist systems of Australia, New Zealand and Britain, where different command policy interventions to sustain dualism are examined. and case studies of different types of market policies to integrate the unitary markets of Sweden, the Netherlands, Germany, and Switzerland. It is argued that the time has come for English-speaking countries to abandon state control over cost renting and allow it to compete directly with profit renting. This article compares labour movement theory and corporatist theory. It is argued that there are considerable similarities between the theories and considers to what extent corportist theory can be applied to understanding the Swedish rent-setting system.