From Financialisation to Consumption: The Systems of Provision Approach Applied to Housing and Water

This paper presents an introduction to the concept of systems of provision (sop) and illustrates some of the core themes by applying the sop framework to the study of the financialisation of housing and water. The sop approach considers consumption to be part of a chain of activity interlinked with production processes. By adopting a vertical analytical structure, the study of consumption (and the consumer) is attached to distinct, and distinctly structured, systems that are commodity-specific. Each sop needs to be addressed by reference to the material and cultural specificities that bring together production, distribution, access, and the nature and influence of the conditions under which these occur. Consumption patterns emerge from a complex web of structures, agents, processes and relations and are specific in time and location. Originally developed to address private commodity consumption, the sop approach is widened in this paper to address the delivery of essential services, in which the state often plays a significant role. The paper shows that the role and impact of finance and financialisation within these sectors can only be understood by locating these within the integrated chains of activity. The resulting analysis provides a rich and complex understanding of consumption, which is anchored in reality, thereby creating a more useful and appropriate basis for policy than other approaches, whilst critically synthesizing from them.