The Rise and Fall of a Political Technology: Credit, Housing, and Financial Neoliberalism in Colombia (1970s–1990s)

This paper examines the rise and fall of a financial instrument that functioned in Colombia from 1972 to 1999. The UPAC system—standing for Unidad de Poder Adquisitivo Constante, or Unit of Constant Purchasing Power—was an indexed credit system that created special public and private banking institutions, which administered savings accounts and credits that were indexed to a specific “unit” that was supposed to be adjusted for inflation, retaining their constant purchasing power. The loans were almost exclusively oriented toward supporting the housing sector, through loans for mortgages, home improvements, and construction. Beyond a mere credit system, we explore the UPAC as a political technology, which we define as the practices, discourses, and instruments that connect forms of expertise to shape political questions about governing, allocation, and legitimacy. This methodological approach broadens the understanding of neoliberalism’s polycentric nature: Not only does it have multiple geographic and intellectual centers, but it also developed within a larger system of actors, discourses, and objects that changed over time. In tracing its historical trajectory, we demonstrate how some financial instruments, coded as neoliberal—such as the UPAC—were initially designed as state tools for developmental agendas. Additionally, we show how the UPAC system was later transformed, resulting in a loss of legitimacy and sparking multiple struggles over resource allocation and homeownership, particularly after the late 1980s due to financial deregulation. Instead of focusing solely on the ideas of a few influential intellectuals or political leaders, our approach to political technology considers the experiences of borrowers, homeowners, protesters, and bureaucrats to gain a deeper understanding of neoliberalism. By integrating the views of multiple stakeholders, we trace the history of a specific political technology, while also uncovering unintended effects, failures, and distortions. In doing so, we highlight the unpredictable, complex, and nonlinear evolution of neoliberalism.