Unfinished and Non-Compliant Construction in the Global South: Institutional Capacity, Strategic Non-Completion, and Regulatory Compliance under Law 08-15 in Algeria

Abstract

Unfinished and non-compliant construction is a persistent feature of rapidly urbanizing cities in the Global South, yet its governance determinants remain insufficiently understood. This article examines the effectiveness of Algeria’s Law 08-15, a regulatory framework designed to promote building completion and conformity, through the lens of institutional capacity and regulatory compliance theory. Using Ain Abid (Constantine, Algeria) as a case study, the research develops and tests an integrated conceptual model linking regulatory design, institutional capacity, enforcement capability, household compliance behaviour, and urban outcomes. The study adopts a mixed-methods approach combining a complete inventory of 236 residential plots, a structured household survey of 158 households, semi-structured interviews with municipal authorities, and GIS-based spatial analysis. Results reveal a substantial implementation gap: while 88% of constructions possess building permits, only 10% are fully completed, and merely 4% comply strictly with planning regulations. Institutional analysis shows severe local capacity constraints, whereas household data reveals that non-completion is not solely driven by financial limitations but reflects strategic behaviour linked to infrastructure conditions and investment timing. The study conceptualizes urban regulatory failure as a systemic governance equilibrium produced by institutional decoupling and capability–requirement mismatches, offering policy-relevant insights for strengthening enforcement in rapidly urbanizing contexts.