The focus of this paper is on the effects of housing privatization reforms in Central and Eastern Europe in the 1990s in the context of policy formulation, implementation and evaluation. The paper analyses the similarities and differences between Central and Eastern European countries in the process of housing privatization as a consequence of the specific historical 'pathdependency' process, economic and institutional development, cultural and political choice. Housing privatization is an urban phenomenon and the effects of housing reforms are mostly visible in large (capital) Central and Eastern European cities. Housing privatization reforms attempt to promote market efficiency and distributional equity objectives in the operation of (urban) housing markets. These effects are mostly visible in the form of: tenure change, differentiation in house prices, use of the housing stock, management and maintenance activities, mobility, residential differentiation, property rights regulations (i.e. zoning, rules, property register, condominium law, tax, etc.) and institution building and strengthening. It is argued that housing privatization reforms in Central and Eastern Europe did not achieve the stated objectives. The only objective that has been fulfilled is the control over budget expenditure for macroeconomic reasons, and rise in home ownership. The overall performance does not support 'convergence' towards establishment of efficient and equitable markets, but rather a 'policy collapse' with significant effects on polarization between and within urban housing markets in Central and Eastern Europe.Housing transition, Urban Housing Markets, Central And Eastern Europe, Convergence-DIVERGENCE,
This paper is concerned with a process of housing privatisation and urban revitalisation in the transformation of central-east European cities. Today central-east Europe is approaching the political and economic system that prevails in western Europe. Reforms require the extensive privatisation of firms as well as land and housing. The housing privatisation process includes changing the ownership and management of the housing stock, and a new system of housing finance. These processes will influence new housing construction and the modernisation and rehabilitation of the existing housing stock. The change in housing policy and the increasing polarisation within society may result in transformation of the social and physical structure of the city. Larger and, especially, capital cities in central-east Europe are the most attractive locations for business investments and property development, but consequences can be highly selective. Despite dominant or privileged positions in national and, increasingly, international economies, cities could face certain problems in the future with social polarisation, residential segregation, decentralisation of economic activities and rising unemployment. Therefore, the question is: will housing privatisation in central-east European cities lead to better chances for rehabilitation or just the opposite? Housing privatisation in central-east European cities will have an impact on gentrification and the rehabilitation of older housing areas in inner cities, within the context of political and economic restructuring, urban planning policies and the dynamics of the real estate market. All these factors will determine the future of housing and urban development. The availability of funds will be one of the main questions for the future rehabilitation process in central-east European cities. Another important factor will be the degree to which urban governments become proactive. An innovative housing and urban policy and, a policy and technical 'know-how' assistance from western Europe might well be a success.
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