Housing reform in socialist economies
Renaud, Bertrand
This paper summarizes the main conclusions of a seminar on housing reforms in socialist economies. The seminar was initiated to discuss the transition from socialist systems, where government control and public ownership dominate, to market-based housing systems. This transition to markets is new to everyone, and several questions shaped the agenda, including : 1) is there agreement about the ultimate goal of housing reform? and 2) how significant is housing reform to overall economic reform? The paper consists of two main parts. The first part, the legacy of central planning and transition issues for housing was prepared prior to the seminar and sets the stage for the development of a reform framework. Its emphasis is analytical rather than operational. The second part, a framework for housing reform in socialist economies, presents the results of the seminar and provides a concise reference point for development of the national reforms according to each country's specific conditions. The framework identifies priority issues and indicates directions for change in four functional areas : i) clarification and adjustments of property rights and the scope of privatization of publicly owned housing; ii) reduction of distortions in rents; iii) development of sound and viable market-oriented finance mechanisms during a difficult transition; and iv) the reorganization of housing production.
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