HOUSING MARKET SYSTEMS IN REFORMING SOCIALIST ECONOMIES: COMPARATIVE INDICATORS OF PERFORMANCE AND POLICY

Abstract

This comparative research explores the dynamics of housing market systems in thirteen reforming socialist economies. Specifically the study has the following objectives: (i) to undertake comparative analysis of policy reforms and performances of the housing sector; (ii) to develop a set of indicators of performance and policy that provide a robust basis for the assessment of strengths and weaknesses of policy environments; and (iii) to provide recommendations about the strategy and sequencing of policy reforms. The model used in the study defines three distinct policy arenas, each governing policy outcomes, instruments and types of intervention. Given the diversity of policy responses across the region, it focuses on the analysis of policy outcomes and the way they define market performance. A set of policy and performance indicators is developed and applied to assess the strengths and weaknesses of housing market performance in a comparative perspective. The evaluation suggests that a much stronger commitment to comprehensive reforms in the major policy areas leads to better market performance. Furthermore, despite their differences and dependency on socialist legacy, the countries' experience suggests links between specific types of reforms and performance. It is argued that there is a 'reform path' that countries have to follow to successfully improve their housing market systems.