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Privatizing the housing sector: The case of Slovakia
Authors:Lubomir Faltan  Richard A Dodder
Abstract:The events of the 1980s generated the end of an era in central Europe—an era characterized by central, planned economies and totalitarian political structures. As each new country struggled to create democratic political processes and market economies, many problems emerged; one of the most vexing was the privatization of housing. In Slovakia, individual family housing had never been nationalized, leaving most of the rural and village families owning their own homes. Apartment houses, as well as multiple dwellings and estates, however, had been nationalized. Consequently, the state created a Restitution Act early on (1990), so that people could reclaim properties unjustly taken from them. In addition, the state had built considerable housing units (usually high-rise apartment blocks); many of these units were simply rented to individual families. But there had also been state construction companies that operated as co-operatives, such that rent payments were credited toward the eventual ownership of the housing. Lastly, many large industries (state owned) had built housing units, which they rented to their employees. But there were not nearly enough housing units, and many people, especially young people, newlyweds, and elderly, were on waiting lists for housing. In all cases ‘rent’ was almost negligible as were utilities, and since there were no taxes or insurance, the total amount of a family budget spent for housing was, on average, quite meagre. This, then, was the situation confronting the new government in 1990. Beginning with data from 1988, this article examines the economic restructuring, apartment construction, changes in proprietary relations, and issues as yet unresolved regarding the privatization of housing in Slovakia.
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