Advisory Center for Affordable Settlements & Housing

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Document Type General
Publish Date 09/03/1995
Author
Published By The World Bank
Edited By Suneela Farooqi
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Cities Without Land Markets

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Document Type: General
Publish Date: March 1995
Primary Author: Alain BERTAUD and Bertrand RENAUD
Edited By: Suneela Farooqi
Published By: The World Bank

This paper describes the structure of Russian cities after seventy years of Soviet development. This is the longest socialist experience on record and its results are of paramount interest to urban economists. In the absence of price signals and economic incentives to recycle land over time, the administrative-command process has led to a startling pattern of land use. Its central feature is a perverse population density gradient which rises as one moves away from the center of the city. The Soviet city is also characterized by rusting factories in prime locations and distant residential areas in the suburbs. Such a structure tends to maximize the economic and social inefficiency of the socialist city and environmental ill-effects. Real estate prices are now emerging with market-oriented urban reforms.

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