The study examines the adjustment process in the domestic urban water sector during the transition to market economy in Hungary focusing on the problems generated around the affordability issue. The study argues that after the public housing privatisation, the newly formed condominiums were major intermediaries that have substantial role in reordering the relations in the water sector. Their role is seen important in taking part in restructuring the governance of the urban water system by helping conflict resolution, forming new practices and affecting the amendment of regulation. It focuses on the questions how condominiums mediate conflicts around water affordability.

As a part of Framework 5 Programme, a cases study has been conducted on the role of condominiums in the area of the water sector after transition (1990).

“Intermediaries” is an international research project funded by the European Commission under the Framework 5 Programme Key Action “Sustainable Management and Quality of Water” (contract EVK1-CT-2002-00115) Duration: 11/2002 – 10/2005

The research concluded that by replacing the big state owned management companies, the new condominiums provided space for innovative behaviour. In the new fragmented institutional structure the individual “players” (institutions and households) followed a rather self-interested strategy in order to decrease their economic and political costs (and losses).This institutional fragmentation has created a more transparent system, where different actors’ interests and endeavors became more direct and clear, which force the legislators and regulators to react and develop new forms of governance.

Metropolitan Research Institute, Budapest
Hungary
http://www.mri.hu
Mr József Hegedűs, tel. +36 1 217 9041

01/03/2006

Mr József Hegedüs and Mrs Eszter Somogyi

research

Urban Policy > Housing

Housing policy, Housing management