Abstract

Spontaneous settlements, known as gecekondus, now constitute half or more of the housing stock in Turkey's major cities. They are often ill provided with infrastructure and urban services, to the detriment of their residents. A recent (1996) research project sought to understand this problem by using the analytical framework of new institutional economics. In theory, rules should create incentives that shape the behavior of infrastructure providers. In fact, the research discovered that formal rules are largely ineffective. Instead, in the absence of credible formal rules, pressures are exerted that shape informal operating procedures. This and other findings of the research work which are of relevance to both practitioners and theorists of urban development are elaborated upon.

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