For the time of the Cold War, there was a conflict between two different economic orders. On the one hand, the United States was a liberal thanks to the International Monetary Fund and the General Agreement on Tariffs and Trade.
On the other hand, there was the Soviet socialist union that was organized with the Council of Mutual Economic Assistance and the bilateral agreements established with other planned economies.
The excerpt provides an example of the regulating zoning responsibility of the local government. This can be proven with the definition of zoning which is; divide into or assign to zones, in particular. When compared to the example provided the definition seems to fit.