Original scientific paper
PRIVATIZATION PARADOXES IN EAST AND CENTRAL EUROPE
Yudit Kiss
; UNU, World Institute of Development Economic Research, Geneva
Abstract
ln the last three years privatization has become a keyword of the
epochal socioeconomic transitions taking place in East Central
Europe. In economic terms privatization is expected to create an
efficient, competitive, fUlly fledged market economy, able to pull
out the region's countries from their recession. In political terms it
appears as a guarantee that the radical changes will remain
irreversible and that through the redistribution of economic and
political assets wide-reaching democracy and social justice will
be achieved. Far from these high expectations at present all
Hungary, Czechoslovakia and Poland suffer from a deep crisis,
still decaying outputs and living standards, growing
unemployment and social inequalities. Although the question of
ownership seems to dominate both the media and political
decision-making centers, privatization is taking place slowly and
amidst major contradictions. The bulk of the economy is still int
state property, without clear concepts about its management,
economically dubious reprivatization and restitution schemes
burden the budgets, the inflow of foreign capital is smaller than
expected, and local private entrepreneurs still have to struggle with
state bureaucracy, unfavorable business enviroment and lack of
captial. At the same time through privatization the state managed
to preserve a significant share of its economic and political power,
and use it for an uncontrolled redistribution of economic and
political assets. The paper gives an up-to-date "snapshot" of the
main methods, institutions and first results of privatization in
Hungary, Poland and Czechoslovakia. The second part intends
to draw some conclusions and point out some paradoxes that
became visible in the light of practical experience during the last
two years.
Keywords
Hrčak ID:
32633
URI
Publication date:
1.1.1993.
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