The distribution of state property to the private sector has always been and will continue to be intensely political. Relinquishing hiring, production, investment, and other enterprise decisions constitute a significant loss of potential rents to those who exercise control rights in state-owned enterprises. Additionally, the large transfer of wealth that privatization on a large-scale entails, combined with the potential for unemployment, loss of access to enterprise-based social services (which were substantial in state-socialist economies) threatens to undermine public support for privatization and reform in general.
Kopf, D., Lieberman, I. and Desai, R. (2007), "Chapter 3 Mass privatization in transition economies", Lieberman, I. and Kopf, D. (Ed.) Privatization in Transition Economies: The Ongoing Story (Contemporary Studies in Economic and Financial Analysis, Vol. 90), Emerald Group Publishing Limited, Bingley, pp. 137-172. https://doi.org/10.1016/S1569-3759(07)00003-4Download as .RIS
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