Chapter 3 Mass privatization in transition economies

Abstract

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.

Citation

Kopf, D., Lieberman, I.W. and Desai, R.M. (2007), "Chapter 3 Mass privatization in transition economies", Lieberman, I.W. and Kopf, D.J. (Ed.) Privatization in Transition Economies: The Ongoing Story (Contemporary Studies in Economic and Financial Analysis, Vol. 90), Emerald Group Publishing Limited, Leeds, pp. 137-172. https://doi.org/10.1016/S1569-3759(07)00003-4