Privatization is at the heart of structural reforms for the primary purpose of changing the structures of corporate governance in order to get them to behave efficiently and ensure their future on a long-term competitive basis [1] .
Privatization in Russia was taken up in the 90s and represents the largest property reform ever undertaken. While at the beginning of the decade all production took place within the state sector by 1998, about 70% of the GDP was contributed by the private sector [2]. The propagators of privatization in Russia (Gaidar, Yeltsin) utilized the pillar of “shock therapy” to enable transition and macroeconomic stabilization. The other three issues were price liberalization, the opening of the economy and fiscal restraint [3] .
Among the premises of privatization in Russia there are "prosaic" - motivation of Russian liberals to get rid of the old elite, economic - issues of incentives (inefficient state ownership due to the absence of a true owner whose interest is to enhance its capital privatization by ousting the state of the economy reduces its capacity for harm through inefficient decisions) [4] .
Russian privatization involves the following steps
A) Spontaneous privatization in the USSR: 1987-1991 [5] .Privatization, in the broadest sense of denationalization of the economy, started in 1987. Laws were written on individual economic activity giving each citizen the right to self-employment (1986), the Public Enterprise Act granted a large independent businesses as part of "market socialism" (1987) and a Law on Cooperatives was also written(1988).
Tags: privatization in Russia, Gaidar and Yeltsin – designers of Russian privatization, privatization in USSR
[...] Having adopted the system of the Golden Horde (all land belonged to Khan), the Russian state became the sole owner of the land and it was distributed according to the whims of the Tsar that could be withdrawn at any time. This country has not had a real feudal system and the period industrialization was too short and the private sector is getting stronger and gaining autonomy from the bureaucracy. From October 1917 the definitive abolition of this institution took place. It returned to the spotlight with the disappearance of the command economy in the late 1980s. [...]
[...] It offered various options for engaging in privatization but this was ultimately not implemented. In 1991, the dismantling of the USSR took place. This made it possible to make begin taking decisive actions to change property relations. They gradually radicalized the maturing of the political crisis and deepening economic hardship until it stabilized around the monetarist and neo-liberal positions in 1992. The Privatization program between 1992 and 1994: Before the Gaidar reform of 1992-1994 the share of the non-state sector remained relatively small. [...]
[...] BREDIKHINA (1999) "Some Economics of Privatization," published in the journal The legal settlement of the property market [SYMBOL 42 \ f "Symbol" \ s 12] [SYMBOL 42 \ f "Symbol" \ s 12] GLAGICHEV A., O. BREDIKHINA (1999) "Some Economics of Privatization," published in the journal The legal settlement of the property market LOCATELLI C. (2005) "Lessons from the privatization of the Russian oil sector," LEPII Department Energy and Environmental Policies December 2005, p. 9-12 [SYMBOL 42 \ f "Symbol" \ s 12] Same Same Under these conditions the adjustments took the form of unpaid labor and low wages in lieu of layoffs. [...]
[...] - A pre-privatization restructuring amount policy was to sell the profitable companies before the others. The Russian state ended up with firms in deficit, the lame ducks that were readily salable and expensive. - The social cost of transition had been compounded by the privatization of state enterprises when it managed a number of social services (hospitals, kindergartens, etc.) with their own funds. These were privatized without a true substitute for management of these organizations that were considered ‘additional' but were important for the population . [...]
[...] In late 2006 the state plans to cease its participation in non-strategic companies in which its share exceeds 50%. The main features of privatization in Russia include: - Free distribution of national wealth to citizens unlike most developed countries; - The application of various forms of privatization, while other countries implemented only one mode (sometimes with some modifications); - The universal nature of privatization; - The underestimation of the value of public assets that were to be privatized for the benefit of certain groups of people; - Low control and sometimes even its absence from the privatization process; - The transfer of assets pledged after the bankruptcy of companies and then to the ownership of pledges; - Privatization did not lead to technological modernization and restructuring ; - The fear of some authors of privatization of democratic ownership or property owned by employees. [...]
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