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The Spontaneous Solution: Bottom-up Privatization

In: Privatization and its Limits in Central and Eastern Europe

Author

Listed:
  • Hella Engerer

    (German Institute for Economic Research)

Abstract

Bottom-up privatization, meaning the creation of private enterprises ex nihilo, received very little attention in contrast to privatization “from above” at the beginning of transformation.1 The assumption was that after the liberalization of economy and legal permission of private property, decisive conditions were set to have private enterprise develop on its own. The few economists (such as Murrell (1992:15ff)) who attributed an important role to bottom-up privatization, even held the opinion that alone through the establishment of new business the private sector would increase quickly and that thus the state sector whose privatization would be costly should not be forced since it would automatically lose importance.

Suggested Citation

  • Hella Engerer, 2001. "The Spontaneous Solution: Bottom-up Privatization," Studies in Economic Transition, in: Privatization and its Limits in Central and Eastern Europe, chapter 14, pages 235-244, Palgrave Macmillan.
    • Handle: RePEc:pal:stuchp:978-0-230-52300-5_15
    DOI: 10.1057/9780230523005_15
    as

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