IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/770.html
   My bibliography  Save this paper

Privatization in Eastern and Central Europe : objectives, constraints, and models of divestiture

Author

Listed:
  • Dhanji, Farid
  • Milanovic, Branko

Abstract

This paper is devoted largely to a taxonomic discussion of objectives, constraints, and models of divestiture in privatization programs, but the authors also present some concluding observations. The plethora of divestiture options makes choice difficult. From an individual government perspective, the choice of preferred model will vary depending on the objectives, the weights given to the objectives, and the estimation of practical difficulties in implementation. In this respect, there is no correct answer about how to privatize. Decisions are highly political, mediated through still inchoate political processes, invoking strong interests and lobbies, and with a genuine possibility of popular backlash in societies sensitive to wide discrepancies in wealth. The paper considers various objectives of privatization programs in the region. The environment for divestiture is described and the constraints and barriers to privatization delineated. The authors conclude with an analysis of the more prominent models advanced for privatization, with a discussion of advantages and disadvantages.

Suggested Citation

  • Dhanji, Farid & Milanovic, Branko, 1991. "Privatization in Eastern and Central Europe : objectives, constraints, and models of divestiture," Policy Research Working Paper Series 770, The World Bank.
    • Handle: RePEc:wbk:wbrwps:770
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1991/09/01/000009265_3961001232804/Rendered/PDF/multi0page.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nellis, John R., 1988. "Contract plans and public enterprise performance," Policy Research Working Paper Series 118, The World Bank.
    2. Kornai, Janos, 1986. "The Hungarian Reform Process: Visions, Hopes, and Reality," Journal of Economic Literature, American Economic Association, vol. 24(4), pages 1687-1737, December.
    3. Bishop, Matthew R. & Kay, John A., 1989. "Privatization in the United Kingdom: Lessons from experience," World Development, Elsevier, vol. 17(5), pages 643-657, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Feldmann, Horst, 1993. "Die Eigentumstheorien Lockes und Humes und ihre Lehren für den Aufbau privatwirtschaftlicher Eigentumsordnungen in den Transformationsländern," Tübinger Diskussionsbeiträge 30, University of Tübingen, School of Business and Economics.
    2. Nigel Harris & David Lockwood, 1997. "The war-making state and privatisation," Journal of Development Studies, Taylor & Francis Journals, vol. 33(5), pages 597-634.
    3. R. Daviddi, 1994. "Privatisation in the transition to a market economy," BNL Quarterly Review, Banca Nazionale del Lavoro, vol. 47(191), pages 399-429.
    4. R. Daviddi, 1994. "Privatisation in the transition to a market economy," Banca Nazionale del Lavoro Quarterly Review, Banca Nazionale del Lavoro, vol. 47(191), pages 399-429.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andres, Luis Alberto & Guasch, Jose Luis & Azumendi, Sebastian Lopez, 2011. "Governance in state-owned enterprises revisited : the cases of water and electricity in Latin America and the Caribbean," Policy Research Working Paper Series 5747, The World Bank.
    2. Bozec, Richard, 2004. "L’analyse comparative de la performance entre les entreprises publiques et les entreprises privées : le problème de mesure et son impact sur les résultats," L'Actualité Economique, Société Canadienne de Science Economique, vol. 80(4), pages 619-654, Décembre.
    3. Chari, Murali D.R. & Banalieva, Elitsa R., 2015. "How do pro-market reforms impact firm profitability? The case of India under reform," Journal of World Business, Elsevier, vol. 50(2), pages 357-367.
    4. Mehrdad Vahabi, 2021. "Introduction: a special issue in honoring Janos Kornai," Public Choice, Springer, vol. 187(1), pages 1-13, April.
    5. Claessens,Constantijn A. & Djankov, Simeon, 1998. "Politicians and firms in seven central and eastern European countries," Policy Research Working Paper Series 1954, The World Bank.
    6. Mehrdad Vahabi, 2022. "In Janos Kornai’s memory," Public Choice, Springer, vol. 190(3), pages 265-271, March.
    7. Aizenman, Joshua, 1993. "Soft Budget Constraints, Taxes, and the Incentive to Cooperate," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 34(4), pages 819-832, November.
    8. Lehmann, Hartmut, 2012. "The Polish Growth Miracle: Outcome of Persistent Reform Efforts," IZA Policy Papers 40, Institute of Labor Economics (IZA).
    9. González de la Fe, Pedro, 1998. "Las cuentas de las privatizaciones: el caso de Seat," DEE - Documentos de Trabajo. Economía de la Empresa. DB 6398, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    10. Simeon Djankov & Stijn Claessens, 1997. "Enterprise Performance and Managers' Profiles," William Davidson Institute Working Papers Series 115, William Davidson Institute at the University of Michigan.
    11. Ghosh, Saibal, 2008. "Does divestment matter for firm performance?: Evidence from the Indian experience," Economic Systems, Elsevier, vol. 32(4), pages 372-388, December.
    12. Qian, Yingyi & Xu, Cheng-Gang, 1993. "Why China's economic reforms differ: the m-form hierarchy and entry/expansion of the non-state sector," LSE Research Online Documents on Economics 3755, London School of Economics and Political Science, LSE Library.
    13. Huang, Haizhou & Xu, Chenggang, 1999. "Financial institutions and the financial crisis in East Asia," European Economic Review, Elsevier, vol. 43(4-6), pages 903-914, April.
    14. Vahabi, Mehrdad, 1997. "De l’économie de la pénurie à l’économie politique du communisme. Sur l’évolution récente de la pensée économique de Janos Kornai : 1980-1996 [Economics of Shortage and Political Economy of Communi," MPRA Paper 80026, University Library of Munich, Germany, revised 1997.
    15. Harper, Joel T., 2002. "The performance of privatized firms in the Czech Republic," Journal of Banking & Finance, Elsevier, vol. 26(4), pages 621-649, April.
    16. Leonard Kukić, 2021. "The Nature Of Technological Failure: Patterns Of Biased Technical Change In Socialist Europe," Journal of Economic Surveys, Wiley Blackwell, vol. 35(3), pages 895-925, July.
    17. Lindbeck, Assar, 1998. "Swedish Lessons for Post-Socialist Countries," Working Paper Series 498, Research Institute of Industrial Economics.
    18. Yingyi Qian, 1999. "The Institutional Foundations of China's Market Transition," Working Papers 99011, Stanford University, Department of Economics.
    19. Pranab Bardhan, 1992. "Economics of Market Socialism and the Issue of Public Enterprise Reform in Developing Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 31(4), pages 565-579.
    20. Christoph Bühler & Dirk Konietzka, 2008. "The transition from school to work in Russia during and after socialism: change or continuity?," MPIDR Working Papers WP-2008-018, Max Planck Institute for Demographic Research, Rostock, Germany.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:770. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.