Privatization in Transition Countries: Lessons From the First Decade

Download or read book Privatization in Transition Countries: Lessons From the First Decade written by Oleh Havrylyshyn and published by International Monetary Fund. This book was released on 1999-09-06 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors' view is that any privatisation is better than none, regardless of whether a stable, competitive environment has been established first. However, private companies started from scratch perform best, followed by newly privatised firms run by outsiders, either local or foreign. Privatised companies dominated by insiders do less well, but even they regularly outperform state enterprises. Without an appropriate market environment though, managers may spend more time lobbying the government for support than undertaking painful restructuring measures.