Publisher's Synopsis
This book analyzes the problems of privatization of individual firms, whole industries and economic systems in post-socialist countries. The interaction of supply-side adjustment, macroeconomic change and policy regime shifts are emphasized in the theoretical discussion of privatization. Privatization strategies and experiences of Poland, Hungary, the ex-CSFR and the former GDR are analyzed. Speed, scope and structure of privatization policies depend upon the legacy of socialist distortions and the preferred policy orientation with respect to internal and international liberalization. Foreign direct investment is crucial for transformation, but FDI cannot replace domestic competition policies. Multinational companies? impulses are decisive for economic as well as political reasons in the whole of Europe. Western policies should support transformation by specific strategies.
