Is Privatization Affecting the Activity of Enterprises?
Yuri Perevalov (),
I. Gimadi and
Problems of Economic Transition, 2000, vol. 42, issue 11, 35-50
In 1992, Russia joined the large group of countries that have carried out sweeping privatization programs in the past two decades. According to some estimates, more than 15,000 state enterprises (not counting those in the former socialist countries) were privatized around the world in 1980-92 alone, most of these in the 1990s. Specialists cite various reasons that governments resort to privatizing a state enterprise (SE), from limiting bureaucratic power to creating popular capitalism. But the fundamental reason is undoubtedly economic—the need to improve the efficiency of SEs and reduce the burden on the state budget. Raising enterprise efficiency was one of the most important goals of privatization in Russia as well, at least as it was proclaimed in official programs for privatizing state and municipal enterprises.
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