Shock Privatization: The Effects of Rapid Large-Scale Privatization on Enterprise Restructuring

Lawrence King

Politics & Society, 2003, vol. 31, issue 1, 3-30

Abstract: The neoliberal-inspired “shock therapy†policies were designed to allow efficiency considerations to shape the new capitalist economies. Most experts theorized that these policies would enable postcommunist countries to close the gap with the West. After more than a decade, this prediction has been falsified. Fieldwork in 25 Russian firms demonstrates that the neoliberal prescription of mass privatization creates shocks that make successful enterprise restructuring almost impossible. Instead, most firms lower their technological level of production and retreat to nonmarket activity to survive. The result is a poorer economy with less growth potential and thus increased divergence with the West.

Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/0032329202250157 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:polsoc:v:31:y:2003:i:1:p:3-30

DOI: 10.1177/0032329202250157

Access Statistics for this article

More articles in Politics & Society
Bibliographic data for series maintained by SAGE Publications ().