Going to market : privatization in Central and Eastern Market Europe
The ultimate objective of economic reforms in Central and Eastern Europe is the creation of flexible and efficient market economies. Attaining this objective requires comprehensive action on at least four fronts: macro-economic stabilization, price and market reforms, privatization of state enterprises, and redefining the role of the state. Each of these is a momentous undertaking, and none of these can succeed without considerable and simultaneous progress in the other areas. This paper discusses primarily issues and options in the privatization of large industrial enterprises. The authors explain the key choices to be made in privatization: which state assets should be privatized, whether assets should be sold or given away, how to physically andfinancially restructure enterprises to meet present realities, and what role to allow foreign investors.
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