Privatization and post-communist economic transformation (critical analysis of the experiences of Central, Eastern Europe and the Baltic States) (პრივატიზაცია და პოსტკომუნისტური ეკონომიკური ტრანსფორმაცია (ცენტრალური, აღმოსავლეთ ევროპის და ბალტიის ქვეყნების გამოცდილების კრიტიკული ანალიზი))

Privatization is a dividing line between the administrative-command system and the market economy. After the collapse of the Soviet bloc, the process of post-communist transformation began in Central, Eastern European countries and the former “Union Republics”, the content and main direction of which was determined by the privatization of state property. In the post-communist transition period, privatization was characterized by both -general and specific signs. Based on the research, two groups of countries were identified. Some post-communist countries (Poland, Hungary, Czech Republic) and post-soviet country (Estonia) have successfully privatized and achieved high positive results: increased the efficiency of privatized enterprises, improved corporate governance, modernized technology, attracted foreign technology and Know-How, has been created a highly competitive environment, fiscal discipline has been raised, and so on. In countries where privatization has been flawed, the desired results have not been achieved. On the contrary, privatization has become a serious source of severe economic crisis and deepening social tensions. Due to the phenomenon of privatization, one of the “mysterys “ of the postcommunist transition period can be explained: countries that were in an almost equal starting position at the initial stage of systemic transformation, are today significantly different in terms of economic development and living standards. The main reason for such differentiation is the different effectiveness of privatization in these countries.
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Post-communist systemic transformation, privatization, voucher, stock market, restitution, restructuring
Economics and Business, №1, 2021, pp. 115-130