Privatization in Eastern Europe: The Case of Poland

The transformation of the Eastern European economies into market economies requires comprehensive action on three fronts: macroeconomic stabilization, liberalization of economic activity, and privatization of state-owned enterprises.1 Each of these is a monumental task. Nonetheless, privatization stands out as the most difficult and novel of the three, both conceptually and politically. There are enormous challenges in transferring state-owned property — which constitutes around 90 per cent of industrial capital in Eastern Europe — to private hands in a manner that is rapid, equitable, and fiscally sound, and that accomplishes two fundamental goals: the efficient operation of the resulting private enterprises and the development of efficient capital markets.KeywordsCorporate GovernanceMutual FundCommercial BankPension FundOwnership StructureThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.