Russian Privatisation: Approaches and Consequences

Author:

Andreff V.1

Affiliation:

1. Université Paris 1 Panthéon-Sorbonne

Abstract

The article analyses privatisation processes in post-Soviet economies from a Coasian standpoint, with a focus on the Russian privatisation strategy, since its designers have attempted to justify it by references to the Coase theorem. However, more political targets have basically inspired the major programmes of privatisation in post-Soviet economies. The analysis shows that mass privatisation has benefited insiders, first of all incumbent managers. Although cash privatisation has reallocated a part of privatised assets, insiders and "oligarchs" still remain major winners. The latter took advantage of the rigged and infamous loans for shares scheme of privatisation which main effect was to stop the privatisation drive. Privatisation has recently been resumed on a case-by-case basis.

Publisher

NP Voprosy Ekonomiki

Subject

Economics and Econometrics,Finance

Reference21 articles.

1. Aghion P., Blanchard O.On Privatization Methods in Eastern Europeand Their Implications // Economics of Transition, 1998, vol. 6, No 1.

2. Alexeev M. The Effect of Privatization on Wealth Distribution in Russia // Economics of Transition, 1999, vol. 2, No 7.

3. Andreff W. Corporate Governance of Privatized Enterprises in Transforming Economies: A Theoretical Approach // MOCT-MOST. Economic Policy in Transitional Economies, 1996, vol. 2, No 6.

4. Andreff W. French Privatization Techniques and Experience: A Model for Central-Eastern Europe? In: Targetti F. (ed.). Privatization in Europe: West and East Experiences. Aldershot, Dartmouth, 1992.

5. Andreff W. Privatisation and Corporate Governance in Transition Countries: Beyond the Principal-Agent Model. In: Rosenbaum E., Bünker F., WagenerH.-J.(eds.). Privatization, Corporate Governance and the Emergence of Markets. London: Macmillan, 2000.

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