Lessons from Eastern Europe's voucher privatization.

A number of years have passed since the failure of shock therapy to generate a vibrant market economy in Russia, and the unpleasant truths about Russian privatization are slowly emerging. Some of the architects of the original plans have acknowledged that their strategies were naive, incomplete, or...

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Published in:Challenge (05775132) Vol. 44; no. 4; pp. 14 - 38
Main Author: Ellerman, David
Format: Article
Published: M.E. Sharpe Inc. July/August 2001
Subjects:
Online Access:View this record in EBSCOhost
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        atl: Lessons from Eastern Europe's voucher privatization.
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        au: Ellerman, David
      su:
        Voucher system (Public welfare)
        Privatization
        Eastern Europe
      sug:
        subj:
          Eastern Europe
          Voucher system (Public welfare)
          Privatization
      ab: A number of years have passed since the failure of shock therapy to generate a vibrant market economy in Russia, and the unpleasant truths about Russian privatization are slowly emerging. Some of the architects of the original plans have acknowledged that their strategies were naive, incomplete, or overly ambitious, whereas others insist that there were no viable alternatives. Moreover, although some critics have taken easy potshots at the blatantly corrupt loans-for-shares privatization scheme, the lessons of the earlier voucher privatization—whereby vouchers or coupons to buy assets being privatized are distributed free, or for a nominal processing charge, to all citizens—are far more revealing. A discussion is provided on why voucher privatization was such a popular reformist tool and why it was doomed from the start.
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    language: English
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