Managerial Strategies for Spontaneous Privatization

Abstract

Two Western economists examine the rapid changes in property and business forms of enterprises in the former Soviet Union using evidence from intensive interviews conducted through December 1991 and involving 80 industrial and commercial organizations. After reviewing the reforms that provided the legal basis for the process, they describe different managerial strategies employed in spontaneous privatization and examine the ensuing changes in contractual relations of firms with other entities such as ministries or banks. The authors also interpret spontaneous privatization on the basis of literature covering property rights and identify several groups that lose or derive benefits from the transformation. Journal of Economic Literature, Classification Numbers: P20, L2.

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