The most realistic way to create conditions for competition and entrepreneurial activity is the privatization of state property. The privatization process has been proclaimed in almost all countries that have adopted a market orientation. The formation of limited liability companies and joint-stock companies is becoming the most characteristic and widespread direction of it.
In addition, various forms of cooperation are developing, as well as the sale of part of state property, especially small enterprises, directly to private individuals.
However, the haste in carrying out privatization revealed a number of difficulties. One of the main problems is related to the difficulties of a reasonable assessment of the property subject to denationalization. Insufficient attention to this problem, for example in Hungary, led to the fact that part of the property began to be sold, including to foreign owners, for a song, speculation in shares arose when a narrow circle of business leaders bought them at a symbolic price, and sold them many times more expensive, etc. Similar phenomena, called "wild privatization" also arose in Poland. As a result, a hasty sale was stopped in both countries and much attention was paid to the valuation of property with the involvement, as a rule, of Western experts. Moreover, in conditions when the capital market and the property collateral system have not yet developed, it is much more difficult to give an objective assessment of its value than in a developed market economy. In order to streamline the privatization process in a number of countries, special state institutions have been established in charge of state property and all issues of its sale.
Accordingly, the process of denationalization of property is not fast. Its pace largely depends on the principles that form the basis of privatization. One approach is based on the belief that state-owned enterprises, while they are in the majority, are not able to master entrepreneurial behavior. This position is defended, in particular, by Janos Kornai in the book "An Impetuous pamphlet on the transition to the market", Hence his two slogans: hands off private property and get your hands on state property, that is, not to give state-owned enterprises full market freedom.
The policy of privatization in Poland proceeds from the inability of state-owned enterprises to entrepreneurship. It is generally accepted there that various state-owned enterprises cannot be shareholders, but only private individuals and cooperatives (although exceptions are made for a number of large enterprises). Proceeding from this, it was planned to privatize several dozen enterprises during 1990, and in 3 years, according to Polish experts, this process will be able to cover about 15% of the capital of industry. airlines.aero
