Privatization and Corporate Governance: Some Lessons from the Experience of Transitional Economies

Abstract

All former planned economies have started privatization programmes: some (Central and Eastern European Countries) are more advanced in transferring property from the state to individuals, others (mostly former Soviet Republics other than Russia) are just starting. Different methods of privatization have been implemented, ranging from mass privatization through voucher schemes to direct sales of enterprises (often to foreigners), and from spontaneous privatization to well-organised transfers of property rights to employees. These different methods have brought about different models, or structures, of corporate governance that affect the way enterprises are responding to market signals, and, more broadly, to the stimuli of the emerging market environment.

The authors would like to thank Rauf Gonenc, Vincent Koen and Silvana Malle for valuable comments on an initial draft. The views expressed in the paper are those of the authors and do not reflect those of the OECD nor of its member countries.