Privatisation in Russia - a successful experiment on the way to a market economy?

Term Paper , 2003 , 25 Pages , Grade: 1,0

Cultural Studies - East European Studies

ABSTRACT

Dieser Aufsatz beschäftigt sich mit der Umsetzung der Privatisierung in Russland im Rahmen des Transformationsprozesses. Die Umwandlung von Staats- in Privateigentum in einer ehemaligen sozialistischen Planwirtschaft galt als einer der konstituierenden Grundbausteine beim Aufbau einer Marktwirtschaft. Hierzu musste ein umfangreiches Privatisierungsprogramm erarbeitet und umgesetzt werden. Die Besonderheit in der ehemaligen Sowjetunion bestand dabei vor allem darin, dass es für eine derart weit reichende Privatisierung fast sämtlicher Industriezweige innerhalb kürzester Zeit bis dato noch kein praktisches Äquivalent gab, an dem man sich hätte orientieren können.

Westliche Ökonomen, die als Berater der russischen Reformer wesentlichen Einfluss auf das Programm nahmen, legten bei ihren Annahmen und Zielen neoklassische Wirtschaftstheorien zugrunde, die im wesentlichen rationale und nutzenmaximierende Akteure voraussetzen. Sie hatten jedoch relativ wenig Erfahrung mit dem tatsächlichen Verhalten russischer Akteure.
Woran diese westlichen Ansätze bei ihrer praktischen Umsetzung scheiterten, wird der folgende Aufsatz versuchen zu beschreiben.

Einige der zu erwartenden Restriktionen des Privatisierungsprozesses, wie z.B. die ungünstigen ökonomischen und rechtlichen Rahmenbedingungen, politische Instabilität und das wahrscheinliche Fortbestehen bestimmter informeller Netzwerke, waren den Reformern durchaus bewusst und konnten dementsprechend teilweise bei der Planung Berücksichtigung finden. Zur inhaltlichen Eingrenzung soll in diesem Aufsatz jedoch nur auf jene Faktoren eingegangen werden, die größtenteils unterschätzt wurden, und welche sich auch als nur schwer beeinflussbar erwiesen. Hierbei wird insbesondere auf kulturelle Werte im Sinne von über Jahrzehnte erlernter Verhaltensweisen und Denkmodelle, auf Informationsdefizite, die Rolle von Kriminalität und auf die (erhofften) neuen Anreize der beteiligten Akteure eingegangen. Diese anfänglichen Reaktionen auf die Privatisierung, die eben nicht der Theorie des Homo Oeconomicus entsprachen, behinderten die Umsetzung der angestrebten Ziele. Daher zieht der letzte Teil Bilanz, inwieweit diese von den Reformern geplanten Ziele verwirklicht werden konnten.

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Inhaltsverzeichnis (Table of Contents)

• Introduction
• Conceptual Basics of the Privatisation process
  • Aims and tasks of privatisation
  • Different strategies of putting privatisation into action
  • Consequences for ownership
  • Special features of the Russian case
• The course of privatisation in Russia
  • The Privatisation Program
  • Privatisation in its practical implementation
• Underestimated difficulties in achieving the aims
  • Cultural values
  • Information deficits
  • The role of crime
  • Management initiative and incentives for restructuring
  • Incentives for restructuring on the part of workers
• Summary and conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This paper examines the implementation of privatization in Russia during the transition process. The conversion of state to private property in a former socialist planned economy was considered one of the constituent cornerstones in building a market economy. This required the development and implementation of an extensive privatization program. The peculiarity in the former Soviet Union was that there was virtually no practical equivalent for such a far-reaching privatization of almost all industries within a very short period of time on which to base its implementation. Western economists, who, as advisors to Russian reformers, had a significant influence on the program, based their assumptions and goals on neoclassical economic theories, which essentially presuppose rational and utility-maximizing actors. However, they had relatively little experience with the actual behavior of Russian actors. This paper will attempt to describe where these Western approaches failed in their practical implementation. Some of the expected restrictions of the privatization process, such as unfavorable economic and legal frameworks, political instability and the likely persistence of certain informal networks, were known to the reformers and could therefore be partially taken into account during planning. However, this paper will only focus on those factors that were largely underestimated and proved to be difficult to influence. This will specifically address cultural values in terms of decades of learned behaviors and thought patterns, information deficits, the role of crime, and the (expected) new incentives of the actors involved. These initial reactions to privatization, which did not correspond to the theory of Homo Oeconomicus, hampered the implementation of the desired goals. The final part therefore takes stock of the extent to which the goals planned by the reformers could be realized. In order to limit the topic in terms of time, the paper focuses on the particular problem of privatization of large and medium-sized enterprises in the first and most critical phase of reform implementation until the end of the “voucher privatization.”

• The challenges of transitioning from a socialist planned economy to a market economy in Russia
• The implementation and consequences of privatization in a post-socialist context
• The impact of cultural values, information deficits, and crime on the privatization process
• The role of Western economic theory and its limitations in understanding the Russian context
• The assessment of the effectiveness of the privatization program in achieving its objectives

Zusammenfassung der Kapitel (Chapter Summaries)

• Introduction: This chapter sets the stage by highlighting the complexities of privatization in Russia, emphasizing the need for a deeper understanding of the underlying objectives, theoretical frameworks, and practical challenges involved. It outlines the scope of the paper, focusing on the privatization of large and medium-sized companies during the early transition period.
• Conceptual Basics of the Privatisation process: This chapter delves into the theoretical foundations of privatization, exploring the economic rationale behind this fundamental reform. It outlines the aims and tasks of privatization, including the creation of incentives, stimulation of entrepreneurial activity, and the establishment of a more efficient and competitive market economy. The chapter also discusses the crucial roles of depoliticization and institutional restructuring in achieving these objectives.
• The course of privatisation in Russia: This chapter examines the practical implementation of privatization in Russia. It explores the details of the privatization program, including the strategies employed and the specific challenges faced. The chapter highlights the complexities of implementing market-oriented reforms in a society shaped by communism, emphasizing the unique challenges and opportunities presented by the Russian context.
• Underestimated difficulties in achieving the aims: This chapter delves into the obstacles that emerged during the privatization process. It identifies several critical factors that were not adequately considered in the initial planning stages, including the influence of cultural values, information deficits, the role of crime, and the impact of incentives on management and workers. These factors significantly hindered the smooth implementation of the privatization program and ultimately contributed to its mixed outcomes.

Schlüsselwörter (Keywords)

The central keywords and focus topics of this paper encompass the complexities of privatization in Russia, particularly during the early transition from a socialist planned economy to a market economy. Key concepts include the transfer of ownership from the state to private hands, the role of Western economic theory and its limitations in a post-socialist context, the impact of cultural values and information deficits on the implementation process, and the challenges posed by crime and informal networks. The paper examines the various aims and tasks of privatization, including the stimulation of entrepreneurial activity, the creation of incentives for efficient resource allocation, and the establishment of a competitive and dynamic market economy. It also analyzes the obstacles and difficulties encountered during the implementation of the privatization program, offering insights into the factors that contributed to its mixed outcomes.

• College: European University Viadrina Frankfurt (Oder)
• Course: Reforming Russia - Objectives and Obstacles. Seminar: MA, Soziale Bewegungen-Institutionen-Kulturelle Orientierungen
• Grade: 1,0
• Author: Christine Polzin (Author)
• Publication Year: 2003
• Pages: 25
• Catalog Number: V53817
• ISBN (eBook): 9783638491594
• ISBN (Book): 9783640858873
• Language: English
• Tags: Privatisation, Russia, Reforming, Russia, Objectives, Obstacles, Seminar, Soziale, Bewegungen-Institutionen-Kulturelle, Orientierungen