Plans for public property privatization in Perm krai: economic evaluation

Abstract

In the article an attempt has been made to explain inefficiency of privatization held in Perm Krai since privatization policy should be evaluated not only by quantitative characteristics and the amount of means going into the budget but also by welfare and social infrastructure development. The article contains some scientific postulates of Marxist economic theory and those of institutional economics concerning property rights. A complex analysis of the public property privatization process in Perm Krai was made, which revealed that privatization results had not met the goals set. Thus, it is essential to investigate thoroughly the efficiency of government enterprises privatization in the region. Obviously, public property privatization, as it is now, does not meet the goals stated and is economically inexpedient. The data on public property involved into the process of privatization were systematized, which helped to specify the purpose of public property management and give some recommendations on its use. The dynamics of legal regulation of economic and social relations was also analyzed. It has been found that assessment of property subject to privatization is essential. Basing on the general scientific method to analyze and compare economic problems concerning approximate plans for the regional property privatization, the author suggested changing the mechanism of property transition from public property into assets. When considering the issues of public property privatization, special attention should be paid to the use of concessional agreements and public-private partnership agreement. The conclusions drawn by the author could be used when developing concepts, strategies, prognoses, road maps and other programs concerning privatization of public property at the regional and municipal levels.