Comparison of Privatization in the Republic of Croatia and Selected Former Communist Countries

Abstract

The paper deals with privatization processes in five selected countries of the communist regime and their comparative analysis. Most countries have historically encountered the need to privatize state-owned enterprises. A closed and inefficient economic system would reach the brink of resilience and change was necessary. Privatization was a conceptual solution. Due to diversified economic systems, internal social and political differences, as well as the complexity of the privatization process itself, the ways in which it has been implemented vary greatly from country to country. However, the aspiration has generally always meant overall economic improvement, and the implementation of rapid, formal, as painless as possible, preferably spontaneous, and transparent privatization. Still, everything took place in several stages and there was a mass, and most often coupon, privatization in one of the phases. It was concluded that each privatization process is specific, but there are still some overlaps. The main distinguishing criteria are related to the approach towards privatization (modular or inflexible) as well as centralization (Croatia, Czechoslovakia, and Poland) and decentralization (Slovenia and Hungary) of the system that implements and controls privatization. In addition, in some countries there has been a lack of public support due to numerous embezzlements, frauds and attempts to exploit positions of power at a given time, while on the other hand orderliness, legitimacy, and innovation have resulted in an in-flow of foreign capital and successful privatization supported by the public.

Keywords

• privatization
• Republic of Croatia
• communist countries