A critical assessment of privatization in transition economies: Quantity is not quality

The author seeks an answer to the question what the unheeded practical and theoretical issues backing both the quantitative success and the quantitative failure story of privatisation are? Among those listed in this paper, management coalitions, the blurred dividing line between shareholders and stakeholders, the relative importance of ownership and management, financial-industrial groups, interlocking directorates, the violation of shareholders4 rights and the corrupted redistribution of capital and property rights are included. From a brief examination of such issues the author would derive which are the still tricky problems that remain to be solved in the second stage of the privatization process and that are to be analyzed in the near future.