Vertical Restructuring of the Infrastructure Sectors of Transition Economies

One important determinant of the speed and success of transition will be the efficiency of transformation and development of the infrastructure sectors. A great deal of attention has been paid to issues such as privatisation, restructuring, user prices, and terms of access in these sectors, regarding both developed and developing countries. Some issues regarding vertical restructuring are notable in the degree to which in different sectors and in different locations they raise similar questions that may have very different answers. This paper suggests a framework for answering such questions and seeks to apply it to the railroad, electricity, and telecommunications sectors in Russia, Lithuania, Romania, and Poland.