1991
DOI: 10.1080/08826994.1991.10641340
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Managerial Strategies for Spontaneous Privatization

Abstract: Two Western economists examine the rapid changes in property and business forms of enterprises in the former Soviet Union using evidence from intensive interviews conducted through December 1991 and involving 80 industrial and commercial organizations. After reviewing the reforms that provided the legal basis for the process, they describe different managerial strategies employed in spontaneous privatization and examine the ensuing changes in contractual relations of firms with other entities such as ministrie… Show more

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Cited by 54 publications
(11 citation statements)
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“…When the second law of cooperatives (May 1988) allowed managers of state-owned enterprises to create spin-off firms, they responded by privatizing the most profitable of their firms' assets and selling production at inflated rates. Most of the capital for these ventures came from criminals who had amassed fortunes in the second economy (Foglesong & Solomon, 2001;Jones & Moskoff, 1991;Sergeyev, 1998).The 1990 Law on Small Enterprises created an easy method for the purchase of the most valuable parts of state firms at low prices, and facilitated spontaneous privatization (Johnson & Kroll, 1991). After 1990, the growth of private and quasi-private business also led to financial institutions becoming closely tied to criminals.…”
Section: Monopoly Over Private Property Ends: Spread Of Ownershipmentioning
confidence: 96%
“…When the second law of cooperatives (May 1988) allowed managers of state-owned enterprises to create spin-off firms, they responded by privatizing the most profitable of their firms' assets and selling production at inflated rates. Most of the capital for these ventures came from criminals who had amassed fortunes in the second economy (Foglesong & Solomon, 2001;Jones & Moskoff, 1991;Sergeyev, 1998).The 1990 Law on Small Enterprises created an easy method for the purchase of the most valuable parts of state firms at low prices, and facilitated spontaneous privatization (Johnson & Kroll, 1991). After 1990, the growth of private and quasi-private business also led to financial institutions becoming closely tied to criminals.…”
Section: Monopoly Over Private Property Ends: Spread Of Ownershipmentioning
confidence: 96%
“…10 See Jones and Moskoff (1991) for a detailed analysis of the Russian co-operatives in the late 1980s. 11 Such rent-seeking efforts were described in a number of sources, including Boycko et al (1995), , and Johnson and Kroll (1991). A particularly vivid description of rent-seeking during privatization is contained in Zubakin (1994).…”
Section: The Rent-seeking Nature Of Enterprise Privatizationmentioning
confidence: 99%
“…Their goal is to create a pluralism of economic and political actors to divide the spoils among the elites. Some economists studying the former Soviet Union have referred to the phenomenon as "spontaneous privatization" by the elites (Johnson and Kroll 1991). Enterprises are both encouraged to proceed on their own and to have their own incentives to form joint ventures with foreign businesses (although this process is not yet entirely favorable to Western capital).…”
Section: A New Model Of State and Societymentioning
confidence: 99%