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The new model of privatisation in Serbia
Begovic, Boris and Mijatovic, Bosko and Zivkovic, Bosko |
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| Every country going through the painful process of transitional change from one form of economic thinking (i.e. Communism to Capitalism) to another, has had to address the question of privatization. The authors argue that in the case of Serbia this has been handled very badly using a voucher and employee stockholding model. This has proved itself a formula for stagnation accompanied by a lack of capital injection and effective leadership. They suggest that a new concept of privatization is required which should be facilitated by private tender open to all, including foreign investors. Consideration should also be given by the Serbian Government to future investment, the prospects of employment and other economic factors: the establishment of dominant ownership which mean that more effective management decisions can be made. At the time of writing, only 10% of the state owned industries had been privatized. This was due, in part, to badly framed law and also that in many cases, the distinct mistrust by private citizens of the process of privatization. In the cases where privatization has occurred, normally based on the employee participation model, there has been much unfairness in the way shares have been allocated, often to employees and retirees from the social and Government sectors. The second part of the paper looks at different models of privatization that have been adopted by other countries and postulates how these may be applied in the Serbian case to achieve more effective results. |
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