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CONCLUSIONS AND RECOMMENDATIONS REGARDING THE PRIVATIZATION PROCEDURES AND THE POST-PRIVATIZATION DEVELOPMENT OF THE ENTERPRISES
 

Market privatization has brought about an economic revival of all privatized enterprises under the analyses. I.e., the study has demonstrated that the positive effect of privatization does not only consist in freeing the state from its property and securing additional revenues from that operation, but equally and chiefly, in the improvement of the economic state of the enterprises. They have all to some extent or other carried out what state management was unable to achieve:

- improved market positions - production restructuring has been carried out in nearly all of them;
- rationalization of management;
- additional investments;
- as shown by the case studies, there has been a wage increase in all privatized enterprises, with the system of payment being reorganized into more efficient forms based on a payment-by-result principle. Social dialogue is maintained and the trade unions remain only in the larger privatized enterprises.

In order to promote a better understanding of the various privatization techniques and greater trust in the privatization process as a whole among entrepreneurs and the general public, it is necessary:

- to launch an information campaign about the current legislative framework of privatization, the alternative possibilities and the types of preferences. It should be accompanied by measures to enhance professional know-how at state and municipal privatizing authorities, as well as banks, public organizations, etc.;
- to provide maximum publicity on the course of privatization, as well as the state and development of the privatized enterprises. The generally positive tendencies in their post-privatization behavior would considerably enhance public interest and trust in privatization as a whole;
- to improve preliminary promotion work concerning the enterprises, separate parts or assets which are subject to privatization;

Concerning the privatization procedures, the authorities in charge of privatization ought to seek:

- to reduce as far as possible the duration of the privatization process. Experience has shown a substantial deterioration in the state of the enterprises which are in the process of privatization. This does not only concern their finances, but the state of the property, the equipment and facilities, supplies and reserves, etc. From this point of view, and in order to concentrate in time the supply and demand for privatization objects, it would be most appropriate to bring the privatization process within a reasonably short term of time;
- to provide maximum publicity and openness of the privatization procedure both in view of attracting investors and of gaining public trust in the process;
- to improve the state of post-privatization control. The existing legislative framework of privatization does not in fact regulate the question of the control, both over the process itself, and the fulfillment of the conditions stipulated in the contracts. A governmental regulation on privatization and post-privatization control is therefore called for.

Furthermore, it would be appropriate for the sale contracts themselves to stipulate the objects, as well as the forms and term of post-privatization control, concurrently with the respective forfeits and other conditions. The sale contract could even include provisions for the buyer himself to take on certain aspects and forms of control, for instance providing information to the seller on a regular basis about the fulfillment of the contract conditions: number of employed persons; realized investments; ecological improvements, etc.

 

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