Investment Funds in Mass Privatization : Lessons from Russia and the Czech Republic
Investment funds play a key role in mass privatization in many transition economies. But have they lived up to expectations? The authors look at that question in the two earliest and best-known cases--Russia and the Czech Republic. The evidence i...
| Main Authors: | , |
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| Format: | Viewpoint |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/1997/04/694880/investment-funds-mass-privatization-lessons-russia-czech-republic http://hdl.handle.net/10986/11591 |
| Summary: | Investment funds play a key role in mass
privatization in many transition economies. But have they
lived up to expectations? The authors look at that question
in the two earliest and best-known cases--Russia and the
Czech Republic. The evidence is discouraging. It appears
that the funds have either not been able to enhance the
value of their holdings or have failed to share any gains
with their investors. Dividends have been extremely low.
Property rights created in a hasty attempt to depoliticize
property relations are weak. And capital markets remain
illiquid. Many funds have simply become holding companies
rather than active portfolio investors. The initial design
problems in mass privatization--asymmetric information and
imperfect property rights--remain. |
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