Income from the Privatisation of State Enterprises in Poland, Hungary and Czech Republic in 1991-1994

Abstract

The Privatisation process of State enterprises, in countries once being members of the Council for Mutual Economic Aid, is perceived as the main element of structural changes, leading to the economic system transformation and economic development. Although, privatisation cannot be understood as the main factor for the development of the market economy, however, its accomplishment influences the success of the other transformation elements, such as macro-economic stabilisation and economic activities’ liberalisation. Privatisation is a way of enforcing micro-economic changes in enterprises and introducing financial discipline. It gives a chance to increase productivity in the enterprises undergoing privatisation (as well as in economy) by establishing an atmosphere of competitiveness among them, and it also enables to eliminate subsidies (direct and indirect) from the State budget to an enterprise.