Ten years of privatization: Lessons for yugoslavia

Abstract

Since the latest political changes, the FRY (the exposition is predominantly pertinent to the Republic of Serbia) faces a choice of a transition strategy and privatization model whithin it. After ten years of transition in East Europen countries, well established patterns in marked oriented reforms and subsequent results are observed and could serve as policy lessons for the FRY. Regarding the significant impact that initial conditions have on efforts and results of transition macroeconomic policy and structural reform implementation, the paper presents the prevailing institutional setting of the Yugoslav economy inherited from the communist regime. Also, the ten years of Yugoslav privatization experience is reported to have weak results due to the poor concept. Debates on privatization, as well on structural reforms and macroeconomic policy, have again become lively in the FRY.