Deregulation and privatization: the system of conditionality

The Development of market economy in the transitional period, requires a whole complex of measures aimed at the restructuring of the entire economy in order to give it the greatest efficiency and dynamism. One of the major directions of this work is the deregulation and privatization of ownership. Such events contribute to the emergence of new forms of organization of production activities in all sectors of the economy.

As a rule, such activities are very painful for most of different social groups, and it's not even the fact that deregulation and privatization involve redistribution of ownership and rights of use,  they are often crushed to the usual values, changing value systems, there is a change in the philosophy of economic thinking, those groups that are involved in this process. That's because deregulation and privatization requires the development of verified programs that will provide the most optimal procedure in this socio-economic process. An important place in understanding the content of necessary measures is the question a clear understanding of the content of the concepts of deregulation and privatization.

Under privatization, in the broadest sense of the term, you must understand the system of measures on demonopolization of the economy and the abandonment of the administrative-command its development strategy with the objective of reaching towards the formation of a mixed economic mechanism, evolving according to the natural laws of a civilized market economy. Main  in this matter, as a rule, is carrying out actions aimed at the liberation of the state from the possibility of totally and directly interfere in the economic process and completely control them. As international experience shows, the policy of privatization, this activity represents the solution of two interrelated and vzaimousilivat tasks:

Recommended

Insurance for pregnant women when traveling abroad: features, views, and reviews

Currently, in our country there is a huge number of insurance companies that are willing to provide the necessary services at any time. Insurance expectant mothers – is a separate activity that SK are doing very reluctantly. The fact is that pr...

Construction company "Rosstroyinvest": feedback from real estate investors. LCD "Old fortress". LCD "Golden domes"

One of the most promising participants in the Russian real estate market, particularly in the joint construction, is the "Rosstroyinvest". Reviews of investors are saying about the leading role of the construction company year of Foundation, in 2002,...

The conditions for obtaining credit in modern banking institutions

Any aspiring entrepreneur is faced with the problem of insufficient funding of their own business. Currently, this problem can be solved by knowing the terms of the loan and taking the necessary amount from the Bank. This method is best for solving p...

the transition from administrative-command management strategies to economic technologies based on the action of economic laws;

- change the content and forms of production and economic relations on the basis of its mixed and free development.

The Process of privatization involves the implementation of the following activities:

- the creation of an effective private sector of economy developing on the basis of diversity of types of business entities;

- the conversion and transfer of state-owned enterprises in the way of effective development in the conditions of market economy, first of all – release them from the direct governing influence of the state by using administrative-command methods;

- the privatization of the property directly into the hands of citizens – create a private sector economy.

Thus, of this content it is evident that deregulation and privatization – are systemically interrelated processes, where privatization stands as a structurally necessary element of the policy of privatization.

In practice, privatization may be done outside the process of privatization, in this case, it is only to the decentralisation of the companies or change of ownership without a change of the owner. Typically, this variant of privatization is used for the recovery of the economy or its separate sectors.

One of the types of privatization - the privatization of municipal property, is a case in point. It is performed mainly with the aim of attracting investment to the regions. Meaningful this process is a transfer of ownership, lease of land, businesses, infrastructure on the conditions of their active participation in the development and modernization of the transferred sector.

The privatization of the ownership of municipal entities, and beneficial to local authorities and businesses, which is why in some countries, including regions of Russia, implemented a program of free privatization. This mechanism allows municipalities to get rid of the objects that can't be used effectively and make a profit, in the case of a reimbursable or obligations of privatization.