Forms of privatization and its essence as such


2018-03-28 21:13:08




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The Concept of privatization implies the alienation of property belonging to state enterprises, organizations and institutions, as well as land and housing, which is located in the municipal or state property in favor of individuals or legal entities that are purchasers under the legislation on privatization.

This process has several widows and styles. Forms of privatization can vary on these types of privatisation of municipal property and state property, privatization of housing owned by the state, the privatization of land.

Privatization is to increase economic and social efficiency of production. Thanks to privatization is attracting funds for the restructuring of the economy. In addition, the privatization pursues goals such as: engaging citizens to participate in the maintenance and preservation of housing forms market relations and stimulates effective and efficient use of land resources, and promotes the development of entrepreneurial activities.

Depending on the tasks and goals described above, there are appropriate forms of privatization, and the relevant mechanisms for their implementation and performers. For example, the privatization of the housing stock is performed by authorized bodies when local authorities and enterprises and organizations which have state housing Fund.

Among so the notion of forms of privatization not to mention one of the most common forms – the corporatization of enterprises. This mechanism of privatization become possible after the government relevant legislative acts and laws. As a rule, the essence of these laws is to ensure that the state legitimizes the process of corporatization or other reorganization of the state enterprises and institutions into joint stock companies of open type.


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For our country, this stage occurred in the nineties of the last century. According to the then economists neformalov, such processes had to push economy to develop and to rebuild it in connection with the new requirements of market processes. What came out of it, remember everyone.

But from a scientific or economic point of view, joint-stock companies as the product of privatization is one of the effective ways of integration and concentration of capital.

However, given the different forms of privatization and the methods by which it was held impossible to say unequivocally that in all countries where it happened, the process was positive and gave a significant boost to the economy.

Especially see the difference of the results of privatization in Eastern Europe after the collapse of the Soviet Union began to build market economy model and in the countries of the former Soviet republics, where the privatization was to solve the questions of revival and restructuring of the economy on new rails of market relations. However, if European countries with the task somehow managed, in the CIS the echoes of wild privatization, which was won by a group of oligarchs, are given today. In addition, the timing of privatization in different countries are defined differently. And if the issue is not to think, and to give free swimming, the privatization of enterprises will grow in buying assets of all enterprises and organizations owned by the state in one hand, which can result in monopolization of the market of goods of a particular group.

In the process of privatization can participate in the following categories:

Citizens and foreign nationals and persons with undetermined citizenship;

Legal persons who are registered on the territory of the country, where it will be privatisation;

Legal persons of other States, within the framework of laws and normative-legal acts.

But be allowed to privatization do not have the right individuals who work in the state property Fund (and similar structures), the authorities and management, as well as legal entities in which their property have a share of state ownership  more than 25% and others,a list of which is determined by the special laws of the state.

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