By Sara Oldfield, Noel McGough
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In order to enhance ex post irreversibility by creating constituencies for reform, it is important to observe a correct sequencing of reforms (see Dewatripont and Roland 1993). With respect to privatization and restructuring, correct sequencing implies that it is better to privatize first the good enterprises because this creates momentum and positive 1. We abstract here from the possibility that a big bang program may by itself bring about chaotic disturbances, leading to increased uncertainty.
World Bank. 1993. " Europe and Central Asia Department Report 12763. C. 2— Political Economy Issues of Ownership Transformation in Eastern Europe Gérard Roland It is probably no exaggeration to state that analysts of transition in Eastern Europe have strongly underestimated the political constraints to reform. The fall of communism and the advent of democratic regimes in 1989 were widely applauded by the people of these countries, raising the general level of expectations. Analysts thought that a drastic and rapid move to the market economy would most likely be accepted, despite the inevitable transitional pains imposed on the population.
Its only program was restitution of land to its former owners. In Czechoslovakia and East Germany, restitution has been prominent in privatization policy. In Poland there is also a restitution lobby trying to influence privatization policies in its favor. It is well known that privatization through restitution tends to create difficult legal battles (see, for example, Begg 1991; Sinn and Sinn 1993) and contributes to the confusion rather than the clarification of property rights. The observation of an irresistible trend toward restitution has thus more to do with rent−seeking activity than with the search for economic efficiency.
A CITES Manual for Botanic Gardens. Second edition. by Sara Oldfield, Noel McGough