THE MODEL OF PRIVATIZATION AND THE OWNERSHIP TRANSFORMATION OF PRIVATIZED CAPITAL

This paper examines the impact of the initial privatization model on companies ownership concentration during second privatization. We analyze the data provided from the five transitional countries including Slovenia, Czech, Poland, Hungary and Croatia. Privatization models oriented to the macro-economic and political objectives cause very active fluctuation of privatized capital during second privatization period. Institutional framework has very limited impact on the flows in the second privatization phase – microeconomic objectives prevail. Croatia, Slovenia, Poland and Czech have witnessed significant changes in economically motivated ownership transformation of the privatized capital while Hungary as a country whose privatization was oriented primarily to the micro-economic objectives practically faced no changes in the companies ownership structure. The conclusion of this paper should be very useful not only for the privatization policy makers in all transitional countries where privatization is still taking place, but also to all governments facing privatization challenges in the future.