User:Francois bardol/sandbox

Privatization was not very well received in the beginning in the former Czechoslovakia The state sector in Czechoslovakia comprised more than 98% of the entire economy.the Czechoslovak post-communist government had to start almost from scratch. The state had to sell or transfer most of its productive assets. Privatization, which is one of the key elements of the Washington Consensus, became a symbol of structural change in the post communist countries. Privatization is not only the most observed part of the stabilization and transformation process but also the most complicated part of this process.

The first goal is to raise revenue for the state from the transfer of ownership. The second aim is to improve the economic efficiency of privatized enterprises. The third purpose is to reduce the government’s involvement in the economy. The fourth objective is to broaden the enterprise ownership structure. The fifth goal is create a competitive environment. The final objective is to subordinate state owned enterprises to free market discipline.

Privatization was the keystone for stabilization and transformation of command economies in Central and Easter European countries.