Privatizing Russia [Paperback]

Maxim Boycko (Author), Andrei Shleifer (Author), Robert W. Vishny (Author)

Book Description

Publication Date: January 22, 1997

Privatizing Russia offers an inside look at one of the most remarkable reforms in recent history. Having started on the back burner of Russian politics in the fall of 1991, mass privatization was completed on July 1, 1994, with two thirds of the Russian industry privately owned, a rapidly rising stock market, and 40 million Russians owning company shares. The authors, all key participants in the reform effort, describe the events and the ideas driving privatization. They argue that successful reformers must recognize privatization as a process of depoliticizing firms in the face of massive opposition: making the firm responsive to market rather than political influences.The authors first review the economic theory of property rights, identifying the political influence on firms as the fundamental failure of property rights under socialism. They detail the process of coalition building and compromise that ultmately shaped privatization. The main elements of the Russian program -- corporatization, voucher use, and voucher auctions -- are described, as is the responsiveness of privatized firms to outside investors. Finally, the market values of privatized assets are assessed for indications of how much progress the country has made toward reforming its economy.In many respects, privatization has been a great success. Market concepts of property ownership and corporate management are shaking up Russian firms at a breathtaking pace, creating powerful economic and political stimuli for continuation of market reforms. At the same time, the authors caution, the political landscape remains treacherous as old-line politicians reluctantly cede their property rights and authority over firms.

Editorial Reviews

Review

"Privatizing Russa is both a `must' read and a `good' read.It deserves to become the seminal text on privatisation. Buy it. Business Europa

"The authors provide a very good discussion of the theory of propertyrights, ownership and control, and explain in a neo-classical frameworkthe failings of the Soviet economic system." Timothy N. Ash , Economics in Transition

About the Author

Junko Ito is Professor of Linguistics at University of California, Santa Cruz.

Armin Mester is Professor of Linguistics at University of California, Santa Cruz.

Product Details

• Paperback: 176 pages
• Publisher: The MIT Press (January 22, 1997)
• Language: English
• ISBN-10: 0262522284
• ISBN-13: 978-0262522281
• Product Dimensions: 7.9 x 5.3 x 0.5 inches
• Shipping Weight: 8 ounces (View shipping rates and policies)
• Average Customer Review: 3.7 out of 5 stars  See all reviews (3 customer reviews)
• Amazon Best Sellers Rank: #1,163,547 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

3 of 3 people found the following review helpful:

4.0 out of 5 stars A very informative book, April 28, 2000

By 

Ashley Sides (Euless, Texas, USA) - See all my reviews
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This review is from: Privatizing Russia (Paperback)

I had to read this book for a class. I wouldn't do it for fun unless learning about Russian economic reform was my thing. The book is dry with details, but actually rather interesting in the way it turns Russian privatization into a political chess match of strategies and battles. I learned A LOT from this book. It is well-structured and logical in its presentation, which leads to greater understandability, even for someone with a limited background in economics. Anyone who understands more about economics than me would find it absolutely fascinating, I'm sure.

3.0 out of 5 stars A little too sure of themselves, September 10, 2007

By 

Guinevere Nell (Alexandria, VA, United States) - See all my reviews
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This review is from: Privatizing Russia (Paperback)

Shlefier et al offer a simplified theoretical approach to privatization, and defend it with simple, repetitive description throughout what reads like a long and under-footnoted, non-technical paper. The simplified theory is not really controversial, but despite what they may believe, it does not explain everything nor is it the only way to look at the situation.

They present the problem as more or less solved. They seem very proud of themselves, and over-confident, though in the conclusion they temper it a bit. Very few statistics are presented and many claims are made that are not supported with citation - disappointing as it would be interesting to follow up on them. So, instead of an analysis and a starting point, the book reads as a policy paper presented to the funding source: "Look, we had a theory, we were right, everything is going swimmingly - please give us more money."

Compare this to "Poland's Jump to the Market Economy" which presents dozens of tables of statistics from before and after the transition began, covering standard of living, employment, different sectors and sizes of firms and status of privatizing. Rather than focus so much on whether his own pet theoretical point of view was defensible, Sachs presented cautious but optimistic facts about Poland's progress. And consider which country is actually doing better today.

However, the theory is interesting, and the book is quite readable. It isn't worthless, it is interesting. I can't give it less than 3 stars, that would just be mean.

3 of 5 people found the following review helpful:

4.0 out of 5 stars Very Interesting!, December 31, 1998

By A Customer

This review is from: Privatizing Russia (Hardcover)

Shleifer and Vishny are my personal heroes when it comes to the Russian Privatization program. The authors have written a wonderful book that gives sound economic and political understanding of the program from start to finish.