engleski

Restructuring and Growth in Transition Economies

Restructuring the enterprise sector is one of the central objectives of current system reforms in all transition countries . Development of private sector includes use of such policy tools as privatisation, creation of efficient capital markets and encouragement of foreign direct investment inflow. A fundamental prerequisite for a market discipline is the existence of &#8220 ; hard budget constraint&#8221 ; which will reward efficient enterprises while forcing the inefficient ones either to undergo considerable restructuring or to be liquidated. Therefore, this paper puts attention to bankruptcy and re-organisation mechanisms, which are an important privatisation tool. Liquidations on a massive scale would have unacceptable consequences. It is, therefore, crucial that the legislative framework facilitates, where possible, re-organisation instead of outright liquidation. The aim of this paper is to find key reform challenges of selected countries in the restructuring process. Attention is put on the role of the state in combating negative sides of transition process during restructuring of big loss-making state owned enterprises.

restructuring; transition; state sector; enterprise sector

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