Privatizing Russia

By Andrei Shleifer, Maxim Boycko, Robert Vishny

Book Overview

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.

• Format: Paperback
• Language: English
• ISBN: 0262522284
• ISBN13: 9780262522281
• Release Date: January 1997
• Publisher: MIT Press
• Length: 176 Pages
• Weight: 0.50 lbs.
• Dimensions: 8.0" x 0.4" x 5.4"
• Age Range: 18 years and up
• Grade Range: Postsecondary and higher

Customer Reviews

A very informative book

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.

Very Interesting!

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.