Privatization in Bosnia

Privatization Theory Privatization is the essential process in both the political and the stinting vicissitude from socialism to capitalism. Property rights are one of the more or less important differences amongst the two carcasss because they create a system of incentives, which ultimately leads to a more efficient utilization of resources. Additionally, case-by-cases force out respond to market conditions faster and more efficiently than the offer itself. Hence, the transfer of ownership from the state to private agents is a learn process in transition. Some authors even argue that privatization is transition (Bennett et al. 5), since it leads to redistribution of power and lays the foundations for development of a free market. The basic rendering of privatization is a transfer of ownership rights from the state to individuals. In a broader sense, privatization includes all processes that help countries move from socialism to capitalism. These processes emphasize the rights and responsibilities of individuals and shrivel the role of the state (Ledyaeva). A broader view of privatization helps to explain the interplay between the politics and the economic system of any country. Political forces vie an important role in the transition of most easterly European countries.

Bosnia was certainly no exception, and politics and corruption both played determining roles in the process of privatization . Privatization is supposed to entrust in a better allocation of resources in an economy, in the sense that resources can be used more efficiently to create social wealth. The new governing model in a privatized economy would respond to consumers preferences (demand) rather than state preferences. In addition to these macroeconomic improvements, privatization is supposed to improve the performance of individual companies. Bayliss lists several factors in a privatized economy that result in this improvement (4). Some of the factors include clearer management objectives, better... If you want to conquer a full essay, order it on our website: Orderessay

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