Privatisation, Politics, and Economic Performance in Hungary

Description

Why do some privatisations apparently fail to produce expected positive results? Economic theory tells us that privatisation should improve efficiency, but this book suggests that political bargaining in the process of privatisation works against the results we expect to achieve. To gain a better understanding of what privatisation is really about, power at a firm level needs to be understood. Privatisation is a gradually unfolding, evolutionary process, often with defective corporate governance. Politicking can take priority over performance, with the result that efficiency is ignored and profitability is affected. This is the first and only book on privatisation which focuses on micro-level behavioural issues and it uses exceptionally rich case evidence to illustrate that privatisation is more about politics than performance.