Transformation of ownership relationship and comparative analysis of the Russian regions

Publication date
Saturday, 02.06.2001

Authors
A. Radygin R. Entov A. Yudin G. Malginov Yu. Gritsun V. Bondarev O. Peredeina Harry Swain Troy Goodfellow

Series
CEPRA

Annotation
The main objectives of the present research are the identification of main regularities of the emergence of a new property rights system within privatization process in the conditions of transitional economy in Russia and its single regions (on the basis of evaluation of privatization models of the ‘90s), the identification of the crucial challenges of theoretic and applied nature from the perspective of government regulation, and the elaboration of the respective applied recommendations for improvement an economic policy at the federal an regional level.

Contents

Introduction 4
Chapter 1. Ownership structure: some theoretical issues and empiric evaluation output 5
1.1.Theory of property rights 5
1.2. Efficiency of the economy based on private property: empiric evaluation 8
Chapter 2. The Russian Privatization Model 11
2.1. Introductory Remarks. 11
2.2. Prerequisites for the Formation of the Russian Privatization Model 12
2.3. The Stage of Spontaneous Privatization and its Specifics 16
2.4. Mass Privatization: the Reasons behind the Choice of the Model and Major Results 18
2.5. Specifics of Cash Privatization as the Second Stage of the Transformation of Ownership Relation. 19
2.6. Some Recommendations. The Problem of Nationalization (Re-Privatization) 24
Chapter 3. Privatization in Canada and Lessons for Russia 32
3.1. Ownership and the Canadian federal state 32
Federal and provincial responsibilities 32
The example of securities law 33
Federal powers 33
Dispute settlement 34
The peculiar problem of land 35
3.2. History of privatization in Canada 35
“A nation unaware” 35
Early cases:  BCRIC 36
The Mulroney years: 1984-93 38
The rise of Bombardier 39
Air Canada 40
Airports. 41
3.3. The Liberal governments of Jean Chr'etien: 1993-present 42
Canadian National Railway 43
Nav Canada 44
Remaining opportunities 47
3.4. Lessons learned 49
Attainable objectives 49
Financial engineering 50
Wider process considerations 51
Chapter 4. Dynamics, forms and methods of privatization in the Russian regions: a comparative evaluation 53
4.1. Reforming the ownership relations in the context of relationship between different tiers of government in the period of market transformation in Russia 53
4.2. The structure of the privatized public property and  the pace of its privatization, by its forms 60
4.3. Apparatus of the Russian privatization: a brief overview of privatization methods 66
4.4. Small privatization 71
4.5. The “big” privatization 76
4.6. The government’s maintenance  of property rights in the process of incorporation 83
4.7. Non-standard (complementary) methods of privatization 86
Real estate sales 87
Investment and commercial tenders 88
Sales of land 91
Sales of indebted enterprises 93
Other non-standard methods 94
4.8. Cross-region differentiation of the general structure of ownership and structure of industrial sector emerged in the IInd half of the ‘90s 94
Chapter 5. Regression analysis of correlation between the level of the non-government sector’s development and the economic and political situation in regions 97
5.1. The dependence of economic indices on the level of privatization in industrial sector 97
5.1.1. The proportion of unprofitable enterprises in the total number of industrial enterprises 98
5.1.2. Industrial output index 99
5.1.3. The proportion of non-government investment in the total volume of investment in industrial sector 100
5.2. The dependence of characteristics of privatization in industrial sector on dynamics of industrial output 101
5.2.1. The proportion of industrial enterprises of the non-government sector in the overall number of enterprises in the industrial sector in the region 101
5.2.2. The share of output of non-government industrial enterprises in the overall volume of industrial output of the region 102
5.2.3. The share of employees at non-government industrial enterprises in the overall number of employees in industrial sector 102
5.3. Privatization and voting 103
5.3.1. The correlation of the proportion of non-government industrial enterprises in the overall number of industrial enterprises and elections outcome 104
5.3.2. The correlation between the share of non-government industrial enterprises’ output in the overall volume of industrial output and the elections outcome 104
5.3.3. The correlation between the share of employees at non-government industrial enterprises in the overall number of employed in industrial sector, and the election outcome 105
5.3.4. The correlation between the proportion of non-government housing in the total volume of  the housing fund with the election outcome 106
Chapter 6. Cluster evaluation of the regions in Russia in terms of the prevalence of non-government sector 110
6.1. The brief review of major findings of the previous stage 110
6.1.1 The first classification 111
6.1.2. The 2nd classification 113
6.1.3. Main conclusions 116
6.2. Dynamics of privatization process in industrial sector 117
6.3. The curves of privatization in industrial sector 120
6.3.1. Dynamics of the share of non-government industrial enterprises 121
6.3.2. Dynamics of the share of output of non-government industrial enterprises in the overall volume of output in industrial sector 122
6.3.3. Dynamics of the share of employees at non-government industrial enterprises in the overall number of employees in industrial sector 124
6.3.4. Dynamics of the share of non-government housing in the total volume of housing fund 125
Chapter 7. The privatization program of the federal center and regional policy. Final conclusions and recommendations 127
7.1. Approaches to the solution of post-privatization problems and policy options in the area of ownership relations at the federal level 127
7.1.1 The state policy of management of public property and privatization program 127
7.1.2. Government policy towards economic agents 132
7.2 Approaches to the solution of post-privatization problems and policy options in terms of ownership relations on the regional level 137
Conclusion 142
Sources 146
Select bibliography on privatization in Canada 149
Annex to Chapter 3 150
Annex 3.1. “Lands reserved for Indians” 150
Annex 3.2. Public-private partnerships 152
Annex 3.3 Some lessons for Russia 154
Annex to Chapter 5 159
Annex A.5.1. Genuine information used for calculations 159
A.5.1.1. Information on the industrial sector privatization indices 159
A.5.1.2. Information on the non-government housing fund 161
A.5.1.3. Indices of industrial output 163
A.5.1.4. Non-government investment in the industrial sector and the share of unprofitable enterprises 164
5.1.5. Information on the 1996 presidential elections 167
A.5.2. The results of the regression analysis of the correlation between the level of development of the non-government sector and the economico-political situation in the regions 170
A.5.2.1. The dependence of economic indicators on the level of privatization in the industrial sector 170
A.5.2.2. The dependence of the industrial sector privatization characteristics on the dynamics of industrial output 173
A.5.2.3. Privatization and voting 180
A.5.2.4. The privatization indices and the outcome of the 1st round of the 1996 presidential elections 187
Annex to Chapter 6 197
Annex A.6.1. The logic of uniting regions into clusters. 197
A.6.1.1 Dynamics of the privatization process in the industrial sector 197
A.6.1.2 Dynamics of the share of non-government industrial enterprises 199
A.6.1.3. Dynamics of the share of output of the non-government industrial enterprises 199
A.6.1.4. Dynamics of the share of employees at the non-government industrial enterprises 200
A.6.1.5. Dynamics of the share of non-government housing 200
A.6.2. The involvement of RF regions in clusters in dynamics 201
Annex A.6.3. Comparison of regions in terms of similarity of their privatization processes 202

Notes

The research and the publication were undertaken in the framework of CEPRA (Consortium for Economic Policy, Research and Advice) project funded by the Canadian Agency for International Development (CIDA).



Go to other releases