Privatization and the transition to a market economy

摘要: The Chinese government has announced its intention to privatize thousands of state-owned enterprises. Such an effort would dwarf recent privatizations in the industrialized West and be comparable only Eastern European experience following fall Soviet Union. As such, examination privatization may provide valuable lessons for China any other developing economy that embarks upon a large-scale program. In this article, Jason Saving considers three problems with which have had contend: scarcity information, inability exercise managerial oversight, absence competitive markets. He suggests lack information need not prevent privatization. explores holding company as potential solution managerial-oversight problem. And he effective requires both oversight legal framework permits freedom entry competing firms.