Rethinking Reform: Lessons from Polish Privatization

Intial attempts by the reformistPolish government to privatize previously state owned assets has met with failure. Attempts to sell state assets and then later, to distribute these properties for free have not been succesful. One method which has shown considerable promise is that of allowing the workers and managers of these state owned companies to personally negotiate the sale of their enterprises to outside investors. The situation in Poland is indicative of similar dilemmas plaguing former communist states of Central and Eastern Europe.