PRIVATIZATION IN SERBIA: THE DIFFICULT CONVERSION OF SELF-MANAGEMENT INTO PROPERTY RIGHTS

Abstract

The paper examines the overall results achieved in the area of privatization in Serbia, as the largest part of the Serbian-Montenegrin economy. The privatization process in Serbia during the 1990s is described in some detail, including the various pieces of privatization legislation (adopted in 1989–1990, 1991, 1994, 1996, 1997), and the overall results achieved, which have been extremely poor: by late 2000, less than 40% of the country’s Gross Material Product was produced by the private sector. The main problems of corporate governance are also discussed in some detail, having in mind the specific situation in Serbia characterized by the maintenance of the ambiguous system of “social property.” The most recent privatization phase started after the political changes in late 2000, and marked a fundamental change in the approach, away from sales at privileged terms to insiders implemented throughout the 1990s, towards commercial sales to strategic owners, at tenders and auctions. The main achievements and shortcomings of the new strategy are discussed.

Citation

Uvalic, M. (2004), "PRIVATIZATION IN SERBIA: THE DIFFICULT CONVERSION OF SELF-MANAGEMENT INTO PROPERTY RIGHTS", Perotin, V. and Robinson, A. (Ed.) Employee Participation, Firm Performance and Survival (Advances in the Economic Analysis of Participatory & Labor-Managed Firms, Vol. 8), Emerald Group Publishing Limited, Leeds, pp. 211-237. https://doi.org/10.1016/S0885-3339(04)08009-3