Selected Principles, Elements and Experiences of Privatisation in Germany

In most states with market oriented economic systems privatisation plays an important role in the political discussion, mainly due to the fundamental problem of all economic systems, which is scarcity of available resources. The responsible politicians try to improve the allocation of scarce resources and to increase the financial possibilities for needed development investments by creating an adequate macroeconomic framework and a business-friendly environment. Within the scope of these efforts the production of goods and commercial services by state-owned enterprises only plays a very limited role. The state would be best advised to leave these functions to the, in this regard, more efficient private sector. The public sector should concentrate its respective efforts only on the production of so-called Public Goods and, for political reasons, eventually on some sub-sectors, which are essential for the security of the country. Nearly all market economies and especially states which are in the transitional process from more centrally administered to market oriented economic systems, have room for manoeuvre towards privatisation of state-owned enterprises. Privatisation facilitate the improvement of factor allocation and the reduction of budget constraints, not only by the way of sales revenues but also by creating a broader tax-base, decreasing the need to provide subsidies and, last but not least, mobilising private resources for the aimed development-process. This is also true for the Republic of India as well as for the Federal Republic of Germany. However, privatisation causes not only advantages for the economic systems and the public budgets, but also some economic and financial costs. These costs have to be reduced as much as possible by an efficient target-oriented policy. Although the corresponding policies and experiences in one country can hardly be a blueprint for another country, a policy-dialogue at various levels about privatisation and on the underlying legal and economic frameworks is helpful for all involved parties. The exchange of experiences can also contribute to the avoidance of disappointments and setbacks that could jeopardise the privatisation policy introduced. Relating to the above the Government of India noticed: "Thus, while one would do well to learn from the successful experience, one would have to be careful of the pitfalls as well. In the final analysis, while experience of other countries is available by the way of guidance, one would have to evolve one's own techniques, best suited to the level of development of the country. ... The historic, cultural and institutional context influences the way in which and the pace at which privatisation is implemented" (Ministry of Disinvestment 2003, p.1). Experience sharing between experts of different countries is an appropriate way of learning from each other and avoiding the disadvantages of blue prints at the same time. On initiative of the Ministers of Finance of the Republic of India and the Federal Republic of Germany, both governments agreed, therefore, to enhance the exchange of experiences about disinvestment/privatisation in the framework of economic cooperation. The Ministry of Disinvestment (since June 2004: Department of Disinvestment in the Ministry of Finance) and the Bundesministerium fuer wirtschaftliche Zusammenarbeit und Entwicklung, BMZ, (Federal Ministry for Economic Cooperation and Development) are the responsible authorities. The German contributions will be provided by the Deutsche Gesellschaft fuer Technische Zusammenarbeit, GTZ, (German Agency for Technical Cooperation) on behalf of BMZ. This Report gives an overview of selected principles, elements and experiences of privatisation in Germany, with special reference to the new Federal States in East Germany and under consideration of selected aspects in neighbouring countries. The intention is not to present a complete abstract, but to provide a discussion basis for identifying starting points for a future dialogue about lessons learnt. This paper was elaborated by the Hamburg Institute of International Economics (HWWA) at the instigation of Sanjeev S. Ahluwalia, IAS, (Department of Disinvestment) and Dr. Dietrich Kebschull (GTZ). The author would like to express his sincere thanks to both of them as well as to Gunnar Geyer, Carsten Hefeker, Britta Jens and to Rasul Shams (all HWWA) for their valuable suggestions.Political Economy,

A DECADE OF LAND REFORM AND FARM RESTRUCTURING: WHAT RUSSIA CAN LEARN FROM THE WORLD EXPERIENCE

Agricultural and Food Policy,

DEMONOPOLIZACJA REGIONALNEJ POZYCJI GIEŁD PAPIERÓW WARTOŚCIOWYCH I JEJ KONSEKWENCJE

Celem artykułu jest analiza przemian w zakresie demonopolizacji regionalnej pozycji giełd  papierów wartościowych oraz konsekwencji zaistniałych zmian. Jako hipotezębadawcząprzyjęto, iż zmiany w otoczeniu prawnym i technicznym uwarunkowały demonopolizacjęregionalnej pozycji giełd oraz dalsze konsekwencje o charakterze mikro i makroekonomicznym. W celu weryfikacji hipotez, jako bazę  źródłowąwykorzystano studia literaturowe, które pozwoliły zapoznaćsięz kluczowymi problemami teoretycznymi i zaprezentowaćistotęproblematyki związanej ze zjawiskiem demonopolizacji giełd papierów  wartościowych. W artykule wykorzystano analizęprzyczynowo-skutkowądla przedstawienia procesu przekształcania dotychczasowej roli (regionalnej) giełdy i towarzyszących efektów oraz analizęlogicznąpolegającąna poszukiwaniu logicznych relacji między przyczynami i konsekwencjami tych zmian. Przeprowadzona  analiza  dała  podstawy  do  weryfikacji hipotezy,  iż na  skutek  zmian  prawnych związanych z liberalizacjąfunkcjonowania giełd oraz przemian technologicznych, giełdy papierów  wartościowych utraciły swą dotychczasow ąpozycję.  W  konsekwencji,  aby być konkurencyjnymi,  rozpoczęły  procesy  elektronizacji  obrotu,  dezintermediacji  i  demutualizacji,  porozumień i konsolidacji. Zjawiska te sąstosunkowo nowe, rozpoczęły siępod koniec XX w. i stanowiąnowe wyzwanie dla teoretyków i praktyków finansów

The tug of war. Russia's response to changes on the European gas market. OSW Study 50/2014

Russia, being aware of the evolution of the EU gas market and the fluctuations in trends that accompany it, and in an attempt to maintain its position on the European gas market, is sticking to a dichotomous strategy. On the one hand, Moscow has taken an offensive approach: it continues its traditionally critical rhetoric with regard to the legal and institutional changes; by negating the legitimacy of the new rules, it has been making efforts to undermine them by employing legal and political measures; Russia has used such traditional economic means as investments in assets and pushing through the implementation of new gas pipeline construction projects. On the other hand, the evolution of the EU gas market has forced Russia to take steps to adapt to a certain extent: partial changes in the operation of the internal gas sector; promises to further curb Gazprom’s dominant position; the concessions made in trade negotiations with European partners; partial adjustments to the EU’s so called third energy package regulations. Hoping that the unfolding situation on the gas markets will contribute to slowing down the recent liberalisation tendencies in the EU and that EU member states won’t make progress in decreasing their dependence on Russian gas, Moscow is thus preparing itself for the ‘long game’ in gas with its European partners

DOMESTIC AND TRADE POLICY FOR CENTRAL AND EAST EUROPEAN AGRICULTURE

International Relations/Trade,

Знання як фактор конкурентних переваг: перспективи України

Introduction. In recent decades, economic growth of the leading world countries have occurred on the basis of information and knowledge embodied in new products, production technologies and management at all stages of production and marketing. Due to the generation and commercialisation of knowledge competitive advantages of individual companies, institutions and national economies, leaders of economic growth are formed and advanced. Considering the current trends in the changing conditions of economic and political space of Ukraine and abroad, which will only intensify fast and efficient reorientation to new markets is relevant for the domestic producers. The purpose of the study is to investigate the role and place of knowledge as an element of intellectual capital of organisations to ensure their competitiveness in light of trends in the global economy; to assess the current position and to outline the problems and perspectives of fast and efficient innovation growth in Ukraine based on knowledge. Results. The role of knowledge in providing competitive advantages of organisations has been outlined. The place of knowledge relevant to intellectual capital of organisations is specified. It has been determined that knowledge as an element of intellectual capital has a dual nature: it can be regarded both as an intellectual resource and as a possibility to implement existing intellectual capital of organisations. The influence of knowledge in the global economy is investigated. Ukraine’s position in the world rankings, which reflects the level of economic development based on intellectual capital and innovation, as well as the status of its competitiveness, has been studied. From these positions, we have specified strengths and weaknesses of the national economy and outlined the prospects of economic growth based on knowledge as an element of intellectual capital.Окреслено роль знань у забезпеченні конкурентних переваг організацій. Уточнено місце знань в інтелектуальному капіталі організації. Визначено, що знання як елемент інтелектуального капіталу, мають дуалістичну природу: їх можна розглядати як інтелектуальний ресурс, а також як можливість реалізації наявного інтелектуального капіталу організації. Досліджено вплив знань на розвиток світової економіки. Досліджено позиції України у світових рейтингах, які відображають рівень економічного розвитку країн на основі інтелектуального капіталу та інновацій, а також стан їхньої конкурентоспроможності. Визначено сильні та слабкі сторони вітчизняної економіки, а також окреслено проблеми та перспективи її зростання на основі знань як елементу інтелектуального капіталу

The Impact of FDI on Economic Growth under Foreign Trade Regimes: A Case Study of Pakistan

FDI has been one of the defining features of the world economy over the past two decades. It has grown at an unprecedented pace for more than a decade. Liberalisation of the foreign trade regime is an integral part of growth of FDI. This paper investigates the trade policy regime followed by Pakistan that has influenced significantly both the amount of inward FDI received and economic growth. Our findings maintain that the Bhagwati Hypothesis Emphasis on both export promotion policy and inward FDI on the part of the government can get the desired result of economic growth.Foreign Investment, Economic Growth, Trade, Pakistan

Creation of agricultural land market in Ukraine: current state of development

Land reform started in Ukraine 14 years ago became one of the most important issues in transformation of large state agricultural enterprises into market oriented agricultural enterprises. Significant changes in land use and land ownership has happened as a result of land reform implementation in Ukraine. Namely, state monopoly on land was eliminated, agricultural land was privatized, citizens of Ukraine received land plots in possession, first land transactions have happened at agricultural land market etc. Actual data regarding Ukrainian land relations reformation is systematized in this Discussion paper with especial focus on establishing the prerequisites of further formation and perspective development of the agricultural land market in Ukraine. Additionally, a current situation is described at the Ukrainian agricultural land market and its legislative regulations. -- G E R M A N V E R S I O N: Die vor 14 Jahren in der Ukraine begonnene Bodenreform stellt eine wichtige Maßnahme der Transformation der ehemaligen staatlichen Agrarunternehmen in marktorientierte Unternehmen dar. Im Ergebnis der Bodenreform haben wichtige Veränderungen bezüglich der Bodennutzung und der Bodeneigentumsverhältnisse stattgefunden. Das staatliche Monopol an Boden wurde beseitigt und der Boden privatisiert. Die ukrainische Bürger erhielten Grundstücke als Eigentum übertragen, und erste Bodentransaktionen haben stattgefunden. Dieses Discussion Paper systematisiert die aktuelle Lage auf dem ukrainischen Bodenmarkt und formuliert weitere Voraussetzungen zur Herausbildung eines voll funktionsfähigen landwirtschaftlichen Bodenmarktes in der Ukraine. Die aktuellen Gesetze werden erläutert.Land market reform,transition,Ukraine,Bodenmarktreform,Transformationsprozess,Ukraine