Munich Personal RePEc Archive

Public sector privatization - legal framework

Strazisar, Borut (2006): Public sector privatization - legal framework.

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Abstract

With the accession of ex socialistic countries in EU the problem of public sector privatization become the most popular and at the same times the most important political question. Privatization becomes at the end of the 20th century the magical word, which will resolve all the problems and incapability in public sector. We’re talking about the sector which functioned in monopole framework with all the good and the bad sides of such system. It was the sector which was used and sometimes abused by the state to promote social, political and employment goals. On the other side, distribution, quality and quantity of public goods and services was defined by the state. So the consumers had no choice – their only choice was to use or not use such product. In some countries (like in ex SFRY) also the infrastructure for public services or goods was built with private money (direct or indirect investments) and become the social or state ownership with no remuneration. Within public sector we could speak also about the problem of authority privatization, but it’s a topic, which requires separate analyzes. The intention of this contribution is to show the problems of privatization on the supplier and on the demand side.

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