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Hayek and Coase Travel East: Privatization and the Experience of Post-Socialist Economic Transformation

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Hayek: A Collaborative Biography

Part of the book series: Archival Insights into the Evolution of Economics ((AIEE))

Abstract

Privatization of property previously controlled by the state is the central tenet of the transition process from a communist to a non-communist state. In the vast majority of the socialist countries, the scale of privatization was truly unprecedented. In Russia, the chunks of former state property were acquired by a relatively small group of capitalists of national origins, while the construction of capitalist institutions remains (at the time of writing) incomplete. In contrast, in the central and eastern European and the Baltic states, foreign actors were heavily involved in privatization; capitalist institutions are constructed, but domestic capitalists are scarce (Eyal, Szelényi and Townsley 1998). A group of laggard reformers, including Belarus, Turkmenistan and Uzbekistan, postponed or avoided or significantly constrained privatization. In these countries, the state continues to dominate in the economy, while the private sector remains relatively small.

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  1. Kiryl Haiduk
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Editors and Affiliations

  1. Stanford University, USA

    Robert Leeson (Visiting Professor of Economics, Adjunct Professor of Economics) (Visiting Professor of Economics, Adjunct Professor of Economics)

  2. University of Notre Dame, Australia

    Robert Leeson (Visiting Professor of Economics, Adjunct Professor of Economics) (Visiting Professor of Economics, Adjunct Professor of Economics)

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© 2015 Kiryl Haiduk

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Haiduk, K. (2015). Hayek and Coase Travel East: Privatization and the Experience of Post-Socialist Economic Transformation. In: Leeson, R. (eds) Hayek: A Collaborative Biography. Archival Insights into the Evolution of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/9781137479259_7

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