Privatization – What Have We Accomplished so far
and What Remains To Be Done
With the aim to discuss the effects of the present model of privatization
in Serbia, with focus on the access to information issue in the process
of privatization, Transparency Serbia has organized on February 26th,
2004, in Belgrade the round table: “Privatization - What Have We
Accomplished so far and What Remains To Be Done”.
Participants were eminent experts and specialists in the area of privatization,
such were:
Mr. Mirko Cvetkovic, the director of the Agency for Privatization; Prof.
Danijel Cvijeticanin, School of Economics, University of Belgrade; Prof.
Ljubomir Madzar, BK University; Danilo Sukovic, Institut of Social Science;
Prof. Milena Jovicic, School of Economics, University of Belgrade; Mihail
Arandarenko, School of Economics, University of Belgrade; Itzhak Goldberg,
Lead specialist, World Bank; Sojan Stamenkovic, researcher, Institut of
Economics Science; Radojka Nikolic, journalist, “Politika”;
Misa Brkic, journalist, “Vreme”; Mijat Lakicevic, chief editor,
“Ekonomist”; Nemanja Nenadic, executive director, Transparency
Serbia.
In his introductory speach, Nemanja Nenadic pointed out that the privatization
is one of the most important transitional ACTIVITIES in which transparency
must be ensured in order to prevent corruption and social tensions in
the process of transition. One of the most important preconditions for
creating transparency in the privatization process is the right to have
access to information. Although the access to information in the privatization
process was higher than in many other Governmental organizations and institutions'
ACTIVITIES, the process was still highly challenged and doubted.
Mr. Mirko Cvetkovic, the director of the Agency for Privatization, presented
concrete information of the results of the present model of privatization.
In the past three years, 1,117 firms have been privatized to date in tenders
and auctions. The average sales price was 17% higher than the book value
of the firm. Moreover, there are 360,000 people employed in the privatized
firms plus 400,000 already employed in private owned firms, that makes
760,000 employees working in private sector in Serbia in total. Thus,
the private sector has become dominant compared to the state and socially
owned firms.
Itzhak Goldberg, a World Bank lead specialist for private and financial
sector development, emphasized positive effects of the privatization process
to date, recommending to the new Government that it should not change
either the model of privatization, nor institutions established for its
implementation, such is for example the Agency for Privatization. Furthermore,
he suggested speeding up of the process of restructuring of infrastructure
firms in order to prepare them properly for the privatization in coming
period.
One of the opponents of the present model of privatization in Serbia,
Prof. Danijel Cvijeticanin, claimed that the model has surpassed its capabilities,
that it was not transparent enough, and that it left room for corruption
and manipulation. Moreover, was lacking needed legal framework, such were
the bankruptcy law and restitution law.
However, majority of participants agreed that some fundamental changes
in the privatization model or even revision of the Law would be harmful.
However, it is needed to complete legal framework and to enable privatization
through the capital increase.
(The most important parts of the discussion will be published in a form
of a special publication that will be widely distributed).
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