[abe-forum] Privatisation

[Edi Bice]

              *** Albanian Business and Economics Forum ***


Good evening everybody.

There are quite a few issues I would like get your opinion about, but that
of the privatisation process has been for a long time and still remains
very puzzling to me.

We all remember the terms 'shock therapy' and 'gradual transition'. This
is where it all boils down to. In the case of Poland, shock therapy proved
itself successfully, whereas in Russia there were many 'shocks, but
without the therapy', as a Russian economist said.

As I was adding some more info to the ABE page (there is now a small
privatisation section), I read about the process of privatising or giving
concessions in the mining sector.

We all know how inefficient our enterprises (generally all enterprises in
the centralized system) became, how bloated and ineffective the
administration remains, and how a normal corporate restructuring even by
Western standards involves many layoffs.

But in Albania's case, these employees can't just jump to another company
and the whole thing is forgotten in a few months. Plus it's not a private
enterprise that decides that for the best of its shareholders it should
get rid of some employees. It's the government, and its shareholders are
the people, including the ones it is firing.

What would you do if you were in the position of Mr. Ylli Bufi, Minister
of Privatisation?


sincerely,
edi bice