Privatization in East Germany: A Survey of Current Issues

Author/Editor:

Dieter Bös

Publication Date:

January 1, 1992

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper deals with the privatization, restructuring, and liquidation of East German industrial firms. A partnership model is suggested for privatization where the Government’s property trust (Treuhandanstait (THA)) is made a silent partner of the private investors. The application of a general scheme of wage subsidies is rejected in the paper. Furthermore, the paper argues against restructuring policies of the Government’s property trust and proposes to set decreasing limits on the trust’s finances for the years following 1993. The decreasing financial inflow will force the Government’s trust to close firms, and will also signal the commitment of the Government to liquidate the trust itself by, say, the year 2000.

Series:

Working Paper No. 1992/008

Subject:

Economic sectors Employment Employment subsidies Labor Privatization Unemployment Wages

English

Publication Date:

January 1, 1992

ISBN/ISSN:

9781451842463/1018-5941

Stock No:

WPIEA0081992

Pages:

32

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