Privatization in East Germany: A Survey of Current Issues

January 1, 1992

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Format: Chicago

Dieter Bös. Privatization in East Germany: A Survey of Current Issues, (USA: International Monetary Fund, 1992) accessed September 23, 2024

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.

Subject: Economic sectors, Employment, Employment subsidies, Labor, Privatization, Unemployment, Wages

Keywords: Easy-to-handle firm, Employment, Employment subsidies, Enterprise manager, Liquidated enterprise, Liquidation policy, Nonviable firm, Nonviable THA firm, Privatization, Privatized firm, THA enterprise, THA firm, Unemployment, Wages, WP

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1992/008
Stock No:

WPIEA0081992
ISBN:

9781451842463
ISSN:

1018-5941

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