Denationalization and privatization: systemic conditionality

The development of a market economy in the transition period requires a whole range of measures to restructure the entire economy in order to make it more efficient and dynamic. One of the most important directions of such work is denationalization and privatization of property. Such events contribute to the emergence of new forms of organization of production activities in all sectors of the economy without exception.

As a rule, such activities are very painful for various social groups of the population, and it's not even that denationalization and privatization involve the redistribution of property and the rights to use it, in the course of their conduct, habitual values are often destroyed, value systems are changing, Change of the very philosophy of economic thinking, in those groups of the population who are involved in this process. That is why denationalization and privatization require the development of well-tested programs that will ensure the most optimal procedure for this socio-economic process. An important place in the comprehension of the content of necessary measures is the issue of clear understanding of the very content of the concepts of denationalization and privatization.

Under denationalization, in the broadest sense of this concept, it is necessary to understand the system of measures to demonopolize the economy and abandon the administrative and command strategy of its development with the goal of developing a multistructural economic mechanism that develops according to the natural laws of a civilized market economy. The main thing in resolving this issue, as a rule, is to carry out measures aimed at freeing the state from the possibility of totally and directly interfering in the economic process and completely controlling it. As the world experience in the implementation of the policy of denationalization shows, this activity is a solution of two interrelated and mutually benign tasks:

- transition from administrative-command management strategies to economic technologies based on the operation of economic laws;

- the change in the content and forms of industrial-economic relations on the basis of its multi-structural and free development.

The process of denationalization implies the implementation of the following activities:

- creation of an effective non-state sector of the economy developing on the basis of the variety of types of economic entities;

- transformation and transfer of state-owned enterprises to the ways of effective development in a market economy, above all - their release from direct government control by means of administrative-command methods;

- privatization of part of the property directly into the hands of citizens - the creation of a private sector of the economy.

Thus, already from this content it can be seen that denationalization and privatization are systematically interrelated processes, where privatization acts as a structurally necessary element of the policy of denationalization.

In practice, privatization can also take place outside the process of denationalization, in this case it comes down to only decentralizing the management of enterprises or changing the form of ownership without changing the owner. As a rule, such a privatization option is used to improve the economy or its individual sectors.

One of the types of privatization - the privatization of municipal property, is just such a case. It is held mainly to attract investment in the regions. Substantially this process is the transfer of ownership, long-term lease of land, enterprises, infrastructure on the conditions of their active participation in the development and modernization of the transferred economy.

Privatization of the ownership of municipal entities is beneficial to local authorities and entrepreneurs, which is why free privatization programs are being implemented in some countries, including the regions of Russia. Such a mechanism allows municipal entities to get rid of objects that can not be used effectively by them and still make a profit, in case of carrying out compensatory or mandatory privatization.