The concept of privatization implies the alienation of property owned by state enterprises, organizations and institutions, as well as land and housing stock, which is in communal or state property in favor of legal entities or individuals who are buyers under the legislation on privatization.
This process has several widows and types. The forms of privatization can differ in the following types: privatization of communal property and state property, privatization of the state-owned housing stock, land privatization.
Privatization is carried out to increase the economic and social efficiency of production. Thanks to privatization, funds are being raised for structural adjustment of the economy. In addition, privatization pursues such goals as: attracting citizens to participate in the maintenance and preservation of housing, forms market relations, and also stimulates the efficient and rational use of land resources, and promotes the development of entrepreneurship.
Depending on the tasks and goals described above, there are appropriate forms of privatization, and appropriate mechanisms for their implementation and performers. For example, the privatization of the housing stock is carried out by authorized bodies under local authorities and enterprises and organizations that have state-owned housing stocks.
Among such a concept of the form of privatization, one cannot fail to mention one of the most common forms - corporatization of enterprises. This privatization mechanism becomes possible after the adoption of relevant legislation and laws by the government. As a rule, the essence of such laws boils down to the fact that the state legitimizes the process of corporatization or, in another way, the transformation of state enterprises and institutions into open joint stock companies.
For our country, this stage occurred in the nineties of the last century. According to the then reform economists, such processes were supposed to push the economy towards development and rebuild it in connection with the new requirements of market processes. Everyone probably remembers what came of this.
But from a scientific or economic point of view, joint-stock companies as a product of privatization are one of the most effective ways to integrate and concentrate capital.
However, given the different forms of privatization and the methods by which it was carried out, it cannot be said unequivocally that in all the countries where it took place, the process was positive and gave a significant impetus to the country's economy.
The difference between the results of privatization in the countries of Eastern Europe, which, after the collapse of the USSR, began to build a market model of the economy and in the countries of the former republics of the USSR, where privatization was supposed to solve the problems of reviving and restructuring the economy on new tracks of market relations, is especially visible. However, while European countries coped with this task at the very least, in the CIS, the echoes of wild privatization from which a group of oligarchs have won are still being given. In addition, the terms of privatization in different countries are determined in their own way. And if this issue is not thought out and given for free swimming, then the privatization of enterprises will grow into buying up the assets of all enterprises and organizations belonging to the state in one hand, which may cause a monopolization of the market for goods of one or another group.
The following categories of persons can participate in the privatization process:
Citizens of the country and foreign citizens, as well as persons without a specific citizenship;
Legal entities that are registered in the territory of the country where privatization will be carried out;
Legal entities of other states, in the framework of laws and regulations.
But those who work in the state property fund (and similar structures), the authorities and administrations themselves, as well as legal entities that have more than 25% state ownership in their property and other entities do not have the right to privatize, the list which is determined by special laws of the state.