Bábolna Inc.

State ownership ? in a market economy environment, commissioned by Bábolna Inc.

2004 (Éva Voszka, Arnold Ludányi)

The study aims at contributing to the clarification of theoretical and practical standpoints affecting the extent and composition of the state ownership sphere, as well as the framework of state asset management, by a synthesis of national and international experience. As a starting point, it returns to the basic theoretical issues which have been under dispute since the beginning of privatisation. From what point of view is the identity of the owner important? How can the retention and expansion of state assets be justified? Theoretically, can the state function as a better owner under market economy conditions than its predecessor in a planned economy? What kind of inevitable difficulties arise from community ownership and what sort of institutional solutions can mitigate these? After mapping the magnitude, characteristics and operational features of Hungarian state assets, the study elaborates a new model for the privatisation of companies under difficulties. The key issue in this is a re-organisational contract between the owner and the management.