Analysis of the privatization course in Ukraine and causes of its current holdup concludes that a new Program of Privatization is likely to become and essential part of new political-economic compromise between main political and business players. For political-economic reasons it should provide a framework for competitive and transparent cash privatization aimed at maximization of revenues. The draft Program developed by the State Property Fund in 2002-2003 with support of the group of domestic and foreign experts may become a good basis containing mechanisms for ensuring important social interests – such as integrity of industrial organization, consumer rights protection, etc. – which could be otherwise sacrificed to the price paid through an auction. This Report suggests three necessary amendments to this Program based on extensive analysis of the Ukrainian and relevant foreign experience.
First concerns a special policy of legitimization of the private property rights acquired through privatization. The authors emphasize the necessity to counteract increasingly dominating negative attitude towards privatization and its results. Legitimization is deemed as essential for sustainable privatization under the democratic conditions. Second consists of technical issues of privatization of land plots occupied by the objects of privatization, both past and future. And third is devoted to the problems of national security tied to participation of foreign investors in the privatization.
New report “ Conditions of resuming and completing privatization in Ukraine.” is available for download.