have not instituted clear privatization strategies, the capital assets of the state are controlled by the managers. The deep recession and increasing inflation rates have led to economic instability. Businesses have not been able to adjust rapidly to hard budgetary constraints and continue to be unprofitable and to depend on state support. Furthermore, economic instability has encouraged businesspersons to seek quick profits and to focus on commerce, not production.
Despite legislation, illegal privatization continues. The conversion of the debts of enterprises into state debts is a crucial problem, as is the liquidation of agricultural enterprises. Finally, the public's indifference and ignorance of privatization has encouraged politicians to delay solving the problems inherent in converting SOEs to private enterprises.
Privatization can occur if new economic stabilization plans emphasize the creation of positive conditions for economic development. Furthermore, the growth in the GDP can stimulate the mass privatization of large enterprises, and financially stable enterprises can benefit from capital privatization by potential investors. However, without strategies for capital and mass privatization, the transformation of state property will continue to be problematic.
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