ABSTRACT
Chapter 2 determines the role of the state in raiding and argues that the state is both a victim of raiding and a raider itself. The process of privatization of socialist property was, in essence, raiding. Accordingly, there is an impression that the state became an object of raiding and a victim of aggression of external forces toward the state property, including all means of production. But, in fact, the object of raiding became the state property while the state was an instrument used by raiders in power to appropriate property. In this case, the state itself is seen as a raider. At the same time, state functions, state authority, and execution of state powers were taken over and “privatized” by the ruling regime and its particular representatives. Economically active bureaucrats offer services to facilitate redistribution of not only access to limited resources, public goods, spheres of influence and market segments, but business assets as well. By helping raiders to capture business, bureaucrats participate in the redistribution of property, profit-generating assets and businesses, and expect a reward from this future profit, obtained by the raiders or the new owners. Therefore, bureaucrats reach the stage and the level of profit participation.
