ABSTRACT
This chapter deals with the privatisation process of the Eastern European Countries-3 (EEC-3) and Russia as an aspect of their transformation to market economies and provides a contrast with privatisation programmes in the developed and developing countries. To the EEC-3 countries and Russia privatisation functioned as the dominant concept in the transformation process. The large-scale privatisation programme required that each of the enterprises prepares its own project proposal, indicating its preferred method: direct sale to local or foreign buyers, auction or sale by voucher. Moreover, the military orientation of these enterprises in Russia and to a lesser extent in the Czech Republic operated as a constraint to their privatisation. In February 1991, the small-scale privatisation programme was launched. Responsibility for the process was given to local authorities who sold about 22,300 shops, restaurants, and workshops to private bidders. The Czech government had been consistent in its privatisation policies and followed a defined programme.
