Cover IMF Working Papers
Privatization in East Germany: A Survey of Current Issues
Author: Mr. Dieter Bös
Series:
IMF Working Papers
Volume/Issue:
Volume 1992: Issue 008
Language:
English
Publication Date:
01 Jan 1992
DOI:
https://doi.org/10.5089/9781451842463.001
ISBN:
9781451842463
ISSN:
1018-5941
Pages:
32
Keywords:
WP; liquidation policy; THA firm; privatized firm; easy-to-handle firm; liquidated enterprise; THA enterprise; nonviable THA firm; enterprise manager; nonviable firm; Employment subsidies; Privatization; Wages; Employment; Unemployment
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (1.7 MB) Download Epub
This paper deals with the privatization, restructuring, and liquidation of East German industrial firms. A partnership model is suggested for privatization where the Government’s property trust (Treuhandanstait (THA)) is made a silent partner of the private investors. The application of a general scheme of wage subsidies is rejected in the paper. Furthermore, the paper argues against restructuring policies of the Government’s property trust and proposes to set decreasing limits on the trust’s finances for the years following 1993. The decreasing financial inflow will force the Government’s trust to close firms, and will also signal the commitment of the Government to liquidate the trust itself by, say, the year 2000.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund