Property Right Security in Russian Deprivatization Case Study
What impact will the prospect of deprivatization have on investment by managers of privatized firms?
Managers invest in long term paybacks, if they know the possibility of deprivatization. The profits and investment could go to someone else.
What effect will deprivatization have on foreign investment in Russia
Foreign investment is will decrease if deprivatization increases because the risk used to any forecasted return on investment falls.
Do you think that mass deprivatization is in the long-run best interests of Russia?
I don’t think mass deprivatization is in the best interests of Russia. There could be short-run move of funds from foreigners to Russia. The failure of private and foreign investment slows down the potential growth of the country.
Who gains from deprivatization? Who Loses?
The Russian government will abuse their power which will help them gain. The losers will be the investors. As the economy slowly molds over time, the Russian consumers aren’t in favor because there aren’t enough products.
Assuming more people are hurt by would a local politician support such a policy deprivatization than helped, why would a local politician support such a policy
Government officials again will abuse their authority to benefit themselves. They get power and money by controlling the economy.
