All theories are vague

The relationship between privatisation and competition

The expansion of the two essential elements of economic transition, private ownership and competition, do not necessarily reinforce one other and they may even come into conflict. In Hungarian practice, privatisation was given priority over improvement in the market structure, though but not in a professed or institutionalised manner. Even in the 1990s, a decisive and consistent demonopolisation policy was lacking. Procedures were unregulated and there were no clear criteria for making decisions. By analysing the colourful palette of the organisational changes, the article demonstrates that demonopolisation was mainly an unintended consequence or side-effect of individual deals and of the government?s short-term power or fiscal considerations.

Külgazdaság, 2003 Volume 11, pp. 4-23