Katia Hristova


In my study, I plan to analyze voucher privatization in the Czech Republic. This process is best characterized as decision making under both risk and uncertainty, where the thousands of individuals who initially received vouchers were operating under near total uncertainty while larger institutional investors who later seized control of the vouchers were operating under conditions of risk. I will analyze the resulting patterns of ownership in comparison to the goals of the process. I will also discuss the role of the International Monetary Fund and World Bank as institutions which affect the conditions under which voucher privatization was conducted. In particular, I will explore how the situation of asymmetric information in the privatization process led to the establishment of institutions and the concentration of ownership in the hands of a few individuals who have neither the skill nor the incentives to initiate change in the enterprises (Fullerton, 1998. Nellis, 1999).