LYCOS RETRIEVER 
Privatization: Private Sector
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The privatization process in Bulgaria is considered to be one of gradualism—the private sector went from making up 6.4% of Bulgaria’s GDP in 1991, to 50% in 1997. Yet, in order to truly examine privatization in Eastern Europe, it is necessary to ... know what type of privatization was implemented since 1989 and which type is currently being practiced. In Bulgaria, three methods have been used: cash privatization, insider privatization, and mass privatization. It is in the understanding of each of these methods that one can see where the problems of privatization exist. But besides these institutional problems, there is a problem of a psychological nature. The people of Bulgaria have been so conditioned to separate themselves from the responsibility and activity of the economy, that it has been difficult to get the citizens to not only participate, but to be enthusiastic about it. They are also paranoid about a new system of ownership, seeing a lot of foreign involvement and job loss, under the new program.
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Legal concerns beyond labor issues are ... important considerations in privatization. Legal debate starts from the argument that the public and private sectors are essentially different and their separate functions can be logically designated. The following articles raise concerns about constitutional protections of citizens and emphasize the legal characteristics of public entities. Opponents worry that privatization may threaten citizens' constitutional rights.
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[T]he failure to bring about effective privatization of the state sector negatively influenced the entire domestic business environment. The product markets in Hungary were weaker than anticipated, but rapid privatization of Hungary's small-scale sector will improve product markets. Speedy privatization will encourage the restructure of businesses along new, competitive lines. The loosening of credit for private produces can greatly facilitate private sector growth.
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The broader definition of privatization ... includes a wide range of public-private partnerships, such as voucher systems. Even the creation of federal corporations, quasi government organizations and government-sponsored enterprises is often filed under the general category of privatization. In such organizations, though, it is often difficult to tell where government ends and the private sector begins.
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The politically or ideologically contested press for greater privatization is mainly a public sector issue. In the private sector, the very wealthy colleges and universities with deep and affluent applicant pools (e.g. Harvard, Yale, Stanford, Princeton, Williams, Amherst, and Grinnell) can afford to offer an education based on the academic principles of their faculties, and can ... afford to observe the academic norms (even the occasional preciousness) of the faculty. The colleges with little or no endowment, which are thus almost entirely tuition dependent and which also tend to have relatively thin and tuition-sensitive applicant pools, have already become largely privatized, much as described above (or else many of them would almost certainly no longer be in business).
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[T]here are strong reasons for privatization and some equally-strong concerns and fears (see Exhibit 3). Most analysts, though, concur that each sector may actually have certain relative strengths, and private sector delivery of services is not inherently better or worse than public service delivery. "Business does some things better than government, but government does some things better than business. Business tends to be better at performing economic tasks, innovating, replicating successful experiments, adapting to rapid change, abandoning unsuccessful or obsolete activities, and performing complex or technical tasks. The [non-profit] sector tends to be best at performing tasks that generate little or no profit, demand compassion and commitment to individuals, require extensive trust on the part of customers or clients, need hands-on, personal attention..., and involve the enforcement of moral codes and individual responsibility for behavior."
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