Making a market: Mass privatization in the Czech and Slovak Republics

Abstract

The Czechoslovak mass privatization program was effective at transferring equal claims on assets to citizens (equivalent to about $1,250 per person), in putting into place a process that was transparent, and in laying the groundwork for asset market development by addressing information problems associated with privatization. Despite the government's attempts to encourage widespread share ownership, investment funds dominate the market, although the involvement of citizen owners has been politically important for sustaining support for the transition process.