Jeffrey D. Sachs

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Privatization in Russia: Some Lessons from Eastern Europe

Throughout Eastern Europe and the former Soviet Union, the collapse of communism has left behind a state enterprise sector without clear incentives or satisfactory governance of state assets. The communist system was a despicable and inefficient system, but it was a system nonetheless. Managers acted according to the commands of supervisory bureaucracies, whether in the government or the Communist Party apparatus. These commands were backed up by terror or at least its threat.

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