Kuchma: Lack of stock market caused privatization problems in 1990s
The key reason for problems with privatization in the 1990s was the absence of a functioning stock market.
Former Ukrainian President Leonid Kuchma suggested that the absence of a stock market significantly impeded privatization efforts during the 1990s. He explained that for a civilized, transparent, and "European-style" privatization, the necessary culture, instruments, and environment were not present. Kuchma highlighted that the most crucial missing element was a functioning market.
Privatized employees were granted co-ownership status, with most of the asset value allocated to them as privatization certificates. On paper, it seemed that the enterprise remained a single property unit, and social justice appeared to be upheld - those who worked owned the enterprise. However, the next day, these new co-owners, lacking understanding of their holdings or how to utilize them, quickly sold the bewildering papers at nominal prices to resellers on the black market, the only market available after parliament failed to establish a stock exchange.
Written by urgent.news from Ukrinform - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
