A 100% privatization of state-owned enterprises is the\nmost effective way to overcome corruption there. This method fights the source\nof corruption \u2013 state ownership for enterprises; it does not fight its\nconsequences.<\/p>\n\n\n\n
This conclusion was made by the analysts of the Center\nfor Economic Strategy, the authors of the analytical note \u201cHOW TO OVERCOME CORRUPTION AT STATE-OWNED ENTERPRISES?\u201d
\n
\nThe authors have analysed three types of possible methods of combating\ncorruption at state-owned enterprises: the involvement of law enforcement\nagencies, the reform of corporate governance, and the privatization of\nstate-owned enterprises.<\/p>\n\n\n\n
According to the data of the National Anti-Corruption\nBureau of Ukraine, the unreformed judicial system does not allow this method to\nbe effective. For example, only a few cases of corruption at state-owned enterprises\nhave been convicted. There is no conviction for a director or other top manager\nof a state-owned enterprise. In addition, law enforcement agencies are actually\ncombating the consequences of corruption, and do not eliminate its cause.
\n
\nThe reform of corporate governance through the creation of independent\nsupervisory boards helps the state eliminate corruption in the form of \u201ccapturing\nof the state\u201d. However, this process is long and does not eliminate the risk of\nre-capturing.<\/p>\n\n\n\n
The most effective way of combating corruption at\nstate-owned enterprises is to privatize them. Only privatization helps avoid\nthe risks of political influence on the enterprises in the long run.\nAdministrative corruption can also exist at private businesses, but then it is\na problem for the private owner, not the population of the country, which is\nthe ultimate beneficial owner of the state ownership. Furthermore, the private\nowner can personally control the state of affairs at the enterprise, unlike the\ncitizens of Ukraine acting through elected representatives or officials.
\n
\nActually, Ukrainians believe that stealing is typical for state-owned enterprises,\nand it will be prevented by the private owner (73.71%). At the same time,\n85.61% of respondents share an idea that corruption can be overcome at\nstate-owned enterprises without privatization in case of strong desire.\nTherefore, during the privatization a special attention of the government\nshould be paid to communication with the population and explanation of possible\nprivatization risks.\n\nThe research was presented\nduring the panel discussion \u201cIs there any public request for transparent\nprivatization?\u201d on July 12.\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"
A 100% privatization of state-owned enterprises is the most effective way to overcome corruption there. This method fights the source of corruption \u2013 state ownership for enterprises; it does not fight its consequences. This conclusion was made by the analysts of the Center for Economic Strategy, the authors of the analytical note \u201cHOW TO OVERCOME […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[176,404,197,143],"tags":[550],"experts":[169,215],"news_type":[140],"class_list":["post-8307","post","type-post","status-publish","format-standard","hentry","category-macroeconomics-en","category-business-en","category-research-list-en","category-home-news-en","tag-corruption-en","experts-dmytro-yablonovskyy","experts-oleksiy-hamanyuk-en","news_type-researches"],"acf":[],"_links":{"self":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts\/8307","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/comments?post=8307"}],"version-history":[{"count":0,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/posts\/8307\/revisions"}],"wp:attachment":[{"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/media?parent=8307"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/categories?post=8307"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/tags?post=8307"},{"taxonomy":"experts","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/experts?post=8307"},{"taxonomy":"news_type","embeddable":true,"href":"https:\/\/ces.org.ua\/en\/wp-json\/wp\/v2\/news_type?post=8307"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}