Innovation and privatisation

transcript

Dr. Laszlo Jager

University of West Hungary

Department of Forest Policy and Economics

jagerla@emk.nyme.hu

tel:+36-20-325-5383

Innovation

Can we change the world?

• concrete tent

Privatisation

• privatisation in generalselling of state property

what?how?to whom?why?

what does ownership mean?

Prespectives:- historical- emotional- theoritical+implementation

Ownership

Which is better?

state private

higher education

public transport

nature protection

health service

Ownership Average: X

Ownership

Example:– public transport in detail– train companies +who is the owner of the

railroad?– Ryanair– local public transport +authorities

Tipical ownership structures

state - private

community ownership

co-operation

joint ownership

Specific ownership structures

factories land forest

different solutions needed

the parking fee solution

Forest and ownership

forest and owership – which is the better

Historical perspective

palaeolithic age

ancient slavery

feudalism

capitalism

socialism, communism

bc 476 1640 1917 time frame

Emotional background

Hungarian prime minister

wealth:

1990: 0

2004: 20 million EUR

income 4000 EUR/day

attitude of lottery winners

A question of life and death?

do we sell out the country? – is it good or bad?

Conclusion 1

in Eastern-Europe means more than just a simpe change of the ownership

transformation of the economy means transformation of the society

Privatisation – theories

How we can change the ownership from state to private?

1990-2000: total income from privatisation 12 800 million USD1990-2000: total income from privatisation 12 800 million USD 1.768.400 million HUF1.768.400 million HUF

in foreign currencyin foreign currency 1.016 billion HUF 1.016 billion HUFin HUF (cash)in HUF (cash) 484 billion HUF 484 billion HUFin loanin loan 85 billion HUF 85 billion HUFcompensation vouchercompensation voucher 182 billion HUF 182 billion HUF

land privatisationland privatisation 32 billion HUF 32 billion HUF of which forest privatisationof which forest privatisation 2 billion HUF 2 billion HUF

Economic features

Privatisation – theories

Wider sense: increasing competition– subcontracting technical services

forestry entrepreneur: 1 chainsaw– allowing private competition

pharmacies vs. supermarkets– establishment of public enterprises

state forest companies in Hungary– change of regulation

railway companies+private train

Privatisation – techniques

Narrower sense– handing back to their former owners– selling productive assets– intermediate model – compensation

voucher

Narrower sense– selling productive assets– handing back to their former owners– intermediate model – compensation

voucher

Now which is the better?

Statistics registry area name birth village address type decision ownership

2_087/18 0,2724 Fentős Pál 1978.05.14

CSESZTREG Teleki 7 gyep (rét

30928/2002.02.21

3,51E-06

1_097/1 0,1668 Tóth Frigyes 1952.04.08

SZATTA Fő 10 kivett 30053/49/1996.10

7,23E-06

1_097/1 0,1713 Tóth Frigyes 1952.04.08

SZATTA Fő 10 kivett 30053/49/1996.10

7,42E-06

17_0617/21 0,1992 Németh József 1929.02.03

ZALALÖVŐ Damjanich 16 gyep (rét

30012/147/1998.0

8,19E-06

1_097/1 0,2572 Tóth Frigyes 1952.04.08

SZATTA Fő 10 kivett 30053/49/1996.10

1,11E-05

17_0617/21 0,2874 Németh József 1929.02.03

ZALALÖVŐ Damjanich 16 gyep (rét

30012/147/1998.0

1,18E-05

17_0564/52 0,2089 Tóth László Miklós

1952.12.08

ZALALÖVŐ Petőfi 30 erdő 38391/2002.05.29

1,43E-05

1 2-5 6-10 11-25 26-50 51-100 101-200

szántó

Transformation of the ownership system Transformation of the ownership system

Struggle with joint ownership

the winner takes it all, the Hungarian invention

Transformation of the ownership system Transformation of the ownership system

Hungarian model

logical model

Privatisation and Innovation

due to a new ownership system

need some change on the level of– state intervention– legal system– administration system– education– social structures and self evaluation – emotional adaptation– crime and criminal treatments

new trends in forest management– large scale small scale– industrial wood fuelwood– machinery horse power– harvester chain saw

Privatisation and forestry innovation

Privatisation and Innovation

general trends in the economy

forest onwership transformation

which is stronger?

Private owner and innovation

innovation forces?

state pressure

self interest

external effects

price of fuelwood

doubled in two years

Conclusions

theories-------------implementation

mental and moral condition of the society

short term ---------long term benefits

fear of change

clear ownership system

Innovation and privatisation

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