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Innovation and privatisation
Dr. Laszlo Jager
University of West Hungary
Department of Forest Policy and Economics
tel:+36-20-325-5383
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Innovation
Can we change the world?
• concrete tent
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Privatisation
• privatisation in generalselling of state property
what?how?to whom?why?
what does ownership mean?
Prespectives:- historical- emotional- theoritical+implementation
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Ownership
Which is better?
state private
higher education
public transport
nature protection
health service
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Ownership Average: X
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Ownership
Example:– public transport in detail– train companies +who is the owner of the
railroad?– Ryanair– local public transport +authorities
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Tipical ownership structures
state - private
community ownership
co-operation
joint ownership
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Specific ownership structures
factories land forest
different solutions needed
the parking fee solution
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Forest and ownership
forest and owership – which is the better
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Historical perspective
palaeolithic age
ancient slavery
feudalism
capitalism
socialism, communism
bc 476 1640 1917 time frame
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Emotional background
Hungarian prime minister
wealth:
1990: 0
2004: 20 million EUR
income 4000 EUR/day
attitude of lottery winners
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A question of life and death?
Emotional background
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do we sell out the country? – is it good or bad?
Emotional background
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Conclusion 1
in Eastern-Europe means more than just a simpe change of the ownership
transformation of the economy means transformation of the society
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Privatisation – theories
How we can change the ownership from state to private?
Why?
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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
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Privatisation – theories
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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
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Narrower sense– handing back to their former owners– selling productive assets– intermediate model – compensation
voucher
Privatisation – techniques
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Narrower sense– selling productive assets– handing back to their former owners– intermediate model – compensation
voucher
Now which is the better?
Privatisation – techniques
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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
0
500
1000
1500
2000
2500
3000
3500
1 2-5 6-10 11-25 26-50 51-100 101-200
szántó
erdő
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Transformation of the ownership system Transformation of the ownership system
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Struggle with joint ownership
the winner takes it all, the Hungarian invention
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Transformation of the ownership system Transformation of the ownership system
Hungarian model
logical model
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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
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new trends in forest management– large scale small scale– industrial wood fuelwood– machinery horse power– harvester chain saw
Privatisation and forestry innovation
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Privatisation and Innovation
general trends in the economy
forest onwership transformation
which is stronger?
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Private owner and innovation
innovation forces?
state pressure
self interest
external effects
price of fuelwood
doubled in two years
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Conclusions
theories-------------implementation
mental and moral condition of the society
short term ---------long term benefits
fear of change
clear ownership system