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SPP 211

Author: Attila Agh, Budapest U. of Economics
Description: Analytically, privatization and pluralization may be treated as separate economic and political phenomena, but in the actual conditions of a post-Communist society they are integrally related to the development of a middle class sociey that was absent due to "deprivatization" in a one-party state. The creation of a society of plural interests and private enterprise represents a shift from Sovietization to Europeanization. However, the process is extremely difficult, for there are many paradoxes in the logic of privatization. In addition, issues of ownership--past as well as future--are major political battlefields. Political strategies of privatization include a grand coalition; a new state-party; Latin-Americanization; creating a broad entrepreneurial class; a European working class; and a wide coalition. These complexities are examined with particular reference to the experience of contemporary Hungary.

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