M P RA Munich Personal RePEc Archive Redefining Property Rights with Specific Reference to Social Ownership in Successor States of Former Yugoslavia: Did it Matter for Economic Efficiency? Redefining Property Rights with Specific Reference to Social Ownership in Successor States of Former Yugoslavia: Did it Matter for Economic Efficiency?

Isa Mulaj, Isa Mulaj
2006 unpublished
"The agents of a prince regard the wealth of their master as inexhaustible; are careless at what price they buy; are careless at what price they sell; are careless at what expense they transport his goods from one place to another. Those agents frequently live with the profusion of princes, and sometimes too, in spite of that profusion, and by a proper method of making up their accounts, acquire the fortunes of princes." Adam Smith (1776), The Wealth of Nations, Book V, Chapter II, Part I. High
more » ... er II, Part I. High economic growth rates after World War II characterized both socialism and capitalism. There have been impressive results in the former socialist block, Western Europe, USA, and Japan. Apart from these models based on private (capitalist) and state (socialist) ownership, the fastest economic growth in the world for some time was recorded in former Yugoslavia under social ownership with no specific owner having full ownership rights. The issue of property rights despite being subject to comparative analysis, did not matter much. After social ownership was privatized, the effects were not only as they were expected to be, but the countries like those that emerged from former Yugoslavia have yet to cope and strive for greater efficiency than before. This paper looks at the redefinition or privatization of social ownership in successor states of former Yugoslavia, and identifies the causes of smaller effects than expected of this redefinition.
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