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Davos: privatization of Russian state-owned businesses key to funding deficit
Published: 29 January, 2010, 11:42
Edited: 03 February, 2010, 12:59
Russia's leading bankers have been using the World Economic Forum in Davos to push for the privatization of their companies, with the heads of Sberbank and VTB being the most notable.
Slow down! Now, when you have all paid back what the taxpayer put into you, then ---- only then --- can we talk sale. Why on earth would I, the taxpayer, sell the assets that, after a ton of my money, is now solvent? Why, you may be solvent, but the money we put in during crisis needs to be paid back FIRST with interest, and then after taxpayer makes some money on the risk, we can talk some sale. And, sure enough, who wants to sell assets that are making money? We are co-owners, remember! Down the road, taxpayer may need some money for other worthy causes. And then can sell off some of the shares. Just like any other private person or corporation would do! Why is it that these bankers still believe that THEIR money is CAPITAL, while OUR MONEY is GIFT to them? When everyone starts valuing capital same, public funds or other assets will be managed with more prudence.
Privatising companies in Russia is a very short sighted thing to do if those companies are viable strategically important entities. It is trading short term benefit from a sale for long term security and long term income. Politicians often like to sell off assets to make it look like they are an efficient government spending less than they are earning. The long term effects are usually bad where those companies sold can be mismanaged by foreign owners who care more for profit than for the effect on local customers. Selling the goose that lays the golden eggs will certainly appeal to the west because the west likes to buy all the golden egg laying geese it can. It gets very angry when a country protects its own wealth (ask Iran).