State corporations to pave way for new privatization round
Published: 14 November, 2009, 21:40
Edited: 16 November, 2009, 13:44
Experts have welcomed President Dmitry Medvedev’s plan to convert Russia’s state corporations into something more dynamic, with some saying they has been a costly mistake.









Part privitisation is a good thing, providing it has rules and the current owners are returned fair value, we don't want mass theft again. But rules and fair value are the key things here. In terms of rules, we definitely need the 49% max rule. This stops the enterprises becoming financial weapons against Russia, secondly the fair value concept is so important, meaning there is no fast buck, we will allow an investor to get a good return, if they join for the mid/long term. But we will make sure the initial price reflects a fair return for the state and ultimately the people to benefit from. However, we can even be more imaginative in the future, and split the residual 51% between direct state holding and a citizen's holding, held in a fund. This would augment state ownership, by direct citizen equity holding with some rules. This means each citizen would get a divident payout from the fund managing their citizens portfolio. Now every one has a slice of the cake, and that is what you need for a good party. But we have some rules again, the rules are simple for the citizen, they get the the citizens alloction at birth, which changes with more companies formed or failed, then they lose it on death, and of course, they are not transferable and have all voting rights vested in the state. Of course if you don't like the way the economy is going, and hence your investment, then you change the government.