SHOCKS AND ADJUSTMENT BY FIRMS IN TRANSITION - A COMPARATIVE-STUDY

In this paper, we describe how the 43 firms analyzed in a case study project in Czechoslovakia, Hungary, and Poland reacted to systemic changes between 1990 and 1992. The cases suggest that many firms had begun to transform themselves and restructure, often prior to privatization. However, restructuring was hindered by low levels of viability and weak management. The cases highlight the need for a coherent privatization program as part of a successful transition strategy. While most firms develop short-run plans, longer term enterprise strategy is intimately related to privatization. (C) 1995 Academic Press, Inc.