Privatization Before and After the Orange Revolution

摘要

During and since the Orange Revolution, problems of privatization have become unusually acrimonious in Ukraine. The privatization process, which began in 1992, became a foundation for generating the oligarchic big capital that provides political and financial support for the old [pre-Orange Revolution] authorities. This article takes a retrospective look at the transformation of privatization from a reform process into a tool for the targeted transfer of state property, at low prices, to the ownership of specific business groups close to the old authorities—a practice that became one of the points of contention in Ukrainian society. After the Orange Revolution, privatization, which was interwoven into the canvas of political struggle, became "shock" reprivatization—the forced return of previously privatized assets to state ownership for resale. This reinforced the negative perception of denationalization on the part of society and the new authorities. Development of the state sector became the new authorities' dominant economic policy; privatization acquired a simplified largely fiscal role. Only after the negative consequences of the reprivatization policies pursued after the Orange Revolution were clearly demonstrated did the new authorities start to fundamentally revise their positions. In this light, it is interesting to analyze the positions and actions of key government and political figures in Ukraine during 2005-6. In so doing, the new authorities' desire to switch to a policy of amicable settlements, and to set up an efficient privatization process in 2006, are particularly important.