Post-Soviet Property Rights Questions
1.Who has residual rights of control over enterprise or firm after all contractual obligations have been met?
–In past government ministries, planners, administrators, & ultimately KPSU exercised control over residuals
2.Who decides what to do with enterprise assets?
–Previously enterprise directors highly constrained by their ministries and central planners over asset management
3.Question of factory or enterprise ÒmanagerÓ or Òfactory directorÓ or Òenterprise directorÓ?
–Taking orders vs. managing
–Òrisk avoidanceÓ vs. Òentrepreneurial riskÓ behaviors
4.Who decides what to do with generated income?
–In past ministry officials had major influence & control
–In past not much of an issue due to Òsoft-budgetÓ constraints
–Decision making skills & behavior must generate such income first!