Innovation and privatisation

1. Innovation and privatisation Dr. Laszlo Jager University of West Hungary Department of Forest Policy and Economics jagerla@emk.nyme.hu tel:+36-20-325-5383

2. Innovation Can we change the world? • concrete tent

4. Privatisation • privatisation in general selling of state property what? how? to whom? why? what does ownership mean? Prespectives: - historical - emotional - theoritical +implementation

5. Ownership Which is better? state private higher education public transport nature protection health service

6. Ownership Average: X

7. Ownership Example: • public transport in detail • train companies +who is the owner of the railroad? • Ryanair • local public transport +authorities

8. Tipical ownership structures state - private community ownership co-operation joint ownership

9. Specific ownership structures factories land forest different solutions needed the parking fee solution

10. Forest and ownership forest and owership – which is the better

11. Historical perspective socialism, communism capitalism feudalism ancient slavery palaeolithic age bc 476 1640 1917 time frame

12. Emotional background Hungarian prime minister wealth: 1990: 0 2004: 20 million EUR income 4000 EUR/day attitude of lottery winners

13. A question of life and death? Emotionalbackground

14. Emotionalbackground do we sell out the country? – is it good or bad?

15. Conclusion 1 in Eastern-Europe means more than just a simpe change of the ownership transformation of the economy means transformation of the society

16. Privatisation – theories How we can change the ownership from state to private? Why?

17. Economic features 1990-2000: total income from privatisation 12 800 million USD 1.768.400 million HUF in foreign currency 1.016 billion HUF in HUF (cash) 484 billion HUF in loan 85 billion HUF compensation voucher 182 billion HUF land privatisation 32 billion HUF of which forest privatisation 2 billion HUF

18. Privatisation – theories

19. Privatisation – techniques Wider sense: increasing competition • subcontracting technical services forestry entrepreneur: 1 chainsaw • allowing private competition pharmacies vs. supermarkets • establishment of public enterprises state forest companies in Hungary • change of regulation railway companies+private train

20. Privatisation – techniques Narrower sense • handing back to their former owners • selling productive assets • intermediate model – compensation voucher

21. Privatisation – techniques Narrower sense • selling productive assets • handing back to their former owners • intermediate model – compensation voucher Now which is the better?

22. Statistics

23. Transformation of the ownership system

24. Struggle with joint ownership the winner takes it all, the Hungarian invention

25. Transformation of the ownership system Hungarian model logical model

26. Privatisation and Innovation due to a new ownership system need some change on the level of • state intervention • legal system • administration system • education • social structures and self evaluation • emotional adaptation • crime and criminal treatments

27. Privatisation and forestry innovation new trends in forest management • large scalesmall scale • industrial wood fuelwood • machineryhorse power • harvesterchain saw

29. Privatisation and Innovation general trends in the economy forest onwership transformation which is stronger?

31. Private owner and innovation innovation forces? state pressure self interest external effects price of fuelwood doubled in two years

32. Conclusions theories-------------implementation mental and moral condition of the society short term ---------long term benefits fear of change clear ownership system