Privatizing government enterprises is one of the most difficult tasks in the transformation process taking place in the former socialist economies. What contribution do management buy-outs have to make in coping with that task?

Partial privatisation, in which a more or less large number of residul shareholdings remain in the hands of the state, is a widespread phenomenon in the countries of Central and Eastern Europe. The following paper compares experiences in Poland with those of the UK, where there has been...