SFB 303 Discussion Paper No. A - 531

Author: Bös, Dieter
Title: The Treuhand - A Never-Ending Story
Abstract: In this paper we first investigate the Treuhand's responsibility for the east-German unemployment and for the total German public debt. We scrutinize the particular Treuhand policies which lie at the root of these two major burdens of the German future. Then we turn to the day-to-day activities of the Treuhand's successor companies, beginning with the BVS and its many problems with contract management and liquidations of non-viable enterprises. We state that the so-called management limited partnerships are an economic disaster, whereas the management buy-outs and buy-ins do much better than originally expected. Finally, we deal with the privatization of land and forests, and of houses and industrial reality. We note that these fields of privatization will continue for quite some time.
Keywords: Privatization, East Germany, Treuhandanstalt
JEL-Classification-Number: L 33
Creation-Date: September 1996
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