Innovation and privatisation Dr Laszlo Jager University of

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

Innovation Can we change the world? • concrete tent

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

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

Ownership Average: X

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

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

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

Forest and ownership forest and owership – which is the better

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

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

Emotional background A question of life and death?

Emotional background do we sell out the country? – is it good or bad?

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

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

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

Privatisation – theories

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

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

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

Statistics registry area name birth village address type decision ownership 2_087/18 0, 2724 Fentős Pál 1978. 05. 14 CSESZTREG Teleki 7 gyep (rét 30928/2002. 21 3, 51 E-06 1_097/1 0, 1668 Tóth Frigyes 1952. 04. 08 SZATTA Fő 10 kivett 30053/49/1996. 10 7, 23 E-06 1_097/1 0, 1713 Tóth Frigyes 1952. 04. 08 SZATTA Fő 10 kivett 30053/49/1996. 10 7, 42 E-06 17_0617/21 0, 1992 Németh József 1929. 02. 03 ZALALÖVŐ Damjanich 16 gyep (rét 30012/147/1998. 0 8, 19 E-06 1_097/1 0, 2572 Tóth Frigyes 1952. 04. 08 SZATTA Fő 10 kivett 30053/49/1996. 10 1, 11 E-05 17_0617/21 0, 2874 Németh József 1929. 02. 03 ZALALÖVŐ Damjanich 16 gyep (rét 30012/147/1998. 0 1, 18 E-05 17_0564/52 0, 2089 Tóth László Miklós 1952. 12. 08 ZALALÖVŐ Petőfi 30 erdő 38391/2002. 05. 29 1, 43 E-05

Transformation of the ownership system

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

Transformation of the ownership system Hungarian model logical model

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

Privatisation and forestry innovation new trends in forest management – large scale small scale – industrial wood fuelwood – machinery horse power – harvester chain saw

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

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

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