A Spoonful of Sugar: Privatization and Popular Support for Reform in the Czech Republic

Authors

John S. Earle, W.E. Upjohn Institute for Employment Research
Scott G. Gehlbach, University of California, BerkeleyFollow

Publication Date

2-21-2003

Source

Economics and Politics 15(1): 1-32

Abstract

We analyze the role of privatization in creating a constituency for economic reform, markets, and democratic institutions, focusing on the Czech Republic. Drawing on a 1996 survey, we examine the 1,459 respondents’ opinions on reforms, economic policies and systems, the legitimacy of transition, and democratic values. Using ordered probit estimation, we find that receiving property through restitution is strongly associated with support for reform and markets. Concerning voucher privatization, we find positive effects for participants retaining shares, but little impact of participation alone. Our simulations suggest that policy designs have substantial consequences for citizens’ support of reforms, markets, and democracy.

DOI

10.1111/1468-0343.00113

Publisher

Wiley

Subject Areas

INTERNATIONAL ISSUES; International labor comparisons; Transition economies