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Restructuring Networks in Post-SocialismLegacies, Linkages and Localities$
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Gernot Grabher and David Stark

Print publication date: 1996

Print ISBN-13: 9780198290209

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198290209.001.0001

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Renegotiating the Ties that Bind

Renegotiating the Ties that Bind

The Limits of Privatization in the Czech Republic

Chapter:
(p.70) 3 Renegotiating the Ties that Bind
Source:
Restructuring Networks in Post-Socialism
Author(s):

Gernot Grabher

David Stark

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198290209.003.0003

This chapter is concerned with the reconfiguration of Czech industrial manufacturing firms during the period of radical privatization and market liberalization of the late 20th century. It discusses how the reform of property rights and financial institutions gave rise to an alarming liquidity crisis and the preservation of large industrial manufacturing organization, yet with a diffusion of the very authority that privatization supporters argue must be concentrated and sovereign. The section ‘Reconsidering Property Rights and Restructuring’ examines two central theoretical issues: the relationship between property rights and the reorganization of firms, and the way property rights and institutions of economic governance are defined. The third section analyses how privatization has allowed the tight economic social relations among firms to reproduce. The fourth section looks into the reform of financial institutions. The fifth section studies how pre-existing financial and technical links provide the building blocks of control rights and obligations.

Keywords:   property rights, control rights, reconfiguration, liquidity crisis, manufacturing organization, radical privatization, market liberalization

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