Comparison of two contemporary political and economic systems

Application of the German federal political model to Serbia and Vietnam is not an easy job. It is not possible to build either an efficient economy or a free society on the basis of social and state property. The main goal of privatization is to increase the efficiency of enterprises, which arises from healthier business motivations and is achieved through the reduction of expenses, financial re-capitalization, better work discipline, better organization, new investments, etc.

Another goal of the privatization process is to improve the financial situation of the state, which is to be done by means of the following three methods: based on the revenues gained from the process of privatization; based on the revocation of subsidies for state and social enterprises; and based on the increase in tax revenues from improved economic activities. For the cabinet, the attempt to increase its own political rating through the choice of a demagogically convincing privatization program may become an important goal of the privatization process, yet this goal is in contradiction with the first two goals. The privatization form living in Serbia is very bad. It does not guarantee that the privatization process will take place, the privatized enterprises do not increase their efficiency, and the model itself is not fair. Therefore, it should be rejected and replaced with a better one. The privatization experience of countries in transition, Serbia included, has shown that the sale of public and state capital is a far better model of privatization than the voucher and employee stockholding models of privatization. The basic components of the new notion of privatization are the following:· The basic model of privatization in Serbia should be the sale of public and state capital; · The privatization model should be adjusted so as to provide for a dominant owner (strategic investor) who is to own the control stock in the property in order to be able to efficiently manage the enterprise; · The prevalent method of sale should be the tender, i.e., the assembling of competitive bids following a public announcement. (Pickel, Andreas. PP. 206)

Price should be an important, but not the only, criterion in the selection of the bid; other elements, such as future investments, employment, etc., should be taken into consideration; · Foreign investors should have the same right to participate as domestic investors; · The government, management of enterprise and interested investors should have the right to propose a privatization program and thereby initiate the privatization of a given enterprise; (Wolfgang Pp. 29)

In the event that, after the sale, any unsold public or state capital still remains in a given enterprise, the remaining capital shall be privatized by means of a initial public offering, where money, frozen foreign currency savings or vouchers can be used as means of payment; · The state, which should be honest and enlightened, should fully participate and supervise the sale; · In the case o the privatization of certain bad banks, the state should temporarily step ...