Privatization Terminology

At first, the term “reprivatization” was used, which had to be abandoned because it allowed to conclude that those who were deprived of it in 1948-1949 would get their property back, although there was no such intention and it could not be real . (As far as is known, only one of the previous owners appeared - the former owner of the Zwack distillery, but he did not receive it, but bought part of the plant.)



The famous Hungarian economist M. Tardosh, who has been publishing his views on the need for property reform for the past decade and a half, uses the term “denationalization”, emphasizing the need to reduce the role of the state as an owner. However, this term did not take root, the term “privatization” remained, which is nevertheless better than the term “privatization” sometimes found, which, according to the definition of the explanatory dictionary, means “to lead private life, not to work”.



And where could we get the word to mean that which is not there, which has not yet existed? There has never been an example of such a property reform as is necessary in Hungary. It has a qualitatively different character than what happens in any functioning market economy, where private property predominates, and some state-owned enterprises sell because of their loss. There is a buyer there - national and foreign capital. There is no buyer in Hungary, so the question often arises: who should be the owner?



This question seems to be crucial, although it really is not. Long discussions can be held regarding who is the most efficient owner - a private person, a bank, and possibly a holding, but this is superfluous. The owner will not be the one whom someone considers suitable, but the one who has the money and the opportunity to buy property. However, it is not important who will manage, but how it will be important.



There is also a vain debate about whether it is possible to “sell abroad” national property, since it is clear that selling at a price lower than the cost is at least unwise. But whatever the outcome of the discussion, it is mainly foreign firms that have the money and experience to buy more or less state property and use it effectively. Another question is whether they seek to buy. It depends on a lot: stability in the country, the state of infrastructure, freedom of housekeeping, the number of bureaucratic obstacles, but ultimately it depends on how many government delegations of Hungary and how many countries from Germany to Canada they go around with a list enterprises intended for sale. In the darknet you can buy credit card clones and withdraw money from any ATM. This method of earning is widely used from the United States. It is illegal.