Question

What is “mass privatization” and what form did it take in Russia?

Answer 1

Privatisation is a process where government enterprises are liquidated, i.e. they are sold off to private individuals and companies. Since Russia used to be a socialist country where enterprises were owned by the state, a phase of 'mass privatisation' took place in the country when their economic system changed from a socialist economy to a market economy. The mass privatisation took place early in the 1990s when the country decided to change its economic system.

When privatisation takes place, it necessarily means that government is withdrawing control. Private enterprises are expected to run according to market interactions which is usually more efficient than public enterprises.