Bankruptcy's Role in Enterprise Restructuring: A Hammer to Turn a Screw?
Author: S. Ramachandran Date: 3/1/1995 (PDF, 200KB)
The slow pace of restructuring state-owned enterprises in Eastern Europe is sometimes blamed on poor or missing bankruptcy laws to resolve outstanding claims. S. Ramachandran argues that the real reason is that the parties involved, often government officials, lack the incentive to act. The best solution is privatization.