Initialization of Privatization Through Restitution and Small Privatization

Abstract

This chapter analyzes the two unique routes of privatization—restitution and small privatization, which moved dramatically the Czech economy and society from a Soviet-type economy to a market economy and democracy of the Western type. Restitution and small privatization were unique processes that not only helped to create the foundations of an efficient market economy in the retail and the wholesale trade, catering, services and small manufacturing but also created a strong middle class in Czech society. This middle class consisted of real estate owners and traders and is considered to be a necessary condition for democracy and civic society.