Privatization, with its ultimate objective of raising economic efficiency, has been central to the transformation of the economies of Eastern Europe and Russia. The perception of foreign direct investment in the privatization process of transitional economies is often shrouded in emotional prejudice and daily political needs and remote from rational economic considerations. Eastern Europe is no exception to this trend. This study identifies the presence of multinationals and their role in privatization in Eastern Europe. It binds together the current theoretical knowledge of foreign capital and privatization in transition economies with a close examination of the privatization policies and strategies in the Czech Republic, Hungary, Poland, Slovenia, Estonia and Russia.

This study identifies and analyzes the extent to which the transition economies of Central Europe, Russia, Central Asia and the Caucasus are likely to attract inward foreign direct investment (FDI) at the start of the new century and beyond. Although these countries have been growing recipients of FDI, multinationals have, to date, been slow to commit large investment sums. The book assembles a group of established and internationally respected contributors, whose objective is to draw out common characteristics and problems which the East European countries share, and which are likely to influence their economic strategies, both nationally and internationally.