Index

Page numbers for tables and figures are in italics accountability, 24, 121–22, 185. See also monitoring adaptive fitness, 10–11 AEG, 100, 219n. 111 Aero bank ownership of, 129–30 joint ventures, 100, 130, 219n. 111 organization and subsidiaries, 104–5, 108, 225n. 39 privatization strategy, 91, 100, 221n. 13 probing of new markets, 112 statistics, 100, 108, 108, 109 Agrobanka, 218n. 94, 231n. 1 Amsden, Alice H., 7 Anticorro, 106, 110, 226n. 47 Argentina, 186–87 Asselain, Jean-Charles, 203n. 24 Austro-Hungarian Empire, 31, 203n. 13 Autech, 106, 226n. 47 Avia, 219n. 111 Banka Bohemia, 138–39, 140, 145–46 bankruptcy. See also specific firms atomization and, 229n. 73 bank insolvencies, 93–94, 146 banks’ reluctance to initiate, 85 laws, Hungarian, 164 legislative reforms, 80, 174 statistics, 216n. 73 banks, Czech. See also debt; loans; specific banks and Aero, 130 authority structures constructed, 3 banking reforms diluted, 188 bank IPCs, 86, 88–90, 93 bank restructuring, 73–74, 79–85, 146, 213n. 43

and corporate restructuring, 4, 74, 79–85 debt policies, 21–22, 201n. 73 (see also debt) debt statistics, 78, 79, 213nn. 38, 40–41 government insurance, 234n. 33 and government intervention in Pojistovna, 157 (see also Ceská Pojistovna) and holdings’ restructuring, 100–101, 118–20, 121, 123–24, 221–22n. 13, 229n. 72, 229–30n. 74, 230n. 75 interest rates, 84, 215n. 70 new small banks, 132, 234n. 33 portfolio cleaning, 20, 84–85 relationship with transforming firms, 80–81, 83–85, 93, 167, 215–16n. 72 and SST, 138–39, 140, 145–46, 159, 171 and VHJs, 37–38 voucher privatization, 79 banks, Polish, 79 bargaining and network position, 168 VHJ/koncern bargaining frameworks, 45–46, 47, 49–50, 51–53, 55, 62 and ZPS/SST, 156–61, 162–63, 171–72 Bata, Tomás (father), 33, 149, 204n. 25, 235nn. 42 Bata, Tomás (son), 150, 235n. 49 Boeing, 130 Bohemia Art, 221–22n. 13 Borsig-Babcock, 219n. 111 brokerage strategy, 156 Bruszt, Laszlo, 9–11, 187–88, 199nn. 41, 43, 201n. 73. See also Stark, David bureaucratization through accommodation, 14 buyouts, 135, 138, 233n. 21 283

284

Celákovice, 48, 136, 138, 141, 153, 154 Central Bank. See Czech National Bank; State Bank of Czechoslovakia centralization. See also decentralization central planning undermined by VHJs, 43–44 in the CSFR/CR, 19, 21, 160–62, 168, 172, 188–89 (see also Klaus, Vaclav: consolidation of power) Ceská Pojistovna, 89, 132, 149, 150–51, 156–58, 231n. 2, 235n. 52, 238n. 74 Ceská Sporitelna, 89 Ceskoslovenská Obcholdní Banka (CSOB), 84–85, 89, 139, 140, 145, 146, 234nn. 29–31, 34 Chemapol, 91, 129, 219n. 111 chemical industry debt and liquidity, 78, 79, 82, 83 production and exports, 76 reorganization into VHJs, 34 vouchers and FDI, 90–91 Christian Democratic parties, 69 Civic Democratic Alliance (ODA), 70, 71, 158, 162, 210n. 21 Civic Democratic Party (ODS), 69, 70, 71, 210n. 21 Civic Forum (OF), 69–70, 150 Civic Movement (OH), 70, 71–72, 210n. 21 CKD Praha debt, 107–8, 109, 224n. 31 employment statistics, 100 financial status (1992), 108–9 government action, 100, 129, 221n. 13 joint ventures, 100, 112, 219n. 111 organization, 105 privatization strategies, 91, 100, 104, 221n. 13 probing, 112 production profile and links, 104, 105, 222nn. 18–19 subsidiaries, 100, 104, 107–8, 222n. 19, 225n. 39 (see also Tatra) as VHJ, 37, 40 CMEA. See Council for Mutual Economic Assistance CMKOS. See Czech and Slovak Confederation of Trade Unions CNB. See Czech National Bank

Index

CNC (computer numerically controlled) control systems, 142–43, 144, 145, 234n. 28 collaboration. See cooperation communism, 6, 9–10, 30–31. See also communist political economies; Czechoslovak Socialist Republic communist political economies (CPEs). See also Czechoslovak Socialist Republic bureaucratization through accommodation, 14 decentralization, 29–30 economic model, 28 managerial autonomy, 29 and shortage economies, 14–15 Taylorism, 30–31, 202n. 8 conflict mediation. See also network conflicts; restructuring conflicts; and specific firms deliberative approach, 23–25 (see also delegated deliberative restructuring) government mediation, 9, 21, 22–23, 117–18 Consolidation Bank (KOB), 188, 213n. 43, 216n. 76 and Aero, 130, 161, 221n. 13 loan extensions/write-offs, 85, 155, 214nn. 52–53, 216n. 74 Revitalization Agency, 174 continuity approach, 1–2, 9–12, 18, 164, 169–70, 201n. 61. See also Stark, David contracts, 23 complete contracts, 21–22, 113, 167 incomplete contracts, 22–25, 112, 117, 120–21, 169 (see also delegated deliberative restructuring) and monitoring frameworks, 184 Controls (Skoda plant), 102, 103, 103 cooperation, 18. See also contracts; networks challenges to, 168, 183 (see also network conflicts; restructuring conflicts) decline of, within SST, 141–43 government as partner, 22–23 (see also conflict mediation; delegated deliberative restructuring)

Index

Council for Mutual Economic Assistance (CMEA) exports to, 39, 205n. 61 exports to former states, 75, 116–17, 148 CPEs. See communist political economies CR. See Czech Republic cross-collateralization, 107, 108, 223–24n. 28 CSB. See Czech Savings Bank CSFR. See Czecho-Slovak Federated Republic CSOB. See Ceskoslovenská Obchodní Banka CSSR. See Czechoslovak Socialist Republic Ctyrkoly, 136, 138 currency crises, 185, 242n. 47 Czech and Slovak Confederation of Trade Unions (CMKOS), 70–71 Czech National Bank (Central Bank; CNB), 79, 146, 157, 158, 213n. 43, 231n. 1 Czechoslovak Communist Party (KSC), 31–32, 37–38, 69, 203nn. 16. See also Czechoslovak Socialist Republic Czecho-Slovak Federated Republic (CSFR). See also Klaus, Vaclav; and specific ministries centralization, 19, 21, 160–62, 168, 172, 188–89 communist legacies, 66–69, 210n. 13 debt (see debt in the CSFR/CR) economic statistics, 66, 67, 68, 75, 75, 212–13n. 37 employment statistics, 66, 67, 75, 75 government intervention (see government involvement/intervention) labor market policy, 70–71, 211nn. 23–24 local government reorganized, 71 ministries divided, 70, 210n. 21 political parties, 69 (see also specific parties) privatization (see privatization in the CSFR/CR) reform legislation, 70, 210n. 18 trade unions/social groups, 69, 70–71, 210n. 13 velvet divorce, 209n. 3, 210n. 17

285

Czechoslovakia after communism (see Czech Republic; Czecho-Slovak Federated Republic) under communism (see Czechoslovak Socialist Republic) interwar production, 32 Czechoslovak Socialist Republic (CSSR), 8 budget cuts to VHJs, 49, 207n. 91 as CPE, 28, 166 decentralization, 29–30, 31–32, 36, 62, 203nn. 16, 18, 204n. 33 economic liberalization, 58–59 economic statistics, 30, 209n. 5 employment statistics, 30, 34, 35, 59, 60, 61, 66 mechanical engineering industry (see mechanical engineering industry (CSSR)) normalization policies, 37–38 production, 28, 32–33 trade policy’s impact on industry, 39, 40 VHJs (see VHJs) Czechoslovenská Obcholdní Banka. See Ceskoslovenská Obcholdní Banka Czech Republic (CR), 65–66. See also Czecho-Slovak Federated Republic; Klaus, Vaclav; and specific ministries “change team,” 4 compared with Poland, 174–76, 175, 240n. 24 debt (see debt in the CSFR/CR) depoliticization (see depoliticization) economic revitalization efforts, 174 economic statistics, 67, 68, 238n. 2 employment statistics, 67, 164, 176, 219n. 112, 238n. 2 FDI in (see foreign direct investment) firms and companies (see firms, Czech; and specific firms) government intervention (see government involvement/intervention) industrial production, 174–75, 175 local governments, 71 privatization (see privatization in the CSFR/CR) regional development agencies (RDAs), 178 transformation of, 1–2, 4, 64–66, 164

286

Czech Savings Bank (CSB), 79, 151, 154, 213n. 43, 229nn. 72, 235n. 50 debt in the CSFR/CR. See also banks, Czech; loans; and under specific firms foreign debt, 66, 68 of holdings, 106–10 industrial debt, 76, 77, 78, 78, 84–85, 213nn. 38, 40–41 interfirm debt, 53–54, 83–84, 215, 215n. 64–65 as percentage of GDP, 74 policies, 21–22, 201n. 73 decentralization. See also delegation; polycentric networks in the CSSR, 29–30, 31–32, 36, 43–44, 62, 203nn. 16, 18, 204n. 33 decentralized development in Latin America, 186–87 of hierarchical holding companies, 96–97 delegated deliberative restructuring (DDR), 96, 97, 171, 182 future of, 130–31 monitoring triangles, 121, 121, 125–28 1999–2000, 174 and other firms, 129–30 and Skoda, 120–28, 121, 129, 159, 160, 162 delegation. See also decentralization; delegated deliberative restructuring; public-private governance orders accountability and, 24, 121–22 benefits, 183–84 and deliberation, 23, 182–83, 185–89 (see also deliberation) deliberation. See also delegated deliberative restructuring and accountability, 185 and delegation, 23, 182–83, 185–89 (see also delegation) deliberative associations, 11, 199n. 41 deliberative restructuring, 23–25, 180–81, 184–86 and monitoring, 121, 185 and political conditions, 187–89 depoliticization CR as example of depoliticized transformation, 7–9

Index

failures in the CR, 7–8, 93, 96, 167 and hierarchical networks (see Skoda Plzen) and network conflicts, 20–22, 168–69, 170–71 and polycentric networks, 144–48, 149, 152–53 and privatization, 20, 93, 167 (see also privatization in the CSFR/CR) and probing, 113 property rights vs. statist theories, 6–7, 197n. 19 of restructuring process, 6–7, 73 weaknesses of approach, 11–12 developmental statist theories. See statist theories direct privatization (lease-buy option), 176–77, 189 discontinuity approaches, 6, 7–8, 169–70 district councils, in the CSSR, 44, 54–56, 57. See also narodni vybory Dobris, 136 Dow Chemicals, 219n. 111 EBRP. See Enterprise–Bank Restructuring Program economic governance orders (defined), 4, 5–6 economistic theories. See property rights: theories Ejpovice, 47 embedded politics approach, 12–13 comparative analysis of Czech vs. Polish restructuring, 172–81 Czech transformation evaluated, 165–72 defined, 2–3 deliberation and delegation in, 23–25, 181–82 (see also delegated deliberative restructuring; delegation; deliberation) political constructionist view of networks, 18–19, 239n. 6 politics of governing institutional experiments, 181–89 and probing, 114 and risk-sharing strategies, 148–49

Index

sustainable restructuring and deliberative governance structures, 4–5, 22–25 value of, 163 employment. See also under specific firms in the CR, 67, 164, 176, 219n. 112, 238n. 2 in the CSFR, 66, 67, 220n. 6 in the CSSR, 30, 34, 35, 59, 60, 61, 66 lay-offs, 226n. 52 over-employment, 113, 226n. 52 vocational training, 143–44, 146–47, 150, 235n. 42, 237n. 65 Energetické Centrum, 106, 110, 223n. 26 Energetika, 149 Energo. See Siemens engineering industry. See mechanical engineering industry Enterprise–Bank Restructuring Program (EBRP), 21, 177–78, 179 ETD (Skoda plant), 102, 103, 103 Evans, Peter B., 198n. 26 Fairchild, 100 FDI. See foreign direct investment Federal Republic of Germany (FRG), 39 Ferrona, 142 Finance, Ministry of (MF), 210n. 21 and bank restructuring, 79–80 and 1990 reforms, 70 FNM controlled by, 158, 188 and the KOB, 161 labor market policy and, 210n. 23 and Pojistovna, 157, 158 and SST, 147 FINOP, 139, 140, 146, 232n. 12 firms, Czech. See also employment; specific firms and industries centralization’s effects on, 19 communist legacies, 9, 66–69, 210n. 13 cooperation with customers, 98, 220n. 7 councils’ relationships with, 54, 208n. 103 debt and liquidity, 77, 78, 78, 79, 84–85, 106–10, 213n. 40, 215–16n. 70 (see also debt) FDI (see foreign direct investment) holding companies (see holding companies, Czech)

287

IPCs’ shareholding, 87–88, 88, 89, 217n. 86 managerial autonomy/control, 98–99 number of firms (post–1989), 220n. 6 post-communist interdependencies, 10 privatization process, 72–73, 90–91 (see also privatization in the CSFR/CR) production and exports (1989–93), 75, 75 production linkages, 102–6 relationship with restructured banks, 80–81, 83–85, 93, 167, 215–16n. 72 and the stock market, 87–88 VHJs (see VHJs) voucher privatization (see voucher privatization) First Privatization Fund. See První Privatizacní Fund FNM. See Fund for National Property foreign direct investment (FDI). See also specific firms buyout FDI, 138, 233n. 21 in the Czech Republic, 8 equity held for, 72, 87, 91, 100–101, 221n. 13 (see also Fund for National Property) failure of, 65–66, 90–92 joint ventures (see joint ventures) statistics, 90–91, 219–20n. 112, 227n. 60 stock market investment, 218n. 89 foreign trade organizations, 59 France, 39 Fund for National Property (FNM), 70, 73 bank shareholdings, 89 bonds issued, 85, 215n. 69, 216n. 74 control and management of, 158, 160–61, 162, 188, 210n. 21, 214n. 50 equity held by, 86, 91, 95, 100–101, 115, 155, 217n. 84, 221–22n. 13, 223–24n. 28, 238n. 74 and loan write-offs, 80, 85, 214n. 52–53 and Pojistovna, 157, 158 and Poldi, 130, 221–22n. 13 and Skoda, 118, 119 and ZPS, 154, 155, 157, 160

288

governance orders DDR (see delegated deliberative restructuring) economic governance orders (defined), 4, 5–6 public-private governance orders, 164, 165–66, 177–78, 180, 181–89 (see also government involvement/intervention; holding companies, Czech; and specific firms) statist theories and, 7 government involvement/intervention, 3, 5, 181–82. See also public-private governance orders in CKD Praha, 100, 129, 221n. 13 government mediation, 9, 21, 22–23, 117–18 in holding companies, 95, 96, 100–101, 117–20 in Poldi, 100, 130, 221n. 13 and polycentric networks, 157–61, 171–72 in Skoda, 3, 5, 100, 117–20, 169, 171, 185, 221n. 13, 229nn. 70, 72–73, 229–30n. 74 in TST/SST, 3, 5, 101, 146–47, 157–63, 169, 171–72, 222n. 13 hierarchical networks, 16, 16, 17, 26, 166, 171. See also holding companies, Czech; networks; Skoda (pre-1990); Skoda Plzen; VHJs and DDR, 120–28, 171 debt and liquidity, 106–10 and joint ventures, 115–18 and probing, 110–15 production linkages, 102–6 Skoda as, 56–57, 57 (see also Skoda Plzen) after VHJ dissolution, 59, 62, 96, 98–99 holding companies, Czech, 10, 95–96, 99. See also hierarchical networks; specific firms debt and liquidity, 106–10, 108 and depoliticization, 96, 171 government intervention, 95, 96, 100–101, 117–20

Index

incomplete contracts and underinvestment, 112, 113–14 joint ventures (JVs), 115–18 over-employment, 113, 226n. 52 privatization strategies, 99, 100–101 probing, 111–15, 122–25 production linkages, 102–6 restructuring conflicts, 96–97, 117–22 spin-offs, 110, 225n. 39 Holice, 136, 138 Hostivar, 136, 138, 141, 153–54, 155 Hrncír, Miroslav, 200n. 64 Hulín, 137, 138 Hungary, 66, 67, 67, 68, 74, 79, 80, 164 Hut (Skoda plant), 103–4 IB. See Investicni Banka incomplete markets theory, 183 industrial associations for economic planning. See VHJs Industry and Trade, Ministry of (MPO) areas controlled, 95, 158 control of, 70, 162 and holding companies, 100–101, 221n. 13 privatization policies, 71–72 and Skoda, 119 and SST, 146–47, 157, 158, 159 INPRO, 221n. 13 Inter-American Development Bank, 187 interest rates, 84, 215n. 70 Investicni Banka (Ivesticni Postovni Banka) (IB), 79 and holdings, 118–20, 123–25, 157, 221n. 13, 229nn. 71–72, 230n. 75 loans, 80, 81, 84–85 and SST, 145–46 investment. See also foreign direct investment; joint ventures limit investments, 50–51 underinvestment, 112, 113 investment privatization companies (IPCs) asset stripping, 11 and communist legacies, 9 vs. investment privatization funds, 216n. 78 limits and weaknesses, 86–90, 93

Index

main banks’ assets acquired by, 132 shareholdings, 86–87, 88, 89, 217n. 86 Stark’s analysis, 10–11 takeover attempts, 89, 218n. 94 and ZPS, 154 (see also Prvni Privatizacni Fund) IPCs. See investment privatization companies ISB, 139, 140, 232n. 14 Iveco, 101, 219n. 111 Jasová, 138 Jezek, Tomás, 214n. 50 Jirásek, Jaroslav, 41, 43 joint ventures (JVs), 91–92, 219nn. 109–10. See also specific firms failure of, 92, 93, 97, 100–101, 219n. 111 with holding companies, 115–18 sought by Czech firms, 98, 99, 221n. 9 with TST/SST firms, 138 JVs. See joint ventures KB. See Komercni Banka Klaus, Vaclav, 8, 70, 198n. 28, 210n. 20 consolidation of power, 160–61, 162, 172, 188 labor market policy, 70 and loan write-offs, 80, 214n. 54 privatization policies, 71–72 KND, 106, 110, 226n. 47 Knight, Jack, 201n. 61 KOB. See Consolidation Bank Komercni Banka (KB), 79 hostile takeover of KB funds, 231n. 1 IPC/FNM holdings in, 89 loans, 80, 81, 84–85, 215–16n. 72 and Pojistovna, 157 and Poldi, 130, 221–22n. 13 and Skoda, 118–20, 123–25, 221n. 13, 229n. 71 and SST, 145–46 and ZPS, 150, 153, 154 koncerns, 45, 45–46, 47, 59, 206n. 70. See also Skoda (pre-1990); VHJs Kovárna, 102, 103, 103, 107 Kovosvit, 48, 136, 138, 141, 142–43, 145, 153, 154, 237n. 67

289

Kreditní Banka, 153, 157, 158, 238n. 76 Kurim, 48 employment statistics, 137, 138 financial status, 153–54, 155 and PPF, 153 privatization strategy, 138 production profile, 137, 141, 142, 232n. 6 relationship with other SST firms, 142, 155 Labor and Social Affairs, Ministry of (ML), 70, 210n. 23 labor market policy, 70–71, 211nn. 23–24 labor unions. See unions LADA Sobeslav, 138 last-call principle, 123, 125 Latin America, 185, 186–87 learning experiments, restructuring and institution building as, 183 Let, 108 Liaz, 91, 101, 105–6, 108, 110, 219n. 111, 223n. 24, 225–26n. 47 limit investments, 50–51 Lipník, 138 liquidation, 176, 189 loans. See also banks, Czech; debt bank holdings, 79 cross-collateralization, 107, 108, 223–24n. 28 debt-equity ratios (1991–93), 78, 78 growth, 84–85 loan write-offs, 80, 85, 214n. 52–54, 215–16n. 72, 216n. 74 portfolio-cleaning strategies, 84–85 risky/doubtful loans, 81, 82, 83, 216n. 74 Skoda loans, 123–25, 126–27, 229nn. 71–72, 230n. 85 TOZ loans, 213n. 43, 215n. 71 TST/SST loans, 52–53, 145–46 VHJ operating loans, 50, 51, 207–8. 92 local government. See narodni vybory; regional/local government Loco, 124–25 machine tool industry. See mechanical engineering industry; SST; TST; ZPS Zlin

290

Maison Lazard, 219n. 111 Malenovice, 235n. 42 management. See also VHJs; and specific firms in CPEs, 29, 30–31, 202n. 8 management buyouts (MBOs), 135, 138 managerial autonomy, 29, 98–99, 106 (see also centralization) relationships with councils, 54–55 Taylorism, 30–31, 202n. 8 manufacturing sector. See also mechanical engineering industry; and specific firms and FDI, 91 industrial production (1990–98), 175–76, 175 loan statistics, 81, 82, 83, 85 mass production Taylorism, 30–31, 202n. 8 universal/technological principles, 33, 43 mechanical engineering industry (CSFR/CR). See also firms, Czech; and specific firms debt and liquidity, 77, 78, 79, 85, 109–10, 213n. 40, 215–16n. 72 employment statistics, 100–101, 136–37, 138, 144, 219n. 112, 220n. 6 and FDI, 90–91, 219nn. 111–12 loan statistics, 82, 83 number of firms (post–1989), 220n. 6 production and exports (1989–93), 75, 75, 76, 212–13n. 37 production statistics (1994), 219n. 112 reorganization into VHJs, 34 vouchers vs. FDI, 90–91 mechanical engineering industry (CSSR), 30. See also VHJs autarky and diversification, 40–43 employment statistics, 30, 34, 35, 59, 60, 61 industrial concentration, 59, 60, 61 preexisting production practices, 32–33 production runs and standardization, 42, 205n. 58 trade policy’s impact on, 39, 40 Melník, 136, 138, 233n. 21

Index

Meotopa, 106, 223n. 24 Mercedes-Benz, 101, 219n. 111 MF. See Finance, Ministry of Miller, Petr, 70 ministries. See Finance, Ministry of; Fund for National Property; Labor and Social Affairs, Ministry of; Privatization, Ministry of ML. See Labor and Social Affairs, Ministry of monitoring. See also accountability creating frameworks, 183–84, 185 monitoring triangles, 121, 121, 125–28 Motoinvest, 218n. 94 Motorpal, 106, 223n. 24, 225n. 39 MP. See Privatization, Ministry of MPO. See Industry and Trade, Ministry of municipalities, local. See narodni vybory; regional/local government narodni vybory (territorial administrative councils) dismantling of, 71, 96, 114–15, 188–89 relationship with VHJs, 16, 44, 54–56, 57, 57, 58, 59, 208n. 102–3 vocational training centers, 143 negotiation. See conflict mediation; government involvement/intervention; and specific firms Nero (firm), 221n. 13 network conflicts, 18–19. See also restructuring conflicts; and specific firms complete contract resolutions, 21–22, 113, 167 depoliticization and, 20–22, 168–69, 170–71 factors influencing, 18, 23–24, 173 government mediation/involvement, 3, 5, 9, 21, 22–23, 117–22, 181–82 networks. See also hierarchical networks; polycentric networks; VHJs; and specific firms communist legacies, 9–10, 66–69, 210n. 13 conflicts within (see network conflicts; restructuring conflicts) cooperation within (see cooperation) creation of, in CPEs, 14–15 and deliberative associations, 11

Index

effects of change/uncertainty, 2–4, 18 external private partners, 22 (see also foreign direct investment; joint ventures) incomplete contracts, 22–25, 112, 117, 120–21, 169 (see also delegated deliberative restructuring) key variables, 173 network properties of assets (defined), 14–19 network ties (defined), 12 privatization’s effects on (see privatization in the CSFR/CR) public power and network stability, 160–61 (see also delegated deliberative restructuring; ZPS Zlin) reproduction after VHJs, 56–62, 91, 98 (see also specific firms) and rules creation, 12–13 in Stark and Bruszt’s work, 9–11, 199–200n. 52, 199nn. 41, 43 Stark’s analysis, 10–11, 199n. 41 (see also Stark, David) Nová Hut, 91, 129 ODA. See Civic Democratic Alliance ODS. See Civic Democratic Party OF. See Civic Forum OH. See Civic Movement OK (Skoda plant), 102, 103, 103, 107, 123–24 path dependent theory, 9–11. See also Bruszt, Laszlo; Stark, David Pojistovna. See Ceská Pojistovna Poland bankruptcy schemes, 80 banks, 79, 188 delegation in, 178–79, 186, 189 economic/financial statistics, 67, 68, 74 employment statistics, 67, 176 Enterprise-Bank Restructuring Program, 21, 177–78, 179 industrial production, 174–75, 175 regional/local government, 177, 178–79, 186, 189, 241n. 26 restructuring and privatization, 66–67, 164, 175–80, 182, 238n. 3 trade unions, 69

291

Polanyi, Karl, 13 Poldi Kladno debt, 109, 110, 224–25n. 37 employment statistics, 100 financial status (1992–93), 108–9, 224–25n. 37 government intervention, 100, 130, 221n. 13 joint ventures, 100, 219n. 111 managerial autonomy/control, 106, 223n. 26 privatization strategies, 91, 100, 227n. 57 probing of new markets, 226n. 47 production links, 106 subsidiaries and organization, 106, 110, 221n. 13, 223n. 26, 226n. 47 utilities cut off, 110, 224–25n. 37 political parties, creation of, 69, 210n. 11 polycentric networks, 16, 16, 17, 171. See also networks; VHJs government negotiation and, 157–61, 171–72 probing within, 140–44 TST/SST as, 57, 58, 133, 134–35, 166 (see also SST; TST) PPF. See První Privatizacní Fund Pragobanka, 150–54, 157–58, 159, 235nn. 50–52 Prague Stock Exchange (PSE). See stock market, Czech Prasad, Rashemi, 197n. 19 Pratt & Whitney, 100, 130 Premusová, Jarmila, 55 privatization. See also privatization in the CSFR/CR; restructuring and asset value, 20–21 direct privatization and liquidation, 176–77, 189 government as monitor, 184 mass privatization, 8 (see also voucher privatization) in Poland (see Poland) and probing, 113–14 Privatization, Ministry of (MP), 72–73, 95, 98, 214n. 50, 219n. 110 privatization in the CSFR/CR, 1, 8, 10, 19. See also foreign direct investment; Fund for National Property;

292

privatization (continued ) Privatization, Ministry of; and specific firms and entities banks, 79 (see also banks, Czech: bank restructuring) holding companies’ strategies, 99, 100–101 impact on hierarchical networks, 95–96, 98–99 (see also Skoda Plzen) joint ventures (see joint ventures) after Klaus’s power consolidation, 188 policies, 65, 71–73, 91, 92–93, 95–97, 167, 174, 212n. 29 voucher privatization (see voucher privatization) probing, 111, 168 in holdings, 111–15, 122–25 and over-employment, 113, 226n. 52 within SST, 140–44 and underinvestment, 112 production links, in hierarchical networks, 102–6 property rights delegation and, 23 and the development of VHJs, 17 and probing, 113–14 renogotiation tied to restructuring, 21 theories, 6–7, 20, 139–40, 181 (see also tabula rasa approach) První Privatizacní Fund (First Privatization Fund (PPF)), 88, 150, 151, 154–55, 157–60, 159, 171–72, 235n. 50 Public Against Violence (VPN), 69–70 public goods, identification of, 181 public-private governance orders, 164, 165–66, 177–78, 180, 181–89. See also government involvement/intervention; holding companies, Czech; and specific firms R&D. See research and development Rakovnik, 48, 137, 138, 232n. 6 regional development agencies (RDAs), 178 regional/local government in the CSFR/CR, 71, 115, 178, 227nn. 57–58 in the CSSR (see narodni vybori)

Index

in Latin America, 187 in Poland, 177, 178–79, 186, 189, 241n. 26 weakening of, 188–89 research and development (R&D), 143–44 restructuring, 5, 8–9. See also restructuring conflicts; and specific banks and firms deliberative restructuring, 11, 184–86, 199n. 41 (see also delegated deliberative restructuring) depoliticization of (see depoliticization) dilemma of, 167 embedded politics approach and (see embedded politics approach) other theories and, 6–7, 20, 113 (see also continuity approach; property rights: theories; statist theories) restructuring conflicts. See also delegated deliberative restructuring; and specific firms effect on public and financial institutions, 133–34 (see also SST; ZPS) government involvement/intervention, 3, 5, 9, 21, 22–23, 95, 96, 117–22, 181–82 in hierarchical networks, 96–97 and joint ventures (JVs), 115–18 not suggested by recent research, 110–11 probing as cause, 111–15 and voucher privatization, 73 Revitalization Agency, 174, 186 Rockwell, 130, 219n. 111 rules governing assets, creation of, 12–13, 185 SBCS. See State Bank of Czechoslovakia Shleifer, A., 238n. 3 shortage economies, 14–15, 39. See also communist political economies SID, 106, 110, 226n. 47 Siemens, 100, 115–18, 219n. 111, 228nn. 65, 68 Skalicky, Josef, 214n. 50 Skoda Export, 59, 225n. 39 Skoda Mlada Boleslav (Skoda MB), 228n. 67

Index

Skoda Plzen, 3, 168–69. See also Skoda (pre-1990) compared with TST/SST, 132–33, 159, 160, 162, 170–71, 231n. 3 councils’ relationships with, 55, 59 and DDR, 120–28, 121, 159, 160 debt, 53–54, 107, 109, 118, 119, 129 employment statistics, 100, 113, 226n. 53 financial status (1992–present), 108–9, 129, 130 government intervention, 3, 5, 100, 117–20, 169, 171, 185, 221n. 13, 229nn. 70, 72–73, 229–30n. 74 as hierarchical network, 97 influence in Skoda VHJ, 47, 52, 56–57, 57 joint ventures, 100, 112, 115–18, 219n. 110, 228nn. 65, 68 management, 59, 62, 115–16, 117, 118 organization, 100, 103, 115–16, 121, 125–26 privatization strategies, 91, 100, 115, 117–20, 221n. 13, 227nn. 57, 61, 229nn. 70, 72 probing, 111–12, 122–25 production links, 102–3, 103, 123 production programs, 47, 102–3, 116–17, 119, 123, 124–25, 228n. 68 sales, 108, 111–12, 129 shut-downs, 117 Skoda VHJ’s conversion into, 59 subsidiaries, 102, 103–4, 103, 107, 123–26, 225n. 39 Tatra and Liaz purchased, 101, 130 Skoda Praha, 47, 59, 225n. 39, 232n. 14 Skoda (pre-1990), 30, 36, 37, 40–43, 40, 47, 52, 56–57, 57 Skoda Works, 32 Slevárna, 137, 138, 151 Slovak Republic (SR), 67, 68 small and medium-size businesses (SMEs), 175, 176 Smeral Brno, 48, 137, 138, 141, 143, 153 SMEs. See small and medium-size businesses SM (ZPS subsidiary), 151, 236nn. 56–57 Solidarity, 175, 189

293

Soudek, Lubom, 118–20, 121, 124, 128, 229n. 71, 230n. 75 SST (Svaz vyrobcu a dodavetelu strojírenské techniky (Union of Manufacturers and Suppliers of Engineering Technique)). See also TST; ZPS Zlin; and specific SST member firms bargaining links to government, 146–47 compared with Skoda, 159, 160, 162, 170–72 employment statistics, 136–37, 138, 144 exports, 233n. 18 financial network/dealings, 133, 138–39, 140, 145–46, 147–48 financial status of members, 140–41, 153–54, 233n. 18 formation, 59, 62, 133, 135 fragmentation, 139–48 government intervention, 158–61, 169, 171–72 organization and structure, 62, 134–35, 138–39, 140, 147–48, 153, 159 privatization strategies of member firms, 133, 135, 138 probing vs. inherited ties, 140–44 production profiles of members, 136–37, 141 and Strojimport, 135, 140, 145, 232n. 9, 234n. 32 vocational training, 143–44, 146–47 ZPS’s growing control over, 153–56, 158–61, 159, 237nn. 68, 71–72 (see also ZPS Zlin) Stalin, Josef, 31 Stankov, 47 Stark, David, 9–11, 173, 187–88, 199–200n. 52, 199nn. 41, 43, 201n. 73 State Bank of Czechoslovakia (SBCS), 16, 44, 49, 53–54, 56–57, 57, 58, 213n. 47. See also Czech National Bank statist theories, 6–7, 20, 181, 198n. 26 steel industry, 78, 78, 85, 90–91, 213n. 40, 220n. 6, 222n. 17. See also Poldi stock market, Czech, 218n. 101. See also voucher privatization intransparency, 86, 89

294

stock market, (continued ) and IPCs, 86, 87–90 (see also investment privatization companies) market capitalization, 87–88, 217–18n. 89 strategy (defined), 13 Stredokluky, 136, 138 Strojimport, 135, 139, 140, 145, 147, 232n. 9, 234nn. 29, 32, 236n. 58 Strojírny, 106, 110, 226n. 47 Svaz vyrobcu a dodavetelu strojírenské techniky. See SST Svit, 150, 235n. 42 Svitavy, 137, 138, 141–42 tabula rasa approach, 1, 6, 11–12, 164. See also property rights: theories; statist theories Tatra Koprivnice debt, 108, 109, 110 financial status (1992), 108–9 government intervention, 101, 222n. 13 joint ventures, 101, 219n. 111 privatization strategies, 91, 95, 101 probing, 225–26n. 47 production links, 105–6, 223n. 24 shut-downs, 108 Taylorism, 30–31, 202n. 8 territorial administrative councils. See narodni vybory Tesla, 142 Thermosondy, 106, 226n. 47 Tosovsky, Josef, 213n. 47 TOS Kurim, 219n. 111 Trade, Ministry of. See Industry and Trade, Ministry of trade unions, 69, 70–71, 210n. 13 transformation. See Czech Republic (CR); privatization; restructuring Trinecké Zelezarny, 91, 129 Trinec Steel Holding, 235n. 50 Tríska, Dusan, 86 trucks, production of, 105. See also Liaz; Tatra TS (Skoda subsidiary), 123–24 TST (Továrny Strojírenské Techniky), 3, 30, 36, 168–69 autarky and diversification, 48–49

Index

compared with Skoda, 132–33, 170 councils’ relationships with, 56, 208n. 108 directorate and structure, 48, 52, 57, 58, 59, 134–35 employment statistics, 231n. 3 financial management, 52–53, 54 as koncern, 48 as polycentric VHJ, 57, 58, 134–35 (see also polycentric networks) privatization strategies, 133, 135 production practices, 43, 48 production programs and links, 134–35, 232n. 6 SST association formed, 59, 62, 133, 135 (see also SST) and Strojimport, 135, 145, 232n. 9 Union of Manufacturers and Suppliers of Engineering Technique. See SST Union of Soviet Socialist Republics (USSR), 39, 75, 205n. 61 unions, 69, 70–71, 150, 210n. 13 United States, 39 universal production principles, 33, 43 USSR. See Union of Soviet Socialist Republics Varnsdorf, 137, 138, 145, 233n. 22, 234n. 31 VHJs (vyrobní hospodacsky jednotek (Industrial Association for Economic Planning) ), 15–17, 16, 36–37, 56, 166. See also hierarchical networks; polycentric networks; and specific VHJs autarky and diversification, 29, 40–43, 98, 166, 205n. 50 autonomy, 36–37, 44, 49–51, 204n. 33 bank stability and former VHJs, 83–84 bargaining framework, 45–46, 62 conflicts within former VHJs, 18–19 (see also network conflicts; restructuring conflicts; and specific firms) development and guiding principles, 33–36, 34, 35, 166 dissolution, 58–59, 98, 99, 135 financial management, 37–38, 49–51, 55, 204n. 33

Index

financial reforms’ effect on, 49–54 interfirm debt, 53–54 investment, 43, 51–52, 52 koncern form, 45, 206n. 77 ministries overseeing, 35 and normalization policies (1970s), 37–38 number of branches/groups, 40 planning, 43–44, 45–46 production, 29, 39–40 restructuring of former VHJs, 168–69 (see also specific firms) and the state bank, 16, 44, 49–50, 53–54, 56–57, 57, 58 state expenditures on, 49, 207n. 49 structure, 16, 34, 36, 42–43, 45–46, 46, 206n. 70 trusts, 36, 45, 206n. 77 (see also TST) Vitkovice, 91, 129 vocational training, 143–44, 146–47, 150, 235n. 42, 237n. 65 Vodochody, 108 Volkswagon, 142, 228n. 67 voucher privatization, 72. See also stock market, Czech; and specific firms of banks, 79 equity distribution, 90–91, 100–101, 221n. 13 first wave, 86, 87, 100–101 individual investment, 87, 217n. 86 and IPCs, 86–88 (see also investment privatization companies) managers’ beliefs concerning, 98, 220–21n. 9 political-economic aims, 72–73, 86 risks worsened by, 65 of TST/SST firms, 138 VPN. See Public Against Violence Vrba, Jan, 71–72, 92, 117, 214n. 54, 219n. 104 Vrchlabí, 48, 137, 138, 154, 232n. 6, 233n. 21

295

vyrobní hospodacsky jednotek (VHJs). See VHJs wages, 70–71 Woodruff, David, 201n. 77 World Bank, 187 Zastávka, 137, 138 Zbozínek, Radomir, 149–50 Zbrojovka Vsetín, 153, 154, 237n. 68 zebrak, 136, 138 Znojmo, 138 ZPS Zlin community relations, 149, 235n. 42 debt/equity ratio, 148, 236n. 63 directorate, 149–50 employee relations, 149–50, 235n. 46 employment statistics, 136, 138, 237n. 65 export statistics, 148, 151, 152, 153, 236n. 58 financial dealings, 150–52, 154–55, 158, 159–60 (see also Pragobanka; Prvni Privatizacni Fund) government negotiations, 157–61, 162–63, 171–72 history, 48, 148–49, 235n. 42 joint ventures (JVs), 151, 236n. 57 network reconstruction, 148–52, 171–72 privatization strategies, 138, 149–50, 151, 235n. 44, 236nn. 56–57, 237n. 72 probing, 151–52 production profile, 136, 141, 151–52, 236n. 60 resources, 150, 152, 236n. 63 and SST, 133, 143, 153–62, 159, 237n. 68 subsidiaries, 149, 151, 235n. 42, 235n. 49, 236nn. 56–57 vocational training, 150, 235n. 42, 237n. 65