Foreign Direct Investment in the Slovak Republic (2): A Focus on Institutions and Policies in the Period 1993–1996
Foreign Direct Investment in the Slovak Republic (2): A Focus on Institutions and Policies in the Period 1993–1996

Summary/Abstract: Unfortunately Slovak research on foreign direct investment (FDI) does not al-low us to list here many ideas for policy makers. The existing ones refer to priva-tisation, restructuring and FDI promotion. Comments on privatisation are articu-lated in two ways. First way looks on the role of foreign investors in privatisation. Second questions whether it was necessary to use direct sales to ma-nagers and workers when, sometimes, they will play a role of intermediate owner selling companies to foreigners later. Opposition-close economists stress necessity to open privatisation more to foreign investors, include public utilities into privatisa-tion plans and liberalise economy. Introduction of the Act on Strategic Enter-prises in 1995 (Act No. 192/1995 Coll.), has brought critical comments on this issue. In our „policy section“ we inform more about the fact that majority share of direct sales to domestic entrepreneurs changed opportunities for foreign compa-nies to buy state companies. This is supported by statistical data figures. In most of direct sales – 366 out of 371 – as new owners were domestic citizens (Vokoun, 1996). For some aspects of privatisation and corporate gover-nance, not focused particularly on FDI, see our studies, e.g., Brzica, (1996a, 1996b, 1996c, 1998). Foreign capital, in each of its forms, can have important stabilisation effect. Whereas the total foreign capital coming to Slovakia represents sufficiently great volume, this is not so for FDI where Slovakia is far behind its neighbouring coun-tries. In this area only general statements can be found arguing that higher FDI inflow would improve macro-economic characteristics of the economy.

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