Abstract
This paper examines and compares the privatization programs of China and Russia. The paper first begins with an introduction to privatization. It then presents the programs of China and Russia and focuses on procedures, results, failures and current situations. Finally, the paper discusses how the United States Securities and Exchange Commission encourages and works towards cooperation in the international arena to protect investors and maintain efficient markets.

Table of Contents:
Abstract
Introduction
Privatization
China
Russia
Effects On U.S. & International Investors
Conclusion

From the Paper
"In recent years, as many governments have sought to encourage economic growth and increase productivity, they have privatized some sectors of their economies. Privatization occurs in many sectors of the economy, including telecommunications, aviation, automotive, railroads, construction, power, chemical, and financial services. Privatization is a popular strategy for restructuring economies in both advanced and transitioning countries. In 2005, there were 278 privatization transactions in developing countries (excluding the U.S., Canada & Australia) valued at US$1 million or more. Total proceeds from these transactions were US$52.8 billion.1 Privatization centers on promoting the forces of the free market system. State owned enterprises are transformed into private companies with different ownership and management structures (Zahra & Hansen, 2000, p. 83). Privatization is also an important process in deregulating a centrally controlled economy. Major world organizations, such as the World Bank and the United Nations, emphasize privatizations in granting their aid programs. In former and restructuring socialist countries, the revitalization of the private sector is characterized by parallel growth between a large number of small scale business enterprises and ownership transfer from government owned enterprises from public to private ownership (Han & Pannell, 1999). The retreat of the state from owning and managing business is a key reform for any transitional economy (Green & Tian, 2004, p. 40). Privatization in itself is insufficient to successfully transition to a market economy. However, privatization must occur if a post-Communist country is to transform a planned state owned economy to a market economy (Foo, 2002, p. 233)."

Tags:enterprises, shock, therapy, voucher, system, securities, and, exchange, commisson