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    TRANSITIONAL ECONOMY COUNTRIES SHOULD NOT TAKE EXTREME INTEREST IN PRIVATIZATION

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    MOSCOW, April 8, 2004. (RIA Novosti) - American economist Milton Friedman, the 1976 Nobel Prize Laureate in Economics, recommends the countries with transitional economies not to imitate the United States. He spoke about it in his video address to the participants in the international conference - "The Liberal Program for a New Century: A Global View." There is a tendency to offer the countries, which have entered the way of changes to follow the practice of the states which have achieved successes in the sphere of the economy, to imitate the United States, Great Britain and other industrially developed countries. But I am sure that this is a serious mistake, Milton Friedman said.

    He believes that the fall of the Berlin Wall fifteen years ago has completed the natural experiment between a collectivist society and a society of free market relations. The results of this experiment are final and irrevocable. However, it has faced us with a new real problem: in what direction should we move further? Milton Friedman said.

    The scientist believes that privatization is a too simple reply to this question. The notion of privatization should be extended by at least two other points: guarantee of the legal frames for private property and guarantee of its reasonably stable monetary-credit policy. But there are a lot of other aspects that worsen the picture; therefore, the transitional process is not at all a quick one. This is a very slow process, Milton Friedman said.

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