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The Impact of Environmental Liabilities on Privatization in Central and Eastern Europe: A Case Study of Poland

The Central and Eastern Europe (CEE) countries are breaking up their centrally planned economies at a record pace by selling formerly state-owned industrial enterprises to private sector investors. Privatization is expected to create more profit-oriented and efficient industries, a predicate for sustained long term economic growth. This transformation from public to private ownership presents tremendous challenges to these new democracies as they struggle to create market economies and democtratic institutions.