M. M. M. M. Dimitrov, Dimitrov, Dimitrov, Dimitrov, S. S. S. S. Estrin, Estrin, Estrin, Estrin, H. H. H. H. Richet Richet Richet Richet 9 S S S Saul aul aul aul E E E Estrin strin strin strin, , , ,M M M Mitko itko itko itko D D D Dimitrov imitrov imitrov imitrov, , , ,X X X Xavier avier avier avier R R R Richet ichet ichet ichet Cross Cross Cross Cross Countries Countries Countries Countries Study: Study: Study: Study: State State State State Enterprises Enterprises Enterprises Enterprises Restructuring Restructuring Restructuring Restructuring in in in in Bulgaria, Bulgaria, Bulgaria, Bulgaria, Romania Romania Romania Romania and and and and Albania Albania Albania Albania 1. 1. 1. 1. Introduction Introduction Introduction Introduction In this part of the book we summarise the findings from a project about the restructuring of state enterprises in Albania, Bulgaria and Romania. The main finding of our study is that the degree of restructuring in state owned firms in the three countries under consideration has been surprisingly modest. This is in sharp contrast to the significant pace of change noted in earlier by studies by, for example, Belka et al (1993) for Poland or Estrin etal (1995) for the Czech Republic, Hungary, Poland and Slovakia. It is also surprising given the length of time since the commencement of serious market oriented reforms. The study suggests that this is in large part because the economic environment in these three countries is much less clearly a market one than in the Vishegrad countries. The final section speculates on additional reasons, including the scale of the external shock in these countries and the less favourable preconditions to reform. Policy recommendations are deduced from the analysis. In the following section, we discuss project methodology and findings, before considering macro-economic preconditions to reform and indicators of progress in reform. The third section is addressed to the issue of restructuring, defining the tasks to be undertaken by firms in the shift from planned to market environment. This framework formed the basis for the common questionnaire applied in all the case studies. In the fourth section, we enquire why progress in restructuring in state owned firms, as indicated by the case studies, has been so much less than in the Vishegrad countries. We also speculate on the reasons for differences between the three countries, before drawing policy conclusions. 2. 2. 2. 2. Methodology Methodology Methodology Methodology and and and and Background Background Background Background 2.1. 2.1. 2.1. 2.1. Main Main Main Main objectives objectives objectives objectives of of of of study study study study The study comprises a parallel analysis of state enterprises restructuring in Bulgaria, Romania and Albania on the basis of unified research methodology applied to each of the countries, identic al range of problems and comparable samples of enterprises.