Influence of privatization model to society in transition

The goal of the paper is to explain the influence of privatization to the transition in Serbia. At the same time, it will be shown that the absence of the results of development of small and medium enterprises influenced the continuous pointing out the results of privatization. The influence of privatization to performance of enterprises will be especially discussed. The process of privatization of the public sector in the countries of developed market economy will be compared with the privatization in the former socialist countries. The specificity of the latter consists, above all, in huge offer of capital for sale in relatively short time. Inevitable consequence is the low price of this capital, which is very interesting for analysis. Specificities of privatization with not only state, but also social property in the economies of the former SFRY will be also discussed. The paradox of enlarging state property in Serbia and Montenegro will be also pointed out. The results of privatization will be discussed, as well as possible modifications of the model (and the law) in the near future