The IMF (Privatization in Transition Countries: Lessons of the First Decade, 1999) considers that the method of privatization does seem to matter a great deal in explaining efficiency improvements of the performance of privatized State-owned Enterprises. Outsider dominated firms show better improvements than insider-dominated firms.
Furthermore, "in some cases the result could be development of monopoly interests that will prevent future evolution of a competitive, ha
rd budget environment.”
The result is least efficient firms owned by the politically favored for whom the privatization program had been designed, leading, as the case of Russia and Ukraine, to removing assets from the state hands in favor of a minority controlling the state and the economy.