Final Report Summary - PRIVMORT (The Impact of Privatization on the Mortality Crisis in Eastern Europe)
The method of isolating the effect of privatisation by closely matching the settlements prior to collecting the data is a novel approach in the study of distal determinants of health. We deployed propensity score matching on the baseline covariates that are most important to health outcomes. A systematic literature review of the causes of privatisation shows that the primary determinants of privatisation were political, rather than underlying economic weakness or social conditions. The political choice of the speed of privatisation was made at the level of enterprises or local and regional authorities, thus it can be claimed that it was likely to be orthogonal to mortality outcomes.
Clearly there are multiple factors that contribute to excess mortality in Russia, acting at different points along several causal pathways, with alcohol playing a key role in several, including that related to speed of privatization. Another possible component of several causal pathways involves social protection. Elevated mortality could be related to variations in the provision of social benefits at settlement level. However, local expenditures are strongly dependent on the health of city-forming enterprises. It is essential to recognize that the health effects of the transition were complex and defy mono-causal explanation. We do not claim that mass privatisation was the only cause of elevated mortality levels. In fact, it would be remarkable if one single policy or factor explained all the variation in the post-communist mortality crisis. Nevertheless, we believe the findings provide strong evidence for the hypothesis that rapid privatisation contributed to elevated levels of working age male mortality. Fast privatisation was consistently positive and statistically significant for men but was not usually significant for women. Robustness checks did not significantly change the magnitude or the direction of the covariates of mortality.