By V. V. Ramanadham
First released in 1993. Routledge is an imprint of Taylor & Francis, an informa corporation.
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Additional info for Privatisation: A Global Perspective
11 suggests that pursuit of social goals and national objectives has been a very important factor. Prevention of bankruptcy and of job losses was an important reason in the take-over of problem firms. LIOUKAS Competition PEs under direct ministerial ‘Problem firms %’ Bank subsidiaries % State banks % control % 100 100 100 Source: Replies from 65 PEs to a questionnaire. The research weas conducted in 1986 100 liberalization of markets in general. So it is important to consider the extent of competition faced by public enterprises.
B) Administrative, regulatory and legal constraints The existing administrative limitations, regulatory and legal constraints have caused various problems in the privatization efforts. Protective measures and statutory regulations have to be modified so as to dismantle obstacles to competition and to the transfer of public sector activities to the private sector. This includes changes in provisions defining exclusive rights and public monopolies (for example, in electricity, telephone, bus routes, and so on), adaptation of public accounting to the privatization requirements in order, for example, to allow for state funds from the EEC to be managed by private undertakings, and so on.
Public enterprises have generally figured in public debate as sluggish bureaucracies, inefficient and resistant to change. However, it has also been recognized that some enterprises pursue social and developmental goals for which they are not compensated. After all, many enterprises were created to pursue wider non-commercial objectives. Their deficits are, to an extent, due to the state’s failure to provide compensation for such activities. The tight control exerted by supervising ministries and politicization have been widely recognized as important reasons for their inefficiency.
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