These considerations suggest why SOEs are usually assigned special rights and responsibilities, and they help explain observed regularities in the distribution of SOEs across countries and sectors. Zeckhauser and Horn apply principal-agent theory to identify the key factors underlying the performance of state-owned enterprises. Author : Michael I. In most of the key strategic mandates for economic policies. Ahmad, F. Privatization : A View at infrastructure of the country.
Privatization has Developing Countries, Degree Thesis, International shown great outcomes in the development of Business, Arcada sectors like banking, insurance, telecom, power, 2. Al-Zuhair, M. However, the lobbying in Role of Country Characteristics on Defining domestic circuits was enfeebled by the surprising Corporate Governance Standards, Ann Arbor: reversal of the Indian economy in present time.
ProQuest Indian economy registered an average growth of 3. Filipovic, A. Impact of Privatization on 8. Gouri, G. Srinivasan, T. Goyal, S. Star, P. Ullman, A. Guriev, S. Young, R. On Privatization- Competitive Petersburg, January, Jain, R. Otherwise there will be unemployment will be created on a giagantic scale. The government secors should instill more descipline in the offices.
Private sectors are now having a large level playing ground and foreign capital inflow is not restricted. Hence it is unwise and politically a game play by the government to hand over the public sectors to private.
Public sector growths are actually blocked by the state. Thanks a lot for evoking knowledge in the internet it helps us great nowadays school going pupils to in search of note.
Thanks a lot for evoking knowledge in the internet it helps us nowadays school going pupils to go in search of note. Your email address will not be published. What are the pros and cons of privatization? Advantages of Privatization The arguments or benefits of privatization maybe be as: 1. Financial Resources The main advantage of privatization is to generate financial resources for the government to generate resources disinvestment of public sector enterprises.
Optimum Utilisation of Resources It has been observed that the public sector has failed in the optimal use of national resources. Fostering Competition Most of the public enterprises enjoy the status of monopoly. Reduce Fiscal Burden Privatization reduces the fiscal burden of the state by relieving it of the losses of the public enterprise and reducing the size of the bureaucracy.
Economic Democracy Privatization helps to control government Monopoly. Better Industrial Relations Privatization may increase the number of workers and the common man who are shareholders. Reduction in Political Interferences The process of privatization reduces political interferences in the public sector enterprises by giving more representation to the private sector in the management of Public Enterprises.
Reduction in Bureaucracy Public Enterprises become a synonymous bureaucracy. More Productivity The private sector can improve productivity by maintaining efficiency in its operations. Economical The process of privatization maintains the economy in the operations, whereas the operations of public Enterprises are costly. Individual Motivation The success of the private sector resides in the profit motive. Disadvantages of Privatization Following are the limitations of privatization: 1.
Problem of Price The government usually want to sell the least profitable enterprises, those that the private sector is not willing to buy at a price acceptable to the government.
Opposition from Employees Disinvestment tends to arise political opposition from employees who may lose their jobs, from politicians who fear short-term unemployment consequence of liquidation of cost reduction by private owners, from bureaucrats who stand to lose patronage, and from those sections of the public who fear that national assets are being concerned by foreigners, the rich or a particular ethnic group. Problem of Finance In the developing countries under the developed capital market sometimes makes it difficult for the government to float shares and for individual buyers to finance the large purchase.
Bank privatisation started under the Temporal government Jan. There exist a special group for bank privatisation in the Ministry of Finance. Last large bank to be privatised is Komercni Banka 4 Prior to and during the large-scale privatisation, the state did not restructure enterprises in any sense other than divide enterprises into several parts. Charap J.
Recently numerous companies, Often companies which have not been divided and which were partially privatised as a whole, are indebted and facing bankruptcy and have to be restructured. To address the issue of failing companies, the government implemented a revitalisation program for large industrial enterprises. Based on international public tender, the agency is managed by international consortium.
The consortium recently works on restructuring of 8 problematic Czech industrial companies, selected by special governmental commission out of relatively long list of companies.
The agency has got mandate to purchase the classified loans of these enterprises from Czech commercial banks, to manage, restructure or capitalise their outstanding debts and to own and control the company. The ultimate aim is financial restructuring and subsequently privatisation. The companies are in the sector of railways5, postal services, gas import and transit, airport administration and air traffic control, finances, mass media, healthcare6 etc.
Their transformation or privatisation is subject to further governmental decisions. Social Democrats who came into power mid of are in general in favour of privatisation, as they need means for financing of their social programmes. The pace and extension of privatisation of residual state property is however relatively slow and privatisation of the majority of strategic companies is still in the stage of preparation. Later a strategic partner can be found, however most probably only for the freight transport.
According to the Law on Railway which is in preparation, Ceske drahy should be transformed into a joint stock company but not before the year Contrary to railways where only a few regional rails have been privatised, in the Czech Republic, bus transport has been fully privatised. Service providers are subsidised through local budget or government budget. In big cities, public transport is provided by a company owned and established by municipality.
Recently bus transport creates competition to railways and curbs the rise of railway fares. Governments are privatising these industries or abolishing the granted exclusive rights to the private enterprises within a certain territory. Privatisation of network industries is necessarily accompanied by changes in the organisation of the energy sector along to horizontal as well as vertical lines.
Liberalisation and globalisation are causing deep changes in utility industries such as power utilities. In the Czech Republic energy sector liberalisation and privatisation is a key issue as the share of energy-intensive sectors in the economy is relatively high. In , the share of energy sector on GDP was 5.
Privatisation of energy companies is especially complicated as it is accompanied not only by reform of legislation, creation of regulatory agency but also by restructuring of companies. This is a difficult task in developed market economies and even more difficult in the transition economy. Network industries are together with rents the sectors, which is regulated in the Czech Republic.
As mentioned above, the privatisation of energy sector is accompanied by liberalisation, therefore changes in legislation should go hand in hand or better ahead the privatisation.
There are several governmental bodies and other players involved into the privatisation and regulation of energy companies that have different motivation and opinion as for the way and method of privatisation.
The property rights over the energy companies are executed by National Property Fund. Originally, in energy distribution companies, co-operation involved also municipalities, which were shareholders of the distribution companies, but the municipalities sold their shares during last years to foreign investors who became important players in the privatisation. MIT proposes prices to MF, which is the only authority entitled to issue price edicts both wholesale price from CEZ to distribution companies as well as end-user prices.
Privatisation decisions are prepared by the Ministry of Finance in co-operation with responsible the Ministry of Industry and Trade. An inter-ministerial committee Ministry of Finance, Ministry of Industry and Trade, FNM decides about the results of the public tender relating to the selection of consulting firm which should prepare and co-ordinate sales of state holdings.
The Committee negotiates the conditions of the contract in co-operation with the consulting firm. Finally the privatisation proposal has to be approved by the Government. National Property Fund executes this decision. In the past utility industries have been characterised by vertical integration. As a consequence of deregulation, and during the transition to a competition energy companies vertically desintegrate and adopt more horizontal focus while specialising in particular parts of the supply chain, i.
Besides specialisation unbundling allows for transparency and identification where the subsidies go. The company has been both vertically as well horizontally disintegrated. In the government split the state energy monopoly into production and transfer company CEZ and 8 regional distribution companies. However during these municipality shares of the distribution companies have been spontaneously privatised. Municipalities sold their stakes or voting rights to foreign investor and state lost majority in distribution companies.
Foreign investors invaded energy distribution companies as it shown by Table 3.
0コメント