Privatization Of Public Enterprises Research Articles

Privatization of public enterprises in the emerging market: Problems and prospects

State-owned enterprises (SOEs) are known to provide service delivery to people because of their lack of profit motives. However, politicians (elected officials) who engage in corrupt practices often use SOEs as cash cows. Simultaneously, SOEs’ success drives national economic development and aid in the fight against poverty. The aim of this study was to investigate whether privatization of SOEs can turn around the losses they make and lead to viability. This study employed a desktop approach in which reports, financial statements, and various documents on numerous SOEs were reviewed. The time span used for the reviewed documents was 20 years (2002–2022). The findings of this study indicate that many SOEs in South Africa have incurred insurmountable losses due to corruption and poor fiscal management. Thus, privatization of such entities may look noble, yet it is a short-term fix to the problem.

The Egyptian Supreme Constitutional Court on the Abolition of Public Interest Litigation, Decision of 14 January 2023 in the Constitutional Challenge 120/36

Abstract In a decision of 14 January 2023, the Egyptian Supreme Constitutional Court confirmed the constitutionality of Decree-Law 32/2014 abolishing public interest litigation. Public interest litigation in the past was an important political means permitting NGOs to submit the privatization of public enterprises and the allocation of state land to judicial scrutiny. The long-awaited decision conforms to a tendency of limiting judicial control in the interest of economic stability, hereby giving state-lead economic development the priority over citizens’ rights and participation.

Privatization of public enterprises and its implications on economic policy and development

Since 1951, the Central Public Sector Undertakings (CPSUs) have played an important role in India's economic growth. They were created with the goal of boosting the country's economy and ensuring its independence. When the first five CPSUs were established in 1951, they invested just 29 crores, which has now grown to 348 with a total investment of 16.4 trillion in 2018–19. They began to suffer losses and are now a financial burden on our GDP of roughly 0.16 percent (GDP). The new industrial strategy of 1991 marked the beginning of the government's shift away from investment and toward disinvestment. Since then, disinvestment policies have changed, and privatization's influence on the Indian economy has grown. The Indian economy has been greatly impacted by privatisation. Revenues to the government dropped precipitously during Covid, and the primary approach for reviving the economy was privatisation. Some major businesses in the market may become monopolised through excessive privatisation.

POST-PRIVATISATION PROTECTION OF EMPLOYMENT RIGHTS IN TANZANIA

Privatisation of public enterprises in Tanzania, wholly or partially, was propagated on the promise that it was the panacea to all economic ills, which was to include revival of public enterprises, most of which were limping or resurrecting from the tomb of Lazarus into which they had been laid. However, the promised miracles, including increased employment and improved working conditions have not happened. On the contrary, one net effect of privatisation was the reduction in employment, which prompted government intervention through a number of laws and policies to address the plight of employees, particularly securing their employment and creating good working conditions. Subsequently, indigenous employees were given preference in employment wherenecessary, and their positions were secured. Moreover, even where the investor had employed some foreigners, the law made provision that such positions would eventuallybe taken over by indigenous employees. However, these restrictions were said to violate the so called international best labour practices embodied in various ILO Conventions to which Tanzania is a party. In this study, it is argued that the legislations which are said to restrict the employment of foreigners to give more opportunity to Tanzanianswere necessary, despite the international treaties to which Tanzania is a signatory. Tanzania as a sovereign state, should be able to pass legislations which are beneficial to its people, without necessarily hurting the interests of the investors, which include conducive environment for doing their business and getting profits, without regard towho should be employed.

Efe Can Gürcan and Berk Mete, Neoliberalism and the Changing Face of Unionism: The Combined and Uneven Development Class Capacities in Turkey

Reviewed by: Neoliberalism and the Changing Face of Unionism: The Combined and Uneven Development Class Capacities in Turkey by Efe Can Gürcan and Berk Mete H. Deniz Sert Efe Can Gürcan and Berk Mete. Neoliberalism and the Changing Face of Unionism: The Combined and Uneven Development Class Capacities in Turkey. Cham: Palgrave Macmillan, 2017. 164 pp. + xiii. Cloth, $109.99. ISBN: ISBN 978-3319482835. This book aims to explain the actual conditions of Turkey's workforce and their institutional organizations within the context of certain neoliberal political and economic developments. Chapter 1 lays out the main scope of the book that focuses on the peculiarities of Turkey's labor movement's economic and political integration into the neoliberal capitalist accumulation since the 1980s (pp. 2–3). The authors provide a detailed overview of the chapters beginning with the theoretical specifications, periodization of the integration process of Turkey into the world capitalism from a structurally weak position. Next they mention the methodological choices and the empirical ground of this study. They provide a detailed list of semi-structured interviews conducted with the representatives of traditionally combative trade and the social unions in Turkey (pp. 8–9). The authors give a sketch of the collective struggles during neoliberal times both in the Global North and South to show that class as a social category still appeals to scholarly attention. In the last section, they substantiate the prevalence of class-centric focus in Turkey's neoliberalization experience, the prominent working-class firm-level struggles, and popular insurgencies are overviewed. Chapter 2 contains the theoretical backbone of the book. The authors refer to Leon Trotsky's concepts of combined and uneven development for providing an analysis of Turkey's peculiar process of class formation and articulation to the world capitalist accumulation. The concept of combined development aims to explain the synchronized and strongly bounded integration of particular [End Page 278] countries into global capitalism. The unevenness segment of the framework deals with the assumption that the countries' economic path is set against each other and allows privileges for some and impediments for others. The defining feature is to emphasize a peculiar capitalist development wherein backward elements and modern factors coexist. For analyzing the working class within the country's economic performance, the authors use Erik Olin Wright's concepts of working-class and organizational capacities. Within the combined and uneven development processes, the authors argue that small-scale firm-level concentration of the workforce, geographical discrepancies, welfare policies, privatization, subcontracting, ethnic and religious fragmentations within the working class serve as an impediment both for the structural and organizational class capacities. The last section of the chapter is devoted to the detailed review of the period starting from Turkey's nation-state formation until the implementation of the import-substitution economic agenda. The authors argue that the impact of the World Wars and alignment with the United States in international politics influence domestic political-economic outcomes that created an impediment to the working class's organizational and structural capacities. Chapter 3 discusses the end of the import-substitution policies that had to be terminated due to the foreign currency shortage and limitations on Turkey's domestic markets. The transition to trade liberalization and the export-oriented economy triggered initial neoliberal restructuring to become possible with military intervention. There has been an exponential growth of export-oriented industries, and the share of exports in the GDP led to a rise in low-skilled, subcontracted, and non-unionized labor in these sectors. The economic crises in 1994 and 2001 were a watershed for the Turkish economy, and their aftermath resulted in harsh wage reductions and further de-unionization for the workforce. The second part of the third chapter deals with the political and economic impacts of the post-2001 period. The three legal ramifications in the labor law deepened flexibilization, subcontracting and curtailment of the right to organize for the working class. Post-2001 is a period when traditional labor unions took a pro-government stance and saw the burgeoning of new government-affiliated trade unions both in the private and public sectors. The privatization of public enterprises also gained pace and resulted in massive...

Performance Analysis of Nonfinancial State-Owned Enterprises in Bangladesh

This paper aims to analyze the performance of non-financial SOEs and seeks possible remedial for the problems. State-owned enterprises play a vital role in Bangladesh. After the liberation war in 1971, the Bangladesh government had taken extensive measurements to nationalize some enterprises but due to lack to profitability, accountability, poor management, corruption caused these enterprises to fail in providing enough support to our economy. Bangladesh government has initiated the “Privatization of Public Enterprises” in a massive scale but the performance of these SOEs have not been improved. There are 49 non-financial SOEs in Bangladesh. These non-financial SOEs are classified under seven major sectors- industry, utility, transportation and communication, trade, agriculture, construction, and service. Among these seven major sectors, the service and utility sector have the highest contribution to the public exchequer. Most of the enterprises are facing loss (i.e. mainly industrial sector SOEs) and some others have vulnerable performance. The government is providing a huge subsidy, but the overall performance has not been improved. These SOEs need a reformation in cost minimization, management system, corruption prevention, and most importantly a proper effective policy formulation.

Privatisation of Public Enterprises in Nigeria: Challenges and Prospects on Economic Development

Abstract Privatisation plays key roles in restructuring economic and social attributes of developing countries. The performance of any economy in terms of growth rate and per capita income have always been based on and associated with active involvement and participation of the private sector. It is apt to note that public enterprises in Nigeria have failed to demonstrate strong desire and ability to promote economic growth perhaps due to ineptitude of the managers and inadequate clear-cut operational guidelines establishing such enterprises. This effort attempts to evaluate the importance and implications of privatisation of government’s companies with respect to economic development. The analytical tool adopted in this paper is descriptive that focussed on review and evaluation of privatisation exercise in Nigeria. Findings indicate that corruption, indiscipline, suspicion, transparency and national sovereignty among others were the major challenges of privatisation in Nigeria. Aligning with the new order of moving poor resource utilization to more innovative and creative initiatives orchestrated the call for privatisation in Nigeria in addition to productivity improvement, increase in revenue, reduction in budget deficits as well as elimination of wastes and improvement of efficiency. The paper concludes by advocating for appropriate reform policies of all inclusiveness and transparency that offer full information about the company slated for privatisation and the attributes of core investors to quell misinformed ideas and suspicion.

SLOWED SERBIAN DEVELOPMENT IN THE EARLY 19TH CENTURY UNTIL WORLD WAR II

Permanently economic backwardness of Serbia (as, after all, and most of the Balkan countries) compared to the Western and Central Europe always makes actual causes of this trend. Of course, there is no simple and straightforward answer. The prevailing opinion is that the countries of South Eastern Europe, because of the specificity of its historical development, primarily in the age of the first industrial revolution lost pace compared to the rest of the continent and found themselves at a disadvantage, which can not fail to compensate. Such thinking usually implies the necessity to southeast Europe, or Balkans, pass the path of development identical western European way. However, whether it the only model that leads to creation of economically prosperous and socially stable society or priority should be given to understanding the local specificity and optimally use them in order to build a welfare state? Serbia can now be classified as countries that have not successfully passed the transition period from a socialist to neoliberal capitalist system. The reasons for this here we can not discuss in detail, but we will mention the most difficult challenges facing the country has faced since the collapse of socialist Yugoslavia until today. These are, first, the Yugoslav wars, including them in the armed conflict with the NATO alliance in 1999, economic sanctions and international isolation in the last decade of the last century, the unsuccessful privatization of public enterprises in the years of the autocratic regime of Slobodan Milosevic after him and, as a consequence, worsening the situation of workers who will be a key generator of losing confidence in democratic government and return to the main political scene those who in the 1990s were the protagonists of the Yugoslav wars, and who were the main culprits for the degradation of the international reputation of the Serbian nation is unprecedented in the history of Serbia. Today Serbia is far closer to autocracy rather than democracy, exposed internal political violence, with non-free state institutions, unclear status of Kosovo and Metohija and undefined national borders. Omnipotent Government is trying to attract foreign investors by promoting its own citizens as cheap labor for which workers' rights are not applicable in the present developed societies. Essentially an important answer to the question why Serbia today so gloomy and hopeless.We will try to clarify the situation somewhat emphasis on the social history of modern Serbia.

Privatisation and Performance of Electricity Distribution Companies in Nigeria

Privatisation of public enterprises is a complex phenomenon as the process is affected by both endogenous and exogenous factors. Advocates of privatisation of public enterprises in Developing countries tend to have a linear perspective that it will result in efficiency and improved performance of these firms. However, several studies have shown that this is not always the outcome. This paper examined the privatisation and performance of Electricity Distribution Companies in Nigeria and concluded that the outcome was determined more by the form and nature of the government than by the process of privatisation. Therefore, there is a need for further research to identify factors that could enhance or inhibit the success of the privatisation process in Developing countries.

Performances of the Least Developed Countries under Neo-liberal Regimes: Implications for the implementation of Agenda 2030 for Sustainable Development

<p><em>The Least Developed Countries (LDCs) have implemented neoliberal policies such as trade liberalization, privatization of public enterprises, and currency devaluation with the expectation to promote their economic growth and development by capturing the gains from international trade through a more efficient allocation of resources and increased private investment. Twenty one countries (constituting 44%) have been designated LDCs since 1971, the introduction of the category for the first time by the United Nations (UN). Development experiences of the LDCs indicate that neoliberal policies are not adequately addressing their development challenges. The LDCs are still locked into a low equilibrium trap characterized by fragile economic growths, distorted structural transformation, low domestic resource, high dependence on external financing , high dependence on primary commodity exports, high external debt burden and debt services and low human development. The LDCs must thus shift to a developmental state approach to strategically integrate into the world economy and to build their productive capacities and to enhance their structural transformation which could lead the countries along the path of sustained economic growth to meet the Sustainable Development Goals (SDGs) by 2030.</em><em> </em></p><p><em>The implications for the implementation of Agenda 2030 for sustainable development are that: </em></p><p><em>(i) The LDCs have to extensively tap their domestic savings potentials and investments to reach 25% or more of their Gross Domestic Product(GDP) to sustain 7% -8% growth rates per annum that will have a great impact on poverty reduction in line with the sustainable development goal 1 (SDG1) . (ii) The LDCs have to select a few SDGs which are of high national priorities and synchronize them with their respective national development plans and determine the financing needs for the implementation of the selected SDGs. (iii) cancellation of external debt of the LDCs by the creditors in order to release resources needed for their investments to achieve the SDGs (iv) replacement of foreign aid by market access for the LDCs products to increase their foreign exchange earnings needed for building their productive capacities. (v) Maintaining peace and stability and resolving conflicts to release resources needed for their productive investment.<br /></em></p>

Austerity and labour market deregulation: High risks and weak justifications

16 | International Union Rights | 24/1 FOCUS | WORLD BANK AND IMF Austerity and labour market deregulation: High risks and weak justifications Financial crises can affect labour rights in a number of ways. Obviously, financial crises may reduce economic growth and employment and impair the right to work. However, in addition, governments have often undertaken reform measures that directly — such as reduction in wages and employment in the public sector aimed at reducing public expenditure or labour market deregulation in the private sector purportedly to increase competiveness — or indirectly — by creating economic conditions which increase pressure on workers, reducing wages or threatening employment, for example through privatisation of public enterprises, trade liberalisation or cutting domestic subsidies — affect labour rights. Labour-related austerity policies have been openly pushed by a number of official key creditors, including the World Bank and the International Monetary Fund (IMF), together, more recently, with the European Commission and the European Central Bank — the so-called Troika. Especially since the late 1980s, labour-related conditionality has featured prominently in IMF financial assistance programmes. Indeed, around 50 percent of all lending programmes have involved one or more labour-related conditions over the period from 1994 to 2007. Since then, the number of IMF programmes with labour conditionalities appears to have fallen, but still, between 25 to 40 percent of IMF programmes adopted until 2014 contained labour-related conditions relating to the public or the private sector1. International financial institutions have promoted labour law deregulation not only through formal conditionality to financial assistance arrangements. IMF has also made use of other instruments to advocate for deregulatory labour reforms, such as its Article IV consultations in the context of its bilateral macroeconomic surveillance2. These involve a certain amount of pressure and may also affect a country’s capacity to obtain financing elsewhere, given that potential or actual investors and bilateral lenders often have recourse to these reports3. Labour law issues in economic adjustment programmes While IMF has occasionally supported moderate improvements in labour standards4, its prevalent stance regarding labour law has been a deregulatory one. Close to one third of the available letters of intent addressed by governments to IMF between 1998 and 2005 contained commitments to be flexible with labour market regulation5. Early cases can be tracked to the 1950s, such as when IMF required Argentina to control wage increases. Adjustment measures implemented during the 1980s in the context of the Mexican debt crisis entailed a considerable reduction in both the number of public employees and their salaries, among others. The relevant reforms ranged from minor modifications to comprehensive reform packages with far-reaching amendments to both collective and individual labour laws. For example, during the 1990s, Côte d’Ivoire undertook reforms in the context of an IMF/World Bank-supported economic adjustment programme, which included the deregulation of the rules concerning temporary employment, dismissal and overtime, and involved the decentralisation of the collective bargaining system. Similarly, the structural adjustment programme carried out in Argentina during the 1990s entailed individual labour law reforms, involving, for instance, extending the duration of the probation period and collective labour law reforms, which granted firm-level agreements priority over sectoral agreements. In recent years, austerity-driven labour law reforms have remained a widespread trend. No fewer than 89 countries implemented such reforms Austerity-driven labour law reforms have remained a widespread trend. As a result, the level of protection of labour law has been substantially reduced Juan Pablo Bohoslavsky is the United Nations Human Rights Council-appointed Independent Expert on foreign debt and human rights Austerity-related labour law reforms between 2010 and 20157 9 18 40 34 East Asia and Pacific Highincome countries Number of austerity-related labour law reforms Number of cuts in or caps on public sector wages 3 7 6 8 South Asia Middle East/ North Africa 11 14 12 17 Latin America/ Caribbean Eastern Europe/ Central Asia 8 32 SubSaharan Africa FOCUS | WORLD BANK AND IMF 17 24/1 | International Union Rights | between 2010 and 2015 and more than half (49) of them were implemented in developing countries. In addition, 130 countries had reportedly implemented or were contemplating cuts in or caps on publicsector salaries, more than two...

Some Macroeconomic Implications of Privatisation

Privatization has been a key element of structural reform in many developing and transition economies during the last decade. Governments undertaking privatization have pursued a variety of objectives: increasing economic efficiency, enhancing competition etc. In addition, liquidity-constrained governments facing fiscal pressures have sometimes privatized with a view to financing fiscal deficits with the proceeds.There exists a large literature on the microeconomic aspects of privatization that has emphasized the potential efficiency gains. However, there has been less work done on the fiscal and macroeconomic impact of privatization. This paper reviews fiscal and macroeconomic issues in the privatization of public enterprises with a special focus on India. The fiscal effect arising out of use of privatization proceeds is a direct effect. However, there exists indirect implication of privatization such as, impact on employment, impact of effectiveness of monetary policy transmission etc. This paper aims to study the literature on these macroeconomic implications of privatization.This paper is divided into four sections. The first section comprises of the theoretical arguments, issues and literature review pertaining to the fiscal impact of privatization. This is followed by a comparative assessment of actual privatization proceeds in Indian case versus the baseline scenario offered by Kelkar Task Force. The second section is about the monetary policy transmission and whether the same gets affected by the factor of ownership in Indian banks. The third section captures the labour market effects of privatization with a special focus on India. The last section provides scope for future research and the conclusion.

The Legal Status of State-Owned Share Companies in Ethiopia

Privatization of public enterprises or state-owned business entities has been greatly acclaimed as one of free market ideas and a sort of democratic rule on equitable distribution of wealth. However, ill-designed modes of privatization, particularly, Article 5 of the Proclamation No.146/1998 transfers the public enterprises to share companies in Ethiopia, goes out of the purpose and creates legal and practical problems on the operation of share companies. The crux of this paper focuses on the formation and operation of state-owned share companies which are evolved by the process of privatization in Ethiopia. It advocates that the new advent of formation of company is out of the Commercial Code of the State and legal jurisprudence ever experienced. Hence, the status of such companies is carefully discussed from the legal point of view. These companies situate in different place than company law perspective, the purpose of privatization sought in these companies and the economic policy which the country follows. To this effect, the legal doctrines of the area, the practice of privatization from Privatization and Public Enterprises Supervising Agency (PPESA) are explored.

Privatización y reestructuración de la industria de equipos ferroviarios en México (1993-2012): el caso de Concarril-Bombardier

This work consists of two parts. At first, some aspects of privatization of railway equipment industry that have been overlooked by discourseand neoliberal politics are analyzed. Against the dominant conception, that pointing to the financial deterioration, productive inefficiency and low competitiveness in the market as the main causes of the privatization of public enterprises in Mexico, in this article, the author finds that the purchase of the state-owned railway equipment industry by foreign private capital was strongly motivated by the achievements in technological development of public enterprises and its strategic position in the market. Privatization, in this case, it was not just the rescue of an industry in crisis, actually meant the transfer to private capitalof the profitable public assets and the control of the highly lucrative market segments. In the second part of this article the restructuring of this industry under the guidelines set by the entry of multinational companies are analyzed. It is observed that after a period of partial deindustrialization, currently the organization of production and work in this industry rests on mechanisms that allow large companies to transfer with relative ease the costs of the crisis on the working class and the set of suppliers and highly specialized local subcontractors, who survive in the shadow of a latent industrialization based on the ability of reconfiguration of functions and relocation of assets that today have foreign enterprises in this industry.

Neoliberal Reforms in an Emerging Democracy: The Case of the Privatization of Public Enterprises in Nigeria, 1999–2014

This article critically appraises the political, social, and economic processes of privatization in Nigeria since 1999. A qualitative analysis of the privatization process and outcomes is carried out within the broader state versus market debate in political economy of reforms. It will be revealed that privatization has not produced its purported outcomes of efficiency/consumer satisfaction and social equity, and the privatization process has not been thoroughly transparent and accountable. In explaining the outcomes and process, the article highlights the problems posed for reforms by the weak democratic infrastructure and institutional framework for regulation; the logic of neoliberal ideology, which constrains the space of action for developing countries or forces these countries to act along specific trajectories instead of others in order to be seen as embracing globalization; and above all, the political constraints relating to the opportunistic and self‐interested attitude of political and economic elites who are determined to continue to benefit from privatization as they did during the pre‐reform era of public enterprises.

The Proceduralisation of Australian Corporate Law

The central hypothesis of the paper is that bit by bit and largely unnoticed Australian corporate law has undergone a profound change. Australian corporate law, and particularly the Corporations Act 2001 (Cth), has moved from an essentially private law, substantive rights model, to one that seeks to regulate the company and those involved in its affairs through the prescription of processes and procedures by which corporate decisions may be made and by which the procedural correctness of those decisions is assured. The paper will also seek to demonstrate, by an analysis of the changes in the patterns of corporate case law, that this proceduralising trend has effected a fundamental change in the nature of corporate law and the role of the courts and may now claim to be a, if not, the principal characteristic of Australian corporate law. The paper concludes by highlighting some of the wider implications of this trend and the risk it poses to the intellectual heart of corporate law.The modern registered comp...

PRIVATIZATION OF PUBLIC ENTERPRISES IN NIGERIA: IMPACT ON EMPLOYEES’ PERFORMANCE AND MANAGERIAL IMPLICATIONS

Privatization is the transfer of assets, ownership and control of state owned enterprises from the public sector to private sector. This research was conducted to examine the impact of privatization on employees’ performance and managerial implications as a result of privatization of public enterprises. This current study reveals that post privatization can lead to massive job cuts, job insecurity especially among junior workers. Privatization increase job satisfaction, training and development opportunities, increase in salary and favourable working conditions which improves employees’ productivity and performance. This present research was conducted using respondents from Dangote Cement PLC, a privatized company previously known as Benue Cement Company in Nigeria and the findings of this research matched with previous researches on the impact of privatization in developed and developing countries such as United Kingdom, Japan, Nigeria, India and Ghana.

Privatization of Public Enterprise : A Tool for Nigerian Economic Development

The need for privatization of public enterprises in Nigeria, as it had been in most countries that adopted the public sector reform technique, was geared towards making the enterprises more efficient, effective and productive, such organizations could be longer be maintained by the government because they had become a financial burden to the public budget. Thus, privatization became the panacea for alleviating the government problems of owning and managing public enterprises, and at the same time, ensuring that such enterprises, when transferred to private ownership, would significantly improve economic development of the nation.This study examined privatization of public enterprises as a tool for economic development. The foremost utility company in charge of electricity, distribution in Lagos State Eko Electricity Distribution Company was used as a case study. The study used both Primary and Secondary source of data. The population study of 220, using WALPO sampling size of 30% which is 66. The questionnaire was based on the sample size. 60 valid while 6 invalid after the retrieved of the questionnaire. Two hypotheses formulated were tested using SPSS (ANOVA). The findings, of the study revealed that there is significant improvement in the productivity of the privatized enterprises. However, it was discovered that privatization is necessary to make public enterprises financially disciplined. The study recommend among others that the policy makers review the ongoing privatization programmed that privatized enterprise can perform better than what we are experiencing.

Privatisation of Public Enterprises in Nigeria : A Thematic Exposition

Privatization has been the most controversial policy dominating the political agenda of many countries around the world. For instance, in the 1980s privatization were the policy choice and preferences as well as the new wave of conservative market reforms beginning in the west with the Thatcher government in the United Kingdom in 1979 and the Regan government in the United States the following year. In Africa it has remained a highly controversial, a subject of debate and politically risky. After her independence ,Nigeria, engaged in the expansion of the public sector in the first, second and third development plans following the keynesian paradigm .The present drive towards privatizations is the inability of the Keynesian paradigm to deal decisively with the worldwide economic crises and the various economic system adopted in Nigeria .Privatization of public enterprises in Nigeria is believed will bring about an end to Inefficiency, Balance of payment deficit, Low performance, Indiscipline, mismanagement of finance, attract Foreign and local Investment which will integrate the country in the globalization process and bring about competitive system, quality, and low price, better choice and satisfaction of goods and services. This paper seeks to discuss the major theoretical under pining of the concept of privatization, its major ideas and proponents in a thematic form. The paper concludes by positing that from literatures on privatization three things are clear. First, for privatization to take place there must be in existence public enterprises, which need to convert into private enterprises. Secondly, there is the reasoning that private ownership or control or management would be better than public ownership. Finally, privatization is premised on the fact that there are problems with public ownership of enterprises and privatization is part and parcel of a reform agenda to turn around these enterprises so that they can deliver goods and services more efficiently and effectively. As we shall show later, this kind of reasoning is ideologically loaded and cannot be substantiated by the existential reality of Nigeria.

Nigerian Economy and Privatization of Public Enterprises

Public Enterprises are business organizations set up and financed by the government to provide essential services to the members of the public. They may be set up by the Federal, State, or Local governments. The public enterprises are controlled by the government: Though the ministers and commissioners, the government appoints members of the board of directors, who turn employ empty managers to run the business. Unlike most businesses which have the primary motive of making profit, public enterprises are set up to provide essential services to the public at affordable prices. In recent times, government has undertaken privatization of public enterprises perhaps because of the operational ineffectiveness that characterized public enterprises. The central question that beg for an answer is has privatization brought improvement in the Nigerian economy. The focus of this research is to attempt to answer such critical question with a view to proferming useful recommendations as way forward. Historical descriptive approach was adopted as method of data collection. The research findings reveals a contradiction of government action at privatization