1945

Reforming public enterprises

It is generally agreed that in most developing countries public enterprises (PEs) have performed poorly, and need to be radically overhauled in order to accelerate economic growth. However, there is less agreement on the nature of the reforms needed. On one view, they should be directed at reducing the role of the State in the economy and freeing the private sector to operate on the basis of incentives and market mechanisms generally. This view puts special emphasis on privatization.

Related Subject(s): International Trade and Finance
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