The term paper examined the experiences of public enterprises in Tanzania.It also assessed the comparative analysis of public enterprises in USA and Benin Republic.The paper concluded by enumerating the differences between the public enterprises of the two countries.
Table of Contents
1. THE EXPERIENCES OF TANZANIA IN THE MANAGEMENT OF PUBLIC ENTERPRISES.
2. COMPARATIVE ANALYSIS OF BENIN REPUBLIC AND U.S.A IN THE MANAGEMENT OF ENTERRISES.
Research Objectives and Themes
This paper aims to examine the management strategies of public enterprises in Tanzania while providing a comparative analysis between the public sector management approaches in the Republic of Benin and the United States of America, highlighting the diverse challenges and reform mechanisms employed by these nations.
- Historical development and growth of parastatals in Tanzania.
- Privatization programs and structural reforms in the Tanzanian public sector.
- Comparative governance frameworks for public enterprises in Benin and the USA.
- Impact of political involvement and economic strategy on public enterprise performance.
Excerpt from the book
MANAGEMENT OF PUBLIC ENRERPRISES IN TANZANIA
Important feature of the public sector in Tanzania is that of public enterprises (parastatals). In the drive for a socialist economy, the country developed a very large parastatal sector. In 1966 there were about forty-three parastatals, primarily in the electricity and mining sectors. By 1988 there were 410 parastatals as a result of the nationalizations of the late 1960s and early 1970s and the basic industrial strategy, which established a number of industrial parastatals. About 70 percent of these are commercial parastatals, which until recentrly played a dominant, often monopolistic, role in many key sectors. In the early 1990s manufacturing parastatals accounted for about 60 percent of total value added in the sector, and they had monopolies in several major segments of the industrial sector – beer, cigarettes, steel, and electric cables. The same was true in the services sector, including the banking industry and the hotel sector, where the state enjoys a dominant position. The parastatal sector accounts for the estimated 25 percent of total wage employment and about 20 percent of GDP. The situation has changed significantly in the 1990s after the launching of a parastatals privatization program and significant new investments by both foreign and local private investors.(Zitto,2009)
The financial performances of the parastatals over the years was no the whole very poor. According to the government auditor of parastatals was about 8 percent of GPD in 1989. By then many parastatals could barely cover salaries. In 1991 only forty-three of 220 commercial parastatals surveyed were able to generate adequate revenue to service debts fully. The chronic loss makers survived by accumulating debts with other parastatal or the government and accumulating arrears payments in such areas as pension fund contributions and taxes. The combined value of these implicit subsidies to parastatals equaled nearly 10 percent of GDP by the time the privatization program was launched in earnest about 1994.
Summary of Chapters
1. THE EXPERIENCES OF TANZANIA IN THE MANAGEMENT OF PUBLIC ENTERPRISES.: This chapter details the historical evolution of parastatals in Tanzania, their economic impact, and the subsequent move toward large-scale privatization and sector reform.
2. COMPARATIVE ANALYSIS OF BENIN REPUBLIC AND U.S.A IN THE MANAGEMENT OF ENTERRISES.: This section provides a comparative study of public enterprise management, contrasting the extensive state involvement in Benin with the more selective and privatized approach of the United States.
Keywords
Public Enterprises, Parastatals, Privatization, Tanzania, Benin Republic, USA, Economic Management, Divestiture, Sector Reform, Public Sector, Government Ownership, Infrastructure, Industrial Strategy, Performance Contracts, Commercialization
Frequently Asked Questions
What is the primary focus of this paper?
This paper examines the management of public enterprises in Tanzania and provides a comparative analysis of the approaches taken by the Republic of Benin and the United States of America.
What are the central themes covered in the study?
The central themes include the historical expansion of the public sector, the financial challenges faced by state-owned enterprises, and the subsequent implementation of privatization and reform policies.
What is the main research objective?
The objective is to assess how different countries manage their public enterprises and to identify the differences and structural changes involved in their respective management and reform programs.
Which methodology is utilized in this study?
The paper utilizes a descriptive and analytical review of historical government data, national reform commission reports, and comparative policy analysis between the three mentioned nations.
What does the main body address regarding Tanzania?
The main body focuses on the rise of the parastatal sector under socialist economic policies, the poor financial performance of these entities, and the government's subsequent threefold plan for reform and divestiture.
Which keywords characterize this research?
Key terms include Public Enterprises, Privatization, Parastatals, Divestiture, Sector Reform, and Economic Management.
How does the Republic of Benin differ from the USA in managing enterprises?
Benin involved the state in almost all economic sectors including construction and manufacturing, whereas the USA focused on limited state involvement, often privatizing specific services like waste management or airports while keeping basic industries private.
What role did the Presidential Parastatals Sector Reform Commission (PSRC) play?
The PSRC was established in 1992 to oversee the divestiture and coordination of reforms for Tanzania's parastatals, recording significant progress in selling or liquidating inefficient entities.
Why did Tanzanian parastatals struggle financially?
Many parastatals struggled due to poor management, lack of feasibility studies, and reliance on implicit government subsidies, eventually accumulating significant debts and failing to cover operating costs.
What was the outcome of the privatization process in Tanzania?
The privatization process led to the liquidation and sale of hundreds of parastatals, shifting the focus toward modern, private commercial operations in key infrastructure and utility sectors.
- Quote paper
- Adeola Ajayi (Author), 2010, Tanzania Public Enterprises and Comparative Analysis of Benin and USA Public Enterprises, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/197844
