The term paper examined the experiences of Ghana in the management of public enterprises and it assessed the comparative analysis of Benin and USA public enterprises.
Table of Contents
1. Management of Public Enterprises in Ghana
2. Public Enterprise Restructuring and Privatization in Ghana
3. Comparative Analysis of the Experiences of Benin Republic and United State America in the Management of Public Enterprises
Objectives and Key Themes
This paper examines the evolution, management, and restructuring of public enterprises in Ghana, while providing a comparative study of the privatization and administrative approaches adopted in the Benin Republic and the United States of America.
- Historical context of state-owned enterprises in Ghana.
- Mechanisms of privatization and divestiture programs.
- Social and economic impacts of enterprise restructuring on labor.
- Comparative administrative challenges in Benin versus the United States.
- Political influence on state enterprise management and reform.
Excerpt from the Book
PUBLIC ENTERPRISES RESTRUCTURING AND PRIVATIZATION IN GHANA
Another salient feature of public administration in Ghana is the privatization of the state-owned enterprises (SOEs). SOEs have been a prominent feature of the economic landscape in Ghana since the 1950s. they have played a major role in virtually all sectors of the economy. In 1983 the government had a majority holding in 181 parastatals, with a minority interest in fifty-four companies. It was the poor performance of the state-owned sector that led to calls for public enterprises reform and divestiture. Public enterprises incurred large deficits; their total operating deficit in 1982 amounted to more than 3 percent of GDP, which was close to total government spending on education, health, social security, and welfare that year. Public enterprises had also become a significant drain on the government’s budget, with support for them ranging from 10 percent of government expenditure in 1982 to 8 percent in 1986. The sector was a burden on government in various other ways as well, such as requiring indirect support on tax and loan arrears.
The government decided in 1994 to accelerate the divestiture program. The fist major action taken a was the sale of its majority stake in Ashanti Goldfields Corporation (AGC). The government earned US$350 million from this sale and another US$23 million from the sale of its stake in seven manufacturing companies listed on the Ghana Stock Exchange. Divestiture of its controlling stakes in the other state-owned mining companies was substantially completed in 1995. Subsequently, the government announced that it would sell another 114 enterprises.
Summary of Chapters
Management of Public Enterprises in Ghana: This chapter outlines the historical development of state-owned enterprises in Ghana and the subsequent introduction of performance monitoring systems to enhance efficiency.
Public Enterprise Restructuring and Privatization in Ghana: This section details the government's transition toward divestiture, the challenges of massive labor retrenchment, and the political complexities surrounding the privatization process.
Comparative Analysis of the Experiences of Benin Republic and United State America in the Management of Public Enterprises: This chapter contrasts the heavy state involvement in Benin’s diverse economic sectors with the more restricted, authority-based approach to public enterprises in the United States.
Keywords
Public Enterprises, Privatization, Divestiture, Ghana, Benin Republic, United States, State-Owned Enterprises, Public Administration, Economic Reform, Labor Retrenchment, Performance Monitoring, Structural Adjustment, Government Expenditure, Capital Market, Political Influence.
Frequently Asked Questions
What is the primary focus of this paper?
The paper focuses on the management, performance, and reform strategies of public enterprises in Ghana, with a comparative analysis of approaches taken in the Benin Republic and the USA.
What are the central themes discussed in the text?
Central themes include the historical role of the state in the economy, the transition to privatization, the socio-economic impacts of divestiture on workers, and the challenges of political oversight.
What is the main objective of the research?
The objective is to evaluate the experiences of these nations in managing public sector entities and to assess how structural reforms have influenced national economic conditions.
Which scientific methods are primarily used?
The research employs a descriptive and analytical approach, utilizing historical policy reviews and comparative institutional analysis to assess government interventions and administrative outcomes.
What is covered in the main body of the work?
The main body examines the specific transition phases of Ghanaian state enterprises, the operational difficulties during the divestiture process, and the differing management philosophies between Benin and the USA.
Which keywords define this work?
The work is defined by terms such as Public Enterprises, Privatization, Divestiture, and Administrative Reform.
Why was the Ghanaian divestiture program considered controversial?
Controversy arose primarily due to concerns regarding the transparency of the privatization process, especially concerning the outsourcing of management and the suspicion of corruption in asset valuation.
How does the US approach to public enterprises differ from that of Benin?
The US generally relies on specific public authorities for targeted sectors rather than broad state ownership, whereas Benin historically involved the government in almost all economic sectors.
What was the role of the Trade Union Congress in Ghana's reform?
The TUC strongly opposed the privatization efforts due to concerns regarding mass unemployment, increased costs of living through user charges, and issues surrounding severance pay for retrenched workers.
How does the author view the political influence on divestiture?
The author argues that politics has significantly hindered the reform process, citing lack of transparency and the perception that government officials often benefited personally from the sale of public assets.
- Citar trabajo
- Adeola Ajayi (Autor), 2010, Experiences of Ghana in the Management of Public Enterprises and a Comparative Analysis of USA and Benin Public Enterprise, Múnich, GRIN Verlag, https://www.grin.com/document/197847
