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Public Enterprise in Kenya - What Works, What Doesn't and Why (Hardcover, New ed.)
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Public Enterprise in Kenya - What Works, What Doesn't and Why (Hardcover, New ed.)
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Central to the development strategies of virtually all the
sub-Saharan economies, public enterprises are nonetheless perceived
as inefficient and unprofitable. Barbara Grosh examines the public
enterprise system in Kenya and shows that, while average
performance has indeed been poor, there has been a broad range of
results - from excellent to abysmal - and many firms have performed
well for long periods. Grosh uses four indicators (profitability,
efficiency, prices paid to suppliers and consumer prices) to assess
which firms performed well, which had problems and when and why
those problems developed. Covering 1963-1988, data is provided for
17 firms in the agricultural sector, four in finance, seven in
transport and communications and five in development finance. In
addition, 30 publicly-owned manufacturing firms are compared with
40 private ones. She concludes that neither privatization nor
policies designed to bring firms and their managers under control -
approaches gaining popularity with African policymakers - is likely
to solve the problems. She concludes also, however, that most of
the problems are susceptible to limited and feasible reforms, and
that public enterprise performance can be improved.
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