PRIVATIZATION OF PUBLIC ENTERPRISES AND ITS
IMPLICATION ON ECONOMIC POLICY AND DEVELOPMENT OF CROSS RIVER STATE.
DEPARTMENT OF BUSINESS ADMINISTRATION
ABSTRACT
The
research was on privatization or public
enterprise and its implication in economic policy and development of Cross
River State. Data were collected primarily through the use of questionnaire and
secondarily source through the reviews of relevant academic materials. The data
collected were used to test the hypothesis and the result of finding revealed
that, there is significant relationship between corruption and dishonest
practice of staff. The study recommended that for public enterprise to meet the
people’s expectations, the government should play a giant role of pumping more
money into the enterprise the staff must be trained of perform their responsibilities, corruption must be reduced to its bearest
minimum and management capacities of the government must be increased through
further training and retention of skilled staff.
CHAPTER ONE
GENERAL INTRODUCTION
1.1 Introduction
Cross River State public enterprises are
generally corporate entities other than ministerial departments they derive
their existence from special statutory instruments and engage in special
business type of activities to provide goods and services for the overall
social economic upliftment of the citizen these include corporation,
authorities, boards and enterprise so owned and operated (Jerome 1999).
The non-performance of the public
enterprise has prompted series of discussion and policy recommendations on how
best to move them out of their present quagmire. It was for this quagmire that
in 1999, the Cross River State government instituted sweeping reforms across
the various sector of the state economy where they recognized that public
expectations.
They were conceived to be consuming a
large portion of national resources without discharging the responsibilities
thrust upon them.
1. That they create economic difference
2. They incur huge financial resources
3. They absorb
disproportionate share of credit and especially in the form of foreign loans
(Oluade 2007).
While the public remains divergent in
their feelings regarding policy choice and actions the state governments seems
decided, poised and irrevocably committed to the privatization option towards
this end.
A decree was promulgated that is decree
No. 25 of 1988 to give practice effects to and set approximate machineries in
motion to privatize some government enterprises.
1.2 The research
problem
Privatization programme just like any
other of programme initiated by the state government did not just start.
Privatization programme arose because the
defunct public enterprises had to meet public expectation they were alleged to
be consuming a large portion of national resources hereby creating economic
inefficiencies, incurring huge financial resources and absorbance of
disproportionate share of credit especially in the form of foreign loans. It
could be used interwovenly with commercialization though privatization involves
the sale of government owned company to private investors or individuals who
now becomes the new owners changing the way government owned companies operate
to ensure that they run commercially and make profit the existing differences
is their ownership structure.
1.3 Purpose of
the study
The
primary purpose or aims of the study is to find outs why government had decide
to embark on privatization programme and their implication in economics policy
and developments in Cross River State. It is worthy of note that the primary
goals of privatization programme is to make the private sector, the leading
engine growth of the Cross River State economy the government intends to use
the privatization programme to take Cross River State back into the global
economy as a plant form to attracts foreign direct investment in an open, fair
and transparent method.
1. To send a
clear message to local and international community that a new and transparent
Cross River State is open for business.
2. To
Restructure and revitalize the public sector in order to substantially reduce
the dominance of unproductive government investment in the sector.
3. To create
jobs, acquire now knowledge, skills and technology and expose Nigerians to
internationals competition.
4. To raise
funds for financing socially eradicated programme such as poverty eradicated
programme such as poverty eradication, wealth creation and infrastructure.
1.4 Research
questions
This
study aims at asking some fundamental questions which I believe if poverty
analyzed will help us to understand more reasons behind privatization programme
in Cross River State.
These research questions are:
1. What is privatization?
2. Why are public enterprises privatized?
3. Does it have
any implication in economic policy and developments of Cross River State?
4. Who are the beneficiaries of privatization?
5. Do you think it should be encouraged?
1.5 Significance
of the study
Researchers
are usually conducted with a view to contributing to already existing knowledge
and understanding about a particular discipline.
The opportunity provided by this study
will used to explore the factors that gave rise to privatization of public
enterprises in Cross River State and its implication on economic policy and
development in Cross River State. It is believed that the study and many
suggestion will contribute immensely to the reasons behind the privatization of
publics enterprises its implications in Economic policy and development in
Cross River State.
Furthermore, this study would endeavor to
show that public enterprises are set up or established to bring upliftments and
elevation in the economic life of the state and citizenry.
Finally, the research may serve as a mark
for further study on the privatization of public enterprises, understand the
problems and proper solution to them.
1.6 Scope of the
study
The
study covers privatized enterprises government owned in Cross River State.
1.7 Definitions
of relevant terms
It is imperative to give an operational
meaning to some of the words that is used in the study;
i.
Privatization:
This means the sale of government assets or
enterprises wholly or partially to privates investors for effective management.
ii. Government: This
has to do with a group of individual exercising legitimacy and authority and is
also an institution through which the will of the state is formulated,
expressed and attained.
iii. Enterprise:
Ventures that exist to yield profit and renders services to people.
iv. Economy:
The state of a country or region in terms of the production and consumption of
goods and services and the supply of money.
v. Development:
This has to do with concentrated efforts which are made to facilitate
significant increase in productivity.
vi. Interview:
Refers to meeting of people or persons either face to face or dialogue with aim
of getting information about an issue.
1.8 Organization
of the study
This
research work is divided into Five Chapters. The first chapter represents an
overview of the study, significance of the study, scope of study, definition of
some relevant terms and research question.
The second chapter deals with the
theoretical based on conceptual framework and reviews related literature as
will as the model or theories.
The chapter three talks about research
design, data preparation, instrumentation, validity/reliability of instrument.
Chapter four talks about data
presentation, analysis and the discussion of findings.
Chapter
five talks about summary of findings, recommendation and conclusions