scholarly journals Restructuring State-owned Enterprises of a State Government of India: Problems, Prospects, and Lessons Learnt

2011 ◽  
Vol 36 (3) ◽  
pp. 47-60
Author(s):  
Suvendu Bose

Poor performance has become a regular feature of the state-owned manufacturing enterprises in spite of their having experienced workforce, old brand reputation, etc. Most of them have fallen into a vicious cycle due to their prolonged poor performance. The problem starts with the poor working capital position, leading to high raw material cost and uncompetitive final product pricing. This leads to the generation of a very low investible surplus. Not having investible surplus has forced the state-owned manufacturing companies to a financial situation where they are facing severe dearth of capital. The age-old plant and machineries coupled with outdated technology used for production face severe problem under the dearth of capital condition and the manufacturing units become incapable of generating sufficient investible surplus. Lack of modernization of machinery and upgradation of people skills lead to constraints in producing value-added product which have both market demand as well as the potential for greater contribution than the regular product. Therefore, the manufacturing companies continue to perform poorly, without any product-mix diversification. The poor operational performance also gets reflected in their financial performance. Despite having positive contribution at operating margin before direct labour, most of the state-owned manufacturing companies are incurring losses at Earning Before Interest, Tax, Depreciation and Amortisation (EBITDA) level, even under the best-case scenario, mainly because of huge amount of employee cost. This paper suggests two solutions for these manufacturing companies — restructuring and disinvestments. The financial restructuring of the state-owned enterprises has become a unique programme in the country having the following key features: Broad political consensus has been arrived at on the financial restructuring programme. Unique and extensive stakeholder consultation process has been adopted to facilitate buy-in of staff associations and unions on restructuring proposals Innovative framework and principles have been established for: categorization of enterprises early retirement scheme for employees Social Safety Net programme financial restructuring transparent and competitive bidding process with in-built safeguard A Public Enterprises Cell has been created for guiding the restructuring efforts. Impact of government's budgetary resources is seen in reduction of the State loan exposure to the tune of around Rs.344 crore, primarily through conversion of loans to equity. Impact on performance of enterprises identified for restructuring is reflected in the reduction in aggregate net loss to the tune of around Rs. 67.5 crore. Further improvement of the state-owned enterprises has been recommended based on the lessons learnt during the process of financial restructuring. It is believed that opportunities do exist for widening the scope of the programme.

2021 ◽  
Vol 9 (210) ◽  
pp. 1-24
Author(s):  
THAINA DE ARAUJO SILVA ◽  
Jhessica Larissa Carvalho Sarath

The present article deals with the cases of sexual abuse that occur in public transport, resulting from the patriarchal culture rooted in society, as well as the poor performance of the State in offering a public service, without guaranteeing its quality. Based on this situation, it is analyzed how the patriarchal and sexist culture is present in society and how the State is silent on public measures and policies that are in fact effective in guaranteeing the safety of women in the public space. Thus, it is concluded that for such a scenario to be solved or at least improved, there is a greater participation of the State as an essential service provider and policies with the objective of eradicating inequality of gender. This research uses the following methodology classified as: deductive, exploratory, with a monographic research, from a qualitative perspective.


Author(s):  
Emmanuel O. Oritsejafor

The poor performance of the state owned electricity company the National Electric Power Authority (NEPA), has provided the impetus for the establishment of the Power Holding Company of Nigeria (PHCN). However, despite the power sector reforms in Nigeria the country has continued to face massive challenges in the generation and distribution of electricity.


2020 ◽  
Vol 9 (3) ◽  
pp. 96-109
Author(s):  
Ralph Marenga

Public enterprises (PEs) are important instruments through which governments implement various national development objectives. A majority of PEs in Namibia face criticism on their inability to meet performance targets. These PEs are poorly managed and are a constant financial burden to the state. The degree of state acceptability through its public administrative processes as influenced by PE performance has been problematised as having a bearing on the trust and confidence of the public in the government. A qualitative paradigm was followed in analysing PE performance and its challenges for public administration in Namibia. The current text finds that poor accountability measures, financial burden on the state, procurement anomalies and the proliferation of corruption as some of the underlying causes for the poor performance of a majority of PEs in Namibia. This status quo erodes the public’s trust in the ability of the government to manage PEs. The study found a great contradiction in the relationship that exists between the government as a shareholder with the leadership of most PEs as relating to the crux of the agency theory. This study centrally recommends the robust implementation of existing legislation to redress the poor performance of PEs and its challenges for public administration.


2015 ◽  
Vol 13 (3) ◽  
pp. 638-656 ◽  
Author(s):  
Mary Fainsod Katzenstein ◽  
Maureen R. Waller

In the last decades, the American state has radically enlarged the array of policy instruments utilized in today’s governance of the poor. Most recently, through a process of outright “seizure,” the state now exacts revenue from low-income families, partners, and friends of those individuals who in very large numbers cycle in and out of the nation’s courts, jails, and prisons. In an analysis of legislation, judicial cases, policy regulations, blog, chat-line postings, and survey data, we explore this new form of taxation. In doing so, we endeavor to meet two objectives: The first is to document policies which pressure individuals (mostly men) entangled in the court and prison systems to rely on family members and others (mostly women) who serve as the safety net of last resort. Our second objective is to give voice to an argument not yet well explored in the sizeable incarceration literature: that the government is seizing resources from low-income families to help finance the state’s own coffers, including the institutions of the carceral state itself. Until now, no form of poverty governance has been depicted as so baldly drawing on family financial support under the pressure of punishment to extract cash resources from the poor. This practice of seizure constitutes the very inversion of welfare for the poor. Instead of serving as a source of support and protection for poor families, the state saps resources from indigent families of loved ones in the criminal justice system in order to fund the state’s project of poverty governance.


Author(s):  
Basilio Verduzco Chávez

Este artículo presenta una lectura de la situación de inseguridad en la que se destaca la incapacidad del Estado para integrar soluciones organizacionales e institucionales que proporcionen seguridad a los agentes de los cuerpos policiales, ayuden a construir relaciones de confianza entre policías y sociedad, incrementen la legitimidad de las actuaciones policiales y, en consecuencia, reduzcan los índices de criminalidad observados. Se analiza la experiencia mexicana para estudiar la falta de confianza y el pobre desempeño de la policía como resultados de fallas de diseño institucional. Los problemas de diseño institucional persisten debido a errores de interpretación de la racionalidad de los actores y de los procesos de cambio social registrados en el país, malos diagnósticos de los problemas de seguridad, problemas al distinguir entre estructuras de implementación y poblaciones objetivo, al diseñar políticas públicas que forman parte de una estrategia de soberanía graduada que ofrece protección desigual a los ciudadanos.ABSTRACTThis article presents an interpretation of insecurity, highlighting the lack of capacity of the State to integrate organizational and institutional solutions aimed at providing protection to police officers, building trust on police-society relationships, increasing police legitimacy and, therefore, reducing crime rates. Based on the analysis of the Mexican experience, this article looks at the lack of trust and the poor performance of police corps, consequences of institutional design failures. Such failures persist due to erroneous readings of actors´ rationalities and social change processes observed in the country, poor diagnostics of security problems, and confusion of implementation structures and target populations in public policies that integrate a graduated sovereignty strategy through which the state offers different levels of police protection to its citizens.


2020 ◽  
Vol 2 (1) ◽  
pp. 1-24
Author(s):  
Yorgos Christidis

This article analyzes the growing impoverishment and marginalization of the Roma in Bulgarian society and the evolution of Bulgaria’s post-1989 policies towards the Roma. It examines the results of the policies so far and the reasons behind the “poor performance” of the policies implemented. It is believed that Post-communist Bulgaria has successfully re-integrated the ethnic Turkish minority given both the assimilation campaign carried out against it in the 1980s and the tragic events that took place in ex-Yugoslavia in the 1990s. This Bulgaria’s successful “ethnic model”, however, has failed to include the Roma. The “Roma issue” has emerged as one of the most serious and intractable ones facing Bulgaria since 1990. A growing part of its population has been living in circumstances of poverty and marginalization that seem only to deteriorate as years go by. State policies that have been introduced since 1999 have failed at large to produce tangible results and to reverse the socio-economic marginalization of the Roma: discrimination, poverty, and social exclusion continue to be the norm. NGOs point out to the fact that many of the measures that have been announced have not been properly implemented, and that legislation existing to tackle discrimination, hate crime, and hate speech is not implemented. Bulgaria’s political parties are averse in dealing with the Roma issue. Policies addressing the socio-economic problems of the Roma, including hate speech and crime, do not enjoy popular support and are seen as politically damaging.


2017 ◽  
Vol 14 (1) ◽  
pp. 174-181
Author(s):  
Maura Mbunyuza-deHeer Menlah

This article reports on a proposed evaluation plan that has been developed to assess the work done by the State Information Technology Agency (SITA). The SITA programme was implemented in response to the South African government’s call to improve the lives of the populations in some rural areas through technology. The programme was meant to address slow development in  rural  areas  that  lack  technological  innovations  and  advances.  In  the proposed evaluation plan a review is made of secondary data, deciding how strategic priorities are to be determined, as well as analysis of the rural context environment. The researcher gives an account of how the evaluation strategies are to be piloted and rolled out thereafter. Lessons learnt are recorded and reported upon. A proposed evaluation plan will be developed, based on the lessons learnt in line with the objectives of the project.


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