Performance of Publ ic Enterprises in Nepal
Public Enterprises (PEs) have been established in Nepal with multiple goals and responsibilities. Though PEs have assisted in developing the infrastructure and institutional base in the country, these enterprises have neither been functioning in an efficient manner nor been able to perform their assigned roles. Performance analysis, in terms of the financial, economic and social parameters, shows that the Nepalese PEs have not been successful in achieving the financial and economic objectives, and also in providing social benefits to the people at large. Excessive political interference, lack of adequate autonomy and accountability, absence of professionalism, rampant financial indiscipline and conflicting goals have been the main reasons responsible for the dismal performance of PEs in Nepal. However, their performance can be improved by allowing greater autonomy and more accountability by introducing reward and punishment system linked with performance, and by appointing the Chief Executive Officer (CEO) by merit basis. In the absence of such measures, these enterprises need to be either privatized or liquidated. Presently, PEs in Nepal are, no doubt, at the cross-roads. Any delay in implementing reforms (privatizing or liquidating or continuing to operate through restructuring) would be detrimental to the overall health of the national economy.
Volume (Year): 15 (2003)
Issue (Month): (April)
|Contact details of provider:|| Web page: http://www.nrb.org.np/ecorev/|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ayub, Mahmood A & Hegstad, Sven O, 1987. "Management of Public Industrial Enterprises," World Bank Research Observer, World Bank Group, vol. 2(1), pages 79-101, January.
When requesting a correction, please mention this item's handle: RePEc:nrb:journl:v:15:y:2003:p:203-226. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dr. Bishnu Prasad Gautam)
If references are entirely missing, you can add them using this form.