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 Periodical article |
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| Title: | The impact of public enterprise reforms on the State budget in Sudan |
| Author: | Musa, El Khider Ali |
| Year: | 2002 |
| Periodical: | African Administrative Studies |
| Issue: | 58 |
| Pages: | 31-42 |
| Language: | English |
| Geographic term: | Sudan |
| Subjects: | public finance economic policy privatization |
| Abstract: | One aspect of Sudan's economic crisis in the 1980s was the poor performance of public enterprises (PEs) and its negative impact on the government budget. In the early 1990s, when Sudan was declared ineligible and non-cooperative by the IMF, the military government launched the so-called Sudan Structural Adjustment Policies, which were on the whole nothing but a carbon copy of the standard Structural Adjustment Programme (SAP) agreements concluded by the World Bank and the IMF. Sudan's SAP pursued an aggressive PE reform policy. Privatization was the core of this policy. To implement this programme, the government issued the Disposal of Public Enterprises Act 1990, which established the High Committee for the Disposal of Public Enterprises, chaired by the Minister of Finance. This article assesses the effectiveness of the PE reform programme in achieving the elimination of the budgetary burden of PEs. The Economic Review of 1996 indicates that the financial performance of PEs improved following the 1990 reforms. However, this had no positive impact on the State budget, in particular because the government still provides substantial electricity subsidies and facilitates huge loans to PEs. The article argues that while privatization remains the best reform policy, the government should also enhance commercialization policies, conclude management contracts and expose PEs to strict financial discipline. Bibliogr. [ASC Leiden abstract] |