CONTROL AND AUTONOMY IN PUBLIC ENTERPRISES TO ACHIEVE EFFECTIVENESS AND EFFICIENCY


ABSTRACT

This paper is an attempt to study how to strike a balance between control and autonomy in public enterprises to achieve effectiveness and efficiency. The introductory section of this work emphasis about the historical background and definition of public enterprise by different scholar in the field of public administration.


In this study, major problem of public enterprises were highlighted, as well as its objectives.

The literature review of this study, deals with the various types of control in public enterprises, which were carefully discussed, ranging from legislative control, ministerial/ political control, audit control and treasury control etc.  Secondary data collection was adopted as the methodology employed. Moreso, detailed findings were made with 3 major conclusions. The researcher recommended that the appointment of the board of directors and of the management personal should be done properly to yield in the desired result. Secondly, the treasury controls to take into account the potential actual contribution of each enterprise from time to time etc.

INTRODUCTION

The origin of public enterprises in developing countries dates back to colonial period. When many European nations utilized public corporations as an arm of their government for seizing foreign territories (Fabrikant, 1976). In Nigeria and other African countries, the decades following World War II  (particularly, the 1960’s) witnessed a massive intervention of the government in national economics.

One of the ways through which the government intervened in the economics of these countries was by establishing Public Enterprise (PEs), State Owned Companies (SOE’s) Public enterprises were seen as veritable tools for achieving national socio-economic development.

Thus, since 1950s, successive government have used public intervention in the development process. This way eloquently stated in the Nigerian second national development plan (1970-74) thus, their primary purpose is to stimulate and accelerate national economic development under conditions of capital scarcity and structural defects in private business organizations. There are also basic consideration arising from the danger of leaving vital sectors of the national economy to the whims of the private sector often under the direct and remote control of foreign large scale industrial combines.  

Frankly speaking, public enterprises have been variously defined by different authors/scholars in the field of public administration. According to an expert group meeting on the “concept, definition and classification of public enterprises,” was needed for two major purpose  (Bolm 1981:72).

Firstly, for the purpose of undertaking comparative research studies, and secondly, for the wider purpose of better understanding  of the nature and  character of public   enterprises, with a view to improving  their  performance. For the united nation  (1944:2)  publication, public enterprises are defined as those enterprises “ in which the government has majority interest of   ownership and / or management.

They went further in (1968:1) to opine that public enterprises as “industrial, agricultural and commercial concern which are owned and controlled by central government ( in a unitary state)  or the central government and regional government (in a  federation)” .

Adamolekun (2002:28) “a public enterprises is an organization that set up as a corporate body and as part of the governmental apparatus for an entrepreneurial or   entrepreneurial like objectives. In Nigeria according to Ezeani (1995) public enterprises are engaged in a whole spectrum of economic activities including agriculture, mining, construction, manufacturing, utilities, commerce, and financial and other service.

However, considering the roles of public enterprises in the socio-economics development of a nation, it is important to put to conscious mind the amount of resource it utilized, ranging from the skills of labour they employ the kind of contribution they aspire with its potential to the gross national product (GNP). Thus, public enterprise constitute strategically to all sector or our national economics.
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