The Impact Of Privatization On Enterprisess Perfomance And Efficiency

Abstract

In the wake of the Second World War. Westem Europe was engulfed by a ware of nationalization of the strategic enterprises. The bacl: wash come in l980s when privatization become the new trend. lt assumes many forms. divestiture, or sale of the whole or bulk of shares in state’s enterprises, and deregulation, free competition of the private sector and govemment enterprises. The motives behind current privatization movement are quite diverse. The consideration for better ways of mobilizing and using resources that government seems unable to handle efficiently. The issue of the rise in the burden borne by citizens as a price for government services pay for them. Several reasons cited for adoption of privatization emphasized that public sector serves the bureaucrats needs rather than its customers, and due to the failure and losses of the public sector, high budgetary deficits and inefticienlly utilization ofresources. Privatization in the Sudan dates back to the l920s_ when the nt abandoned to the Sudan Light and Power In l965 another phase of colonial governme Company, a private British firm. privatization represented in the state concession of cigarettes company and Rabak Cement company. ln l967 the govemment started nationalization process completed by May regime in I969. Advocates of privatization in the Sudan stress loss-making as the main justifications for sale of state enterprises, while opponents focus on the fact that they represent surrender to extemal pressures mainly ll\/IF. Sudan Airways witnessed a serious deterioration in all aspects, financially, technically and administratively, representing a degrading process in company’s efficiency and performance. lt has been operating with annual deficit over the last ten years till 1989. Steps were taken to rehabilitate and improve it’s performance through a bundle ofdecisionsi The research concluding that Sudan Airways can improve its’ performance and efficiency through selling stocks to foreign strategic share holder to gain capital and experience. Since the company represent the sovereignty and has social objectives, the government share should be a golden share.