| Many African countries, before the 1980s, opted for stately owned enterprise as the main strategy for their economic development. The result has been disappointing. With a new call for change from various financial institutions such as the World Bank and the International Monetary Fund increases, many countries have implemented the structural adjustment programs and privatization, among other economic strategies, as tool for their economic development. As privatization strategies progress around the globe, the implementation in Togo gives the impression that little has been done in that country. Togo has adopted a privatization policy as key strategic element for economic development and sustainable growth to restructuring its crippled national economy, at the recommendation of the world leading financial institutions such as the World Bank and the International Monetary Fund. The implementation of such strategy has seen several keys public enterprises being privatized and particularly the Office Togolais des Phosphates (OTP), a vital source of revenue of the country and which, because of internal mismanagement and other external factors, has become a negative for Togo. Three major factors have contributed to the recommended privatization of OTP: the phosphate average price on the market, Togo's external debt, and the overall economic deficit. The analysis will measure and add to an existing game theory model of economic privatization and will extend an existing economic model. The recommendations will help governments establish guidelines to follow for adequate implementation of privatization tools and rules for the developing countries dealing with foreign direct investments (FDI) and international lenders. |
