| State Owned Enterprise (SOE) privatization has become a major issue in both developed and developing countries of the world. During the 1980s, state owned enterprises were under scrutiny because of the accumulating evidence that such enterprises were performing poorly and creating difficulties for their country's economies, (DeWalle, 1989).; In response to these findings and as an expression of the growing credibility of free-market economics worldwide, governments have come to view privatization as an increasingly attractive means of solving the problems they encounter with public enterprises such as low productivity and high cost of over runs. Countries like Great Britain and the United States have already privatized a large number of their state owned enterprises, (Cormes, 1991).; Many developing countries such as Nigeria, Venezuela, Mexico and Chile are now in the process of privatizing various state owned enterprises such as the banking and transportation industries. For the developing countries, privatization of the state owned enterprises would not only play a major role in solving their debt problems, but will also go a long way in boosting the economy of these countries, DeWalle (1989). The purpose of this study is to attest to its core hypothesis that "The privatization of state owned enterprises will not only increase productivity, but also efficiency", through the better use of technology and labor forces. |
