Economic and Financial Review


J. A. Aremu


Research Department, Central Bank of Nigeria.


Privatization policy, State-Owned Enterprises (SOEs), State enterprises sector, Thailand financial system, Thai government.


This is review of a survey conducted by F. W. Swerczek in 1988. The opinions of top executives of Thailand financial system were examined on privatization policy as well as its alternative options for improving the efficiency of the State Owned Enterprises (SOEs). His main findings, through the mailed questionnaire could be grouped into four sections, namely : (A) policy options for the State Enterprises Sector; (B) investment preferences and barrier to business managers; (C) alternative strategies for privatization; and (D) main conclusions and recommendations. Section 1 of the report classified SOEs into five major groups: income-generating monopolies; public utility, like telephone and electricity; special purpose, like airlines and tourism; defence related manufacturing companies and others. Section 2 of the report further revealed the behavior of the business community by stating that any privatization policy which emphasizes money-making enterprises as investment, candidates would be attractive to the buyers. In Section 3 of the report, the question was raised whether in lieu of privatization there are alternative strategies that could be employed to shore up the ailing position of the SOEs for better performance. In response, most of the business managers recommended that greater attention need to be paid to certain issues. Among these are the operational management of the SOEs in terms of human resources development, internal audit and control, the pursuit of effective marketing strategies as well as the motivation of the public enterprise employees. It concludes in Section 4 that government privatization strategy, particularly in developing economies, is usually focused on dispensing with the 'loser', that is those state enterprises that are sapping the national budget and credit resources while the money-making ones are to be kept.





Recommended Citation

Aremu, J. A. (1989). Privatization policy and market· issues: an example from Thailand By . F. W. Swierczek. Public Enterprises, Vol. 8, No. 3, September, 1988. Economic and Financial Review, 27(4), 47-48.



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