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Contract plans and public enterprise performance, Volume 1
Author:Nellis, John R.; Collection Title:Policy, Planning and Research Department working papers ; no. WPS 118
Country:Senegal; Morocco; Congo, Republic of; Date Stored:1988/10/01
Document Date:1988/10/31Document Type:Policy Research Working Paper
SubTopics:Small Scale Enterprise; Banks & Banking Reform; National Governance; Municipal Financial Management; Private Participation in InfrastructureLanguage:English
Major Sector:Public Administration, Law, and JusticeRegion:Africa; Middle East and North Africa
Report Number:WPS118Sub Sectors:Civil Service Reform
Volume No:1  

Summary: Roughly 100 public enterprises in developing countries are using contract plans - negotiated performance agreements between the government/owner and the enterprises' managers or directors. Contract plans have not improved the financial performance of public enterprises dramatically. The process is probably more important than the product. They do however, produce clearer goals, open a dialogue between management and the state, and offer such benefits as better accounting, auditing, and management information systems, including physical and financial performance indicators and performance targets. The problem is, they have been oversold. They are not the mechanism for healing a sick company. They work best with firms that operate commercially and already have decent management and sound reporting procedures.

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