ABSTRACT
INTRODUCTION Public enterprise reform is an important component of policy strategies to accelerate economic growth in many countries. Public enterprise (PE) reform consists of two distinct, but complementary, approaches. The private sector development approach to PE reform involves privatising PEs and encouraging private sector development both to enhance economic efficiency and to shrink the relative size of the PE sector. The corporatisation approach involves enhancing managerial incentives and clarifying PE budget constraints, so that PE performance improves without the government relinquishing ownership.
