ABSTRACT

Privatisation at the enterprise level, the clearer aspect of the privatisation concept, can proceed in terms of ownership changes or operational changes. The concept of operational changes is of significance in a unique sense in the context of developing countries. Ownership changes, especially of the extreme kind - i.e. denationalisation, are not politically easy; yet substantive elements of privatisation can be introduced in the organisational structures and in the operating criteria of the public enterprise as in Sudan. "Contracting out" has begun to assume importance in developing countries in a special way. Public enterprises are encouraged to promote ancillary units with which they enter into contractual relations for the supply of certain inputs. In this way a certain part of the operations that public enterprises could have themselves undertaken is shed to private units. The macro dimension refers to the fact that proportion of private investment in national economy expands as a sequel to government policies on investment and entrepreneurship.