privatization

Ramesh Chand Jain

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A
Focus Area(s)
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5
Critical Tasks
Country of Reform
Interviewers
Rohan Mukherjee
Name
Ramesh Chand Jain
Interviewee's Position
Deputy Commissioner of Kamrup
Interviewee's Organization
Guwahati, India
Language
English
Nationality of Interviewee
Indian
Town/City
Kamrup, Guwahati
Country
Date of Interview
Reform Profile
No
Abstract

Ramesh Chand (R.C.) Jain, deputy commissioner of Kamrup for Guwahati, India, describes his efforts to revive and reform the Assam State Transport Corp. during his tenure as managing director beginning in the year 2000. At the time he assumed his position, ASTC was on the verge of being closed down after 100 years of existence. It had about 5,400 employees who had not been paid for 14 months, a substantial debt, and only 72 vehicles in operating condition, earnings from which were almost nothing. The employees had been agitating and protesting since 1988. He discusses how he convened meetings of top employees and slowly persuaded them that they would benefit from significant changes. He had political support from the transport minister to undertake reform at any cost. Jain talks about reducing the number of employees through a voluntary retirement plan, requesting voluntary assistance from Tata Motors to train ASTC mechanics and improve repair shops, and starting an innovative public-private partnership by offering ASTC stations to private operators who would use ASTC vehicles and share income. He then convinced the private operators to recruit drivers and conductors from ASTC’s surplus workforce on financial terms favorable to both the operators and ASTC, and started a system under which each vehicle had an owner who was responsible for operating, maintaining and repairing it. He also talks about a zero-based inventory system under which parts were purchased from dealers only when needed. He also negotiated bulk purchases of tires, batteries, lubricants, and fuel, which were then sold to the operators at market rates.  He also discusses other measures taken by the Minister of Transport.

 

Profile
At the time of this interview, Ramesh Chand Jain was deputy commissioner of Kamrup for Guwahati. He was managing director of the Assam State Transportation Corporation from 2000 to 2006. He joined the Assam Civil Service in 1983 and served in various capacities.
Full Audio File Size
36 MB
Full Audio Title
Ramesh Chand (R.C.) Jain - Full Interview

Fatbardh Kadilli

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D
Focus Area(s)
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13
Country of Reform
Interviewers
Jona Repishti
Name
Fatbardh Kadilli
Interviewee's Position
Adviser to the Prime Minister
Interviewee's Organization
Albania
Language
Albanian
Nationality of Interviewee
Albanian
Town/City
Tirana
Country
Date of Interview
Reform Profile
No
Abstract

Fatbardh Kadilli, adviser to Albania's prime minister on anti-corruption policies, presents his views on the efforts to reform public administration. He says that the country adopted Western models for reform legislation and implementation, but that breaking old habits acquired under the former communist system was difficult. He believes that protecting civil servants from arbitrary firing impeded efforts to modernize the government because so many administrators were still in positions where they could not perform. He describes the difficulties of trying to institute a successful performance management system because Albania had few leaders who understand management. He reports on initiatives to downsize and consolidate ministries and to install Internet-based systems to reduce corruption in procurement, licensing and a number of other public services.

Profile

At the time of this interview, Fatbardh Kadilli was adviser to the prime minister on anti-corruption matters, a position he had held since 2005.  Prior to that he served for four years as a consultant on anti-corruption with an American firm financed by the U.S. Agency for International Development. Prior to that he led a program on integrated services for children at UNICEF. From 1998 to 2005, he was also a consultant with the Institute for Contemporary Studies, where, among other tasks, he advised the government on decentralization reforms. Earlier, he served in the State Secretariat for Local Governance, where he was in charge of the Refugee Office and drafted the law on asylum seekers.

Full Audio File Size
78 MB
Full Audio Title
Fatbardh Kadilli - Full Interview

Zef Preci

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D
Focus Area(s)
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6
Country of Reform
Interviewers
Jona Repishti
Name
Zef Preci
Interviewee's Position
Research Director
Interviewee's Organization
Albanian Center for Economic Research
Language
Albanian
Nationality of Interviewee
Albanian
Town/City
Tirana
Country
Date of Interview
Reform Profile
No
Abstract

Zef Preci, head of the independent, non-governmental Albanian Center for Economic Research, critically assesses progress and setbacks in Albania’s civil service reforms. He says that despite a civil service law aimed at creating a merit-based civil service insulated from politics, the hiring and firing of civil servants had become highly politicized and retained many of the characteristics of the former communist system. The focus is upon patronage rather than services to the public. He is critical of international donors for looking the other way. He believes that the army and police have been de-politicized and were forces for good.

Profile

At the time of this interview, Zef Preci was the founding head of the independent, non-governmental Albanian Center for Economic Research, established in 1992 as Albania's first independent, non-governmental organization dedicated to research and analysis in support of a market economy and democracy. He served briefly in 2000 as the minister of public economy and privatization before he returned to ACER as its director. Later, he was an adviser to Albania's president and chairman of the Authority for Competition.  During his career, he also was a lecturer in entrepreneurial economics at Tirana University.

Full Audio File Size
61 MB
Full Audio Title
Zef Preci - Full Interview

Joshua Galeforolwe

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L
Focus Area(s)
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2
Country of Reform
Interviewers
Daniel Scher
Name
Joshua Galeforolwe
Interviewee's Position
Chief Executive Officer
Interviewee's Organization
Public Enterprise Evaluation and Privatisation Agency, Botswana
Language
English
Nationality of Interviewee
Botswanan
Place (Building/Street)
Public Enterprises and Privatisation Agency
Town/City
Gabarone
Country
Date of Interview
Reform Profile
No
Abstract
Joshua Galeforolwe discusses the creation of Botswana’s Public Enterprise Evaluation and Privatisation Agency, using a consultancy model.  He outlines the goals behind Botswana’s privatization efforts and the challenges of putting together a privatization strategic plan, identifying candidate enterprises for privatization and restructuring other state owned enterprises.  Galeforolwe also discusses the difficulty of coordinating privatization efforts and policies across ministries and in dealing with lack of support from many of those ministries.  He touches on the challenges for Botswana of a self-directed structural adjustment program.  He also offers advice for other countries attempting the privatization of public enterprise.
Profile

At the time of this interview, Joshua Galeforolwe was the chief executive officer of the Public Enterprise Evaluation and Privatisation Agency in Botswana.  Prior to creating and running PEEPA, Galeforolwe was general manager of Air Botswana.  Under his leadership, the airline was restructured and made a profit for the first time since it was established in the 1960s.   He earneds a bachelor’s degree in accounting from Makerere University in Uganda and a bachelor’s in economics from the University of Botswana, Lesotho, and Swaziland.

Full Audio File Size
68MB
Full Audio Title
Joshua Galeforolwe Interview

Nasir El-Rufai

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Focus Area(s)
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1
Country of Reform
Interviewers
Graeme Blair and Daniel Scher
Name
Nasir El-Rufai
Interviewee's Position
Former Director General, Bureau of Public Enterprises, and Secretary, Council on Privatization
Interviewee's Organization
Nigeria
Language
English
Nationality of Interviewee
Nigerian
Town/City
Washington, D.C.
Country
Date of Interview
Reform Profile
Yes
Abstract

Nasir El-Rufai narrates his entry into public service in the context of the return to democracy under President Olusegun Obasanjo.  As an outsider to the political scene, he managed to advocate for privatization and eventually drafted and implemented a concrete multistage plan.  El-Rufai identifies the “easy” cases for privatization as companies that are (1) already listed on the stock exchange, (2) easy to value, (3) already operational in competitive markets, and/or (4) not politically contentious.  In contrast, the “hard” cases require progressive policy reform including regulatory sector review, enactment of legislation for independent oversight, implementation of antitrust measures and, notably, the creation of a pension system.  In dealing with trade unions and special interest groups, El-Rufai highlights the importance of legal tools and the support of the media, the general public and figures with considerable political capital, such as Obasanjo and Vice President Atiku Abubakar.  He also describes his office’s instrumental collaboration with the newly created Economic and Financial Crimes Commission in the fight against money laundering and, in particular, the Nigerian letter scams.  During Obasanjo’s second term, El-Rufai joined the Economic Management Team that successfully renegotiated the Nigerian external debt and pursued wide-ranging reform.  He attributes the success to the trust, sacrifice and synergy established within the team; their capacity to understand and integrate Obasanjo’s political goals into a reform plan; and their ability to capitalize on booming oil prices by using revenues to strengthen fiscal rule.  His commitment to reform continued during his tenure as minister for the Federal Capital Territory (FCT Abuja).  To improve the quality of service delivery, he promoted the involvement of the private sector in service provision and increased the range of options for public staff training, including attachment with public and private entities in Nigeria and abroad, and post-graduate training at Harvard Business School.  El-Rufai also sought to disincentivize engagement in corruption by increasing remuneration. He addressed the challenge of limited resources by focusing on civil service downsizing and reduction of state expenditure followed by a pay increase across the board.  The necessary downsizing was achieved through a double strategy.  First, following the computerization of personnel management, ghost workers were identified and eliminated from the system.  Second, permanent secretaries were tasked with identifying underperforming or corrupt civil servants, who were offered retirement packages.  As the administration could reject resignations, the drain of the best public servants was prevented, and El-Rufai aimed to address the sources of their discontent, such as shortcomings in the promotion system.  On the other hand, cost reduction mainly entailed the transfer of government-provided housing and vehicles to private ownership by civil servants, amortized through a newly created mortgage system and installment plans.  El-Rufai then discusses another major and controversial achievements of his tenure, namely the land titling initiative, highlighting the role of democratizing information to manage public pressure and increase transparency.  In closing, his personal reflections on public policy making include the need for immersion in the political scene to ensure the continuity of reform across administrations, and the importance of formal training in public administration to understand how to frame policy to overcome resistance and biases. 

 

Profile

A quantity surveyor by training, Nasir Ahmad El-Rufai worked as a consultant in the construction private sector for years.  After declining several offers to join the public sector, in 1999 he became president Olusegun Obasanjo’s director general of the Bureau of Public Enterprises  and Secretary of the National Council on Privatization.  During Obasanjo’s second term, he served as a member of the Economic Management Team and took over as minister for the Federal Capital Territory (Abuja), where he led civil service reform and undertook the computerization of Abuja’s land register.  He served briefly under President Umaru Yar’Adua.  After leaving public service, he completed legal and public management training programs at the University of London and the Kennedy School of Government at Harvard. 

Full Audio File Size
136 MB
Full Audio Title
Nasir El-Rufai - Full Interview

Opening Gateways to Nigeria: Port Governance Reforms, 2003-2007

Author
Jonathan Friedman
Country of Reform
Abstract
In 2003, Nigeria’s seaports were among the least efficient in the world due to inadequate infrastructure, corruption, and procedural entanglements caused by dozens of government agencies competing for slices of the ports’ revenue. Businesses suffered, investors stayed away, and shippers diverted their loads to ports in neighboring countries. Seeking to improve efficiency, ease the financial burden of administering the ports, and reduce corruption throughout the sector, President Olusegun Obasanjo invited private companies to manage Nigeria’s port terminals in exchange for commitments to invest in port infrastructure and to remit a share of profits and other fees. The ambitious reform was not easy. Opposition from Nigeria’s legislature nearly derailed the changeover, and acrimonious negotiations with labor unions threatened to prevent the smooth transfer of managerial responsibilities to private operators. Irene Chigbue, head of Nigeria’s privatization bureau, relied on a transparent and closely monitored concession process, political support from the presidency, and controversial legal arguments to achieve her goal. Private terminal operators brought substantial new investments and improved port operations, though complementary reforms were needed in customs and in the government’s regulatory functions to enable Nigerian businesses to realize the full benefits of the new system.
 
Jonathan Friedman drafted this case study based on interviews conducted in Abuja and Lagos, Nigeria, in January and February 2013. Case published May 2013.

Toothless but Forceful: Slovenia's Anti-Corruption Watchdog Exposes Systemic Graft, 2004-2013

Author
Gabriel Kuris
Country of Reform
Abstract
When Slovenia became independent from Yugoslavia in 1991, the Central European country rapidly transitioned to free-market democracy, with strong institutions and low levels of graft. In 2004, the government established the Commission for the Prevention of Corruption to demonstrate its commitment to good governance during the application process for European Union membership. However, the new watchdog body, which had no official enforcement powers, soon faced deeper challenges than it was equipped to handle. It found that political and business leaders had colluded to profit from Slovenia’s prolonged and underregulated privatization process, undermining the economy and diminishing public trust. Leveraging its moral authority and limited powers, the commission undertook investigations and released advisory opinions that spotlighted public corruption and the systemic flaws that enabled it. By outfoxing political opposition and developing innovative uses for its investigative powers, the commission and its partner institutions helped spark a nationwide anti-corruption movement. In early 2013, public protests toppled a prime minister the commission found had been in violation of campaign finance rules, and Slovenia’s struggle against corruption reached a turning point.
 
Gabriel Kuris drafted this case study based on interviews conducted in Ljubljana, Slovenia, in November 2012. Case published April 2013.

Cleaning House: Croatia Mops Up High-Level Corruption, 2005-2012

Author
Gabriel Kuris
Focus Area(s)
Country of Reform
Abstract
Conflict, cronyism, and a flawed privatization process damaged Croatia’s international image during its first decade of independence from Yugoslavia. After a change in government in 2000, a parliamentary consensus formed around the pursuit of European integration, but the European Union demanded real progress in tackling corruption, echoing citizen concerns. In response, the Croatian government created a specialized prosecution service called USKOK, the Bureau for the Suppression of Corruption and Organized Crime, to work in concert with other anti-corruption institutions. At first under-resourced and ineffective, USKOK grew in authority and stature after 2005, aided by new legal powers and new leadership. By building capacity and institutional partnerships at home and abroad, USKOK rose to be one of Croatia’s most-trusted government institutions. By 2012, USKOK had achieved a conviction rate surpassing 95%, successfully prosecuting a former prime minister, a former vice president, a former top-level general, and other high-level officials. By turning a corner on corruption, USKOK’s work strengthened the rule of law and cleared a key obstacle from Croatia’s path to European Union accession. This case study describes how USKOK’s leadership built capacity, public trust, and sustainability under pressure.
 
Gabriel Kuris drafted this case study based on interviews conducted in Zagreb, Croatia, in November 2012. Case published April 2013.