United Nations

A/50/417


General Assembly

Distr. GENERAL  

12 September 1995

ORIGINAL:
ENGLISH


GENERAL ASSEMBLY
Fiftieth session
Item 97 (h) of the provisional agenda*


SUSTAINABLE DEVELOPMENT AND INTERNATIONAL ECONOMIC
COOPERATION:  BUSINESS AND DEVELOPMENT

Entrepreneurship and privatization for economic growth
and sustainable development

Report of the Secretary-General


CONTENTS

  Paragraphs  Page

I.  INTRODUCTION .........................................1 - 24

II.  SETTING ..............................................3 - 74

III.  SCOPE OF THE REPORT ..................................8 - 95

IV.  STRENGTHENING ACTIVITIES OF THE UNITED NATIONS SYSTEM,
  INCLUDING THROUGH BETTER COORDINATION ................10 - 376

  A.  Promotion of entrepreneurship ....................10 - 176

  B.  Promotion of privatization programmes ............18 - 338

  C.  Implementation of demonopolization ...............34 - 3612

  D.  Implementation of administrative deregulation ....     3713


________________________

  *  A/50/150.


95-27815 (E)   171095/...
*9527815*
CONTENTS (continued)

  Paragraphs  Page

V.  TECHNICAL ASSISTANCE .................................38 - 9313

  A.  Development of national capacities to promote
    entrepreneurship .................................  38 - 6413

    1.  Policy frameworks ............................38 - 5013

    2.  Legal frameworks .............................51 - 5216

    3.  Fiscal frameworks ............................53 - 6416

  B.  Design and implementation of privatization
      policies .........................................65 - 8119

  C.  Creation of enabling environments ................82 - 9323

    1.  Establishment and growth of small and
      medium-size enterprises ......................82 - 8323

    2.  Support for local entrepreneurs ..............84 - 9324

VI.  PARTNERSHIP BETWEEN PRIVATE AND PUBLIC ENTITIES ......94 - 14626

  A.  Mechanisms for discussion and consultation .......94 - 12426

    1.  Entrepreneurship .............................94 - 10326

    2.  Privatization ................................104 - 10928

    3.  Administrative deregulation ..................110 - 11129

    4.  Public enterprises through incorporation of
      private entrepreneurship practices ...........112 - 12030

    5.  Military conversion to civilian goods and
      services .....................................121 - 12432

  B.  Review and dissemination of experience and lessons
      learned ..........................................125 - 14633

    1.  Promotion of entrepreneurship ................125 - 13533

    2.  Implementation of privatization ..............136 - 14535

    3.  Application of private entrepreneurship
      practices in public enterprises ..............     14638

VII.  CONCLUDING OBSERVATIONS ..............................147 - 15438
 CONTENTS (continued)

              Page

Annexes

I.  LIST OF CONTRIBUTING UNITED NATIONS ORGANIZATIONS .................40

II.  LIST OF PUBLICATIONS BY UNITED NATIONS ORGANIZATIONS ON
  ENTREPRENEURSHIP, PRIVATIZATION, DEMONOPOLIZATION AND
  ADMINISTRATIVE DEREGULATION .......................................41

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A/50/417
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I.  INTRODUCTION


1.    The present  report  is  submitted  in  response  to General  Assembly
resolution 48/180 of 21 December 1993 on entrepreneurship and  privatization
for  economic  growth and  sustainable development,  in  which the  Assembly
requested the Secretary-General,  inter alia, to  prepare a biennial report,
in  consultation  with  the  heads  of  relevant  organs,  organizations and
programmes of the United Nations system,  on policies and activities related
to  entrepreneurship,  privatization,  demonopolization  and  administrative
deregulation.

2.   As  at  25  July  1995, 21  organizations  (see  annex I),  out  of  37
requested, had  provided inputs to  the report.   The high  response rate is
indicative  of the  importance the  United  Nations  system attaches  to the
promotion of  entrepreneurship and  privatization, as  well as  of the  wide
range of activities where such promotion can be  applied.  Depending on  the
organizations involved,  work in this  area runs the full  gamut of research
and analysis, technical assistance, financial support,  institution-building
and information  and training.  This  broad interest  is further exemplified
in annex II, which  provides a listing of the various publications issued by
the organizations concerned.


II.  SETTING

3.    The  private  sector's  contributions  towards   economic  growth  and
sustainable  development are  numerous  and  multifaceted.   An  active  and
growing private  sectors - whether small-, medium- or large-sized operations
- is the principal  means by which  a society generates employment,  creates
wealth  and   promotes  material  well  being   of  its   population.    Its
contribution  towards  the  alleviation  of  poverty  can  be   substantial.
Furthermore,  a  free  and  vibrant  private  sector  contributes  to  human
development  by opening up  opportunities and  options for  people to choose
occupation, consumption and  investments.   An equally  important factor  is
that  a  flourishing  private  sector  will  become  the  main  generator of
resources  in society and  contribute to a  stable and  growing revenue base
from  which Governments  can draw  resources  to  develop and  operate other
mechanisms,   systems  and   activities   supporting  economic   growth  and
sustainable development. As  a result, the role of  the market has been  put
to the  fore in  national and  international policy  discussions, as it  has
been increasingly recognized that market-based approaches may often  present
a  more  effective  means  of  performing  activities that  were  originally
undertaken by the State or in quasi-public organizations.

4.   Entrepreneurship is  a crucial  component of  a decentralized,  market-
based  approach  to   the  efficient  organization  of  economic   activity.
Virtually all successful private enterprises of all  sizes in all sectors of
an  economy, in  the developed  and  developing  worlds, originate  from the
efforts of individual  or small groups of  entrepreneurs.  The prospect  for
entrepreneurship in  most developing  countries has  improved remarkably  as
distortions  created  in  the  past  are  diminishing  substantially.    The
elimination of such distortions will  foster sound entrepreneurship  for the
benefit to societies.  A corollary to this
situation is  that the  receding nature  of the  State in  the economies  in
developing   countries  also  propels   greater  entrepreneurship  as  State
dominance diminishes and as new opportunities occur with privatization.

5.  Recent years have seen a significant  and continuing movement from State
control  of production  facilities to private ownership.   The privatization
movement  has targeted  not  only manufacturing  plants but  also activities
ranging from financial services to infrastructure.   Two factors are driving

privatization primarily.   First, Governments  are finding that  State-owned
enterprises are a drain  on their fiscal accounts at a time when  generating
revenues  is difficult.   Furthermore,  the  realization that  public sector
companies  are  simply  unable  to  provide  many  types  of  services often
motivates the move to privatize.

6.    However,  it  is  important  to  recognize  that  policies  to  foster
entrepreneurship,    as    well   as    those    regarding    privatization,
demonopolization  and  deregulation  have  often  been  met  by   unforeseen
problems  of  an  economic,  social  and  political  nature.    For example,
privatization,  deregulation   or  demonopolization  of  previously   public
activities  must be  followed by  additional  policies  to ensure  that, for
example, public  monopolies do  not turn  into  private ones  with the  only
difference  being that  monopoly rents  flow  to  private owners  instead of
public  ones.    Labour-market  deregulation  may  have  unforeseen  results
regarding  wage  diversion   and  deteriorating  social  cohesion.     Often
deregulation  necessitates   enhanced  policies   to  strengthen   corporate
governance   systems  and  generate  mechanisms  of  public  accountability.
Indeed,  corruption,  tax  evasion  and  even  the  exploitation  of  public
resources  for private  ends have  become serious  problems in  a  number of
countries.

7.   As a  result, consensus  is growing  that a  balance has  to be  struck
between the role of the market and the  Government, with the latter creating
the  enabling environment for  harnessing market  forces for  the economy to
reach its maximum  productive potential.   An enabling  environment includes
the provision of an adequate social and economic infrastructure,  including,
for  example, good  transportation and  communication facilities,  efficient
and  non-discriminatory  banking and  financial  institutions  and  an  open
trading and investment  regime. The private sector  may in fact  implement a
large   part  of  the  enabling  environment,  for   example,  by  building,
maintaining and operating roads, ports and  bridges, and creating banks  and
other financial  institutions.  It  is necessary for Government  to take the
lead in creating the  enabling environment, especially in terms of the legal
framework,  without generating  the negative  side-effects of  rent-seeking,
private  monopoly and corruption.   While  it has  been recognized  that the
role of  the market  and Government is  dependent on  the prevailing  socio-
economic environment in particular countries, it  is far from clear  exactly
where  that balance  lies.  Indeed, it  is an urgent area  for public policy
work.


III.  SCOPE OF THE REPORT

8.   In view of the large volume of contributions as  well as the variety of
activities  among and within  the organizations concerning entrepreneurship,
privatization,   demonopolization   and  administrative   deregulation,  the
present report  has been organized  along three main  sections.  In  section
IV,  the focus is  on strengthening activities in  the United Nations system
including through  improved  coordination  as related  to  entrepreneurship,
privatization, demonopolization and administrative deregulation.  Section  V
addresses technical assistance carried  out by the  various organizations as
regards   the   development  of   national  capacities,   implementation  of
privatization  policies and  creating  enabling environments.    Section  VI
deals with  the issue of partnership between private and public entities and
the extent to which  the United Nations  system contributes to forging  this
partnership.

9.   The  contributions by  the  various  organizations have  been organized
according to these  three sections in  order to  provide the  reader with  a
clearer understanding of  the variety and scope of activities carried out by
the  United   Nations  system   in  the   field   of  entrepreneurship   and
privatization.   Information contained in these  sections is drawn  entirely
from  material  provided by  the organizations  concerned.   Consequently it
reflects their own assessment of their activities.

            IV.  STRENGTHENING ACTIVITIES OF THE UNITED NATIONS SYSTEM,
                 INCLUDING THROUGH BETTER COORDINATION

A.  Promotion of entrepreneurship

Economic and Social Commission for Western Asia

10.  ESCWA activities are directed  towards promoting small- and medium-size
enterprises (SMEs) and privatization, which are  priority areas in the ESCWA
medium-term plan  and  the related  work  programmes.   Governments  in  the
region  increasingly  recognize  privatization programmes  as  an  effective
means  to  increase  efficiency  and   enhance  the  performance  of  public
enterprises.   ESCWA  has recognized  as  an  important part  of  industrial
development policy the  need to provide support to potential  entrepreneurs,
especially in  the identification  and establishment  of viable  operations;
and  also the  need to provide  support services and  assistance to existing
entrepreneurs.  ESCWA has addressed these  issues in close cooperation  with
the  United Nations  Development Programme  (UNDP)  and the  United  Nations
Relief and Works Agency for Palestine Refugees in the Near East (UNRWA).

International Labour Organization

11.  ILO involvement  in the area  of entrepreneurship and small  enterprise
promotion  began in  the 1970s  as an  important  and  integral part  of its
Management Development  Programme and is closely  related to  the work under
the World Employment Programme.  The  entrepreneurship and small  enterprise
programme operates at the following levels:   (a) activities concerned  with
the creation of a policy, regulatory  and cultural environment that supports
entrepreneurship and small  enterprise development; (b) activities aimed  at
building capacity among ILO constituents (Governments, employers and  worker
organizations)  and other  national  actors  in  their  efforts  to  provide
support  services to  small-scale enterprises;  and (c)  the development  of
various  training packages and  other resource  materials that  can be cost-
effectively  adapted   to  local   conditions  and   circumstances  by   ILO
constituents and others  with a commitment  to promoting  quality employment
through development of small enterprises.

12.  ILO is  a founding member of the  Committee of Donor Agencies for Small
Enterprise Development, which has as one  of its objectives the coordination
of work by various donors  and agencies (including UNDP,  the United Nations
Industrial Development  Organization (UNIDO) and the  World Bank) active  in
the entrepreneurship  and small enterprise  development area.  The Committee
is an important forum  for exchange of information on global activities  and
lessons learned in this area.

13.  ILO  assisted the United  Nations Conference  on Trade and  Development
(UNCTAD) with  the  preparation of  a technical  paper  for  the April  1995
meeting  of  the  ad hoc  working  group  on  the  role  of enterprises  and
development.   This paper analyses the relationship  between the development
of a  domestic entrepreneurial  capacity, in particular  the development  of
SMEs and the development process.

United Nations Industrial Development Organization

14.   In UNIDO,  entrepreneurship development  has been so far  applied as a
specialized  form of  human  resource development  intervention  related  to
selecting,  training and  coaching  of individual  owners/managers, enabling
them to make use  of better support facilities and improving their access to
information, finance, markets, technology  transfer and investor  resources.
In the  process,  policy issues  and institutional  measures are  addressed.
Thus, entrepreneurship development has been viewed  as an integral aspect of
a  comprehensive  and  integrated  approach  with  particular  emphasis   on
mainstreaming  women  and  developing  SMEs  as  well  as  in  the  form  of
"intrapreneuring"   for  addressing  restructuring  State-owned  enterprises
(SOEs) or other large-scale firms.

15.  An SME Branch  was established in the beginning  of 1994, in  line with
the new  priorities of the structural  reform, which is  responsible for the
coordination  of  UNIDO  activities  on  SMEs,  in  cooperation  with  other
services and units  of UNIDO.  The essence  of the UNIDO  SME Programme is a
focused contribution towards meeting the challenge  of SMEs to achieve their
full potential and maximize their contribution to industrial  modernization,
to  upgrade  their  productivity  and  competitiveness  through   continuous
learning  and  product/process  innovation.    The entrepreneurs  themselves
remain  the principal  actors, who  start or  expand a  business  and become
successful  contributors  to  development  when  operating  in  an  enabling
environment.

16.   Better networking with  other bilateral  and multilateral  development
institutions/donors (including  within the United  Nations system)  involved
in  SME promotion  and its  financing  is a  key element  of  the  UNIDO SME
programme.   This  relates  to  both "upstream"  and  technical  cooperation
activities, facilitates  the  exchange of  lessons  from  experience on  the
effectiveness of support  mechanisms and ensures complementarity of  support
activities.    Such   cross-fertilization  of   resources,  approaches   and
experiences is being actively pursued.

17.   Besides the comprehensive SME development  activities, UNIDO addresses
entrepreneurship  development  activities  and  concerns  within  the  Human
Resource  Development  Programme,  as  a  module in  target  group  oriented
technical  cooperation  projects, in  the  "intrapreneuring  form"  for  the
creation   of   independent  business   units   in   large-scale  industrial
enterprises,  or  for  spin-offs  in  the  privatization  and  restructuring
processes.   In combination  with the  latter, entrepreneurship  development
activities form an  important component  in safety net facilities,  together
with training and re-skilling.


B.  Promotion of privatization programmes

Department for  Economic and Social Information  and Policy  Analysis of the
Secretariat

18.   As part of  its regular activities, the Department undertakes research
and  policy  analyses  related  to   private  sector  development   and  the
deregulation  of economic  activity, often  in consultation  or  cooperation
with other  United Nations agencies,  other international organizations  and
international experts.  Its research  and analysis  of developments in  this
area serve as input and follow-up to discussions and deliberation in  United
Nations  legislative  bodies  and  forums,  such   as  the  United   Nations
Conference  on Environment  and Development,  the  World Summit  for  Social
Development  and the  Second United Nations Conference  on Human Settlements
(Habitat  II), and as  general guidance  to policy  makers actually planning
and implementing privatization and deregulation policies.

19.  Ongoing activities in the  area of entrepreneurship, privatization  and
deregulation include (a)  quantitative analysis and policy-oriented  studies
on the role of regulation, deregulation and  privatization in the context of
economic reforms in  developing and developed  countries and  countries with
economies  in  transition;  (b)  qualitative  analyses  and  policy-oriented
studies  of  privatization and  regulation of  public utilities  in selected
developing,  developed  and countries  with  economies  in  transition;  (c)
studies on  the  role of  the  firm,  demonopolization, the  functioning  of
markets and related issues that arise from the  incidence of market failure;
and  (d) improvement  of information  on SME's  and on  the organization  of
industry.

Economic and Social Commission for Asia and the Pacific

20.    ESCAP activities  have  focused  on  private  sector development  and
privatization,  investment  promotion,  small-  and  medium-scale   industry
development,  and  development  of  women  entrepreneurial  skills  and  are

mandated  by  (a)  the  Seoul  Plan   of  Action  for  Promoting  Industrial
Restructuring in Asia and the Pacific, adopted in 1992 by the Commission  at
its forty-eighth session, in Beijing; (b)  the Regional Strategy and  Action
Plan for Industrial and Technological Development  in Asia and the  Pacific,
adopted in 1992  by the Meeting of Ministers  of Industry and Technology  at
Tehran; (c) the Action Programme for  Regional Economic Cooperation in Trade
and Investment,  endorsed  in 1993  by  the  Commission at  its  forty-ninth
session; and (d) the Action Programme  for Regional Economic Cooperation  in
Investment-related Technology Transfer,  endorsed in 1994 by the  Commission
at its fiftieth session.

United Nations Conference on Trade and Development

21.    Three   UNCTAD  intergovernmental  bodies  and  one  United   Nations
conference  have  dealt   with  the  issues  of  privatization,   enterprise
development and  restrictive business practices  (demonopolization).   These
are  (a)  the  Ad  Hoc  Working   Group  on  Comparative  Experiences   with
Privatization; (b) the Ad  Hoc Working Group on  the Role of  Enterprises in
Development;  and (c) the  Intergovernmental Group of Experts on Restrictive
Business Practices and the United Nations  Conference to Review All  Aspects
of the Set of  Multilaterally Agreed Equitable Principles and Rules for  the
Control of Restrictive Business Practices.

22.  The Ad Hoc Working  Group on Comparative Experiences with Privatization
was  established in 1992.   The  Group attracted  considerable interest from
Governments and national experts on privatization.  At its fourth and  final
session, held  in April  1994, the  Ad Hoc  Working Group  adopted a  set of
Indicative Elements  for Consideration in  the Formulation of  Privatization
Programmes,  which reflects  the  lessons learned  and insights  gained from
practical privatization  experiences and  lists guidelines  and options  for
the  formulation and  implementation  of privatization  policies.    It also
spells   out   the  essential   conditions   for  successful   privatization
strategies.   These  conditions include  the promotion  of transparency  and
accountability in  the privatization process,  the fostering of  competition
and  regulation, and  the building  of  a  broad-based political  and social
consensus by giving sufficient attention to the social aspects.

23.   The  work  of the  Ad Hoc  Working  Group  generated about  50 country
studies, technical papers prepared by panellists  and papers prepared by the
secretariat,  including a  cross-country study,  issues papers  on  selected
topics, summaries of the discussions of the Ad Hoc Working Group on  various
issues,  an annotated  bibliography on  privatization  and  a survey  of the
activities of international organizations  in the area  of privatization, in
addition to  the Directory of National  Focal Points on Privatization.  This
substantive documentation provides important material for research work  and
policy development.

United Nations Development Programme

24.  There has been an increase in requests from Governments seeking  advice
and  support from UNDP  to develop  national support  programmes for private
sector development.   This  trend can  be observed  from the theme  areas of
requested assistance outlined in the country  programmes of the fifth cycle.
A number of  reasons for this rising trend can be discerned.   Firstly, UNDP
is  recognized  as  a  neutral  actor  in  the  development  arena providing
technical assistance without conditionalities.  Secondly, the  cross-cutting
themes  of  its  assistance  with  its  focus  on  capacity-building,  human
development  and  sustainability  usually  coincide  well  with   government
criteria  for national  development undertakings.  The new  emphasis on  the
"programme approach"  further opens up  opportunities to link private sector
support  programmes  to  other  related  areas  and  to  provide  for larger
programmes of cohesive, comprehensive private sector  support.  Finally, the
UNDP position  as the  coordinator of multilateral  technical assistance  in
the  development  community also  creates  opportunities  to  link  efforts,
resources and skills with that of other development agencies in this  field,
such as ILO, UNIDO, UNCTAD and the multilateral financial institutions.

  Food and Agriculture Organization of the United Nations

25.   Farmers, fisherfolk  and foresters  as private  entrepreneurs are  the
ultimate beneficiaries of FAO field activities.  Its activities in the  area
of privatization  have tended to focus  on aspects  relating to agricultural
policy assistance,  agro-industrial development,  preparation of  investment
projects  in a  vast range  of  agricultural  and rural  development domains
(including  agro-industry), support  services and  rural institutions, rural
finance, agricultural marketing and animal production and health.

International Fund for Agricultural Development

26.   IFAD  provides concessional  loans  to  developing countries  for  the
eradication of poverty and malnutrition in rural areas.   Agriculture in the
broad  sense  constitutes  its  sectoral  focus.    Although  borrowers  are
Governments  and  project  implementation  remains  the  responsibility   of
Governments, IFAD simultaneously attempts  to strengthen the  sustainability
of  its poverty  alleviation efforts  by  incorporating the  private  sector
dimension into its  activities.  Thus, IFAD  aims at directly  enhancing the
private productive capacity of small farmers or micro-entrepreneurs.

27.   IFAD  is  also  attempting to  shift  towards  a more  private  sector
initiative by directly facilitating the private supply of producer  services
and to  trigger a supply  response from the  private sector.   To facilitate
this, particularly  in  the take-off  stage  of  supply response,  IFAD  has
encouraged the establishment of private groups  of service suppliers to meet
private groups of producers in the market.   This approach focuses on  self-
help and local resource mobilization and privatizes development.

28.  The Fund's main challenge is to convert its loans to the public  sector
into  private investment.   Its  second challenge  is to  identify  the most
cost-effective  techniques in  which a  higher  proportion  of its  loans to
Governments  can  be  directly channelled  to small  private  producers, its
primary clientele, the smallholder farmers and the micro-entrepreneurs.

World Bank

29.  Recognizing the importance of  private sector development in developing
countries,  the  World Bank  group  has  in  recent  years strengthened  its
assistance  in this  vital  area.    Its role  in  promoting private  sector
development  was articulated most  clearly in  the report  on Private Sector
Development Strengthening the Bank Group Effort,  presented to the Board  in
April 1991. Coming in  the wake of World Development Report 1991, the report
identified  several  areas  for  World  Bank  work:    creating  an enabling
business  and competitive  environment for  the private  sector,  supporting
enterprise   reform  and  privatization,   and  promoting  financial  sector
improvements.

30.   The overall objective of  the actions  agreed to by the  Board in 1991
was  to  improve  the  effectiveness  of  the  Bank  group  institutions  in
promoting competitive private sector development.  The actions  contemplated
included many that involved  the Bank, the International Finance Corporation
(IFC)  and  Multilateral Investment  Guarantee  Agency  (MIGA)  as  separate
institutions.    Others  were  based  on  the  premise  that  closer working
relationships  were  essential.   Attention also  went to  formulating basic
principles  to  guide  the  actions  of   the  three  institutions.    Those
guidelines emphasized the need to accept  the market-first principle and  to
ensure that the actions  of the institutions did  not displace the market in
any  way.   The  guiding logic  was  that the  Bank  and  IFC had  different
comparative advantages  stemming from their  different experiences and  that
combining those  experiences was important in  view of  the historic changes
in  approach to private  sector development  in the  World Bank's developing
member countries.

31.   Towards those  ends, various steps  were envisaged  to strengthen  the
cooperative  efforts  of  the  Bank  institutions.    Key  among  these were

establishing a  private sector development  committee to closely  coordinate
the private  sector development  policies and  operations of  the group  and
adopting a  new focus  on strategy  formulation and  coordination.   Private
sector  development strategies  were to  be given  high priority  and to  be
explicitly  reflected  in all  country  assistance  strategy  documents  and
programmes  of  the  group,  and  IFC  and  MIGA  were  to  be  involved  in
formulation  of country strategy.   With  those objectives  in mind, private
sector  assessments  were   introduced  to  detail  the  opportunities   and
obstacles  faced  by  the private  sector  and  the  role  of  the group  in
fostering  its  development.   Other  steps  included close  cooperation  to
ensure that  all the group's financial sector operations were carried out in
the context  of a sound  reform strategy; explicit  support by  the group to
privatization, through  the provision  of advisory  services to  Governments
and  the  provision  of finance  for  public  enterprise  restructuring  and
investments in  privatized  firms; and  the intensification  of the  group's
research on private sector issues.

32.  Private  sector development is now a  core business of the World  Bank.
Private   sector  development  has   become  an  integral  part  of  country
strategies  and  private  participation  in  infrastructure  is  now  a  key
objective in  the policy dialogue  with client countries.   More than  three
fourths of the Bank's adjustment credits include  private sector development
as a primary objective.  Altogether, the group supports  about $25 billion a
year  in  private  investment, or  close  to  10  per  cent  of the  private
investment in developing countries.   In this fiscal  year, Bank staff  will
devote close to 600 person/years to  private sector development lending  and
non-lending advisory services, and the entire administrative budgets of  IFC
and MIGA are, of course, devoted to support of private sector development.

United Nations Industrial Development Organization

33.   UNIDO has  participated in several  activities of  the United  Nations
system in  the  area of  privatization.   These activities  include (a)  the
1993-1994  annual  general  meeting  of  the  Central  and Eastern  European
Privatization     Network      at     Ljubljana;      (b)     the      joint
ESCAP/UNCTAD/UNIDO/ILO/Asian Development Bank  workshop at Karachi;  (c) the
third and fourth sessions  of the UNCTAD Ad Hoc Working Group at Geneva; (d)
the fourth  and  fifth plenary  session  of  the Organisation  for  Economic
Cooperation  and  Development (OECD)  Advisory  Group  on  Privatization  at
Prague  and Paris; and  (e) the  co-hosting of the sixth  plenary session of
the  OECD  Advisory  Group  on  Privatization   at  Vienna.    In   projects
implemented with  service  inputs from  UNIDO, coordination  is through  the
local country offices of United Nations/UNDP.
  C.  Implementation of demonopolization

United Nations Conference on Trade and Development

34.    The  Intergovernmental  Group  of  Experts  on  Restrictive  Business
Practices  was  established in  1981 as  the permanent  body to  monitor the
application  and  implementation   of  the  Set  of  Multilaterally   Agreed
Equitable  Principles  and  Rules for  the Control  of  Restrictive Business
Practices  (RBP Set).    As  called for  in  the RBP  Set (General  Assembly
resolution 35/63), a United Nations Conference to Review All  Aspects of the
Set was convened  five years after  adoption of  the Set.   That  Conference
took  place in  1985, a  Second Conference  took place  in 1990 and  a Third
Review Conference is scheduled to take place in November 1995.

35.   Experts agreed  on a  wide spectrum of proposals  for consideration by
the Third  Review Conference.   They  include identifying  common ground  in
approaches followed  by member  States on  different competition  questions;
extensive proposals aimed at strengthening UNCTAD technical cooperation  and
assistance in  the area of  competition policy;  reviewing the way  in which
future sessions  of the  Intergovernmental Group  of Experts  will be  held,
including  proposals  for  informal  exchanges  of  views  and  multilateral
consultations   on  specific   competition   issues;  shedding   light   and
encouraging exchanges of views in a large number of areas.

Universal Postal Union

36.  Historically, the postal service  was considered an exclusively  public
service, providing  a number of products  through a  monopoly in practically
all countries.   However, in a  number of countries  that monopoly has  been
questioned  in   favour   of  competition.     Facing   this,  some   postal
administrations  have  taken  measures  for  monopoly  protection.    Postal
monopolies have always been considered a  domestic affair falling under  the
sovereignty  of each  member country  of UPU.  However, at  the  XXth Postal
Congress,  in Washington,  D.C., in  1989,  a number  of weaknesses  in  the
postal service  were exposed.  Above  all, the postal  service had not  paid
sufficient  attention  to its  clients  and  few postal  administrations had
seriously looked  into the  issue of  marketing, a  tool that was  used with
great  success  by  its competitors.    One  began  to  realize  that postal
services that had been in existence for over  100 years were not  responsive
to  the  modern  requirements  of  their   clients.    Furthermore,  it  was
understood  that too much  regulation can  pose constraints  on progress, on
initiatives and on the ability to adapt to  new situations.  As a result, in
the  most modern postal  administrations a movement towards deregulation has
started.   Still,  the transformation  of  a  postal administration  into  a
private  enterprise is  not without  problems.    For a  private enterprise,
profit  constitutes a determining  factor for  its functioning.   This poses
the problem of  basic service, which guarantees universal access,  something
that private operators may not be  willing to provide in  low-density areas.
In  view of  the  above,  the XXth  Postal  Congress launched  an appeal  to
Governments  to provide  the postal  service  with a  statute and  a  modern
management  system that  would guarantee  it  proper autonomy  and  adequate
human  and financial resources  based on  the notion  of profitability. Thus
the Congress did not formally adopt the idea of privatization, but its  main
objectives  embraced  self-sufficiency,   improvement  in  the  quality   of
services and modernization of its management methods.


D.  Implementation of administrative deregulation

International Telecommunication Union

37.     ITU   is   concerned  with   telecommunication  sector   reform  and
restructuring, leading to liberalization and, possibly, well considered  and
varying degrees of privatization within a  sound regulatory environment.  On
a   strategic  and   policy   level,   the  Union's   supreme   organ,   the
Plenipotentiary Conference,  meeting at Kyoto in  October 1994,  set out its
strategic  plan for  1995-1999 in  resolution 1  of which  it considers  the
subject  in   the  context   of  the   rapidly  changing   telecommunication
environment   under   three  broad   headings:      restructuring   of   the
telecommunication sector, technological convergence, and globalization.


V.  TECHNICAL ASSISTANCE

A.  Development of national capacities to promote entrepreneurship

1.  Policy frameworks

Department  for   Development  Support  and   Management  Services  of   the
Secretariat

38.    Advisory  services  and  technical  cooperation   activities  by  the
Department  continue to  be provided  to  assist Governments  of  developing
countries  and  countries  with economies  in  transition  in their  ongoing
programmes of privatization  and public enterprise reform.   One of the main
objectives of  public enterprise reform is  the promotion  of private sector
development  and entrepreneurship.   The focus  of technical  support was in
the  areas  of  strategy,  planning, methods,  valuation  and  financing  of
privatization.   Technical support  has been  provided to  such countries as
Angola,  Bangladesh,  China,   the  Gambia,  Kenya,  Malawi,  Myanmar,   the

Netherlands Antilles and Viet Nam.

Economic Commission For Europe

39.   In  ECE,  the  Division of  Industry  and Technology  focuses  on  the
development of entrepreneurship for countries with economies in  transition.
One  of  its  main  responsibilities  is   to  assist  these  countries   in
elaborating  government policy and  programmes for  SME promotion.   Through
the Regional  Adviser,  the Division  is  working  in cooperation  with  the
Working Group on SMEs of the Central European Initiative.

40.    The  Regional  Adviser  visited  Bulgaria,  the  Czech  Republic, the
Republic  of  Moldova,  Kazakhstan  and  the  former  Yugoslav  Republic  of
Macedonia  to review  the  current  situation of  entrepreneurship  and  SME
development, and  SME promotion  measures, and  also advised Governments  on
how  to improve the  existing promotion mechanism.   An umbrella project has
been  prepared  to  promote  SMEs  in   the  countries  with  economies   in
transition.  The Division is  working with the European  Union (EU), through
its Regional Adviser, to  support SME activities in  the Baltic States.  ECE
has  expressed  its  readiness  to  cooperate  with  the  Baltic  Council of
Ministers  to provide  similar services  as  those  provided to  the Central
European Initiative.

41.  The ECE Advisory Workshop  on Industrial Restructuring was organized in
June 1995 with the participation of  high-level industry policy makers  from
16  countries with  economies  in transition.    The ECE  Working  Party  on
Engineering  Industries and Automation will organize a workshop on 12 and 13
September 1995 in  Moscow on economic  aspects of the implementation  of new
technologies in small and medium-sized enterprises.

United Nations Development Programme

42.    In  certain  programme countries,  UNDP  has  been asked  to  provide
technical  assistance related  to the  formulation of  appropriate  national
policies that  support rapid  and effective  growth of  the private  sector.
Advice in the development of regulatory processes, privatization  procedures
and   policies,  parastatal   administrative   reform,   banking  regulatory
functions  and capital market regulations are part of the programme and help
UNDP efforts  to concentrate  technical assistance  "upstream" with  greater
emphasis on government policy  and action.   UNDP supports  entrepreneurship
through  country  programming, strengthening  of  institutional  structures,
capacity-building,   innovative  approaches,  enterprise  restructuring  and
sectoral development activities.

United Nations Population Fund

43.   The Programme of Action of the  International Conference on Population
and Development  has a section (para.  15.18) that  recognizes the important
role  of  the  private,  profit-oriented  sector  in   social  and  economic
development.  Consequently, UNFPA  encourages  Governments to  set standards
for  service delivery and  review legal,  regulatory and  import policies to
identify  and  eliminate  those  policies  which  unnecessarily  prevent  or
restrict the  greater involvement  of the  private sector  in the  efficient
production   of  commodities  for  reproductive   health,  including  family
planning,  and in-service delivery.   Practical examples of field activities
include  a  whole  series  of income-generating  projects  -premised  on the
spirit of  entrepreneurship -  that are  aimed  at improving  the status  of
women.

International Labour Organization

44.   ILO has been  assisting Governments in  a number of  countries in  the
design and  implementation of  consensus based  local economic  initiatives,
many of which have a  strong SME component.  ILO  is supporting a  number of
local development programmes  under a regional UNDP-funded project  entitled
Sustainable Human Integration Through  Economic Local Development  (SHIELD),

which covers the countries  with economies in transition.  The project began
in 1993  with the  objective of  contributing  to the  development of  local
strategies for employment  creation, income-generation, often with a  strong
emphasis   on   entrepreneurship   and    small   enterprise    development.
Additionally, recent UNDP-funded  ILO missions, some together with UNIDO  to
a number  of countries in  Africa and  Asia, have focused on  an analysis of
the  policy   and  regulatory  environment   and  on  facilitating   changes
favourable to the small-scale enterprise sector.
  45.   In  Kenya and  Ghana, ILO  is working  to  introduce entrepreneurial
aspects into  vocational training  courses so  as to  prepare graduates  for
employment in  the SME sector and,  possibly, to start their own businesses.
Similarly, in Indonesia, ILO will soon  be implementing a World  Bank-funded
project that will pilot test several  models for providing support  to young
graduates interested  in starting their own  small business  to identify the
most cost-effective approaches to an issue that could  have an impact on the
very  serious and growing  problem of  graduate unemployment.  Additionally,
recent  work in  Indonesia  has assisted  in the  development of  a national
strategy  to  promote  an  entrepreneurial  culture  through  a  mass  media
campaign closely linked to a national  distance training programme for small
business managers.

Food and Agriculture Organization of the United Nations

46.    FAO technical  assistance  in  agricultural  policy  and planning  to
countries  in Asia and  the Pacific  considers the  comparative advantage of
the public and  private sectors in  agricultural development  activities and
emphasizes policy  options, strategies  and institutional  reforms aimed  at
enhancing private  sector participation  in such  activities.   A number  of
policy  assistance projects  have also  been  carried  out in  other regions
(Europe, Near  East, Latin  America) with  direct or  indirect relevance  to
entrepreneurship and privatization.

47.  FAO policy assistance is supported by training.   Issues related to the
role of  the State and private  sector in  agricultural economic activities,
including   monopolies,   State-operated  enterprises,   privatization   and
legal/regulatory frameworks are addressed in FAO training courses on  policy
analysis.   Accordingly,   the   FAO   Training   Service   trains    public
administration  officials  on  how  they can  facilitate  and  support local
initiatives and entrepreneurship.

48.  FAO's assistance in training to  member countries revolves around three
main lines of activities:  (a)  formulation and implementation of in-service
training programmes  and  projects  in  response to  specific  requests  for
assistance  by   member  countries;   (b)  organization   of  regional   and
subregional  seminars  with  the  aim  of  assessing  countries'  needs  for
technical  and training assistance  in this field, while promoting technical
cooperation among countries  in the  region/ subregion; and (c)  preparation
of  methodological guidelines  for  the agro-industrial  sector  and  policy
review  with  the  purpose  of  clarifying   the  logical  process  and  the
techniques applied in this type of study.

49.   It is  planned that  the methodological  guidelines, once sufficiently
tested and illustrated with real-life situations  drawn from field projects,
will be published and disseminated to concerned ministries, departments  and
institutions in developing countries.  This,  combined with the outcomes  of
regional and  subregional seminars,  should provide  a solid  basis for  the
launching of  an FAO training  programme on  agro-industrial policy analysis
and planning  on a  large scale,  in line  with the  increasing demand  from
member countries for technical and training assistance in this field.

International Telecommunication Union

50.   The  World Telecommunication  Development Conference,  held at  Buenos
Aires in March  1994, promulgated the  Buenos Aires Action  Plan for  Global
Telecommunication  Development.  One  of the  core programmes  of the Action
Plan  deals with  policies, strategies  and financing  of  telecommunication

development.  The policy  aspect of  the programme covers  restructuring and
reform of the  telecommunication sector.  The Telecommunication  Development
Bureau has the responsibility for  operational implementation of  the Action
Plan.   ITU  has a special  role to  play in  advising policy  makers on the
options available in tailoring policies and  regulatory structures to fit  a
country's particular  requirements.   ITU  works in  close cooperation  with
regional  telecommunication organizations  and  international,  regional and
national development and financing agencies.   Many countries have developed
regional     telecommunication    development     policies    through    the
Telecommunication Development Bureau.


2.  Legal frameworks

Economic Commission for Europe

51.   ECE places  special emphasis  on the  creation of  a favourable  legal
environment for  business development.  The  Working Party on  International
Contract  Practices in  Industry has  prepared a  number  of manuals  on the
comparison of foreign  direct investment  laws for countries with  economies
in transition;  on financing East-West  trade and  privatization for central
and eastern Europe; and  on the adoption  of property laws for countries  in
transition.  The manuals provide models  of legal instruments for  countries
and show the  changes in the  legal field  that enhance  and accelerate  the
process of privatization and private sector expansion in the region.

World Bank

52.  In the area  of legal reform, the International Development Association
(IDA)  is supporting a  comprehensive training  program in  Zambia for legal
and  paralegal staff  and  the  upgrading  of  physical  infrastructure  and
logistical  capabilities.  In  Argentina and  Zambia, the  Bank is providing
technical assistance  to design  and implement antitrust law  and supporting
institutions.   In  Albania,  IDA   is  helping   to  improve  land  titling
procedures.


3.  Fiscal frameworks

United Nations Institute for Training and Research

53.   Under  the  umbrella of  the  UNITAR  debt  and  financial  management
training  programme,  the  Institute  has  been  involved  in  training  and
capacity-building initiatives in developing countries and in countries  with
economies  in transition.   To date,  over 33 training  activities have been
conducted, benefiting over 1,200 participants.   In recent years, the thrust
of this  training programme has moved  towards answering  the training needs
of  countries  with economies  in  transition  through  preparing  awareness
seminars  for  senior-level  government  officials  and  in-depth  capacity-
building workshops for middle-management in government circles.   Similarly,
UNITAR  has  developed  innovative  training  documentation,  packages   and
materials as  well as  a  comprehensive distance  learning training  package
entitled "Debt  and Financial Management:  Legal Aspects".   UNITAR has also
recently developed  a  case-study  workshop  package  entitled  "Negotiation
Theory and Practice:  Negotiation of a Multilateral Loan".

International Labour Organization

54.   Several  ILO programmes  seek to  address SME  problems of  access  to
credit. These  programmes include setting  up mutual guarantee  associations
for   SMEs;  programmes   linking  savings   banks  and   small   enterprise
associations; and  facilitating  the dialogue  between  the  SME sector  and
central  banks.    ILO  has  launched   a  special  research  and  technical
assistance  programme that focuses  on developing practical solutions to the
lack   of  sustainable   and   effective  credit   access   by   small-scale
entrepreneurs.

Food and Agriculture Organization of the United Nations

55.   The FAO  Investment Centre  assists countries  in  the preparation  of
investment projects for international financing.  Its  services are provided
under   cost-sharing   arrangements   with   the   multilateral    financing
institutions with  which FAO has cooperation  agreements, such  as the World
Bank  and the  regional and  subregional  development banks.   In  1994, FAO
signed  a  formal   cooperation  agreement  with   the  European   Bank  for
Reconstruction  and  Development.  Increasingly,  much  of  the   assistance
provided  by the  Investment Centre  to  Governments  is aimed,  directly or
indirectly, at development of the private sector.

56.   Structural adjustment programmes  strongly emphasize privatization  of
various parts of developing countries' economies.   In the financial  sector
this  is reflected  in an  increased  role for  commercial banks  and  other
privately  owned  financial institutions.    Consequently,  promotion  of  a
variety of financial intermediaries, including those  in formal and informal
sectors,  is  one  of  the  main  aspects  of  FAO  work  in  rural  finance
development.     To   ensure  the  viability  and   sustainability  of  such
institutions,  FAO encourages  the adoption  of realistic  rates of interest
and  to make  mobilization  of savings  a  central  and  key part  of  their
strategy and operations.   To that end, the FAO Micro-Banking System, a low-
cost banking  automation software  carried out through  the private  sector,
ensures local interest and support.

57.   Through  its  collaboration  with  the  regional  agricultural  credit
associations,  FAO   encourages  financial  institutions   to  revise  their
approaches  and restructure their  operations to better serve private sector
enterprises and  to  enable  them  to  act  as contacts  for  new,  emerging
grassroots' financial intermediaries at the national level.

World Bank

58.   The  World Bank  is  becoming  increasingly involved  in micro-finance
operations and  is helping to improve  the legal  and regulatory environment
for  microenterprises and  in advising  on financial  sector policy  reforms
that support  the development of micro-finance  institutions.   The Bank has
been instrumental  in  establishing  the Consultative  Group to  Assist  the
Poor, committing $30 million to the fund, conditional  on the release of $70
million  by   other  donors.    The   fund  will   invest  in  micro-finance
institutions that deliver financial services to the  poor.  A major  purpose
is  to learn and disseminate  best practice and to  mainstream best practice
in micro-finance in the Bank's operations.

59.    The  Bank's work  on  SMEs  is  slowly  but  steadily reappearing  in
financial   sector   operations  and   private  sector   development  loans,
especially  in eastern  Europe and  countries  of  the former  Soviet Union,
where  SMEs are  critical  to  successful  economic transitions  and  stable
democracies.   The Bank's systemic  work on financial sector policies and on
the  legal and  regulatory environment  is increasingly  focusing on  issues
that affect SME development  and growth.  The  Bank also is  assessing other
financial  mechanisms, such as  venture capital  and leasing, and innovative
and cost-effective technical  assistance mechanisms, such as small  business
networks.

60.   In addition, IFC  is exploring ways  in which  it can assist financial
intermediaries by investing in  an equity fund that  will in turn  invest in
profitable micro-finance institutions in Latin America  and in Africa.   IFC
has created other targeted facilities, such  as the Africa Enterprise  Fund,
which makes loans of between $100,000 and $1  million for small and  medium-
size projects.   The  African Enterprise  Fund approvals  amounted to  $18.1
million for 33 projects  in financial year 1994 and will reach an  estimated
$19.3  million for 35  projects in  1995.  The Board  has already approved a
third  tranche  of $100  million  to cover  an  expansion  of  the programme
through financial year 1998.

61.   Assisting private sector development  depends on  the financial sector
for capital-working capital,  long-term finance, and equity.  Private sector
development must  also  rely on  the  financial  sector for  discipline  and
efficient payment services.  Reflecting those  imperatives, there has been a
sharp  increase  in the  scale of  the  Bank's operations  in the  financial
sector, partly in response to the needs of  the countries with economies  in
transition.  The number  of operations has  grown from 20 in financial  year
1993  ($1.1  billion) to  an  estimated  34  in  financial  year 1995  ($2.6
billion).   More than  half of  these operations  have been  in Eastern  and
Central  Europe.   More  significant  than the  rise in  scale has  been the
steady increase in the complexity of the operations.

62.   A few  years ago,  the  typical financial  sector operation  addressed
problems in  sector policy, such as  interest rate and  credit policy.   The
issues  now are  much more  institutional, such  as the  need to  strengthen
banking  supervision and  prudential regulation.   A few years  ago loans to
the banking  sector  focused  on  recapitalizing  troubled  banks,  but  now
banking operations place  more emphasis on restructuring banking assets  and
liabilities, establishing  incentives to ensure  that improvements last  and
improving the financial condition of public  sector banks.  Recently,  there
has been a  further quantum increase in  the complexity of financial  sector
operations as the Bank  has helped respond to financial crises in Mexico and
Argentina and is facing  the possibility of similar crises in other emerging
markets.    In  response  to  those  crises,  the  Bank  has helped  develop
mechanisms  for liquidity  support,  set  up processes  for determining  the
solvency of banks and designed interventions to deal with insolvent banks.

63.  Several  factors have led  to this increase  in the  complexity of  the
Bank's financial  operations.   In  the  banking sector,  some of  the  most
important  work has  been in  the  countries  with economies  in transition,
where  mono-banking  and rudimentary  financial  systems  were  expected  to
handle  the  extremely  difficult  tasks  of  enterprise  restructuring  and
shifting  incentives.     Also  increasing  the  complexity  of  the  Bank's
financial operations has been  its entry into new  kinds of financial sector
operations to strengthen payments systems and  develop capital markets.  The
Bank has provided loans and technical  assistance to help modernize  payment
systems to  reduce delays and  risks inherent in  transferring funds and  to
link  those  systems to  the parallel  ones  used in  clearing and  settling
securities transactions.   In addition  to an ongoing  project in China  and
technical advisory  work  in the  Russian  Federation,  projects are  in  an
advanced stage of preparation in Mauritius and Viet Nam.

International Fund for Agricultural Development

64.  For the  purpose of financial services delivery, IFAD mobilizes private
savings to  supply  credit on  a  sustainable  basis, thereby  reducing  the
dependence on  refinancing  from  public sources.   The  IFAD  savings-first
approach strengthens  the private character  of the  resources available for
investment, both at the level  of the saving enterprise and at the level  of
the  institution mobilizing  the savings.   Further,  smallholder access  to
capital  and  financial  services  (credit)  allows  the  privatization   of
investments.  In addition to adopting such  an approach to financial service
delivery,  IFAD  places the  necessary  emphasis  on  the  deepening of  the
financial system  through a gradual integration  of the  formal and informal
commercial  and public  financial institutions.   This approach  deepens the
private character of the financial service sector.


B.  Design and implementation of privatization policies

Department  for   Development  Support  and   Management  Services  of   the
Secretariat

65.  The Department has developed  some general guidelines relating  methods
and  practices of  privatization,  which include,  among others,  the public
offering  of  shares,  private  placement,  management/employee  buy-out and

liquidations. Emphasis was made  on the choice of methods in accordance with
each country's socio-economic  environment and  its choice of methods  could
vary over  the time in  accordance with  changing socio-economic conditions.
The  Department also  explores  other modalities  of  reforming  State-owned
enterprises  that cannot  be privatized  in the immediate  future.   Many of
these are large  and inefficient,  but can not  be discontinued because  the
social  and  political  consequence   are  unacceptable.     One  option  is
commercialization  of  State-owned  enterprises  through  such  measures  as
hardening their  budget and improving their  financial performance.   In the
case  of  China,  under  the  framework   of  a  socialist  market  economy,
corporatization of State-owned  enterprises has  been adopted as a  national
policy in that ownership  and management are  separated.  The public  entity
owns the ownership  and the manager  is accountable  for the management  and
operation.   Also social goals  that were previously  part of  objectives in
State-owned  enterprises  are  separated  from  commercial  goals  and   are
explicitly financed by the Government.

66.  The Department also emphasizes policy measures  to be taken to  protect
the  public interest  after privatization.  Regulation  of business activity
by Governments is to prevent from  unwanted price increases by  unrestrained
monopoly  sectors, to maintain  quality standards  and to  make available of
services  in  remote  areas.   The  same  consideration  also apply  to  the
protection of investors, the environment and employees.

Economic and Social Commission for Asia and the Pacific

67.   With respect  to private sector development,  ESCAP has emphasized the
leading role  of the private sector  in overall  and industrial development.
ESCAP  has  therefore provided  extensive  technical  assistance  under  its
regular  budget  as  well  as  through  a  number  of  extrabudgetary funded
projects to  various  countries  in the  region  with  the  general  aim  of
enhancing regional  cooperation in private  sector development.   Particular
attention  has  been  paid  to  least  developed,  land-locked,  and  island
developing economies  and to  countries with  economies in  transition.   In
most of those projects, directly or  indirectly, private sector  development
has been  an essential aspect  and aim.   In its  private sector development
activities, ESCAP has  stressed the importance of privatization,  technology
transfer,  foreign  investment,  small-   and  medium-scale  industries  and
enterprises, and  skill development of  entrepreneurs, in particular  women.
ESCAP  has  also  explored   ways  to  help   Governments  efficiently   and
effectively formulate  and implement privatization  programmes taking legal,
financial and  social factors into account  and drawing  useful lessons from
successful privatization in the region.

United Nations Development Programme

68.   In Peru, UNDP has assisted  the Government in establishing a legal and
institutional  framework  to  support  the  privatization  process.     This
includes regulations  to promote and  protect private investment;  standards
for   determining  charges   and  tariffs   for  telecommunications,  water,
electricity and transportation;  salary incentives for personnel  reduction;
and guidelines on natural resource conservation.   A programme component for
displaced workers has created more than 80 small and micro-enterprises.

69.   In Argentina, the  privatization process has led  to the privatization
of  a  majority  of  public  enterprises  between  1989  and  1993  and  the
Government  has  requested UNDP  support  to  design and  implement policies
aimed  at completing  the  transfer of  SOEs  to  the  private sector  under
transparent  rules.   UNDP has  been asked  to assist  in the  privatization
process of non-core  units of YPF,  the oil  and gas  company privatized  in
1993.

70.  The Government of Bolivia chose  a capitalization strategy whereby  the
objective is to entice foreign investors  to make investments in enterprises
in  return for  50  per cent  ownership, the  remaining  50 per  cent  being
distributed  to the  Bolivian population  as  pension contributions  held in

private  pension  funds. The  Government requested  UNDP  assistance in  the
establishment of a  SOEs restructuring unit;  in reinforcement of management
capacities  by  introducing performance  contracts;  and  in  evaluation  of
viability and book value of public enterprises.

71.   In Viet Nam,   UNDP  has been involved in  supporting the Government's
economic  reform efforts.   The  joint UNDP/World  Bank project  in Viet Nam
started in 1992 and its objective is to assist the Government in  developing
the  policies, the  legal and  regulatory framework,  and the  institutional
development  and reforms  needed to  support State enterprise  reform, while
assisting in  the implementation of some  pilot State  enterprise reform and
divestiture activities.

Food and Agriculture Organization of the United Nations

72.   The promotion  of privatization,  demonopolization and deregulation of
economic activities  and  improvement of  efficiency  in  the management  of
public institutions  have been important components  of FAO policy  advisory
services  in  African  countries.    Policy  advisory  assistance  has  been
provided to a number of sub-Saharan African countries.   The United Republic
of Tanzania, Uganda, Namibia, Malawi,  Burkina Faso, Ethiopia,  Kenya, Togo,
the Niger,  the  central African  Republic,  and  Cote d'Ivoire  were  among
countries  that received assistance  in 1994.   For example,  in the Central
African Republic  and the Niger, studies  were undertaken  on private sector
development and  in most of the  other countries  assistance involved policy
analysis and  advisory service, the  focal point of  which was promotion  of
privatization,  demonopolization  and  improvement of  efficiency  of public
institutions.

73.   In Bangladesh,  the agricultural  sector review  and policy assistance
for  the   transformation  to   irrigated  agriculture   has  reviewed   the
performance of the crop sector in the context of ongoing liberalization  and
privatization  policies and  advised  the Government  on  specific  sectoral
policy and  institutional  reforms  and  areas of  investment  and  in-depth
studies  to   accelerate  further  the   agricultural  growth  and   poverty
alleviation with greater private sector participation.

74.  A policy assistance project has been designed to advise the  Government
of Bulgaria  on  a  strategy to  enable the  livestock/meat  industry to  be
internationally  competitive  and  to  serve  the  domestic  market  and  to
increase the  export share  in meat  and meat  products.   The project  will
provide  advice on the role  of government, the institutions  needed and the
regulatory framework necessary for  a privatized livestock sector to succeed
domestically and  in international  competition.   Another project  provides
technical  assistance to  the Government  of  Albania  to set  priorities in
implementing  a  privatization  strategy  in  the  agriculture  and  related
sectors.

World Bank

75.   The  World Bank  group  supports  private sector  development  through
project  financing and  wholesale financing  in  three  critical ways:   (a)
improving  the business  environment; (b)  promoting enterprise  reform  and
privatization; and (c) assisting financial sector  reform (see above).   The
Bank, using  its capability to provide  advice through both lending and non-
lending services, provides about  85 per cent  of the Bank group's  systemic
private sector  development work.  IFC,  able to  operate without government
guarantees, focuses  more on project  financing, along with  MIGA and,  to a
lesser extent, the  Bank's emerging guarantee business.   Both the Bank  and
IFC provide wholesale financing.

76.   While approaches to  reform vary widely  across countries at different
stages of  development,  the group's  work  in  the  area of  improving  the
business  environment covers  four areas:  reducing  barriers to competition
and  streamlining  regulation, strengthening  legal  and  judicial  systems,
supporting  entrepreneurial  development  and  promoting global  integration

through  foreign direct  investment and  expansion  of  trade.   The group's
analytical work on the business environment  has been sharpened through  the
private sector assessments  it initiated in  1991.   To date  about 35  have
been  completed.    These  joint  efforts  of  the  Bank  and  IFC  identify
constraints to  private  sector development  and  produce  a "road  map"  to
overcome them.

77.  The Bank supports and advocates  privatization in those instances where
it  is clear that private  owners would more efficiently  utilize the assets
and safeguard their  continuing productivity.  Therefore, enterprise  reform
and privatization  remain a central focus of World Bank activities and major
initiatives are under  way that  support efficient,  timely and  transparent
divestitures.  The specific targets for  divestiture range from the  sale of
small businesses  and shops  to medium-sized  and large  enterprises in  the
tradable sector, as well as public utilities.

78.  More  than 20  Bank/IDA lending operations  approved in financial  year
1994 featured privatization as a key  component of more general  initiatives
aimed  at  private  sector  development  and  as  many  projects  are  under
development  over the past six  years.  For example,  in Bolivia, adjustment
and technical assistance operations are  helping the Government to privatize
six major sectors  (telecommunications, electricity, oil and gas,  railways,
aviation  and  mining)   through  capitalization,  a  unique  process   that
effectively increases  the capital  base of  the companies being  privatized
while funding pension accounts for all adult Bolivians.

79.   The World Bank's post-privatization  assistance work, particularly  in
countries  with  economies  in  transition  and  in  Latin  America  and the
Caribbean,   is   articulating   programmes   supporting   the  growth   and
sustainability  of newly  privatized enterprises.    The Bank  is developing
models for  post-privatization assistance based on  its work  in the Russian
Federation.   It is  exploring approaches  to developing  equity and venture
capital  funds   (in  Belarus,   for  example)  and  other   capital  market
mechanisms, especially in the  transition economies.  In Mexico, the Bank is
working   to  promote  greater   participation  by   new  entrants   in  the
telecommunication sector in order to increase competition within an  already
privatized industry.

United Nations Industrial Development Organization

80.     UNIDO  technical  assistance   for  privatization,  which   includes
appropriate  demonopolization  and  administrative deregulation  as integral
components,  consists  of both  comprehensive  and  specific  programmes  to
assist  in  privatization.   Although  assistance  in  general is  provided,
industrial privatization activities are particularly emphasized.  UNIDO  has
assisted Governments  in (a)  privatization programme  design and  strategy;
(b)   formulation   of  privatization   policies,   such   as  privatization
modalities, selection  criteria, social safety  net design, and  competition
policy;  (c)  design  of  an  organizational  framework  for  privatization,
including  policies  and  procedures  for  administering privatization;  (d)
participation in individual privatization transactions, as primary  advisor,
or as technical advisor on issues such  as valuation, selection of  external
advisors  and sales  strategy; and  (e)  assisting  in the  restructuring of
enterprises to  make them attractive for  privatization, by addressing  both
short-term   survival   strategies   and   longer-term   business   planning
activities.

81.    As  the  United  Nations   agency  responsible  for  coordination  of
industrial  development  activities, UNIDO  has  special  expertise  in  the
privatization of specific industrial sectors, and can provide  technological
and economic input into  an enterprise privatization  analysis and strategy.
Technical assistance  is provided in three  ways:   (a) technical assistance
projects;  (b) technical  workshops,  seminars and  conferences  that  UNIDO
organizes  or  participates   in;  and  (c)  publications  and   information
networks.

C.  Creation of enabling environments

1.  Establishment and growth of small and medium-size enterprises

United Nations Development Programme

82.   In the  Asia and  Pacific region,  a number  of  programmes are  under
implementation  that focus  essentially on  SME development  and  promotion,
particularly in rural  areas.  There  are projects  in which  UNDP has  been
involved  in  cooperation  with  one  or  more  United  Nations  specialized
agencies, notably  ILO and  UNIDO.  These  programmes are linked  to broader
multi-disciplinary poverty alleviation  and eradication programmes.  A  case
in point is the UNDP/ILO Employment  Generation Programme in Cambodia.  This
programme  consists  of labour-based  infrastructure  rehabilitation,  small
enterprise development and vocational training.   It is closely linked  with
the  UNDP flagship  programme  in  Cambodia, the  Cambodia Resettlement  and
Reintegration Programme.   The employment -generation programme has  already
achieved  some impressive results with  some 1,500 persons  (of which 60 per
cent are women) having  been trained in small  business skills, of whom over
800 persons have started or expanded  small-scale enterprises.  In addition,
over $500,000 in credits  have been made available  with a recovery  rate of
almost 100 per cent.

International Labour Organization

83.  ILO has  been involved in joint  activities with UNIDO in  the form  of
joint implementation of  technical assistance projects (for example, in  the
South  Pacific)  and  jointly  executed  missions   in  the  area  of  small
enterprise development.  A recent cluster  of ILO small enterprise promotion
pilot projects in  Indonesia included a component  to assist in  mapping and
analysing current policies and regulations from the  perspective of creating
an  environment   conducive  to   growth  of   entrepreneurship  and   small
enterprises.   An  ongoing project  in the  United Republic  of Tanzania  is
providing similar help to the Government  through assistance to and in-depth
analysis of  the  policy  and  regulatory  environment  particularly  as  it
applies to micro-enterprise in the informal sector.


2.  Support of local entrepreneurs

Department  for   Development  Support  and   Management  Services  of   the
Secretariat

84.   Support of  local entrepreneurs has  been provided to  nine countries,
Argentina, Brazil, Chile,  Ethiopia, Ghana, Nigeria, Uruguay, Venezuela  and
Zimbabwe through the  Entrepreneurship and Small and Medium-Size  Enterprise
Development  Programme.     That  Programme   is  a  multi-stage   technical
cooperation  programme   implemented   by  the   Department  that   promotes
entrepreneurship and assists in the establishment  and expansion of SMEs  in
developing countries and countries with economies in transition.

Economic and Social Commission for Western Asia

85.   In order  to  provide SMEs  with  a  support system,  ESCWA  currently
assists countries  in the region with  the establishment  of "technology and
business  incubators".    These  business incubators  provide  a  variety of
counselling  and  support  services  to  selected  start-up  or  early stage
businesses.   Some clients  are provided  with working  space, on affordable
terms, within the  incubator, with defined entry  and exit criteria for  the
tenants, while others will be serviced in their own locations.

86.  In 1995, ESCWA,  in cooperation with UNDP,  implemented the preparatory
phase for the establishment of a technology  business incubator in both  the
West  Bank city  of  Nablus (Al-Najah  University) and  Gaza.    The project
assists in creating  entrepreneurial businesses; linking the private  sector
with universities and research laboratories;  providing access to  trade and

technology   information    and    seed    capital    sources;    developing
management/marketing   skills;  mobilizing   the  expertise,   capital   and
commitment of  Palestinian expatriates;  and generating  employment for  the
more skilled  Palestinian youth.   A  technical assistance  project for  the
establishment  of  a  technology  business  incubator  in  the  Syrian  Arab
Republic,  aims  at  stimulating technological  innovation and  aids  in the
commercializing scientific research results.

87.   ESCWA, in cooperation  with the  United Nations  Development Fund  for
Women, is assisting the Business and Women Professional Club in Jordan  with
the  establishment  of a  business  incubator  that  is  designed for  women
entrepreneurs. A similar activity  is being undertaken in Lebanon.  In order
to  assist  entrepreneurs  in  overcoming  the  difficulties  of  access  to
business information, an activity on the sourcing of industrial  information
will be implemented.  This activity will assist  countries of the region  in
building  a  network  between  them  to  facilitate  the  flow  of  business
information.

United Nations Development Programme

88.   In Uruguay, the  UNDP-supported Enterprises  and Technology (EMPRETEC)
project  is  helping   to  develop  exports  of  Uruguayan   high-technology
products.  It enhances entrepreneurs' abilities to use available  technical,
financial  and  commercial   resources  and  structures  by  offering   them
education and  support services.  It  also receives  and sends international
business  delegations,  organizes seminars  and  conferences,  creates links
between companies and research
institutes and maintains contact with other EMPRETEC programmes,  especially
in  Argentina  and   Brazil.    In  1993,  EMPRETEC-Uruguay  introduced  and
developed the  programme  in Venezuela,  and  soon  in Bolivia,  Mexico  and
Paraguay,  as well  as  in  central Europe.   Closely  related is  the UNDP-
supported  project  on "catalytic  entrepreneurship" that  promotes business
partnerships  among  innovative  technology-driven  enterprises to  increase
exports and jobs.

89.   The EMPRETEC  programme was  also established  in  Nigeria and  Ghana,
where it  sets out  to develop  a national  capacity to identify  and select
promising entrepreneurs, train  and assist them  in launching their business
ventures and  establishing linkages  with transnational  corporations.   Its
aim is  to establish a  public-private sector self-financing  infrastructure
to support SMEs.   The  technical advisory  inputs it  draws upon  originate
from  within the  local business  community  and  are delivered  directly to
small and medium-scale entrepreneurs.

90.    UNDP  has  supported  the  application  of the  concept  of  business
development centres  and incubators  to encourage  entrepreneurship and  new
business  development.   In Indonesia,  three centres  are under development
and the Government has endorsed the  concept by identifying national funding
to  support a further 10 facilities.  Similar programmes have been supported
by UNDP-funded missions in Mexico, Brazil, Egypt and Uzbekistan.

91.  The  technology business  incubator, a  concept that  UNDP supports  in
several countries, nurtures SMEs in the start-up phase by  providing a range
of services needed by entrepreneurs to  develop their ideas from  conception
to  commercialization.   In  Nigeria, an  initial three  technology business
incubators are  being set up by  the National  Technology Business Incubator
Foundation.  The one  at Lagos,  built  with  support from  the Lagos  State
Government,  has already begun  operations with  a local  bank offering soft
loans.

92.    In Madagascar,  micro-  and  small  enterprises  employ an  important
segment of the labour and productive capacity in a poor society and  provide
a  vital  link to  modern  enterprises.    However,  these enterprises  face
obstacles such as a lack of access to institutional  credit from banks and a
policy environment that favours large businesses over small ones.  UNDP  has
been  investigating  the  possibility  of  creating  a  centralized   credit

facility  that would provide  credit extension  services and  capital to its
current portfolio of technical assistance projects.   This credit scheme  is
being implemented by the United Nations Capital Development Fund.

93.   In Egypt,  UNDP contributed  to the  enterprise development programme,
one  of the  objectives of  the social  fund for development  established in
1991  to  minimize  the   negative  impacts  of  the  structural  adjustment
programme.    The programme  objectives  include  expanding  existing  small
enterprises to generate income and increase employment opportunities and  to
create new small enterprises.   These objectives are to be achieved  through
developing,   funding  and  delivering   integrated  packages  of  technical
assistance, credit and training.

 VI.  PARTNERSHIP BETWEEN PRIVATE AND PUBLIC ENTITIES

A.  Mechanisms for discussion and consultation

1.  Entrepreneurship

Department for  Economic and Social Information  and Policy  Analysis of the
Secretariat

94.  The Department  (and its predecessors) has for some time been  involved
with issues related to entrepreneurship.   A chapter for the  World Economic
and  Social  Survey 1995  on  enterprises  in  countries  with economies  in
transition deals with  problems of bringing about  a market economy in  such
countries  as   economic  agents   do  not   seem  to   have  responded   to
liberalization  as expected.   A section  on the spread of  policy reform in
the  developing  countries  examines  the  dominant  package  of  adjustment
priorities (stabilization,  liberalization, opening-up and privatization) in
many developing  countries  and compares  "stop  and  go" with  a  sustained
policy.  Other work of  the Department in  this area includes a chapter  for
the  World  Economic  Survey 1992  on entrepreneurship  and  the development
challenges  of  the  1990s,  which  sets  forth  a number  of  key  features
pertaining  to  entrepreneurship  and  its  role  in  bolstering  productive
potential and promoting rapid economic restructuring.

95.  Specific case-studies on entrepreneurship  in the Department include  a
country study of  economic reform and the  development of the private sector
in Viet Nam and one on the ongoing economic reforms in China.

Economic Commission for Europe

96.     The  ECE  1995  SME   Workshop  will  address  the  problems  facing
entrepreneurs who  are located  in countries with  economies in  transition.
For the 1995  annual session a study was  prepared on the  ways and means of
promoting the expansion trade in countries  with economies in transition and
several  round-table  discussions   occurred  on  this  subject.     Special
attention was given to measures to  encourage enterprise development and the
participation  of SMEs  in international  trade.   Another  study  currently
under way  will explore alternative ways  of financing  trade and investment
in  countries with  economies  in  transition and  specifically into  legal,
administrative and technical measures that should  be implemented to support
the operation of newly established businesses in those countries.

97.  Questions of  foreign trade and  business cooperation promotion in  the
ECE region  is an area of  interest in the secretariat.   At  the request of
the Government of the  Republic of Moldova, the  secretariat is preparing  a
workshop on  promoting foreign direct investment  among SMEs.   In addition,
promotion of private sector developments through establishing contacts  with
potential foreign  investors will  be addressed  during the  1995 Investment
Promotion Conference.

Economic and Social Commission for Western Asia

98.    ESCWA  assists  regional  enterprises  in  coping  with  the changing

international  and regional environment.   In  1994 a  workshop on upgrading
entrepreneurial  skills of  managers  under conditions  of rapid  change for
managers  of  firms  in  Jordan  was held  at  Amman.    A field  survey  on
management of change covering  85 enterprises in Jordan was presented.   The
survey assessed the effects of the Gulf crisis and other regional events  on
the operation of Jordanian enterprises and identified the  responses/changes
introduced  by managers of  these firms,  in terms  of products, production,
processes  and  technologies, marketing,  finance  and  human  resources  to
better  cope  with  national,  regional  and  international  political   and
economic events.

99.   ESCWA is  preparing  an expert  group meeting  on entrepreneurial  and
managerial  skills  under conditions  of  change  (Bahrain,  20-23  November
1995). The  meeting will  formulate appropriate policies  and measures  that
enhance entrepreneurial skills  of managers under conditions of  uncertainty
and will assess entrepreneurial capabilities in  coping with the effects  of
changing international and  regional events on  the operation  of individual
firms.

United Nations University

100.   The  UNU Institute  of New  Technologies is  currently undertaking  a
study  on the  evolution  of  high-technology research  institutes  and  new
enterprise organizations  in China.  The  project traces  the initiation and
growth  of   "new  enterprise   organizations",  assesses   their  role   in
commercializing technological know-how, and documents  factors that fostered
or constrained  the success of those  organizations which  were derived from
China's State-sponsored  research and development  institutes.  The  results
of the research  will be published in the form of working papers and journal
articles.    The  effort  follows  on  an  earlier  project  on  politics of
technology policy institutions in China.

United Nations Educational, Scientific and Cultural Organization

101.  In  1993, UNESCO launched the University/Industry/Science  Partnership
Programme  to  promote  university/industry  cooperation  in  particular  in
developing  countries  as well  as  in  eastern and  central  Europe.    The
objectives  of the  programme include  adoption of  engineering education to
industry  needs; continuing engineering  education for practising engineers;
and transfer of research results  from university to industry.   Since local
enterprises in  developing countries,  in particular  SMEs, possess  neither
their own research staff  nor training centres, they  often fail to  keep up
with daily  advancing modern  technology.   Products from  local enterprises
are thus not internationally competitive in  quality or price.  Accordingly,
university industry  cooperation can be a  valuable strategy  in the process
of technology-led industrialization of developing countries.

102.   UNESCO has been  promoting more than  20 international, national  and
regional  conferences  on  the  topic  of  university/industry  cooperation.
UNESCO  conferences  encourage  the  university  engineering  population  to
become more involved in the  issue of national economic development and also
attract  industry  leaders  towards   university/industry  joint   projects.
Furthermore,  UNESCO has promoted  industry- sponsored  UNESCO chairs  to be
established at  engineering universities in developing  countries and to  be
backstopped  by university  twinning arrangements making full  use of North-
South, East-West and South-South cooperation.

 International Atomic Energy Agency

103.   Under the IAEA  Technical Cooperation programmes, particularly within
the framework  of regional  cooperation agreements,  executive seminars  are
organized  where  industrialists  are  kept  informed  about  the   business
opportunities opened  up through  the dissemination of  nuclear science  and
technology, which is seen as helping to further entrepreneurship.

2.  Privatization

Department for  Economic and Social Information  and Policy  Analysis of the
Secretariat

104.  The Department (and its predecessors) has  carried and is carrying out
work  on privatization in a  number of areas,  including on economic reforms
in central  and eastern Europe  and the former Soviet Union.   An example is
the  1992  special issue  of  the  Journal  of  Development Planning,  which
describes the salient features of the  transformation and the prospects  for
development  assistance,  trade,  foreign  direct  investment  and  economic
integration, with special attention being paid  to the impact on  developing
countries.

105.    A recent  analysis  of  integration and  privatization  in  the  oil
industry deals  with  State oil  and  gas  companies throughout  the  world,
against  the  background   of  economic  imperatives  based  upon   improved
profitability  and efficiency.   The  analysis  considers both  the  current
process  of  privatization of  major State  oil  companies, particularly  in
Europe,  Latin  America  and  Asia,  and  the increasing  opportunities  for
exploration and development offered to  transnational oil companies  in many
parts of  the world.   It concludes that both  privatization and integration
are likely to help  the future investment  climate in the international  oil
industry.

Economic Commission for Europe

106.    The  ECE  secretariat  monitors  positive  experiences  as  well  as
obstacles faced  by countries with economies  in transition  in their market
transformations  efforts; takes  note of  developments  in similar  areas in
developed market economies with a view  to analysing relevant successes  and
shortcomings in the ECE region; and  disseminates such information to policy
makers and  business operators  in countries  with economies in  transition.
Additionally,  the   secretariat  monitors  the   privatization  process  in
countries with  economies in transition and  collects data  on the specifics
of privatization  developments in  certain countries and/or  sectors.   Such
information is used in the preparation  of studies and workshops  addressing
requirements  for international  and national  support for  the promotion of
privatization and entrepreneurship in the ECE region.

Economic and Social Commission for Asia and the Pacific

107.   ESCAP has organized workshops  and regional  and subregional seminars
and prepared  a  variety of  background  documents  and studies  on  private
sector  development,   foreign  investment   and  privatization.     Several
workshops  and  meetings have  focused  on  technology transfer  and  skills
development.

United Nations Conference on Trade and Development

108.   In the context of  preparations for the  ninth session  of the United
Nations Conference on Trade  and Development future work in the area of SMEs
falls  in  four  areas:    (a)  the  policy  and  commercial  framework  for
enterprise   development,   with   particular   reference   to   SMEs;   (b)
institutional  support for  SME  development; (c)  promotion  of  inter-firm
linkages  and modernization of  SMEs; and  (d) regional  cooperation for SME
development (as  illustrated by the  Association of  South-East Asia Nations
(ASEAN) Programme  of Action on SME  development). These,  together with the
results  of the  work of the  second session  on the  financing of  SMEs and
technical  cooperation  for  policy  development  supportive  of  SMEs,  can
provide a  basis  for  the  consideration of  policy  initiatives  involving
research  and  technical  cooperation  activities,  at  both  national   and
international levels, to enhance the role of enterprises, particulary  SMEs,
in the development process.

United Nations Industrial Development Organization

109.   Through subcontracting  exchanges, chambers of commerce and industry,
and business development  centres, UNIDO provides  assistance that is useful
in  arranging a  partnership between  public  enterprise and  private sector
firms, and in providing information exchange  that can lead to  transactions
between  public and  private sectors.    For example,  business  development
centres, which  UNIDO establishes  when building  national capabilities  for
private  sector   development  in   countries  with   weak  private   sector
institutional  bases,  match  potential  entrepreneurs  with spin-offs  from
State-owned enterprises  and provide these  enterprises with  subcontractors
from the private sector.


3.  Administrative deregulation

Department for  Economic and Social Information  and Policy  Analysis of the
Secretariat

110.  The Department is  undertaking research and policy analysis related to
deregulation and  privatization of water  services in developed,  developing
and transitional economies.  The work  deals with comparative experiences in
the privatization of water supply,  focusing on private sector participation
in  urban  water  utility  operations  in  industrialized,  developing   and
transitional  countries,  an  important  area  of  intergovernmental  policy
discussions, including those relevant to Habitat  II.  The Department's work
in  this area  is covering,  among  other  things, several  important micro-
economic areas, such as pricing, investment, operational efficiency,  demand
management and economic regulation.

World Bank

111.   In low-income countries, the  central challenge  for policy-makers is
to stimulate  competition and  dismantle onerous  regulations -  regulations
that  increase risk  and  transaction costs  by  as  much  as 30  per  cent.
Actions should  include  eliminating price  controls; abolishing  parastatal
monopolies in production,  distribution and marketing; simplifying  business
entry  and  exit  regulations;  and  eliminating  punitive  tax  rates   and
simplifying tax  structures and administration.   Close to  a third of  Bank
projects contain  such  reforms aimed  at  creating  a more  attractive  yet
competitive business environment.


             4.  Public enterprises through incorporation of private
                 entrepreneurship practices

United Nations Development Programme

112.  It  is apparent that  many SOEs, important  as they are  to local  and
national  economies,  cannot  be  easily  privatized  until  they  have been
restructured.   The Turn-Around Management  project, a  regional effort  for
eastern Europe and the countries of  the Commonwealth of Independent  States
(CIS),  supports  the  change in  business  culture  required by  parastatal
enterprises now working  in a market economy.   The project  employs retired
senior  executives to act as  coaches for the enterprises,  with the support
of specialists as needed.  Over 55 companies in some nine  countries are now
involved.   The UNDP-supported  project is  executed by  EBRD, with  support
from  the  European   Commission  under  the   Poland-Hungary  Aid  for  the
Reconstruction of the Economy (PHARE) programme.

113.   In China, a large  enterprise management  implementation programme is
under  way.  The  $6 million programme supports  China's ongoing efforts for
transformation  and revitalization  of  large  and medium-sized  SOEs.   The
effort is  focused on the eventual  separation of  ownership and management,
which will  be achieved  through the  conversion of  these enterprises  into
joint stock  companies, and the formation  of industry  groups for potential
listing on Chinese and international equity markets.

114.  Another approach  to this task is the larger enterprise transformation
project for trial in Poland, Romania,  Slovakia and Slovenia.   This project
proposes  to  undertake the  organization  of  investment banking  teams who
would generate  lease purchase  agreements between  the national  Government
and foreign corporate partners relating to  specific businesses.  In  return
for providing  modern management, access  to new markets, current technology
and  capital,  the foreign  partner  would  have  the  option of  purchasing
ownership  control in the  local enterprise,  following restructuring,  at a
predetermined price to complete the privatization process.

International Civil Aviation Organization

115.  Experience  gained world wide  indicates that  where airports and  air
navigation services  have been  operated by  autonomous authorities,  almost
all of which have been established  by Governments, their overall  financial
situation and managerial efficiency have generally  tended to improve.  ICAO
believes  that  it  would  be  worthwhile  for  Governments  to  explore the
possibility   of  establishing  autonomous   authorities  to  operate  their
airports where this is in  the best interest  of providers and users.   With
regard  to  air   navigation  services,  the  possibility  of   establishing
autonomous authorities  to operate their  air navigation  services should be
explored, recognizing that, in  some circumstances, a  single authority  may
operate  both airports and  air navigator  services, and  that the authority
may be in the form of an autonomous civil aviation authority.

116.  Many  significant financial advantages may  be achieved by vesting  an
airport authority with  the necessary financial autonomy, including  control
over  the  use of  airport-generated  revenues.    Notably,  it permits  and
encourages airport management  to exercise closer  control over revenues and
costs.  It also offers the possibility of  negotiating loans best suited  to
meeting the  airport's needs. Moreover, it places the airport  in a stronger
position regarding  other financial matters, such  as in  the negotiation of
concession contracts, and in industrial relations.

World Bank

117.   An  important feature  of  the World  Bank group's  recent  financial
assistance  for private sector development  has been the rapid growth of its
support for private participation in  infrastructure and the  related growth
of  the  Bank's  guarantee business.    Standard  IBRD/IDA  investment loans
accounted   for  76   of  91   projects   with  private   participation   in
infrastructure  components  in  1988-1994.   More than  half  the investment
loans  made since 1988  funded public  investments and  legal and regulatory
reforms  designed  to  complement  and  facilitate  private   participation.
Examples of  such projects  include transport sector  operations in  Albania
and Poland that funded maintenance and  new investments while paving the way
for the  privatization of public entities  in trucking  and road maintenance
and  repair,  and  power  transmission  investments  in  the  Philippines to
complement investments in  power generation by independent power  producers.
Close to a  fifth of the investment loans  involved Bank assistance for  the
design  of  franchising  arrangements.    Eleven  of  those  loans  went  to
countries  in Africa,  including  Cote  d'Ivoire, Guinea,  Mali, Rwanda  and
Sierra Leone for the power sector, and Cote d'Ivoire, the Gambia and  Guinea
for the water sector.

118.  In 1988-1994, the Bank also participated in 10 operations that  onlent
funds  to  existing  or  new  private  sector  operators  of  infrastructure
services (power projects in India and  Turkey, water in Argentina, telephony
in the  Philippines and transport sector  projects in  Mexico and Ethiopia).
Two  of the operations in  Jamaica and Pakistan - combined the establishment
of  private sector  funds  with support  for policy  changes that  created a
favourable environment for  private investors.   Although Bank  financing of
such  projects is  expected to  be relatively  limited,  there are  cases in
which the Bank could  play a catalytic role.   For example, Bank  lending to
support government participation in joint ventures  - in gas pipelines,  for
example  -  may present  a  significant  opportunity.    Such lending  could

provide  the necessary assurance for private sector participation under some
circumstances.

119.  IFC private  participation in infrastructure activity took off at  the
beginning of  financial year 1993, with  the creation  of its Infrastructure
Department.  The  number of private participation in  infrastructure-related
transactions doubled  immediately, from 8  in financial  year 1992 to  15 in
financial year  1993 and  doubled again to 30  in financial year 94,  and is
expected to  reach 35  to 40  in financial  year 1995.   The  volume of  IFC
infrastructure  financing rose  more rapidly, increasing by  more than five-
fold, to  nearly $600 million  in financial year 1994.   Mobilization ratios
of more  than 8:1  meant that  the financial  year 1994 programme  supported
well over  $5 billion  of investment.   Of  the Corporation's more  than 100
private participation  infrastructure investments in  33 countries  approved
to  date, most  have  been pioneering  transactions,  involving  significant
demonstration  effects.   They have  helped  to  build support  among policy
makers and  consumers for  further private  participation in  infrastructure
and  have   provided  crucial  experience   for  financiers,  sponsors   and
government regulators in closing complex transactions.

120.   Many of the  transactions have been in Asia  and Latin America, where
government commitment  to private participation  in infrastructure has  been
strongest,  but an  increasing number  of  projects  are being  processed in
Africa, eastern  Europe, central  Asia, the  Middle East  and North  Africa.
Several low-income  countries with limited  access to international  capital
markets  have received support,  including Nepal,  Sri Lanka  and Zaire, and
projects in  Mozambique and Viet  Nam are in  the pipeline.   Although power
and  telecommunication projects have accounted for most of the transactions,
an increasing number of transport projects are being approved.


5.  Military conversion to civilian goods and services

Department  for   Development  Support  and   Management  Services  of   the
Secretariat

121.    One important area of  public/private interaction undertaken by  the
Department  is the military conversion  to civilian goods and services.  The
Department  organized  in  collaboration  with  the  Government  of  China a
Conference in International Cooperation to Promote Conversion from  Military
to  Civilian  Industry,  held at  Hong Kong  from 7  to 11  July 1993.   The
Conference proceedings  were published by the China Association for Peaceful
Use of Military Industrial Technology and the Department in 1994.

122.  The focus of the Conference was three-fold:

  (a)  Providing enabling environment on such subjects  as policy, legal and
regulatory management, and institution-restructuring;

  (b)   Adopting  pragmatic approaches  at the  international, regional  and
country levels  on such issues as entrepreneurial attitude and, cost-benefit
analysis;

  (c)  Providing opportunities for international cooperation.

123.  A  special effort was  made to  bring to  the Conference experts  from
industry, public  and private,  and to  emphasize the  practical issues  and
options of  the  conversion process.    The  subjects covered  included  the
nuclear    industry,    military   machines,    shipbuilding,   electronics,
aeronautical and  aerospace industries,  information, intellectual  property
and international cooperation.

124.  At present, the Department is  providing technical assistance to China
on a two-year project  on military industry conversion.  It aims at training
senior  managers   of  Chinese  military   enterprises  for  conversion   to
production  of  civilian goods  for  the  domestic  and  world markets,  and

facilitating  joint  ventures  by  bringing  together  major  domestic   and
international investors from the private sector  in the most attractive  and
committed Chinese enterprises.


B.  Review and dissemination of experience and lessons learned

1.  Promotion of entrepreneurship

Department  for   Development  Support  and   Management  Services  of   the
Secretariat

125.   The Department's activities implemented  in Latin  America and Africa
under  entrepreneurship and  small and  medium-size enterprises  (ESME)  are
regularly  discussed  and improved  at  local,  regional  and  international
meetings.    For example,  an  international  ESME  conference  was held  in
September  1993   at  Porto   Alegre,  Brazil,   with   the  attendance   of
representatives of the  Department, country officers and entrepreneurs  from
Africa and South America.  More recently,  an ESME meeting gathering country
directors and coordinators in  the Latin American region was held on 20  and
21 October 1994  at Montevideo in  order to  analyse the  situation of  ESME
programmes at  the domestic level and  to coordinate regional activities.  A
further entrepreneurs' meeting  was subsequently conducted in December  1994
at Porto Alegre, Brazil.

126.   The  Department's ESME  has yielded  excellent results  in its  seven
years  of existence.   They include  (a) over  80 entrepreneurship workshops
conducted in nine  countries in  Latin America and  Africa; (b) training  of
more than  2,500 entrepreneurs at the  workshops; (c)  certification of over
30  local  trainers; (d)  establishment  of  some  17  ESME  offices and  12
entrepreneurship associations within the ESME network; and (e)  considerable
success  of at  least  60  per cent  of  entrepreneurs trained  by  ESME  in
starting, expanding or modernizing their business.

127.   In addition,  the Department  diffuses the  experience gained through
the  implementation  of ESME  by  participating  actively  and  coordinating
workshops  and conferences with  other multilateral organizations.  The ESME
programme  contributed  both  as  a sponsoring  organization  and  an active
participant in  a two-day international  workshop on  small and medium-sized
enterprises:  employment,  innovation  and  growth  held  in  June  1995  in
Washington, D.C.   The  workshop was  organized by  OECD and  counts on  the
presence and support of the United  States Small Business Administration and
the World Bank's MIGA.

128.   The Department  for Development  Support and  Management Services has
organized/co-organized   three  interregional  expert  meetings:    (a)  the
interregional  Workshop on  Development of  Small and  Medium Enterprises in
Developing Countries  in Transition, Hanoi,  30 March to  1 April 1994;  (b)
World  Convention of Small and Medium Enterprises - Towards 2000, Beijing, 3
to  5  March  1993;  and  (c)  Symposium  on  Entrepreneurship  and Economic
Development in Asia, New Delhi, 22 to 25 October  1991.  The objectives were
to facilitate  exchanges of  national experience  of promoting  SMEs between
senior government  officials  and international  experts  so  as to  provide
policy guidelines, taking into account each country's unique  socio-economic
environment.    Several  important  constraints  to  SME  development   were
identified  in  the  interregional  meetings.   These  constraints  serve as
useful  references for policy  formulation. They  include lack  of access to
appropriate  technology,  capital,  management  skills  and  updated  market
information.  The Department has also  proposed an international seminar  on
promoting export-oriented SMEs in CIS countries (to be held in Moscow).

Economic and Social Commission for Western Asia

129.    ESCWA   has  recommended  measures  for  improving   entrepreneurial
orientation and for  facilitating the  creation of an enabling  environment,
through  (a)  reducing  administrative   and  bureaucratic  procedures;  (b)

providing   extension  and   advisory  services;   (c)  devising  innovative
financing  techniques; (d)  establishing business  information centres;  (e)
institution-building;  and (f)  training  programmes  for entrepreneurs  and
managers.   ESCWA  is  directed to  assist  institutions of  the  region  in
finding  new and improved techniques  to support and promote the creation of
indigenous  entrepreneurship,  as  well  as  facilitating  the  exchange  of
information and sharing of  experience between concerned institutions in the
region.   ESCWA  assists managers  of  industrial  firms in  upgrading their
entrepreneurial  skills  and coping  with  the  changing  international  and
regional environment.

United Nations Development Programme

130.  In its  efforts to support the  development of entrepreneurship,  UNDP
has   encouraged  the   initiatives  of   two  international   bodies,   the
International  Chamber  of  Commerce  and  the,  Chambers  of  Commerce  and
Industry  of the  Group  of 77.   The  Trade  Information Network,  a  UNDP-
supported project,  is an example of  the Group of 77's  efforts to place  a
programme  that will provide accurate and timely business information within
the South-South market place.  The  proposed Trade Information Network  will
provide,  on  a  daily  basis,  commercial  information  on  actual  trading
opportunities  and  matching national  exporters  and  importers  of  member
countries.  To  meet this objective, the Network  will link up all  national
chambers on-line,  while the regional  centres will host regional databases,
maintained  and updated by  national focal  points and  supplemented by data
from the other  regions.  UNDP is  supporting the establishment of  regional
focal points in Colombia, Cameroon and Pakistan.

International Labour Organization

131.   ILO has created  a number of mechanisms  for disseminating experience
and  lessons learned in  the area  of entrepreneurship  and small enterprise
development.  A global network named INTERMAN has  been set up with  support
from a  range of donors including UNDP.   The objective of the network is to
enhance  management  performance  on  a  world-wide  basis  and   membership
includes  corporations,  educational institutions,  management  associations
and  development  agencies.    Recognition  of  the  growing  importance  of
entrepreneurship  and enterprise creation has  led to the creation of a sub-
network  under  INTERMAN called  the  global  Network  for  Entrepreneurship
Development  (NED).    This   network  assists  members   in  launching   or
strengthening  activities  to  stimulate entrepreneurship  and  creation and
growth  of  the  local  business  sector.    It  identifies,  documents  and
disseminates the most  effective and replicable entrepreneurship development
programmes  and   develops  guidelines  for   introducing  new   activities.
Recently, a  directory of successful  entrepreneurship and small  enterprise
development  programmes,  and  the  major lessons  learned  from  each,  was
published under the NED.

132.   Another  tool  for  disseminating  information  to  small  enterprise
development institutions  and small-scale entrepreneurs  is the ILO  network
INSTEAD, a  technological information system especially designed to meet the
needs  of international  organizations,  government  departments, and  other
clients interested in the latest information  related to technology for  the
small-scale sector.   INSTEAD coverage  has now been  expanded to cover  all
aspects   of  interest  to  enterprise  development  and  INSTEAD  is  being
established in developing countries to great effect.

133.    As  part  of  a  recent  reorganization,   ILO  has  established  14
multidisciplinary  teams around  the world.   Most  of the  teams include  a
specialist  on entrepreneurship  and small  enterprise development  and  are
thus  in a  position  to provide  advisory services  to ILO  constituents in
member countries based on ILO  experience and best practice  from around the
world.

United Nations Industrial Development Organization

134.  In the SME Branch  of UNIDO experiences are analyse and evaluated with
regard  to  some guiding  principles  deemed  important  to  the success  of
technical assistance  in the field  of the SME  development programme.   The
guiding principles  include:  (a)  demand orientation  and flexibility;  (b)
fee-for- services (gradual  cost recovery); (c) dialogue between the  public
and  the  private  sectors; (d)  cooperation  and  coordination with  others
(other  development  agents)  to  avoid  duplication  of  efforts;  and  (e)
exchange of information and experience.

135.    For dissemination  purposes,  studies  in  the  framework of  United
Nations/UNDP technical support  service arrangements have been found  useful
in bringing to the attention of  Governments possible solutions and  lessons
learned  that can  be  taken  into  account  in  the formation  of  national
policies and  strategies for  industrialization.   These studies  implicitly
call  for  coordination of  national  approaches  with  regional  industrial
developments.


2.  Implementation of privatization

Department  for   Development  Support  and   Management  Services  of   the
Secretariat

136.   The Department  co-organized a  conference and  workshop at Stockholm
from 5 to 10  September 1994 on privatization  of public sector  activities,
with  special  reference   to  the  privatization   of  activities   in  the
telecommunications, energy,  health and community services.   Since much  of
the  benefit from privatization arises from the associated restructuring and
competition-inducing reforms, the  term "privatization" included all reforms
that  bring market  forces and  competition  to  bear on  economic decision-
making.

 137.   In Kenya and  Bangladesh, national consensus-building workshops were
organized  by the Department  to bring  together government agencies, public
enterprise  managers, capital  market institutions  and private  sector  and
labour representatives.   Workshops have also  been held  on special aspects
of privatization and public enterprise reform in China and Myanmar.

Economic and Social Commission for Western Asia

138.   Several  ESCWA countries  began implementing  privatization  measures
during  the past  two  years.   In 1995,  most countries  of the  region are
either  taking steps  towards  privatization  or are  assessing the  various
economic and  social impacts of privatization.  Two studies were launched by
ESCWA in  1994 and 1995  to assess  the impact of privatization  on the Gulf
Cooperation Council countries and in the  more diversified economies of  the
region.  During  the biennium 1996-1997, a study  will be undertaken on  the
governance and  institutional aspects as  related to  privatization in ESCWA
countries.    In December  1997,  ESCWA plans  to  conduct an  expert  group
meeting on the  various aspects of privatization in the countries of Western
Asia, also  drawing on  the experiences  of other  developing and  developed
countries outside the region.

United Nations Conference on Trade and Development

139.    Developing  countries  and  African  countries  in  particular  have
expressed interest  in applying the  results of UNCTAD  work in  the area of
privatization.  UNCTAD  has  undertaken  to  disseminate  the  results   and
information  generated   by  the  Ad  Hoc   Working  Group  on   Comparative
Experiences  with  Privatization  through regional  and  national  seminars,
which attracted a  large number  of policy makers  and executives from  both
public and  private enterprises.   The  seminars  provided the  participants
with the opportunity to clarify privatization-related issues, to learn  from
the experiences of  other countries regarding  what has and  has not  worked
and  to  discuss  solutions  to  specific  privatization problems  of  their
respective  countries,  thus  strengthening   their  national  capacity   to

formulate  and  carry out  public sector  reform policies  and privatization
programmes.  Through the Ad  Hoc Working  Group, the  UNCTAD secretariat has
gathered  considerable  experience  and  is  well  placed  to  help national
authorities and to cooperate with other international  organizations in this
field.

United Nations Development Programme

140.  UNDP  has been at the forefront of  devising a project to support  the
Central  and Eastern  European Privatization  Network.    The Network  is an
informal network established  among practitioners throughout the region  and
the  Baltic States  and  is  devised as  a means  whereby  professionals can
exchange  experiences  and  innovations in  a  non-political  setting.   The
Network  has  been  in  existence  for  three  years,  covers  22  countries
(including CIS countries), and  has evolved into a focal point for  dialogue
not  only for the intended group  but for donors as well.  It has become the
only intergovernmental  mechanism dealing  with privatization  for countries
with economies in transition.

World Bank

141.    Governments  and  private  firms  in  Bank  borrower  countries  are
increasingly interested in  evaluating the international competitiveness  of
industries  or  clusters of  industries,  identifying  the  constraints  and
opportunities they face and  devising ways to enhance their competitiveness.
The Bank is facilitating  dialogue between the public and private sectors  -
through   private/public   deliberation   councils   and  jointly   financed
competitiveness  studies - to  reach consensus on appropriate strategies for
increasing  competitiveness.    In  Morocco,  for  example, the  Bank  Group
organized  a seminar  for a  wide  array  of government  officials, industry
association   representatives,   chambers  of   commerce,  parliamentarians,
educators and  the media  on best  practice in  privatization especially  in
infrastructure - and in capital market  development.  Following the seminar,
a committee was set  up and charged with producing measures for accelerating
private-sector-led growth.   Similar  projects are  planned  for Jordan  and
Tunisia.   In many countries,  the Bank is  supporting efforts  to adopt new
information technology  to shorten product  development and market  response
times. In  others, it is supporting  tax and  customs administration reforms
to improve domestic  firms' access  to inputs at  international prices.   In
Kazakhstan, the Bank funded a pilot  project enabling enterprise managers to
learn  through study tours  from the experience  of successful  firms in the
United States and Taiwan Province of China.

142.   In  addition,  the  Foreign  Investment  Advisory  Service,  operated
jointly by  IFC and  IBRD,  has been  helping countries  shape policies  and
institutions  conducive  to foreign  direct  investment  and  MIGA  provides
advice on investment promotion.

143.  Novel  institutional arrangements and recent technology  breakthroughs
that allow the  private sector to participate in  and finance the supply  of
water,   power,   telecommunications   and  other   infrastructure  services
previously considered  the domain  of the  public sector  have provided  new
mechanisms to  meet those critical infrastructure  needs.   Since 1988, more
than  90 Bank/ international development  assistance infrastructure projects
have involved  significant components  to achieve  private participation  in
infrastructure,  including  privatization  of  public  utilities,  sales  of
government-held  shares  in  infrastructure  entities,  lending  to  private
sector  operations and  franchising operations  involving lease  concessions
and management  contracts.  The  past few years  have also seen  spectacular
growth in IFC participation in infrastructure operations.

144.    World  Bank  group  assistance   to  the  private  participation  in
infrastructure  agenda has  involved significant  systemic work  as well  as
such  traditional  instruments  as  adjustment  loans, technical  assistance
operations and investment lending.  Several  new approaches have emerged and
are being  refined in the light of accumulated experience; these include the

innovative  use  of  guarantee  schemes and  funding  designed  to  catalyse
private sector investment.   In Latin America, there has been a tendency  to
use  the full range of instruments with a  particular emphasis on adjustment
lending.  In the other regions, there has  been much less use of  structural
adjustment  operations.  In  all cases, however, much  attention has gone to
designing  and  establishing  the legal  and  regulatory  basis for  private
participation in infrastructure.
  145.  IFC complements its transaction  support to private participation in
infrastructure  by advisory  services,  given  in the  context  of  specific
investment  transactions and  sometimes on  a stand-alone basis.   Recently,
for example,  it has provided advice  on divesting  electricity companies in
Peru  and  Trinidad  and   Tobago,  and  it  is  giving  ongoing  advice  on
privatization in  several infrastructure  sectors in  Haiti.   IFC has  also
supported  several funds  aimed  at promoting  institutional  investment  in
infrastructure, including three  power funds (targeting Latin America,  Asia
and  the  entire  developing  world)  and  two  telecommunications funds  to
mobilize equity  and debt  in central  and eastern  Europe.   MIGA has  also
actively  supported foreign  investments in  infrastructure. A  total of  12
guarantees  were issued  in financial  year  1995  to investors  for private
power and toll-road projects.


             3.  Application of private entrepreneurship practices in
                 public enterprises

Department  for   Development  Support  and   Management  Services  of   the
Secretariat

146.   The activities  fostered  and  implemented by  ESME involve  a  close
partnership between the private and  public sectors since  their fundamental
objective  is  to  support  Governments'  efforts  to  stimulate  employment
creation,   investment,   technology  transfer   and  exports   through  the
development of  SMEs.  Effective,  active coalitions of public institutions,
private business associations and the banking  sector have thus been  formed
under ESME, growing into self-sustaining structures.


VII.  CONCLUDING OBSERVATIONS

147.  In view  of the wide-ranging involvement  of the United Nations system
in  the  promotion of  entrepreneurship  and  privatization,  the  following
recommendations would  seem pertinent so that Governments can take advantage
of the growing expertise in this important area.

148.    In  general, the  United  Nations  system  should  be  able to  help
Governments define  the role  and scope  of  the public,  mixed and  private
sectors  and  to  suggest  options  in  the  modalities  of  interaction  in
accordance with the realities  in each country, especially at the local  and
municipal levels, by  means of specific technical assistance,  dissemination
and  exchange of  country experiences  and  research  on the  conditions for
successful  replication.    The United  Nations can  assist  Governments and
international agencies  in addressing  social  needs through  public/private
interactions and act as  a facilitator in the sensitization to needs and  in
stimulating the flow of resources.

149.  With regard  to privatization, Governments  are encouraged to use  the
sectoral and  cross-sectoral agencies of  the United  Nations for evaluating
and  assessing  their  privatization  policies  and  programmes.    Ex  ante
evaluations  should seek to  establish the  appropriate place  and timing of
privatization  in  structural adjustment  programmes and  the administrative
capacity requirements  for successful implementation.   Ex post  evaluations
should be obtained in order  to feed back the findings to the management  of
the ongoing  programme and ensure that  the privatization  dividend is fully
realized by the general public.

150.   With regard to the  commercialization of SOEs, Governments should pay

greater  attention  to  the  possibilities  of  performance  improvement  in
parastatals  not  scheduled  for  sale or  liquidation,  and  seek technical
assistance  as necessary  from the  international community,  including  the
United Nations system.

151.  With regard to regulatory policies, such  policies should be stable as
frequent changes add to  investment risk and deter new investment.  As there
are many issues that arise in the  organization and processes of regulation,
international   expertise  should   be  consulted   through  bilateral   and
multilateral donors and the United Nations system.

152.  With regard  to private sector development,  the United Nations system
should  assist Governments in  the creation  of an  enabling environment for
SME start-ups and expansion by special  programmes targeted at this  sector.
These  may  include  technical  assistance  in  the  choice  of  technology,
modernization and  quality control, business  incubators, industrial  parks,
export development  zones and  collaboration with  transnational enterprises
in joint ventures, subcontracting arrangements, licensing and franchising.

153.  With  regard to military  conversion to civilian  goods and  services,
the  United Nations  should continue  and  expand  its assistance  to member
countries  concerned   by  collecting  and   analysing  data,  managing   an
information  clearing house,  developing enterprise  conversion models  from
case-studies of successes  and failures, and providing technical  assistance
support as required.

154.   In  conclusion  and  in  view  of  the  above  and  General  Assembly
resolution 48/180, the  United Nations system should  play a leading role in
the provision  of  technical  assistance and  financial support  to  promote
entrepreneurship and privatization.
/...  A/50/417
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A/50/417
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ANNEX I

List of contributing United Nations organizations


Department for  Economic and Social Information  and Policy  Analysis of the
Secretariat

Department  for   Development  Support  and   Management  Services  of   the
Secretariat

Economic Commission for Europe (ECE)

Economic Commission for Latin America and the Caribbean (ECLAC)

Economic and Social Commission for Asia and the Pacific (ESCAP)

Economic and Social Commission for Western Asia (ESCWA)

United Nations Conference on Trade and Development (UNCTAD)

United Nations Development Programme (UNDP)

United Nations Population Fund (UNFPA)

United Nations University (UNU)

United Nations Institute for Training and Research (UNITAR)

International Labour Organization (ILO)

Food and Agriculture Organization of the United Nations (FAO)

United Nations Educational, Scientific and Cultural Organization (UNESCO)

International Civil Aviation Organization (ICAO)

World Bank

Universal Postal Union (UPU)

International Telecommunication Union (ITU)

International Fund for Agricultural Development (IFAD)

United Nations Industrial Development Organization (UNIDO)

International Atomic Energy Agency (IAEA)

ANNEX II

            List of publications by United Nations organizations on
            entrepreneurship, privatization, demonopolization and
administrative deregulation


Department for  Economic and Social Information  and Policy  Analysis of the
Secretariat

"The New  Policy Focus  on Enterprises  in Transition  Economies", in  World
Economic and Social Survey 1995 United Nations, (E/1995/50).

Market-based  Mechanisms  for  Controlling  Global Emissions  of  Greenhouse
Gases:  Possible  Reference  Bases  for  International  Agreements,   DESIPA
Working Paper no. 4, United Nations, New York, 1994.

Economic  Reform  and the  Development of  the Private  Sector in  Viet Nam,
DESIPA Working Paper, no. 2, United Nations, New York, 1994.

"Integration and privatization in the oil  industry", in World Economic  and
Social Survey 1994 (United Nations publication, Sales No. E.94.II.C.1).

"Economic reform and the development of the non-State sector:  a case  study
of China", in World Economic Survey  1993 (United Nations publication, Sales
No. E.93.II.C.1).

"Entrepreneurship and the  development challenges  of the  1990s", in  World
Economic Survey 1992 (United Nations publication, Sales No. E.92.II.C.1).

"The  Revolutions   in  the  East  and  their  Implications  for  Developing
Countries", in Journal of Development Planning,  Special Issue, No. 23, 1992
(United Nations publication, Sales No. E.92.II.A.22).

"Implications of the transformations in Eastern  Europe and the Soviet Union
for economic  relations  among East,  West  and  South", in  World  Economic
Survey 1991, United  Nations, New  York, 1991  (United Nations  publication,
Sales No. E.91.II.C.1).

"The  economics  of  property  rights  and  privatization  in   transitional
economies",  in  Supplement  to  World  Economic  Survey  1990-1991,  United
Nations,   New  York,   1992   (United  Nations   publication,   Sales   No.
E.92.II.C.2).

"Economic  Reforms in Centrally  Planned Economies  and their  Impact on the
Global Economy", in Journal of Development  Planning, Special Issue, No. 20,

1990 (United Nations publication, Sales No. E.90.II.A.9).

"Entrepreneurship  and  Economic  Development",  in  Journal  of Development
Planning, Special  Issue, No. 18,  1988 (United  Nations publication,  Sales
No. E.88.II.A.13).

 Department  for  Development   Support  and  Management  Services  of   the
Secretariat

Entrepreneurial Development through Small Industry, a TSS1 report.

Enterprise Management in Transitional Economies (forthcoming).

Performance Contracting for Public Enterprises (United Nations  publication,
Sales No. E.95.II.H.2).

Interregional  Workshop on Development  of Small  and Medium  Enterprises in
Developing Countries  in Transition (papers and  proceedings of the  meeting
held at Hanoi from 30 March to 1 April 1994) (forthcoming).

Methods and Practices of Privatization (INT-92-R82) 1993.

Performance Contracting  for Public  Enterprises, a review  and analysis  of
global experience to date (forthcoming).

Privatization of Public Sector Activities, the  proceedings of the Stockholm
Conference and Workshop, with a focus on telecommunications, energy,  health
and community service, September 1994 (forthcoming).

Restructuring  the Military  Industry:   Conversion  for Development  of the
Civilian Economy (1993).  An expert meeting organized by  the Department for
Development Support and Management Services, and  a publication by the China
Association  for  Peaceful  Use of  Military Industrial  Technology  and the
Department.

Economic Commission for Europe

Published  in the annual Economic  Survey of Europe, the ECE secretariat has
addressed a  range of issues related  to privatization  and restructuring in
transitional economies.   Property rights  and privatization  appeared in  a
special chapter  in  the 1992  Survey;  industrial  policy and  progress  in
privatization in the  1993 Survey; restructuring of State-owned  enterprises
in the 1994 Survey;  and private sector development  in the Baltic States in
the 1995 Survey.

Economic Commission for Latin America and the Caribbean

Reports on small/medium-sized firms

Modernity and the SMI in Latin America (available in Spanish and English).

Small and Medium Enterprises.  Some Aspects (available in Spanish).

The Financing of Small and Medium Industry (available in Spanish).

Support for industrial associations  and their new  tasks in the context  of
an open  economy.      An 18-minute  video and  a written  report (in  final
editing)  on the diffusion  in Latin  America and the Caribbean  of the main
proposals included in the video (available in Spanish).

 Studies on privatization

The Restructuring of Public-Sector Enterprises:   The Case of Latin American
and Caribbean Ports (available in Spanish and English).

Privatization in  Argentina:  Micro-  and Macro-Economic Impacts  (available

in Spanish).

The  Privatization   of  Telecommunications   in  Argentina   (available  in
Spanish).

The Privatization of Aerolineas Argentinas (available in Spanish).

The  Privatization  and  Deregulation  of  the   Oil  Sector  in   Argentina
(available in Spanish).

Privatization, Trade Opening Up and Industrial  Concentration:  The Case  of
the Metallurgical Sector in Argentina (available in Spanish).

The  Crisis  of  the Public  Enterprise,  Privatization  and  Social  Equity
(available in Spanish).

The Divestiture of TELMEX (available only in English).

Divestiture  and  Deregulation of  Public  Enterprises:   The  Mexican  Case
(available in English).

Privatization  in  Latin  America:    From  Myth  to  Reality  (available in
English).

The Privatization of MEXICANA (CMA) (available in English).

Economic and Social Commission for Asia and the Pacific

Private sector development and privatization

Industrial  Restructuring  in  Asia  and  the   Pacific,  March  1991.     A
comprehensive   study   containing  several   chapters  on   private  sector
development and related topics.

Improving Managerial and Technical Efficiencies of Public Sector  Industries
and Public  Enterprises, including Privatization, in  Asia and the  Pacific,
1992.

Regional,  subregional  and country  studies  from  the regional  seminar on
Promoting International Competitiveness and  Efficient Resource  Utilization
in Manufacturing in Asia  and the Pacific, from  17 to 21  December 1991  in
Beijing.

Background papers  from the  regional seminar  on  Investment Promotion  and
Enhancement of the Role of  the Private Sector in Asia and the Pacific, from
26 to 30 January 1993 at Dhaka.

Background papers  from the Regional  Symposium on Privatization,  organized
in cooperation  with  UNIDO,  UNCTAD,  ILO and  ADB  from  30 January  to  2
February 1994 at Karachi.
  Background  papers  from   the  subregional  seminar  on  Private   Sector
Development and  Privatization  for  South-Asia,  to be  held  at  Kathmandu
(forthcoming later in 1995).

Investment promotion

Foreign Investment and Industrial Restructuring, 1992.

Preparation of a comprehensive study on Promoting Intra- and  Inter-Regional
Investment Flows in Asia and the Pacific, 1994.

Technology transfer

Promoting  Diversified  Skill Development  for Women  in Industry,  study on
this subject prepared in  cooperation with ILO in two volumes, published  in
1993.

Small and medium-scale enterprise development

Study on Importance of Promoting Small  and Medium-Sized Enterprises in Asia
and the Pacific, 1993.

Annual Small and Medium Scale Industry Bulletin.

Economic and Social Commission for Western Asia

Impact  of privatization on  the Gulf  Cooperation Council  countries and in
the   more  diversified   economies  of   the  region,   two  studies,  1995
(forthcoming).

Governance and  institutional aspects as related  to privatization in  ESCWA
countries,  a   study  to   be  conducted  during  the   biennium  1996-1997
(forthcoming).

United Nations Conference on Trade and Development

Report  of  the  Ad  Hoc  Working  Group  on  Comparative  Experiences  with
Privatization on its first session, United  Nations Conference on Trade  and
Development,  Geneva,  30  November to  4  December  1992  (TD/B/39(2)/8 and
TD/B/WG.3/5).

Report  of  the  Ad  Hoc  Working  Group  on  Comparative  Experiences  with
Privatization on its second session, United  Nations Conference on Trade and
Development, Geneva, 7 to 11 June 1993 (TD/B/40(1)/11 and TD/B/WG.3/9).

Report  of  the  Ad  Hoc  Working  Group  on  Comparative  Experiences  with
Privatization on its third session, United  Nations Conference on Trade  and
Development,  Geneva,  29  November to  3  December  1993  (TD/B/40(2)/5 and
TD/B/WG.3/13).

Report  of  the  Ad  Hoc  Working  Group  on  Comparative  Experiences  with
Privatization on its fourth session, United  Nations Conference on Trade and
Development, Geneva, 5 to 8 April 1994 (TD/B/40(2)/20 and TD/B/WG.3/15).

 Final  Report of the  Ad Hoc Working Group  on Comparative Experiences with
Privatization to the Trade and  Development Board, United Nations Conference
on  Trade and  Development, New  York  and  Geneva, 1994  (TD/B/40(2)/21 and
TD/B/WG.3/16).

Activities of  the Transnational  Corporations and  Management Division  and
its  Joint Units:   "Experience Gained  in Technical  Cooperation Activities
Involving  Privatization  and  Foreign   Investment",  Economic  and  Social
Council, 10 March 1993 (E/C.10/1993/10).

Aide-Memoire  and Seminar  Notes from  the National  Privatization  Seminar,
jointly  organized by  the Government  of  Ethiopia  and the  United Nations
Conference on Trade and Development, Addis Ababa, 6 December 1994.

Concentration of Market  Power, through mergers, take-overs, joint  ventures
and  other  acquisitions  of  control,  And  Its  Effects  On  International
Markets, in particular  the markets of developing countries, United  Nations
Conference on Trade and Development, 1993 (TD/B/RBP/80/Rev.2).

Consideration of the Country Presentations in  the Light of a  Cross-Country
Review  by the  Secretariat of  the  Design,  Implementation and  Results of
Privatization   Programmes,  United   Nations   Conference   on  Trade   and
Development, 21 January 1994 (TD/B/WG.3/7/Rev.2).

Consideration of the Country Presentations in  the Light of a  Cross-Country
Review  by the  Secretariat of  the  Design,  Implementation and  Results of
Privatization  Programmes, Issues  Relating  to (a)  Privatization  and  the
Environment,  and (b)  the  Privatization of  Pension Funds,  United Nations
Conference    on     Trade    and     Development,    24     January    1994

(TD/B/WG.3/7/Rev.2/Add.1).

Experience Gained  in Technical Cooperation  Activities Relating to  Foreign
Direct  Investment  and Transnational  Corporations:   Entrepreneurship  and
Enterprise  Development,  Economic   and  Social  Council,  11  March   1994
(E/C.10/1994/9).

Export Development and  the Role  of SMEs  Giving Due  Consideration to  the
Possible Advantages Arising  from the Globalization Process, United  Nations
Conference on Trade and Development, January 1994 (TD/B/WG.7/3).

In-Depth  Consideration  of:    (i)   Competition  and  the   Regulation  of
Privatized  Monopolies, (ii)  Social  Impact and  Socially  Related  Support
Measures, an issues paper by the  UNCTAD secretariat, Trade and  Development
Board, 22 September 1993 (TD/B/WG.3/11).

Role of the State  in Creating an Enabling Environment for the Promotion  of
Entrepreneurship  and  the  Viable Development  of  Enterprises,  Especially
SMEs,  United  Nations Conference  on Trade  and  Development, January  1994
(TD/B/WG.7/2).

Studies  Related  to  the  Provisions  of   the  Set  and  Consultations  on
Restrictive Business Practices:  The Role  of Competition Policy in Economic
Reforms in  Developing  and Other  Countries, United  Nations Conference  on
Trade and Development, 10 August 1994 (TD/B/RBP/96/Rev.1).

  United Nations University

A  Review  of  Reform  Policy  for the  S&T  System  in  China:   From  Paid
Transactions to  Organizational Restructuring, UNU  working paper  available
from the UNU Office in North America.

Evolution  of  High  Technology  Research  Institutes  and  New   Enterprise
Organizations in China, UNU working paper (forthcoming).

Spin-off  Enterprises  in   China:    Channelling  the  Components  of   R&D

Institutions into  Innovative Businesses, UNU  working paper available  from
the UNU Office in North America.

International Labour Organization

Management and small enterprise development

Improve Your Business, edited by Douglas Dickson
  -  Workbook (1986, 83 pp.) (ISBN 92-2-105340-7)
  -  Handbook (1986, 129 pp.) (ISBN 92-2-105341-5).

Networking  for  Entrepreneurship  Development:   Selected  Entrepreneurship
Development  Programmes and Guidelines for Transfer, 1992  (300 pp., limited
distribution) (ISBN 92-2-108211-3).

The  Practice of Entrepreneurship,  by Geoffrey  Meredith, Robert Nelson and
Philip Neck (1982, 205 pp.) (ISBN 92-2-102846-1 and ISBN 92-2-102839-9).

Training  Entrepreneurs   for  Small  Business   Creation:    Lessons   from
Experience, by Kenneth  Loucks, Management Development  Series No. 26 (1988,
137 pp.) (ISBN 92-2-106343-7).

Construction management and small contractor development

Guidelines  for  the Development  of  Small-Scale  Construction Enterprises,
1987 (136 pp.) (ISBN 92-2-105695-3).

Interactive  Contractor Training, Model  1:  Estimating and tendering; Model
2: Project Planning; Model  3:  Site Productivity, by Tor Hernes, ed.  Derek
Miles, 1994 (ISBN 92-2-109159-7).

Pricing and Bidding, Improve Your Construction Business
  -  IYCB 1-workbook, 1994 (101 pp.) (ISBN 92-2-108748-4)
  -  IYCB 1-handbook, 1994 (97 pp.) (ISBN 92-2-108738-7).

Training  Contractors  for Results:    A  Guide  for  Trainers and  Training
Managers, by Tor  Hernes, ed. Derek Miles, 1988 (114 pp.) (ISBN 92-2-106253-
8).

Technology series

Tanning of  Hides  and Skins,  Technical Memorandum  No. 1,  1981 (229  pp.)
(ISBN 92-2-102904-2).
  Small-Scale  Manufacture of  Footwear, Technical  Memorandum No.  2,  1987
(207 pp.) (ISBN 92-2-103079-2).

Small-Scale Processing of Fish, Technical Memorandum  No. 3, 1983 (118  pp.)
(ISBN 92-2-103205-1).

Small-Scale Weaving, Technical Memorandum No. 4, 1983 (129 pp.) 
(ISBN 92-2-103419-4).

Small-Scale Oil Extraction From Groundnuts and Copra, Technical Memorandum
No. 5, 1983 (111 pp.) (ISBN 92-2-103503-4).

Small-Scale Processing of Beef, Technical Memorandum No. 10, 1985 (121 pp.)
(ISBN 92-2-105050-5).

Small-Scale Manufacture of Stabilized Soil Blocks, Technical Memorandum  No.
12,
1987 (181 pp.) (ISBN 92-2-105838-7).

Small-Scale Horn Processing, 1988 (90 pp.) (ISBN 92-2-105358-X).

Fibre  and Micro-Concrete  Roofing  Tiles:   Production  Process and  Tiles-
Laying Techniques, Technical Memorandum No. 16,  1992 (153 pp.) (ISBN  92-2-
106407-7).

Solar Drying:  Practical Methods of Good Preservation, 1989 (144 pp.)
(ISBN 92-2-105357-1).

Appropriate National  Technology Policies:  A  Manual For Their  Assessment,
1989 (144 pp.) (ISBN 92-2-106510-3).

Standard Guidelines:   Fibre or  Micro Concrete Tiles (Element  4), 1992 (49
pp.) (ISBN 92-2-108541-4).

Production Guide:   Fibre and  Micro Concrete Tiles  (Element 22),  1992 (68
pp.) (ISBN 92-2108542-2).

Quality  Control Guidelines:   Fibre or  Micro Concrete  Tiles (Element 23),
1991 
(69 pp.) (ISBN 92-2-107864-7).

Roof  Structure  Guide:    Basics  for   the  Design  and  Construction   of
Lightweight Sloped Roof Structures (Element 24),  1993 (144 pp.) (ISBN 92-2-
109005-1).

Roof  Cover  Guide:   Design  and  Construction  of  FCR/MCR Roof  Covering:
Principles, Detailing (Element 25), 1993 (74 pp.) (ISBN 92-2-109006-X).

Enterprise development

SED/4/E  Mass Communication  Media for  Management Training  in Small  Rural
Enterprises, by Ruben Talavera Goiburu, 1981 (32 pp.).

SED/12/E Interfirm  Comparison for  Improving Performance:   How  Employers'

Organizations Can Help the Business Community, 1986 (60 pp.).

 SED/13/E Entrepreneurship  and Small  Enterprise Development  for Women  in
Developing Countries:  An Agenda of  Unanswered Questions, by Catherine  van
der Wees and Henry Romijin, 1987 (90 pp.) (ISBN 92-2-106300-3).

SED/14/E Stimulating Entrepreneurship and New Business Development, by
Allan A. Gibb, 1989 (60 pp.) (ISBN 92-2-106891-9).

SED/15/E Women's Role in Small Enterprise  Development in Lesotho, 1989  (72
pp.) (ISBN 92-2-107207-X).

SED/16/E  Group Training  Methods  in Management  Development  with  Special
Reference to Small-Scale Enterprises, by Colin  Guthrie, 1989 (84 pp.) (ISBN
92-2-107239-8).

SED/17/E   Entrepreneurship  Development   and  New   Enterprise   Creation:
Experience  of  the Entrepreneurship  Development  Institute  of  India,  by
Dinesh N. Awasthi,
B. P. Murali and Bharat N. Bhat, 1990 (151 pp.) (ISBN 92-2-107439-0).

SED/18/E Defining  Success in  Entrepreneurship Development  Programmes:   A
Guide  to a  Mode Approach,  by Allan  A. Gibb,  1991 (30  pp.) (ISBN  92-2-
108054-4).

SED/19/E Integrated Strategies for Small Enterprise  Development:  A  Policy
Paper,  by Stelios Theocharides  and Arturo  Tolentino, 1991  (24 pp.) (ISBN
92-2-108227-X).

SED/20/E Small  Enterprise Development Agencies  and Programmes in  Northern
Ireland and the Republic of Ireland, by Gerry Finnegan, 1992 (33 pp.)
(ISBN 92-2-108440-X).

SED/21/E Strengthening  Existing Small Enterprises,  by Stelios Theocharides
and Arturo Tolentino, 1992 (10 pp.) (ISBN 92-2-108625-9).

SED/22/E  Innovations  in the  Financing of  Small and  Micro-Enterprises in
Developing Countries, by  Jacob Levitsky, 1993  (123 pp.) (ISBN 92-2-108816-
2).

EMD/1/E The Promotion of Self-Employment in Education and Training
Institutions:   Perspectives in  East and  Southern Africa,  by Wim Hoppers,
1994 (113 pp.) (ISBN 92-2-109084-1).

EMD/2/E  Small Enterprise  Development:   Taxonomy of  Intervention  Schemes
Applied to the Swiss  Case, by Paul  H. Dembinski and Thierry Volery,  1994,
(30 pp.) (ISBN 92-2-109161-9).

The   Promotion  of   Small  and   Medium-Sized  Enterprises   (Report   VI,
International Labour Conference, 1986), 1986 (104 pp.) (ISBN 92-2105178-1).

Construction management

CIP/1 Small-Scale  Construction Enterprises in  Ghana:  Practices,  Problems
and Needs, by Derek  Miles and John  Ward, 1991 (56 pp.) (ISBN  92-2-107847-
1).

 Micro-enterprise and the informal sector

S.INF  A-5  Building Networks:   An  Experiment  in Support  to Small  Urban
Producers in  Benin, by Carlos Maldonado,  1993 (18  pp.) (ISBN 92-2-109291-
7).

Small Enterprise Development:  Policies and Programmes, by P. A. Neck and 
R. Nelson, Geneva, 1987.

Entrepreneurship Development in Public Enterprises, by J. Prokopenko and
I. Pavlin.

Privatization

Privatization and Training:  The Mexican Case, by E. Arena, Geneva,
December 1993.

Consulting in Privatization, by R. Berger, M. Bauer and M. Kubr,
Geneva, 1994.

Privatization  of Telecommunications in  Mexico:   Its Impact  on Labour and
Labour Relations, by A. Botelho and C. Addis, Geneva, November 1993.

World Bank

Firm-Level Surveys to Aid Private Sector  Development Strategies, by  Andrew
Stone, The World Bank FPD Note No. 25, October 1994.

Is Privatization Necessary?, by John Nellis, The World Bank FPD Note No. 7,
May 1994.

Privatization:   Lessons  from  Market  Economies, by  Sunita  Kikeri,  John
Nellis and
Mary Shirley, The World Bank Observer, vol. 9, July 1994, pp. 241-272.

Privatization:   The Lessons of Experience,  by Sunita  Kikeri, John Nellis,
and
Mary Shirley, 1992 (86 pp.) (ISBN 0-8213-2181-1).

Privatization in Estonia:  Major Accomplishments and Remaining Problems, by
John Nellis, The World Bank FPD Note No. 19, July 1994.

Regulatory  Policies   and  Reform  in  Industrializing  Countries,  Claudio
Frischtak (ed.), 1995 (forthcoming).

Russia:   Creating Private  Enterprises and Efficient Markets, Ira Lieberman
and John Nellis (eds.), 1994 (255 pp.).

Russian  Privatization:   An  Impressive  Record,  by  John  Nellis and  Ira
Lieberman, The World Bank FPD Note No. 24, October 1994.

The  Basics  of  Antitrust:    A  Survey of  Ten  Nations  and  the European
Communities, by  R. Bonner  and R. Krueger,  Technical Paper No.  160, World
Bank.

 Welfare Consequences of Selling Public Enterprises: An Empirical  Analysis,
by Ahmed  Galal, Leroy  Jones, Tankaj Tandon  and Ingo  Vogelsang, 1994  (45
pp.)
(ISBN 0-8213-2976-6).

World Bank Lending for Small Enterprises 1989-1993, by Leila M. Webster,
Randall Riopelle and Anne-Marie Chidzero (forthcoming).

International Telecommunication Union

Final Report of the WTDC, Buenos Aires, 1994.

Partners  in Development:   Telecommunications:    The First  Link,  Geneva,
1994.

Restructuring of  Telecommunication  for Development:   Evolution,  Policies
and Trends, Geneva, March 1995.

The Changing  Role of Government in  an Era of  Deregulation:  Colloquium  1
and 2, Geneva, May 1993.

World Telecommunication Development Report, Geneva, 1994, September 1995.

United Nations Industrial Development Organization

Economies in Transition:  Restructuring of Large-Scale Industries (CPD.7),
22 August 1994.

Entrepreneurial   Development  through   Small   Industry,  a   TSS1  report
(DP/ID/SER.D/9), 12 November 1993.

The Global Report  (1992), analysed  present development trends relevant  to
industrialization  and  highlighted  privatization  experiences  around  the
world.

Industrial Policies  in the Transformation  to Competitive Market  Economies
in the Central and Eastern Europe and Former Soviet Union Region (CPD.8), 
22 August 1994.

Industrial   Sector  Surveys  of  Central  Asian  Member  Countries  of  the
Commonwealth   of   Independent   States   (CIS),   Azerbaijan,   Kazakstan,
Kyrgyzstan, Uzbekistan, Restricted, 1994.

Private  Sector  Development  and  Privatization  in  Developing  Countries,
Trends, Policies and Prospects (CPD.6), September 1994.

Privatization  Case Studies  in Chile  (A  Cesmec  Ltd.), Hungary  (the STYL
Clothing  Factory),  The  Philippines  (Privatization of  Cement  Companies)
1994.


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