“The financial difficulties of these companies have worsened since 2011, for several reasons, including in particular: poor management, which has worsened further because the managers who have been appointed to head these companies , were not chosen for their competence, but rather for political affinities”.
The situation of several public economic enterprises that have been in financial difficulty for years remains worrying, even alarming, in the current situation which continues to weigh down and threaten their activities. What, in your opinion, are the reasons that led to this situation and what measures should be taken to unblock it?
The slump in which public companies find themselves goes back several years, including the years prior to the 2011 revolution. But the financial difficulties of these companies worsened from 2011, for several reasons, including in particular: the bad management which worsened more because the leaders who were appointed at the head of these companies were not chosen for their competence, but rather for political affinities. Added to this are the excessive recruitments which were primarily aimed at guaranteeing social peace, to the detriment of the financial balance of these companies, the corruption which has spread in a frightening way, in the absence of a strong and respectful State which can impose the necessary discipline and rigor, the economic difficulties due essentially to the lack of a clear macro-economic vision which could have revived the economy and allow the creation of wealth and the succession of governments during the last decade, which did not ensure continuity in order to initiate real economic reforms.
Are these companies victims of the absence of a clear economic vision?
Indeed, and as specified, the origin of the evil is due essentially to the absence of a clear economic vision, on the one hand, and to political conflicts which have given absolute priority to the narrow interests of political leaders to the detriment of supreme interests of the country, on the other hand.
In the absence of visibility and in the presence of several barriers, in your opinion, how can the performance of these companies, whose financial balances have been under pressure for years, be improved? What scenarios should be considered?
The lifeline lies in the achievement of the following objectives: placing honest, competent and credible people to run public enterprises, the necessary financial means must be made available to them in order to initiate urgent reforms, ensuring a certain freedom in the day-to-day management of said companies, with rigorous a posteriori control which makes it possible to avoid slippages and possibly fraudulent maneuvers. It is also necessary to provide for a reorganization program which adapts as best as possible to the specific situation of each company, and which must be spread over a well-defined period, and it is also compulsory to screen the recruitments which could be determined, to choose the profiles that are empowered to ensure the recovery of companies that are increasingly engulfed in recession and to support public companies in difficulty with banks so that they can access credit on favorable terms , including in particular the subsidization of interest rates by the State.
The recovery of these enterprises also depends on improving the business climate, entrepreneurship, value chains and the financial sector. What do you think ?
Indeed, the recovery of these companies largely depends on political stability, social peace, improvement of the business climate, economic recovery, financial aid, openness to the outside for its engage in the export policy and above all in the sound management of the company’s daily affairs.