Governance World Watch-9/1999
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Governance World Watch-9/1999

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 ______________________________________________________________  Division for Public Economics and Public Administration Department of Economic and Social Affairs  ___________________________________________ Compiled by Networking and Outreach Clusters S eptember 1999  
ISSUE 8
   TABLE OFCONTENTS    Public EconomicsAsia / Pacific  ............................Cambodia Vows To Shed Civil Servants  AfricaJournalists Vow To Lift Ethics Of Media Industry................ Algerian Leader Vows Economic Overhaul ............E..u..r..o..p..e. ... 1 Zimbabwe Economic Recovery Tied To Management.....  .1.......Else, Blair TellMdoreinezO  r..s.............uP scilbreS eciv Asia / PacificCzech Government Met On PA Reform.............................. Vietnam Needs Political Will On Reforms...............T..h..e. ..A...m..e..ri2c as WB Says Asia Reform Must Move Faster .........................  ...................H2ickory Council (U.S.) Rewrites Expense Policy China's Slower Road To Reform ...................................... iv Cnect C3.o...eSvril cP bulasl ecimmoCissiO noerrdFas ..ir...  .............Communist Party Discusses Industrial Reform... kroW ecisiD 'sret.enntco..............3 Qeueb caFcing Public Serv EuropeNevada Ethics Officials Denounce Ruling........................... French Socialists Deny Jospin Taking "Third Way"........... .4.............an....vrci elPiCiv leSs About  ConcernsecioV iauaK Blair Says There's No Stopping My Reforms ......... .............. 5 Faster Growth Helps EU On Budget Reform...........M...a..n..a..g..e..m5e nt Innovation & Trends  .................Russia Economy Embarks on Recovery ............. 6 The Americas Africa U.S. Tells Russians IMF Aid Is To Help Reform ................. p.se'..........7. nrBni kfOC loaler Sthal'Os ceviA htuoSeH acirf Global Europe Powers Pledge Reforms in Crisis ReacWorld  tions........... inssNeg  TedCoo erP.....c liub Ptena.d.io7r..serusaeM htlaeH UN Launches Netaid Web ................................................ ..............rkWon  OtsGeo  t.........k2Y....Itane tr.emnG8 .v.o.iln a  ............WB Says Emerging Economies Slow to Reform... 8 H lespA ...UE.....................F ainablsuC thgior Cmston.ioptru UNCTAD: World Economy In 1999 To Remain PoorT.h..e.. .A...m..e8r icas New Technology And New Economy ............................... A awdr...................................e.B...A. .l.l.a..n...tl.c  9ticeReesiv  NY Selects PeopleSoft For Human Resource System .......2 Governance Systems and InstitutionsCon Edison Holds Public Forum On Power Plant...............2  Registry Aim: Service With A Smile .................................... AfricaY2K Forum Tries To Get Public Ready............................... South Africa Backs Anti-Corruption Unit.......................... Web Surfer...11 ......................rvSer ve....e.icruovaF sO deepS Moi Reshuffles Kenya Cabinet ......................................... ..B1i1ll Raises Questions About Selective Service ................... Asia / PacificAirlines Detail Customer Service Plans............................... Uncertain Future Hovers Over Vietnam Party ........G..l.o..b..a..l. .. 12 Cambodia Prince Bemoans Poor Investment Climate ..... S GrIHmroF puopretnE s2o1l. .Sser i Dnsioutvisioi.n................  .....Rs100 Billion Corruption In Pakistan Each Year ........... 13 EuropePublic Finance  ................................... 13Corruption Is A Big Balkan Problem   .......Albright Warns Russians To Battle CorruptionA..f.r.i..c.a.. ... 14 Middle Eastn Iran's Newspapers Trade Insults In Reform StrugglAes...... .P..a1Kcei4f icy an Finance Minister Wants Budget Back On Track .... Israel PM To Present Reform Plan After Yom Kippur .i..a. ./... 15 ..... The Americas  Ban taiss oe WnkkaPny..ruti........N eehSwo rcS doF.........jing BooBeimo yiWhtts scEnoe.su....on BIsd ................  .............................Venezuela's Chief Defends Reforms... hiCseneff Oiaic.5 .1stment Coo  ......U.S. Concedes Corruption Major Problem In Russia... rP naisenodnI.........onrourknC  naBdeI icatImper1at i5slS epkaO  nnIev Venezuelan People Want Us To Root Out Corruption ...... 6 .1plent esidhtueroKoS......iopt..n..t.n. .o.i.A.i.lgFn Fn ursid.Im g Public.a. .P.uttin  Trinidad Leader Vows To Fight Drug Trade ....................... 16 UN Official Urges Judicial Reform In Guatemala ....E..u..r..o..p..e . 7 1suse naCP alitno......r... Sti :aievoNEnotse atxaTaCol orrp Cuba Asks IOC To End AIBA 'Corruption' ......................... D gnidnepSPue ak Tnsioisec 17.blic Opinion Int ocAocnu t.....  tion Drained Loa ne . Civil Services & Ethics in Public Sector  SwGoh isedtnemnrevesoporP y noM......I DMFieenuR saissoC npurr00....I st02 naT suC x .. .......  Russia Corruption Impact Limited ...................................... Africa Middle East Congo Republic Lays Off Civil Servants...........................  81te.............. Outlays In Bud.g.nI esarfcurterutsrIl ae FToezre  ...................................... 18Mali President Targets Corruption     
The Americas Is A Big Patron Of The Arts.........In Mexico, The Tax Man  37 Time For Campaign Finance Reform In U.S.? ................... 38  ................................ 39Airlines Detail Customer Service Plan Global PM  ........ 39And Premiers Argue Tax Policy In Tokyo Debate  Private Sector Development  Africa South Africa Says Debt Hobbles Privatization.................... 41 Algerian Leader Vows Economic Overhaul ........................ 41  42Ghana's Privatization Process Too Slow............................  In Quoted Firms............. 42Nigeria Advertises For Investors  .......... 42Zimbabwe To Unveil New Privatization Programme Asia / Pacific Coudert Brothers Advising Korea on Reforms.................... 43 Sri Lanka Embarks On Port Privatization Deal ................... 43  43Private Firms In Guangdong To Buy Into State Sector ......  44SOE Reform In Guangxi, China.......................................... Europe  ............... 45Polish Privatization Cash May Pay Foreign Debt Serbia To Make Company Privatizations Mandatory ......... 45 Turkish Privatization Chief Says No Sell-Off Delay ............ 46 Portugal Opposition Offers Privatizations And Tax Cuts .... 46  .......Turkey Details New Sell-Off Plan To IMF .................... 46 Hungary To Sell Stakes In Electricity Firms R eport............ 47 Kazakhs Seek To Revive Sell-Off Programme ................... 47 Bosnia Privatization Body Aims To Speed Up Sales.......... 47 Water Services 'Better Since Privatization'... ...................... 48 Middle East  48Saudi Says Jobs, Privatiization Key To Development........ The Americas Era Ends As Mexican Railroads Now Private..................... 48  ... 49Study Says Kansas City Can Benefit From Partnerships  50Quebec's 'Father of Medicare' Testifies For Privatization...  ................... 50American Study: 1 In 4 Kids In Private School Time To Allow Private Care, Says Former Minister............ 50  
 
 
 
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Public Economics      ALGERIAN LEADER VOWS ECONOMIC OVERHAUL  President Abdelaziz Bouteflika vowed drastic action to speed up Algeria's privatization progrtahme me, fight corruptio judiciary to switch the debt-saddled North African country into a market economy.  "Algeri am isa rdketermined to follow economy.  It is also determined to boost productive partnerships with foreign firms who a rRes tureo  d,'soBo' eutiw nillot g in response to written questions.  "To achieve that, it plans to launch a large-scale reformn  iani tmh eo fa dministration wit removing all the bureaucratic barriers,'' he added.  Bouteflika said that only efficient publiaci ns eacst ors would be allow part of his plan to speed up the stuttering privatization programme begun in 1994.  "Pri vsaeticztaotriso n will affect all th after a rigorous study.  This does not mean that it would take a long time.  We will get domwinatoi tnoi with all the requi and speed,'' he said.  "The survival of public sector firms depends on their competitivenesst oa nsedl lp erformance.''  Alg state assets worth some $500 million, as part of a structural adjustment plan aimed at increasing growth rate unemployment of 28 percent among the six million-strong workforce.  But only small firms htaivoen been sold so far as process faces numerous hurdles, including red-tape and widespread corruption plaguing the cyountry's administrat systems, officials and economists say.  In a move seen as the start of the large-scale campaingcny t o curb corruption a among civil servants, Bouteflika sacked last week nearly half of Algeria's provincial govern orersf.o r Hme  also set up a com the judiciary system. "Corruption is a scourge and the state must absolutely take precautions. These could inc measures such as renewing the administration and justice,'' he said. Bouteflika also blasted the two main state agencies -- the Investment Support and Promotion Agency (APSI) and the Holdings National Council -- describing th eating institutions.''  "We must either make such bodies efficient...or they should disappeaorv easd did in the past ot inefficient.  My statement here should not be taken for granted.  It is a warning to all whoemd  it Nobomay concern. mess around for such long time with the state interests.''  Bouteflika said last week's firinags oy nleht fa 22 provincial gov first step that would be followed by similar drastic measures to improve efficiency.  "The st aatlel must go through a sectors -- in politics, diplomacy, governorship, economy and social affairs,'' he added.  Bo-utmeaflni ka was elected in presidential race after the withdrawal of all his opposition rivals amid charges of ballo t  Hrieg gsianygs  bhyi st he influential mi first priority is to restore peace in Algeria, where 100,000 have been killed in more than sye vise na lysoe ars of violence.  Th saddled by more than $31 billion in foreign debts.  In June, he reached a peace deal with thtei orne latively moderate I Army (AIS), which had pledged to stop its attacks against the state and offered to join Goveorslnement troops in fightin guerrillas. From Reuters, 30 August 1999  ZIMBABWE ECONOMIC RECOVERY SEEN TIED TO MANAGEMENT  Zimbabwe's ravaged economy will need substantial donor support, a good agricultural season, higher commod improved management to set it on a recovery path next year, a leading local commercial bank said in repor Wednesday. In its latest monthly economic bulletin, Standard Chartered Bank Zimbabwe said the economy, which grow by 1.5 percent in 1999 against 1.6 percent last year, might not grow at all because of ian decline in output in sectors and exports, tobacco, gold and manufactured goods. Zimbabwe's economy is the mosht diversified in the re Africa but was hit by a 50 percent drop in the value of the local currency last year, which sppearcwennetd  an inflation aver and worsened poverty in a country that counts 62 percent of its people as poor and has a jobless rate of about 5 bank said although investment and employment had fallen and inflation had surged to a recors d 63.5 percent in Ju for 2000 could be enhanced by President Robert Mugabe's Government adopting an effective anti-inflationary strat to restore the southern African country's export competitiveness.  "Hopes for a soft landinsgu rpepsotr th, eavily on substant a good agricultural season in 1999/2000 and firmer commodity prices,'' it said.  "Given posigtrivose s developments on th domestic product (GDP) growth could recover to 2.5 percent next year and 3.5 to 4.0 percent thereafter,'' it ad scenario could also see Zimbabwe's inflation -- expected to average 45 percent this year -- sl0o wing to 25 percent percent in 2001. The bank said donor support over the next three years would average $260 million a year, so expects to be used to cut the debt service costs in the budget.  But this would be tied to ailclicoenl erated privatizatio ($131.9 million) of government assets, reduced military spending, which rose substantially  awftaerr  Zimbabwe's interv in the Democratic Republic of the Congo last year, public sector retrenchment and increased ay pos  gnidnnoetrevop n health and education. Zimbabwe is expected to withdraw its 11,000 troops, a third of the army, from the Co agreement endorsed by the Rwandan- and Ugandan-backed Congolese rebels works, and analysts say this would b for the hard-pressed economy. Last month Zimbabwe's private sector said the Government's millennium budget contain inflation while growing exports in order to pull the country out of its worst economic crisis in two decades.   HQ/AR/9/99 4
                                    
Mugabe, his rule threatened by the country's worst economic crisis since he assumed power 19 years ago, last m new International Monetary Fund loan with tough fiscal targets many economists doubt the Government can achie From Reuters, 1 September 1999     VIETNAM NEEDS POLITICAL WILL ON REFORMS  Vietnam runs the risk of falling further behind other Southeast Asian countries unless it speelds up economic ref economist said on Tuesday. Wong Yit Fan, chief economist for Southeast Asia at Standard Chartered Bank, said V more political will to improve its business climate, otherwise it would only achieve "respecet anbelae'r'  economic growt term.  "Vietnam's step-by-step policy improvements will only bring about respectable growtihn p evif-eerht fon antceer interview in Hanoi, without giving precise forecasts for gross domestic product growth for theis "Thayear or 2000. revived Asia will leave Vietnam behind if it does not act.'' The communist-ruled country haosswtro gDP G aetxi  hat percent this year and 2000, from an official estimate of 5.8 percent in 1998 and 8.2 percentn ei nt o1 997.  Wong said i 12 months before Vietnam felt positive benefits from Asia's recovery because investors wousldu ctha ke advantage first as Thailand that had implemented more significant economic reforms. Donors have expressed disappointment th avoided the full brunt of the Asian economic crisis because it has no open financial markets,ddid not move to sla business costs while its neighbours were on their knees.  "Reforms to be gradual because tlh ewrilel is not yet the sur needed to bring about a quantum jump in policy changes,'' Wong said.  "I suspect we are seecinalg  policymakers (foc issues and...not shifting enough attention to what needs to be done economically to remain on a par with the happening in the region,'' he added. In recent weeks state media has given blanket coverage to a plenum of t Communist Party central committee and other political events, which have all emphasized thien gn eed to strengthen role in the country.  Analysts have also blamed slow reforms on pressure from politically wteol lfie rmd teatsto es-ocnnce economy. However, Wong said he believed Vietnam's leadership was aware the country might slip behind its le and that they recognized foreign investment and private initiative were vital to penetrate glo ot gnoWie etrk  s.bamal brush up the image of a country he said had one of the best work ethics in Southeast Asia. In addition, he sai embarked on some positive steps, such as a law passed last May that aims to put the privathe sector on a level state firms, but that these moves had not been promoted enough. "Governments learned during the Asian eco public relations is important. Vietnam has to learn that the marketing matters just as much as the policy,'' Wong sa From Reuters, 31 August 1999  WORLD BANK SAYS ASIA REFORM MUST MOV E FASTER  Asia's macro-economic recovery is progressing well, but corporate reform must move fastenr  tiof ces etavirptapicar to teh region to fund long-term growth, the World Bank said on Monday.  "If it doesn't take place, eiwteh ewr on't see private in domestic or foreign - back in the region and it will weaken the  (recovery) process,'' Jean-sMiiac haenld  Severino, the ban -Pacific vice president told Reuters.  "As an institution, we think it  (reform) should be pro cteo ebdei ng faster if the re safe,'' he said at the close of the Manila Framework meeting in Singapore. The Manila Framework group of 14 me has been meeting with World Bank, International Monetary Fund and Asian Development Bank officials twice yea discuss the response to Asia's worst economic crisis in decades. The group comprises Australia, Brunei, Canada Kong, Indonesia, Japan, South Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand and the Un Severino said efforts to accelerate restructuring over the next six to nine months would determine the willin investment capital to return to the region. And competitiveness must become Asia's focus if cenogi hg ormocito wth the region in the wake of the crisis.  "It won't happen unless the restructuring of the corpwoer agtet e sttcrouon  ia s  inedo of this crisis with much more competitive businesses, that means more specialized, better scsaepsi,t'a' lized, better struc he said.  He said the speed of recovery on regional stock markets this year had created disitnurce orporaf sec rovitn that threatened the broad need for competitive reform in Asia.  "It would be very shortsig hotnelyd a tol o aoktht  ristes debt restructuring process that the stock market increases may partially take care of,'' he tshaeid. "What is really structure of the power in the corporations, the improvement in governance of corporations and their competi competitiveness issue was growing in importance given the huge stakes regional governments held in their e nationalizing failed banks and bailing out conglomerates.  "How this is going to be managed aon d how the governm disengage, which they all want to do, is going to shape the competitiveness of the economie''s .  This is going to Severino said.  "The very real risk is that it  (competitiveness) is not seen as the key osnheo,u lwd hible  nhtignr  eolt isun i eht focus now in the way financial restructuring is being done,'' he added. From PRNewswire, 30 August 1999  CHINA'S SLOWER ROAD TO REFORM  The leadership's September meeting may signal desire for social stability over economic restructuring. Four mon Zhu Rongji charmed Americans with a vision of a China open to economic reforms. Donning cowboy hats and telli  HQ/AR/9/99 5
          
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