______________________________________________________________ Division for Public Economics and Public Administration Department of Economic and Social Affairs___________________________________________ Compiled by Networking and Outreach Clusters September 1999
ISSUE 8
TABLE OFCONTENTSPublic 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,BlairTellMdoreinezOr..s.............uPscilbreSeciv Asia / PacificCzech Government Met On PA Reform.............................. Vietnam Needs Political Will On Reforms...............T..h..e...A...m..e..ri2cas WB Says Asia Reform Must Move Faster ......................... ...................H2ickory Council (U.S.) Rewrites Expense Policy China's Slower Road To Reform ......................................ivCnectC3.o...eSvrilcPbulaslecimmoCissiOnoerrdFas..ir... .............Communist Party Discusses Industrial Reform...kroWecisiD'sret.enntco..............3QeuebcaFcingPublicServ EuropeNevada Ethics Officials Denounce Ruling........................... French Socialists Deny Jospin Taking "ThirdWay"............4.............an....vrcielPiCivleSsAboutConcernsecioViauaK Blair Says There's No Stopping My Reforms ....................... 5 Faster Growth Helps EU On Budget Reform...........M...a..n..a..g..e..m5ent Innovation & Trends .................Russia Economy Embarks on Recovery............. 6 The Americas Africa U.S. Tells Russians IMF Aid Is To Help Reform.................p.se'..........7.nrBnikfOCloalerSthal'OsceviAhtuoSeHacirf Global Europe Powers Pledge Reforms in Crisis ReacWorld tions...........inssNegTedCooerP.....cliubPtena.d.io7r..serusaeMhtlaeH UN Launches Netaid Web ..............................................................rkWonOtsGeot.........k2Y....Itanetr.emnG8.v.o.ilna ............WB Says Emerging Economies Slow to Reform...8HlespA...UE.....................FainablsuCthgiorCmston.ioptru UNCTAD: World Economy In 1999 To Remain PoorT.h..e...A...m..e8ricas New Technology And New Economy ...............................Aawdr...................................e.B...A..l.l.a..n...tl.c9ticeReesiv 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..........................WebSurfer...11......................rvServe....e.icruovaFsOdeepSMoi Reshuffles Kenya Cabinet ...........................................B1i1llRaises 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 .....SGrIHmroFpuopretnEs2o1l..SseriDnsioutvisioi.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..a1Kcei4ficyan Finance Minister Wants Budget Back On Track .... Israel PM To Present Reform Plan After Yom Kippur .i..a../... 15 ..... The AmericasBantaissoeWnkkaPny..ruti........NeehSworcSdoF.........jingBooBeimoyiWhttsscEnoe.su....onBIsd................ .............................Venezuela's Chief Defends Reforms...hiCseneffOiaic.5.1stmentCoo ......U.S. Concedes Corruption Major Problem In Russia...rPnaisenodnI.........onrourknCnaBdeIicatImper1ati5slSepkaOnnIev Venezuelan People Want Us To Root Out Corruption ......6.1plentesidhtueroKoS......iopt..n..t.n..o.i.A.i.lgFnFnursid.ImgPublic.a..P.uttin Trinidad Leader Vows To Fight Drug Trade ....................... 16 UN Official Urges Judicial Reform In Guatemala ....E..u..r..o..p..e.71susenaCPalitno......r...Sti:aievoNEnotseatxaTaColorrp Cuba Asks IOC To End AIBA 'Corruption' .........................DgnidnepSPueakTnsioisec17.blicOpinionIntocAocnut..... tion Drained Loa ne . Civil Services & Ethics in Public SectorSwGohisedtnemnrevesoporPynoM......IDMFieenuRsaissoCnpurr00....Ist02naTsuCx .. ....... Russia Corruption Impact Limited ...................................... Africa Middle East Congo Republic Lays Off Civil Servants...........................81te..............OutlaysInBud.g.nIesarfcurterutsrIlaeFToezre ...................................... 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 Report............ 47 Kazakhs Seek To Revive Sell-Off Programme................... 47 Bosnia Privatization Body Aims To Speed UpSales.......... 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
Public EconomicsALGERIAN LEADER VOWS ECONOMIC OVERHAUL PresidentAbdelazizBouteflikavoweddrasticactiontospeedupAlgeria'sprivatizationprogrtahmeme,fightcorruptio judiciarytoswitchthedebt-saddledNorthAfricancountryintoamarketeconomy."Algeriamisardketermined to follow economy.ItisalsodeterminedtoboostproductivepartnershipswithforeignfirmswhoarRestureod,'soBo'eutiwnillotg inresponsetowrittenquestions."Toachievethat,itplanstolaunchalarge-scalereformnianitmheofadministrationwit removingallthebureaucraticbarriers,''headded.Bouteflikasaidthatonlyefficientpubliacinseacstorswouldbeallow partofhisplantospeedupthestutteringprivatizationprogrammebegunin1994."Privsaeticztaotrisonwillaffectallth afterarigorousstudy.Thisdoesnotmeanthatitwouldtakealongtime.Wewillgetdomwinatoitnoiwith all the requi andspeed,''hesaid."Thesurvivalofpublicsectorfirmsdependsontheircompetitivenesstoansedllperformance.''Alg state assets worth some $500 million, as part of a structural adjustment plan aimed at increasing growth rate unemploymentof28percentamongthesixmillion-strongworkforce.Butonlysmallfirmshtaivoenbeen sold so far as process faces numerous hurdles, including red-tape and widespread corruption plaguing the cyountry's administrat systems,officialsandeconomistssay.Inamoveseenasthestartofthelarge-scalecampaingcnytocurbcorruptiona amongcivilservants,BouteflikasackedlastweeknearlyhalfofAlgeria'sprovincialgovernorersf.orHmealsosetupacom 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 blastedthe two main state agencies -- the Investment Support and Promotion Agency (APSI) and the Holdings National Council -- describing th eatinginstitutions.''"Wemusteithermakesuchbodiesefficient...ortheyshoulddisappeaorveasddid in the past ot inefficient.Mystatementhereshouldnotbetakenforgranted.Itisawarningtoallwhoemdit Nobomay concern. messaroundforsuchlongtimewiththestateinterests.''Bouteflikasaidlastweek'sfirinagsoynlehtfa22 provincial gov firststepthatwouldbefollowedbysimilardrasticmeasurestoimproveefficiency."Thestaatlelmust go through a sectors--inpolitics,diplomacy,governorship,economyandsocialaffairs,''headded.Bo-utmeaflnikawaselectedinpresidentialraceafterthewithdrawalofallhisoppositionrivalsamidchargesofballotHrieggsianygsbhyistheinfluentialmi firstpriorityistorestorepeaceinAlgeria,where100,000havebeenkilledinmorethansyevisenalysoearsofviolence.Th saddledbymorethan$31billioninforeigndebts.InJune,hereachedapeacedealwiththteiornelativelymoderateI Army(AIS),whichhadpledgedtostopitsattacksagainstthestateandofferedtojoinGoveorslnement 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 growby1.5percentin1999against1.6percentlastyear,mightnotgrowatallbecauseofiandecline in output in sectors and exports, tobacco, gold and manufactured goods. Zimbabwe's economy is the mosht diversified in the re Africabutwashitbya50percentdropinthevalueofthelocalcurrencylastyear,whichsppearcwennetdaninflationaver and worsened poverty in a country that counts 62 percent of its people as poor and has a jobless rate of about 5 banksaidalthoughinvestmentandemploymenthadfallenandinflationhadsurgedtoarecorsd63.5percentinJu for 2000 could be enhanced by President Robert Mugabe's Government adopting an effective anti-inflationary strat torestorethesouthernAfricancountry'sexportcompetitiveness."Hopesforasoftlandinsgurpepsotrth,eavilyonsubstant agoodagriculturalseasonin1999/2000andfirmercommodityprices,''itsaid."Givenposigtrivosesdevelopmentsonth domestic product (GDP) growth could recover to 2.5 percent next year and 3.5 to 4.0 percent thereafter,'' it ad scenariocouldalsoseeZimbabwe'sinflation--expectedtoaverage45percentthisyear--sl0owingto25percent percent in 2001. Thebank said donor support over the next three years would average $260 million a year, so expectstobeusedtocutthedebtservicecostsinthebudget.Butthiswouldbetiedtoailclicoenleratedprivatizatio ($131.9million)ofgovernmentassets,reducedmilitaryspending,whichrosesubstantiallyawftaerrZimbabwe'sinterv in the Democratic Republic of the Congo last year, public sector retrenchment and increasedayposgnidnnoetrevopn 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/9/994
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 morepoliticalwilltoimproveitsbusinessclimate,otherwiseitwouldonlyachieve"respecetanbelae'r'economicgrowt term."Vietnam'sstep-by-steppolicyimprovementswillonlybringaboutrespectablegrowtihnpevif-eerhtfonantceer interviewinHanoi,withoutgivingpreciseforecastsforgrossdomesticproductgrowthfortheis "Thayear or 2000. revived Asia will leave Vietnam behind if it does not act.'' The communist-ruled country haosswtrogDPGaetxihat percentthisyearand2000,fromanofficialestimateof5.8percentin1998and8.2percentneinto1997.Wongsaidi 12monthsbeforeVietnamfeltpositivebenefitsfromAsia'srecoverybecauseinvestorswouslducthakeadvantagefirstas 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 businesscostswhileitsneighbourswereontheirknees."Reformstobegradualbecausetlhewrilelis not yet the sur neededtobringaboutaquantumjumpinpolicychanges,''Wongsaid."Isuspectweareseecinalgpolicymakers(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 CommunistPartycentralcommitteeandotherpoliticalevents,whichhaveallemphasizedthiengneedtostrengthenroleinthecountry.Analystshavealsoblamedslowreformsonpressurefrompoliticallywteollfiermdteatstoes-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 glootgnoWieetrks.bamalbrush up the image of a country he said had one of the best work ethics in Southeast Asia. In addition, he sai embarkedonsomepositivesteps,suchasalawpassedlastMaythataimstoputtheprivathesector 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 MOVE FASTER Asia'smacro-economicrecoveryisprogressingwell,butcorporatereformmustmovefastenrtiofcesetavirptapicartoteh regiontofundlong-termgrowth,theWorldBanksaidonMonday."Ifitdoesn'ttakeplace,eiwtehewron'tseeprivatein domesticorforeign-backintheregionanditwillweakenthe(recovery)process,''Jean-sMiiachaenldSeverino,theban -PacificvicepresidenttoldReuters."Asaninstitution,wethinkit(reform)shouldbeprocteoebdeingfasterifthere 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 ifcenogihgormocitowth theregioninthewakeofthecrisis."Itwon'thappenunlesstherestructuringofthecorpwoeragtetesttcrouoniasinedo ofthiscrisiswithmuchmorecompetitivebusinesses,thatmeansmorespecialized,betterscsaepsi,t'a'lized,betterstruc hesaid.Hesaidthespeedofrecoveryonregionalstockmarketsthisyearhadcreateddisitnurceorporafsecrovitn thatthreatenedthebroadneedforcompetitivereforminAsia."Itwouldbeveryshortsighotnelydatoloaokthtristes 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 nationalizingfailedbanksandbailingoutconglomerates."Howthisisgoingtobemanagedaondhowthegovernm disengage,whichtheyallwanttodo,isgoingtoshapethecompetitivenessoftheeconomie''s.ThisisgoingtoSeverinosaid."Theveryrealriskisthatit(competitiveness)isnotseenasthekeyosnheo,ulwdhiblenhtignreoltisunieht 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/9/995