prospects of public and private enterprises in bangladesh
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The performance of the public enterprise sector in Bangladesh is poor. The inefficiency of public enterprises places a fiscal burden, diverts limited resources from growth-enhancing public spending to unproductive subsidies, and affects the country's industrial competitiveness. This paper identifies the prospects, problems, and pitfalls of privatization program and policies in Bangladesh. Firstly, the stylized facts about public enterprises are provided and the basic issues in privatization policy as it relates to Bangladesh are discussed. Secondly, the preconditions for efficiency gains arising from privatization are evaluated. Thirdly, the role of public enterprises in the labor market in Bangladesh is examined. Finally, the political and the economic factors that can offset the potential efficiency gains from privatization in Bangladesh are critically analyzed.