Improving the operational efficiency of public industrial enterprise in Egypt; executive summary

This paper discusses measures to increase the efficiency of Egypt"s public sector, with emphasis on manufacturing and better use of existing resources. Following an overview on the evolution, size, and structure of the public enterprise sector, especially industry, the authors discuss the importance of improving efficiency and examine the existing level of efficiency. Subsequent chapters consider a proposed organizational reform of the public enterprise sector, the "signaling system", and other strategies to realize potential efficiency gains. The "signaling system", which refers to the way in which enterprises are guided to act in the interest of society as a whole, consists of performance evaluation, performance information, and incentive systems. The authors conclude that while there is a great potential for increasing efficiency, simple legal and organizational reforms are not enough. A package of reforms which would give managers greater autonomy and provide correct signals to decision-makers at all levels is advocated. Appended is a 69-item bibliography (1965-81).