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The efficiency and effectiveness of Malawian parastatals

Author

Listed:
  • Colin Lawson

    (School of Social Sciences, University of Bath)

  • Ben Kaluwa

    (Department of Economics, University of Malawi)

Abstract

Eight Malawian parastatals are studied. Using published data and unique material from structured interviews with senior management, the governance, mode of operation, objectives, efficiency and effectiveness of the companies are examined. They are found to be subject to multiple principals and conflicting objectives. Intervention is multifaceted and non-commercial constraints have been imposed. They have rarely followed or been allowed to follow the reform agendas suggested by either theory or by international agencies. A novel methodology to assess effectiveness is developed, and the characteristics of consistent objectives, autonomy, accountability and performance indicators are identified as crucial to improved performance.

Suggested Citation

  • Colin Lawson & Ben Kaluwa, 1996. "The efficiency and effectiveness of Malawian parastatals," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(6), pages 747-765.
    • Handle: RePEc:wly:jintdv:v:8:y:1996:i:6:p:747-765
    DOI: 10.1002/(SICI)1099-1328(199611)8:6<747::AID-JID266>3.0.CO;2-#
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    References listed on IDEAS

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    1. Frech, H E, III, 1976. "The Property Rights Theory of the Firm: Empirical Results from a Natural Experiment," Journal of Political Economy, University of Chicago Press, vol. 84(1), pages 143-152, February.
    2. Klitgaard, Robert, 1989. "Incentive myopia," World Development, Elsevier, vol. 17(4), pages 447-459, April.
    3. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, December.
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    Cited by:

    1. Ephraim W. Chirwa, 2004. "Industry and firm effects of privatization in Malawian oligopolistic manufacturing," Journal of Industrial Economics, Wiley Blackwell, vol. 52(2), pages 277-289, June.
    2. Brinčíková Zuzana & Kálovec Marek & Lawson Colin W. & Muchová Eva, 2018. "A Survey of the Autonomy, Accountability, Effectiveness and Governance of Slovak State-Owned Enterprises," Scientific Annals of Economics and Business, Sciendo, vol. 65(4), pages 427-442, December.

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