The limits of public sector reforms: evidence from the maritime sector

The aim of this study is to bridge the gap that has contributed to the theoretical/methodological and practical shortsightedness in the literature on maritime privatization in developing countries. The analysis is limited to the maritime industry in West and Central Africa as a deliberate effort to avoid the overgeneralizations of earlier studies on privatization. It argues that the privatization of maritime SOEs in West Africa is unlikely to result in increased efficiency in the divested enterprises, because the region's maritime problems stem, not necessarily from ownership, but from interactions between the structural constraints in world shipping, and the management style and the domestic and regional politics of these countries. This article reviews some of the relevant literature on privatization with a view to identifying some of the main arguments for or against this policy. This will be followed with a discussion of the specific problems that hamper the performance of West Africa's maritime sector. Some policy options that could be employed, to revive the sinking maritime industry in West Africa, are highlighted and analyzed. -from Author