INTRODUCTION
B. Holding Version of Corporate Organization
VI. CONCLUSION
The purpose was to furnish guidelines for public servants, researchers, consul- tants, lenders, and students to reform quasi-monopolistic sectors with inefficient public corporations. Equipped with such methodology, the reader can work out a reform project to bridge the gap between inadequate supply and unsatisfied demand. Limitations of the first two variants of reform were examined. The third solution of strategic partnerships was proposed.
Previous studies (Kelvin 1994, 1995b, 1996, 1997) made economic case for the reallocation of property and production rights to those suppliers who were able to provide better service. Deregulation of the river traffic since 1978 showed that Onatra was unable to compete in a contestable environment and its survival depended on the monopolistic privileges.
The private and public balance changes over time. In the 1930s the private operators could not earn a return. The government had to step in to continue investment programs and operations. Today the situation is very different. The prevailing mentality seems to favor a contestable service provision. The sustain- able balance in public/private provision will be achieved by reallocating property and production rights to private operators who are better suited for efficient provi- sion. Strategic partnerships and the theory of clubs seem to provide vehicles for testing and ascertaining the best private-public blend in each market.
You can sketch a reform proposal for your SOE or for the whole sector, and outline its advantages.
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3
From Conflict to Order?
Corporatism in South Africa
Louwrens Pretorius
University of South Africa, Pretoria, South Africa