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Cross River State public enterprises are generally corporate entities other than ministerial departments they derive their existence from special statutory instruments and engage in special business type of activities to provide goods and services for the overall social economic upliftment of the citizen these include corporation, authorities, boards and enterprise so owned and operated (Jerome 1999).
The non-performance of the public enterprise has prompted series of discussion and policy recommendations on how best to move them out of their present quagmire. It was for this quagmire that in 1999, the Cross River State government instituted sweeping reforms across the various sector of the state economy where they recognized that public expectations.
They were conceived to be consuming a large portion of national resources without discharging the responsibilities thrust upon them.
1. That they create economic difference
2. They incur huge financial resources
3. They absorb disproportionate share of credit and especially in the form of foreign loans (Oluade 2007).
While the public remains divergent in their feelings regarding policy choice and actions the state governments seems decided, poised and irrevocably committed to the privatization option towards this end.
A decree was promulgated that is decree No. 25 of 1988 to give practice effects to and set approximate machineries in motion to privatize some government enterprises.
1.2 The research problem
Privatization programme just like any other of programme initiated by the state government did not just start.
Privatization programme arose because the defunct public enterprises had to meet public expectation they were alleged to be consuming a large portion of national resources hereby creating economic inefficiencies, incurring huge financial resources and absorbance of disproportionate share of credit especially in the form of foreign loans. It could be used interwovenly with commercialization though privatization involves the sale of government owned company to private investors or individuals who now becomes the new owners changing the way government owned companies operate to ensure that they run commercially and make profit the existing differences is their ownership structure.
1.3 Purpose of the study
The primary purpose or aims of the study is to find outs why government had decide to embark on privatization programme and their implication in economics policy and developments in Cross River State. It is worthy of note that the primary goals of privatization programme is to make the private sector, the leading engine growth of the Cross River State economy the government intends to use the privatization programme to take Cross River State back into the global economy as a plant form to attracts foreign direct investment in an open, fair and transparent method.
1. To send a clear message to local and international community that a new and transparent Cross River State is open for business.
2. To Restructure and revitalize the public sector in order to substantially reduce the dominance of unproductive government investment in the sector.
3. To create jobs, acquire now knowledge, skills and technology and expose Nigerians to internationals competition.
4. To raise funds for financing socially eradicated programme such as poverty eradicated programme such as poverty eradication, wealth creation and infrastructure.
1.4 Research questions
This study aims at asking some fundamental questions which I believe if poverty analyzed will help us to understand more reasons behind privatization programme in Cross River State.
These research questions are:
1. What is privatization?
2. Why are public enterprises privatized?
3. Does it have any implication in economic policy and developments of Cross River State?
4. Who are the beneficiaries of privatization?
5. Do you think it should be encouraged?
1.5 Significance of the study
Researchers are usually conducted with a view to contributing to already existing knowledge and understanding about a particular discipline.
The opportunity provided by this study will used to explore the factors that gave rise to privatization of public enterprises in Cross River State and its implication on economic policy and development in Cross River State. It is believed that the study and many suggestion will contribute immensely to the reasons behind the privatization of publics enterprises its implications in Economic policy and development in Cross River State.
Furthermore, this study would endeavor to show that public enterprises are set up or established to bring upliftments and elevation in the economic life of the state and citizenry.
Finally, the research may serve as a mark for further study on the privatization of public enterprises, understand the problems and proper solution to them.
1.6 Scope of the study
The study covers privatized enterprises government owned in Cross River State.
1.7 Definitions of relevant terms
It is imperative to give an operational meaning to some of the words that is used in the study;
i. Privatization: This means the sale of government assets or enterprises wholly or partially to privates investors for effective management.
ii. Government: This has to do with a group of individual exercising legitimacy and authority and is also an institution through which the will of the state is formulated, expressed and attained.
iii. Enterprise: Ventures that exist to yield profit and renders services to people.
iv. Economy: The state of a country or region in terms of the production and consumption of goods and services and the supply of money.
v. Development: This has to do with concentrated efforts which are made to facilitate significant increase in productivity.
vi. Interview: Refers to meeting of people or persons either face to face or dialogue with aim of getting information about an issue.
1.8 Organization of the study
This research work is divided into Five Chapters. The first chapter represents an overview of the study, significance of the study, scope of study, definition of some relevant terms and research question.
The second chapter deals with the theoretical based on conceptual framework and reviews related literature as will as the model or theories.
The chapter three talks about research design, data preparation, instrumentation, validity/reliability of instrument.
Chapter four talks about data presentation, analysis and the discussion of findings.
Chapter five talks about summary of findings, recommendation and conclusions.
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