The International Monetary Fund refers to the importance of the private sector and the disadvantages of government institutions

The International Monetary Fund published a report in which it indicated the weak performance of the public sector and government institutions, compared to the performance of the private sector, which is considered the most efficient to lead these institutions.

The Fund’s research indicates that these government companies are often less profitable than those in the private sector.

He believed that the reasons that drive governments to own these companies differ from one country to another, but many of these government companies belong to areas that should be managed by the private sector to achieve the optimal situation, such as the leather industry in Algeria, furniture and dairy products in Iraq, and the telecommunications sector in Lebanon.

In turn, Morocco has already published an annual performance report, and has also enhanced the sector’s transparency in its annual budget.
Often, the footprints of state-owned enterprises in some countries of the Middle East and North Africa exceed the estimated area of ​​their counterparts in the countries of the Organization for Economic Cooperation and Development, with a disparity in the countries of the region.

State-owned enterprises generate large costs for public finances to compensate for their operating losses.

In its report, the Fund refers to the need to strengthen the role of the private sector and reduce the role of public sector institutions in a number of areas, and attributes this to the weak performance of the public sector, the success of the private sector’s performance and its ability to achieve competition and profit.