Chapter V. Governance and Management Issues of Privatization: Theory & Practice

Transcription

1 Chapter V Governance and Management Issues of Privatization: Theory & Practice

2

3 DETAILED CONTENTS Contents Page No. Introduction 192 PART-A A.1: The Concept of Governance 193 A.2: The Meaning of Governance 193 A.3: Good Governance 194 A.4: Features of Good Governance A.5: Establishing and Managing Appropriate Economic Environment for Privatization A.6: Establishing and Managing Privatization Processes and Procedures Effectively PART-B Governance and Management Issues of Privatization: Case Study Results of Tehran City, Iran 2 Statistical Description of the Research Sample Society 2-23 Statistical Analysis of the Study Assumptions Studying the Second Hypothesis of the Research Summary 24

4 Privatization of Industries in Iran: A Case Study of Tehran City 192 GOVERNANCE AND MANAGEMENT ISSUES OF PRIVATIZATION: THEORY & PRACTICE Introduction Many governments in developing countries have been working to address public governance issues and there is increasing interest in promoting reforms as a means to create a more stable, transparent and predictable environment that helps privatization. Governance can be defined as the rule of the rulers, typically within a given set of rules. One might conclude that governance is the process by which authority is conferred on rulers, by which they make the rules and by which those rules are enforced and modified. Thus, understanding governance requires an identification of both, the rulers and the rules, as well as the various processes by which they are selected, defined, and linked together and with the society generally. The World Bank's focus on governance reflects the worldwide thrust toward political and economic liberalization. Such a governance approach highlights issues of greater state responsiveness and accountability and the impact of these factors on political stability and economic development. It is clear that the concept of governance has gained momentum and a wider meaning over the years. Apart from being an instrument of public affairs management or a gauge of political development, governance has become a useful mechanism to enhance the legitimacy of the public realm. It has also become an analytical framework or approach to comparative politics.

5 Governance and Management Issues of Privatization: Theory & Practice 193 PART-A Governance and Management Issues of Privatization A.1: The Concept of Governance Governance means different things to different people, therefore we have to get our focus right. The true meaning of the concept depends on the level of governance we are talking about, the goals to be achieved and the approaches being followed. According to the general definition provided by Webster 1, Governance means: the act or process of governing, specifically authoritative direction and control. This interpretation specifically focuses on the effectiveness of the executive branch of government. A.2: The Meaning of Governance 2 The concept of "governance" is not new; it is as old as human civilization. Simply put "governance" means: the process of decision-making and the process by which decisions are implemented (or not implemented). Governance can be used in several contexts such as corporate governance, international governance, national governance and local governance. Since governance is the process of decision-making and the process by which decisions are implemented, an analysis of governance focuses on the formal and informal actors involved in decision-making and implementing the decisions made and the formal and informal structures that have been set in place to arrive at and implement the decision. 1. Webster s Third New International Dictionary (1986), p http: // www. unescap. org

6 Privatization of Industries in Iran: A Case Study of Tehran City 194 A.3: Good Governance "Good governance is epitomized by predictable, open and enlightened policy-making, a bureaucracy imbued with professional ethos acting in furtherance of the public good, the rule of law, transparent processes and a strong civil society participating in public affairs. 3 The UNDP notes that: Good governance is among other things, participatory, transparent and accountable, it is also effective and equitable and it promotes the rule of law. Good governance ensures that political, social and economic priorities are based on broad consensus in society and that the voices of the poorest and the most vulnerable are heard in decision-making over the allocation of development resources. 4 A.4: Features of Good Governance Good governance has 8 major characteristics: 5 it is participatory, consensus oriented, accountable, transparent, responsive, effective and efficient, equitable and inclusive and follows the rule of law. It assures that corruption is minimized, the views of minorities are taken into account and that the voices of the most vulnerable in society are heard in decision-making. It is also responsive to the present and future needs of the society. 3. http: //www. gdrc. org 4. http: // 5. http: // org

7 Governance and Management Issues of Privatization: Theory & Practice 195 Illustration-5.1 Characteristics of good governance Participation Participation by both men and women is a key cornerstone of good governance. Participation could be either direct or through legitimate intermediate institutions or representatives. It is important to point out that representative democracy does not necessarily mean that the concerns of the most vulnerable in society would be taken into consideration in decision making. Participation needs to be informed and organized. This means freedom of association and expression on the one hand and an organized civil society on the other hand. Rule of Law Good governance requires fair legal frameworks that are enforced impartially. It also requires full protection of human rights, particularly those of minorities. Impartial enforcement of laws requires an independent judiciary and an impartial and incorruptible police force.

8 Privatization of Industries in Iran: A Case Study of Tehran City 196 Transparency Transparency means that decisions taken and their enforcement are done in a manner that follows rules and regulations. It also means that information is freely available and directly accessible to those who will be affected by such decisions and their enforcement. It also means that enough information is provided and that it is provided in easily understandable forms and media. Responsiveness Good governance requires that institutions and processes try to serve all stakeholders within a reasonable timeframe. Consensus Oriented There are several factors and as many view points in a given society. Good governance requires mediation of the different interests in society to reach a broad consensus in society on what is in the best interest of the whole society and how this can be achieved. It also requires a broad and long-term perspective on what is needed for sustainable human development and how to achieve the goals of such development. This can only result from an understanding of the historical, cultural and social contexts of a given society or community. Equity and Inclusiveness A society s well being depends on ensuring that all its members feel that they have a stake in it and do not feel excluded from the mainstream of society. This requires all groups, but particularly the most vulnerable, have opportunities to improve or maintain their well being.

9 Governance and Management Issues of Privatization: Theory & Practice 197 Effectiveness and Efficiency Good governance means that processes and institutions produce results that meet the needs of society while making the best use of resources at their disposal. The concept of efficiency in the context of good governance also covers the sustainable use of natural resources and the protection of the environment. Accountability Accountability is a key requirement of good governance. Not only governmental institutions but also the private sector and civil society organizations must be accountable to the public and to their institutional stakeholders. Who is accountable to whom varies depending on whether decisions or actions taken are internal or external to an organization or institution. In general, an organization or an institution is accountable to those who will be affected by its decisions or actions. Accountability cannot be enforced without transparency and the rule of law. A.5: Establishing and Managing Appropriate Economic Environment for Privatization 6 In former socialist economies and in many developing countries, the first and most important challenge for governance of privatization is establishing and appropriate economic environment for privatization and private enterprise development. This means managing the economic reforms necessary to support an emerging private sector. The elements of economic reform that are necessary to support privatization and private enterprise development include the following six essential factors: 6. Prokopenko, Joseph (1995), Management for Privatization: Lessons from Industry and Public Service, Publication of the International Labour Office, Geneva, Switzerland, pp

10 Privatization of Industries in Iran: A Case Study of Tehran City 198 Structural Adjustment Policies Economic Stabilization Policies Trade and Investment Reform Policies Political Reforms Industrial Development Policies Private Sector Development Programmes The management of an economic environment conducive to the transition to a market economy and to privatization entails selection of appropriate policies, proper sequencing of policy reforms and effective implementation of policies after they are enacted. A.6: Establishing and Managing Privatization Processes and Procedures Effectively The second challenge facing governments for governance of privatization is to develop and manage the procedures for transferring SOEs to private ownership and for eliciting private sector participation in providing goods, services and infrastructure. A set of important management principles are as below: Clearly identifying the objectives of privatization Creating an effective privatization agency Selecting appropriate methods of privatization Developing clear and transparent procedures Developing and applying appropriate assessment and valuation methods Allowing for restructuring, liquidation or bankruptcy of SOEs that can not be sold Establishing and implementing equitable bidding and contracting procedures

11 Governance and Management Issues of Privatization: Theory & Practice 199 Enacting appropriate legal reforms Strengthening private sector management capacity Providing assurances to protect current employees Allaying fears that the poorest groups will be excluded from privatized services Redefining roles of the government and of public employees in a market-oriented economy The United States National Academy of Public Administration emphasizes that the broad definition extends the term privatization to a wide set of arrangements under which government remains involved as the financier or authorizer of services but relies on the private sector or the market for the actual provision and delivery. 7 Effectiveness of governance of privatization depends more on negotiation, persuasion, participatory decision-making and co-ordination. Government officials must develop the capacity to manage contractual relationships. Rondinelli, 8 believes that public officials must be trained in adaptive management in negotiation and interaction, in effective regulation and in understanding how private companies operate. 7. National Academy of Public Administration, op.cit. p Rondinelli, Dennis A. (1993), Development Project as Policy Experiments: An Adaptive Approach to Development Administration, New York, Routledge, 2 nd Ed.

12 Privatization of Industries in Iran: A Case Study of Tehran City 2 PART-B Governance and Management issues of Privatization: Case Study Results of Tehran City, Iran Governance and Management Issues of Privatization Governance and management of privatization means the process of decision-making by government to privatization includes all policies programmes and strategies which aim at more dependence of the economy on the market system. Based on the comprehensive study of literature, fifteen parameters have been distinguished to examine the governance and management of privatization. They are technology, economic policy stability, management autonomy, flexible governance, transparency in decision making, availability of government officials, guidelines for implementing privatization, capital market, political stability, government s accountability, constitution s amendments relating to privatization, confidence level among the domestic capitalist, reaction of the labour unions, existing privatization laws and economic sanctions against Iran. Statistical Description of the Research Sample Society The statistical society in this part of the study is the managers and staff, who are in charge of execution of privatization (Questionnaire No.2). The studied sample society is 63 individuals. The general information of the sample society is shown throughout the following tables and illustrations.

13 Governance and Management Issues of Privatization: Theory & Practice 21 Table-5.1: Age Age Frequency Percent In the age range of 2-3 years In the age range of 31-4 years In the age range of 41-5 years More than 5 years Illustration years 31-4 years 41-5 years More than 5 years As it is evident from the above table, from the total respondents to the questionnaires the age ranges of about 11.1% was 2-3 years, 27 % between 31-4, 39.7% between 41-5 and 22.2% more than 5 years.

14 Privatization of Industries in Iran: A Case Study of Tehran City 22 Table-5.2: Education Degree Frequency Percent Under- secondary school certificate High school certificate Certificate of associate degree Diploma of bachelor degree Diploma of master degree and higher degrees 63 1 Iluustration U Diploma Diploma O Diploma BA Degree MS & Ph.D From the total 63 respondents to the questionnaires, 9.5% possessed under high school certificate, 12.7% high school certificate, 3.2% associate degree, 33.3% bachelor degree and 14.3 % master degree or higher.

15 Governance and Management Issues of Privatization: Theory & Practice 23 Table-5.3: Work Experience Experience Frequency Percent Up to 6 years years years years years Illustration Up to 6 years 6-12 years years years 24-3 years From the total 63 respondents to the questionnaires, about 1.1% had less than 6 years of work experience, 14.3% between 6-12 years, 3% between years, 3.1% between years and 17.5% between 24-3 years.

16 Privatization of Industries in Iran: A Case Study of Tehran City 24 Statistical Analysis of the Study Assumptions In this section of the research, every response to the questions raised in the questionnaire examines the governance and management issues of privatization (questionnaire No.2) and each question is evaluated on the basis of Likert s Summated Scale. For testing each question as an assumption medium (Med=3) of the response has been used and Wilcoxon Test has been employed and the results are obtained. Finally, in order to examine and to test the major hypothesis (second hypothesis) of the research, the mean of the responses to the questions have been used and T Student Test has been employed. 1. The Influence of Global Developments in the Process of Governance and Management of Privatization. The following table and diagram show the percentage of the individuals who responded to this question. Table-5.4 Influence of global development Valid Missing very high high Medium low very low System Cumulative Frequency Percent Valid Percent Percent

17 Governance and Management Issues of Privatization: Theory & Practice 25 Illustration Very high High Medium Low Very low From the total respondents to the above question, 4.8% consider the influence of global developments in the process of governance and management of privatization very high, 46% high, 23.8% medium, 15.9% low and 3.2% very low. It should be noted that 6.3% has not responded to this question. This question has been tested: The influence of global developments in the process of governance and management of privatization is medium: H The influence of global developments in the process of governance and management of privatization is not medium: H 1

18 Privatization of Industries in Iran: A Case Study of Tehran City 26 The results of testing this assumption are indicated in the following table: Ranks N Mean Rank Sum of Ranks MED influence of global developments Negative Ranks Positive Ranks Ties 32 a 12 b 15 c a. MED < influence of global developments b. MED > influence of global developments c. MED = influence of global developments This table shows the number of cases in which the variable ranks are less than, more than or equal 3. The number of cases in which the influence of global developments in the process of governance and management of privatization is less than medium is 12, more than medium is 32 and the number of the cases that are equal medium is 15. The following table tests this assumption: Test Statistics b MED influence of global developments Z Asymp.Sig.(2-tailed) a.7 a. Based on Positive Ranks. b. Wilcoxon Signed Ranks Test. Since the significance level is less than.5, zero assumption is rejected. In other words, the influence of global developments in the process of governance and management of privatization is not medium. Now, with regard to the above table and re-examination of the numbers of positive and negative ranks, it can be concluded that the influence of global developments in the process of governance and management of privatization is more than medium and it revealed that global

19 Governance and Management Issues of Privatization: Theory & Practice 27 developments are positively effective in the governance and management of privatization. 2. The Effect of Economic Policy Stability in Governance and Management of Privatization. The following table and diagram show the percentage of the individuals who responded to this question: Table-5.5 Economic policy stability Valid very high high Medium low very low Frequency Percent Valid Percent Cumulative Percent Illustration Very high High Medium Low Very low

20 Privatization of Industries in Iran: A Case Study of Tehran City 28 From the total respondents to the question, 5.3% consider the effect of economic policy stability in the governance and management of privatization very high, 49.2% high, 23.8% medium, 15.9% low and 3.2% very low. This question is tested statistically: The effect of economic policy stability in governance and management of privatization is medium: H The effect of economic policy stability in governance and management of privatization is not medium: H 1 The results of testing this assumption are indicated in the following table: Ranks MED - Economic Policy stability Negative Ranks Positive Ranks Ties a. MED < economic policy stability N Mean Rank Sum of Ranks 48 a b c 63 b. MED > economic policy stability c. MED = economic policy stability The number of cases in which the effect of economic policy stability in governance and management of privatization is less than medium is 7, more than medium is 48 and the number of the cases that are equal medium is 8. The following table tests this assumption: Test Statistics b MED - economic Policy stability Z Asymp. Sig. (2-tailed) a. a. Based on Positive Ranks. b. Wilcoxon Signed Ranks Test.

21 Governance and Management Issues of Privatization: Theory & Practice 29 Since the significance level is less than.5, zero assumption is disapproved. In other words, the effect of economic policy stability in governance and management of privatization is not medium. Now, with regard to the above table and re-examination of the number of positive and negative ranks, it is concluded that the effect of economic policy stability in governance and management of privatization is more than medium and it revealed that economic policy stability is effective in governance and management of privatization. 3. The Influence of Autonomy in the Process of Governance and Management of Privatization. The following table and diagram show the percentage of the individuals who responded to this question: Table-5.6 Autonomy in governance and management Valid Missing very high high Medium low very low System Cumulative Frequency Percent Valid Percent Percent

22 Privatization of Industries in Iran: A Case Study of Tehran City 21 Illustration Very high High Medium Low Very low From the total respondents to this question, 19% consider the influence of autonomy in the process of governance and management of privatization very high, 44.4% high, 2.6% medium, 7.9% low, and 4.8% very low. It should be noted that 3.2% have not responded to this question. This question is tested statistically: The influence of autonomy in the process of governance and management of privatization is medium: H The influence of autonomy in the process of governance and management of privatization is not medium: H 1

23 Governance and Management Issues of Privatization: Theory & Practice 211 The results of testing this assumption are indicated in the following table: Ranks MED Autonomy in Negative Ranks governance and Positive Ranks management Ties N Mean Rank Sum of Ranks 4 a b 13 c 61 a. MED < Autonomy in governance and management b. MED > Autonomy in governance and management c. MED = Autonomy in governance and management The number of cases in which the influence of autonomy in the process of governance and management of privatization is less than medium is 8, more than medium is 4 and the number of the cases that are equal medium is 13. The following table tests this assumption: Test Statistics b MED Autonomy in governance and management Z Asymp.Sig.(2-tailed) a.7 a. Based on Positive Ranks. b. Wilcoxon Signed Ranks Test Since the significance level is less than.5, zero assumption is rejected. In other words, the influence of autonomy in the process of governance and management of privatization is not medium. Now, with regard to the above table and re-examination of the number of positive and negative ranks, it can be concluded that the influence of autonomy in the process of governance and management of privatization is more than medium and it revealed that autonomy is positively effective in the process of governance and management of privatization.

24 Privatization of Industries in Iran: A Case Study of Tehran City The Influence of Flexible Governance and Management in the Process of Privatization. The following table and diagram show the percentage of the individuals who responded to this question: Valid Missing Table-5.7 Flexible governance and management very high high Medium low very low System Cumulative Frequency Percent Valid Percent Percent Illustration Very high High Medium Low Very low From the total respondents to the above question, 19% consider the influence of flexible governance and management of privatization very high, 31.7% high, 22.2% medium, 17.5% low and 4.8% very low. It should be noted that 4.8% have not responded to this question.

25 Governance and Management Issues of Privatization: Theory & Practice 213 This question is tested statistically: The influence of flexible governance and management in the process of privatization is medium: H The influence of flexible governance and management in the process of privatization is not medium: H 1 The results of testing this assumption are indicated in the following table: MED Flexible in governance and management Negative Ranks Positive Ranks Ties Ranks N Mean Rank Sum of Ranks 32 a 14 b a. MED < flexible in governance and management b. MED > flexible in governance and management c. MED = flexible in governance and management 14 c The number of cases in which the influence of flexible governance and management in the process of privatization is less than medium is 14, more than medium is 32 and the number of the cases that are equal medium is 14. The following table tests this assumption: Test Statistics b MED Flexible in governance and management Z Asymp.Sig.(2-tailed) a.7 a. Based on Positive Ranks. b. Wilcoxon Signed Ranks Test Since the significance level is less than.5, zero assumption is rejected and H1 is accepted. In other words, the influence of flexible governance and management in the process of privatization is not medium. Now, with regard to the above table and re-examination of the number of positive and negative ranks, it

26 Privatization of Industries in Iran: A Case Study of Tehran City 214 is concluded that the influence of flexible governance and management in the process of privatization is more than medium and it is accepted that flexible governance and management can be positively effective in the process of privatization. 5. The Influence of Transparency in Decision-making in Governance and Management of Privatization. The following table and diagram show the percentage of the individuals who responded to this question: Table-5.8 Valid Missing very high high Medium low very low System Transparency in decision-making Frequency Percent Valid Percent Cumulative Percent Illustration Very high High Medium Low Very low

27 Governance and Management Issues of Privatization: Theory & Practice 215 From the total respondents to the above question, 27% consider the influence of transparency in decision-making in governance and management of privatization very high, 41.3% high, 2.6% medium, 6.3% low and 1.6% very low. It should be noted that 3.2% have not responded to this question. This question is tested statistically: The influence of transparency in decision-making in governance and management of privatization is medium: H The influence of transparency in decision-making in governance and management of privatization is not medium: H 1 The results of testing this assumption are indicated in the following table: MED - transparency in decision-making Negative Ranks Positive Ranks Ties Ranks a. MED < transparency in decision-making b. MED > transparency in decision-making c. MED = transparency in decision-making N Mean Rank Sum of Ranks 43 a b c 61 The number of cases in which the influence of transparency in decisionmaking in governance and management of privatization is less than medium is 5, more than medium is 43 and the number of the cases that are equal medium is 13. The following table tests this assumption: Test Statistics b Z Asymp. Sig. (2-tailed) MEDtransparency in decision making a. a. Based on Positive Ranks. b. Wilcoxon Signed Ranks Test

28 Privatization of Industries in Iran: A Case Study of Tehran City 216 Since the significance level is less than.5, zero assumption is rejected. In other words, the influence of transparency in decision-making in governance and management of privatization is not medium. Now, with consideration to the above table and re-examination of the number of positive and negative ranks, it is concluded that transparency in decision-making in governance and management of privatization is more than medium and it revealed that transparency in decisionmaking is positively effective in governance and management of privatization. 6. The Effect of Availability of Government Officials for Consultation in Governance and Management of Privatization. The following table and diagram show the percentage of the individuals who responded to this question: Table-5.9 Availability of government officials Valid high Medium low very low Cumulative Frequency Percent Valid Percent Percent Illustration High Medium Low Very low

29 Governance and Management Issues of Privatization: Theory & Practice 217 From the total respondents to the above question, 14.3% consider the effect of availability of government officials for consultation in governance and management of privatization high, 25.4% medium, 34.9% low and 25.4% very low. This question is tested statistically: The effect of availability of government officials for consultation in governance and management of privatization is medium: H The effect of availability of government officials for consultation in governance and management of privatization is not medium: H 1 The results of testing this assumption are indicated in the following table: MED - Availability of government officials for consultation Negative Ranks Positive Ranks Ties The number of cases in which the effect of availability of government officials for consultation in governance and management of privatization is less than medium is 38, more than medium is 9 and the number of the cases that are equal medium is 16. The following table tests this assumption: Z Ranks a. MED < Availability of government officials b. MED > Availability of government officials c. MED = Availability of government officials Test Statistics b Asymp. Sig. (2-tailed) a. Based on Positive Ranks. MED - Availability of government officials for consultation b. Wilcoxon Signed Ranks Test. N Mean Rank Sum of Ranks 9 a b c a.

30 Privatization of Industries in Iran: A Case Study of Tehran City 218 Since the significance level is less than.5, zero assumption is rejected and H1 is accepted. In other words, the effect of availability of government officials for consultation in governance and management of privatization is not medium. Now, with regard to the above table and re-examination of the number of positive and negative ranks, it is concluded that the effect of availability of government officials for consultation in governance and management of privatization is less than medium and it revealed that availability of government officials for consultation is not positively effective in the process of governance and management of privatization. 7. The Influence of the Existing Guidelines in Governance and Management of Privatization. The following table and diagram show the percentage of the individuals who responded to this question: Table-5.1 Existing guidelines Valid very high high Medium low very low Frequency Percent Valid Percent Cumulative Percent

31 Governance and Management Issues of Privatization: Theory & Practice 219 Illustration Very high High Medium Low Very low From the total respondents to the above question, 7.9% consider the influence of the existing guidelines in governance and management of privatization very high, 38.1% high, 33.3% medium, 15.9% low and 4.8% very low. This question is tested statistically: The influence of the existing guidelines in governance and management of privatization is medium: H The influence of the existing guidelines in governance and management of privatization is not medium: H 1

32 Privatization of Industries in Iran: A Case Study of Tehran City 22 The results of testing this assumption are indicated in the following table: Ranks MED - Existing guidelines Negative Ranks Positive Ranks Ties a. MED < Existing guidelines N Mean Rank Sum of Ranks 28 a b c 62 b. MED > Existing guidelines c. MED = Existing guidelines The number of cases in which the influence of the existing guidelines in governance and management of privatization is less than medium is 13, more than medium is 28 and the number of the cases that are equal medium is 12. The following table tests this assumption: Test Statistics b Z Asymp. Sig. (2-tailed) a. Based on Positive Ranks. MED - Existing guidelines a.4 b. Wilcoxon Signed Ranks Test. Since the significance level is less than.5, zero assumption is rejected. In other words, the influence of the existing guidelines in governance and management of privatization is not medium. Now, with regard to the above table and re-examination of the number of positive and negative ranks, it is concluded that the influence of the existing guidelines in governance and management of privatization is more than medium and it is accepted that the existing guidelines can be effective in governance and management of privatization.

33 Governance and Management Issues of Privatization: Theory & Practice The Influence of Strong Capital Market in Governance and Management of Privatization. The following table and diagram show the percentage of the individuals who responded to this question: Table-5.11 Effectiveness of a strong capital market Valid very high high Medium Frequency Percent Valid Percent Cumulative Percent Illustration Very high High Medium From the total respondents to the above question, 39.7% consider the influence of strong capital market in governance and management of privatization very high, 47.6% high and 12.7% medium.

34 Privatization of Industries in Iran: A Case Study of Tehran City 222 This question is tested statistically: The influence of strong capital market in governance and management of privatization is medium: H The influence of strong capital market in governance and management of privatization is not medium: H 1 The results of testing this assumption are indicated in the following table: MED - Effectiveness of a strong capital market Negative Ranks Positive Ranks Ties Ranks a. MED < Effectiveness of a strong capital market b. MED > Effectiveness of a strong capital market c. MED = Effectiveness of a strong capital market N Mean Rank Sum of Ranks 55 a b.. 8 c 63 The number of cases in which the influence of strong capital market in governance and management of privatization is less than medium is, more than medium is 55 and the number of the cases that are equal medium is 8. The following table tests this assumption: Z Test Statistics b Asymp. Sig. (2-tailed) a. Based on Positive Ranks. MED - effectiveness of a strong capital market a b. Wilcoxon Signed Ranks Test.. Since the significance level is less than.5, zero assumption is disapproved. In other words, the influence of strong capital market in governance

35 Governance and Management Issues of Privatization: Theory & Practice 223 and management of privatization is not medium. Now, with consideration to the above table and re-examination of the number of positive and negative ranks, it can be concluded that the influence of strong capital market in governance and management of privatization is more than medium and it revealed that a strong capital market is positively effective in the process of governance and management of privatization. 9. The Effect of Political Stability and Commitment to Privatization in the Process of Governance and Management of Privatization. The following table and diagram show the percentage of the individuals who responded to this question: Valid Missing very high high Medium low System Table-5.12 Effect of political stability Cumulative Frequency Percent Valid Percent Percent Illustration Very high High Medium Low

36 Privatization of Industries in Iran: A Case Study of Tehran City 224 From the total respondents to the above question, 22.2% consider the effect of political stability and commitment to privatization in the process of governance and management of privatization very high, 3.2% high, 28.6% medium and 12.7% low. It should be noted that 6.3% have not responded to this question. This question is tested statistically: The effect of political stability and commitment to privatization in the process of governance and management of privatization is medium: H The effect of political stability and commitment to privatization in the process of governance and management of privatization is not medium: H 1 The results of testing this assumption are indicated in the following table: MED Effect of political stability Negative Ranks Positive Ranks Ties a. MED < effect of political stability b. MED > effect of political stability c. MED = effect of political stability Ranks N Mean Rank Sum of Ranks 33 a 8 b 18 c The number of cases in which the effect of political stability and commitment to privatization in the process of governance and management of privatization is less than medium is 8, more than medium is 33, and the number of the cases that are equal medium is 18.

37 Governance and Management Issues of Privatization: Theory & Practice 225 The following table tests this assumption: Test Statistics b a. Based on Positive Ranks. b. Wilcoxon Signed Ranks Test. Since the significance level is less than.5, zero assumption is rejected. In other words, the effect of political stability and commitment to privatization in the process of governance and management of privatization is not medium. Now, with regard to the above table and re-examination of the number of positive and negative ranks, it is concluded that the effect of political stability and commitment to privatization in the process of governance and management of privatization is more than medium and it revealed that political stability and commitment to privatization is effective in the process of governance and management of privatization. Z Asymp.Sig.(2-tailed) MED Effect of political stability a. 1. The Influence of Government s Accountability in Governance and Management of Privatization. The following table and diagram show the percentage of the individuals who responded to this question: Table-5.13 Government s Accountability Valid Missing very high high Medium low very low System Cumulative Frequency Percent Valid Percent Percent

38 Privatization of Industries in Iran: A Case Study of Tehran City 226 Illustration Very high High Medium Low Very low From the total respondents to the above question, 11.1% consider the influence of government s accountability in governance and management of privatization very high, 31.7% high, 27% medium, 15.9% low and 9.5% very low. It should be noted that 4.8% have not responded to this question. This question is tested statistically: The influence of government s accountability in governance and management of privatization is medium: H The influence of government s accountability in governance and management of privatization is not medium: H 1

39 Governance and Management Issues of Privatization: Theory & Practice 227 The results of testing this assumption are indicated in the following table: Ranks N Mean Rank Sum of Ranks MED - significance Negative Ranks 27 a of accountability Positive Ranks 16 b of government Ties 17 c 6 a. MED < significance of accountability of government b. MED > significance of accountability of government c. MED = significance of accountability of government The number of cases in which the influence of government s accountability in governance and management of privatization is less than medium is 16, more than medium is 27 and the number of the cases that are equal medium is 17. The following table tests this assumption: Test Statistics b MED - Government s accountability Z Asymp. Sig. (2-tailed) a. Based on Positive Ranks. b. Wilcoxon Signed Ranks Test a.225 Since the significance level is more than.5, zero assumption is approved. In other words, the influence of government s accountability in governance and management of privatization is medium and it revealed that the influence of government s accountability in governance and management of privatization is not significant.

40 Privatization of Industries in Iran: A Case Study of Tehran City The Effect of Constitution s Amendments in Governance and Management of Privatization. The following table and diagram show the percentage of the individuals who responded to this question: Table-5.14 Constitution s Amendments Valid very high high Medium low Frequency Percent Valid Percent Cumulative Percent Illustration Very high High Medium Low From the total respondents to the above question, 12.7% consider the effect of constitution s amendments in governance and management of privatization very high, 39.7% high, 38.1% medium and 9.5% low.

41 Governance and Management Issues of Privatization: Theory & Practice 229 This question is tested statistically: The effect of constitution s amendments in governance and management of privatization is medium: H The effect of constitution s amendments in governance and management of privatization is not medium: H 1 The results of testing this assumption are indicated in the following table: MED - Constitution amendments Negative Ranks Positive Ranks Ties Ranks a. MED < constitution s amendments b. MED > constitution s amendments c. MED = constitution s amendments The number of cases in which the effect of constitution s amendments in governance and management of privatization is less than medium is 6, more than medium is 33 and the number of the cases that are equal medium is 24. The following table tests this assumption: N Mean Rank Sum of Ranks 33 a b c 63 Test Statistics b MED - Constitution s amendments Z Asymp. Sig. (2-tailed) a. Based on Positive Ranks. b. Wilcoxon Signed Ranks Test a. Since the significance level is less than.5, zero assumption is rejected. In other words, the effect of constitution s amendments in governance and management of privatization is not medium. Now, with regard to the above table

42 Privatization of Industries in Iran: A Case Study of Tehran City 23 and re-examination of the number of positive and negative ranks, it is concluded that the effect of constitution s amendments in governance and management of privatization is more than medium and it revealed that appropriate constitution s amendments can be positively effective in the process of governance and management of privatization. 12. The Influence of Confidence Level among Domestic Capitalists in Governance and Management of Privatization. The following table and diagram show the percentage of the individuals who responded to this question: Table-5.15 Confidence level among domestic capitalists Valid very high high Medium Cumulative Frequency Percent Valid Percent Percent Illustration Very high High Medium

43 Governance and Management Issues of Privatization: Theory & Practice 231 From the total respondents to the above question, 12.7% consider the influence of confidence level among domestic capitalists in governance and management of privatization very high, 34.9% high and 7.9% medium. This question is tested statistically: The influence of confidence level among domestic capitalists in governance and management of privatization is medium: H The influence of confidence level among domestic capitalists in governance and management of privatization is not medium: H 1 The results of testing this assumption are indicated in the following table: MED confidence level among domestic capitalists Negative Ranks Positive Ranks Ties Ranks a. MED < confidence level among domestic capitalists b. MED > confidence level among domestic capitalists c. MED = confidence level among domestic capitalists The number of cases in which the influence of confidence level among domestic capitalists in governance and management of privatization is less than medium is, more than medium is 59 and the number of the cases that are equal medium is 5. The following table tests this assumption: N Mean Rank Sum of Ranks 58 a b.. 5 c 63 Test Statistics b Z Asymp. Sig. (2-tailed) a. Based on Positive Ranks. MED - Confidence level among domestic capitalist b. Wilcoxon Signed Ranks Test a.

44 Privatization of Industries in Iran: A Case Study of Tehran City 232 Since the significance level is less than.5, zero assumption is disapproved. In other words, the influence of confidence level among domestic capitalists in governance and management of privatization is not medium. Now, with regard to the above table and re-examination of the number of positive and negative ranks, it is concluded that the influence of confidence level among domestic capitalists in governance and management of privatization is more than medium, i.e. the confidence level among domestic capitalists is positively effective in governance and management of privatization. 13. The Effect of Opposition from Labour Unions in Governance and Management of Privatization. The following table and diagram show the percentage of the individuals who responded to this question: Table-5.16 Valid Missing high Medium low very low System Opposition from labour unions Frequency Percent Valid Percent Cumulative Percent Illustration High Medium Low Very low

45 Governance and Management Issues of Privatization: Theory & Practice 233 From the total respondents to the above question, 3.2% consider the effect of opposition from labour unions in governance and management of privatization high, 12.7% medium, 44.4% low and 38.1% very low. It should be noted that 1.6% have not responded to this question. This question is tested statistically: The effect of opposition from labour unions in governance and management of privatization is medium: H The effect of opposition from labour unions in governance and management of privatization is not medium: H 1 The results of testing this assumption are indicated in the following table: MED - Opposition From labour unions Negative Ranks Positive Ranks Ties a. MED < Opposition from labour unions b. MED > Opposition from labour unions c. MED = Opposition from labour unions Ranks The number of cases in which the effect of opposition from labour unions in governance and management of privatization is less than medium is 52, more than medium is 2 and the number of the cases that are equal medium is 8. The following table tests this assumption: Test Statistics b Z Asymp. Sig. (2-tailed) MED- Opposition from labour unions a a. Based on Negative Ranks. b. Wilcoxon Signed Ranks Test. N Mean Rank Sum of Ranks 2 a b c 62.

46 Privatization of Industries in Iran: A Case Study of Tehran City 234 Since the significance level is less than.5, zero assumption is rejected. In other words, the effect of opposition from labour unions in governance and management of privatization is not medium. Now, with regard to the above table and re-examination of the number of positive and negative ranks, it is concluded that the effect of opposition from labour unions in governance and management of privatization is less than medium and it revealed that the opposition from labour unions has not been considered as an effective factor in governance and management of privatization in Iran. 14. The Effect of Existing Privatization Laws in Governance and Management of Privatization. The following table and diagram show the percentage of the individuals who responded to this question: Table-5.17 Existing privatization laws Valid Missing very high high Medium low very low System Frequency Percent Valid Percent Cumulative Percent Illustration Very high High Medium Low Very low

47 Governance and Management Issues of Privatization: Theory & Practice 235 From the total respondents to the above question, 6.3% consider the effect of existing privatization laws in governance and management of privatization very high, 31.7% high, 33.3% medium, 2.6% low and 4.8% very low. It should be noted that 3.2% have not responded to this question. This question is tested statistically: The effect of existing privatization laws in governance and management of privatization is medium: H The effect of existing privatization laws in governance and management of privatization is not medium: H 1 The results of testing this assumption are indicated in the following table: MED - Existing Negative Ranks privatization privatization laws Positive Ranks Ties a. MED < Existing privatization laws b. MED > Existing privatization laws Ranks The c. MED number = Existing of cases privatization in which laws the impact of existing privatiz The number of cases in which the effect of existing privatization laws in governance and management of privatization is less than medium is 16, more than medium is 24 and the number of the cases that are equal medium is 21. The following table tests this assumption: Test Statistics b N Mean Rank Sum of Ranks 24 a b c 61 a MED - Existing privatization laws Z Asymp. Sig. (2-tailed) a. Based on Positive Ranks. b. Wilcoxon Signed Ranks Test a.259