Privatization in Nepal

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University of Sunderland
IMPLEMENTATION OF PRIVATIZATION POLICY: AN EMPIRICAL STUDY FROM NEPAL; SUCCESS OR FAILURE By

Raj Kumar Maharjan (Registration Number: 059991668)

This paper was submitted in partial fulfillment of the requirements for the Masters of Business Administration (MBA) degree at University of Sunderland, School of Business, Graduate Business Program, Sunderland, U.K.

January 2010

A MASTER’S PROJECT IN BUSINESS ADMINISTRATION

BY RAJ KUMAR MAHARJAN REGISTRATION NUMBER: 059991668

“SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE MASTERS OF BUSINESS ADMINISTRATION (MBA) DEGREE” SUNDERLAND UNIVERSITY

APPROVED BY: ………………………. MR. CHRIS MARSHALL ITGM02 Module Leader Sunderland University.

DATE OF APPROVAL:

SUNDERLAND BUSINESS SCHOOL DISSERTATION DECLARATION. MBA

Statement of Originality and Authenticity I confirm that the dissertation I am submitting is an original and authentic piece of work written by myself that satisfies the University rules and regulations with respect to Plagiarism and Collusion. I further confirm that I have fully referenced and acknowledged all material incorporated as secondary resources in accordance with the Harvard system. I also certify that I have taken a copy of dissertation, which I will retain until the Board of Examiners has published the results, and which I will make available on request in pursuance of any appropriate aspect of the marking and moderation of the work within the University regulations.

Name: Raj Kumar Maharjan Registration Number: 059991668 Course: PGBM31 Date: 19th January 2010

Signed ………………………

Supervisors Signature ……………………

Date ……………………….

Table of Contents
List of Tables List of Figure List of boxes Abbreviations Acknowledgement iv iv iv v vii

Abstracts Chapter One 1.0 1.1 Introduction Privatization: History of Nepal 1.1.1 1.2 Privatization Process in Nepal

1 2-7 2 3 3 4 4 5 7 8-20 8 10 10 11 12 13 15 17 18 18 19 20 i

Aims and Objectives of the Research 1.2.1 1.2.2 Objectives of the Research Method for Quantitative assessment of the Privatization Policy

1.3

Value of the Research

Chapter Two: Literature Review 2.0 2.1 Introduction: The Objectives of Review Concept of Privatization 2.1.1 2.1.2 2.2 Objectives of Privatization Methods of Privatization of PEs

Concept of Policy Implementation 2.2.1 Model of Implementation

2.3 2.4 2.5

Policy Implementation in a Democratic Regime Determinants of Success/ Failure in Privatization Adoption Impact of Privatization in Two Cases 2.5.1 2.5.2 Harisiddhi Brick and Tile Factory Bhrikuti Paper Mills

2.6

Summary

Chapter Three: Methodology 3.0 4.1 3.2 3.3 3.4 3.5 Introduction Plan of the Research Methodology Research Settings Research Objectives Research Methods Data Collection Methods and Sample Size 3.5.1 3.5.2 In-Depth Interview Primary Information 3.5.2.1 Questionnaire Survey 3.5.5.2 Field Survey 3.5.3 3.6 3.7 3.8 3.9 Secondary Information

21-28 21 21 22 22 22 23 23 24 24 25 26 26 26 27 28 28 29-33 29 29 29 30 31 32 32 33 34-47 34 34 34 ii

Data Analysis Ethical Issues Research Limitations Originality/ Value

3.10 Summary Chapter Four: Gaps Identified in the Literature Review 4.0 4.1 Introduction Strategic Analysis of Privatization 4.1.1 4.1.2 4.1.3 4.1.4 4.1.5 4.2 Corporate Governance Privatization and Market Based Leadership in Developing Economics Corruption Privatization and Competition Partial Privatization

Conclusion

Chapter Five : Data Result and Analysis of Findings 5.0 5.1 Introduction Primary Data Results and Analysis of Findings 5.1.1 Primary Data Result for Objective 1

5.1.2 5.2

Primary Data Result for Objective 2

35 42 42 42 43 43 44 44 45 46 46 46 46 47 47 47 47 48-51 48 48 49 51 52-67 68-84 85-96

Analysis of Findings 5.2.1 Analysis of Findings for Objective 1

5.2.1.1 Causes/ Factors and Process of Privatization in Nepal 5.2.1.2 Present Legal and Institutional Settings 5.2.1.3 Main...
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