Another problem area closely linked to the import substitution debate is the state sector. Although reform ushered in private enterprise, state-owned industry remains the economy's dominant force. However, the state sector is staggering under massive debts, which in turn are threatening the stability of the nascent banking system. But she was in no doubt of the hurdles that must be cleared. Elements of a market economy have not yet been fully established.
Civil servants are weak and corruption is spreading.