While the legal underpinnings for a market economy are nearing completion, the new private sector is far from viable. Many of the socially-owned enterprises were bought by their former managers or by groups of their employees, most of whom have little knowledge of how to manage a business to increase profit rather than production. This is an issue for consideration as the FY 1999-2000 Strategic Plan is prepared. The competitive environment for business has improved, but much remains to be done particularly implementing basic laws, resolving enterprise debts, and developing specific regulations. Banks are still very conservative in their lending practices and lack critical risk assessment skills, and the banking system as a whole does not adequately serve the needs of the growing private sector.
Accounting standards are very weak.
The courts are still not trained and organized well enough to provide adequate protection to the business community. This environment discourages both domestic and foreign investment. Citizens, government and the media need to shift their mind-set from rule by government to rule by the people. The media, as the watchdog of democracy, performs a special role in this process. Accelerated development and growth of private enterprises.