Page 73 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.70, # 1, 2013, pp. 46-76

development. We believe that expansion of the operation of such companies is

very important and has significant impact on the national economy.

Nowadays establishment of state-owned entities within the non-oil sector

would turn into the pushing force of the industry. This is due to the fact that it

takes long time for the private sector to create the large company. Therefore the

establishment of such entity in oil extraction, chemistry, machine production and

electricity will be the optimal solution. In this case the application of optimal

operational mechanism in these entities plays the important role. At the same time

the possibility of weak justification of the decisions is high. Therefore participation

of Ministry of Economic Development, Finance Ministry, and Industry and Energy

Ministry is essential in such decisions. This committee should prepare the plan for

such entity and submit for approval of Cabinet of Ministers. In our opinion, the

corporative management in government organizations should be a benchmark

private sector. The major problem of industrial companies is absence of planning.

Increase the management level of the company requires the preparation of

development plan. Such plan provides the opportunity to evaluate the management

performance and gives the inputs for social economic development program.

Nowadays the low level of corporate management limits such planning process.

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