Problems of Governance of TALCO as Strategic Enterprise

Abstract

The issue of regulation of strategic enterprises became important with the privatization development. Different scholars have different opinion on this issue: if one part of the scholars are for privatization of strategic enterprises for their better economic performance the other part is arguing against it, prioritizing the goals and sphere of influence of the government. From the practice of different countries, it can be said that due to different reasons, important strategic enterprises were given into private hands. The purpose of this paper is to identify the reasons why government want to regulate strategic enterprises. For this purpose, the literature review describes the cases of government regulation and privatization with the performance results of the companies before and after. The focus of this paper is the case of Tajik strategic enterprise TALCO (Tajik Aluminum Company), which has a significant influence almost in all spheres of economy. The paper describes the situation in the company, both from the point of view of governance and from that of economic performance. Focus will be on the application of the grabbing hand model to this particular case.