Public sector waste, a huge problem for Lebanon

13-Feb-2018 09:00:00 / by Nabeela D'Sa

Nabeela D'Sa

This article gives anecdotal evidences that the Lebanese public sector is overstaffed and wasteful with many government entities being funded but without any purpose. This is the root cause of the chronic budget deficit which politicians are reluctant to address.

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Read more: http://www.dailystar.com.lb/Business/Local/2018/Feb-06/436994-lebanons-stagnant-public-bodies-command-million-dollar-budgets.ashx

Budget deficits are as common as the ‘common cold’ today. Unfortunately, a number of economies are suffering from mismanagement of the financial assets of the country. Moreover, the corruption in the government adds fuel to the fire.

How can a country get rid of its financial debts to third parties? How can a country stop borrowing from the World bank? And how can a country reach a point of solvency that is healthy and profitable for the entire economy?

Could it be a case of managing the country, its assets, debts, liabilities, cash reserves and so on just as a CEO would manage a business?

Most individuals reach the level of a CEO through their hard work and perseverance, but what more can a CEO learn to help his company grow? (or what more could the President / Prime Minister learn to help the country grow?) A doctor of business administration (DBA), that’s what!

A DBA is designed to help professionals reach a higher level of understanding through research and cognitive thinking capabilities, thus, allowing them to reach deep into the crevices of their organizations and make effective change for the betterment of the entire company.

It is easy to have a bird’s eye view of the company through the financial statements, but if you dig deeper into the documents and identify the various spokes that impact the profit or loss of the company, the respective department can then review performance and make tremendous impact on the solvency of the organization as a whole.

As an example, say we have a company made up of 5 departments; Sales, Marketing, Administrative, Finance and Logistics. Each department is linked to the other and contributes to the output of that department. From a costs perspective, if the marketing department were to identify better sources or platforms for marketing that would generate better leads, this would then translate into better sales for the organization increasing revenue, which would then impact the work load of the administrative department to complete the paperwork and documents. Finally, both finance and logistics are directly influenced by the number of sales and the accuracy of the documents submitted by the administrative departments. Furthermore, if logistics negotiates a better deal with the courier/freight forwarding companies then costs would drop and this would prove beneficial to the company as a whole. But only when a CEO or the CFO digs deep into the books and understands and researches. Something they will learn on the DBA!

Nabeela D'Sa

Written by Nabeela D'Sa

 

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