From Simple English Wikipedia, the free encyclopedia
A
state-owned enterprise
(
SOE
) is a government owned organisation which is started or
nationalised
by a
government
.
This may be to
- earn
profit
for the government,
- control a
monopoly
,
- provide products and services to citizens at a lower price,
- implement government
policies
,
- deliver products & services to the remote parts of the country.
The national or provincial government has majority
ownership
over these state owned enterprises. They are also known as
public sector undertakings
in some countries.
[1]
They have distinct legal forms. The government defines what they should do. (e.g., a state
railway company
may aim to make transportation more accessible and earn profit for the government).
[2]
They are common with
natural monopolies
.
In both
Eastern Europe
and
Western Europe
, there was a massive
nationalization
throughout the 20th century, especially after
World War II
. In the
Eastern Bloc
, countries adopted very similar policies and models to the
USSR
. Governments in Western Europe saw state intervention as necessary to rebuild economies shattered by war.
[3]
Government control over
natural monopolies
was common. Typical sectors included
telephones
,
electric power
,
fossil fuels
,
iron ore
,
railways
,
airlines
,
media
,
postal services
,
banks
, and
water
. Many large industrial corporations were also nationalized or created as government corporations, including, among many others:
British Steel Corporation
,
Statoil
and
Irish Sugar
.
[4]
- ↑
"State-Owned Enterprises Catalysts for public value creation?"
(PDF)
.
PwC
. Retrieved
16 January
2018
.
- ↑
Profiles of Existing Government Corporations, pp. 1?16
- ↑
"All Men Are Created Unequal"
.
The Economist
. 4 January 2014
. Retrieved
27 September
2015
.
Quote: ≪The wars and depressions between 1914 and 1950 dragged the wealthy back to earth. Wars brought physical destruction of capital, nationalisation, taxation and inflation≫
- ↑
Starting in the late 1970s and accelerating through the 1980s and 1990s many of these corporations were
privatized
, though many still remain wholly or partially owned by the respective governments.