1.45

• Public Corporations


  • Owned wholly and solely by the state or central government
  • Usually are businesses which have been nationalized
  • Government does not directly operate the business and rather allocates a Board of Directors
• Social Objectives of Public Corporations


  • Try to keep prices low
  • Try to keep unemployment low
  • Try to provide a service
• Recently, public corporations


  Are reducing subsidies and operating more like a private sector business (corporation) due to the losses they were making
• New Objectives of Public Corporations


  • Reduce costs even if that means unemployment
  • Increase efficiency and work more like a private sector business
  • Close loss-making services
• Corporatization


  Policy of reducing subsidies and operating more like a private sector business
• Municipal Enterprises


  Free or very low costing services and goods provided by the government