Government-owned corporation

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A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, commercial government agency, public sector undertaking or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government. Their legal status varies from being a part of government to stock companies with a state as a regular stockholder. There is no standard definition of a government-owned corporation (GOC) or state-owned enterprise (SOE), although the two terms can be used interchangeably. The defining characteristics are that they have a distinct legal form and they are established to operate in commercial affairs. While they may also have public policy objectives, GOCs should be differentiated from other forms of government agencies or state entities established to pursue purely non-financial objectives.[1]

Government-owned corporations are common with natural monopolies and infrastructure such as railways and telecommunications, strategic goods and services (mail, weapons), natural resources and energy, politically sensitive business, broadcasting, demerit goods (alcohol) and merit goods (healthcare).

Definitions[edit]

GOCs can be fully owned or partially owned by government. As a definitional issue, it is difficult to determine categorically what level of state ownership would qualify an entity to be considered as "state-owned", since governments can also own regular stock, without implying any special interference. As an example, the Chinese Investment Corporation agreed in 2007 to acquire a 10% interest in the global investment bank Morgan Stanley, but it is unlikely that this would qualify the latter as a government-owned corporation. Government-owned or state-run enterprises are often the result of corporatization, a process in which government agencies and departments are re-organized as semi-autonomous corporate entities, sometimes with partial shares listed on stock exchanges.

The term 'government-linked company' (GLC) is sometimes used to refer to corporate entities that may be private or public (listed on a stock exchange) where an existing government owns a stake using a holding company. There are two main definitions of GLCs are dependent on the proportion of the corporate entity a government owns. One definition purports that a company is classified as a GLC if a government owns an effective controlling interest (>50%), while the second definition suggests that any corporate entity that has a government as a shareholder is a GLC.

A quasi-governmental organization, corporation, business, or agency (parastatal) or a "quasi-autonomous non-governmental organisation" (quango) is an entity that is treated by national laws and regulations to be under the guidance of the government but separate and autonomous from the government. While the entity may receive some revenue from charging customers for its services, these organizations are often partially or majorly funded by the government. They are usually considered highly important to smooth running of society and are sometimes propped up with cash infusions in times of crisis to help surmount situations that would bankrupt a normal privately owned business. They may possess law-enforcement authority, usually related to their functions.

Economic sectors[edit]

Government-owned corporations often operate in sectors where there is a natural monopoly, or where the government has strategic interest. However, government ownership of industry corporations is common.

Nationalization also forcibly converts a private corporation into a government-owned corporation.

In most OPEC countries, the governments own the oil companies operating on their soil. A notable example is the Saudi national oil company, Saudi Aramco, which the Saudi government bought in 1988 and changed its name from Arabian American Oil Company to Saudi Arabian Oil Company. The Saudi government also owns and operates Saudi Arabian Airlines, and owns 70% of SABIC, as well as many other companies. They are, however, being privatized gradually.

Commonwealth[edit]

In monarchical Commonwealth countries, particularly Australia, Canada and New Zealand, country-wide government corporations often use the style "Crown corporation." Equivalent terms include "State-owned enterprises" and "Crown entities" in New Zealand, and Government Business Enterprise (GBE) in Australia. Examples of Crown corporations include the Canadian Broadcasting Corporation and Air Canada before the latter underwent privatization. Cabinet ministers (Ministers of the Crown) often control the shares in such public corporations.

At the level of local government, territorial or other authorities may set up government corporations such as "Local Authority Trading Enterprises" (LATEs). Many local authorities establish services such as water supply as separate corporations or as a business unit of the authority.

Australia[edit]

In Australia the predominant term used for Commonwealth government-owned companies is "government business enterprise" (GBE). Various Australian states also have GBEs, especially with respect to the provision of water and sewerage, but many state-based GBEs were privatized in some states during the last decade of the twentieth century.

Commonwealth GBEs include:

Some of these corporations are overseen by the Department of Broadband, Communications and the Digital Economy.

Privatization[edit]

Former Commonwealth government-owned corporations include Telstra, established in the 1970s as Telecom Australia. Telstra, now Australia's leading telecommunications company, was privatized in 1997 by the government of John Howard. As of June 2010 Telstra owned a majority of the copper wire infrastructure in Australia (the rest is owned by Optus) and is pending sale to its former parent, the Australian government, for a non-binding amount of 11 billion Australian dollars, as ducts in the copper wire tunnels are needed to install the fiber optic cable.

In Victoria many GBEs were sold in the 1990s to reduce the state's level of debt. The State Electricity Commission of Victoria and the Gas and Fuel Corporation were the best-known government enterprises to be disaggregated and sold.

Canada[edit]

In Canada, state-owned corporations are referred to as Crown corporation, indicating that an organization is established by law, owned by the sovereign (either in right of Canada or a province), and overseen by parliament and cabinet. Examples of federal Crown corporations include:

Ministers of the Crown often control the shares in such public corporations, while parliament both sets out the laws that create and bind Crown corporations and sets their annual budgets.

Foreign SOEs are welcome to invest in Canada: in Fall 2013, British Columbia[3][4] and Alberta[5][6][7] signed agreements overseas to promote foreign direct investment in Canada. The Investment Canada Act governs this area federally. Prime Minister Stephen Harper is on record that the "government [needs] to exercise its judgement" over SOEs.[8]

Saskatchewan has maintained the largest number of Crown corporations, including

Crown corporations of British Columbia include

The province of Quebec maintains a strong socialist tendency, with Crown corporations that include

Privatization, or the selling of Crown corporations to private interests, has become common throughout Canada over the past 30 years. Petro-Canada, Canadian National Railway, and Air Canada are examples of former federal Crown corporations that have been privatized. Privatized provincial Crown corporations include Alberta Government Telephones (which merged with privately owned BC Tel to form Telus), BCRIC, Manitoba Telecom Services, and Potash Corporation of Saskatchewan.

New Zealand[edit]

In New Zealand, the terms used for government-owned companies include "state-owned enterprises" and "crown entities". Local government councils and similar authorities also set up government corporations, such as water supply companies and "local-authority trading enterprises" (LATEs) (New Zealand), as separate corporations or business unit of the councils concerned.

Government owned businesses which are the crown entities:

State-owned enterprises include:

State-owned enterprises which has been privatised and then renationalised:

United Kingdom[edit]

After extensive privatisation of the public sector during the Margaret Thatcher administration, there remain few statutory corporations in the UK. Ongoing privatisations lasted from the end of the 1970s, through the 1980s until 1990 with the privatisation of British Rail. After the Hatfield rail crash accident, the British government had to intervene and temporarily renationalise some companies.

Central government
Rescued banks
Devolved government
Local government

Europe[edit]

In Western Europe and Eastern Europe there was a massive nationalization throughout the 20th century, especially after World War II because of the influence of the Soviet Union style of government. Government control over so-called natural monopolies like industry was the norm. Typical sectors included telecommunications, power, petroleum, railways, airports, airlines, public transport, health care, postal services and sometimes banks. Many large industrial corporations were also nationalized or created as Government corporations, including among many British Steel, Statoil and Irish Sugar. 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.

A state-run enterprise needs to be distinguished from an ordinary limited liability corporation owned by the state. For example, in Finland, state-run enterprises (liikelaitos) are governed by a separate act. Even though responsible for their own finances, they cannot be declared bankrupt; the state answers for the liabilities. Stocks of the corporation are not sold and loans have to be government-approved, as they are government liabilities. In contrast, the state also owns controlling interest in ordinary limited liability corporations. A state-run enterprise is technically not always a corporation, it might also be a separate state entity, or simply a governmental agency acting as an enterprise, perhaps having its own budget. Conversely, the state can directly fund unprofitable business, such as railway services to remote areas, regardless of whether the operator is a private corporation.

Austria[edit]

  • ÖBB (national railway system of Austria, administrator of Liechtenstein's railways)
  • Hypo Group Alpe Adria: Austria nationalised this bank in 2009, and in 2014 its then-Chancellor feared its insolvency might have a similar effect to the Creditanstalt event of 1931.[10]
  • Verbund 51% SOE (electricity generator and provider)
  • Volksbank 43.3% SOE (retail banking group, with additional operations in Hungary, Romania and Malta)
  • ORF (broadcaster): funded from television licence fee revenue, dominant player in the Austrian broadcast media
  • Österreichische Industrieholding (ÖIAG): Austrian industry-holding stock corporation for partially or entirely nationalized companies, as of 2005:
    • 31.50% of the Oil producer OMV: an integrated international oil and gas company
    • 28.42% of the Telekom Austria: fixed line, mobile, data, and Internet communications services
    • 52.85% of the Österreichische Post: postal services
    • 100.00% of the ÖIAG-Bergbauholding
    • 100.00% of the Finanzmarkt Beteiligungs AG (FIMBAG)

Belgium[edit]

Region of Wallonia owns the:

Bulgaria[edit]

Croatia[edit]

Czech Republic[edit]

See Summary.

Finland[edit]

See Summary.

France[edit]

The Fonds stratégique d'investissement, a sovereign wealth fund initiated by Nicolas Sarkozy in October 2008 at the height of the Dexia crisis,[11] holds capital in approximately 50 firms, which are listed in the French wiki.

One significant piece of legislation in 2013 of the Hollande government is that for the constitution of the fr:Banque Publique d'Investissement, which has a mandate to encourage a German-patterned Mittelstand-like climate for France.[12][13] The former concubine of Hollande, Segolene Royale, was appointed to the vice-Chair directorship of the Bank, from which position she stated that the "BPI's purpose is not to do business nor to make profits".[14]

Agence des participations de l'État (APE) is a special agency of the French government managing the state's holdings in about 70 firms, including France Telecom, Renault and Air France.[15] It was established in 2004.[16] Among the fully owned corporations (51% or more) of the French Republic are:

The state of France owns a minority stake in:

Germany[edit]

Germany has not yet been able to divest itself of SOEs that were amassed by East Germany. The banking system in Germany is rife with SOEs, managed at the provincial Länder level, and that is one of the reasons for the delay in the Single Supervisory Mechanism banking oversight by the ECB.[20] This note about the German public bank system may help to explain matters.

Hungary[edit]

  • MOL Group (integrated petroleum and gas company).

Ireland[edit]

See summary.

Italy[edit]

Companies owned by the Ministry of Economy and Finances

Lithuania[edit]

Netherlands[edit]

Norway[edit]

See summary.

Poland[edit]

  • Polsteam, 3,000 employee steamship line

Portugal[edit]

Romania[edit]

Serbia[edit]

Slovakia[edit]

Slovenia[edit]

Slovenia is an ex-Yugoslavian republic. As such, its economy was largely state-owned prior to dissolution of that federation. The state still owns many enterprises, such as the banks, which in turn own such businesses as supermarkets and newspapers.[22]

Spain[edit]

See Summary

Sweden[edit]

Two types: Government-owned companies, which legally are normal companies but mainly or fully national owned. They are expected to be funded by their sales. A big customer might be the government or a government agency. The other type is Government agencies which might also do activities competing with private owned companies. They usually are funded by tax money but can also sell services.

Switzerland[edit]

Here is the government owned of the Swiss Confederation:

Russia[edit]

Government-owned Open joint-stock company

Examples:

Unitary enterprise

In Russia and some other post-Soviet states, a unitary enterprise (Russian: унитарное предприятие) is a commercial organization that have no ownership rights to the assets used in their operations. This form is possible only for state and municipal enterprises, operating with state or municipal property, respectively. The owners of the property of a unitary enterprise have no responsibility for its operation, and vice versa.

The assets of unitary enterprises belong to the Federal government, a Russian region, or a municipality. A unitary enterprise holds assets under the right of economic management (for both state and municipal unitary enterprises) or operative management (for state unitary enterprises only), and that such assets may not be distributed among the participants, nor otherwise divided. A unitary enterprise is independent in economic issues and obliged only to give its profits to the state. Unitary enterprises would have no right to set up subsidiaries, but, with the owner's consent, can open branches and representation offices.

State corporation

By contrast, a state corporation (Russian: государственная корпорация) is a non-profit organization which manages its assets as described in its charter. State Corporations are not obliged to submit to public authorities documents accounting for activities (except for a number of documents submitted to the Russian government) and, as a rule, are subordinate not to the government, but to the Russian president, and act to accomplish some important goal. Control by the Government is implemented on the basis of annual corporation meetings, an annual report on the audit opinion of accounting and financial reporting (accounting), as well as the conclusion of the auditing commission on the results of verification of financial (accounting) statements and other corporation documents. Any other federal government departments, organs of state power of subjects of the Russian Federation, and the local governments have no right to interfere in the activities of State corporations.

Asia[edit]

Afghanistan[edit]

In 2009, the Government of the Islamic Republic of Afghanistan formed the Afghan Public Protection Force (APPF) as a "state owned enterprise" subordinate to the Ministry of the Interior. By Presidential Decree, the APPF is mandated to replace all non-diplomatic private security companies by 20 March 2013 to become the sole provider of pay-for-service security contracts within Afghanistan.[23]

China (People's Republic of)[edit]

After 1949, all business entities in the People's Republic of China were created and owned by the government. In the late 1980s, the government began to reform the state-owned enterprise, and during the 1990s and 2000s, many mid-sized and small sized state-owned enterprises were privatized and went public. There are a number of different corporate forms which result in a mixture of public and private capital. In PRC terminology, a state-owned enterprise refers to a particular corporate form, which is increasingly being replaced by the listed company. State-owned enterprises are governed by both local governments and, in the central government, the national State-owned Assets Supervision and Administration Commission. As of 2011, 35% of business activity and 43% of profits in the People's Republic of China resulted from companies in which the state owned a majority interest. Critics, such as The New York Times, have alleged that China's state-owned companies are a vehicle for corruption by the families of ruling party leaders who have sometimes amassed fortunes while managing them.[24] Some major Chinese SOEs of which 275 are known as of March 2014 are listed below:

China, Republic of (Taiwan)[edit]

The founding father of the Republic of China and of the Kuomintang, Sun Yat-sen, was heavily influenced by the economic ideas of Henry George, who believed that the rents extracted from natural monopolies or the usage of land belonged to the public. Sun argued for Georgism and emphasized the importance of a mixed economy, which he termed "The Principle of Minsheng" in his Three Principles of the People.

"The railroads, public utilities, canals, and forests should be nationalized, and all income from the land and mines should be in the hands of the State. With this money in hand, the State can therefore finance the social welfare programs."[25]

Kuomintang leader, and later President of the Republic of China on the mainland and Taiwan, Chiang Kai-shek, crushed pro-communist worker and peasant organizations and the rich Shanghai capitalists at the same time. Chiang continued Sun Yat-sen's anti-capitalist ideology-Kuomintang media openly attacked the capitalists and capitalism, demanding government-controlled industry instead.[26]

The Kuomintang Muslim Governor of Ningxia, Ma Hongkui promoted state-owned monopoly companies. His government had a company, Fu Ning Company, which had a monopoly over commerce and industrial activity in Ningxia.[27]

Under the Kuomintang Muslim General Ma Bufang in Qinghai, industries and projects such as educational, medical, agricultural, and sanitation schemes were controlled by the state.[28]

The Chinese Muslim 36th Division (National Revolutionary Army) governed southern Xinjiang from 1934 to 1937. The General Ma Hushan was chief of the 36th Division. Chinese Muslims operated state-owned carpet factories.[29]

Corporations such as CSBC Corporation, Taiwan, CPC Corporation, Taiwan and Aerospace Industrial Development Corporation are owned by the state in the Republic of China.

India[edit]

In India, a government-owned corporation is termed a Public Sector Undertaking (PSU). This term is used to refer to companies in which the government (either the federal Union Government or the many state or territorial governments, or both) own a majority (51 percent or more) of the company equity. There are 251 PSU companies in India as of 2012.

Some examples include:

Indonesia[edit]

Government-owned corporations are easy to recognise by their names. Company names with suffix PERSERO mean that the company is wholly/majority owned by the government. The government takes control of the state corporations under one single ministry, the Ministry of State Enterprises, which acts like the CEO of a holding company. Some of the government-owned corporations are;

In January 2012, the Minister of State Enterprises decided to unite manufacturing companies and for the first stage PT Barata should acquire PT Bisma to make an effective manufacturing sector.[30]

Japan[edit]

In Japan, Japan Post was reorganized into Japan Post Group in 2007 as a material step of the postal privatization. It is currently wholly owned by the government, but is planned to be sold into private ownership. Japan Railways Group (JR), Nippon Telegraph and Telephone (NTT) and Japan Tobacco (JT) were formerly owned by the government.

Philippines[edit]

Government-owned and controlled corporations, or GOCCs, include a wide variety of different independent organizations. Some have a commercial purpose, such as the Philippine National Oil Company, while others like the Government Service Insurance System (GSIS), or the Philippine Institute for Development Studies fulfill more traditional government roles. The leadership, budget, and funding of the corporations are independent of the Philippine National Government but to varying degrees. Some such as the National Food Authority receive quite a bit of subsidy from the National Government.[31]

Singapore[edit]

The economy of Singapore is dominated by government-linked corporations that produce as much as 60% of the country's GDP.[32] These government-linked companies are owned by a government holding agency, Temasek Holdings. Notable Government-linked corporations include Singapore Airlines, SingTel, ST Engineering, MediaCorp and Singapore Temasek Holdings.

Thailand[edit]

Here is the government owned corporation owned by the kingdom of Thailand. The Kingdom of Thailand as shareholding of 51% or more.

Africa[edit]

Kenya[edit]

Parastatals in Kenya, partly from a lack of expertise and endemic corruption, have largely inhibited economic development. In 1979, a presidential commission went as far as saying that they constituted "a serious threat to the economy", and, by 1989, they had still not furthered industrialization or fostered the development of a Black business class.[33]

Several Kenyan SOEs have been privatized since the 1980s, with mixed results.[34][35]

South Africa[edit]

In South Africa "the Department of Public Enterprises is the shareholder representative of the South African Government with oversight responsibility for state-owned enterprises in key sectors, including: Defence, Energy, Forestry, ICT, Mining and Transport". The current (March 2011) Minister of Public Enterprises is Malusi Gigaba.[36]

The corporate entities that this department is responsible for are:

  • Alexkor – Mining sector (diamond mining)
  • Broadband Infraco – ICT sector (national backbone and international connectivity)
  • Denel – Aerospace and Defence sector (armaments manufacturer)
  • Eskom – Energy sector (national electricity utility)
  • PBMR – Energy sector (development of Pebble Bed Modular Reactor nuclear energy technology)
  • South African Airways – Transport sector (international airline)
  • SA Express – Transport sector (regional and feeder airline)
  • SAFCOL – Forestry sector (manages forestry on state owned land)
  • Transnet – Transport and related infrastructure sector (railways, harbours, oil/fuel pipelines and terminals)
  • Telkom SA – Telecommunications sector (national fixed line telephone network (PSTN))

Other corporate entities not under the Department of Public Enterprises include the South African Post Office and the South African Broadcasting Corporation.

Americas[edit]

Brazil[edit]

Government-owned companies are divided into public enterprises (empresa pública) and mixed-economy companies (sociedade de economia mista). The public enterprises are subdivided into two categories: individual – with its own assets and capital owned by the Union – and plural companies – whose assets are owned by multiple government agencies and the Union, which have the majority of the voting interest. Caixa Econômica Federal, Correios, Embrapa, and BNDES are examples of public enterprises. Mixed-economy companies are enterprises with the majority of stocks owned by the government, but that also have stocks owned by the private sector and usually have their shares traded on stock exchanges. Banco do Brasil, Petrobras, Sabesp, and Eletrobras are examples of mixed-economy companies.

Beginning in the 1990s, the federal government of Brazil launched a privatization program inspired by the Washington Consensus. Public-owned companies such as Vale do Rio Doce, Telebrás, CSN, and Usiminas (most of them mixed-economy companies) were transferred to the private sector as part of this policy.

United States[edit]

Government-Sponsored Enterprises[edit]

Government-sponsored enterprises (GSEs) are a group of financial services corporations created by the United States Congress. The United States GSEs are private corporations owned by their stockholders, rather than government-owned corporations. Their primary function is to generate profits for their stockholders, but they are structured and regulated by the U.S. government to enhance the availability and reduce the cost of credit to targeted borrowing sectors. Congress created the first GSE in 1916 with the creation of the Farm Credit System; it initiated GSEs in the home finance segment of the economy with the creation of the Federal Home Loan Banks in 1932; and it targeted education when it chartered Sallie Mae in 1972 (although Congress allowed Sallie Mae to relinquish its government sponsorship and become a fully private institution via legislation in 1995). The residential mortgage borrowing segment is by far the largest of the borrowing segments in which the GSEs operate. Together, the three mortgage finance GSEs (Fannie Mae, Freddie Mac, and the 12 Federal Home Loan Banks) have several[quantify] trillion dollars of on-balance sheet assets.[citation needed] The federal government possesses warrants which, if exercised, would allow them to take a 79.9% ownership share in the companies. The federal government has not currently[when?] exercised these warrants.

Government sponsored enterprises include:

Federal Government Chartered and Owned Corporations[edit]

The federal government chartered and owned corporations are a separate set of corporations chartered and owned by the federal government, which operate to provide public services, but unlike the federal agencies (Environmental Protection Agency, Bureau of Indian Affairs), or the federal independent commissions (e.g., the Federal Communications Commission, the Nuclear Regulatory Commission, etc.), they have a separate legal personality from the federal government, providing the highest level of political independence. They sometimes receive federal budgetary appropriations, but some also have independent sources of revenue. These include (as of this writing):

Federal Government Acquired Corporations[edit]

The federal government acquired corporations are a separate set of corporations that were not chartered or created by the federal government, but into which the federal government has obtained ownership and presently operates. These are corporations temporarily in possession of the government as a result of a seizure of property of a debtor to the government, such as a delinquent taxpayer. Usually these are awaiting auction, and most are too small to note.

Other Types in the United States[edit]

There exists a second level of sovereign government in the United States after the federal government, those of the several states of which compose the United States. State governments are bodies sovereign, like the federal government, and other sovereigns; they have sovereign existence deriving from the consent of the sovereign people of their territories who created them and wrote their state constitution; they are not bodies corporate, as they are not created by the acquis of the federal government and exist with or without that Government's consent. As sovereigns, they have the power to hold radical title to land, to exercise the four fundamental powers, taxation, eminent domain, police power, and escheat, as well as numerous other powers, including the power to grant charters, and implicit in that power to charter is the power to charter corporations, which they do, extensively. The vast majority of non-governmental corporations in the United States are chartered by the states of the United States, and not the federal government, this includes most charitable corporations (though some charities of national repute are chartered by the federal government, and not by a state government), non-profit corporations, and for-profit corporations. States, as sovereigns, also have the power to charter corporations that they own, control, or are responsible for the regulation and finance of. These include municipal corporations and state chartered and owned corporations. Municipal corporations are public corporations that have devolved, democratic control over local matters within a geographic region; they are often styled villages, towns, townships, boroughs, cities, or counties. Though these municipal corporations are often regulated and sometimes financed by the state government, and often can collect taxes, they are arms-length, non-sovereign, devolved public entities, and a state government which charters them is not legally responsible for their debts in the event of a municipal bankruptcy. State government chartered and owned corporations are numerous and provide public services. Examples include North Dakota Mill and Elevator and South Dakota Public Broadcasting. Generally speaking, a statute passed by a state legislature specifically sets up a government-owned company in order to undertake a specific public purpose with public funds or public property. Lotteries in the United States are also run by government corporations, such as the Georgia Lottery Corporation and many others.

There exists a third level of sovereign government in the United States as well, the sovereignty of the Native American tribal governments. Native American tribes are comprehended as ancient sovereigns, established by their sovereign people since time immemorial, and recognized as sovereign by the federal government of the United States as well as the several states, and as such, the Native American (and Alaska Native) tribal governments have rights appertaining to sovereigns, including the power to hold radical title to land, to exercise the four fundamental powers, taxation, eminent domain, police power, and escheat, as well as other powers, for instance, the power to charter corporations and undertake public undertakings that might benefit their tribal citizens, Native Americans and Alaska Natives also being citizens of their respective U.S. state, and also citizens of the United States. For example, a tribal council could establish a public service broadcaster along the lines of Ireland's Raidió Teilifís Éireannan, partially fund it with a television licence on tribal land and partially through advertising as a means of uniting the tribe and giving it a voice as well as a commercial venture.

The Alaska Natives are particularly advanced in using their tribal sovereignty to incorporate corporations that are owned by and for the benefit of their tribal citizens and often compete in highly competitive economic sectors through the Alaska Native Regional Corporations. The Native American tribes in the lower 48 states often use their sovereignty and their ability to charter to compete using regulatory easements; for instance, Native American tribal corporations often trade in goods that are highly taxed in surrounding states (such as tobacco), or engage in activities that surrounding states have (for reasons of public policy) forbidden, such as the operation of casinos or gaming establishments. Most of these endeavors have proven very successful for Native American tribal sovereigns and their tribal corporations, bringing wealth into the hands of Native Americans.

Uruguay[edit]

Uruguay had the first welfare state of Latin America under the presidency of José Batlle y Ordoñez in 1904. Government-owned corporations monopolize services such as electricity (UTE), land-line communications (Antel) and water (OSE). Antel competes with private corporations in the cell-phone lines and international telephony markets.[citation needed] In 1992, under the presidency of Luis Alberto Lacalle, the government attempted to privatize all its companies, following the neoliberal Washington Consensus. However, a referendum won by 75% of the population kept the companies in the hands of the government. By the end of his term, president Lacalle alleged that he had achieved a successful modernization of the companies, which had made them more efficient.

Summary[edit]

In this list, government-owned corporations are classified on their legal status: silver color represents legal monopolies, where no competition is permitted; light green represents a corporation that has private competitors; yellow means that although competition is legally permitted, there are no other corporations de facto; uncolored refers to a free market, regulated or not.

Government corporations by field and by country
Postal Railways Pharmacy Gambling Alcohol Health care Universities Telephone Broadcasting Oil & Gas Energy Water Airports Highways
Argentina mix (Correo Argentino) no mix (LIFSE) yes mix (INV) mix mix (public universities) no mix (TV Pública Digital, LRA Radio Nacional, Télam) yes (YPF) mix (Enarsa, CNEA) mix mix (EZE, CRD, BHI, etc.) mix
Australia Yes (Australia Post) monopoly on postal delivery of letters to 250g mix (Australian Rail Track Corporation; varies by State) mix (PBS funding only; no retail competition) mix (varies by State) no mix (Medicare) mix no mix (ABC, SBS) no mix (varies by State) mix (varies by State) mix (varies by State) mix (varies by State)
Belgium Yes (Bpost) yes (NMBS/SNCB) no mix (Nationale Loterij/Lotterie Nationale) no mix mix mix (Belgacom) mix (VRT, RTBF, BRF) no mix mix yes
Brazil Yes (Correios) mix (pt:VALEC, pt:CBTU) no yes (Caixa Econômica Federal) mix (ethanol only) mix (SUS) mix mix (Telebras) mix (Agência Brasil) mix (Petrobras) mix (Eletrobras) mix (varies by State) mix (Infraero) no
Canada Yes (Canada Post) mix (Via Rail), passenger rail; freight is private. no varies by province varies by province (LCBO, SAQ, SLGA) yes 95% publicly governed charitable trusts varies by province (Sasktel) mix (CBC) private enterprise favored varies by province (Hydro-Québec, BC Hydro, Hydro One, Manitoba Hydro, Nalcor, SaskPower) varies by province publicly governed by local authority in trust; see above 95% provincial government owned; except 407 ETR
Chile Yes
(Correos de Chile)
yes (EFE) no mix no yes
(FONASA)
mix
no yes
(Televisión Nacional de Chile)
yes (ENAP) no no mix
(SCL, Etc.).
mix
Colombia Yes (4-72) no no mix (Etesa) [a] varies by department Nueva EPS mix (Universidad Nacional), plus various local ones mix (Telefónica Telecom) (Empresas Públicas de Medellín) mix (Radio Televisión Nacional de Colombia) mix (Ecopetrol) (ISA Emgesa) mix
Czech Republic Yes (Česká pošta) yes (České dráhy) no yes (Sazka) no yes (VZP) yes (České Radiokomunikace) mix (Česká televize) (ČRo) no yes (ČEZ Group)
Denmark Yes (Post Danmark) mix (Banedanmark, DSB) no yes (Danske Spil) no mix mix (public universities; vast majority of all universities) mix mix (DR) mix (Energinet.dk) mix (DONG Energy) municipalities mix (Københavns Lufthavne) yes (Helsingørmotorvejen)
Finland De facto (Itella) de facto (VR) no yes (Veikkaus, RAY, Fintoto) yes (Alko) mix (municipal) yes mix (TeliaSonera) mix (YLE) de facto (Neste) mix (Fortum) yes (municipal) yes (Finavia) mix (Destia)
France Yes
(La Poste)
yes (SNCF) no mix
(Française Des Jeux)
no mix mix mix (Orange S.A.) mix (France Télévisions) no mix (Électricité de France, CEA) mix mix mix
Germany Mix
(Deutsche Post)
mix (DB) no no no mix (BG) mix mix (DTAG) mix (ARD) no mix (Stadtwerke Köln) mix yes (states) yes (by federal and state governments)
Greece De facto
(ELTA)
de facto (OSE, TrainOSE) no mix
(OPAP)
no mix (ESY) yes mix (OTE) mix (ERT) mix (ELPE) mix (DEI) mix
Iceland De facto (Íslandspóstur) no railways in Iceland no no gambling in Iceland yes (ÁTVR) mix mix no mix (RÚV) no oil industry in Iceland mix
India Yes (India Post) yes (Indian Railways) mix (IDPL) no mix, varies by state (BEVCO, TASMAC) mix mix mix (BSNL) mix (Doordarshan) mix (ONGC), IndianOil yes mix mix (Airports Authority of India) mix
Indonesia Yes (Pos Indonesia) yes (PT Kereta Api) yes (Kimia Farma) no no mix mix mix (Telkom Indonesia) mix (TVRI) mix (Pertamina) yes (Perusahaan Listrik Negara, Perusahaan Listrik Negara) mix yes (Angkasa Pura)
Republic of Ireland Yes (An Post) yes (Iarnród Éireann) no mix National Lottery, (Prize Bond, HRI, BnaC) no mix mix (Health Service Executive) no mix (RTE, Teilifís na Gaeilge) no mix (ESB, BMN) mix mix (Dublin Airport Authority, etc.) de facto (National Roads Authority)
Israel Yes (Do'ar Yisrael) de facto (Israel Railways) no yes (Mifal HaPayis) yes mix yes mix mix (IBA, IETV, Kol Yisrael etc.) mix (Oil Refineries) mix (IEC) de facto (Mekorot) yes (IAA) mix (Netivei Israel)
Italy De facto (Poste italiane) mix (FS) no yes (AAMS) no mix (SSN) mix no mix (RAI) mix (Eni) mix (Enel) mix mix (AOT, REG, ALL etc.) mix (ANAS)
Japan Mix
(JapanPost)
mix (JR) no yes (JRA etc.) no mix mix mix (NTT) mix (NHK) no no yes mix (NRT, Haneda, ITM, etc.)
Republic of Korea De facto
(Korea Post)
de facto
(Korea Railroad Corporation)
no yes (Kangwon Land Inc.) no de facto
(NHIS)
mix de facto
(KT Corporation)
mix
(KBS, EBS)
de facto
(KNOC, KOGAS)
de facto
(KEPCO)
de facto
(K-WATER)
yes
(KAC, ICN)
mix
(Korea Expressway Corporation)
Malaysia Yes (Pos Malaysia) de facto (KTMB, SSR, Prasarana) mix no no mix mix (public universities) mix (Telekom Malaysia) mix (RTM) yes (Petronas) mix (Tenaga Nasional, Sarawak Energy) mix mix (Malaysia Airports) de facto (Malaysian Federal Roads System, Malaysian State Roads system)
Mexico Mix (Servicio Postal Mexicano) mix (Ferrocarril Transistmico) mix (e.g. in public hospitals) no no mix (Mexican Social Security Institute, Institute for Social Security and Services for State Workers) mix (National Autonomous University of Mexico, National Polytechnic Institute and state universities among others) no mix (Once TV México, Notimex, XEIMT-TV) yes (Pemex) yes (electricity: CFE) mix
(varies by state/municipality)
mix (Aeropuertos y Servicios Auxiliares, Benito Juárez International Airport) mix (Caminos y Puentes Federales)
Netherlands No mix (Nederlandse Spoorwegen),[b] passenger rail. Freight is private no yes
(Holland Casino)
no mix yes no mix (Netherlands Public Broadcasting) no no yes
New Zealand Yes (NZ Post) yes (Kiwi Rail) no no no mix yes no mix (TVNZ) no mix (Genesis Energy, Meridian Energy, Mighty River Power, Solid Energy, Transpower New Zealand Limited) yes mix yes (State Highway network)
Norway Yes (Posten Norge) yes (NSB) no yes (Norsk Tipping) yes (Vinmonopolet) mix mix mix (Telenor) mix (NRK) mix (Statoil, Petoro) yes (Statkraft, and various municipally owned companies) mix mix Avinor
Peru Yes (Serpost) no no no no mix (EsSalud) yes (local ones, including (Universidad Mayor de San Marcos) no yes (TV Peru) yes (Petroperú) mix yes (only in local water supply and sewage services, including Sedapal)
Philippines Yes (PhilPost) yes (PNR) no yes (PAGCOR) no yes yes (UP) no mix (PTV) mix (PNOC) mix (NAPOCOR) mix
Portugal Yes (CTT) mix (Comboios de Portugal) no mix (Parpública) no mix mix mix (ANACOM) mix (Rádio e Televisão de Portugal) mix (Galp Energia) mix (REN) mix (Águas de Portugal) yes mix
Russia Yes (Russian Post) de facto (Russian Railways) no mix (Gosloto, etc.) no mix (Compulsory Health Insurance) mix mix (Rostelecom, TransTelekom) mix (VGTRK, 1TV, TVC, Public Television, Zvezda, RT, Voice of Russia via monopolies Russian Satellite Communications Company and RTRS) mix (Rosneft, Gazprom Neft via monopoly Transneft) mix (Inter RAO, Rosenergoatom, RusHydro, Gazprom via monopoly Russian Grids) mix mix de facto (federal highways, Rosavtodor, Avtodor)
Singapore Yes (SingPost) yes (SMRT, SBS) mix yes (Singapore Pools) mix mix (SingHealth) mix (NUS, NTU, SIT, SUTD) yes (SingTel) yes (MediaCorp) yes (SNOC) mix (Temasek) mix yes yes
Spain Yes (Correos) mix (FEVE, Renfe Operadora, Adif) no mix (Loterías y Apuestas del Estado) no mix (Spanish National Health System) mix mix mix (EFE, RTVE) mix (Enagas) mix (Red Electrica de España) mix mix (Aena) mix
Sweden De facto (Posten AB de facto (SJ, Green Cargo) mix (Apoteket) yes (Svenska Spel) yes (Systembolaget) mix yes mix (Telia) mix (SVT) no de facto (Vattenfall, Svenska Kraftnät) mix mix (Swedavia) yes (Svevia)
Switzerland Yes (Swiss Post) yes (SBB/CFF/FFS) mix (Novartis, Hoffmann-La Roche etc.) no no mix mix mix (Swisscom) mix (SRG SSR) no mix mix mix
Thailand Yes (Post) yes (State Rail) no (Pharmacy) yes (State Lotto) Alcohol Permit mix (MOPH) mix mix (Telcom) mix (Thai Television) mix (PTT PCL) yes (EGAT) yes yes
Turkey Yes (PTT) yes (TCDD) no yes (Millî Piyango İdaresi) no mix mix (state universities) no mix (TRT) mix (TPAO) mix mix (State Hydraulic Works) mix
United Arab Emirates Yes (Emirates Post) no mix no Liquor permit mix (GCC, Daman) mix yes (TRA) yes (DMI) mix (ENOC, ADNOC, etc.) mix (TAQA) yes mix
United Kingdom Mix (Royal Mail, Post Office Ltd) mix
(Northern Ireland Railways, East Coast) (Network Rail)[c]
no mix (Premium Bond) no mix (NHS) mix (University of Buckingham, BPP Holdings) no mix (BBC) no no Mix
(Scottish Water, Northern Ireland Water)
mix
United States Yes (USPS) mix (Amtrak), passenger rail; freight is private mix mix (State Lotteries) varies by state (ABC store states) mix (Medicare, Medicaid) mix (U.S. military service academies, public universities) mix mix (CPB, VOA) mix mix (TVA) mix mix mix (U.S. Routes)
Uruguay Yes (Correo Uruguayo) yes (AFE) no mix (Casinos del Estado) no mix mix (UdelaR) mix (ANTEL) mix (SODRE) mix (ANCAP) mix (UTE) yes mix
Venezuela Yes (Ipostel) yes (IFE) mix mix mix mix mix (SCV, ULA), UIV, etc. yes (CANTV) yes (TVes, ANTV, VTV) yes (PDVSA) mix (CVG) yes
  1. ^ Etesa is a company wholly owned by the Colombian government and holds the exclusive right to gambling activities. However, it sublicenses gambling permits to any private company who applies and fulfills legal requirements.
  2. ^ Nederlandse Spoorwegen is a company wholly owned by the Dutch government.
  3. ^ Network Rail is a private company whose debts are guaranteed by the UK Government, which has caused controversy over whether it is state owned or not.

See also[edit]

Notes[edit]

  1. ^ Profiles of Existing Government Corporations, pp. 1–16
  2. ^ a b c http://www.theaustralian.com.au/national-affairs/coalition-cold-on-privatisations/story-fn59niix-1226729602393#
  3. ^ "Premier Clark announces Jobs and Trade Mission to Asia"
  4. ^ "B.C. minister says Malaysian investment vindicates province’s bets on LNG sector" 7 Oct 2013 G+M
  5. ^ "Redford’s trip to China highlights petrochemical potential" 17 Sep 2013 FP
  6. ^ "Alberta Premier Alison Redford says China's investors want more details on rules and guidelines" 17 Sep 2013 Sun media
  7. ^ 24 Oct 2013 EnergyAsia release
  8. ^ "Foreign investment doesn’t need ‘absolute clarity: Harper" Toronto Star, 8 Nov 2013
  9. ^ PRIVATISATION DEBATE SHOULD BE RIGOROUS | Roger Kerr, New Zealand Business Roundtable Executive Director. Rogerkerr.wordpress.com (2011-01-17). Retrieved on 2013-07-12.
  10. ^ bloomberg.com: "Faymann Evokes 1931 Austria Creditanstalt Crash on Hypo Alpe" 17 Feb 2014
  11. ^ nouvelobs.com: "Sarkozy annonce la création d'un fonds d'investissement souverain" 24 Oct 2008
  12. ^ Kohler and Weisz: "Pour un nouveau regard sur le Mittelstand: Rapport au Fonds stratégique d'investissement", La Documentation Française, 2012
  13. ^ "AU NOM DE LA COMMISSION DES AFFAIRES ÉCONOMIQUES SUR LE PROJET DE LOI relatif à la création de la banque publique d’investissement"
  14. ^ latribune.fr: "BPI: Ségolène Royal vole la vedette au directeur général" 24 Apr 2013
  15. ^ "Business in France: The long arm of the state". The Economist. Retrieved 19 January 2014. 
  16. ^ "Agence des Participations de l'État". Site Internet de la direction générale du Trésor. Retrieved 19 January 2014. 
  17. ^ "Chinese Firm and France to Buy Stakes in Peugeot" 18 Feb 2014
  18. ^ "After Two Centuries, Peugeot Family Cedes Control" 19 Feb 2014
  19. ^ a b c DT: "Revamped Airbus lives up to the European dream" 6 Jan 2013
  20. ^ bloomberg.com: "ECB Bank Oversight Start Said to Be Delayed to Late 2014" 21 jun 2013
  21. ^ Felix Hüfner: The German Banking System: Lessons from the financial crisis, Economic Department Working Papers No.788, OECD, P.7. [1] ; accessed: 13.06.2011
  22. ^ a b c d chicagotribune.com: "Saved a state bailout, Slovenes question hefty banking bill" 16 Dec 2013
  23. ^ [2]: Official Afghan Public Protection Force Website.
  24. ^ Keith Bradsher (November 9, 2012). "China’s Grip on Economy Will Test New Leaders". The New York Times. Retrieved November 10, 2012. 
  25. ^ Simei Qing "From Allies to Enemies", 19
  26. ^ Parks M. Coble (1986). The Shanghai capitalists and the Nationalist government, 1927–1937. Volume 94 of Harvard East Asian monographs (2, reprint, illustrated ed.). Harvard Univ Asia Center. p. 263. ISBN 0-674-80536-4. Retrieved 2011-05-15. 
  27. ^ A. Doak Barnett (1968). China on the eve of Communist takeover. Praeger. p. 190. Retrieved 2010-06-28. 
  28. ^ Werner Draguhn, David S. G. Goodman (2002). China's communist revolutions: fifty years of the People's Republic of China. Psychology Press. p. 38. ISBN 0-7007-1630-0. Retrieved 2011-04-09. 
  29. ^ Andrew D. W. Forbes (1986). Warlords and Muslims in Chinese Central Asia: a political history of Republican Sinkiang 1911–1949. Cambridge, England: CUP Archive. p. 131. ISBN 0-521-25514-7. Retrieved 2010-06-28. 
  30. ^ "Dahlan Iskan to merge Barata with Boma Bisma Indra". January 14, 2012. 
  31. ^ Cabuag, V.S. (8 March 2012). "Government subsidies to GOCCs grew by 155% in 2011". Business Mirror. [dead link]
  32. ^ "CountryRisk Maintaining Singapore's Miracle". Countryrisk.com. Retrieved 2012-05-31. 
  33. ^ Himbara, David (1993). "Myths and Realities of Kenyan Capitalism". Journal of Modern African Studies 31 (1): 93–107. 
  34. ^ Productivity performance in Kenya. p. 43. 
  35. ^ Conflicting Information Over Kenya Airways' Layoffs. 
  36. ^ "About the DPE". DPE.gov.za. Retrieved 2012-05-31. 
  37. ^ Profiles of Existing Government Corporations, pp. 18, 24
  38. ^ Profiles of Existing Government Corporations, pp. 18, 44
  39. ^ Profiles of Existing Government Corporations, pp. 18, 60
  40. ^ Profiles of Existing Government Corporations, pp. 18, 50
  41. ^ Profiles of Existing Government Corporations, pp. 18, 77
  42. ^ Profiles of Existing Government Corporations, pp. 18, 82
  43. ^ Profiles of Existing Government Corporations, pp. 18, 105
  44. ^ Profiles of Existing Government Corporations, pp. 18, 120
  45. ^ Profiles of Existing Government Corporations, pp. 18, 125
  46. ^ Profiles of Existing Government Corporations, pp. 18, 131
  47. ^ Profiles of Existing Government Corporations, pp. 18, 145
  48. ^ Profiles of Existing Government Corporations, pp. 18, 149
  49. ^ Profiles of Existing Government Corporations, pp. 18, 165
  50. ^ Profiles of Existing Government Corporations, pp. 18, 180
  51. ^ Profiles of Existing Government Corporations, pp. 18, 162
  52. ^ Profiles of Existing Government Corporations, pp. 18, 168
  53. ^ Profiles of Existing Government Corporations, pp. 18, 214

References[edit]

Profiles of Existing Government Corporations—A Study Prepared by the U.S. General Accounting Office for the Committee on Government Operations (pdf), Washington, DC: U.S. Government Printing Office, 1988, p. 301, GAO/AFMD-89-43FS Document: H402-4 . Alternate location:

Further reading[edit]