Laboratoire de recherche en économie (EA 7263)

Informations pratiques

Sandrine Lardic
Mél :

EDEHN - Université du Havre
25, rue Philippe Lebon
76063 Le Havre cedex


Nos tutelles

Accueil > À La Une

Publication The Conversation

par Zouhair Ait Benhamou - publié le

Government ownership of certain businesses can ensure that citizens and industries have access to important commodities and services at affordable prices. But government ownership on its own doesn’t guarantee these outcomes.

Government’s participation in economic activity can open the door to corruption and fraud. The negative effects of the subsequent underperformance won’t be limited to state-owned enterprises. They spread throughout the economy, and eventually affect economic growth, unemployment, household income and consumption.

The only winners in this vicious circle are the minority of a few rich and politically powerful individuals. The poor families of low- and unskilled workers bear the brunt of a weak economy.

Par Margaret Chitiga-Mabugu, Helene Maisonnave, Martin Henseler & Ramos Emmanuel Mabugu
State-owned enterprises are companies in which government owns, directly or indirectly, more than 50% of the shares. Worldwide, states own 10% of the largest companies. In South Africa, state-owned enterprises play a significant role in the important sectors of mining, energy, communications, air and rail transport.
Often, state-owned enterprises receive advantageous treatment by the state. They may get discounted funding, government supported guarantees, direct subsidies and favourable regulatory treatment. They are also often exempted from antitrust enforcement and insolvency regulations.
Lastly, they are directly linked to the governmental budget through guarantees, bailouts, foreign investments and debts.
But state-owned enterprises are often vulnerable and prone to corruption. This can severely undermine their performance. In addition, governmental support can result in lower production efficiency and poor economic performance. This is because the protection they get often insulates them from competition.

Voir en ligne : Corruption in state-owned companies hurts low skilled workers the most