Comparative Public Administration
February 12, 2025
Australia is considered to be one of the most developed nations in the world. Up until now, the Australian economy has not seen any major recessions in the past twenty-five years. Many economic commentators consider this to be a remarkable feat. However, many analysts also believe that this reality may be about to change. Numerous […]
The expectancy theory was proposed by Victor Vroom of Yale School of Management in 1964. Vroom stresses and focuses on outcomes, and not on needs unlike Maslow and Herzberg. The theory states that the intensity of a tendency to perform in a particular manner is dependent on the intensity of an expectation that the performance […]
Several change management experts have argued that Bottom Up Strategy for Change Management yields effective results comparatively over Top Down Strategy of Change Management. The Top Down approach necessarily involves an element of compulsion, and the decisions are forced on the employees without taking any inputs from them. Top Down approach involves forceful implementation of […]
The Battle between Change Agents and Status Quo Adherents Every organization has its change agents who seek to take risks, disrupt the status quo, and introduce changes to steer the organization in a particular direction. On the other hand, there are also those who advocate the Status Quo and want the organization to treasure stability […]
Negotiations are Part and Parcel of our Daily Lives Negotiations are part and parcel of our lives. Whether it is bargaining with the vegetable vendor or haggling with the butcher, we are all exposed to negotiations as part of our existence. Thus, one cannot but master negotiating skills if one to has to navigate the […]
The public enterprises came into existence as a result of the expanding scope of public administration. The advent of the concept of welfare state after the Second World War and the increasing developmental initiative undertaken by Government across the world, the system of public enterprises was developed.
The government sells goods and services to the common people through the means of a state owned enterprise system which incorporates the characteristics of both public and private enterprises. For e.g. the metro train facility for commuting in big cities, developed, managed and run by the government.
The government operates in the areas which are of basic or strategic importance and also the areas that require huge investments beyond the scope of private enterprises. The public enterprises in India have been on a steady rise since their big show in the Third Five Year Plan and have engaged themselves in a number of economic activities like advancing loans, regulating trade and commerce, heavy machine manufacturing, chemical drugs and fertilizers, oil drilling etc.
The government of India boasts of five Maharatnas and nine Navratnas (ratna meaning gems) public enterprises which are engaged in myriad of economic and developmental activities in the country, e.g. The Steel Authority of India, Hindustan Aeronautics Limited, National Thermal Power Corporation etc.
The state owned enterprises play an important political, economic and developmental role in their respective countries. The public enterprises of the erstwhile Soviet Union comprised of 85% of the workforce of the country.
The growth of public enterprises also has its roots in the colonial pasts of the countries of Asia and Africa. The Government sector, the public administration and ultimately the public enterprises in these countries have been greatly influenced by the colonial powers that ruled them. India is a good example of this trend where even today the Railways are the biggest example of a successful public enterprise.
Even the countries with no colonial history like Iran and Turkey, the public enterprise was used a tool to bring about economic, political and social changes, particularly in Turkey after the demise of the Ottoman Empire and formation of the modern Turkey.
The history of public enterprises in the USA dates back in the nineteenth century and was characterized by the state chartered banks in which the Federal Government has significant portion of the stocks. The formation of the Panama Rail Road Company in 1904 was another victory of the public enterprise system.
The growth of public administration and enterprises reached its peak under Franklin D Roosevelt and the Tennessee Valley Authority became the most emulated model of public corporation.
There are several factors that have contributed the growth of public enterprises in the recent times. The governments have used it to guide and command the economy; they own the strategic industries, functions and agriculture and also try to fill the inadequacies of the private sector.
Public enterprises are also essential in bringing about national development. They are also used as political instrument to maintain political stability, prevent unrest and provide employment.
Public enterprises have also helped the earlier colonized and now developing economies of the world to decrease their dependency on other nations and become self sufficient. Monopoly, freedom to chose profitable projects; no taxes etc are other factors that have led to their growth.
Your email address will not be published. Required fields are marked *