State ownership
From The Art and Popular Culture Encyclopedia
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State ownership (also called public ownership and government ownership) refers to property interests that are vested in the state or a public body representing a community as opposed to an individual or private party. State ownership may refer to ownership and control of any asset, industry, or enterprise at any level (national, regional, local or municipal); or to non-governmental public ownership. The process of bringing an asset into state ownership is called nationalization or municipalization. State ownership is one of the three major forms of property ownership, differentiated from private, cooperative and common ownership.
In market-based economies, state-owned assets are frequently managed and operated as joint-stock corporations with a government owning either all or a controlling stake of the shares. This form is often referred to as a state-owned enterprise. A state-owned enterprise might variously operate as a not-for-profit corporation, as it may not be required to generate a profit; as a commercial enterprise in competitive sectors; or as a natural monopoly. Governments may also use the profitable entities they own to support the general budget. The creation of a state-owned enterprise from other forms of public property is called corporatization.
In Soviet-type economies, state property was the dominant form of industry as property. The state held a monopoly on land and natural resources, and enterprises operated under the legal framework of a nominally planned economy, operating according to different criteria than state and private enterprises in capitalistic market and mixed economies.
State-owned enterprise
A state-owned enterprise is a commercial enterprise owned by a government entity in a capitalist market or mixed economy. Reasons for state ownership of commercial enterprises are that the enterprise in question is a natural monopoly or because the government is promoting economic development and industrialization. State-owned enterprises may or may not be expected to operate in a broadly commercial manner and may or may not have monopolies in their areas of activity. The transformation of public entities and government agencies into government-owned corporations is sometimes a precursor to privatization.
State capitalist economies are capitalist market economies that have high degrees of government-owned businesses.
See also
- State-owned enterprise
- Social ownership
- List of government-owned companies
- Municipalization
- Nationalization
- Public good
- Public sector
- Public finance
- Public property
