State ownership

State ownership (also called public ownership and government ownership) is the ownership of an industry, asset, or enterprise by the state or a public body representing a community as opposed to an individual or private party.[1] Public ownership specifically refers to industries selling goods and services to consumers and differs from public goods and government services financed out of a government’s general budget.[2] Public ownership can take place at the national, regional, local, or municipal levels of government; or can refer to non-governmental public ownership vested in autonomous public enterprises. Public ownership is one of the three major forms of property ownership, differentiated from private, collective/cooperative, and common ownership.[3]

In market-based economies, state-owned assets are often managed and operated as joint-stock corporations with a government owning all or a controlling stake of the company's 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, and thus according to different criteria than enterprises in market and mixed economies.

Nationalization process of transferring private or municipal assets to a central government or state entity. Municipalization is the process of transferring private or state assets to a municipal government.

Valsts ipasums Meistaru iela 23
A plaque marking state property in Riga, Latvia.

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.

Relation to socialism

Public ownership of the means of production is a subset of social ownership, which is the defining characteristic of a socialist economy. However, state ownership and nationalization by themselves are not socialist, as they can exist under a wide variety of different political and economic systems for a variety of different reasons. State ownership by itself does not imply social ownership where income rights belong to society as a whole. As such, state ownership is only one possible expression of public ownership, which itself is one variation of the broader concept of social ownership.[4][5]

In the context of socialism, public ownership implies that the surplus product generated by publicly owned assets accrues to all of society in the form of a social dividend, as opposed to a distinct class of private capital owners. There is a wide variety of organizational forms for state-run industry, ranging from specialized technocratic management to direct workers' self-management. In traditional conceptions of non-market socialism, public ownership is a tool to consolidate the means of production as a precursor to the establishment of economic planning for the allocation of resources between organizations, as required by government or by the state.

State ownership is advocated as a form of social ownership for practical concerns, with the state being seen as the obvious candidate for owning and operating the means of production. Proponents assume that the state, as the representative of the public interest, would manage resources and production for the benefit of the public.[6] As a form of social ownership, state ownership may be contrasted with cooperatives and common ownership. Socialist theories and political ideologies that favor state ownership of the means of production may be labelled state socialism.

State ownership was recognized by Friedrich Engels in Socialism: Utopian and Scientific as, by itself, not doing away with capitalism, including the process of capital accumulation and structure of wage labor. Engels argued that state ownership of commercial industry would represent the final stage of capitalism, consisting of ownership and management of large-scale production and manufacture by the state.[7]

Within the UK, public ownership is mostly associated with the Labour Party (a centre-left/democratic socialist party) specifically, due to the creation of Clause IV of the Labour Party Manifesto in 1918. Clause IV was written by Fabian Society member, Sidney Webb.

User rights

Valsts ipasums lit 1
A plaque marking state property in Jūrmala.

When ownership of a resource is vested in the state, or any branch of the state such as a local authority, individual use "rights" are based on the state's management policies, though these rights are not property rights as they are not transmissible. For example, if a family is allocated an apartment that is state owned, it will have been granted a tenancy of the apartment, which may be lifelong or inheritable, but the management and control rights are held by various government departments.[8]

Public property

There is a distinction to be made between state ownership and public property. The former may refer to assets operated by a specific state institution or branch of government, used exclusively by that branch, such as a research laboratory. The latter refers to assets and resources that are available to the entire public for use, such as a public park (see public space).

Criticism

In Neoclassical economic theory, the desirability of state ownership has been studied using contract theory. According to the property rights approach based on incomplete contracting (developed by Oliver Hart and his co-authors), ownership matters because it determines what happens in contingencies that were not considered in prevailing contracts.[9] The work by Hart, Shleifer and Vishny (1997) is the leading application of the property rights approach to the question whether state ownership or private ownership is desirable.[10] In their model, the government and a private firm can invest to improve the quality of a public good and to reduce its production costs. It turns out that private ownership results in strong incentives to reduce costs, but it may also lead to poor quality. Hence, depending on the available investment technologies, there are situations in which state ownership is better. The Hart-Shleifer-Vishny theory has been extended in many directions. For instance, some authors have also considered mixed forms of private ownership and state ownership.[11] Moreover, the Hart-Shleifer-Vishny model assumes that the private party derives no utility from provision of the public good. Besley and Ghatak (2001) have shown that if the private party (a non-governmental organization) cares about the public good, then the party with the larger valuation of the public good should always be the owner, regardless of the parties' investment technologies.[12] Yet, more recently some authors have shown that the investment technology also matters in the Besley-Ghatak framework if an investing party is indispensable[13] or if there are bargaining frictions between the government and the private party.[14]

See also

References

  1. ^ "Public Ownership". Oxford Dictionaries. Retrieved January 25, 2018. Ownership by the government of an asset, corporation, or industry.
  2. ^ Tupper, Allan (February 7, 2006). "Public Ownership". The Canadian Encyclopedia. Historica Canada. Retrieved January 25, 2018. public ownership generally refers to enterprises, wholly or partially government owned, which sell goods and services at a price according to use. According to this definition, government-owned railways, airlines, and utilities are examples of public ownership, but hospitals, highways and public schools are not.
  3. ^ Gregory, Paul R.; Stuart, Robert C. (2003). Comparing Economic Systems in the Twenty-First Century. Boston: Houghton Mifflin. p. 27. ISBN 0-618-26181-8. There are three broad forms of property ownership-private, public, and collective (cooperative).
  4. ^ Hastings, Mason and Pyper, Adrian, Alistair and Hugh (December 21, 2000). The Oxford Companion to Christian Thought. Oxford University Press. p. 677. ISBN 978-0198600244. Socialists have always recognized that there are many possible forms of social ownership of which co-operative ownership is one. Nationalization in itself has nothing particularly to do with socialism and has existed under non-socialist and anti-socialist regimes. Kautsky in 1891 pointed out that a ‘co-operative commonwealth’ could not be the result of the ‘general nationalization of all industries’ unless there was a change in ‘the character of the state’.
  5. ^ Ellman, Michael (1989). Socialist Planning. Cambridge University Press. p. 327. ISBN 0-521-35866-3. State ownership of the means of production is not necessarily social ownership and state ownership can hinder efficiency.
  6. ^ Arnold, Scott (1994). The Philosophy and Economics of Market Socialism: A Critical Study. Oxford University Press. p. 44. ISBN 978-0195088274. For a variety of philosophical and practical reasons touched on in chapter 1, the most obvious candidate in modern societies for that role has been the state. In the past, this led socialists to favor nationalization as the primary way of socializing the means of production…The idea is that just as private ownership serves private interests, public or state ownership would serve the public interest.
  7. ^ Frederick Engels. "Socialism: Utopian and Scientific (Chpt. 3)". Marxists.org. Retrieved 2014-01-08.
  8. ^ Clarke, Alison; Paul Kohler (2005). Property law: commentary and materials. Cambridge University Press. p. 40. ISBN 9780521614894.
  9. ^ Hart, Oliver (1995). "Firms, Contracts, and Financial Structure". Oxford University Press.
  10. ^ Hart, Oliver; Shleifer, Andrei; Vishny, Robert W. (1997). "The Proper Scope of Government: Theory and an Application to Prisons". The Quarterly Journal of Economics. 112 (4): 1127–1161. doi:10.1162/003355300555448. ISSN 0033-5533.
  11. ^ Hoppe, Eva I.; Schmitz, Patrick W. (2010). "Public versus private ownership: Quantity contracts and the allocation of investment tasks". Journal of Public Economics. 94 (3–4): 258–268. doi:10.1016/j.jpubeco.2009.11.009.
  12. ^ Besley, Timothy; Ghatak, Maitreesh (2001). "Government versus Private Ownership of Public Goods". The Quarterly Journal of Economics. 116 (4): 1343–1372. doi:10.1162/003355301753265598. JSTOR 2696461.
  13. ^ Halonen-Akatwijuka, Maija (2012). "Nature of human capital, technology and ownership of public goods". Journal of Public Economics. Fiscal Federalism. 96 (11–12): 939–945. doi:10.1016/j.jpubeco.2012.07.005.
  14. ^ Schmitz, Patrick W. (2015). "Government versus private ownership of public goods: The role of bargaining frictions". Journal of Public Economics. 132: 23–31. doi:10.1016/j.jpubeco.2015.09.009.
América TV

LS86 TV América TV La Plata is a television station located in La Plata, Buenos Aires, Argentina. The station is owned and operated by America TV S.A. América is also one of Argentina's five national television channels.

América TV maintains studio facilities and offices located in Palermo neighborhood of Buenos Aires; its transmitter is located in the Florencio Varela Partido, Buenos Aires Province. Outside of the Buenos Aires province, América is available on cable.

Cerrillos Hills State Park

Cerrillos Hills State Park is a state park of New Mexico, United States, located 16 miles (26 km) south of Santa Fe. Transferred to state ownership in 2009, it is New Mexico's newest state park. The hills in the park range in elevation from 6,000 feet (1,800 m) to 6,900 feet (2,100 m) above sea level. The new visitors' center is located in the village of Los Cerrillos.

The park does have numerous hiking trails.

Chebacco Lake

Chebacco Lake is located in Essex County in eastern Massachusetts, United States, within the borders of Essex and Hamilton. It is the largest of five bodies of water that make up the Chebacco Watershed.Chebacco Lake is designated as a Great Pond, putting it under state ownership but remaining open to public use.

Communism

In political and social sciences, communism (from Latin communis, "common, universal") is the philosophical, social, political, and economic ideology and movement whose ultimate goal is the establishment of the communist society, which is a socioeconomic order structured upon the common ownership of the means of production and the absence of social classes, money, and the state.Communism includes a variety of schools of thought, which broadly include Marxism and anarchism (anarcho-communism), as well as the political ideologies grouped around both. All of these share the analysis that the current order of society stems from its economic system, capitalism; that in this system there are two major social classes; that conflict between these two classes is the root of all problems in society; and that this situation will ultimately be resolved through a social revolution.

The two classes are the working class—who must work to survive and who make up the majority within society—and the capitalist class—a minority who derives profit from employing the working class through private ownership of the means of production.

The revolution will put the working class in power and in turn establish social ownership of the means of production, which according to this analysis is the primary element in the transformation of society towards communism.

Critics of communism can be roughly divided into those concerning themselves with the practical aspects of 20th century communist states and those concerning themselves with communist principles and theory.Marxism-Leninism and social democracy were the two dominant forms of socialism in the 20th century; social democracy advocates economic reform through gradual democratic legislative action rather than through revolution.

Dirigisme

Dirigisme or dirigism (from French diriger, meaning 'to direct') is an economic doctrine in which the state plays a strong directive role, as opposed to a merely regulatory role, over a capitalist market economy. As an economic doctrine, dirigisme is the opposite to laissez-faire, stressing a positive role for state intervention in curbing productive inefficiencies and market failures. Dirigiste policies often include indicative planning, state-directed investment, and the use of market instruments (taxes and subsidies).

The term emerged in the post-war era to describe the economic policies of France, which included substantial state-directed investment, the use of indicative economic planning to supplement the market mechanism, and the establishment of state enterprises in strategic domestic sectors. It resulted in an unprecedented economic and demographic growth, leading to the coinage of the term Trente Glorieuses ("Thirty Glorious [years]").

The term has subsequently been used to classify other economies that pursued similar policies, most notably the East Asian tiger economies, and more recently the economy of the People's Republic of China. A related concept is state capitalism.

Most modern economies can be characterized as dirigiste to some degree – for instance, the state may exercise directive action by performing or subsidizing research and development of new technologies, through government procurement (especially military) or through state-run research institutes.

Economy of Norway

The economy of Norway is a developed mixed economy with state-ownership in strategic areas. Although sensitive to global business cycles, the economy of Norway has shown robust growth since the start of the industrial era. The country has a very high standard of living compared with other European countries, and a strongly integrated welfare system. Norway's modern manufacturing and welfare system rely on a financial reserve produced by exploitation of natural resources, particularly North Sea oil.According to United Nations data for 2016, Norway together with Luxembourg (a small state) and Switzerland are the only three countries in the world with a GDP per capita above US$70,000 that are not island nations nor microstates.

Heidi Hautala

Heidi Anneli Hautala (born 14 November 1955) is a Finnish politician and Member of the European Parliament (MEP) from Finland. She is a member of the Green League, part of the European Green Party.

She is currently a Member of the European Parliament for the third time. Previously she held the post from 1995 to 2003 and 2009 to 2011 when she chaired the Subcommittee on Human Rights 2009–2011. She served as minister for international development and ownership steering issues in Jyrki Katainen's cabinet.

Industrial democracy

Industrial democracy is an arrangement which involves workers making decisions, sharing responsibility and authority in the workplace. While in participative management organizational designs workers are listened to and take part in the decision-making process, in organizations employing industrial democracy they also have the final decisive power (they decide about organizational design and hierarchy as well).In company law, the term generally used is co-determination, following the German word Mitbestimmung. In Germany, companies with more than 2000 employees (or more than 1000 employees in the coal and steel industries) have half of their supervisory boards of directors (which elect management) elected by the shareholders and half by the workers.

Although industrial democracy generally refers to the organization model in which workplaces are run directly by the people who work in them in place of private or state ownership of the means of production, there are also representative forms of industrial democracy. Representative industrial democracy includes decision-making structures such as the formation of committees and consultative bodies to facilitate communication between management, unions, and staff.

Krogerup

Krogerup Højskole (English: Krogerup Folk High School) is a folk high school located outside Humlebæk in Fredensborg-Humlebæk Municipality north of Copenhagen, Denmark. Founded in 1953, it is based in a former manor house built from 1772 to 1777.

Prince's Mansion, Copenhagen

The Prince's Mansion is a palatial Rococo-style mansion located at Frederiksholms Kanal in central Copenhagen, Denmark. It used to serve as the official residence of the Crown Prince of Denmark but now houses the National Museum of Denmark.

Privately held company

A privately held company, private company, or close corporation is a business company owned either by non-governmental organizations or by a relatively small number of shareholders or company members which does not offer or trade its company stock (shares) to the general public on the stock market exchanges, but rather the company's stock is offered, owned and traded or exchanged privately or over-the-counter. More ambiguous terms for a privately held company are closely held corporation, unquoted company, and unlisted company.

Though less visible than their publicly traded counterparts, private companies have major importance in the world's economy. In 2008, the 441 largest private companies in the United States accounted for US$1,800,000,000,000 ($1.8 trillion) in revenues and employed 6.2 million people, according to Forbes. In 2005, using a substantially smaller pool size (22.7%) for comparison, the 339 companies on Forbes' survey of closely held U.S. businesses sold a trillion dollars' worth of goods and services (44%) and employed 4 million people. In 2004, the Forbes' count of privately held U.S. businesses with at least $1 billion in revenue was 305.

Public property

Public property is property that is dedicated to public use and is a subset of state property. The term may be used either to describe the use to which the property is put, or to describe the character of its ownership (owned collectively by the population of a state). This is in contrast to private property, owned by an individual person or artificial entities that represent the financial interests of persons, such as corporations. State ownership, also called public ownership, government ownership or state property, are property interests that are vested in the state, rather than an individual or communities.

Socialism in Bangladesh

Socialism is one of the four fundamental principles according to the original Constitution of Bangladesh. Socialism in Bangladesh differs from other countries where all the means of production are owned by the government. Socialism has been considered in the Constitution as a way to establish an exploitation-free society. The constitution allows cooperative and private ownership along with state ownership.

Socialist-oriented market economy

The socialist-oriented market economy (Vietnamese: Kinh tế thị trường theo định hướng xã hội chủ nghĩa) is the official title given to the current economic system in the Socialist Republic of Vietnam. It is described as a multi-sectoral market economy where the state sector plays a decisive role in directing economic development, with the eventual long-term goal of developing socialism.The socialist-oriented market economy is a product of the Đổi Mới economic reforms which led to the replacement of the centrally-planned economy with a market-based mixed economy based on state-owned industry. These reforms were undertaken to allow Vietnam to integrate with the global market economy.

State media

State media or state-owned media is media for mass communication which is "controlled financially and editorially by the state." These news outlets may be the sole media outlet or may exist in competition with corporate and non-corporate media.

State media is not to be confused with public-sector media, which is "funded directly or indirectly by the state, but over which the state does not have tight editorial control."

State socialism

State socialism is a classification for any socialist political and economic perspective advocating state ownership of the means of production either as a temporary measure in the transition from capitalism to socialism, or as characteristic of socialism itself. It is often used interchangeably with state capitalism in reference to the economic systems of Marxist–Leninist states such as the Soviet Union to highlight the role of state planning in these economies, with the critics of said system referring to it more commonly as "state capitalism". Libertarian and democratic socialists claim that these states had only a limited number of socialist characteristics. However, Marxist–Leninists maintain that workers in the Soviet Union and other Marxist–Leninist states had genuine control over the means of production through institutions such as trade unions.State socialism is held in contrast with libertarian socialism, which rejects the view that socialism can be constructed by using existing state institutions or by governmental policies. By contrast, proponents of state socialism claim that the state—through practical considerations of governing—must play at least a temporary part in building socialism. It is possible to conceive of a democratic state that owns the means of production, but it is internally organized in a participatory, cooperative fashion, thereby achieving both social ownership of productive property and workplace democracy in day-to-day operations.

Transmission System Operator (Albania)

The transmission system of electricity in Albania is run by the Transmission System Operator (OST), a public company with 100% state ownership. OST was created on 14 July 2004 as a result of the undergoing reforms within the Albanian Power Corporation. It split up as a vertically organized company into three separate units with the functions of generating, transmitting and distributing of the electricity.

Twenty-Five Mile Creek State Park

Twenty-Five Mile Creek State Park is a public recreation area on the western side of Lake Chelan, 15 miles (24 km) northwest of the city of Chelan in Chelan County, Washington. The 232-acre (94 ha) state park was a private resort that came into state ownership in 1972. It was operated under lease to various concessionaires until the state took over staffing in 1988. The park offers camping, a marina, fishing, waterskiing, bird watching, and mountain biking.

Ukrposhta

JSC Ukrainian Postal Service or Ukrposhta (Ukrainian: Укрпошта) is a public company of Ukraine with 100% state ownership due to its strategic importance. In 1999–2015 it was a unitary enterprise of the government of Ukraine. Ukrposhta is a member of Universal Postal Union since 1947 and owner of national stamp issuing enterprise "Ukraine Stamps" (Ukrainian: Марки України).

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