Public Enterprise Roles in National Development
Especially, underdeveloped countries show greater interest to use public enterprise as one of the prime movers of national development. Public Enterprise (PE) though traditionally employed for a variety of purposes in the capitalist world takes on special importance in an era in which economic growth is a prominent emotional goal in both developed and developing countries.
Deal with Developing Countries:
There are included three indicators by which developing countries have had to deal with:-
- Inadequate infrastructure
- Shortage of
- Investment capital
- Managerial and technical skill
- Lack of means of stimulating
- Productive investment and
- Increased productivity.
These formidable challenges have produced various responses. Three of the most common are:-
- Economic planning
- Assisting and guiding the private sectors and
- Initiating those investments and managing those activities which comprise the public sector of the economy.
As a result number of Public Enterprises have been created in the underdeveloped countries.
From common parlance, it can be said that as there is no other organization in the underdeveloped countries. For carrying on developmental change. And the role of government in this field through the creation of public enterprise obviously have some positive contribution. This idea becomes more affirmed seeing the wide scope and number of public enterprises in a country.
The scope of Public Enterprise:
In developing country’s scope of Public Enterprise cover are mentioned below. Such as:-
- Agriculture, housing, forestry and fishing
- Food, beverage and tobacco
- Textile, weaving, apparel and lather
- Wood and wood products.
- Paper, paper products, printing and publishing
- Chemical, petroleum, coal, rubber and plastic products
- Non-metallic mineral
- Basic metal industries
- Fabricated metal products, machinery and equipment.
- Electricity and water and gas
- Trade, restaurant and hotels
- Transport, storage and corporation
- Finance insurance, real estate and business
- Community, social and personal services.
A huge number of enterprises are working in these areas. From this, it is clear that the whole economy depends upon the functioning of these enterprises.