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Thepublic enterprises They are those in which the absolute majority of the ownership of the stock titles belongs to some area of the State, be it national, provincial or municipal.
In simple terms, in a public company decisions are made in the interest of the state, usually associated with the public interest and general welfare, and perhaps not around the logic of the private entrepreneur, whose objective is only the maximization of profit.
In almost every country in the world there are some public companies, but there are considerable differences with respect to the degree of state intervention in the economy of each of them: the most interventionist countries are those with the largest number of companies of this type.
Examples of public companies
- Petrobras (Brazil)
- GDF Gas Service (France)
- Mexican oil (Mexico)
- State Society of Industrial Participations(Spain)
- Argentinian airlines (Argentina)
- Railtrack railway network (England)
- Fiscal Oil Fields of Bolivia(Bolivia)
- La Poste Postal Service(France)
- Bogotá telecommunications company(Colombia)
- Bolivian Air Transport(Bolivia)
- Resona Holding(Japan)
- Barcelona Zoo(Spain)
- Tenesse Valley Authority (United States)
- Bank of the Province of Buenos Aires(Argentina)
- Red Eléctrica de España (Spain)
- Israel Railways(Israel)
- General Directorate of Military Manufacturing (Argentina)
- Materials Bank of Peru (Peru)
- Statoil (Norway)
- Fiscal Oilfields (Argentina)
See more at: Examples of Public Goods and Services
Public companies and politics
The socialist regimes propose the complete socialization of production goods, which implies that all companies would become public: the difference that their conception of the public company raises with which it occurs in most countries is that control. In this case, it would be left to the workers and not to officials appointed by the State.
One of the debates The most important part of the economy, within the framework of the discussion about economic policy, is about the convenience or not of the establishment of public companies, or even of the nationalization of private companies that already operate.
One of the criteria is that the State take possession of the sectors of the economy that yes or yes should be organized in the form ofmonopoly, either due to the initial investment level required or due to certain physical limitations.
The construction of subway networks, for example, is essential in large cities, and can hardly occur in a competitive context, so that the only viable options are the establishment of a single company that builds and takes over the service, or public action to that end.
Another criterion, different from the previous one, is that of sustain public companies in cases where the profitability of private investment would not be sufficient as to carry out the project in this way.
In such situations, the efficiency criteria are not the same and situations such as the growth in the level of employment or the possible advantages that this phenomenon brings to the public interest are considered.
The exploitation of a natural resourceFor example, it may fall into this category and the convenience of a public company may be considered for these purposes.
There are few who have absolute criteria for public companies: the aforementioned nationalization of all companies, or the idea that no company should be public.
Utility companies
Not all the actions carried out by the State are carried out through public companies. Those entities that provide public services (those that do not receive any consideration, beyond the payment of taxes) They are not considered public companies, but constitute the so-called ‘public expenditure’.
Education, justice or services such as lighting, sweeping and cleaning are in this group, and should not be confused with public companies that perform tasks that could be addressed by individuals (such as an airline), although with other objectives and criteria.
