Para-statals
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Para-statals are state-owned corporations that play a major role in the government and economy of many countries around the world, like Nigeria and other LDC's; often they are too large. They are created to give certain social welfare services as well as commercial services. Para-statals comprise a large part of the national bureaucracy of certain nations.
These state-owned enterprises fall in between true federal services and the private sector in terms of government involvement. Para-statals have their own board of directors, similar to private corporations. The government, however, has authority to control the board of directors.
Para-statals are formed where a political body would not operate as efficiently as civilian ownership can. The government in this situation willingly gives up power to private business - but not fully. Examples of para-statals are waterworks, hydroelectric power, ports, and some petroleum sectors.
Another reason their formation is supported involves the need to increase the economic status. They give citizens low-cost utilities and services that government ownership could not. Also, para-statals decrease dependence on the international services that can be accessed from within the country.
See also
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