This chapter examines the continuing important economic role of the state by paying attention to the public sector, state regulation, and state controls. It finds that, despite the resurgence of the private sector, the state remains the dominant economic actor. While liberalization halted the earlier relentless expansion of the public sector — especially relative to the private sector — through state entrepreneurship and nationalization, the existing public sector has seen little privatization. Only a handful of the over 230 public sector enterprises at the centre have been privatized. The public sector has, for a variety of reasons, basically proven to be recalcitrant to privatization. Paradoxically, the growth acceleration has been a boon for the existing public sector with its gigantic enterprises, since the resulting thriving market has made for a multi-fold expansion in its revenues and capital base.
Keywords: economic liberalization; public sector; state regulation; privatization; regulation; control; state entrepreneurship; private sector; nationalization
Chapter. 18182 words.
Subjects: Political Economy
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