Views: 3163|Replies: 2

Are SOEs productive or not? [Copy link] 中文

Rank: 3Rank: 3

Post time 2013-6-10 16:25:55 |Display all floors
Now it's been debated over the feasibility of State-owned enterprises in China. Some insist the SOEs are less productive than the market-oriented companies like private ones. However, some argue that the genre of enterprise could guarantee the saftey of state-owned fortune and will safeguard the interest of public. What do you think Chinese state-owned companies and are there any ones in your country?

Use magic tools Report

Rank: 8Rank: 8

Post time 2013-6-11 12:56:17 |Display all floors
The STATE enterprise has the POWER OF THE GOVERNMENT to aid them.
The PRIVATE enterprise need to use POWER OF PERSUASION, stealth to survive.

Generally a STATE owned enterprise has the COERCION power, and the FINANCING power.
These combination will generally ENSURE the success of the enterprise.

HOWEVER the NEGATIVE aspect is that PRODUCTIVITY, and the TAILORING of the PRODUCT to the actual wants and needs of the CITIZEN CONSUMER is neglected. (which historicallly has shown, creates an INFERIOR economic model)


Green DRagon

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-6-11 19:57:04 |Display all floors
I do believe that SOEs could be extra destabilizing in times of trouble if meaningful reforms of the economy are to be made.  Just the owners can take credit when business is good they will receive blame when business turns ugly.

At least when a private company goes bust the politicians can do the normal routine of playing heroes with tax money and blaming greed and capitalism. But when the government is the owner, well... best avoid that all together by spending tax money ad infinitum or other protective measures.
So it is easy to how the government could prefer keeping bad businesses afloat rather than making meaningful changes to really improve the company.

Use magic tools Report

You can't reply post until you log in Log in | register

Contact us:Tel: (86)010-84883548, Email:
Blog announcement:| We reserve the right, and you authorize us, to use content, including words, photos and videos, which you provide to our blog
platform, for non-profit purposes on China Daily media, comprising newspaper, website, iPad and other social media accounts.