ABSTRACT
The Brazilian state's involvement in infrastructure enterprises began before the industrialization spurt. The number of state enterprises has grown considerably since the early post-World War II period. By 1978 there were 584 state enterprises; 488 government firms were nonfinancial and the rest consisted of banks and other types of financial organizations. To increase the efficiency of state enterprises, much greater independence was granted them than in the past in the areas of pricing, employment and investment decisions. Brazilian state enterprises can be found in sectors whose technology is capital intensive - steel, petrochemicals, public utilities. Wages paid by public enterprises in Brazil range from the average wage in manufacturing to levels substantially above this average in state steel, mining, and petrochemical firms. The pricing of Peruvian state enterprises was closely linked to the country's general economic performance. The regional distribution of state enterprise activities has reinforced regional inequities in the distribution of income.
