ABSTRACT
‘The extent of the public sector, its relationship with the private sector, the permanence or transience of its contribution to the economy - these are matters which are dictated, upon a point, by ‘objective circumstances’; beyond that point, what kind of society the government has chosen to promote’. In socialist planned economy, state leadership and control dominate in economic activities. In capitalist market economies state intervention in private business was extended during the 1930s, but since World War II a ‘mixed economy’ has become common among the industrial nations. The most fundamental implication of nationalization of industries for private capitalism in Bangladesh was its virtual elimination from large scale industrial ownership. The last industrial policy was announced in July 1991. Private enterprises have demonstrated better performances even in the utility sectors where regulation is essential and there are ‘natural monopolies.’ The efficiency argument states that private ownership is likely to produce better results and higher profits.
