ABSTRACT
This chapter represents a tentative and preliminary attempt to discuss a group of problems that has so far attracted little attention in literature concerning local and regional development. The corporatization process was based on arguments that more local autonomy would at the same time ensure a more efficient superior political direction. Former directorates, government services and other administrative bodies have on a large scale been converted into state-owned enterprises, public corporations and state-owned joint-stock companies with a more autonomous status. To the extent that societal or social considerations imply that ‘unprofitable’ parts of the activities should be subsidized by the government, such costs are according to the ‘management’-dogmas supposed to be made explicitly visible, and explicitly granted over government budgets. The government, however, at that time wanted to retain control over their operations, as these institutions were considered to play an important role as instruments in welfare policies and in regional equalization policies.
