ABSTRACT
Hanson defines a state-owned enterprise (SOE) as 'state ownership and operation of industrial, agricultural, financial and commercial enterprises'. Most of the LDCs in Latin America place a large emphasis on the private sector for economic development, while the Afro-Asian LDCs resort to state intervention to shape the process of development. Cyprus, Korea and many Latin American countries believe that the role of the public sector is to help the private sector grow, at least a complementary role in a predominantly private-sector-owned industrial sector. The Indian Industrial Resolution states that all industries of basic and strategic importance or in the nature of public utility services should be in the public sector. The Korean economy has about eleven high-capital-oriented sectors. The Industrial Policy Resolution of 1956 has laid down the guidelines for public-sector participation. Due to ideological considerations and the policy of nationalization to protect scarce developmental funds being remitted abroad, many LDCs have created large monopolies that operate in this cell.
