ABSTRACT
This chapter starts from the premise that state-owned enterprises (SOEs) are created as a result of politics, but the political conditions and settings may change over time, which result in different types of public ownership and state support. It examines the politics of SOEs through an analysis of the rail sector in several countries. The rail sector provides a public service which contributes to economic and social development through the transporting of people and goods. It requires investment in infrastructure which the state has traditionally provided. SOEs have been described as a ‘collective of political entities for mass mobilisation, the production arm of state bureaucracy and social welfare providers for local communities’. The politics of SOEs can be seen as a reflection of how this complexity is played out at national and local levels. The establishment and continued control of SOEs has been influenced by several factors, including security, strategic sectors, industrialisation and social policies.
