ABSTRACT
This chapter examines the evolution of state-owned enterprises (SOEs) in the international sphere. Focusing first on western economies, it argues that the views on and use of SOEs as effective public policy instruments has oscillated over the postwar era and that this period can be divided into three distinctive epochs. The first era spans from the end of the Second World War to the 1970s and was a time when SOEs were both politically acceptable and viewed as viable public policy tools. The second period extends from the late 1970s to the early 2000s and was characterized by intense criticism of SOEs and state interventions more generally and saw many SOEs privatized and/or eliminated. Our final epoch commences in early 2000 and continues to the present day and is characterized by both an increasing acceptance of SOEs as policy tools together with a recognition that contemporary SOEs are markedly different in terms of their operations and governance regimes from those of yesteryear. The seminal role SOEs play in the developing world, particularly in China, together with other social, technical and international geopolitical factors, helps to explain these changes. In outlining these shifts, this chapter seeks to join discussions exploring the current post-privatization era and to explain why SOEs will continue to be vital instruments of public policy into the future.
