ABSTRACT
Governments invest in a wide range of sectors based on a number of rationales. This chapter presents many of these rationales. In general, the greater the government ownership roles in the economy, the more extensive have been the restrictions on private ownership of any kind in the sectors. In its earliest days, the Canadian government participated in the development of canals and railroads as a way of enhancing the growth of the new nation. The Trans-Canada Airlines, which became Air Canada, served to link remote areas with the industrial heartland by cross-subsidizing its rates. By 1987, the Government of Ghana directly held the majority interest in 217 state enterprises. In addition, the state-owned banks enabled the government to hold majority interests indirectly in 103 other state enterprises. In India, many activities have been owned and operated by the government, with both domestic and foreign investors being excluded.
