Theory question 104
Public CorporationsSection A
State the functions and problems of public corporation.
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Functions: provide essential services (electricity, water, transport, communication)
Provide services that need huge capital private firms cannot raise
Prevent exploitation by private monopolies; keep prices reasonable
Create employment
Generate revenue for government
Undertake strategic projects (e.g. minting, defence industries)
Promote national development and even distribution of amenities
Problems: political interference and patronage appointments
Corruption, embezzlement and mismanagement
Inadequate funding and poor maintenance
Over-staffing and lack of qualified staff
Red tape and inefficiency due to monopoly
Poor attitude of workers ('government work is nobody's business')
Frequent changes of board and policy
Give both parts roughly equal weight.