Developing countries relied more on State Owned Enterprises SOEs than industrialized economies did in the hope that they would balance or replace a weak or ideologically unacceptable private sector; would invest more and also produce a capital surplus to finance investment; and would transfer technology to strategic firms in mining, telecommunications transport and heavy industry.
That idea is a myth. See Daily Sun 14 September, p. Public enterprises are also essential in bringing about national development.
The government of Britain had to acquire for diplomatic reasons the Aero Engine and other relevant function of Roils Royce in which was important to her national defense and collaborative programmes with other countries and to many air forces and civil airlines all over the world.
The non accomplishment of developmental objectives has been viewed as a common generic scenario in all developing countries".
It is also aimed at investigating why public enterprises whether commercial, utility or the hybrid type are characteristically inefficient despite their huge capital investment, periodic subvention, statutory monopoly and, tax and tariff waivers they enjoy. Unlike private enterprises which are incorporated under the Companies and Allied Matters Act, public enterprise are established through statutory enactments.
Similarly, inefficient provision of critical inputs and badly managed public utilities have increased the cost of business to private sector and the potential for expansion of the economy.
As would be seen from the various factors stated above among others, it is clear that the entire machinery needed to put the corporation back to life is lacking.
In the context of the Second and Third National Development Plans and respectively, not only did the government occupy the commanding heights of the economy, it effectively became the engine of growth -making huge investments in the economic, social and infrastructure sectors.