Discuss the advantages and disadvantages of State Control of Industry.
Certain industries are under state control in many countries. It plays an indispensible role for economic development of nations. The term state control means to govern industry in order to develop the economy and to provide better services and facilities for the public. In other words, state control refers to the industry owned by the state or government for national welfares rather than profit. Research has shown state control of industry as a controversial issue that has to be research. The well plan system with strict management may leads to development of industries. It can be consider that, state control of industry provides services with minimum cost. The state act as a responsible body for citizen compared to privatization. Therefore, it is an essential for formulation of plan and policies to carry out state control industry smoothly for the benefit of nations. However, it can create monopolies that may have a direct impact on private sector which has also vital role for national progress .It is consider that private sector seems to be under the state control. This essay will attempt to evaluate positive aspects and consequences of state control of industry by examining transport, bank, and telecom industry of various countries. State control of industry invest profitable amount in development of nations. The industry empower in development program such as scientific researches and social services. The UK government for instances, spends approximately 40% of GDP in public expenditure such as health, education, social protection, transport, industry and agriculture. However, private sector is not concern for national investment. Thus, people offer a direct benefit from state control of industry. State control of industry brings significant growth of national economy and employment opportunity for public. The benefit of industry through production of...
References: Morrison J. The International Business Environment, Second Edition, pp 82-83
www.google.com: The Free Encyclopedia: Indian Railway, pp-1
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www.google.com: The Free Encyclopedia: Privatization in UK pp-1
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