explain term 1.Economic development
2.Publ8c enterprise
Answers
Explanation:
Development economics studies the transformation of emerging nations into more prosperous nations. Strategies for transforming a developing economy tend to be unique because the social and political backgrounds of countries can vary dramatically.
A commonly accepted definition of a public enterprise is “Any commercial or industrial undertaking which the government owns and manages with a view to maximize social welfare and uphold the public interest.”
Characteristics of Public Enterprises
The primary characteristics of public enterprises are:
They function under the direct control of the government and some are even established under statutes and Companies Act. Therefore, public enterprises are autonomous or Semi-Autonomous in nature.
Either the State or the Central government can control a public sector enterprise.
Primarily, the objective of establishing a public enterprise is to serve the public. They can supply essential goods/services at reasonable prices and also create employment opportunities.
A public enterprise endeavors to serve all section of people in the community.
In some sectors, private organizations do not have permission to operate. Therefore, the public sector enterprises enjoy a monopoly in operation. For example, the State enterprises have a monopoly in Energy production, Railways, and Post and Telegraph services.
Sometimes, the country receives financial/technological assistance from the international community for the development of industries. These grants are applied through public enterprises.
Public sector enterprises are liable to the general public for their actions.
These enterprises help in the implementation of the economic plans and policies of the government.
The government makes the primary investment in a public sector enterprise. However, they arrange finance for the day-to-day operation making it financially independent.