Parastatal

Parastatal

A parastatal or para-statal (from para- meaning mean something close or near, a prefix, and state) is a fully or partially state-owned corporation or government agency. In centrally planned economies such entities are dominant. They play a major role in many LDCs, even if free-market economy is declared. Often the influence of these entities is very large, matching that of the government itself. They are created to give certain social welfare services as well as commercial services. Para-statals comprise a large part of the national bureaucracy of certain nations.

These state-owned enterprises fall in between true public services and the private sector in terms of government involvement. Para-statals have their own board of directors, similar to private corporations. The government, however, has authority to control the board of directors.

Para-statals are formed where a political body would not operate as efficiently as civilian ownership can. The government in this situation willingly gives up power to private business - but not fully. Examples of para-statals are waterworks, hydroelectric power, ports, and some petroleum sectors.

The role of para-statals is explicit in countries like Nigeria and Tanzania.

Even in developed countries, large utility companies have characteristics of para-statals, such as EDF and GDF and other national utilities in France. The term used in the United Kingdom was Quango or "QUasi-Autonomous National Government Organisation".

In New Zealand, such companies are called SOEs or State-Owned Enterprises, or Crown Research Institutes. The Crown is assisted in the running of SOEs and other Crown-owned companies by the Crown Company Monitoring Advisory Unit or CCMAU (pronounced "see-see-maow") in the Treasury.

ee also

*Quango
* [http://www.ifpri.org/divs/mtid/dp/mtidp80.htm Grain Marketing Parastatals in Asia: Why Do They Have to Change Now?] by Shahidur Rashid, Ralph Cummings Jr., and Ashok Gulati (2005)


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Look at other dictionaries:

  • parastatal — parastatal, ale, aux [ parastatal, o ] adj. • XXe; de 1. para et lat. status « État » ♦ (Belgique) Admin. Semi public. Les institutions parastatales. N. m. Le parastatal. ● parastatal, parastatale, parastataux ad …   Encyclopédie Universelle

  • parastatal — ▪ I. parastatal par‧a‧sta‧tal 1 [ˌpærəˈsteɪtl] adjective parastatal organization/​business/​industry an organization etc that has some political power and is indirectly controlled by the state: • parastatal Kenyan banks   [m0] ▪ II. parastatal… …   Financial and business terms

  • parastatal — UK [ˌpærəˈsteɪt(ə)l] / US [ˌperəˈsteɪt(ə)l] adjective partly or completely controlled or owned by the government Derived word: parastatal UK / US noun countable Word forms parastatal : singular parastatal plural parastatals …   English dictionary

  • parastatal — /par euh stayt l/, adj. 1. working with the government in an unofficial capacity. n. 2. a parastatal company or group. [1965 70; PARA 1 + STATE + AL1] * * * …   Universalium

  • parastatal — [ˌparə steɪt(ə)l] adjective (of an organization or industry) having some political authority and serving the state indirectly. noun a parastatal organization …   English new terms dictionary

  • parastatal — /pærəˈsteɪtl/ (say paruh staytl) adjective 1. owned or controlled wholly or partly by the government: a parastatal organisation. –noun 2. such an organisation. {para 1 + stat(e) + al1} …  

  • parastatal — /par euh stayt l/, adj. 1. working with the government in an unofficial capacity. n. 2. a parastatal company or group. [1965 70; PARA 1 + STATE + AL1] …   Useful english dictionary

  • Parastatal Sector Reform Commission — The Presidential Parastatal Sector Reform Commission is the organ of the Tanzanian Government under the Public Corporations Act, 1992 as amended in 1993 and 1999, to co ordinate implementation of the government s economic reform efforts in the… …   Wikipedia

  • parastatal — 1. noun /paəˈsteɪtəl,ˌpærəˈsteɪtəl/ A company, agency, or intergovernmental organisation, that possesses political clout and is separate from the government, but whose activities serve the state, either directly or indirectly. 2. adjective… …   Wiktionary

  • parastatal — par|a|sta|tal [ ,perə steıtl ] adjective TECHNICAL partly or completely controlled or owned by the government ╾ par|a|sta|tal noun count …   Usage of the words and phrases in modern English

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