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Globalisation—New Demands on Public Enterprises
Author(s) -
Ebert W.,
Noll W.
Publication year - 1999
Publication title -
annals of public and cooperative economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.526
H-Index - 37
eISSN - 1467-8292
pISSN - 1370-4788
DOI - 10.1111/1467-8292.00121
Subject(s) - globalization , public sector , public policy , business , economic system , politics , government (linguistics) , market economy , economics , economy , political science , economic growth , linguistics , philosophy , law
The globalisation of the economy and society reduces the economic policy capabilities of the state with its public enterprises considerably, but at the same time it triggers fundamental pressure on the government to compensate for the negative economic, political and social effects of the globalisation process. Using a system‐theoretic framework, requirements for the public economy can be developed reaching from a social coordination function to an evolutionary‐based industrial policy function of public enterprises. These functions and instrumental targets have to be implemented in a system of an internationalised public economy based on an appropriate institutional foundation. This in turn means focusing on a mixed system of public and non‐profit organisations combined with market type institutions. By no means is an erosion of the public sector in the sense of radical privatisation strategies as propagated by the IMF and other prominent institutions implied. Rather a social need for public action must be considered mainly due to the public interest (Gemeinwohl). In this context, the socio‐political competence of the public and nonprofit economy can be revitalised in an innovative way.