1、1/17/2017ECA5373State Capitalism and Industrial PoliciesAssocProf Chia Ngee ChoonDepartment of Economicsecscnc@nus.edu.sgState Capitalism: Singapore Government as State Entrepreneur•When Singapore became independent, the private sector was tooweak (lack of
2、private sector funds or expertise) to provide much needed jobs and to support economic growth.“state capitalism”: active industrial policy (government owns shares of these companies)Government to pick winners and promote economic growth•“state enterprise”
3、: ownership and competition ‐Uses capitalist tool such as listing state‐owned companies on the stockmarketand embracing globalization•Rise of Japan in the 1950s; Germany in the 1870s•Different from: ‐Hong Kong (economic growth driven by private enterprises)
4、 ‐Korea (absence of widespread government‐owned enterprises)11/17/2017State Owned Enterprises (SOE)•Governments are more sophisticated owners.•Most governments prefer to exercise control through their ownership of shares: •Governments have become the most p
5、owerful shareholders across much of the developing world from China to Thailand and from Russia to Saudi Arabia.State Owned Enterprises (SOE)•Sometimes they hold all the shares, particularly in oil companies like Malaysia’s Petronas, transport firms like Ch
6、ina’s Ocean Shipping Company and quasi‐military outfits like Russia’s United Aircraft Corporation.•But increasingly they prefer to dilute their shareholdings.•The United Nations Conference on Trade and Development defines a state‐owned company as one in whi
7、ch the state owns more than 10% of the shares. 21/17/2017STATE CAPITALISM[1] STATUTORY BOARDState Enterprises in Singapore•Two main forms of state enterprises [1] Statutory Boards‐Legislated under individual Acts of Parliament that defined their functions,
8、scope and powers‐Formed under various ministries and are accountable to them through parliament ‐Greater autonomy than government departments31/17/2017Statutory Boards (SB)•Rationales:‐To compensate fo
