| After the World War II, the stated owned enterprises (SOE) in all the countries in Western Europe have had an extensive development. A good number of those countries have thrown themselves into the campaign of the nationalization. Western Europe used to be the typical areas among Capitalism countries to push for the nationalization process. Theoretically, the mixed economy was quite popular at that time, nationalizing and setting up the SOEs turned to be the major methods to interfere the economy in order to develop the mixed economy. In social ideas, western countries were the origin of the socialism, which had wide reputation and deep influence, so setting up the stated owned economy was one of the main ideas for socialism. Modern Western economy regards nationalization as one of the measures to correct the market inefficiency. According to the theory of the Modern western economy, market inefficiency causes to the inefficiency of the resources allocation. One of the measures to correct the market inefficiency is going through the nationalization process, letting Government allocate the resources.According to the constitution and laws, government is the owner of the SOEs, having the right for making major decisions, enjoying the power of profits, and the power of appointment and removal of the managers. Government sets up the organizations like ministries or bureaus to manage the SOEs. The managers in SOEs are the entrusted agencies of the government.Theoretically, all the countries in western Europe follow two principles when they defined the existence of the SOEs: one is following the principle of market efficiency: for all the resources that market failed to allocate, government will organize SOEs to provide the products; second is following the principle of the social equality: SOEs will manage those industries (such as monopolized industry) in which polarization and inequality occur.Stated owned enterprises have the significant historical achievements according to the "economic miracle" created by the SOEs in the economic development. After World War II, the SOEs in western countries went well. The first 10 years after the world war was regarded as the best timing for the SOE. In many western countries, the public sectors in SOEs became the backbone of the domestic economy. Public sectors in Western Europe have covered 25% among the employment, production and capital investment. In the second 10 years, it encountered some difficulties, which arose many discussions. Consumer complained that SOE did not have much difference compared with the private firms in terms of scale, power, trends and the attitude towards customers. The labor union in SOE criticize that SOE is part of the state capitalism. The free economist and the politicians represented Right wing were against the SOEs, they criticized that SOE encouraged the power of labor union, falling into the bilateral-monopoly between labor union and SOEs. Such a bilateral monopoly interferes the rights of the customers and the public. In 1970's and 1980's, western opinions in the western countries opposed the concentration of the private firms, they demand for the decentralization. The right wing party made use of such an opinions, asking for the non-nationalization and privatization of the SOEs. Then the campaign of the privatization occurred.There are some characteristics of the reforms of SOEs in western European countries: the reforms are based on the old economy instead of re-establishing a totally new economy. No disconnections with history, no oppositions to the history, no clear-off and seal off, working on the privatization. Starting from the practices in different styles; the government policies were in place and the development was steady and in the right order.There are some achievements of the reforms of the SOEs in western European countries. First, most of the SOEs turned to be profitable after the reforms, this increases the competitiveness, which was suitable for the new tendency after the unified market in Europe and f... |
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