Breiter, Andres E., "Must Government Owned Enterprises Be Less Efficient Than Private Ones?", 1987
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This paper is based on direct observation of privately and government owned enterprises in Argentina, Italy, Poland, U.S.A. and Yugoslavia.A causal model is presented which is found in all enterprises operating successfully and efficiently over time. The frequently observed inefficiencies in government owned companies are explored with its help. The same method suggests why certain privately owned enterprises exhibit inefficient behaviour while on occasions government owned enterprises are an example of dynamic, foresighted and efficient management.The external pressure groups and their methods for exercising influence through government bureaucracy and other channels on company management are found to be of great importance and so is the legal structure and competitive environment in which management operates. The availability of adequately trained managers is another key element.Several general recommendations are formulated for policies that will ensure efficiency in both government and privately owned corporations.