Abstract
The preceding chapter has examined the case for mixed enterprise from the standpoint of the business community. This chapter deals with the institution from the side of the public participant. In the main, it sets forth the gain to the public sector from a share in a mixed enterprise. The first section will consider the traditional framework of thought which forms the basis of Western economic thinking, and the conditions under which state interference is justified will be reviewed. The second section will outline the contrastive conception of the dualistic economy which is inherent in the Indian materials and review the idea of an equally important public sector in economic activity. Taking India’s concept of the public sector, the last sections will cover the gains which accrue to the components of the sector in a manner similar to the analysis carried on for the private.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
J. M. Keynes, The General Theory of Employment, Money and Interest (London, 1936), p. 129.
“Where private enterprise has ceased to be expansive or demands too high a price, the only alternative is to fall back on public enterprise.” D. Ghosh, “More of Public Enterprise and Less of Threats to Industrialists,” Economic Weekly, 2 (Feb. 11, 1950), 155.
Gossen’s second law has been paraphrased by Hayek as follows: “If it is impossible to gratify all wants to the point of satiety, it is necessary in order to obtain maximum satisfaction to discontinue the satisfaction of different wants at the points at which their intensity has become equal.” Article on Gossen, Encyclopedia of the Social Sciences, VII, 3.
K. E. Boulding, Economic Analysis (rev. ed.; N.Y., 1948), p. 622.
The distinction between transfer and resources using expenditure does not concern us here because public and mixed enterprise certainly use resources, E.C. Allen and C. H. Brownlee, Economics of Public Finance (N.Y., 1947), pp. 137 ff.
Abba Lerner, Economics of Control (N.Y., 1947), pp. 316–7.
Friedrich List, National System of Political Economy (Lloyd translation; London, 1922), p. 93, ff. passim.
F. K. Mann, “Reorientation Through Fiscal Theory,” Kyklos, 3 (1949), 120 ff. Similarly, the rise of modern Japan was marked with an enormous and ever expanding public debt. See author’s Transition from Tokugawa to Meiji, A Study in Economic Development (M. A. Thesis, University of California, 1950, manuscript), Appendix, Table 7, p. 133.
India, Planning Commission, The First Five Year Plan, A Draft Outline (New Delhi, 1951), p. 24.
Industrial Policy Resolution, April 30, 1956, Second Plan, p. 46.
The kernel is the provision for safeguarding the national interest without encroaching upon the administrative independence of organizations and usurping their managerial responsibility. A. D. Gorwala, Report on the Efficient Conduct of State Enterprises (Government of India, 1951), p. 11
P. H. Appleby, Reexamination of India’s Administrative System (Government of India, 1956).
**A. D. Gorwala, Report on the Efficient Conduct of State Enterprises (Government of India, 1951)**Gorwala, op. cit., pp. 4–5.
M. E. Dimock, Business and Government (N.Y., 1949), p. 678 ff
John Thurston, Government Proprietary Corporations in the English Speaking Countries (Harvard University Press, 1937), pp. 264–72.
C. N. Vakil, Economic Consequences of Divided India (Bombay, 1950), pp. 44, 377 ff.
For example, Paul Webbink, “Government-Owned Corporations,” Encyclopedia of the Social Sciences, 1932, VII, 106–111. As previously noted, for India, the Gorwala and Appleby surveys took this position.
“…an example of how not to treat an autonomous corporation,” Gorwala, op. cit., pp. 33–4.
Benjamin Higgins, Public Investment and Full Employment (Montreal, 1946), p. 23 ff.
Covering costs “taking one year with another” are the terms of the British Nationalization Act and Payment fixed in advance by the Exchequer, A. M. Henderson, “Prices and Profits in State Enterprise,” Review of Economic Studies, XVI (1), (1948–9), PP. 13–24.
For example, Thurston,**John Thurston, Government Proprietary Corporations in the English Speaking Countries (Harvard University Press, 1937) ** op. cit., pp. 276–7.
Journal of Commerce, November 14, 1957, p. 30; Oct. 22, 1957, p. 18.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 1959 Martinus Nijhoff, The Hague, Netherlands
About this chapter
Cite this chapter
Spencer, D.L. (1959). Advantages of Mixed Enterprise to the Public Sector. In: India, Mixed Enterprise and Western Business. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-0713-4_10
Download citation
DOI: https://doi.org/10.1007/978-94-015-0713-4_10
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-015-0212-2
Online ISBN: 978-94-015-0713-4
eBook Packages: Springer Book Archive