State-owned companies are often touted as necessary tools for development in emerging economies. This is because they can be directed by governments to achieve development ends. The model has been a success in some countries, but it's been an epic failure in others.
The knee-jerk reaction to paralysis in state-owned enterprises is to call for privatisation. Business and Economy editor Andile Makholwa asked Steve Koch, Professor of Economics at the University of Pretoria, why governments need state-owned enterprises and what determines their success or failure.
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