(a) Define public corporation.
(b) Give five reasons for setting up a public corporation in your country.
(a) A public corporation may be defined as government enterprise set up by an Act of Parliament to provide essential services like electricity, pipe borne-water, etc for the people at moderate prices.
(b) (i) To provide essential and basic services for the people. These services include water, electricity, transportation, roads, housing, etc.
(ii) To provide employment for citizens.
(iii) To prevent the exploitation of the members of the public by unscrupulous profiteers whose sole aim is to maximize profit.
(iv) To undertake essential projects requiring huge capital.
(v) To undertake strategic projects which the government may not want the private businessmen to handle for security reason.
(vi) Government may also establish public corporation for the purpose of generating revenue.
(vii) Public corporations may also be established for the purpose of propaganda. Examples are Radio Corporations and the Television Authorities.
(viii) It enables government to carry out some duties that require quick actions which ministries cannot quickly or effectively carry out because of bureaucracy.
(ix) To avoid foreign control of the economy.
(x) To ensure constant supply of social services.
(xi) To raise the standard of living of the people.
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