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Published online by Cambridge University Press: 06 November 2020
State-owned enterprises account for sizable shares of global supply in many commodities. There is a common belief that these enterprises behave differently from privately owned supply agents. This claim must be investigated, which is the main aim of this chapter. The chapter continues by clarifying a few methodological issues. How precisely is state enterprise defined? We subsequently explore the motivations for establishing public ownership in the mineral and energy sectors, in industrialized as well as developing countries. Then, after pointing to the features that characterize state-owned mineral firms, we analyze the likely impact of state ownership in minerals and energy on the domestic economy, providing in the process the rationales for the wave of privatizations in metals and minerals and the shrinkage of state-owned enterprise in these industries after 1980. The chapter ends by discussing the impact of state ownership on the international markets for minerals and oil.
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