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Give five reasons why the government may find it necessary to start a parastatal

Give five reasons why the government may find it necessary to start a parastatal

Answers

Davis
Outline reasons that may influence the government to start a parastatal.

i) To provide strategic goods and service
ii) To increase revenue collection
iii) To encourage import substitution industries/to discourage importation
iv)To encourage foreign investment
v) To reduce foreign influence
vi) To address special social needs
vii) To take care of sensitive ventures
viii) To take care of business that requires a large initial capital
ix) To create employment to poor
x) To provide goods & services all over the country
xi) To stimulate economic development
xii) To provide essential goods and services at low cat
xiii) To promote competition with private in security
xiv) To provide goods and services with low returns (low profits)
xv) To regulate business activities
Githiari answered the question on September 23, 2017 at 09:27

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