![All the alleged key causes of SOE [State-Owned Enterprise] inefficiency - the principal-agent problem, the free-rider problem and the soft budget constraint - are, while real, not unique to state-owned enterprises. Large private-sector firms with dispersed ownership also suffer from the principal-agent problem and the free-rider problem. So, in these two areas, forms of ownership do matter, but the critical divide is not between state and private ownership - it is between concentrated and dispersed ownerships. (Ha-Joon Chang)](https://cdn.quotesdtb.com/img/quotes_images_webp/54/ha-joon-chang-budget-140454.webp)
All the alleged key causes of SOE [State-Owned Enterprise] inefficiency - the principal-agent problem, the free-rider problem and the soft budget constraint - are, while real, not unique to state-owned enterprises. Large private-sector firms with dispersed ownership also suffer from the principal-agent problem and the free-rider problem. So, in these two areas, forms of ownership do matter, but the critical divide is not between state and private ownership - it is between concentrated and dispersed ownerships.
Ha-Joon ChangRelated topics
budget constraint critical divide enterprise inefficiency key large matter ownership private problem real soe soft state unique whileRelated quotes
Nothing which consists of corporeal matter is absolutely light, but that is comparatively lighter which is rarer, either by its own nature, or by accidental heat. And it is not to be thought that light bodies are escaping to the surface of the universe while they are carried upwards, or that they are not attracted by the earth. They are attracted, but in a less degree, and so are driven outwards by the heavy bodies; which being done, they stop, and are kept by the earth in their own place.
Johannes Kepler
I am not a complete idiot, but whether from weakness or laziness have no talent for thinking. I know only how to reflect: I am a mirror ... Logic does not exist for me. I float on the waves of art and life and never really know how to distinguish what belongs to the one or the other or what is common to both. Life unfolds for me like a theatre presenting a sequence of somewhat unreal sentiments; while the things of art are real to me and go straight to my heart.
Sviatoslav Richter
In point of fact there are a certain number of values and of forces which are of decisive importance in our world civilization: the primacy of production, the continual growth of the power of the State and the formation of the National State, the autonomous development of technics, etc. These, among others - far more than the ownership of the means of production or any totalitarian doctrine - are the constitutive elements of the modern world. So long as these elements continue to be taken for granted, the world is standing still.
Jacques Ellul
A child free from the guilt of ownership and the burden of economic competition will grow up with the will to do what needs doing and the capacity for joy in doing it. It is useless work that darkens the heart. The delight of the nursing mother, of the scholar, of the successful hunter, of the good cook, of the skilful maker, of anyone doing needed work and doing it well, - this durable joy is perhaps the deepest source of human affection and of sociality as a whole.
Ursula K. Le Guin
Now a writer can make himself a nice career while he is alive by espousing a political cause, working for it, making a profession of believing in it, and if it wins he will be very well placed. All politics is a matter of working hard without reward, or with a living wage for a time, in the hope of booty later. A man can be a Fascist or a Communist and if his outfit gets in he can get to be an ambassador or have a million copies of his books printed by the Government or any of the other rewards the boys dream about.
Ernest Hemingway
