
I. Enterprise and Development The non-communist underdeveloped countries provide an extraordinarily rich but as yet poorly-exploited field for the comparative study of public enterprise. It is not that they have shown any special capacity for institutional invention; on the contrary, the forms of public enterprise they have adopted are invariably copies from the West. The British public corporation, for example, has been extremely influential; the state company and the "mixed" enterprise, characteristic of Western Europe, has been widely imitated; Tennessee Valley Authority-type enterprises have appeared wherever river valleys offer the possibility of multi-purpose development. Part of the interest of these experiments for the political scientist lies precisely in the problems encountered in the transplantation of institutions. Western forms of public enterprise, placed in an alien and underdeveloped setting, inevitably display characteristics quite untypical of their prototypes-to such an extent, indeed, that the question often arises whether the attempt at imitation was well-advised. There is an even greater interest in the efforts of these countries to use public enterprise as one of the prime movers of economic development. When employed in this way, the public corporation of the state company has an importance far beyond that which is attached to it in the West, where "nationalized industries" have appeared at a comparatively late stage in the developmental process and have often been presented as an alternative, to be accepted or rejected principally on ideological grounds, to a private entrepreneurship which has already by its own efforts raised the economy to a level of considerable affluence. In many of the less developed countries, in fact, public enterprise presents itself not so much as an alternative to private enterprise as a substitute for it. Where private entrepreneurship is weak, where capital is scarce, and where privately-owned investable funds tend to flow into developmentally neutral channels, development through public enterprises appears a matter of necessity rather than of choice. Hence the "socialistic" appearance of the economies of new countries, such as Pakistan, which certainly have no ideological leanings towards a "socialist pattern of society."
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