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States Quotes

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States Quotes

“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.”

“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.”