THE GOVERNANCE OF PUBLIC ENTERPRISES: THE QUEBEC EXPERIENCE

Luc BERNIER and Louis SIMARD

Annals of Public and Cooperative Economics, 2007, vol. 78, issue 3, pages 455-474

Abstract: Have public enterprises become obsolete policy instruments? Should they be privatized or can their governance be radically transformed so that they could still be used as policy instruments? The world around them has changed and forced governments to move. After a discussion on the arguments in favour of privatization, this article suggests an analysis of three cases in the Canadian province of Quebec. Considering the pressures linked to the liberalization of trade resulting from NAFTA, this article suggests that the governance of public enterprises can be transformed and adapted and that consequently, it is not useful or necessary to privatize them. There is in reality a lot of room in the public enterprise governance to reform them, room that has been neglected over the last decades. Copyright 2007 The Authors Journal compilation © CIRIEC 2007.

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