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1) Introduction

GOVERNMENTS AND INFRASTRUCTURE INDUSTRIES :INTERNATIONAL DIFFERENCES c1830-1990: IDEOLOGY OR GEO-POLITICS? Bob Millward University of Manchester. 1) Introduction Covers energy, telecoms, transport for Western Europe with some references to Japan/USA.

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1) Introduction

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  1. GOVERNMENTS AND INFRASTRUCTURE INDUSTRIES :INTERNATIONAL DIFFERENCES c1830-1990: IDEOLOGY OR GEO-POLITICS?Bob MillwardUniversity of Manchester

  2. 1) Introduction • Covers energy, telecoms, transport for Western Europe with some references to Japan/USA. • The main thrust is to explore how far strategic factors are more important than ideologies about capitalism and socialism in explaining economic organisation. • The historiography on this is fairly limited: individual countries (Austria-Hungary etc); Bogart, Wallsten, Baily studies, economic nationalism; Gazprom.

  3. 2) Framework of Analysis • i) Ideological differences • ii) Geo-politics • iii) Political structure • iv) Perceptions of national identity. • Change: Important to recognise that form and relevance of the above factors will change over time, in particular as a result of changes in technology (new forms of transport, IT in telecoms industry etc.) and economic forces (rise in size of public sector 1950-70)

  4. 3) The 19th Century • a) New nation states increase strategic role of infrastructure industries, especially transport and telecom. • b) Electric telegraph seen as insecure; all in state departments • c) Strong initial state activity in rail development in Belgium, Italy, Prussia, Belgium, Sweden, Norway, Prussia • d) Japan’s strategic needs lead to heavy support for shipping and firm control over railways • e) US no hostile neighbours and regulation focuses on inter-state trade • e) In sum state operates, rather than subsidises, for speed in construction, unprofitable lines, direct control.

  5. 4) Early 20th Century • a) Britain & Ireland strategic decisions • b) Airlines emerge as national flag carriers • c) Common structural and universal service problems in infrastructure but arm’s length regulation not a favoured policy after depression years • d) Influence of ideology seems important (especially in coal) in Britain and France in 1940s but even here both concentrate on ‘basic industries’ not ‘means of production’. • Net result is by 1950, railways, electricity, coal, gas, airlines and telecommunications were fully or partly government owned everywhere in Western Europe.

  6. 5) Privatisation • a) Strategic issues were important for airlines and telecoms in the mid 20th century but technological and political changes undermine monopoly structure and strategic role. • b) State enterprise financial losses an important element in privatisation as also disappearance of worries about arms’length regulation but common to all. • c) Questions about security and about social and political unification still important but a wider range of instruments available • d) Privatisation more partial and less extensive in natural monopoly sectors where strategic concerns remain. • e) Cont. European governments still linked more closely (than SA and UK) to infrastructure industries, mainly via shares, including golden ones.

  7. 6) Conclusions • a) Strategic issues seem to account for much of the differences in the business/state interface in the 19th century • b) Similar issues for airlines and telecoms in mid 20th • c) Performance studies need to focus on government objectives • d) Focus for strategic issues by late 20th moved away from traditional instruments and regulatory problems of the sectors more dominant • e) Cont. gov.s still differ from UK/US in strategic shareholding.

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