“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 , book Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism

Source: Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism (2008), Ch. 5: 'Man exploits man; Private enterprise good, public enterprise bad?', The pitfalls of privatization, p. 116

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Ha-Joon Chang 44

Economist 1963

Robert Aaron Gordon (1908–1978) American economist

Source: Business Leadership in the Large Corporation (1945), p. 24, footnote 20; as cited in: Marco Becht et al. Corporate Governance and Control, 2005. p. 61

“When the regime wanted additional industrial capacity or resources for the military economy which the private sector could not provide, it was created (or conquered) by the state… during the Third Reich state ownership expanded into the productive sectors, based on the strategic industries, aviation, aluminum, synthetic oil and rubber, chemicals, iron and steel, and army equipment. Government finances for state-owned enterprises rose from RM 4,000m in 1933 to RM 16,000m 10 years later; the capital assets of state-owned industry doubled during the same period; the number of state-owned firms topped 500.”

Richard Overy (1947) British historian

Source: War and Economy in the Third Reich (1994), p. 16

“The problem in this world is to avoid concentration of power - we must have a dispersion of power.”

Milton Friedman (1912–2006) American economist, statistician, and writer

Milton Friedman - Big Business, Big Government http://www.youtube.com/watch?v=R_T0WF-uCWg

“Organizational and not financial or ownership embeddedness is likely to be a more important cause of actions of firms than anything else in the case of United States. This means efforts should concentrate on specifying models of relations between firms that focus on intra- and interorganizational processes, such as the construction of strategic action and the cultural frames by which such a construction makes sense.”

Neil Fligstein (1951) American sociologist

Source: The architecture of markets, 2001, p. 145

“The aim of the anarchist is to eliminate private ownership.”

Robert LeFevre (1911–1986) American libertarian businessman

Anarchy (1959)

“All large organizations have an internal power struggle over the goals and resources of the organization…. In the largest firms, there are two bases of control : formal ownership and authority. Those who own the firm control by virtue of ownership. Authority relations embedded in the organizational structure legitimate how managers can control organizations.”

Neil Fligstein (1951) American sociologist

Source: The transformation of corporate control, 1993, p. 10 ; As cited in: François L'Italien, BÉHÉMOTH CAPITAL. Contribution à une théorie dialectique de la financiarisation de la grande corporation. Université Laval, 2012. p. 147 (Many of the following quotes came from this source)

“The diversity of institutions has made possible the combination of government ownership and private enterprise which has been a further characteristic of Canadian development. Canada has remained fundamentally a product of Europe.”

Harold Innis (1894–1952) Canadian professor of political economy

Conclusion, p. 401.
The Fur Trade in Canada (1930)

“The relationship of agency is one of the oldest and commonest codified codes of social interaction. We will say that an agency relationship has arisen between two (or more) parties when one, designated as the agent, acts for the other, designated the principal, in a particular domain of decision problems. Examples of agency are universal.”

Stephen A. Ross

Stephen A. Ross "The Economic Theory of Agency: The Principal's Problem," Amer. Econom. Rev., 63 (1973), 134-139; As cited in Eisenhardt (1985, 136)

“It's not a third way between state capitalism and free markets, it is the free market way. Multi-national corporations should be the principal actors, but they should be properly regulated.”

Ian Bremmer (1969) American political scientist

"The West Should Fear the Growth of State Capitalism," http://www.telegraph.co.uk/finance/economics/7883061/The-West-should-fear-the-growth-of-state-capitalism-Ian-Bremmer.html The Daily Telegraph (July 10, 2010).

“Q: Does the creation of Design admit constraint?
Design depends largely on constraints.
Q: What constraints?
The sum of all constraints. Here is one of the few effective keys to the Design problem: the ability of the Designer to recognize as many of the constraints as possible; his willingness and enthusiasm for working within these constraints. Constraints of price, of size, of strength, of balance, of surface, of time, and so forth. Each problem has its own peculiar list.”

Charles Eames (1907–1978) American designer, half of duo the Eames

Another part of the interview: Also cited at: Mark Wunsch. "[http://markwunsch.com/blog/2008/09/27/design-q-a-with-charles-eames.html A software engineer and technologist: Design Q&A with Charles Eames". at markwunsch.com/blog, 2008/09/27
Design Q & A with Charles Eames, 1972

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