by Jan Pavel
Frontier Centre for Public Policy
April 24, 2014
In 2011, the Organization for Economic Cooperation and Development (OECD) conducted a study of 27 member countries to assess the size of the national government-run enterprise sector. OECD’s data however completely omitted to include Canadian government-run businesses at the provincial and municipal levels. In fact, the size of the government business sector in Canada is much larger than expected and some of these businesses may be suitable candidates for divestment. Crown corporations are created in Canada to help overcome perceived market gaps. Yet, in free market economies, governments sometimes overregulate and stay directly engaged in business longer than the markets require. Divestment of government-run businesses has proven itself as an effective tool in revitalizing numerous businesses, encouraging economic growth and helping governments withdraw from business sectors where the assistance of the state is no longer needed or is even detrimental.