Parastatal definitions
| Word backwards | latatsarap |
|---|---|
| Part of speech | The word "parastatal" is an adjective. |
| Syllabic division | pa-ras-ta-tal. |
| Plural | The plural of the word "parastatal" is "parastatals." |
| Total letters | 10 |
| Vogais (1) | a |
| Consonants (5) | p,r,s,t,l |
What is a Parastatal?
A parastatal is a government-owned corporation or agency in a country that operates in the commercial sector. These entities are established by the government to undertake commercial activities on its behalf, providing goods and services to the public. Parastatals are typically set up to operate in industries that are considered essential for the country's economic development and growth.
Key Features of Parastatals
Parastatals are distinct from regular government departments as they are intended to operate as commercial entities. This means that parastatals are expected to generate revenue, manage their finances, and compete in the marketplace like any other business. However, as government-owned entities, they are also accountable to the government and must report on their activities and finances.
Examples of Parastatals
Some common examples of parastatals include national airlines, utility companies, and state-owned banks. For instance, in a country, the national airline might be a parastatal that is responsible for providing air travel services to the public on behalf of the government. Similarly, a state-owned bank might operate as a parastatal to provide banking services to the citizens.
Challenges Faced by Parastatals
Despite their importance in driving economic development, parastatals often face challenges such as inefficiency, lack of competitiveness, and political interference. These issues can hamper their ability to operate effectively and deliver quality goods and services to the public. In some cases, parastatals may also struggle financially, requiring government bailouts to stay afloat.
Conclusion
In conclusion, parastatals play a crucial role in the economy by providing essential goods and services on behalf of the government. While they face various challenges, their existence is vital for overall economic development. By addressing issues such as efficiency and competitiveness, parastatals can better fulfill their mandate and contribute to the growth of the country.
Parastatal Examples
- The government set up a parastatal company to manage the country's railway system.
- The parastatal organization was responsible for providing electricity to remote areas.
- The minister appointed a new CEO to oversee the operations of the parastatal entity.
- The parastatal corporation was involved in the construction of affordable housing projects.
- The parastatal agency played a key role in regulating the telecommunications industry.
- Local farmers partnered with a parastatal body to improve agricultural output in the region.
- The parastatal institution was criticized for its lack of transparency in decision-making.
- The government allocated funds to support the initiatives of the parastatal sector.
- The growth of the parastatal sector contributed to economic development in the country.
- The parastatal authority faced challenges in implementing new policies effectively.