A company at least 50 per cent owned by the state. As the state is responsible for any deficits made there is a tendency for such firms to have poor financial discipline and excessive labour forces. In Latin American countries parastatals have only...

A parastatal or para-statal (from para- meaning mean something close or near, a prefix, and state) is a fully or partially state-owned corporation or government agency. In centrally planned economies such entities are dominant. They play a major role in...