PARASTATAL Meaning and
Definition
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Parastatal refers to a type of government-controlled or government-supported organization that operates in various sectors of the economy. The term is derived from the combination of the words "para" (meaning alongside or in conjunction with) and "statal" (pertaining to the state or government). Parastatals are usually established by governments to fulfill specific purposes, such as providing essential services, promoting economic development, or regulating industries.
These organizations often have a significant level of autonomy and are typically operated at arm's length from the government. While they may receive financial support or be subject to oversight by the government, parastatals generally have their own management structures and decision-making processes. They can operate in sectors such as energy, telecommunications, transportation, healthcare, or finance.
The goals of parastatals can vary depending on the country and sector. Some examples of parastatals include state-owned oil companies, national airlines, development banks, or public healthcare providers. The level of involvement of parastatals in the economy differs from country to country, ranging from complete ownership and control to partial control through shareholdings or partnerships with private entities.
Parastatals can play a vital role in achieving government objectives, such as increasing access to essential services, driving economic growth, or ensuring equitable distribution of resources. However, they may also face challenges, such as bureaucracy, inefficiency, or political interference, which can impact their effectiveness.
Common Misspellings for PARASTATAL
Etymology of PARASTATAL
The word "parastatal" has its origins in Portuguese and is derived from the combination of two words: "para" which means "for" or "to", and "estatal" which means "state" or "government". In Portuguese, "parastatal" refers to an organization or entity that operates with partial or full state control, but also has some degree of autonomy from the government. The term was first used in Portuguese-speaking African countries, particularly in the context of their emerging independent governments in the mid-20th century. It later spread to other countries and gained broader usage to describe similar state-controlled entities in various sectors, such as utilities, transportation, or heavy industry.
