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Federal Government Corporations

Government corporations also provide efficient use of natural resources and can improve society in general. Pear Products utilizes government corporations to conduct business. You are not the only one who needs help managing a workload.

The Legal Services Corporation , the Corporation for Public Broadcasting , and the newly established International Clean Energy Foundation are examples of “corporations” that do not perform commercial functions and rely upon annual appropriations. Finally, World War II prompted the establishment of additional federal corporations. After the passing of each of these emergencies, many of the corporations that dealt with them were abolished or absorbed into the permanent executive branch agencies. The first time the federal government acquired a corporation outright occurred in 1903, when the Panama Railroad Company was purchased from the French Panama Canal Company. In the typical contemporary Congress, several bills are introduced to establish government corporations.

By this definition, currently there are 17 government corporations. The position of the second school is that government corporations should be established only when appropriate criteria and standards, developed by a central management agency, are met. Such standards should be reflected in a national incorporation law and apply to all proposed and functioning corporate bodies properly defined. Government corporations should be considered to be part of the executive branch, but with recognition of their distinctive needs and oversight requirements as a category of institutions.

First, the restrictive character of the federal budget encourages agencies to develop new sources of revenue (e.g., outsourcing services to the private sector and to other agencies) and to attempt to avoid increasing outlays. Starr also attacks the claim that privatization leads to less government. He contends that profit-seeking private enterprises servicing public customers will find it in their interests to lobby for the expansion of public spending with no less vigor than did their public sector predecessors.

These buyouts provide an important and useful analogy to privatization. In particular, Michael C. Jensen’s analysis of these buyouts makes it clear why privatization alone is insufficient to guarantee that providers of important services will act in the public’s interest. For decades prior to the 1980s, governments around the world increased the scope and magnitude of their activities, taking on a variety of tasks that the private sector previously had performed.

2d at 6 (“he Privacy Act only covers disclosures of information which was either directly or indirectly retrieved from a system of records.” (quoting Fisher v. NIH, 934 F. Supp. 464, 473 (D.D.C. 1996))). If the LBO experience teaches anything, it is that the focus of the privatization debate should be on the nature of organizational changes, not on a broad ideological debate over the role and efficacy of government. The replacement of public with private management does not of and by itself serve the public good, just as private ownership alone was not sufficient to maximize value to the shareholders of many large corporations. Additionally, we list certified agencies on OSC’s website and report federal agencies’ compliance with OSC’s Certification Program annually to Congress. A useful reference for World War II-era government corporations. Provides statutory authority and a description of the corporation’s activities.

Beginning in the 1990s, the central government of Brazil launched a privatization program inspired by the Washington Consensus. State-owned enterprises such as Vale do Rio Doce, Telebrás, CSN, and Usiminas (most of them mixed-economy companies) were transferred to the private sector as part of this policy. McCulloch v. Maryland (17 U.S. (4 Wheat.) 315 ). The Supreme Court’s ruling implied that partial federal ownership of a corporation, in this instance the Bank of the United States, assigned the corporation certain attributes normally reserved to the sovereign authority (e.g., non-taxable status).

This relatively unstructured approach has meant that some corporate bodies (e.g., the U.S. Postal Service) are not included in the GCCA enumeration, whereas other bodies, arguably non-corporate in function and authority (e.g., the Corporation for National and Community Service) are listed. As defined in this report, a federal government corporation is an agency of the federal government, established by Congress to perform a public purpose, which provides a market-oriented product or service and is intended to produce revenue that meets or approximates its expenditures. By this definition, there are 17 entities that are government corporations. The future of government corporations as a category of federal organization appears generally bright although they are not widely understood in executive management circles. The need for the executive branch and Congress to develop new organizational structures that take into account both the public law requirements of governmental status, and the flexibility that properly accompanies corporate bodies dependent upon revenues for services may increase.