Governments in Developing Countries: Perpetrating or Curbing Social Inequality?

Abstract

Governments through the mechanism of state-owned enterprises (SOEs) are mandated to provide public services such as education, health, water, and sanitation to all its citizens. Hence, the public sector remains a major instrument for reducing social inequality and promoting income redistribution. Political science literature alludes to the fact that SOEs can be used as a tool to distribute income and alleviate poverty in economies of all types. However, inefficiency of these organizations has led them to appear as vehicles of social inequality in most developing nations. This is because public goods have become out of reach for the majority of citizens. In essence, failure to deliver public value by state-owned entities has resulted in most citizens living in poverty. The chapter considers how SOEs may alleviate the current social inequality present in emerging market economies (EMEs). A systematic review of literature and secondary data analysis was used to establish the current performance of SOEs in service delivery in light of addressing social inequality. Findings allude to the current failure of SOEs to alleviate the problem of social inequality. The chapter concludes by showing how government through the instrument of SOEs may endeavor to reduce social inequality. The study adds to the body of literature in public administration and political science literature.