Evidence cited here suggests that even small government stakes depress performance. A World Bank analysis reportedly finds firms with minority state ownership show notably lower labor productivity and profitability versus fully private peers. That undercuts the common claim that 'passive' or sub‑control stakes are harmless.
— If partial state ownership reliably degrades performance, 'light‑touch' equity strategies in industrial policy risk imposing hidden growth costs.
2025.09.08
70% relevant
The piece cites evidence that firms with ≥10% government stakes are less productive and less profitable, echoing the claim that even minority state ownership depresses performance.
Daniel Di Martino
2025.09.05
100% relevant
Trump administration’s 10% Intel stake paired with cited World Bank findings (e.g., −19% productivity, −3% profits for minority‑owned firms).
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