Public Policy Paper

Public Policy Paper

How did the Corporate Welfare policy come about?

Corporate welfare is a policy that is generally introduced by the government to promise security to investors so that they are encouraged to establish a business. The policy offers tax breaks, money grants and other special favors to corporations with the aim of increasing their competitiveness in highly competitive market environments. Corporate welfare came about as a means to protect corporations from unfavorable market conditions and the negative effects of cut-throat competition. It is especially used by governments to help smaller corporations in establishing their place in a competitive market ...