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Efficient Management of State-Owned Enterprises
Report

Efficient Management of State-Owned Enterprises

Challenges and Opportunities



Editorial Rating

7

Qualities

  • Analytical
  • Overview
  • Hot Topic

Recommendation

State-owned enterprises (SOEs) remain economically meaningful in both developing and developed countries. SOEs’ quasi-public status affords them significant benefits to provide basic public services. Yet as entities subject to regulation and enforcement by the very governments that own them, SOEs can succumb to inept or corrupt management. Researchers Chul Ju Kim and Zulfiqar Ali say SOEs can improve by adopting private sector methods. getAbstract recommends this incisive analysis to policy experts and economists.

Take-Aways

  • A state-owned enterprise (SOE) is a company over which a government exercises substantial control. 
  • SOEs manage essential public facilities in return for subsidies, debt forbearance and desirable borrowing terms. 
  • But the state’s conflicting roles as owner, regulator and enforcer at times lead to inefficiencies borne of mismanagement, corruption and ill-equipped staff. 

About the Authors

Chul Ju Kim and Zulfiqar Ali are deputy dean and research associate, respectively, at the Asian Development Bank Institute.


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