State-Owned Enterprises in Emerging Europe: The Good, the Bad, and the Ugly
IMF Working Papers, October 30, 2017
Source details
- Canonical URL
- State-Owned Enterprises in Emerging Europe: The Good, the Bad, and the Ugly
Other formats
Bibliographic details
- Authors: Uwe Böwer
- Published: October 30, 2017
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781484315163.001
Overview
- Author: Uwe Böwer
- Publication date: October 30, 2017
- Type: IMF Working Paper (Working Paper No. 2017/221)
- Scope: Review of SOE landscape, performance, and recent governance reform experience in 11 Emerging European countries, with Sweden as a benchmark.
- Data: Based on a new firm-level dataset covering SOEs and private firms across sectors, notably energy and transport.
Key findings on SOE performance
- Profitability and efficiency of resource allocation of SOEs lag those of private firms in most sectors.
- There is substantial cross-country variation in SOE performance.
- SOEs play an important role in Emerging Europe’s economies, notably in the energy and transport sectors.
Main risks from poor SOE performance
- Large and risky contingent liabilities could stretch public finances.
- Sizeable state ownership of banks coupled with poor governance could threaten financial stability.
- Negative productivity spillovers could affect the economy at large.
SOE governance weaknesses and recommended reforms
- Governance frameworks are partly weak and should be strengthened along three lines:
- Fleshing out a consistent ownership policy.
- Giving teeth to financial oversight.
- Making SOE boards more professional.
Subject areas and keywords
- Subjects: Contingent liabilities; Economic sectors; Energy sector; Production; Productivity; Public enterprises; Public financial management (PFM); Services sector.
- Keywords: Contingent liabilities; Emerging Europe; Energy sector; Europe; firm profitability; governance reform; infrastructure sector; output share; oversight unit; ownership function; performance target; Productivity; professionalized SOE board; Public enterprises; reform effort; Services sector; SOE governance challenge; SOE landscape; SOE performance; SOE profitability; State-Owned Enterprises; WP.
Content in this bundle
- State-Owned Enterprises in Emerging Europe: The Good, the Bad, and the Ugly, WP/17/221, October 2017