## 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](https://www.imf.org/en/publications/wp/issues/2017/10/30/state-owned-enterprises-in-emerging-europe-the-good-the-bad-and-the-ugly-45181)

## Other formats

- [Markdown version](/en/publications/wp/issues/2017/10/30/state-owned-enterprises-in-emerging-europe-the-good-the-bad-and-the-ugly-45181/index.md)
- [Structured JSON version](/en/publications/wp/issues/2017/10/30/state-owned-enterprises-in-emerging-europe-the-good-the-bad-and-the-ugly-45181/index.json)
- [Bundle manifest](/en/publications/wp/issues/2017/10/30/state-owned-enterprises-in-emerging-europe-the-good-the-bad-and-the-ugly-45181/bundle-manifest.json)

## 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**
  - [State-Owned Enterprises in Emerging Europe: The Good, the Bad, and the Ugly, WP/17/221, October 2017 (Markdown version)](/-/media/files/publications/wp/2017/wp17221.pdf.md){rel="alternate" type="text/markdown"}
  - [State-Owned Enterprises in Emerging Europe: The Good, the Bad, and the Ugly, WP/17/221, October 2017 (PDF)](/-/media/files/publications/wp/2017/wp17221.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2017/10/30/state-owned-enterprises-in-emerging-europe-the-good-the-bad-and-the-ugly-45181_