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Governance arrangements for state owned enterprises

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  • Vagliasindi, Maria

Abstract

The aim of this paper is to shed new light on key challenges in governance arrangements for state owned enterprises in infrastructure sectors. The paper provides guidelines on how to classify the fuzzy and sometimes conflicting development goals of infrastructure and the governance arrangements needed to reach such goals. Three policy recommendations emerge. First, some of the structures implied by internationally adopted principles of corporate governance for state owned enterprises favoring a centralized ownership function versus a decentralized or dual structure have not yet been sufficiently"tested"in practice and may not suit all developing countries. Second, general corporate governance guidelines (and policy recommendations) need to be carefully adapted to infrastructure sectors, particularly in the natural monopoly segments. Because the market structure and regulatory arrangements in which state owned enterprises operate matters, governments may want to distinguish the state owned enterprises operating in potentially competitive sectors from the ones under a natural monopoly structure. Competition provides not only formidable benefits, but also unique opportunities for benchmarking, increasing transparency and accountability. Third, governments may want to avoid partial fixes, by tackling both the internal and external governance factors. Focusing only on one of the governance dimensions is unlikely to improve SOE performance in a sustainable way.

Suggested Citation

  • Vagliasindi, Maria, 2008. "Governance arrangements for state owned enterprises," Policy Research Working Paper Series 4542, The World Bank.
  • Handle: RePEc:wbk:wbrwps:4542
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    Citations

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    Cited by:

    1. Evans, Lewis, 2009. "Capital Market Integration: The Structure of the New Zealand Economy and its Capital Markets," Working Paper Series 4035, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    2. Afia Malik, 2021. "Corporate Governance in the State-Owned Electricity Distribution Companies," PIDE Knowledge Brief 2021:40, Pakistan Institute of Development Economics.
    3. repec:vuw:vuwscr:19137 is not listed on IDEAS
    4. Dónal Palcic & Eoin Reeves, 2013. "State-Owned Enterprise Policy and the Loss of Economic Sovereignty: The Case of Ireland," Public Organization Review, Springer, vol. 13(2), pages 117-130, June.
    5. Stavros A. Zenios, 2013. "The Cyprus Debt: Perfect Crisis and a Way Forward," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 7(1), pages 3-45, June.
    6. Maciej Bałtowski & Grzegorz Kwiatkowski, 2014. "Modele funkcjonowania i nadzoru państwa nad przedsiębiorstwami państwowymi," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 5-26.
    7. Malgas, Isaac & Eberhard, Anton, 2011. "Hybrid power markets in Africa: Generation planning, procurement and contracting challenges," Energy Policy, Elsevier, vol. 39(6), pages 3191-3198, June.
    8. Pierre BAUBY, 2019. "The governance of State-owned Enterprises (SOEs) operating under monopoly situation," CIRIEC Working Papers 1931, CIRIEC - Université de Liège.
    9. Evans, Lewis, 2009. "Capital Market Integration: The Structure of the New Zealand Economy and its Capital Markets," Working Paper Series 19137, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    10. Biggar, Darryl, 2022. "Seven outstanding issues in energy network regulation," Energy Economics, Elsevier, vol. 115(C).
    11. Anne Strand Alfredsen Larsen & Gro Holst Volden & Bjørn Andersen, 2021. "Project Governance in State-Owned Enterprises: The Case of Major Public Projects’ Governance Arrangements and Quality Assurance Schemes," Administrative Sciences, MDPI, vol. 11(3), pages 1-27, July.
    12. Spartak Keremidchiev & Miroslav Nedelchev, 2020. "Foreign models and policies for state-owned enterprises," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 3-14,15-25.
    13. Twesigye, Peter, 2022. "Structural, governance, & regulatory incentives for improved utility performance: A comparative analysis of electric utilities in Tanzania, Kenya, and Uganda," Utilities Policy, Elsevier, vol. 79(C).

    More about this item

    Keywords

    National Governance; Banks&Banking Reform; Public Sector Economics&Finance; Debt Markets; Public Sector Expenditure Analysis&Management;
    All these keywords.

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