Governance Arrangements for State Owned Enterprises

Governance Arrangements for State Owned Enterprises

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...

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Main Author: Vagliasindi, Maria
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
ACCOUNTABILITY
BENCHMARKING
COMPETITIVENESS
CORPORATE GOVERNANCE GUIDELINES
INFRASTRUCTURE SECTORS
INTERNAL AND EXTERNAL GOVERNANCE FACTORS
MONOPOLY STRUCTURE
STATE-OWNED ENTERPRISES
TRANSPARENCY
Online Access:http://documents.worldbank.org/curated/en/2008/03/9049342/governance-arrangements-state-owned-enterprises
http://hdl.handle.net/10986/6564
id okr-10986-6564
recordtype oai_dc
spelling okr-10986-65642021-04-23T14:02:31Z Governance Arrangements for State Owned Enterprises Vagliasindi, Maria ACCOUNTABILITY BENCHMARKING COMPETITIVENESS CORPORATE GOVERNANCE GUIDELINES INFRASTRUCTURE SECTORS INTERNAL AND EXTERNAL GOVERNANCE FACTORS MONOPOLY STRUCTURE STATE-OWNED ENTERPRISES TRANSPARENCY 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. 2012-05-29T17:30:04Z 2012-05-29T17:30:04Z 2008-03 http://documents.worldbank.org/curated/en/2008/03/9049342/governance-arrangements-state-owned-enterprises http://hdl.handle.net/10986/6564 English Policy Research Working Paper; No. 4542 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTABILITY
BENCHMARKING
COMPETITIVENESS
CORPORATE GOVERNANCE GUIDELINES
INFRASTRUCTURE SECTORS
INTERNAL AND EXTERNAL GOVERNANCE FACTORS
MONOPOLY STRUCTURE
STATE-OWNED ENTERPRISES
TRANSPARENCY
spellingShingle ACCOUNTABILITY
BENCHMARKING
COMPETITIVENESS
CORPORATE GOVERNANCE GUIDELINES
INFRASTRUCTURE SECTORS
INTERNAL AND EXTERNAL GOVERNANCE FACTORS
MONOPOLY STRUCTURE
STATE-OWNED ENTERPRISES
TRANSPARENCY
Vagliasindi, Maria
Governance Arrangements for State Owned Enterprises
relation Policy Research Working Paper; No. 4542
description 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.
format Publications & Research :: Policy Research Working Paper
author Vagliasindi, Maria
author_facet Vagliasindi, Maria
author_sort Vagliasindi, Maria
title Governance Arrangements for State Owned Enterprises
title_short Governance Arrangements for State Owned Enterprises
title_full Governance Arrangements for State Owned Enterprises
title_fullStr Governance Arrangements for State Owned Enterprises
title_full_unstemmed Governance Arrangements for State Owned Enterprises
title_sort governance arrangements for state owned enterprises
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2008/03/9049342/governance-arrangements-state-owned-enterprises
http://hdl.handle.net/10986/6564
_version_ 1764400503083499520

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