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dc.titleState-Owned Enterprise Reform in Latin America: Issues and Possible Solutions
dc.contributor.authorMusacchio, Aldo
dc.contributor.authorPineda, Emilio
dc.contributor.authorGarcía, Gustavo Antonio
dc.contributor.orgunitFiscal and Municipal Management Division
dc.coverageLatin America
dc.date.available2015-09-03T00:00:00
dc.date.issue2015-08-31T00:00:00
dc.description.abstractThis paper examines the challenges governments in Latin America face to control their state-owned enterprises (SOEs). It argues that, absent privatization, governments can rely on a variety of reforms to address some of the main problems affecting SOEs. These problems are divided into corporate governance problems, which include agency and multiple-principals problems, and the fiscal governance problem, which has to do with the discretionary nature of the fiscal relationship between the government and its enterprises. Then the paper discusses a variety of solutions for each of these problems. Rather than providing a single recipe, it argues that governments can design governance mechanisms that rely on the market (e.g., by partially privatizing a firm and listing it on a stock exchange), on ex-ante administrative controls, or on hybrid solutions that combine both. Thus, the paper argues that the mechanisms to deal with the problems of SOEs have to be designed on a case-by-case basis, taking into account the specific problems of the public enterprise in question and the economic (and political) environment affecting it.
dc.format.extent51
dc.identifier.doihttps://doi.org/10.18235/0000128
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/State-Owned-Enterprise-Reform-in-Latin-America-Issues-and-Possible-Solutions.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectFiscal Management
dc.subjectPublic Service
dc.subjectFiscal Policy
dc.subjectGovernance
dc.subject.jelcodeG30 - Corporate Finance and Governance: General
dc.subject.jelcodeH11 - Structure, Scope, and Performance of Government
dc.subject.jelcodeH50 - National Government Expenditures and Related Policies: General
dc.subject.jelcodeH77 - Intergovernmental Relations • Federalism • Secession
dc.subject.keywordsstate reform;corporate governance;Latin America;fiscal decentralization;State-owned enterprises;privatization
dc.typeDiscussion Papers
idb.identifier.pubnumberDiscussion Papers
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