Smoldering Embers: Do State-Owned Enterprises Threaten Fiscal Stability in the Caribbean?
Gerardo Reyes-Tagle, Aldo Musacchio, Carolina Pan, Yery Park
This book examines the role of state-owned enterprises (SOEs) in contributing to the fiscal instability of the Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago (CCB6), with the aim of providing tangible guidance for policymakers seeking to address this issue. Using an original dataset of SOE performance in the Caribbean, the contributors focus on the fiscal implications of unchecked growth, poor oversight, and mismanagement of SOEs, with particular focus on commercial SOEs. The authors examine the historical, economic, and socio-political context of SOEs in the CCB6 and stress the need for simultaneous fiscal reform both at the federal and firm levels. The authors analyze the SOE sectors growth and performance to date, revealing entrenched challenges, specifically around incentives and accountability. The recommendations propose adaptations of accepted international best practices and lay out long-term objectives and the more feasible points of entry for fiscal reform.