State-owned Enterprise Management: Advantages of Centralized Models

This document analyzes the advantages and disadvantages of the different management models of state-owned enterprises (SOEs) in Latin America and the Caribbean. SOEs are important in the region. In many countries, they provide basic services to citizens, and their economic importance is relevant in terms of public finance. At the same time, SOEs confront political, financial, regulatory, and managerial problems, making them less efficient and transparent. In turn, governments should adopt management models to minimize these problems, while helping to ensure the quality of services and avoid the associated fiscal risks. This document argues that centralized models offer more advantages in correcting the current deficiencies of SOEs.