State-owned Enterprise Management: Advantages of Centralized Models

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Author
Moreno de Acevedo Sánchez, Enrique
Date issued
May 2016
Subject
Corporate Governance;
Public Administration;
State-Owned Enterprise
JEL code
H11 - Structure, Scope, and Performance of Government;
G30 - Corporate Finance and Governance: General;
H83 - Public Administration • Public Sector Accounting and Audits;
H50 - National Government Expenditures and Related Policies: General
Category
Discussion Papers
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.