Source: Asia Development Bank
State-owned enterprises (SOEs) are still significant players in many Asian economies. Their characteristics and inherent competitive advantage as publicly owned enterprises allow them to play critical roles in providing essential public services and building and operating key infrastructure, and they are often reservoirs of public employment. However, weaknesses in their governance and their often inefficienct incentive structures can also often lead to poor performance.
SOEs must be efficient, transparent, and accountable to level the playing field for private companies, secure the growth of a vibrant private sector, and achieve sustained and inclusive economic growth. This edited volume analyzes the reform of SOEs in Asia, the results of which are mixed. The findings conclude that some key conditions generally need to be met for SOE reforms to be successful: national bureaucracies must have the capacity to implement the reforms, and adverse impacts on international trade and investment must be avoided.
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