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Assessing Public Investment Management Functions and Institutional Arrangements for State-Owned Enterprises: A Diagnostic Framework

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dc.contributor.authorGlenday, Graham
dc.contributor.authorLe, Tuan Minh
dc.contributor.authorMahdi, Shireen
dc.contributor.authorPijuan, Albert
dc.date.accessioned2021-07-21T19:03:32Z
dc.date.available2021-07-21T19:03:32Z
dc.date.issued2021-07-20
dc.description.abstractThis paper provides a diagnostic framework (DF) for helping governments conceptualize and develop desirable functions and institutional arrangements for public investments managed by state-owned enterprises (SOEs). The DF also extends its coverage to not-for-profit, quasi-independent government entities. Determining the appropriate approach to managing SOE public investments requires a measured reconciliation of multiple trade-offs. In certain cases, when SOEs make profit-seeking investments for commercial purposes, operate in competitive markets, and make investments that present no major externalities, governments should take a hands-off approach, a scenario that may include cases in which governments simply exit and leave the corporate governance in the hands of private investors. Governments should let SOEs make their own investment decisions in pursuit of business efficiency. In such instances, governments need to establish a level playing field on which SOEs can operate and compete with private actors and exercise their public interest as a shareholder. In other cases, however, governments should establish a robust system - well aligned with the national public investment management (PIM) architecture to regulate SOE investments. This alignment should occur when SOE investments extend the role of line ministries and are financed by the general government budget or involve large-scale projects, posing significant fiscal risks through implicit or explicit contingent liabilities. The PIM practiced by SOEs should also align with the national PIM system when there are potential detrimental impacts on the environment, climate, and resilience. Our DF consists of four matrices intended to be used in combination to assess the gap between a country’s current SOE PIM and international best practices. Matrix 1 sketches the guideposts to determine which stakeholders should guard SOE investments, focusing on who. Matrix 2 helps assess PIM functions, focusing on what should be done under each PIM function and by whom. Matrix 3 presents a framework and a set of measurement indicators to evaluate how governments should introduce PIM processes and systems. Matrix 4 gives some consideration to the project viability of SOEs. To effectively apply the DF, it cannot be used mechanically: it must be grounded in a good understanding of the country’s political economy and the vested incentives of all stakeholders involved in SOE PIM.en
dc.identifierhttp://documents.worldbank.org/curated/en/740231626767061447/Assessing-Public-Investment-Management-Functions-and-Institutional-Arrangements-for-State-Owned-Enterprises-A-Diagnostic-Framework
dc.identifier.doi10.1596/36002
dc.identifier.urihttps://hdl.handle.net/10986/36002
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesEquitable Growth, Finance and Institutions Insight;
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectSTATE-OWNED ENTERPRISES
dc.subjectFINANCIAL ACCOUNTABILITY
dc.subjectPUBLIC INVESTMENT MANAGEMENT
dc.subjectCORPORATE GOVERNANCE
dc.subjectFISCAL RISK
dc.titleAssessing Public Investment Management Functions and Institutional Arrangements for State-Owned Enterprisesen
dc.title.subtitleA Diagnostic Frameworken
dc.typeReporten
dc.typeRapportfr
dc.typeInformees
dspace.entity.typePublication
okr.crossref.titleAssessing Public Investment Management Functions and Institutional Arrangements for State-Owned Enterprises
okr.date.disclosure2021-07-20
okr.date.doiregistration2025-05-07T08:37:06.103737Z
okr.doctypeEconomic & Sector Work
okr.doctypeEconomic & Sector Work::Public Investment Review
okr.docurlhttp://documents.worldbank.org/curated/en/740231626767061447/Assessing-Public-Investment-Management-Functions-and-Institutional-Arrangements-for-State-Owned-Enterprises-A-Diagnostic-Framework
okr.guid740231626767061447
okr.identifier.externaldocumentum090224b088803c5e_1_0
okr.identifier.internaldocumentum33280393
okr.identifier.report161838
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/740231626767061447/pdf/Assessing-Public-Investment-Management-Functions-and-Institutional-Arrangements-for-State-Owned-Enterprises-A-Diagnostic-Framework.pdfen
okr.topicPublic Sector Development::State Owned Enterprise Reform
okr.topicPublic Sector Development::Public Investment Management
okr.topicPublic Sector Development::Public Sector Economics
okr.unitEFI-AFR1-MTI-MacroFiscal-2 (EAEM2)
relation.isAuthorOfPublication35337393-a7fb-5e96-9780-2c869ccd8ab4
relation.isAuthorOfPublication.latestForDiscovery35337393-a7fb-5e96-9780-2c869ccd8ab4
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