Start of state-owned enterprise reform! 2023 will be the moment of truth for the determination to carry out systemic reforms in this sector
Automatically translated summary. The full text is available in Romanian.
On 21 December 2022, in Ștefan Vodă, the Moldovan Government approved the Strategy on the administration of state property in state-owned enterprises and companies with fully or majority state capital for 2022-2030. A commentary by Expert-Grup argues that the real test will be the actions planned for 2023.
The strategy fulfils an important commitment of Moldova as an EU candidate country and removes the biggest non-conformities flagged in the World Bank (2017) and IMF (2022) reports on state-owned companies. The commentary explains that, if implemented, the planned actions can reduce corruption risks and maximise public benefit by rationalising the state's presence in the economy, strengthening its capacity to manage public property, and improving governance and transparency.
The paper notes that in a market economy state companies risk distorting competition, with potential effects on public finances, growth, investor confidence and corruption. Applying the seven OECD corporate governance principles can bring state companies efficiency comparable to private firms, while poor governance leads to far weaker performance. The commentary was produced with NED support.
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