State-Owned Enterprises: Why They Exist and What Impact They Have on the Economy
Automatically translated summary. The full text is available in Romanian.
State-owned companies remain an integral part of the economy of the Republic of Moldova, acting as major owners, operators and employers in several strategic sectors. A study presents a compact, comprehensive analysis of the sector and aims to stimulate forward-looking discussion on reforming it.
The assets of state-owned companies amount to over a quarter of GDP (26.5%) and about 12% of corporate sector assets. They employ 6.2% of staff in the business sector, while the top ten companies with state presence generate 82% of all state-company sales. They operate in gas imports and distribution, electricity networks, telecommunications, railways, transport, road infrastructure and the food industry.
Public debate focuses on privatisations, irregularities, political interference and managers' salaries, while systemic reforms and a clear understanding of the sector's role are lacking. The study has four chapters: what state companies are and why they exist; their role in the economy; their benefits and risks; and the OECD corporate governance principles, including Moldova's progress in aligning with them.
Recent publications from Economic growth policies
See all
The socio-economic encyclopedia of Moldova, first edition
Moldova must launch a broad fiscal consolidation reform to bring the budget deficit within manageable limits
Monitoring Report on the Implementation of the State Property Management Strategy for State-Owned Enterprises and Companies with Fully or Majority State Capital
