- Are the state owned enterprises less profitable than the private ones?
14.03. 2018Can a state ownership of 3444 enterprises be justified from a financial standpoint? Are there any other more important goals for a state than the obtaining of profits? The Centre For Economic Strategy experts offer the answers to these questions in the analytical note: “Are the state owned enterprises less profitable than the private ones?”. The state can own the enterprises with two primary objectives in mind. The first goal lies in obtaining a return on the capital employed, the second — in undertaking certain social mission. Results of the study demonstrated that, in 2016, the state failed to receive UAH 4.93 bln in profits from state-owned enterprises. On average, the public enterprises are 2.9% less profitable than the similar private ones. This figure is many times higher for an agricultural sector — public companies in this industry generate 14.8 % less profits ... Read more
- What should the state do with its banks?
10.11. 2017Historically, state banks have been acting as an important instrument of the economic development all over the world regardless of the level of economic development in a particular country. In the countries with lower level of economic development, state banks fulfil a wide range of tasks providing financing for infrastructural projects, export and import transactions, etc. And even in the advanced countries with well-functioning private financial institutions and capital markets, state banks continue to play an important role in providing financial services for strategic sectors of economy. The key argument often put forward in favor of state banks is their ability to stimulate economic growth through financing particular sectors or regions where demand cannot be fully satisfied by private banks. The state as a policy maker in the market of banking services is interested in developing of the banking sector in order ... Read more
- Privatisation and state ownership policy
04.11. 2015Ministry of Economic Development and Trade of Ukraine is already actively working on reforming the corporate governance of state owned enterprises, while The State Property Fund of Ukraine is initiating the development of the Code of privatisation. Verkhovna Rada has defined the privatisation as a priority of the current convocation, which is expected to decrease the oligarchs’ power and increase the competition in the economy. However, there is no coherent vision and common policy from the authorities in this area so far. CES suggests to establish the cooperation between the different stakeholders and initiate the development of this policy. Read more