State-owned enterprises (SOEs) play an important role in many economies, and operate across a range of sectors, including infrastructure, natural resources, energy, logistics, transportation, financial services and manufacturing. SOEs can provide public goods and services that cannot be supplied by markets forces alone, generate revenue streams for governments, make investments to achieve a policy objective, support development, and advance science and technological progress.
State ownership of firms arises in several circumstances. SOEs could maintain legacy ownership in sectors that were once natural monopolies, for example to develop and extract natural resources. In other instances, governments have nationalised or temporarily acquired stakes in distressed firms, including due to crises, such as the 2008 Financial Crisis and the COVID-19 pandemic. Some jurisdictions have also leveraged SOEs to develop strategic industries.
Governments shape SOE decision-making and structure as shareholders, policymakers and in many cases regulators. Sound corporate governance, professionalised ownership, integrity, transparency and accountability are essential to address potential conflicts of interest, as well as the risks of corruption and illegal influence. This is particularly important to ensure SOEs remain effective in their mission and accountable to citizens and taxpayers as their ultimate owners.
The OECD compendium on Ownership and Governance of State-Owned Enterprises 2024 accompanies the release of the new edition of the OECD Guidelines on Corporate Governance of State-Owned Enterprises (the SOE Guidelines), the leading international standard for policymakers to design effective ownership and corporate governance frameworks for SOEs. This compendium is a rich source of comparative information and global trends in this area. It can help countries take stock of their current practices and identify opportunities for reform. Following prior editions in 2018 and 2021, this compendium of policies and practices integrates new information on sustainability, as well as recent work on transparency, accountability, and the roles of boards. It draws on the knowledge and expertise of the OECD Working Party on State Ownership and Privatisation Practices, which is a platform to exchange best practices and monitor the implementation of the SOE Guidelines.
Mathias Cormann,
OECD Secretary-General