State Ownership Arrangements

Abstract

Defines ownership arrangement as the way the state organizes itself to exercise its ownership rights over state-owned enterprises (SOEs), and focuses on how to create effective ownership arrangements by improving traditional ownership arrangements; by creating advisory or coordinating bodies to facilitate the state’s ownership role; by centralizing the state’s ownership functions; and by ensuring the effectiveness of ownership arrangements. While countries vary substantially, ownership models fall broadly into four categories: (1) The decentralized model, where ownership responsibilities are dispersed among different line ministries; (2) The dual model, a variation of the decentralized model, where in addition to line ministries a second ministry, such as the ministry of finance, may also have certain responsibilities; (3) The advisory model, where ownership remains dispersed but an advisory or coordinating body is created to advise ministries on ownership matters; and (4) The centralized model, where ownership responsibilities are centralized in an entity or entities that may be independent or may fall within government.