Synthesis of Review of Corporate Governance of State-Owned Enterprises in Burkina Faso, Mali, and Mauritania

This synthesis paper is based on a review of three countries in West Africa-Burkina Faso, Mali, and Mauritania where state owned enterprises (SOEs) continue to play an important role and Governments have embarked on a number of public sector reforms are intended to have a positive impact on SOEs. SOE governance practices and problems are having strong similarities in all of the countries reviewed. These commonalities can be ascribed to the fact that all of the countries are transitioning from centrally controlled economic and political traditions to more liberal economies and to a more democratic government. All are facing challenges with implementing the legal structures left behind from colonial times. The data that is available shows that wholly-owned and state controlled SOEs under perform. Many are technically insolvent and survive only through government support. Their performance is not only poor in the financial area but also in the provision of needed social services. The country studies link the poor performance of SOEs, in particular wholly-owned SOEs, to their governance practices. Long-lasting reforms are not simply a matter of plugging holes in the legislative or institutional framework. Corporate governance is the result of a complex interplay of law, practice, institutions and culture. Action plans need to take into account incentives and the political, social and cultural context of corporate governance in the country in addition to the legal framework. Indeed, SOE governance is a system and making it work better requires a systems approach. Most reform plans in the past have focused on one or another element of SOE governance, which might explain why many have fallen short of hopes and expectations. Systems approaches, on the other hand, are important in complex organizations (such as SOEs) whose success depends upon the interaction and cooperation of other organizations and institutions. This synthesis paper presents the objectives and the methodology used in carrying out the reviews followed by a discussion of the features and importance of SOEs in each of the countries studied. It then segues into a discussion on the performance of SOEs which is supplemented by case studies of both successful and unsuccessful SOEs and key lessons learned the paper then presents the current Government initiatives for reform and the remaining challenges and recommendations. The paper concludes with suggestions on how to implement the recommendations based on examples from other countries that have embarked on comprehensive governance reforms for the SOE sector.

Bibliographic Details

Main Authors:	Bouri, Mazen, Nankobogo, Francois, Frederick, Rich
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2010-07-01
Subjects:	ACCOUNTABILITY, ACCOUNTING, ACCOUNTING SYSTEMS, AFFILIATE, ANTI-CORRUPTION, AUDITING, AUDITORS, AUDITS, AUTHORITY, BANK FAILURE, BANK LENDING, BANKRUPTCY, BANKS, BOARDS OF DIRECTORS, BOND, CAPITAL RATIO, CAPITAL STRUCTURE, CENTRAL BANK, CITIZEN, CIVIL SOCIETY, CLIENT COUNTRIES, COMMODITIES, COMPETITIVE MARKET, COMPETITIVE MARKETS, CONFLICT OF INTEREST, CONSENSUS, CONSOLIDATION, CORPORATE BOND, CORPORATE GOVERNANCE, CORPORATE GOVERNANCE FRAMEWORK, COUNCIL OF MINISTERS, DATA COLLECTION, DECISION MAKING, DECISION MAKING PROCESSES, DECISION MAKING STRUCTURES, DECISION-MAKING, DECREE, DECREES, DEMOCRACY, DEPOSITS, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT BANKS, DEVELOPMENT FINANCE, DISCLOSURE, DIVIDENDS, DYSFUNCTIONAL GOVERNANCE, ECONOMIC DEVELOPMENT, ECONOMIC PERFORMANCE, EQUITY CAPITAL, EXCHANGE RATE, EXCHANGE RATES, EXTERNAL ACCOUNTABILITY, EXTERNAL AUDITORS, FEDERAL GOVERNMENT, FINANCE MINISTRIES, FINANCIAL CRISIS, FINANCIAL DATA, FINANCIAL INFORMATION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARY, FINANCIAL MARKETS, FINANCIAL PERFORMANCE, FINANCIAL RESOURCES, FINANCIAL STATEMENTS, FINANCIAL SUPPORT, FISCAL REVENUES, FOREIGN BANK, FOREIGN COMPANY, FOREIGN INVESTMENT, FOREIGN INVESTORS, FORMAL EMPLOYMENT, FRAUD, FRAUDULENT ACTIVITIES, GOOD GOVERNANCE, GOVERNANCE ISSUES, GOVERNANCE PRACTICES, GOVERNANCE PROBLEMS, GOVERNANCE REFORM, GOVERNANCE REFORMS, GOVERNMENT AGENCY, GOVERNMENT BUDGETS, GOVERNMENT DEPARTMENTS, GOVERNMENT EXPENDITURES, GOVERNMENT INTERVENTION, GOVERNMENT INVOLVEMENT, GOVERNMENT OFFICIALS, GOVERNMENT OWNERSHIP, HARD BUDGET CONSTRAINTS, IMPLICIT GUARANTEES, INCENTIVE STRUCTURES, INFORMAL SECTOR, INFORMATION SHARING, INSOLVENCY, INSOLVENCY PROCEDURES, INSOLVENT, INSTITUTIONAL CAPACITY, INSTITUTIONAL FRAMEWORK, INSURANCE, INSURANCE POLICY, INTEREST RATE, INTERNAL AUDIT, INTERNAL AUDIT FUNCTION, INTERNAL CONTROL, INTERNAL CONTROLS, INTERNATIONAL BEST PRACTICE, INTERNATIONAL BEST PRACTICES, INVENTORY, INVESTMENT CLIMATE, INVESTMENT CLIMATE REFORMS, JUDICIARY, KEY PERFORMANCE INDICATORS, LACK OF ACCOUNTABILITY, LAWS, LEGAL DISPUTES, LEGAL FORM, LEGAL FRAMEWORK, LEGAL INSTITUTIONS, LEGAL REFORM, LEGAL STRUCTURES, LEGISLATION, LEVEL PLAYING FIELD, LIBERALIZATION, LIMITED LIABILITY COMPANY, LIQUIDATION, LOCAL BUSINESS, LOCAL CORPORATE GOVERNANCE, MANAGEMENT INFORMATION SYSTEMS, MANAGERIAL AUTONOMY, MARKET PRICE, MINISTERS, MINISTRIES OF FINANCE, MINISTRY OF FINANCE, MINORITY SHAREHOLDER, MINORITY SHAREHOLDER PROTECTIONS, MINORITY SHAREHOLDERS, MISMANAGEMENT, MOBILE PHONE, MONOPOLIES, MONOPOLY, NATIONAL ECONOMY, NATIONALIZATION, NATURAL RESOURCES, OWNERSHIP STRUCTURE, PARTICULAR COUNTRIES, PENSION, PENSIONS, PERFORMANCE CRITERIA, PERFORMANCE INDICATORS, PERFORMANCE MEASURES, POLITICAL ACCOUNTABILITY, POLITICAL COMMITMENT, POLITICAL ECONOMY, POLITICAL INFLUENCE, POLITICAL INTERFERENCE, POLITICAL PARTIES, POLLUTION, POOR GOVERNANCE, POOR PERFORMANCE, PORTFOLIO, POVERTY ALLEVIATION, PRIME MINISTER, PRIVATE BANKS, PRIVATE INVESTMENTS, PRIVATE INVESTORS, PRIVATE OWNERSHIP, PRIVATE SECTOR DEVELOPMENT, PRIVATIZATION, PRIVATIZATIONS, PROBLEM LOANS, PROFITABILITY, PUBLIC ACCOUNTABILITY, PUBLIC ENTERPRISES, PUBLIC HEALTH, PUBLIC OPINION, PUBLIC POLICY, PUBLIC SECTOR, PUBLIC SERVICES, RAPID GROWTH, REFORM PROGRAM, REGULATOR, REGULATORS, REGULATORY FRAMEWORK, REGULATORY OVERSIGHT, REMOTE LOCATION, REPRESENTATIVES, SHAREHOLDER, SHAREHOLDERS, SOCIAL CONDITIONS, SOCIAL OUTCOMES, SOCIAL PERFORMANCE, SOCIAL POLICIES, SOCIAL SERVICES, STATE AGENCIES, STATE AGENCY, STATE ASSETS, STATE BUDGETS, STATE ENTERPRISES, STATE INTERVENTION, STATE OWNERSHIP, STATE PARTICIPATION, STATE SECTOR, STATE-OWNED ENTERPRISES, STATISTICAL ANALYSIS, TAX, TAX COLLECTIONS, TRADE UNIONS, TRANSPARENCY, TREASURY, TURNOVER, VESTED INTERESTS, VOTING,
Online Access:	http://documents.worldbank.org/curated/en/544581468191970452/Synthesis-of-review-of-corporate-governance-of-state-owned-enterprises-in-Burkina-Faso-Mali-and-Mauritania http://hdl.handle.net/10986/27603
Tags:	Add Tag No Tags, Be the first to tag this record!