Decentralisation of Public Enterprises in federal countries

Abstract

To bring concepts and knowledge to bear more effectively on policy analysis and programme design, a framework for analysis is needed that focuses on alternatives for organising and financing the State Owned Enterprises (SOEs). Whether the motivating force behind organisation of SOEs is political or economic, a developing country situation demands that the strategy be looked at from the perspective of the provision of the people’s needs. The paper looks at the forms of SOEs and the relevance of fiscal federalism in this context. Past experience has some lessons and a flawed policy can have unwelcome consequences. Keeping in view the different initial conditions, strategies need to be devised for organisation of SOEs.