TURNING THE STATE-OWNED ENTERPRISES FROM A BURDEN INTO AN OPPORTUNITY FOR ECONOMIC DEVELOPMENT

Abstract

The sector of state-owned enterprises (SOEs)1 in the Republic of Moldova is plagued by the problem of weak governance, both at the state level (regulations and policies) and at the company level. As a result, the financial and operational performance of SOEs over the last years has been in continuous decline. However, state-owned enterprises can be transformed from a burden for Moldova’s economic development into a source of opportunities and tools that could generate a number of important economic reforms. The results of the given research demonstrate that state-owned enterprises have the potential to serve as important channels for attracting private investment, boost capital market development, develop and promote new financial instruments, strengthen state security and fortify strategic infrastructure.

Keywords

• state-owned enterprises
• private ownership
• corporate governance
• public property agency.