purposes

SERVICE IMPROVEMENT

Governments’ accountability and success are measured by their efficiency in providing public services and delivering social benefits. This is more and more expressed by citizens’ approvals through democratic means. A practical way to enhance the delivery of services is through government-owned companies.

SECTOR REFORM

Governments may take the opportunity to improve public services and restructure sectors by introducing advanced policies and regulatory frameworks while transforming government-owned entities into companies. For example, governments can transform the energy sector by breaking electricity services into generation, transport, and distribution while creating companies in each of the areas.

LOCAL ECONOMIC DEVELOPMENT

Marginalized cities, urban districts, or semi-rural areas suffering from unemployment, lack of public services, and general poverty, have in government-owned businesses a way to start reversing the trend. Government-owned entities can act as anchor entities and pull forces to generate minimum conditions for economic growth, employment, and a further attraction of private investment.