State-Owned Enterprise Engagement and Reform

Evaluation document from the Asian Development Bank (ADB) recognizes the importance of state-owned enterprises (SOEs) to its developing member countries, and the need to support the strengthening of their governance, mitigate their fiscal impact, improve their operational efficiency and commercial viability, and improve consumers’ access to quality and affordable services. SOE engagement and reform is challenging but critical. Reform is necessary because several incompetent and loss-making SOEs continue to be subsidized in the Asia and Pacific region, which is not sustainable. Reforms have progressed at an uneven pace even when governments have remained committed over prolonged periods.