Publications

Finding Balance | 1 September 2016 | Cook Islands, Fiji, Kiribati, Marshall Islands, Federated States of Micronesia, Nauru, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor Leste, Tonga, Tuvalu, Vanuatu

Finding Balance 2016: Benchmarking the Performance of State-Owned Enterprises in Island Countries

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This fifth edition of PSDI’s Pacific SOE performance study emphasizes political commitment to reform as a key driver of commercial results.

Pacific state-owned enterprises have been formed to increase service delivery effectiveness and accountability. However, historical and financial indicators show that long-term government ownership of SOEs often results in outcomes counter to these goals. Weak governance and regulatory frameworks make it difficult for SOEs to operate on strict commercial principles over the long term. This study of SOE performance in the Pacific emphasizes political commitment to reform as a key driver for commercial results, as demonstrated by the experience of each of the countries benchmarked.

The 10 participating countries (Fiji, Kiribati, Jamaica, the Marshall Islands, Mauritius, Papua New Guinea, Samoa, Solomon Islands, Tonga, and Vanuatu) were selected for their comparability and SOE reform experience. Their participation demonstrates their governments’ willingness to identify and address the core issues within their SOE sectors. This transparency is an essential precursor to successful reform.

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