SlideShare a Scribd company logo
STATE-OWNED ENTERPRISES
AS GLOBAL COMPETITORS
GLOBALISATION
A CHALLENGE OR AN OPPORTUNITY?
Antonio Capobianco
OECD Competition Division
Background on the SOE dataset
• Third edition of a recurrent review of the characteristics of
national state-owned enterprise sectors, by the Working
Party on State Ownership and Privatisation Practices.
• Covers 40 countries, mainly in the OECD area but also, for
the first time, Argentina, Brazil, China, India and (partially)
Saudi Arabia.
• Examines the size of SOEs – by company value and
employment – and their distribution by sector and corporate
form.
• Also examines state minority shareholdings in listed
companies, including an inventory of individual enterprises.
Definition of “SOE” uses the scope of applicability of the OECD Guidelines on
Corporate Governance of State Ownership Enterprises, which is based on
entities’ corporate forms, commercial orientation and degree of state ownership
and control.
2
• Taking China aside for a moment, governments in the sample area are
the full or majority owners of 2 467 commercially-oriented enterprises
valued at USD 2.4 trillion and employing over 9.2 million people.
• In China alone, the central government owns 51 000 SOEs, valued at
USD 29.2 trillion and employing approximately 20.2 million people.
• China is the largest SOE sector by number of SOEs. followed by
Hungary (370 SOEs), India (270), Brazil (134), the Czech Republic
(133), Lithuania (128), Poland (126) and the Slovak Republic (113).
• Governments in the sample area (outside of China) hold minority
shareholdings in 134 listed companies valued at USD 912.3 billion and
employing 2.8 million people. While not considered SOEs per se,
minority shareholdings can provide insights into the changing landscape
of state involvement in the corporate economy.
Snapshot of main findings
Source: OECD (2017), The Size and Sectoral Distribution of State-Owned Enterprises, OECD, Paris. Note: Figures exclude China.
3
Among OECD countries , the largest SOE sectors as a percentage of
employment (a more useful comparison than by absolute values) are
found in Norway, Latvia, Estonia, Hungary, France, Finland, the Czech
Republic, the Slovak Republic and Italy.
SOEs represent on average 2-3% of
national employment in OECD area
SOE employees as % of all non-agricultural employees: OECD top 159.6%
6.7%
4.8%
4.2%
3.5% 3.5% 3.4% 3.1% 3.1% 2.9% 2.6% 2.5% 2.4%
2.1% 1.9%
Norway Latvia Estonia Hungary France Finland Czech
Republic
Slovak
Republic
Italy Sweden Turkey Ireland Iceland Austria New
Zealand
Source: OECD (2017), The Size and Sectoral Distribution of State-Owned Enterprises, OECD, Paris. Note: Figures exclude China.
4
When the analysis is expanded to include minority-owned listed companies,
employment share rises considerably in some countries (e.g. Norway, Finland
and France). Germany and Greece replace Iceland and New Zealand in the
league table.
Employment share rises when
minority shareholdings are included
Employees of SOEs and state minority-owned companies as % of national employment: OECD top 15
Source: OECD (2017), The Size and Sectoral Distribution of State-Owned Enterprises, OECD, Paris. Note: Figures exclude China.
0%
2%
4%
6%
8%
10%
12%
14%
Employees of minority state-
owned companies as
percentage of non-
agricultural employees
Employees of SOEs as
percentage of non-
agricultural employees
5
The electricity and gas, transportation, telecoms and other utilities
sectors account for 51% of all SOEs by value and 70% by employment.
Finance is the largest individual sector, at 26% of SOEs by value.
SOEs are highly concentrated in the
network industries
Sectoral distribution of SOEs by value Sectoral distribution of SOEs by employment
Source: OECD (2017), The Size and Sectoral Distribution of State-Owned Enterprises, OECD, Paris. Note: Figures exclude China.
6
Most state minority-owned companies by value are found in the
manufacturing sector (32%), followed by telecoms (29%) and finance
(17%). Minority shareholdings could indicate intent to relinquish state
control in these sectors or temporarily shore up failing companies.
State minority shareholdings
Source: OECD (2017), The Size and Sectoral Distribution of State-Owned Enterprises, OECD, Paris. Note: Figures exclude China.
Other utilities, real
estate and other
activities
5%
Primary sectors
8%
Manufacturing
32%
Finance
17%
Telecoms
29%
Electricity and gas
7%
Transportation
2%
7
8
Importance of SOEs in modern economies
The world's largest 10 SOEs in the business
(year 2012-13 - USD billion)
Source: OECD (2014); *Forbes 2000
Global
rank*
Company Sector Domicile
Market
value
Sales Assets
1 ICBC Banking China 237.3 134.8 2813.5
2 China Construction Bank Banking China 202.0 113.1 2241
8 Agricultural Bank of China Banking China 150.8 103.0 2124.2
10 PetroChina Oil & Gas China 261.2 308.9 347.8
11 Bank of China Banking China 131.7 98.1 2033.8
17 Gazprom Oil & Gas Russia 111.4 144 339.3
20 Petrobras Oil & Gas Brazil 120.7 144.1 331.6
26 Sinopec-China Petroleum Oil & Gas China 106.9 411.7 200.0
29 China Mobile Telecom Hong Kong 213.8 88.8 168.7
30 ENI Oil & Gas Italy 86.3 163.7 185.2
• 22% of the world’s largest 100 firms are state controlled
companies – this is the highest percentage in decades
• SOEs operate in sectors important to international supply
chains, such as public utilities, manufacturing, metals and
mining, and petroleum
• There has been a surge of SOE-led international M&A activity
observed over the last 10 years
• These trends are likely to continue in the foreseeable future
SOEs are going global – A few facts
9
SOEs as targets and acquirers of IM&A
by deal value (USD million), 1996 - 2015
10
11
SOEs international M&A by sector
0
5
10
15
20
25
30
35
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Share of international M&As with a state-owned acquirer
(% of deal numbers)
Mining Oil and gas Airlines Power generation Telecommunication
Source: OECD (2014), OECD (2014), Corporate Governance Working Paper No. 14
SOEs may induce their government owners to
grant them certain advantages, ranging from:
• Privileged market position
• Soft loans
• Outright subsidies
• Regulatory exemptions
• Fiscal advantages
• State backing
• No bankruptcy
Concerns about the internationalisation
of state-owned enterprises
12
• SOEs may not always operate on a level
playing field
• Compensation and special advantages
granted by governments in return for
public policy obligations at home can have
harmful spill-overs effects
• Asymmetric contestability in home
markets for foreign competitors
SOE as global competitors – Some
perceived concerns
13
Business perceptions concerning preferential
treatment granted to foreign competitors
35
16
50
30
15
54
0
10
20
30
40
50
60
Privately-owned enterprises (less than 10%) state ownership Majority state-owned (between 50 and 100% state ownership)
No impact Some impact Strong impact
1. Preferential treatment is defined as government measures or actions, which affect costs or
prices of commercial enterprises and which are extended only to certain specific
enterprises or groups of enterprises.
2. Own government is defined as the government of respondent’s country of headquarters.
Source: OECD Business Survey on State Influence on Competition in International Markets.
14
• Address distortions that may arise from state
intervention at the domestic level through competition-
related remedies
• Adjusting investment policy frameworks toward
preserving a level playing field
• Identify and remedy gaps in the coverage of
multilateral rules regarding trade distorting
government and enterprise behaviour.
• Promote high standards of governance, disclosure,
accountability and transparency for SOEs.
Policy Options
15
Business and Finance
Outlook (OECD 2017)
State-Owned
Enterprises as Global
Competitors: A
Challenge or an
Opportunity?
(OECD, 2016)
State-Invested
Enterprises in the
Global Marketplace:
Implications for a
Level Playing Field,
Working Paper
(OECD, 2014)
OECD main references
16
The Size and Sectoral
Distribution of SOEs in
OECD and Partner
Countries, Publication
(OECD, 2014)
Competitive Neutrality:
National Practices in
Partner Countries,
Background Report
(OECD, 2013)
A Stock-Taking of
International Investment by
State-Owned Enterprises
and of Relevant Elements
of National and
International Policy
Frameworks,
Background Report
(OECD, 2013)
OECD main references
17
State-Owned Enterprises:
Trade Effects and Policy
Implications, Working
Paper (OECD, 2013)
Competitive Neutrality:
Maintaining a Level
Playing Field between
Public and Private
Business, Publication
(OECD, 2012)
State-owned
enterprises and the
principle of
competitive neutrality
(OECD, 2009)
OECD main references
18
• Business and Finance Outlook (OECD 2017)
• State-Owned Enterprises as Global Competitors: A Challenge or
an Opportunity? (OECD, 2016)
• State-Invested Enterprises in the Global Marketplace: Implications
for a Level Playing Field, Working Paper (OECD, 2014)
• The Size and Sectoral Distribution of SOEs in OECD and Partner
Countries, Publication (OECD, 2014)
• Competitive Neutrality: National Practices in Partner Countries,
Background Report (OECD, 2013)
• A Stock-Taking of International Investment by State-Owned
Enterprises and of Relevant Elements of National and International
Policy Frameworks, Background Report (OECD, 2013)
• State-Owned Enterprises: Trade Effects and Policy Implications,
Working Paper (OECD, 2013)
• Competitive Neutrality: Maintaining a Level Playing Field between
Public and Private Business, Publication (OECD, 2012)
• State-owned enterprises and the principle of competitive neutrality
(OECD, 2009)
OECD main references
19
Thank you for your attention!
Antonio Capobianco
antonio.capobianco@oecd.org
20
oe.cd/comp-neutrality
STATE-OWNED ENTERPRISES
AS GLOBAL COMPETITORS
GLOBALISATION
A CHALLENGE OR AN OPPORTUNITY?
Antonio Capobianco
OECD Competition Division

More Related Content

What's hot

Promoting responsible investment in Myanmar - Prof. R Nieuwenkamp
Promoting responsible investment in Myanmar - Prof. R NieuwenkampPromoting responsible investment in Myanmar - Prof. R Nieuwenkamp
Promoting responsible investment in Myanmar - Prof. R Nieuwenkamp
OECD Directorate for Financial and Enterprise Affairs
 
Independence of competition authorities: from designs to practices – NORWAY –...
Independence of competition authorities: from designs to practices – NORWAY –...Independence of competition authorities: from designs to practices – NORWAY –...
Independence of competition authorities: from designs to practices – NORWAY –...
OECD Directorate for Financial and Enterprise Affairs
 
Institutional investors and long-term investment: 2014 project report
Institutional investors and long-term investment: 2014 project reportInstitutional investors and long-term investment: 2014 project report
Institutional investors and long-term investment: 2014 project report
OECD Directorate for Financial and Enterprise Affairs
 
Towards conflict-free mineral supply chains - A global standard
Towards conflict-free mineral supply chains - A global standardTowards conflict-free mineral supply chains - A global standard
Towards conflict-free mineral supply chains - A global standard
OECD Directorate for Financial and Enterprise Affairs
 
Workshop Employee Financial Participation - O Kelly
Workshop Employee Financial Participation - O KellyWorkshop Employee Financial Participation - O Kelly
Workshop Employee Financial Participation - O Kelly
Social Europe
 
Finance Finland's 2019 EU objectives
Finance Finland's 2019 EU objectivesFinance Finland's 2019 EU objectives
Finance Finland's 2019 EU objectives
Finanssiala ry - Finance Finland
 
Independence of competition authorities: from designs to practices – Prof. Al...
Independence of competition authorities: from designs to practices – Prof. Al...Independence of competition authorities: from designs to practices – Prof. Al...
Independence of competition authorities: from designs to practices – Prof. Al...
OECD Directorate for Financial and Enterprise Affairs
 
Action 4 and the banking sector
Action 4 and the banking sector Action 4 and the banking sector
Action 4 and the banking sector
Federica Pitrone
 
Investment in clean energy infrastructure
Investment in clean energy infrastructureInvestment in clean energy infrastructure
Investment in clean energy infrastructure
OECD Directorate for Financial and Enterprise Affairs
 
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Co...
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Co...OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Co...
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Co...
OECD Directorate for Financial and Enterprise Affairs
 
COP21 - Fiduciary Duty and Climate Change
COP21 - Fiduciary Duty and Climate ChangeCOP21 - Fiduciary Duty and Climate Change
COP21 - Fiduciary Duty and Climate Change
OECD Directorate for Financial and Enterprise Affairs
 
Independence of competition authorities: from designs to practices – OECD Bac...
Independence of competition authorities: from designs to practices – OECD Bac...Independence of competition authorities: from designs to practices – OECD Bac...
Independence of competition authorities: from designs to practices – OECD Bac...
OECD Directorate for Financial and Enterprise Affairs
 
OECD Parliamentary Days 2016 - COP21 Outcomes and implications
OECD Parliamentary Days 2016 - COP21 Outcomes and implicationsOECD Parliamentary Days 2016 - COP21 Outcomes and implications
OECD Parliamentary Days 2016 - COP21 Outcomes and implications
OECD - Organisation for Economic Co-operation and Development
 
Mooc final project Sept 2020
Mooc final project Sept 2020Mooc final project Sept 2020
Mooc final project Sept 2020
Samuel Djaryang
 
EU-CHINA CIA: what do we know and what are the risks
EU-CHINA CIA: what do we know and what are the risksEU-CHINA CIA: what do we know and what are the risks
EU-CHINA CIA: what do we know and what are the risks
AEPF
 
Be
BeBe
Local content explained
Local content explainedLocal content explained
Local content explained
Isabelle Ramdoo
 
Preparing for Brexit - Future proofing your contracts
Preparing for Brexit - Future proofing your contractsPreparing for Brexit - Future proofing your contracts
Preparing for Brexit - Future proofing your contracts
Eversheds Sutherland
 
Sustainable finance in Nordic-Baltic, 2018
Sustainable finance in Nordic-Baltic, 2018Sustainable finance in Nordic-Baltic, 2018
Sustainable finance in Nordic-Baltic, 2018
Finanssiala ry - Finance Finland
 
EAC: Rhetoric and reality 07-11
EAC: Rhetoric and reality 07-11EAC: Rhetoric and reality 07-11
EAC: Rhetoric and reality 07-11
Rob Scott
 

What's hot (20)

Promoting responsible investment in Myanmar - Prof. R Nieuwenkamp
Promoting responsible investment in Myanmar - Prof. R NieuwenkampPromoting responsible investment in Myanmar - Prof. R Nieuwenkamp
Promoting responsible investment in Myanmar - Prof. R Nieuwenkamp
 
Independence of competition authorities: from designs to practices – NORWAY –...
Independence of competition authorities: from designs to practices – NORWAY –...Independence of competition authorities: from designs to practices – NORWAY –...
Independence of competition authorities: from designs to practices – NORWAY –...
 
Institutional investors and long-term investment: 2014 project report
Institutional investors and long-term investment: 2014 project reportInstitutional investors and long-term investment: 2014 project report
Institutional investors and long-term investment: 2014 project report
 
Towards conflict-free mineral supply chains - A global standard
Towards conflict-free mineral supply chains - A global standardTowards conflict-free mineral supply chains - A global standard
Towards conflict-free mineral supply chains - A global standard
 
Workshop Employee Financial Participation - O Kelly
Workshop Employee Financial Participation - O KellyWorkshop Employee Financial Participation - O Kelly
Workshop Employee Financial Participation - O Kelly
 
Finance Finland's 2019 EU objectives
Finance Finland's 2019 EU objectivesFinance Finland's 2019 EU objectives
Finance Finland's 2019 EU objectives
 
Independence of competition authorities: from designs to practices – Prof. Al...
Independence of competition authorities: from designs to practices – Prof. Al...Independence of competition authorities: from designs to practices – Prof. Al...
Independence of competition authorities: from designs to practices – Prof. Al...
 
Action 4 and the banking sector
Action 4 and the banking sector Action 4 and the banking sector
Action 4 and the banking sector
 
Investment in clean energy infrastructure
Investment in clean energy infrastructureInvestment in clean energy infrastructure
Investment in clean energy infrastructure
 
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Co...
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Co...OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Co...
OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Co...
 
COP21 - Fiduciary Duty and Climate Change
COP21 - Fiduciary Duty and Climate ChangeCOP21 - Fiduciary Duty and Climate Change
COP21 - Fiduciary Duty and Climate Change
 
Independence of competition authorities: from designs to practices – OECD Bac...
Independence of competition authorities: from designs to practices – OECD Bac...Independence of competition authorities: from designs to practices – OECD Bac...
Independence of competition authorities: from designs to practices – OECD Bac...
 
OECD Parliamentary Days 2016 - COP21 Outcomes and implications
OECD Parliamentary Days 2016 - COP21 Outcomes and implicationsOECD Parliamentary Days 2016 - COP21 Outcomes and implications
OECD Parliamentary Days 2016 - COP21 Outcomes and implications
 
Mooc final project Sept 2020
Mooc final project Sept 2020Mooc final project Sept 2020
Mooc final project Sept 2020
 
EU-CHINA CIA: what do we know and what are the risks
EU-CHINA CIA: what do we know and what are the risksEU-CHINA CIA: what do we know and what are the risks
EU-CHINA CIA: what do we know and what are the risks
 
Be
BeBe
Be
 
Local content explained
Local content explainedLocal content explained
Local content explained
 
Preparing for Brexit - Future proofing your contracts
Preparing for Brexit - Future proofing your contractsPreparing for Brexit - Future proofing your contracts
Preparing for Brexit - Future proofing your contracts
 
Sustainable finance in Nordic-Baltic, 2018
Sustainable finance in Nordic-Baltic, 2018Sustainable finance in Nordic-Baltic, 2018
Sustainable finance in Nordic-Baltic, 2018
 
EAC: Rhetoric and reality 07-11
EAC: Rhetoric and reality 07-11EAC: Rhetoric and reality 07-11
EAC: Rhetoric and reality 07-11
 

Similar to Antonio Capobianco_State owned enterprises as global competitors

2017 OECD Business and Finance Outlook Key Findings
2017 OECD Business and Finance Outlook Key Findings2017 OECD Business and Finance Outlook Key Findings
2017 OECD Business and Finance Outlook Key Findings
OECD Directorate for Financial and Enterprise Affairs
 
Achieving a new paradigm for inclusive growth OECD economic survey Korea June...
Achieving a new paradigm for inclusive growth OECD economic survey Korea June...Achieving a new paradigm for inclusive growth OECD economic survey Korea June...
Achieving a new paradigm for inclusive growth OECD economic survey Korea June...
OECD, Economics Department
 
Better but not good enough OECD Economic Outlook presentation June 2017
Better but not good enough OECD Economic Outlook presentation June 2017Better but not good enough OECD Economic Outlook presentation June 2017
Better but not good enough OECD Economic Outlook presentation June 2017
OECD, Economics Department
 
Mncs
MncsMncs
Mncs
nmrayc
 
Better but-not-good-enough-oecd-economic-outlook-presentation-june-2017
Better but-not-good-enough-oecd-economic-outlook-presentation-june-2017Better but-not-good-enough-oecd-economic-outlook-presentation-june-2017
Better but-not-good-enough-oecd-economic-outlook-presentation-june-2017
Michael D. Underhill
 
OECD-Wirtschaftsausblick Juni 2017
OECD-Wirtschaftsausblick Juni 2017OECD-Wirtschaftsausblick Juni 2017
OECD-Wirtschaftsausblick Juni 2017
OECD Berlin Centre
 
An opportunity that governments should not miss OECD Going for Growth 2018
An opportunity that governments should not miss OECD Going for Growth 2018An opportunity that governments should not miss OECD Going for Growth 2018
An opportunity that governments should not miss OECD Going for Growth 2018
OECD, Economics Department
 
Business environment ppt @ dom s
Business environment ppt @ dom sBusiness environment ppt @ dom s
Business environment ppt @ dom s
Babasab Patil
 
Business environment ppt @ dom s
Business environment ppt @ dom sBusiness environment ppt @ dom s
Business environment ppt @ dom s
Babasab Patil
 
Regulatory Barriers to Micro, Small and Medium Enterprises
Regulatory Barriers to Micro, Small and Medium EnterprisesRegulatory Barriers to Micro, Small and Medium Enterprises
Regulatory Barriers to Micro, Small and Medium Enterprises
Centre for Civil Society
 
The Walking Dead Zombie Firms and Productivity Performance in OECD Countries
The Walking Dead Zombie Firms and Productivity Performance in OECD CountriesThe Walking Dead Zombie Firms and Productivity Performance in OECD Countries
The Walking Dead Zombie Firms and Productivity Performance in OECD Countries
OECD, Economics Department
 
Urban world.- shifting of global business -mc kinsey & co- unus molla
Urban world.- shifting of global business -mc kinsey & co-  unus mollaUrban world.- shifting of global business -mc kinsey & co-  unus molla
Urban world.- shifting of global business -mc kinsey & co- unus molla
Prof Unus Molla
 
Pilat eu spri new avenues innovation policy 9 june 2016
Pilat eu spri new avenues innovation policy 9 june 2016Pilat eu spri new avenues innovation policy 9 june 2016
Pilat eu spri new avenues innovation policy 9 june 2016
Dirk Pilat
 
Introduction to international business environment is talking about world bus...
Introduction to international business environment is talking about world bus...Introduction to international business environment is talking about world bus...
Introduction to international business environment is talking about world bus...
MengsongNguon
 
Introduction to business_environment-pg-1-final
Introduction to business_environment-pg-1-finalIntroduction to business_environment-pg-1-final
Introduction to business_environment-pg-1-final
Akash Kanani
 
Role of state-owned enterprises in economic development in China - Zhengjun Z...
Role of state-owned enterprises in economic development in China - Zhengjun Z...Role of state-owned enterprises in economic development in China - Zhengjun Z...
Role of state-owned enterprises in economic development in China - Zhengjun Z...
OECD Directorate for Financial and Enterprise Affairs
 
United states-2018-oecd-economic-survey-sustaining-growth-and-raising-employment
United states-2018-oecd-economic-survey-sustaining-growth-and-raising-employmentUnited states-2018-oecd-economic-survey-sustaining-growth-and-raising-employment
United states-2018-oecd-economic-survey-sustaining-growth-and-raising-employment
OECD, Economics Department
 
The Sustainable Competitiveness Index 2015
The Sustainable Competitiveness Index 2015The Sustainable Competitiveness Index 2015
The Sustainable Competitiveness Index 2015
SolAbility
 
Subsidies, competition and trade – GARCÍA-HERRERO – December 2022 OECD discus...
Subsidies, competition and trade – GARCÍA-HERRERO – December 2022 OECD discus...Subsidies, competition and trade – GARCÍA-HERRERO – December 2022 OECD discus...
Subsidies, competition and trade – GARCÍA-HERRERO – December 2022 OECD discus...
OECD Directorate for Financial and Enterprise Affairs
 
HLEG thematic workshop on measuring economic, social and environmental resili...
HLEG thematic workshop on measuring economic, social and environmental resili...HLEG thematic workshop on measuring economic, social and environmental resili...
HLEG thematic workshop on measuring economic, social and environmental resili...
StatsCommunications
 

Similar to Antonio Capobianco_State owned enterprises as global competitors (20)

2017 OECD Business and Finance Outlook Key Findings
2017 OECD Business and Finance Outlook Key Findings2017 OECD Business and Finance Outlook Key Findings
2017 OECD Business and Finance Outlook Key Findings
 
Achieving a new paradigm for inclusive growth OECD economic survey Korea June...
Achieving a new paradigm for inclusive growth OECD economic survey Korea June...Achieving a new paradigm for inclusive growth OECD economic survey Korea June...
Achieving a new paradigm for inclusive growth OECD economic survey Korea June...
 
Better but not good enough OECD Economic Outlook presentation June 2017
Better but not good enough OECD Economic Outlook presentation June 2017Better but not good enough OECD Economic Outlook presentation June 2017
Better but not good enough OECD Economic Outlook presentation June 2017
 
Mncs
MncsMncs
Mncs
 
Better but-not-good-enough-oecd-economic-outlook-presentation-june-2017
Better but-not-good-enough-oecd-economic-outlook-presentation-june-2017Better but-not-good-enough-oecd-economic-outlook-presentation-june-2017
Better but-not-good-enough-oecd-economic-outlook-presentation-june-2017
 
OECD-Wirtschaftsausblick Juni 2017
OECD-Wirtschaftsausblick Juni 2017OECD-Wirtschaftsausblick Juni 2017
OECD-Wirtschaftsausblick Juni 2017
 
An opportunity that governments should not miss OECD Going for Growth 2018
An opportunity that governments should not miss OECD Going for Growth 2018An opportunity that governments should not miss OECD Going for Growth 2018
An opportunity that governments should not miss OECD Going for Growth 2018
 
Business environment ppt @ dom s
Business environment ppt @ dom sBusiness environment ppt @ dom s
Business environment ppt @ dom s
 
Business environment ppt @ dom s
Business environment ppt @ dom sBusiness environment ppt @ dom s
Business environment ppt @ dom s
 
Regulatory Barriers to Micro, Small and Medium Enterprises
Regulatory Barriers to Micro, Small and Medium EnterprisesRegulatory Barriers to Micro, Small and Medium Enterprises
Regulatory Barriers to Micro, Small and Medium Enterprises
 
The Walking Dead Zombie Firms and Productivity Performance in OECD Countries
The Walking Dead Zombie Firms and Productivity Performance in OECD CountriesThe Walking Dead Zombie Firms and Productivity Performance in OECD Countries
The Walking Dead Zombie Firms and Productivity Performance in OECD Countries
 
Urban world.- shifting of global business -mc kinsey & co- unus molla
Urban world.- shifting of global business -mc kinsey & co-  unus mollaUrban world.- shifting of global business -mc kinsey & co-  unus molla
Urban world.- shifting of global business -mc kinsey & co- unus molla
 
Pilat eu spri new avenues innovation policy 9 june 2016
Pilat eu spri new avenues innovation policy 9 june 2016Pilat eu spri new avenues innovation policy 9 june 2016
Pilat eu spri new avenues innovation policy 9 june 2016
 
Introduction to international business environment is talking about world bus...
Introduction to international business environment is talking about world bus...Introduction to international business environment is talking about world bus...
Introduction to international business environment is talking about world bus...
 
Introduction to business_environment-pg-1-final
Introduction to business_environment-pg-1-finalIntroduction to business_environment-pg-1-final
Introduction to business_environment-pg-1-final
 
Role of state-owned enterprises in economic development in China - Zhengjun Z...
Role of state-owned enterprises in economic development in China - Zhengjun Z...Role of state-owned enterprises in economic development in China - Zhengjun Z...
Role of state-owned enterprises in economic development in China - Zhengjun Z...
 
United states-2018-oecd-economic-survey-sustaining-growth-and-raising-employment
United states-2018-oecd-economic-survey-sustaining-growth-and-raising-employmentUnited states-2018-oecd-economic-survey-sustaining-growth-and-raising-employment
United states-2018-oecd-economic-survey-sustaining-growth-and-raising-employment
 
The Sustainable Competitiveness Index 2015
The Sustainable Competitiveness Index 2015The Sustainable Competitiveness Index 2015
The Sustainable Competitiveness Index 2015
 
Subsidies, competition and trade – GARCÍA-HERRERO – December 2022 OECD discus...
Subsidies, competition and trade – GARCÍA-HERRERO – December 2022 OECD discus...Subsidies, competition and trade – GARCÍA-HERRERO – December 2022 OECD discus...
Subsidies, competition and trade – GARCÍA-HERRERO – December 2022 OECD discus...
 
HLEG thematic workshop on measuring economic, social and environmental resili...
HLEG thematic workshop on measuring economic, social and environmental resili...HLEG thematic workshop on measuring economic, social and environmental resili...
HLEG thematic workshop on measuring economic, social and environmental resili...
 

More from Florence Competition Programme

Competition Law and Standard Essential Patents: Testing the Limits of Extra-t...
Competition Law and Standard Essential Patents: Testing the Limits of Extra-t...Competition Law and Standard Essential Patents: Testing the Limits of Extra-t...
Competition Law and Standard Essential Patents: Testing the Limits of Extra-t...
Florence Competition Programme
 
SEP and Extraterritorial Extraterritorial Law Enforcement
SEP and Extraterritorial Extraterritorial Law EnforcementSEP and Extraterritorial Extraterritorial Law Enforcement
SEP and Extraterritorial Extraterritorial Law Enforcement
Florence Competition Programme
 
Competition Law and SEP: Testing the Limits of Extra-Territorial Enforcement
Competition Law and SEP: Testing the Limits of Extra-Territorial EnforcementCompetition Law and SEP: Testing the Limits of Extra-Territorial Enforcement
Competition Law and SEP: Testing the Limits of Extra-Territorial Enforcement
Florence Competition Programme
 
Licensing SEPs: When are License Terms Fair, Reasonable and Non-Discriminatory?
Licensing SEPs: When are License Terms Fair, Reasonable and Non-Discriminatory?Licensing SEPs: When are License Terms Fair, Reasonable and Non-Discriminatory?
Licensing SEPs: When are License Terms Fair, Reasonable and Non-Discriminatory?
Florence Competition Programme
 
Enzo Marasà_Antitrust and Antiglobalization
Enzo Marasà_Antitrust and AntiglobalizationEnzo Marasà_Antitrust and Antiglobalization
Enzo Marasà_Antitrust and Antiglobalization
Florence Competition Programme
 
Thomas Jeitschko_Antitrust and Antiglobalization
Thomas Jeitschko_Antitrust and AntiglobalizationThomas Jeitschko_Antitrust and Antiglobalization
Thomas Jeitschko_Antitrust and Antiglobalization
Florence Competition Programme
 
Giorgio Monti_Antitrust and the Presidency
Giorgio Monti_Antitrust and the PresidencyGiorgio Monti_Antitrust and the Presidency
Giorgio Monti_Antitrust and the Presidency
Florence Competition Programme
 
Timothy Brennan_Should antitrust break with the past?
Timothy Brennan_Should antitrust break with the past?Timothy Brennan_Should antitrust break with the past?
Timothy Brennan_Should antitrust break with the past?
Florence Competition Programme
 

More from Florence Competition Programme (8)

Competition Law and Standard Essential Patents: Testing the Limits of Extra-t...
Competition Law and Standard Essential Patents: Testing the Limits of Extra-t...Competition Law and Standard Essential Patents: Testing the Limits of Extra-t...
Competition Law and Standard Essential Patents: Testing the Limits of Extra-t...
 
SEP and Extraterritorial Extraterritorial Law Enforcement
SEP and Extraterritorial Extraterritorial Law EnforcementSEP and Extraterritorial Extraterritorial Law Enforcement
SEP and Extraterritorial Extraterritorial Law Enforcement
 
Competition Law and SEP: Testing the Limits of Extra-Territorial Enforcement
Competition Law and SEP: Testing the Limits of Extra-Territorial EnforcementCompetition Law and SEP: Testing the Limits of Extra-Territorial Enforcement
Competition Law and SEP: Testing the Limits of Extra-Territorial Enforcement
 
Licensing SEPs: When are License Terms Fair, Reasonable and Non-Discriminatory?
Licensing SEPs: When are License Terms Fair, Reasonable and Non-Discriminatory?Licensing SEPs: When are License Terms Fair, Reasonable and Non-Discriminatory?
Licensing SEPs: When are License Terms Fair, Reasonable and Non-Discriminatory?
 
Enzo Marasà_Antitrust and Antiglobalization
Enzo Marasà_Antitrust and AntiglobalizationEnzo Marasà_Antitrust and Antiglobalization
Enzo Marasà_Antitrust and Antiglobalization
 
Thomas Jeitschko_Antitrust and Antiglobalization
Thomas Jeitschko_Antitrust and AntiglobalizationThomas Jeitschko_Antitrust and Antiglobalization
Thomas Jeitschko_Antitrust and Antiglobalization
 
Giorgio Monti_Antitrust and the Presidency
Giorgio Monti_Antitrust and the PresidencyGiorgio Monti_Antitrust and the Presidency
Giorgio Monti_Antitrust and the Presidency
 
Timothy Brennan_Should antitrust break with the past?
Timothy Brennan_Should antitrust break with the past?Timothy Brennan_Should antitrust break with the past?
Timothy Brennan_Should antitrust break with the past?
 

Recently uploaded

Building Digital Products & Content Leadership
Building Digital Products & Content LeadershipBuilding Digital Products & Content Leadership
Building Digital Products & Content Leadership
Rajesh Math
 
Pengukuran berat badan anak dan tinggi badan anak
Pengukuran berat badan anak dan tinggi badan anakPengukuran berat badan anak dan tinggi badan anak
Pengukuran berat badan anak dan tinggi badan anak
DeviDamayanti53
 
Biography of the late Mrs. Stella Atsupui Eddah.pdf
Biography of the late Mrs. Stella Atsupui Eddah.pdfBiography of the late Mrs. Stella Atsupui Eddah.pdf
Biography of the late Mrs. Stella Atsupui Eddah.pdf
AbdulSadickZutah
 
A study on drug utilization evaluation of bronchodilators using DDD method
A study on drug utilization evaluation of bronchodilators using DDD methodA study on drug utilization evaluation of bronchodilators using DDD method
A study on drug utilization evaluation of bronchodilators using DDD method
Dr. Chihiro
 
Haldia Dock Complex - A Gateway To India's East Coast
Haldia Dock Complex - A Gateway To India's East CoastHaldia Dock Complex - A Gateway To India's East Coast
Haldia Dock Complex - A Gateway To India's East Coast
Amity University Kolkata
 
2024-07-07 Transformed 06 (shared slides).pptx
2024-07-07 Transformed 06 (shared slides).pptx2024-07-07 Transformed 06 (shared slides).pptx
2024-07-07 Transformed 06 (shared slides).pptx
Dale Wells
 
@ℂall Lucknow @Girls Chinhat 08630512678
@ℂall Lucknow  @Girls Chinhat 08630512678 @ℂall Lucknow  @Girls Chinhat 08630512678
@ℂall Lucknow @Girls Chinhat 08630512678
veenita788
 
Recruitment articles and posts- different & effective ways of recruitment
Recruitment articles and posts- different & effective ways of recruitmentRecruitment articles and posts- different & effective ways of recruitment
Recruitment articles and posts- different & effective ways of recruitment
Rashi427200
 
stackconf 2024 | Using European Open Source to build a Sovereign Multi-Cloud ...
stackconf 2024 | Using European Open Source to build a Sovereign Multi-Cloud ...stackconf 2024 | Using European Open Source to build a Sovereign Multi-Cloud ...
stackconf 2024 | Using European Open Source to build a Sovereign Multi-Cloud ...
NETWAYS
 
Risks & Business Risks Reduce - investment.pdf
Risks & Business Risks Reduce  - investment.pdfRisks & Business Risks Reduce  - investment.pdf
Risks & Business Risks Reduce - investment.pdf
Home
 
TEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITY
TEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITYTEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITY
TEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITY
AaSs197122
 
Ethical Conduct and Dynamics of Attitudinal Change for Organizational Growth ...
Ethical Conduct and Dynamics of Attitudinal Change for Organizational Growth ...Ethical Conduct and Dynamics of Attitudinal Change for Organizational Growth ...
Ethical Conduct and Dynamics of Attitudinal Change for Organizational Growth ...
Godwin Emmanuel Oyedokun MBA MSc PhD FCA FCTI FCNA CFE FFAR
 
HERO.pdf hero company working cap management project
HERO.pdf hero company working cap management projectHERO.pdf hero company working cap management project
HERO.pdf hero company working cap management project
SambalpurTokaSatyaji
 
Effective-Recruitment-Strategies and leveraging linkedin
Effective-Recruitment-Strategies and leveraging linkedinEffective-Recruitment-Strategies and leveraging linkedin
Effective-Recruitment-Strategies and leveraging linkedin
DivyaMehta193660
 
@ℂall Lucknow @Girls Fazullaganj 08630512678 @Girls Service @ℂall
@ℂall Lucknow @Girls Fazullaganj 08630512678  @Girls Service @ℂall@ℂall Lucknow @Girls Fazullaganj 08630512678  @Girls Service @ℂall
@ℂall Lucknow @Girls Fazullaganj 08630512678 @Girls Service @ℂall
veenita788
 
Marketing Articles and ppt on how to do marketing ..Challenges faced during M...
Marketing Articles and ppt on how to do marketing ..Challenges faced during M...Marketing Articles and ppt on how to do marketing ..Challenges faced during M...
Marketing Articles and ppt on how to do marketing ..Challenges faced during M...
ankitamarik05
 
Call India - AmanTel on the App Store.ppt
Call India - AmanTel on the App Store.pptCall India - AmanTel on the App Store.ppt
Call India - AmanTel on the App Store.ppt
Best International calling app on the market
 
Lucknow @Girls @ℂall Gomti Nagar 08630512678 @Girls @ℂall Service
Lucknow @Girls @ℂall  Gomti Nagar 08630512678  @Girls @ℂall ServiceLucknow @Girls @ℂall  Gomti Nagar 08630512678  @Girls @ℂall Service
Lucknow @Girls @ℂall Gomti Nagar 08630512678 @Girls @ℂall Service
veenita788
 
the sparks foundation JOB READINESS- how to be job ready. task 2
the sparks foundation JOB READINESS- how to be job ready. task 2the sparks foundation JOB READINESS- how to be job ready. task 2
the sparks foundation JOB READINESS- how to be job ready. task 2
Rashi427200
 
calcaneal fracture seminar by dr vishu.pptx
calcaneal fracture seminar by dr vishu.pptxcalcaneal fracture seminar by dr vishu.pptx
calcaneal fracture seminar by dr vishu.pptx
Skmch
 

Recently uploaded (20)

Building Digital Products & Content Leadership
Building Digital Products & Content LeadershipBuilding Digital Products & Content Leadership
Building Digital Products & Content Leadership
 
Pengukuran berat badan anak dan tinggi badan anak
Pengukuran berat badan anak dan tinggi badan anakPengukuran berat badan anak dan tinggi badan anak
Pengukuran berat badan anak dan tinggi badan anak
 
Biography of the late Mrs. Stella Atsupui Eddah.pdf
Biography of the late Mrs. Stella Atsupui Eddah.pdfBiography of the late Mrs. Stella Atsupui Eddah.pdf
Biography of the late Mrs. Stella Atsupui Eddah.pdf
 
A study on drug utilization evaluation of bronchodilators using DDD method
A study on drug utilization evaluation of bronchodilators using DDD methodA study on drug utilization evaluation of bronchodilators using DDD method
A study on drug utilization evaluation of bronchodilators using DDD method
 
Haldia Dock Complex - A Gateway To India's East Coast
Haldia Dock Complex - A Gateway To India's East CoastHaldia Dock Complex - A Gateway To India's East Coast
Haldia Dock Complex - A Gateway To India's East Coast
 
2024-07-07 Transformed 06 (shared slides).pptx
2024-07-07 Transformed 06 (shared slides).pptx2024-07-07 Transformed 06 (shared slides).pptx
2024-07-07 Transformed 06 (shared slides).pptx
 
@ℂall Lucknow @Girls Chinhat 08630512678
@ℂall Lucknow  @Girls Chinhat 08630512678 @ℂall Lucknow  @Girls Chinhat 08630512678
@ℂall Lucknow @Girls Chinhat 08630512678
 
Recruitment articles and posts- different & effective ways of recruitment
Recruitment articles and posts- different & effective ways of recruitmentRecruitment articles and posts- different & effective ways of recruitment
Recruitment articles and posts- different & effective ways of recruitment
 
stackconf 2024 | Using European Open Source to build a Sovereign Multi-Cloud ...
stackconf 2024 | Using European Open Source to build a Sovereign Multi-Cloud ...stackconf 2024 | Using European Open Source to build a Sovereign Multi-Cloud ...
stackconf 2024 | Using European Open Source to build a Sovereign Multi-Cloud ...
 
Risks & Business Risks Reduce - investment.pdf
Risks & Business Risks Reduce  - investment.pdfRisks & Business Risks Reduce  - investment.pdf
Risks & Business Risks Reduce - investment.pdf
 
TEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITY
TEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITYTEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITY
TEST WORTHINESS: VALIDITY, RELIABILITY, PRACTICALITY
 
Ethical Conduct and Dynamics of Attitudinal Change for Organizational Growth ...
Ethical Conduct and Dynamics of Attitudinal Change for Organizational Growth ...Ethical Conduct and Dynamics of Attitudinal Change for Organizational Growth ...
Ethical Conduct and Dynamics of Attitudinal Change for Organizational Growth ...
 
HERO.pdf hero company working cap management project
HERO.pdf hero company working cap management projectHERO.pdf hero company working cap management project
HERO.pdf hero company working cap management project
 
Effective-Recruitment-Strategies and leveraging linkedin
Effective-Recruitment-Strategies and leveraging linkedinEffective-Recruitment-Strategies and leveraging linkedin
Effective-Recruitment-Strategies and leveraging linkedin
 
@ℂall Lucknow @Girls Fazullaganj 08630512678 @Girls Service @ℂall
@ℂall Lucknow @Girls Fazullaganj 08630512678  @Girls Service @ℂall@ℂall Lucknow @Girls Fazullaganj 08630512678  @Girls Service @ℂall
@ℂall Lucknow @Girls Fazullaganj 08630512678 @Girls Service @ℂall
 
Marketing Articles and ppt on how to do marketing ..Challenges faced during M...
Marketing Articles and ppt on how to do marketing ..Challenges faced during M...Marketing Articles and ppt on how to do marketing ..Challenges faced during M...
Marketing Articles and ppt on how to do marketing ..Challenges faced during M...
 
Call India - AmanTel on the App Store.ppt
Call India - AmanTel on the App Store.pptCall India - AmanTel on the App Store.ppt
Call India - AmanTel on the App Store.ppt
 
Lucknow @Girls @ℂall Gomti Nagar 08630512678 @Girls @ℂall Service
Lucknow @Girls @ℂall  Gomti Nagar 08630512678  @Girls @ℂall ServiceLucknow @Girls @ℂall  Gomti Nagar 08630512678  @Girls @ℂall Service
Lucknow @Girls @ℂall Gomti Nagar 08630512678 @Girls @ℂall Service
 
the sparks foundation JOB READINESS- how to be job ready. task 2
the sparks foundation JOB READINESS- how to be job ready. task 2the sparks foundation JOB READINESS- how to be job ready. task 2
the sparks foundation JOB READINESS- how to be job ready. task 2
 
calcaneal fracture seminar by dr vishu.pptx
calcaneal fracture seminar by dr vishu.pptxcalcaneal fracture seminar by dr vishu.pptx
calcaneal fracture seminar by dr vishu.pptx
 

Antonio Capobianco_State owned enterprises as global competitors

  • 1. STATE-OWNED ENTERPRISES AS GLOBAL COMPETITORS GLOBALISATION A CHALLENGE OR AN OPPORTUNITY? Antonio Capobianco OECD Competition Division
  • 2. Background on the SOE dataset • Third edition of a recurrent review of the characteristics of national state-owned enterprise sectors, by the Working Party on State Ownership and Privatisation Practices. • Covers 40 countries, mainly in the OECD area but also, for the first time, Argentina, Brazil, China, India and (partially) Saudi Arabia. • Examines the size of SOEs – by company value and employment – and their distribution by sector and corporate form. • Also examines state minority shareholdings in listed companies, including an inventory of individual enterprises. Definition of “SOE” uses the scope of applicability of the OECD Guidelines on Corporate Governance of State Ownership Enterprises, which is based on entities’ corporate forms, commercial orientation and degree of state ownership and control. 2
  • 3. • Taking China aside for a moment, governments in the sample area are the full or majority owners of 2 467 commercially-oriented enterprises valued at USD 2.4 trillion and employing over 9.2 million people. • In China alone, the central government owns 51 000 SOEs, valued at USD 29.2 trillion and employing approximately 20.2 million people. • China is the largest SOE sector by number of SOEs. followed by Hungary (370 SOEs), India (270), Brazil (134), the Czech Republic (133), Lithuania (128), Poland (126) and the Slovak Republic (113). • Governments in the sample area (outside of China) hold minority shareholdings in 134 listed companies valued at USD 912.3 billion and employing 2.8 million people. While not considered SOEs per se, minority shareholdings can provide insights into the changing landscape of state involvement in the corporate economy. Snapshot of main findings Source: OECD (2017), The Size and Sectoral Distribution of State-Owned Enterprises, OECD, Paris. Note: Figures exclude China. 3
  • 4. Among OECD countries , the largest SOE sectors as a percentage of employment (a more useful comparison than by absolute values) are found in Norway, Latvia, Estonia, Hungary, France, Finland, the Czech Republic, the Slovak Republic and Italy. SOEs represent on average 2-3% of national employment in OECD area SOE employees as % of all non-agricultural employees: OECD top 159.6% 6.7% 4.8% 4.2% 3.5% 3.5% 3.4% 3.1% 3.1% 2.9% 2.6% 2.5% 2.4% 2.1% 1.9% Norway Latvia Estonia Hungary France Finland Czech Republic Slovak Republic Italy Sweden Turkey Ireland Iceland Austria New Zealand Source: OECD (2017), The Size and Sectoral Distribution of State-Owned Enterprises, OECD, Paris. Note: Figures exclude China. 4
  • 5. When the analysis is expanded to include minority-owned listed companies, employment share rises considerably in some countries (e.g. Norway, Finland and France). Germany and Greece replace Iceland and New Zealand in the league table. Employment share rises when minority shareholdings are included Employees of SOEs and state minority-owned companies as % of national employment: OECD top 15 Source: OECD (2017), The Size and Sectoral Distribution of State-Owned Enterprises, OECD, Paris. Note: Figures exclude China. 0% 2% 4% 6% 8% 10% 12% 14% Employees of minority state- owned companies as percentage of non- agricultural employees Employees of SOEs as percentage of non- agricultural employees 5
  • 6. The electricity and gas, transportation, telecoms and other utilities sectors account for 51% of all SOEs by value and 70% by employment. Finance is the largest individual sector, at 26% of SOEs by value. SOEs are highly concentrated in the network industries Sectoral distribution of SOEs by value Sectoral distribution of SOEs by employment Source: OECD (2017), The Size and Sectoral Distribution of State-Owned Enterprises, OECD, Paris. Note: Figures exclude China. 6
  • 7. Most state minority-owned companies by value are found in the manufacturing sector (32%), followed by telecoms (29%) and finance (17%). Minority shareholdings could indicate intent to relinquish state control in these sectors or temporarily shore up failing companies. State minority shareholdings Source: OECD (2017), The Size and Sectoral Distribution of State-Owned Enterprises, OECD, Paris. Note: Figures exclude China. Other utilities, real estate and other activities 5% Primary sectors 8% Manufacturing 32% Finance 17% Telecoms 29% Electricity and gas 7% Transportation 2% 7
  • 8. 8 Importance of SOEs in modern economies The world's largest 10 SOEs in the business (year 2012-13 - USD billion) Source: OECD (2014); *Forbes 2000 Global rank* Company Sector Domicile Market value Sales Assets 1 ICBC Banking China 237.3 134.8 2813.5 2 China Construction Bank Banking China 202.0 113.1 2241 8 Agricultural Bank of China Banking China 150.8 103.0 2124.2 10 PetroChina Oil & Gas China 261.2 308.9 347.8 11 Bank of China Banking China 131.7 98.1 2033.8 17 Gazprom Oil & Gas Russia 111.4 144 339.3 20 Petrobras Oil & Gas Brazil 120.7 144.1 331.6 26 Sinopec-China Petroleum Oil & Gas China 106.9 411.7 200.0 29 China Mobile Telecom Hong Kong 213.8 88.8 168.7 30 ENI Oil & Gas Italy 86.3 163.7 185.2
  • 9. • 22% of the world’s largest 100 firms are state controlled companies – this is the highest percentage in decades • SOEs operate in sectors important to international supply chains, such as public utilities, manufacturing, metals and mining, and petroleum • There has been a surge of SOE-led international M&A activity observed over the last 10 years • These trends are likely to continue in the foreseeable future SOEs are going global – A few facts 9
  • 10. SOEs as targets and acquirers of IM&A by deal value (USD million), 1996 - 2015 10
  • 11. 11 SOEs international M&A by sector 0 5 10 15 20 25 30 35 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Share of international M&As with a state-owned acquirer (% of deal numbers) Mining Oil and gas Airlines Power generation Telecommunication Source: OECD (2014), OECD (2014), Corporate Governance Working Paper No. 14
  • 12. SOEs may induce their government owners to grant them certain advantages, ranging from: • Privileged market position • Soft loans • Outright subsidies • Regulatory exemptions • Fiscal advantages • State backing • No bankruptcy Concerns about the internationalisation of state-owned enterprises 12
  • 13. • SOEs may not always operate on a level playing field • Compensation and special advantages granted by governments in return for public policy obligations at home can have harmful spill-overs effects • Asymmetric contestability in home markets for foreign competitors SOE as global competitors – Some perceived concerns 13
  • 14. Business perceptions concerning preferential treatment granted to foreign competitors 35 16 50 30 15 54 0 10 20 30 40 50 60 Privately-owned enterprises (less than 10%) state ownership Majority state-owned (between 50 and 100% state ownership) No impact Some impact Strong impact 1. Preferential treatment is defined as government measures or actions, which affect costs or prices of commercial enterprises and which are extended only to certain specific enterprises or groups of enterprises. 2. Own government is defined as the government of respondent’s country of headquarters. Source: OECD Business Survey on State Influence on Competition in International Markets. 14
  • 15. • Address distortions that may arise from state intervention at the domestic level through competition- related remedies • Adjusting investment policy frameworks toward preserving a level playing field • Identify and remedy gaps in the coverage of multilateral rules regarding trade distorting government and enterprise behaviour. • Promote high standards of governance, disclosure, accountability and transparency for SOEs. Policy Options 15
  • 16. Business and Finance Outlook (OECD 2017) State-Owned Enterprises as Global Competitors: A Challenge or an Opportunity? (OECD, 2016) State-Invested Enterprises in the Global Marketplace: Implications for a Level Playing Field, Working Paper (OECD, 2014) OECD main references 16
  • 17. The Size and Sectoral Distribution of SOEs in OECD and Partner Countries, Publication (OECD, 2014) Competitive Neutrality: National Practices in Partner Countries, Background Report (OECD, 2013) A Stock-Taking of International Investment by State-Owned Enterprises and of Relevant Elements of National and International Policy Frameworks, Background Report (OECD, 2013) OECD main references 17
  • 18. State-Owned Enterprises: Trade Effects and Policy Implications, Working Paper (OECD, 2013) Competitive Neutrality: Maintaining a Level Playing Field between Public and Private Business, Publication (OECD, 2012) State-owned enterprises and the principle of competitive neutrality (OECD, 2009) OECD main references 18
  • 19. • Business and Finance Outlook (OECD 2017) • State-Owned Enterprises as Global Competitors: A Challenge or an Opportunity? (OECD, 2016) • State-Invested Enterprises in the Global Marketplace: Implications for a Level Playing Field, Working Paper (OECD, 2014) • The Size and Sectoral Distribution of SOEs in OECD and Partner Countries, Publication (OECD, 2014) • Competitive Neutrality: National Practices in Partner Countries, Background Report (OECD, 2013) • A Stock-Taking of International Investment by State-Owned Enterprises and of Relevant Elements of National and International Policy Frameworks, Background Report (OECD, 2013) • State-Owned Enterprises: Trade Effects and Policy Implications, Working Paper (OECD, 2013) • Competitive Neutrality: Maintaining a Level Playing Field between Public and Private Business, Publication (OECD, 2012) • State-owned enterprises and the principle of competitive neutrality (OECD, 2009) OECD main references 19
  • 20. Thank you for your attention! Antonio Capobianco antonio.capobianco@oecd.org 20 oe.cd/comp-neutrality
  • 21. STATE-OWNED ENTERPRISES AS GLOBAL COMPETITORS GLOBALISATION A CHALLENGE OR AN OPPORTUNITY? Antonio Capobianco OECD Competition Division