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8. Total equity/GDP in selected OECD countries % 35 30 25 20 15 10 5 d an nl ke y Fi Ze Ne w Tu r d al ed an en ly Sw pu Re h ec Cz It a ic bl m iu lg Be ce an Fr ra st Au De nm ar k lia 0 Source: OECD: Questionnaire on Corporate Governance of State Owned Enterprises, 2003. 1. SCALE AND SCOPE OF STATE-OWNED ENTERPRISES IN OECD COUNTRIES Except in a few cases, hundreds of thousands of workers are employed in SOEs peaking with France which counts over 1 million workers. As a percentage of total employment, there are three groups of countries: a first group where the number of employees in SOEs is relatively low, under 2% of total employment (Spain, Korea, Canada, UK, Denmark, Poland and Turkey); then a number of countries where the employment in the SOEs is around the 2-5% of total employment (Italy, Belgium, Netherlands, Greece, Sweden and France), and finally the Czech Republic, Finland and Slovak Republic where on average more than 1 out of 10 people work in the SOEs.

Achieving such a clear separation has been a main driving force in the evolution towards a more centralised model of SOE management, together with the tendency to locate regulatory duties in special institutions. Another major drawback in the decentralised model is the difficulty in clearly identifying who is running the SOE. With sector Ministries in charge, the general public perception tends to be that the Ministry is de facto running the SOE, instead of the board. The public might think that the Ministry or the government has the power to interfere in the day-to-day operational management of SOEs, irrespective of the real degree of such interference.

Incentive for portfolio Ministers to use SOEs to deliver their programmes as implicit CSOs. • Between role as consumer of SOE’s products and services and interests as shareholder. Source: Report 732, Joint Committee of Public Accounts and Audit, 1999, pp. 33-38. 3). The Report recommends the Minister for Finance and Administration becomes the sole representative of the state shareholding interest in SOEs. Sole shareholder Minister responsibilities were given to the Minister for Finance and Administration over three recently formed SOEs.

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