Speech delivered by director general of ICPE, ┼átefan Bogdan ┼áalej, on Inauguration Ceremony of High Level Meeting of the State Ownership Authorities, 5th September, 2011, Ljubljana
Ladies and Gentlemen,
ICPE - International Center for Promotion of Enterprises - an inter governmental organization founded 35 years ago, is proud to host this high level meeting of ownership agencies and institutions of state holdings. We are sure that representatives of over 40 countries came to
Public sector enterprises exist in all countries independently of their development stage. They are part of government development policies and on their efficiency and contribution to national economy sometimes depend, especially in developing countries, success of overall economic policies. Badly managed public sector companies are not bad only for their government; they are erosive factor of social relationship as they increase the poverty level.
So, the efficient management is crucial. And fundamental step in this is efficient, transparent and independent top management. It does not matter very much if the country decides to have an agency, government or ministry department, as this is only formalistic part of government organization. But what is crucial are clear objectives and rational visions for public enterprises established by political institutions like parliament and government. You cannot perform well if you don't know what you want or if the private political interests prevail over national interest.
Our studies in selected countries are clearly pointing to such conclusions and the responsibility to manage public sector enterprises is much bigger since we are talking about leading development and economic policies partners. If public enterprises fail it affects strongly country's economy, its public finances and specially affects private sector. The economic and even political consequences are disastrous.
The size of public entrepreneurial sector in the countries' economies is various but is still significant. All together, you ladies and gentlemen, gathered in this meeting are managing over two trillion of dollars. Responsibly and efficiently. Millions of jobs depend on you and just in ten selected countries over ten millions directly.
Two-day discussion will enrich every one and will certainly contribute to your countries development and financial stability. some common challenges in this sector are surfacing as for example the role of politicians and the relationship in policy making process of management, internationalization of public sector enterprises as an arm of country foreign policies, competition and partnering with private sector and, last but not least, the leading role of public companies and their influence on social development.
Even nowadays there is still an old new challenge: the introduction of human rights issues - according to the last July resolution of UN human rights council - in corporate life.
We have challenges and we have joint solutions. I want to thank the government of