Wed, Oct 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: State-owned enterprises - an economic tool for Europe

Thursday, May 12, 2011

This column was authored by Dag Detter an independent advisor and state asset specialist. He is the former President of the Swedish Government Holding Company Stattum and the Government Director of State-Owned Enterprises.

While the World grapples with a great experiment to establish whether confidence in the economy can best be rebuilt through fiscal austerity assisted by nominal currency depreciation through fiscal austerity alone or enhanced stimulus, the challenge for Europe could also address a vital part of the economy that has remained untouched by recent reforms, namely government controlled commercial assets or State-Owned Enterprises (SOEs).

With numerous recent and notable additions, a sizeable part of the commercial sector remains in government hands in many developed economies. The scale of these assets according to the OECD now amounts to at least USD 3 trillion, which exceeds the value of the global private equity and hedge fund industries combined. Without reforming these burgeoning national state sectors, genuine economic reform cannot be achieved this time around the cycle. Whether in southern or northern Europe, SOEs tend by their very nature to be an unholy alliance between commercial and political objectives and of sufficient size to stifle economic growth.

SOEs which are often in the energy, forestry, real estate and transport sectors form an untapped resource for reducing the national budget deficit and driving economic growth. Althou......................

To view our full article Click here

Banner

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t