However there are important exceptions for companies

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Unformatted text preview: in the OECD as a % of GDP (OECD, 2012). There is extensive state ownership in enterprises (SOEs). The rationale for maintaining SOEs can be grouped in 4 main categories: i) Industrial development and sectorial policies, ii) Control of strategic natural resources, iii) Norwegian ownership, head office location and preservation of strategic national competence and iv) Financial returns. Norway has undertaken important reforms in its ownership policy over the last 15 years, separating the commercial from the regulatory or public functions and improving management and governance. Some companies have been totally or partially privatized. However, as can be seen in the Figure 11, Norway is still one of the OECD countries with the highest involvement of the State in the economy, only below Poland and Turkey. Indeed, the Government has an ownership stake in 77 companies, with 52 managed directly by the Government ministries. The size of SOEs varies from large multinationals (the State has significant ownership stakes in 7 of the 10 largest publicly traded companies headquartered in Norway) to SMEs. The oil & gas cluster in Norway 13 Norway has given the Ministry of Trade and Industry the main responsibility for administering state ownership; this partly replicates the centralized model recommended by the OECD, which is used by Singapore, Denmark and Sweden. However, there are important exceptions for companies such as Statoil (Ministry of Petroleum and Energy) and Kommunalbanken (Ministry of Local Government and Regional Development) (Ministry of Trade and Industry, 2011). Despite the efforts of Parliament and the Government, some inherent risks remain: principal ­agent and free ­riding problems, lower accountability, the moral hazard derived from a softer bu...
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This document was uploaded on 03/30/2014.

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