State of state-owned enterprises: governance in BRICS countries: issues for consideration

Abstract

State-owned Enterprises (SOEs) across the world are the main drivers of the economy; specifically through their contribution to their countries' Gross Domestic Product (GDP). Although SOEs are the principal drivers of the formal sector of the economy and contribute significantly to the economic growth as the main entities that deliver many social goods and services to ensure the quality of life to all, they encounter governance failures, which need attention. Consequently, they become unsustainable and vulnerable to corruption. This article used a cross-analysis informed by a qualitative design to examine the governance of SOEs in the BRICS countries comprised of Brazil, Russia, India, China and South Africa. The article found that BRICS countries have no common agenda for SOEs, largely due to inadequate governance, ownership policy, oversight, and accountability disparities. Therefore, there is a need to reform the governance of the SOEs in each BRICS country to ensure that they become optimally responsive. The purpose of this article is to attempt to rekindle the discourse related to SOE governance in BRICS countries.