Module Three Overview

MODULE THREE: PUBLIC-PRIVATE SECTOR INTERFACE

Module Three: Public-Private Sector Interface
The interface between the public and private sectors is increasingly recognized as a crucial element in stimulating economic development and bridging the financing gap to the achievement of the Sustainable Development Goals. Several interactions across this interface have an impact on the opportunities for emerging markets and developing economies to attract investors and help economic activities blossom. The public-private sector interface gained importance in response to COVID-19 as the recovery and long-term resilience phases require partnership of both parties of the society.

The two components of this module are:

State-Owned Enterprises and Corporate Governance

The aim of this component is to support partner countries in advancing reforms in the state-owned enterprise (SOE) sector and improving the corporate governance of SOEs so that they can improve their performance and increase their contributions to economic development and government resources. It focuses on a critical series of complementary and integrated activities which focus on assessing reform needs for the governance of SOEs, bridging the SOE knowledge gap in partner countries, building capacity at the country level, fostering peer-to-peer exchanges, and supporting operational engagement for successful reform implementation. For this, an integrated SOE framework (iSOEF) was developed. A recent evaluation of the World Bank's engagement in SOEs provides many valuable lessons regarding support for the reform of SOEs, including evidence of a strong connection between success in SOE reforms with other aspects of governance, such as control of corruption in a country. The FMUP strengthens these types of linkages by enabling a comprehensive approach that connects the governance of SOE reform with other aspects, such as public financial management and anti-corruption.

Corporate Financial Reporting

This component includes enabling the regulatory role of governments and the environment for the private sector. It aims to strengthen capital and credit markets enhance financial discipline in business and expose insolvency risks of financial institutions through the introduction of international accounting standards. It also promotes efficient, transparent, and reliable use of public funds for the public good by assisting in effective tax collection and by helping to curb corruption. High-quality financial reporting encourages private sector growth by allowing investors to evaluate corporate prospects and make informed investment decisions that result in a lower cost of capital and better allocation of resources.