Support to the Strengthening of Public Enterprises Oversight and Transparency

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The objective of this technical cooperation is to strengthen the supervision and accountability of the PAs of Paraguay, in order to promote transparency and efficiency in the management of PEs.Public Enterprises (PEs) play a key role in the world economy, with 10% of the world's largest companies, in terms of market capitalization, being state-owned. In OECD countries there are over 2,000 EP and employ more than 6 million workers. One of the challenges for governments is how to monitor these public assets so that they are managed efficiently and transparently. In the specialized literature it is indicated that centralized models of supervision, concentrated in a ministry, agency or state holding, would promote the generation of better information and greater transparency in the management of PEs.In Latin America, PEs have a presence in economic sectors such as water, sanitation, electricity, oil, mining, finance, telecommunications, ports and airports. Its economic relevance in some of these countries reaches about 10% to 15% of GDP. As regards the supervision of the management of its PE, Brazil, Chile and Peru are examples of countries with centralized models of supervision. Thus, the Department of Coordination and Governance of Brazil (DEST), the Public Business System of Chile (SEP) and the Financing Fund of the State of Peru (FONAFE), with different types of institutional design and tools of Supervision, have worked over the last decade to improve the financial performance of PEs subject to their supervision.At present AL is experiencing a period of mediocre growth with fiscal deficits and increasing indebtedness. Due to their economic relevance, poorly managed PE can contribute to increasing these deficits and constitute a significant fiscal risk through the accumulation of contingent liabilities. Also, in many cases, EPs provide key basic services to citizens that may be damaged by inefficiency and lack of transparency in management.