The Institutional Settings for the Development of Public Services through State-Owned Enterprises in Brazil

Abstract

ABSTRACTThe findings of this study make a timely contribution to the development of public services. Based on the institutional analysis and development (IAD) framework, this study analyzes under which institutional settings state-owned enterprises (SOEs) can be social and financial options for public service provision in Brazil. Applying a multi-case research design, this study’s findings show that SOEs can be a suitable option for Brazilian social and financial development when: markets are weak or noncompetitive; if few decisional players act; if political interference is minimized regarding operational decisions; and if corporate control is effective to avoid mismanagement and corruption. Brazilian SOEs are effective economic and social tools, but they need to peroxide value improve their corporate control (in the case of Petrobras) and strategic centralization decisions (in the case of Eletrobrás) .