[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-113054-en":3,"doc-seo-113054-105":29,"detail-sidebar-cat-0-en-105":90},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":4,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},113054,1099513958762,"Logic","https://ap-avatar.wpscdn.com/avatar/1000023916a998db790?x-image-process=image/resize,m_fixed,w_180,h_180&k=1782109480056885918",8,"Research & Report","The Evolving Business of the State - State Ownership Footprint and Market Impact","The document analyzes how states participate in markets through diverse ownership structures, using evidence from the World Bank Global Businesses of the State (BOS) database covering 91 countries. It shows that the state’s market footprint is broad—extending beyond traditional state-owned enterprises (SOEs)—and includes minority stakes and indirectly owned firms. It details where state presence is most visible, why governments pursue ownership, and how rationales weaken in competitive, low-capacity environments. It also highlights varied outcomes: some justified by correcting market failures, others distorted by patronage or corruption, concluding that transparency and stronger evidence are needed to guide reform priorities.","Public Disc losure Authorized  \n1. The Evolving Business of the State  \nPub lic Disc losure Authorized  \nIntroduction  \nThe state is a business owner through various ownership structures across a range of commercial activities. Stylized facts from the World Bank Global Businesses of the State (BOS) database provide new evidence on the state’s footprint across sectors and product markets. States have various motivations for establishing and maintaining ownership in markets. These motivations need to be addressed if policy recommendations are to be effective.  \n■ The state’s footprint is large and goes beyond that of traditional state-owned enterprises (SOEs). Businesses of the state (BOSs) are large market players, with revenues equivalent to 17 percent of gross domestic product (GDP). They also account for an average of 5 percent of formal employment. This report extends the analysis of their footprint to encompass less visible forms of state ownership, such as minority stakes and indirectly owned firms, including those owned through sovereign wealth funds and special-purpose vehicles (see box 1.1 for definitions ofthe principal terms used) .  \n■ The state’s presence in competitive sectors is too large to ignore. It is widespread in competitive markets that the private sector could serve efficiently across manufacturing, wholesale, digital, and transportation sectors. These sectors account for the majority (more than 50 percent) of BOSs in 60 out of the 91 countries covered in the BOS database and across regions, although they are less prominent in Latin America and the Caribbean. The economic rationale for the state to own businesses is less justified in these markets. Moreover, the effectiveness of government ownership is further undermined in lowcapacity and low-governance environments. Indeed, governments could adopt other instruments to address market and coordination failures. For example, they could instead improve the investment climate, including removing barriers to entry and improving fair competition, to support the growth of a dynamic private sector.  \n■ There are multiple examples of good justifications and outcomes of BOSs, but examples of bad or ugly justifications and outcomes are common. Some justifications can be good, such as trying to solve market failures that constrain private investment or private service delivery. Some can be bad, such as trying to  \nBOX 1.1  \nDefinitions of Key Terms Used in the Report  \nThe following key terms are used throughout this report.  \n■ Businesses of the state (BOSs). The term BOSs is used conceptually to discuss the participation of the state in markets as a direct stakeholder, including firms with minority state ownership starting at 10 percent, as well as its participation in firms that are indirectly owned by the state through another firm with state participation. Both central and subnational governments can participate in BOSs. The terms BOS database or BOS data refer to the World Bank Global Businesses of the State database, which provides empirical measures of BOSs (Dall’Ollio et al. 2022a) . The approach is consistent with the Organisation for Economic Co-operation and Development’s broad definition of a state-owned enterprise, which refers to any corporate entity recognized as an enterprise by national law in which the state exercises ownership (OECD 2015) . See annex 1A. Yet this very broad definition can lead in practice to different accounting of firms in every country.  \n■ State-owned enterprises (SOEs). The term SOE is traditionally used when referring to existing literature and empirical work that use the term and when referring to countryspecific SOE policies and reform agendas that are aligned to a country’s own definition. These definitions are often limited to firms owned by the central government, with direct state ownership of 50 percent or more (IMF 2021) .  \nDepending on which of the two definitions is used in the report, all other firms are regarded","cbCaiiVPJrFRu0x4","https://ap.wps.com/l/cbCaiiVPJrFRu0x4","pdf",1234480,1,24,"English","en",105,"# Introduction\n## The state’s footprint beyond traditional SOEs\n## State presence in competitive sectors\n## Motivations and policy effectiveness\n# Definitions of Key Terms Used in the Report\n## Businesses of the state (BOSs)\n## State-owned enterprises (SOEs)\n## Market categories and rationales\n# The Business of the State\n## The new state footprint","[{\"question\":\"What does the report mean by “businesses of the state” (BOSs)?\",\"answer\":\"BOSs refer to state participation in markets as a direct stakeholder, including firms with minority state ownership from 10% and firms indirectly owned through other state-participating companies. The BOS database provides empirical measures from the World Bank Global Businesses of the State database.\"},{\"question\":\"How large is the state’s footprint compared with traditional SOEs?\",\"answer\":\"The report states that BOSs are major market players whose revenues equal about 17% of GDP and that they account for roughly 5% of formal employment on average. It emphasizes that this extends beyond conventional SOEs.\"},{\"question\":\"Why is state ownership less justified in competitive markets?\",\"answer\":\"The document argues that state presence in competitive sectors can be too large to ignore, even though private firms could serve efficiently. In low-capacity and low-governance environments, government ownership effectiveness is further undermined, and other tools—like improving the investment climate and fair competition—may address market and coordination failures better.\"}]",1784499462,60,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":85,"head_meta":87,"extra_data":89,"updated_unix":27},"the-evolving-business-of-the-state-state-ownership-footprint-and-market-impact","",{"@graph":35,"@context":84},[36,53,67],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/the-evolving-business-of-the-state-state-ownership-footprint-and-market-impact/113054/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":61,"encodingFormat":60,"isAccessibleForFree":62,"interactionStatistic":63},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-19",true,{"@type":64,"interactionType":65,"userInteractionCount":4},"InteractionCounter",{"@type":66},"ViewAction",{"@type":68,"mainEntity":69},"FAQPage",[70,76,80],{"name":71,"@type":72,"acceptedAnswer":73},"What does the report mean by “businesses of the state” (BOSs)?","Question",{"text":74,"@type":75},"BOSs refer to state participation in markets as a direct stakeholder, including firms with minority state ownership from 10% and firms indirectly owned through other state-participating companies. The BOS database provides empirical measures from the World Bank Global Businesses of the State database.","Answer",{"name":77,"@type":72,"acceptedAnswer":78},"How large is the state’s footprint compared with traditional SOEs?",{"text":79,"@type":75},"The report states that BOSs are major market players whose revenues equal about 17% of GDP and that they account for roughly 5% of formal employment on average. It emphasizes that this extends beyond conventional SOEs.",{"name":81,"@type":72,"acceptedAnswer":82},"Why is state ownership less justified in competitive markets?",{"text":83,"@type":75},"The document argues that state presence in competitive sectors can be too large to ignore, even though private firms could serve efficiently. 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