Proponents of the free market would argue that the government should only intervene in an economy when the market fails, in areas such as public goods provision. State-owned enterprises (SOEs) then, seem to be antithetical to market dynamics, and are viewed asbloated and inefficient organisations that need to be dismantled or reduced to a minimum. Yet, SOEs continue to exist in countries all around the world, especially in Asia, and have recently even gained importance in the global economy.

Analyse the resilience of state-owned enterprises and critically evaluate how these SOEs can be managed efficiently. Use country examples and specific SOEs from Asia in your analysis. Provide relevant data and statistics where necessary. In your answer, be sure to discuss the following prompts

What is a state-owned enterprise?

Why and how have SOEs remained resilient? In your opinion, what are five (5) key factors that explain SOE resilience in Asia today? Explain.

You should refer to Week 1's policy brief, "Efficient Management of State-Owned Enterprises: Challenges and Opportunities" by the Asian Development Bank Institute, to help you answer this question. Importantly, you should base your analyses on the policy brief as well as your own independent research.

Policy brief: https://www.adb.org/publications/efficient-management-state-owned-enterprises-challenges-and-opportunities