It is imperative for SOEs to develop good corporate governance and maintain an arm's length relationship with government, regardless of whether it is a commercial or noncommercial SOE. Some of the policy actions under this program were designed to improve the government's performance of its SOE ownership function. However, in addition to these policy actions, it is imperative for SOEs to proactively promote good corporate governance and develop functional autonomy from the government. Additional reforms which could help foster financial sustainability and reduce the fiscal burden include the following: (a) greater board independence, (b) board selection of chief executive officer, (c) clear performance mandate, (d) selection of women onto boards as a separate board category, (e) arm's length agreement on financial and non-financial key performance indicators, (f) ringfencing of specific public service obligations and compensatory mechanisms, and (g) full financial and nonfinancial disclosures.
Fiscal Resilience and Social Protection Support Program (Subprograms 1 and 2)