State-owned corporations and enterprises: how can the government adapt its functions and policy for the greater public good?

This paper focuses on analyzing the functions of state-owned enterprises (SOEs) in Ukraine and developing proposals for their reform to increase public welfare. The aim of the article is to investigate and summarize contemporary theoretical concepts regarding the role of SOEs in the economy and society, as well as to identify directions of state policy that will contribute to improving the efficiency of these enterprises. The main content is structured according to the following logic: a) a brief overview of the characteristics of three types of state-owned enterprises: state economic institutions, state enterprises as statutory corporations, and state enterprises as corporate law companies; b) functions of state-owned enterprises: from evolution to the current six functions (market, fiscal, development, social, strategic, predatory); c) state ownership policy regarding state-owned enterprises, including models of relevant state policy; d) development of proposals for updating the functions of state-owned enterprises for greater public good with emphasis on the Ukrainian context. The author draws an important final conclusion that in developing countries, state ownership policy is usually characterized by voluntarism and is strongly subordinated to political goals. The lack of clear codification and low level of transparency lead to inefficiency and corruption. State-owned enterprises are often used as a tool to achieve political objectives, creating additional challenges for management and development. Under such conditions, it is difficult to ensure the stability and efficiency of SOEs, as political influence often leads to changes in strategic directions and enterprise management.