Authors: Mohammad Nazmul Huda
Abstract: Evaluating state-owned enterprises (SOEs) strictly through conventional commercial accounting metrics often fails to capture their broader welfare impacts in developing nations. The state-owned sugar sector in Bangladesh, managed by the Bangladesh Sugar and Food Industries Corporation (BSFIC), frequently faces criticism due to persistent operational deficits. However, this sector operates primarily as a socio-economic anchor across rural landscapes. This paper empirical-conceptually measures the non-market “Social Value” generated by state-owned sugar mills across four critical dimensions: public education, community healthcare, rural infrastructure, and regional agricultural development. Utilizing a Social Return on Investment (SROI) logic and institutional analysis, the study demonstrates that the socio-economic externalities—including climate-resilient farming, subsidized medical services, rural transport networks, and micro-economic liquidity—substantially offset recorded financial losses. The paper argues for an integrated evaluation framework that embeds social accounting into public sector performance appraisals to safeguard rural livelihoods and advance the UN Sustainable Development Goals (SDGs).
