Corporate Governance Promotion: Access to Funding and International Expertise March 14-15, 2006 Center for International Private Enterprise.

Corporate Governance Promotion: Access to Funding and International Expertise

March 14-15, 2006

Center for International Private Enterprise

Center for International Private Enterprise (CIPE) Non-profit affiliate of the U.S. Chamber of Commerce

One of the four core institutes of the National Endowment for Democracy

Supported more than 800 local initiatives in 95 developing countries

Key issues:

Business associations and advocacy Combating corruption Corporate governance Informal sector and property rights Access to information Democratic governance Building entrepreneurial culture and supporting women-owned businesses

Source: The World Bank Group

Key Institutions Must Function Well

Procedures for bankruptcy Property rights Contract enforcement – judicial system(s) Enforcement mechanisms for regulations Securities markets Free press – financial press Rating agencies Other systemic checks and balances Professionalism in auditing, legal sectors, directors’

institutes

Human Capital

Supply of Directors – executive and non-executive

Trained financial press Parliamentary oversight Capacity of regulatory et al personnel Judicial awareness and independence

International Cooperation on Corporate Governance in the MENA region

OECD MENA Initiative on Governance and Investment for Development Working Group 5: Improving Corporate Governance Practices In co-operation with GCGF and CIPE, the working group has three

phases of work: stock taking, development of country specific and regional policy advice and initiatives, and support and assessment of progress in implementation.

International Finance Corporation (IFC) IFC aims to help companies and countries improve standards of

governance for corporations. IFC developed a corporate governance methodology that IFC staff uses to assess the quality of the governance of potential investee companies and that serves as a guide for their work with clients to add value via improved client governance practices.

International Cooperation on Corporate Governance in the MENA region Global Corporate Governance Forum (GCGF)

GCGF was co-founded by the World Bank and OECD to promote global, regional, and local initiatives that aim to improve the institutional framework and practices of corporate governance. The forum’s work encompasses:

Raising awareness and building consensus Supporting institution and capacity building through training

programs and tool kits Supporting research Disseminating information on best practices

Hawkama – The Institute for Corporate Governance Regional institute located in Dubai Supported by Dubai International Financial Center, CIPE, IFC, UAE

Ministry of Finance, Union of Arab Banks, Dubai School of Government, Young Arab Leaders, and the Institute of Management Development.

Launched February 2006

CIPE Strategy on Corporate Governance in the MENA region

Initial Assessment and Advocacy – includes adopting OECD Principles of Corporate Governance and raising awareness through workshops and publications

Outreach and Awareness Raising – includes developing corporate governance codes, assistance in implementation, communications

Capacity and Institutional Development – includes training and certification of managers, directors, and financial intermediaries and establishment of institutes of directors

Consolidation – includes strengthening shareholders’ rights groups and institutes of directors and conducting risk rankings and evaluations

Program Models Russian Institute of Directors

Developed advanced curriculum and training materials on corporate governance for the directors of large private companies and based on the new Russian Corporate Governance Code.

The Russian Institute of Directors' website (www.rid.ru) focuses on putting in place efficient corporate governance principles in Russian companies, and includes the recently drafted Code of Corporate Conduct.

Romanian Corporate Governance Code The International Center for Entrepreneurial Studies (ICES) and the Strategic

Alliance of Business Associations (SABA) developed a Romanian business community-led "Voluntary Code of Corporate Governance.”

Feedback and contributions from the business community served to establish a national network on corporate governance.

Kenya Center for Corporate Governance With the consent and support of the private sector and development partners, the

Private Sector Corporate Governance Trust (PSCGT) established the Kenya Center for Corporate Governance to promote and monitor compliance with the principles and practices of good corporate governance.

Building national capacity to implement and apply the principles and practices of good corporate governance through training, research, monitoring and evaluation and advocacy programs.

Program Models Association of Development Financing Institutions in Asia and the

Pacific (ADFIAP) Focal point of all development banks and other financial institutions engaged in the

financing of development in the Asian and Pacific region. Developed a corporate governance rating system used throughout the region.

Middle East Regional Corporate Governance Roundtables Region-wide initiative to assess the state of corporate governance in the Middle

East & North Africa in cooperation with GCGF Produced a comprehensive report on corporate governance in Morocco, Egypt,

Jordan, and Lebanon, including trends and recommendations for improvement

Confecameras (Colombian Chamber of Commerce) Looked to as a leader in corporate governance reform efforts throughout Latin

America for its successes National survey to analyze the strengths and weaknesses of existing governance

structures among firms in Colombia was followed by a series of workshops on how corporate governance affects the operational systems of firms

Workshop for media on economic journalism to highlight how free access to economic information improves governance, transparency and accountability

Forum specifically for presidents, vice-presidents, members of the board, and other managers in charge of corporate governance systems in their firms.

For a full list, see http://www.cipe.org/programs/corp_gov/othercg.htm

CIPE - MEPI Programs in Egypt

Developed the first corporate governance code written in Arabic by and for the Egyptian private sector.

Supported the establishment of the Egyptian Institute of Directors.

CIPE – MEPI Programs in Lebanon

The Lebanese Transparency Association developed a Code of Corporate Governance for Small and Medium Enterprises in Lebanon.

The code will be publicly launched at the end of March.

Corporate Governance in West Bank/Gaza Center for Private Sector Development (CPSD)

Part of Palestinian Businessmen Association

CPSD 2003 program Conducted a baseline study on the status of corporate governance in private

sector firms. Implemented a multi-faceted corporate governance educational and advocacy

program which was focused primarily on improving accounting and auditing practices in accordance with recognized international standards and fostering more positive relations between business firms and commercial banks.

Prepared a concise handbook on modern corporate governance, which is to be used in workshops and in relevant academic institutions.

CPSD 2006 program Conducting intensive workshops to raise awareness on corporate governance. Conducting train the trainers program on corporate governance Holding corporate governance course in West Bank/Gaza universities Raising awareness through print media articles and televised debates Training senior staff in corporate governance

Access to Funding

Supporting Business Association Involvement:Companies are the end-users

CIPE sources NED USAID MEPI

Proposal Process CIPE accepts proposal submissions on a quarterly basis CIPE Executive Committee and NED Board approval

CIPE Arabic Publications and Hawkama website

In Search of Good Directors: A Guide to Building Corporate Governance in the 21st Century

www.hawkama.net

Economic Reform Journal

Corporate Governance Trends Newsletter

Guide to the Egyptian Code of Corporate Governance