Download the PDF paper based on the Policy Dialogue, "Corporate Governance in Developing Countries, Emerging Markets, and Transition Economies"

Corporate governance refers to the public and private institutions that govern the relationship between corporations and their investors. These institutions play an essential role in combating "crony capitalism" in emerging markets and in the long-term process of development. This topic is explored at length in a new paper published by the Development Center of the Organization for Economic Cooperation and Development (OECD) "Technical Paper No. 180, Corporate Governance and National Development" By Charles P. Oman. The paper also includes case studies from Argentina, Brazil, Chile, China, India, Malaysia and South Africa.

According to Mr. Oman, "[Corporate governance] has a role of growing importance to play in helping to increase the flow of financial capital to firms in developing countries. Equally important are the potential benefits of improved corporate governance for overcoming barriers, including the actions of vested interest groups, to achieving sustained productivity growth. Improved corporate governance, however, cannot be considered in isolation. In the financial sector, attention must also be given to measures to strengthen the banking sector, and a country's financial institutions as a whole. In the 'real' sector, close attention must be given to competition policy and sector-specific regulatory reform."

The paper is based on an OECD Development Center and European Bank for Reconstruction and Development policy dialogue titled "Corporate Governance in Developing Countries, Emerging markets, and Transition Economies," held in April 2001. This dialogue was co-sponsored by CIPE and can be downloaded from this link: www.oecd.org/pdf/M00019000/M00019587.pdf