This program document for the Second Capital Market Development and Small and Medium-Size Enterprise Finance Development Policy Loan Project has four pillars as follows : (i) Pillar A - Improve access to finance for small and young enterprises; (ii) Pillar B - Strengthen capital markets by improving the institutional framework and broadening the range of instruments; (iii) Pillar C - Improve the financial sustainability of the Caisse Marocaine des Retraites; and (iv) Pillar D - Strengthen oversight of the banking sector.
... See More + This program supports a private-sector-driven economic model, as well as resilience by helping micro, small, and medium-size enterprises (MSMEs) recover from the European Union’s (EU) economic slump and other recent economic challenges. The program is aligned with the World Bank Group’s Strategy for Middle East and North Africa, which sets an agenda of using development to promote peace and social stability.
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This document has the purpose of identifying and describing actions that could aid in facilitating the financing of Small and Medium Enterprises (SMEs) through instruments channeled via the capital markets.
... See More + By way of precedent, it is worthwhile to mention the document ‘Argentina capital market assessment and development prospects’ of the World Bank (October 2016) where a diagnosis was performed (along with certain recommendations) of the Argentine capital markets in general and including sectoral aspects within which Small and Medium Enterprises (SMEs) and the capital market were analyzed. The structure of the document comprises the following sections: (a) characteristics of SME financing and the main obstacles they face; (b) analysis of proposals; (c) key players; (d) main conclusions; and (e) annexes including comparative country cases.
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Working Paper 117055 JUN 28, 2017
.org;; 000012349:John Daniel Pollner:jpollner@worldbankDisclosed
Argentina’s improved sovereign credit rating has helped to spur the recent sub-sovereign and corporate bond issues. In early April 2016, Standard & Poor’s upgraded Argentina’s sovereign ratings for local and foreign currency debt to B from B-.
... See More + This follows the ratings upgrade from Moody’s which raised Argentina’s sovereign rating for foreign currency denominated debt from C1 to B3 in 2016. This rating was re-affirmed by Moody’s in March 2017. Since Argentina’s re-entry into the international capital markets in early 2016, there has been USD 8.4 billion and USD 4.4 billion of bonds issued by sub-sovereign and corporate entities which is being used, in part, being used to support infrastructure projects. Although investor appetite has been relatively strong, it is difficult to ascertain the level of liquidity for sub-sovereign debt over the long-term. The potential level of involvement of foreign and local banks in the financing of infrastructure is still to be determined once Public-Private Partnerships (PPP) projects are tendered. Going forward, the issues that will impact the participation of lenders are: (i) the timing for completing and implementing the underlying regulatory framework for PPPs; (ii) the development of a project pipeline and subsequent tenders; (ii) macroeconomic conditions. The ability of the renewable energy projects under the RenovAR program to obtain bank financing will serve as useful benchmark for the rest of the PPP program. Although the enactment of the capital markets law is intended to reduce market inefficiencies, additional legislation, regulation and policies are needed to deepen and widen local capital markets. This law, which is still under legislative review, may not go far enough to develop the institutional investor base needed to provide long-term financing for infrastructure. Provisions could be added or new legislation could be developed which will: (a) encourage insurance companies to offer new types of products; (b) rebuild private pension systems by incentivizing the establishment of asset management companies; (c) providing preferential tax treatment for closed end mutual funds or value capture adjacent to real estate; (d) supporting the establishment of REITs; (e) reviewing the governance structure, mission, and investment strategy of the FGS; (f) support the development of long-term hedging instruments to manage currency risk through trusts or related mechanisms; and (g) promote the issuance of peso-linked bonds while developing a peso/dollar hedge market.
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Working Paper 117054 JUN 28, 2017
.org;; 000012349:John Daniel Pollner:jpollner@worldbankDisclosed
Ratings for Business Productivity and Efficiency Development Policy Loans I-III were as follows: Outcome was moderately satisfactory, risk to development outcome was moderate, Bank performance was moderately satisfactory, and Borrower performance was satisfactory.
... See More + Some lessons included: The experience of this DPL program suggests, once again, that in-depth knowledge and government buy-in were essential in Colombia for designing reform programs with substance. Staggering interventions by policy areas presented trade-offs between the breadth and depth of the program.
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Project Performance Assessment Report 110740 JUN 26, 2017
This is a statement by H.E. Arun Jaitley, Minister of Finance, Corporate Affairs and Defense, at the ninety-fifth meeting of the Development Committee held on April 22, 2017.
... See More + IDA 18 will touch the lives of millions of people in the world’s poorest countries by providing them resources to grow and by creating opportunities for their upliftment. India is happy to pledge to this replenishment and thereby contribute to the ambitious developmental impact IDA 18 envisages to create. We have all gathered here to take a step forward in the direction of the mandate of Development Committee to advise the Boards of Governors of the Bank and the Fund on critical development issues and on the financial resources required to promote economic development in developing countries. Thus, our agenda of forward look and Shareholding Review are very pertinent and timely for discussing how to make the World Bank Group stronger for marshalling the financial resources required to promote economic development in developing countries.
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This program document for the Second Capital Market Development and Small and Medium-Size Enterprise Finance Development Policy Loan Project has four pillars as follows : (i) Pillar A - Improve access to finance for small and young enterprises; (ii) Pillar B - Strengthen capital markets by improving the institutional framework and broadening the range of instruments; (iii) Pillar C - Improve the financial sustainability of the Caisse Marocaine des Retraites; and (iv) Pillar D - Strengthen oversight of the banking sector.
... See More + This program supports a private-sector-driven economic model, as well as resilience by helping micro, small, and medium-size enterprises (MSMEs) recover from the European Union’s (EU) economic slump and other recent economic challenges. The program is aligned with the World Bank Group’s Strategy for Middle East and North Africa, which sets an agenda of using development to promote peace and social stability.
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The objectives of the Livestock Competitiveness and Food Safety Projects for Vietnam are to: (i) increase the production efficiency of household-based livestock producers; (ii) reduce the environmental impact of livestock production, processing and marketing; and (iii) improve food safety in livestock product supply chains in selected provinces.
... See More + The Request relates to Component A of the Project, which supports the upgrading of household-based livestock production and market integration through, among other things, the training of farmers and animal-production and veterinary staff in the application of Good Animal Husbandry Practices (GAHP), the piloting of Livestock Planning Zones, and the upgrading of slaughterhouses and meat markets. The request was sent by two animal protection organizations claiming that the project failed to consider the welfare of the farm animals housed by the livestock producers involved in the project. They also complained about lack of consultation and access to information. After reviewing the information gathered through its own due diligence and the information received from Management, the Panel is not registering the Request for Inspection given the absence of a currently applicable World Bank Operational Policy and Procedure on animal welfare against which the Panel could determine project compliance. The Requesters allege that the Bank failed to include training on higher-level animal welfare housing systems as part of the Project's training on GAHP. In doing so, they claim that the project: (a) created physical and psychological harm to the farm animals involved in the project; (b) undermined the Requester's voice on the importance of animal welfare in livestock projects; and (c) hindered progress towards developing higher-level animal welfare housing systems in the country. They explain that the World Bank's Environmental and Social Framework now specifically references the International Finance Corporation's (IFC's) Good Practice Note (GPN) on Animal Welfare, and therefore, ensuring the welfare of farm animals in accordance with the GPN is a requirement of all projects in the livestock sector. The Requesters also contend that stakeholder engagement has been inadequate and neither the Requesters nor any other animal welfare organization in Vietnam were consulted about the project. In addition, they claim that Management failed to answer their requests to access training materials used by the project.
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Inspection Panel Notice of Registration 114025 MAR 21, 2017
This report has been prepared to support the government of Moldova’s efforts to identify and begin to address issues and opportunities in relation to their state owned enterprises (SOEs).
... See More + The report documents the findings of Phase I technical assistance, delivered by the World Bank Governance team in collaboration with the United Kingdom's Good Governance Fund, and serves as a foundation for the development and prioritization of potential reforms. Recognizing the challenges and legacy of reforms in this area, the report outlines current practices and highlights key areas for future focus by policy makers which may help improve public ownership. The report focuses on key areas of corporate governance that are vital to ensure that SOEs operate efficiently, transparently, and in an accountable manner. It draws on publicly available data, as well as material provided by counterparts and collected from country authorities. The report makes a number of recommendations for reform. Phase 2 of this technical assistance will support implementation and capacity building in selected areas.
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This newsletter includes following countries and headings: Peru; United States of America (USA); East Asia and the Pacific; Europe and Central Asia; Latin America and the Caribbean; Middle East and North Africa; Sub-Saharan Africa; South Asia; how good corporate governance facilitates investment in Mongolia; media coverage; IFC’s corporate governance program; and corporate governance toolkits and manuals.
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This paper comprises a set of recommendations related to ethical principles and the corporate compliance function. The objective of this paper is to share a set of good practices for companies in Latin America to consider in developing, implementing or improving their ethical guidelines and compliance policies and practices.
... See More + This paper is based on discussions and input from, as well as on responses to a questionnaire on compliance distributed among, member companies of the Compliance and Ethics Working Group (the Working Group) of the Latin American Companies Circle (the Companies Circle). The Companies Circle is a group of Latin American firms that have demonstrated leadership in advocating for corporate governance improvements in companies throughout Latin America, and which seek to practice advanced corporate governance themselves. The Companies Circle considers this paper as a Living document which may be updated from time to time to reflect changing realities, as well as to draw attention to developments in the corporate governance field.
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Over the past decade, a large number of low- and lower-middle income ‘frontier economies’ have begun to access international private capital markets to meet fiscal financing needs.
... See More + In this paper we seek to identify drivers of this trend, identify associated risks, and present policy implications for frontier-market policy-makers. Through simple analysis of the characteristics of recent frontier market issuers, we show that smaller, poorer, and less well-governed economies are now accessing global credit markets. Through cross-country regression analysis, however, we demonstrate that the capacity of these countries to issue debt (and the cost of this debt) continues to be influenced by their macroeconomic performance and quality of governance. Drawing on evidence from Ghana and Zambia, we illustrate potential risks arising from recent expansions of access to global debt markets, where rapid debt accumulation of foreign-denominated debt in the context of lessened market discipline and following recent debt relief is now posing pronounced debt sustainability and refinancing risks. We conclude that increased access to international debt markets presents both opportunities and risks to frontier issuers. The new cohort of frontier issuing economies should: i) take careful account of debt risks and debt sustainability considerations when developing fiscal policy and debt strategies; ii) work to reduce the costs of ongoing external borrowing through adopting sound economic policies and protecting credit ratings; and iii) develop domestic debt markets as a potential alternative source of fiscal financing through which to reduce reliance on foreign-denominated Eurobond debt with its associated refinancing and currency risks.
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This Global Corporate Governance Forum toolkit emphasizes the purpose and benefits of developing corporate governance codes of best practice. Whilst globalization of economies has increased, and international corporate guidelines have been adopted, each country has its own values, societal norms, way of doing business, and special circumstances.
... See More + Thus, to guide policy makers, market players, and corporations in adopting sound corporate governance practices at the local level, every country should endeavor to develop its own corporate governance code. The toolkit sets out a step-by-step approach that can be followed by stakeholders to develop, implement, and review a Corporate Governance Code of Best Practice. The toolkit focuses on the various steps involved in crafting, disseminating, implementing, monitoring, and reviewing corporate governance codes of best practice.
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On January 27, 2017, the Multilateral Investment Guarantee Agency (MIGA) Council of Governors adopted resolution number one hundred and two. It was resolved that, the Council expresses its satisfaction with the analysis of the activities of the Agency; the Council welcomes the actions taken by the Agency to increase cooperation with other members of the World Bank Group with the objective to supplement and complement their activities; the Council welcomes the actions taken by the Agency to innovate and enhance MIGA’s operations in its member countries, particularly in IDA-eligible and fragile and conflict-affected states; and the next periodic review under Article 67 of the MIGA Convention shall be undertaken at such time when the Board of Directors requests or when the Agency proposes to introduce any significant changes in the future to enhance its ability to serve its objectives.
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The credit crisis has caused a cataclysm in corporate governance circles. Distinguished professors, leaders of industry, regulators, legislators and blue ribbon panels around the world are examining everything from bank regulation to how individuals relate to society.
... See More + There are more "big ideas" floating around than ever. Most, of course, will come into the world with a bang, only to be forgotten equally quickly. Into this unsettled, shifting landscape, David Beatty takes a different approach. Rather than one big idea, Beatty proposes a series of concrete, common-sense methods to improve the effectiveness of Boards of Directors. These are improvements born of the current context, but which seem timeless. Much in the same way that a magician's trick seems obvious once you know how it is done, Beatty's suggestions seem absolutely intuitive once read, yet few boards now practice them. Beatty's prescriptions divide into three parts: 1) equipping boards with adequate expertise to deal with today's complex issues; 2) managing the time of Directors more efficiently so as to allow true strategic planning; and 3) bridging the expertise chasm between Managers and Directors. Those are all long-standing issues, what makes Beatty's advice valuable are the specific steps he recommends to achieve them.
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The G20/Organization for Economic Co-operation and Development (OECD) Principles of Corporate Governance help policy makers evaluate and improve the legal, regulatory, and institutional framework for corporate governance, with a view to supporting economic efficiency, sustainable growth and financial stability.
... See More + First published in 1999, the Principles have since become an international benchmark for policy makers, investors, corporations and other stakeholders worldwide. They have also been adopted as one of the Financial Stability Board’s Key Standards for Sound Financial Systems and form the basis for the World Bank Reports on the Observance of Standards and Codes (ROSC) in the area of corporate governance. This edition contains the results of the second review of the Principles, conducted in 2014 -2015.
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Board Evaluation Practices: Experiences from the Latin American Companies Circle (“BE Practices”) was prepared by the Companies Circle and its Board Evaluation Working Group.1In preparation for this report, and in order to collect the relevant information for analyzing the companies’ practices, the Working Group conducted a survey among the Companies Circle members.
... See More + This information was used to develop a set of good practices to be considered by other Latin American companies when undertaking Board evaluations.2Moreover, the Working Group also reviewed the recent market literature on Board evaluation and presented the results of a survey of fifteen out of seventeen members of the Companies Circle that conduct Board evaluations.This report also covers Board evaluation practices employed by Latin American companies and their motivation, considering its scope and tools. The document presents additionally what companies are expected to do as a result of the evaluation process to improve Board performance. This document first presents the different types of Board evaluations. Then it describes existing practices when conducting Board evaluations based on the experiences of the Companies Circle. Section D presents the main conclusions and useful practices to be considered by Latin American companies that undertake Board evaluations. The main findings of the study are: (i) Board evaluations have been increasingly recognized in the region as a useful tool to improve the performance of the Board; (ii) trust in the credibility and confidentiality of the evaluation process is a key factor for its success; (iii) in the path to build an effective Board, evaluations require the commitment of directors to undergo a thorough review to identify the strengths and areas for improvement; (iv) The main results of the evaluation should be inputs to an action plan, followed up by the Board.
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BM and FBOVESPA, Latin America’s leading exchange in number of transactions and one of the world’s largest in market value, created the corporate sustainability index (ISE índice de sustentabilidade empresarial) in 2005 with financial support from the International Finance Corporation (IFC).
... See More + The ISE was designed to create an efficient investment mechanism to group companies with superior performance that manage environmental, social, and governance risks and opportunities. The ISE served as a reference guide for initiation of sustainability practices as well as for their continuous improvement. The firms that have been in the index (for some time or since its inception) report valuable benefits in terms of improved sustainability practices, better reputation, and, to some extent, positive impacts on their stock price, access to capital, and liquidity in the stock market. The ISE supported a rapid move to sustainable practices among listed firms, with most relatively large companies with liquid stocks eager to participate. As experience has been gained, the requirements for membership have been tightened, and fewer firms have been applying. IFC’s strategy in Brazil focuses on promoting access to finance and developing capital markets to reach low-income individuals, microenterprises, and small businesses.
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