• Sound national systems of corporate governance are essential for all countries, including the poorest, to reap the benefits of globalisation.
• “Corporate governance” comprises the institutions that govern the relationship between people who manage corporations and all others who invest resources in them.
• The quality of local corporate governance critically affects a country’s ability to achieve sustained real productivity growth and the success of its long-term development efforts.
• Pyramidal corporate-ownership structures, cross shareholdings and multiple share classes are widely used by corporate insiders in the developing world to extract corporate-control rents, exploit other investors and resist pressures to improve corporate governance.
• The power of corporate insiders and their close relationship with those who exercise political power mean that sound corporate governance requires sound political governance, and vice versa.
Corporate Governance in Developing, Transition and Emerging-Market Economies
Policy paper
OECD Development Centre Policy Briefs
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