Corporate Governance reforms take hold in West Bank and Gaza

This workshop, attended by over 70 participants from banks and companies including the head of the PMA, CMA and representatives of public and private sectors focused on explaining the definition of and rationale for good corporate governance. This event, served to bring international corporate governance experts on the one hand and, on the other, senior policy makers, senior executives and directors, as well as thought leaders from the West Bank and Gaza together to discuss how best to adapt and implement international corporate governance standards and principles in the local context.

The discussions primarily focused on building a strong business case for corporate governance, as well as introducing the main international reference points for good corporate governance—the OECD Principles of Corporate Governance and the (draft) Basel Committee Guidelines on Bank Corporate Governance. A special panel discussion between leading corporate governance experts and practitioners served to shed light on how to practically implement good corporate governance.

"What makes this event so unique," said Youssef Habesch, IFC Country Officer for West Bank and Gaza, "is that it convenes international corporate governance experts and the business community around a table to discuss how best to effectuate real change in the area of corporate governance." "IFC, through its corporate governance program for the MENA region," added Philippa Grant, IFC's Senior Project Officer for corporate governance, "is ideally placed to support reform efforts through practical and hands-on technical assistance and advisory services on the ground, in particular for local banks and companies."

Why does corporate governance matter to IFC? "Simply because it adds value to clients, and, in addition, presents opportunities for the institution to manage its investment and reduce its reputational risks", said Michael Higgins, IFC's Senior Operations Manager for Financial Markets. "Moreover, working to improve corporate governance contributes more broadly to IFC's mission to promote sustainable private sector investment in developing countries in general and the West Bank and Gaza in particular" added Michael.

IFC's corporate governance program for the MENA region has as its goal to demonstrably improve corporate governance in the MENA region. This goal will be supported by four objectives, namely to:

1. Improve the corporate governance practices of banks and corporations, thus improving the quality of business lending and access to affordable capital, increasing their decision-making capacity and operational efficiency, and enhancing their reputations.

2. Help develop an effective corporate governance framework, in support of open and transparent markets able to attract investment, as well as a fair, rule-based and enforceable regime.

3. Increase the training capacity of educational institutions on corporate governance, thus helping these to train the next generation of investors, directors, managers and other stakeholders on good corporate governance.

4. Conduct a public education campaign to educate business leaders, regulators, journalists and the public in general about the importance of corporate governance.

This strategy will be implemented through a series of corporate governance projects across the MENA region, including the West Bank and Gaza, mainly focusing on training events, consultations and corporate governance improvement plans for banks and corporations. As much as possible, IFC will attempt to build local capacity, implementing its projects with and through local corporate governance institutions to ensure for sustainable reforms.