I recently read an article, “Corporate Governance: A Development Challenge”, which was authored by two “organization for economic co-operation and development” (OECD) employees. It peaked my interest as it articulated a compelling argument for global corporate governance that I had not heard before.
The article touches on the broad spectrum of corporate governance and how it applies to the developing world specifically. I’ve been exposed to local corporate governance issues up to this point in my career and thought this article may expose me to a different perspective.
The article opens by posing a key question: “Is corporate governance as important in the developing world?” This question was a consistent theme throughout the article as it methodically elaborated via subtopic headings which included “why corporate governance matters for development”, “oligopolistic rivalry and corporate-control rents”, “Pyramids, cross-shareholding, multiple share classes.” And closes with a “what to do?” section. I will comment on each of these sections below followed by some analytical commentary. continue reading »