Well-governed economies grow quickly and sustainably. At the national level, good governance means better policies and more transparency that can improve the business climate.
At the corporate level, following best international standards improves the management of companies. It lowers costs, raises standards and makes firms more competitive.
The Bank tackles the national and corporate dimensions of good governance with policy reform and technical assistance, supported by donors.
In 2016, donors such as the UK, Italy, the Central European Initiative, Luxembourg, Slovak Republic, Ukraine Stabilisation and Sustainable Growth Multi-Donor Account and the UN Development Programme
continued to back the EBRD’s Investment Climate and Governance Initiative. The Initiative assists reform-minded governments with measures that make it easier to do business in their countries.
In 2016, for example, with support from the UK’s Good Governance Fund, we launched a technical cooperation project in Serbia to promote the use of commercial mediation in resolving business disputes, saving firms and the courts time and money.
In Tunisia, another 2016 project, launched with funding from the Republic of Korea, is improving the transparency and effectiveness of public procurement. The project is helping to develop regulations and policies to implement modern e-procurement procedures.
The EBRD strengthens the corporate governance of its clients by supporting efficient operations, better risk management, and greater accountability and transparency. Donors back this sustainable approach to EBRD investments by funding advisory services that target specific governance challenges.
In 2016, for example, we approved a regional programme funded by the EBRD Southern and Eastern Mediterranean Multi-Donor Account to strengthen corporate governance in family-owned enterprises as they prepare for investments.