The OECD Principles of Corporate Governance in Emerging Markets: A Successful Example of Networked Governance?
Mathias M. Siems
Durham University - Durham Law School; University of Cambridge - Centre for Business Research
Oscar Salvador Alvarez-Macotela
KLS, University of Kent
March 31, 2013
Mark Fenwick, Steven Van Uytsel and Stefan Wrbka (eds.), Networked Governance, Transnational Business and the Law, Berlin: Springer, 2014, Forthcoming
8th Annual Kyushu University Law Conference, 10-11 February 2013
The OECD Principles of Corporate Governance are a networked form of governance predominantly aimed at the law-makers and firms of emerging markets. This chapter discusses whether the approach of the OECD Principles can be regarded as a success. Our analysis provides a mixed response. While features of networked governance are clearly visible in the drafting and operation of the Principles, the practical effectiveness may be hindered by the lack of well-functioning local institutions. Moreover, while appreciating that the OECD has engaged in activities such as regional roundtables in order to take account of the local context, the Principles themselves are based on the corporate governance model of the OECD member countries not perfectly suitable for emerging markets. Recent events also point towards scepticism of whether adoption of the Principles can be seen as an effective way to prevent future financial crises.
Number of Pages in PDF File: 26
Keywords: corporate governance, company law, emerging markets, emerging economies, networked governance, trust
JEL Classification: F63, G34, K22, M14, O16
Date posted: February 13, 2013 ; Last revised: December 9, 2013