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LESSONS:

Kyrgyz Republic: Capacity Building on Corporate Governance and Insolvency Procedure

| country: Kyrgyz Republic

The project completion report (PCR) noted that the following lessons were derived from the Project:

(a) Corporate sector reforms require a strong long-term commitment, especially in a transition
economy.

(b) Careful preparation of interventions should aim to prevent sequencing problems. In this context, the timing of corporate governance reforms should be coordinated with financial sector and judicial reforms, because they are interlinked.

(c) Building capacity for reforms in state agencies requires competitive wages to be paid to experts employed by these agencies. If competitive salaries cannot be sustained beyond the project period, the type of capacity building supported under the Project cannot be sustainable.

(d) In addition to legal and judicial reforms, securities market development is also crucial for improving corporate governance.

The Validator considers these to be valuable lessons not just for this Project but for capacity building initiatives in general, and especially in the corporate governance sector.

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