Gian Piero Cigna - On the forefront for better corporate governance
Promotion of good corporate governance is at the core of the mandate of the European Bank for Reconstruction and Development (EBRD or the Bank).
Article 1 of the Agreement Establishing the Bank – and the lawyers among those reading this piece will appreciate the importance of this being stated in the first article of the Agreement – spells out that ‘the purpose of the bank shall be to foster the transition towards open market-oriented economies and to promote private and entrepreneurial initiative’.1
The term ‘transition’ has been elaborated by the EBRD economists to capture six ‘transition qualities’ that identify the desirable elements of a market economy. Since 2016, these are: competitive, inclusive, well-governed, green, resilient and integrated. In practical terms, this means that all EBRD operations – both in terms of financing and policy dialogue – need to target at least one of these qualities.