Dushanbe, Tajikistan, October 23, 2007
— IFC, a member the World Bank Group, has announced the launch of the
IFC Central Asia Corporate Governance Project in Tajikistan.
The objective is to improve the corporate
governance practices of the country’s joint stock companies, including
banks, helping strengthen their operations and their ability to attract
investment. Evidence shows that poor corporate governance is a critical
stumbling block to individual companies’ as well as entire countries’
economic growth and attractiveness to investors. By contrast, companies
with good corporate governance have better access to finance, trade their
shares at higher prices, increase efficiency, enjoy quicker decision-making,
and have less likelihood of fraud and abuse of power.
Over the next two years, the project’s
Tajikistan team, based in Dushanbe, will provide a series of seminars,
training courses, and individual consultations on a wide variety of corporate
governance topics to shareholders, supervisory board members, and managers
of joint stock companies. In addition, a limited number of companies and
banks, selected through a competitive process, will participate in a comprehensive
pilot program aimed at developing their corporate governance practices.
IFC will also advise the government
of Tajikistan on how to improve the corporate governance legislative framework
and will work with the local media to raise public awareness about the
importance of good corporate governance. Clients in Tajikistan will
benefit from IFC’s regional and worldwide expertise in corporate governance
The expansion of the corporate governance
project into Tajikistan is the second phase of development for IFC’s Central
Asia Corporate Governance Project, which commenced in 2006 in Kazakhstan.
Karl Bach, Project Manager of IFC Central
Asia Corporate Governance Project, commented, “The Tajikistan team has
a unique opportunity to improve clients’ knowledge and practices, drawing
on both IFC’s extensive experience with corporate governance projects
throughout the CIS as well as international best practices. Improving
corporate governance is a continuous process. This work will enable Tajik
companies to improve their corporate governance culture, and it will contribute
to development of the country’s private sector.”
As of June 2007, more than 8,300 companies
in the CIS have received training or consultations on corporate governance
from IFC and have attracted investments of more than $2.3 billion, including
$112 million from IFC.
IFC, a member of the World Bank Group,
fosters sustainable economic growth in developing countries by financing
private sector investment, mobilizing private capital in local and international
financial markets, and providing advisory and risk mitigation services
to businesses and governments. IFC’s vision is that poor people have the
opportunity to escape poverty and improve their lives. In FY07, IFC committed
$8.2 billion and mobilized an additional $3.9 billion through loan participations
and structured finance for 299 investments in 69 developing countries.
IFC also provided advisory services in 97 countries. For more information,