Almaty, Kazakhstan, October 17, 2006—
The International Finance Corporation has announced the launch of the Central
Asia Corporate Governance Project.
IFC’s worldwide experience shows that companies with good corporate governance
have better access to capital, obtain higher sale prices for their shares,
perform better operationally and are less likely to experience fraud.
The project’s objective is to improve corporate governance practices of
Kazakhstani joint stock companies, including banks. This objective will
be accomplished through seminars and workshops, as well as through direct
consultations with joint stock companies on corporate governance best practices.
In addition, the project will work with selected joint stock companies
to carry out full corporate governance assessments, as well as provide
support in implementing the recommended changes.
The project will also provide advice to the government of Kazakhstan to
improve the legislative framework related to corporate governance. Additionally,
to target needs of the next generation of business leaders, the project
will partner with local educational and training institutions to help develop
corporate governance curricula. Finally, the project will conduct a public
and media education campaign to raise awareness of corporate governance
among Kazakhstan’s population and shareholder base.
“Given the success of IFC’s corporate governance technical assistance
model designed and refined in other CIS countries, a continuation of the
program into Central Asia was the next logical step. We are confident that
improved corporate governance will help promote Kazakhstan’s investment
climate in both the short and long run”, - commented Gorton de Mond, IFC
This three year project, which is being implemented and funded by IFC,
will initially focus its activities in Kazakhstan, with the possibility
of later extending into other Central Asian countries. Implementing and
enforcing sound corporate governance systems and practices is essential
as the economies and companies of Central Asia work to build investor confidence,
revitalize production and further market reforms.
For the editor:
The International Finance Corporation,
the private sector arm of the World Bank Group, is the largest multilateral
provider of financing for private enterprise in developing countries. IFC
finances private sector investments, mobilizes capital in international
financial markets, facilitates trade, helps clients improve social and
environmental sustainability, and provides technical assistance and advice
to businesses and governments. From its founding in 1956 through FY06,
IFC has committed more than $56 billion of its own funds for private sector
investments in the developing world and mobilized an additional $25 billion
in syndications for 3,531 companies in 140 developing countries. With the
support of funding from donors, it has also provided more than $1 billion
in technical assistance and advisory services. For more information, visit