OREANDA-NEWS. On 15 January 2009 was announced, that IFC, a member of the World Bank Group, is working with the Azerbaijani government to develop a corporate governance code that will help improve the country’s business environment, enhance transparency of local companies, and increase their competitiveness in local and international markets.

In partnership with the Azerbaijani government and the United States Agency for International Development, IFC is organizing a conference to initiate private-public dialog on developing the new code. Today, the event is bringing together up to 200 representatives of the private sector, government, and academia to discuss and share experiences on developing codes in other countries. The conference will obtain valuable feedback from various stakeholders to help guide the process in Azerbaijan.

“A national corporate governance code will help address the most evident governance challenges facing Azerbaijani companies,” said Mikayil Jabbarov, Deputy Minister of Economic Development of Azerbaijan Republic. “It will also boost their confidence and competitiveness, making them more attractive to investors.”

The conference will be followed by a two-day workshop where local and international experts discuss issues related to developing corporate governance codes and implementation methods. The primary goal is to develop the action plan for implementing a new code for Azerbaijan. This initiative is led by the IFC Global Corporate Governance Forum and IFC Corporate Governance Project.

Phil Armstrong, Head of the IFC Global Corporate Governance Forum, said, “Adopting a corporate governance code is essential for Azerbaijan. It will help raise standards and drive reforms efforts while serving as a benchmark for monitoring and implementing better practices and policies at the corporate level.” 

In 2005, IFC launched the Corporate Governance Project to improve practices at Azerbaijani joint-stock companies and banks, helping them enhance operations and increase their ability to attract financing and investment. To date, the project has trained more than 350 joint-stock companies and banks and enabled clients to attract about USD 18 million in investments due to improved practices. It also helped the government develop four pieces of legislation, which have been adopted, and developed a model course that was adopted by five local universities. The project is supported with funds from the government of Switzerland.