Better Companies, Better Societies

1. Better Companies,Better Societies Global Corporate Governance Forum Presentation to the Norwegian Delegation Washington, DC November 13, 2008

2. Overview Our Focus and Value Proposition Our Progress and FY08 Performance How we Operate Our FY09 Work Program and Objectives Our Priorities and Challenges How we work with Norway Looking Forward!

3. Integrated Approach to Reform Sustainable Capacity Building Raising Awareness for Reform Agenda Technical Assistance Support and Design Policy Investment Forum Toolkits Private Sector Expertise Research Country Assessments Policy Dialogue Cross-Regional Experience and Best Practices

4. Our Transition and Progress FY08 • $5,108 K • Projects: 46 • Deliverables: 161 [70 research] • Active in all regions • New tools • Strengthened partnerships • Increased global profile FY07 • $2,499 K • Projects: 24 • Deliverables: 37 • Emphasis on TA • Initiate new reform tools • More PSAG involvement FY06 • $1,156K • Projects: 5 • Evaluate Global Mandate • New Strategy FY05 • $1,063K • Projects: 3 • Start of second funding cycle Four fold acceleration in program activity

5. Our Value Proposition Corporate Governance is integral to Growth… to meet the MDGs i.t.o Our Mandate (Monterrey, 1999) through promoting better governed companies for better societies Need to address institutional shortcomings… to develop the necessary capacity capable of implementing international standards and practices Leveraging our unique advantages… focused on improving boardroom practices providing practical guidance drawing on global best practices Providing relevant, practical assistance… applying our toolkits drawn from international best practices using our global network of experts to provide world class guidance

6. Our Value Proposition Cont. Sharing technical know-how to… make institutions more self sustaining building capacity for market-demanded services achieve commercial viability, reduce dependency on funded assistance Helping the Forum’s global penetration… working with like-minded institutions to leverage that capacity e.g. IFC, World Bank, EDFIs, EBRD, UN GC, GRI, AfDB, etc. Expanding that capacity by… introducing innovative methods to mediate business disputes training media as an “extra regulatory” vanguard for good CG! Building Stronger, Sustainable Institutions

7. FY08 Highlights FY08 • Full program evaluation with strongly positive findings, plus two project-level evaluations confirming effectiveness • Sub-Saharan Africa remains target • Technical support main focus of work • Launch of CG Board Leadership Training Resources (Toolkit 3) – heavy demand • Media training partnership with Reuters • CG mediation work started • New series of publications, website updated as important outreach • $5,108 K • Projects: 46 • Deliverables: 161 [70 research] • Active in all regions • New tools • Strengthened partnerships • Increased global profile FY05 FY06 FY07 Four fold acceleration in program activity

8. Sequenced, Integrated Strategy CG Codes TK 1 Raising boardroom practices, setting framework for enhanced standards Director Institutions TK 2 Creating institutional capacity for implementation of best practice CG Leadership Resources TK 3 Providing material to facilitate sustainable institutions, quality training CG Mediation TK 4 [Due FY09] Supporting business climate and relieving legal system Media TK 5 [Due FY10] Facilitating extra regulatory market oversight – JV with Reuters Toolkits Provide “Best in Class”, Practical Guidance – Building Institutional Capacity

9. Our Reform Approach Deploying Our Toolkits ENTRY POINTS • Catalyst for Implementing CG Policy Reform • e.g., World Bank CG ROSC, OECD • Provide Leverage for CG Reform • e.g., IFC, World Bank, EDFI, EBRD, CIPE, EU, etc. • Build Expertise in CG Institutions • e.g., Accrediting Toolkit Use, Training Trainers • Support Local Capacity through TA • e.g., CG Experts, PSAG, Director Institutes, etc.

10. Being Resourceful, Putting it Together International Experts Private Sector Advisors Reform Toolkits Institutional collaboration, building local capacity IFC World Bank Systematic, Integrated Solutions

11. Our Reform Approach Deploying Our Toolkits ENTRY POINTS Catalyst for Implementing CG Policy Reform • Provide Leverage for CG Reform • e.g., IFC, World Bank, EDFI, EBRD, etc. • Build Expertise in CG Institutions • e.g., Accrediting Toolkit Use, Training Trainers • Support Local Capacity through TA • e.g., CG Experts, PSAG, Building Collaboration

12. FY09 Nigeria or Cameroon, Tanzania or Botswana FY08 Kenya Senegal Malawi Zambia Example: Country Reform Framework

13. FY09 Nigeria or Cameroon, Tanzania or Botswana FY08 Kenya Senegal Malawi Providing Targeted, Practical Support “the Forum is very effective… by providing opportunities for countries to create their own solutions. It’s a great approach for a multi-lateral institution… these types of assistance are more legitimate, stronger and more sustainable over time.”

14. Our Reform Approach Deploying Our Toolkits ENTRY POINTS Catalyst for CG Policy Recommendations Provide Leverage for CG Reform • Build Expertise in CG Institutions • e.g., Accrediting Toolkit Use, Training Trainers • Support Local Capacity through TA • e.g., CG Experts, PSAG, Building Collaboration

15. Example: Leveraging our Partnerships DFI Approach Statement EDFI, e.g. Norfund Policy Intent CG Assessment Investment Officers Investment Clients Forum IO Training Director Training Toolkit 3 Building institutional capacity, monitoring its effectiveness Ensuring consistent, world class standards of training Local IoD

16. Need to Deepen Implementation DFI Approach Statement EDFI Policy Intent CG Assessment Investment Officers Investment Clients “the practical difficulty is not the publication of the toolkit or even its dissemination; rather it’s the need for staff on the ground to lobby, explain and provide follow-up for the necessary changes to occur in mentality and behaviors” Forum IO Training Director Training Toolkit 3 Building institutional capacity, monitoring its effectiveness Ensuring consistent, world class standards of training Local IoD

17. Our Reform Approach Deploying Our Toolkits ENTRY POINTS Catalyst for CG Policy Recommendations Provide Leverage for CG Reform Build Expertise in CG Institutions • Support Local Capacity through TA • e.g., CG Experts, PSAG, Building Collaboration

18. Example: Building Institutional Capacity Funding Support Technical Support Business Plan for Sustainability Forum AfDB Mozambique IoD IFC Toolkit 1 Brazil Institute of CG CIPE Setting Framework for Long-term Viability Using Forum Tools Forum USD5K Partners USD140K

19. Toolkits Provide Detailed, Practical Use Funding Support Technical Support Business Plan for Sustainability Forum AfDB Mozambique IoD IFC Toolkit 1 Brazil Institute of CG “The Forum toolkit for IoDs was our roadmap, laying out the steps we needed to follow for our institute’s launch and ongoing administration.” CIPE Setting Framework for Long-term Viability Using Forum Tools Forum USD5K Partners USD140K

20. Our Reform Approach Deploying Our Toolkits ENTRY POINTS Catalyst for CG Policy Recommendations Provide Leverage for CG Reform Build Expertise in CG Institutions Support Local Capacity through TA

21. Example: Facilitating Collaboration - India World Bank IFC Corporate Affairs Finance Institute of Corporate Affairs SEBI/NISM Forum Business Investor Dialogue Advisory Council of Business Leaders • Director Training • Media Training • CG Mediation “Enabling Funding” “Bilateral Partner” Forum USD100K Japan USD500K

22. Stimulating Reform Commitment World Bank IFC Corporate Affairs Finance “The exercise was invaluable in ascertaining what is working and what isn’t, assisting the regulator in identifying gaps and evaluating training needs for board directors and defining other areas of support to inform corporate governance reform in India.” Institute of Corporate Affairs SEBI/NISM Forum Advisory Council of Business Leaders Business Investor Dialogue • Director Training • Media Training • CG Mediation “Enabling Funding” “Core Funding” Forum USD100K Japan USD500K

23. FY09 Objectives Capacity Building Continued focus on technical assistance, specifically Sub-Saharan Africa Expand work implementing World Bank CG ROSC recommendations Implementation of CG Board Leadership Training Resourcesglobally Worldwide rollout of media training (with Reuters) Build capacity in IFC AS teams for scalability of reform tools Knowledge Management Complete CG Mediation toolkit and commence rollout Continued attention to lessons learned, case studies Build website, interactive electronic capabilities Project Supervision Continue with selected M&E of key projects, introduce client survey Implement Independent Programme Evaluation recommendations Secure new sources of funding – global and bilateral

24. Target Response by Scope Target Response by Region Target Response by Mandate Target Response

25. By Region (US $000) FY09 Program Allocation By Activity Disseminate Best Practices, 11% Raise Awareness, Build Consensus, 10% Technical Assistance, Capacity Building, 77% Sponsor Research, 2% Projects 47; Deliverables 113 (FY09 Q1: 8/27)

26. Our SWOT Analysis Strengths Responsive, agile Demand driven Quality of interventions Emphasis on local ownership PSAG Strong partnerships, reputation Weaknesses Small in face of high demand Limited field presence Difficult to say “No” Catalyst = difficult to prove impact KM not sufficiently accessible Funding model = multi-year v. annual Opportunities High demand for tools Replicability of tools, interventions Ability to build complex partnerships Leveraging off WBG TA resources Using technology for scalability Threats Managing quality of delivery Inability to deepen interventions Resources limit product scalability Systems and coordination demands Diverse donor interests Demands on PSAG pro bono

27. SWOT Analysis - Strengths Strengths Responsive, agile Demand driven Quality of interventions Emphasis on local ownership Private Sector Advisors Strong partnerships, reputation Weaknesses Small in face of high demand Limited field presence Difficult to say “No” Catalyst = difficult to prove impact KM not sufficiently accessible Funding model = multi-year v. annual Opportunities High demand for tools Replicability of tools, interventions Ability to build complex partnerships Leveraging off WBG TA resources Using technology for scalability Threats Managing quality of delivery Inability to deepen interventions Resources limit product scalability Systems and coordination demands Donor interests unclear Demands on PSAG pro bono

28. SWOT Analysis -Weaknesses Weaknesses Small in face of high demand Limited field presence Difficult to say “No” Catalyst = difficult to prove impact KM not sufficiently accessible Funding model = multi-year v. annual Strengths Responsive, agile Demand driven Emphasis on local ownership Convening authority PSAG Strong partnerships Opportunities High demand for tools Replicability of tools, interventions Ability to build complex partnerships Leveraging off WBG TA resources Using technology for scalability Threats Managing quality of delivery Inability to deepen interventions Resources limit product scalability Systems and coordination demands Donor interests unclear Demands on PSAG pro bono

29. SWOT Analysis - Opportunities Opportunities High demand for tools Replicability of tools, interventions Ability to build complex partnerships Leveraging off WBG TA resources Using technology for scalability Strengths Responsive, agile Demand driven Emphasis on local ownership Convening authority PSAG Strong partnerships Weaknesses Small in face of high demand Limited field presence Difficult to say “No” Catalyst = difficult to prove impact KM not sufficiently accessible Funding model = multi-year v. annual Threats Managing quality of delivery Inability to deepen interventions Resources limit product scalability Systems and coordination demands Donor interests unclear Demands on PSAG pro bono

30. SWOT Analysis - Threats Threats Managing quality of delivery Inability to deepen interventions Resources limit product scalability Systems and coordination demands Diverse donor interests Demands on PSAG pro bono Strengths Responsive, agile Demand driven Emphasis on local ownership Convening authority PSAG Strong partnerships Weaknesses Small in face of high demand Limited field presence Difficult to say “No” Catalyst = difficult to prove impact KM not sufficiently accessible Funding model = multi-year v. annual Opportunities High demand for tools Replicability of tools, interventions Ability to build complex partnerships Leveraging off WBG TA resources Using technology for scalability

31. Ongoing collaboration with Norway MoFA through NTF-PSI Framework Agreement total contribution of USD1,25m FY05–09 (USD0,25m/yr) NORAD participation in Cooperatives international consultation [London] co-sponsorship of Oil & Gas Seminar in Gabon, Forum experts on corporate governance and corruption Norfund through EDFI network Norwegian Petroleum Fund [Norges Bank] participation in international consultation on corruption [Paris] regularly engage with Forum across spectrum of issues, e.g. SWF Private Sector Advisory Group Jan-Olaf Willums (entrepreneur), Ola Peter Gjessing (Norges Bank) Ministry of Trade and Industry assistance with SOE reform in Sub-Saharan Africa, Vietnam

32. Exponential Escalation in our Work

33. Some indicators: FY08 (FY09 to date) • Increasing gender participation • 31% of participants are women • (up from 14% in FY08) • 41% of presenters are women • (up from 24% in FY08) • Continued focus on IDA countries • Overall client satisfaction – avg 90% • Expanding and strengthening global and local partnerships Total PSAG pro bono contribution: $1,028 m (USD210,000) Total PSAG members used: 37 (15) Total external funding mobilized + in-kind “cash” contributions: USD778,000 (USD390,000)

34. What the Forum needs from Norway Continued (and increased?) contribution in FY10 Increased contribution and multi-year commitment in Phase 3 (FY11–13) Provision of Norwegian technical experts Increased strategic involvement through the Steering Committee Participation in annual Steering Committee meetings during which the Forum’s strategy and budget are reviewed and approved Participation in Steering Committee conference call consultations Source of advice and guidance on policy and tactics

35. THANK YOU Philip Armstrong Global Corporate Governance Forum Telephone +1 202 458 9114 parmstrong@ifc.org www.gcgf.org “Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals…. The aim is to align as nearly as possible the interests of individuals, corporations and society.” Sir Adrian Cadbury Corporate Governance Overview, 1999 [World Bank Report]