Weekly Program Highlights
Indonesia – The Institute for the Study and Advancement of Business Ethics (Lspeu) continued to prepare for its workshop that will be held in Palembang April 17-19. The workshop will cover the 2009 election system (the laws on which are due to pass shortly), optimizing the supervisory function of Parliament with regard to budgeting, and effective representation.
Philippines – The Institute of Corporate Directors (ICD) presented Cebu Holdings, Inc. (CHI)’s score in the 2007 Corporate Governance Scorecard Project to the company’s management team. CHI is a listed property company based and operating in the southern Philippines. Though CHI initially scored poorly compared to the average of companies in the Philippines and the 22 other companies in the property sector, ICD sensed its commitment to improve. Successful compliance with ICD’s recommendations will dramatically raise its score over the next year. CHI is one of the first local companies to install Balanced Scorecard governance mechanisms in its operations.
Background and Overview
Asian countries present an interesting mixture of political and economic
systems, from established democracies in Japan and South Korea to precariously
balanced market systems in Vietnam and China to corrupt business sectors in the
Philippines and Indonesia. As viable democracies continue to grow throughout the
Asian region, their development is often marred by civil strife, natural disasters,
and fraudulent elections. As the democracies tentatively move forward, economic
change becomes an increasingly important goal for Asia.
In the past year, Asian governments and economies have moved strongly towards a
liberal, free market environment. Such movement included significant changes in
a number of countries, including: a relaxation of strict government controls on
media and free speech in Vietnam; a growing understanding of the importance of
good governance practices at all levels of society in the fight against government
corruption in the Philippines; and, perhaps most significantly, the amending of
China’s constitution to include recognition of private property ownership and human
rights. CIPE programs in Asia identify areas of need and attack the problems at their roots.
CIPE's priorities in Asia vary widely in both democratic and economic development
and present a variety of challenges for partners in the field. In transition economies,
such as China and Vietnam, CIPE will continue to support economic reform initiatives
and efforts to strengthen democratic values. Across the region, especially in Southeast
Asia, much work still remains to address the long-standing problems of corruption,
cronyism, and lack of transparency and accountability in governance. Also, corporate
governance is likely to remain as one of the key issues of concern for business leaders
and policymakers across the region.
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