On behalf of the Governance Thematic Group of the of the Asian Development Bank (ADB), I would like to congratulate the Law and Policy Reform Program of the Office of the General Counsel and the London School of Economics for this timely and important publication.

Governance matters for sustainable, inclusive, and resilient development. As early as 1995, ADB recognized this and became the first multilateral development bank to adopt a Governance Policy to help enhance governance quality in its member countries. Good governance has since then been established as one of the three pillars of ADB’s poverty reduction strategy. Its absence, or weakness, hinders the delivery of public services, promotes corruption, and inhibits economic development.a Many ADB developing member countries (DMCs) still face governance issues—poor public services, weak government institutions and capacity, and corruption.b As emphasized in ADB’s Strategy 2030, the region needs governance and institutional reforms to sustain development momentum and ensure that the benefits of growth are equitably and widely shared (footnote 2).

Corporate governance is a theme which cuts across ADB’s operations. Good corporate governance,both in the private and public sectors, can help foster long-term sustainable growth. ADB assists countries in bringing corporate governance practices to government institutions, including public service providers, regulatory bodies, and state-owned enterprises (SOEs). Over the years, ADB’s work in its DMCs spanned different projects with corporate governance aspects: (i) strengthening overall corporate governance and regulatory frameworks, (ii) reforming capital markets and improving listing requirements, (iii) reorganizing and corporatizing entities, (iv) rationalizing public enterprises, and (v) enhancing the capability of governments to control for corruption.