AATDA AL Work on Corporate Governance Extended

The AATDA AL has been actively engaged in activities related to improving corporate governance for the past year. Activities have included a series of roundtables related to policy formation and information sharing; training in corporate governance for selected participants; and a corresponding public awareness program, which has been extended until January 31.

This program seeks to introduce corporate governance as an essential component of reform in Albania. A basic assumption of the effort is that effective corporate management, along with improved transparency, law enforcement, business ethics, and easy access to credit, will improve business investment and political stability.

Business Roundtables.  Two Business Roundtables, the third and fourth of the project, were conducted this summer. The topic of the Third Roundtable was “Improving Access to Credit and Capital.” Participants included representatives of financial institutions, business organizations and joint-stock companies. Thirty participants discussed issues, and were provided presentations on the Tirana Stock Exchange, the organization of capital markets in South East Europe, and two basic laws of importance in Albania, the Company Law and Security Law.

The Fourth Roundtable featured a presentation by Mr. Gafur Luga, Executive Director of AATDA AL, on The Results of the AATDA Corporate Governance Survey conducted earlier in the year by the project staff.  The purpose of the survey, which included 120 companies and stakeholder institutions/organizations, was to assess the current status of corporate governance using the methodology and recommendations of the OECD White Paper on Corporate Governance in Southeastern Europe. The presentation was made to representatives of Albanian companies that were formed from the mass privatization process, state joint-stock companies, and other newly formed private concerns. Mr. Luga reviewed a number of key findings from this survey and summarized the feedback and outcomes from the discussions from previous corporate governance roundtables organized by AATDA-AL as part of this project.

Training Seminar.  In July, a training seminar on corporate governance issues was held for key corporate governance stakeholders, including 30 managers, shareholders, board members and business organization representatives.  The training session incorporated many of the same things developed during the roundtable sessions.

Public Advocacy.  Over the past year, AATDA AL has continued an enhanced program of public advocacy on corporate governance issues by conducting meetings with individual businesses, private sector leaders, business associations, chambers of commerce and other institutions, including the American Chamber of Commerce, Tirana Chamber of Commerce and Industry, Association of Albanian Builders, Association of Petroleum Traders and the Union of Bankers of Albania.  It has also cooperated with fellow organizations that comprise the Albanian Corporate Governance Forum in joint activities sponsored by GTZ (German development program) and IFC (World Bank).

Promotion Activities.  AATDA AL has promoted the activities of the project to broader audiences through mass media outlets such as the “Monitor,” Albania’s sole publication devoted to business and economic issues; newspapers, radio and television, resulting in numerous published articles and TV/radio reports. AATDA AL has also issued two publications: a corporate governance guide, and a research report on capital markets in Albania. Other promotion efforts include two corporate governance publications:  "Studies on Capital and Securities Markets” and “ Report on the Corporate Governance in Albania."

In general, these activities have served to promote the need for Corporate Governance improvements as a major part of business reform in Albania.

Still to come.  AATDA AL will be implementing the series of education seminars on corporate governance issues later this fall, according to an action plan agreed with the private sector organizations, IFC Project and the Albanian Corporate Governance Forum. In addition, two publications” Reference Guide on Corporate Governance” and “Corporate Governance in Practice” are anticipated.