The OECD Principles of Corporate Governance in Emerging Markets: a successful example of networked governance?

The contribution of Mathias Siems and Oscar Alvarez-Macotela, The OECD Principles of Corporate Governance in Emerging Markets: A Successful Example of Networked Governance?, discusses whether the approach of the OECD Principles of Corporate Governance, predominantly aimed at the law-makers and firms of emerging markets, can be regarded as a success. While features of networked governance are clearly visible in the drafting and operation of the Principles, the practical effectiveness may be hindered by the lack of well-functioning local institutions. Moreover, while appreciating that the OECD has engaged in activities such as regional roundtables in order to take account of the local context, the Principles themselves are based on the corporate governance model of the OECD member countries not perfectly suitable for emerging markets. Recent events also point towards scepticism of whether adoption of the Principles can be seen as an effective way to prevent future financial crises.