Enhancing Critical Linkages to Achieve Good Financial Governance Silvina G. Vatnick The World Bank International Conference on Financing for Development Tuesday, March 15, 2005 Hong Kong
Financial Governance is the way in which authority is exercised in the management of financial resources of an organization, a financial system or government. What is Financial Governance? Financial Governance InstitutionIntegrity Information Flows Valuation Accounting & Reporting Standards IndependenceAccountabilityTransparency
Challenges Awareness and Demand Incentives/Disincentives Legal/Regulatory Infrastructure Implementation Framework Private Sector Government Donors Civil Society
How to obtain stronger and sustainable financial governance as an institution? Private Sector Government MDAs Civil Society Organizations Other Strategic Partners The Critical Role of Civil Society Organizations
Civil Society Organizations Nonpartisan Independent Non-advocacy Bottom-up approach Local/regional Promote best practices
An example: CEF Argentina Structure: The CEF is legally organized as a foundation and, as such, it is a nonprofit entity. The CEF has a pluralistic administrative structure that is not affiliated with any political party. Mission: contribute to the analysis, debate and subsequent formulation of public policies related to financial sector issues. At first, the focus will be on Argentina, but over time, the CEF plans to address financial issues at the regional level Goals: On a foundation of solid technical grounds, the CEF aims to assist the public and private sectors in the following fields: deepening of financial intermediation. strengthening of institutions and their links with the world. adopting best international practices in the context of the domestic environment. promoting more effective financial sector regulation and supervision. modernizing legislation in this sector. improving the standards of transparency. encouraging financial innovation.