Enhancing Critical Linkages to Achieve Good Financial Governance Silvina G. VatnickThe World Bank

International Conference on Financing for DevelopmentTuesday, March 15, 2005

Hong Kong

Financial Governance is the way in which authorityis exercised in the management of financial resources of an organization, a financial system or government.

What is Financial Governance?

Transparency

Accountability

IndependenceAccounting & Reporting

Standards

Valuation

Information Flows

IntegrityInstitution

Financial Governance

Challenges

•Awareness and Demand

•Incentives/Disincentives

•Legal/Regulatory Infrastructure

•Implementation Framework

Private Sector

Government

DonorsCivil 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.