National Background vs. Our Scope
Corporate governance remains one of the most important areas of concern in the state sector of the Romanian economy and one of the most important areas of interest and development in the private sector.
Especially during the last three years, a lot of pressure has been exercised by international financial institutions, (the IMF delegation in Romania and the World Bank), as well as by the European Union, in order to determine the Romanian authorities to introduce legislation related to good corporate governance practices, especially due to the enormous losses incurred by the country in the sector of state-owned enterprises.
Although such legislation has been introduced, in the form of a Government Ordinance (Ordinance No. 119 / 2012), the expected effects of this new legislation are still not visible, to this day.
The chief reasons for this outcome are – undoubtedly - political (therefore they fall outside of our scope). Nevertheless, what remains of very high interest to us is the point of view which we have expressed publicly, even before this legislation was introduced: even with the right legislation in place, things are not likely to improve dramatically until we will have the capability to ‘produce’ genuine, certified board (non-executive) directors which come from a private business background (i.e. which have a clear track-record of positive business results).
We believe this to be a must-have requirement because such professionals cannot be ‘produced’ from candidates which do not have the relevant business experience (i.e. proven track-record) in the private sector economy.
Therefore, the only credible initiative possible is one that will be initiated by the private sector itself. Nevertheless, if and when such an initiative will become reality, the likelihood of private sector executives getting involved in politics will remain very small, as long as the de-facto corporate governance practices employed by the political administration system will remain the same. However, we believe that such a likelihood would be completely reversed, if we take into consideration the unsatisfied demand for proper corporate governance structures in the private sector.
In other words, if there is ever to exist a proper pool of candidates for genuine future Chartered Directors in Romania, this pool of candidates can only be created within the private sector, by attracting the experienced executives towards a potential non-executive certification.
Hence, our interest for this project.