Brazil leads emerging countries in corporate governance
O Estado de S. Paulo
Some of the main investors in the world elected Brazil as the developing country with the best corporate governance. Corporate governance is a set of processes, policies and laws that govern how a company is managed. The country received 71% of the votes from an audience with nearly 350 investors gathered in Toronto (Canada) yesterday, in a panel of the annual meeting of the International Corporate Governance Network (ICGN). The other votes went for China, with 15%; India, with 9%; and South Korea, with 5%. The ICGN has 480 members in 45 countries. The investors affiliated to the entity manage nearly US$ 9.5 trillion. Among the members, for instance, is the CalPERS (Pension Fund of the California Public Employees' Retirement System). It is the largest pension fund in the world, with US$ 55.2 billion in investments in 2009.
"Such result shows the investors are feeling more secure in Brazil than in other countries", said José Luiz Osório, former President of Brazilian Securities and Exchange Commission (CVM) and partner of Jardim Botânico Investimentos. Osório took part in the panel as a speaker, representing Brazil. For the partner of the consulting Better Governance and member of the council of the ICGN, Sandra Guerra, the result of the poll shows the leadership of Brazil among the emerging countries is "overwhelming" when it comes to corporate governance. "But we have to improve more, because the competition for capital has grown". Specialists attribute the improvement of the perception of investors to the new regulations of the CVM, to the establishment of the New Market, and the reforms made by the Bovespa/BM&F. The macroeconomic conditions have also improved and Brazil received the investment grade from the rating agencies. Yesterday, the ICGN chose Rio de Janeiro to host the annual meeting in 2012. The city has already received it in 2004. "It will allow investors to know the country better", said Sandra Guerra.