That is why emphasis on good corporate governance regimes cannot be underscored more as it creates an attractive investment climate necessary to maintain investors’ confidence, resulting in positive impact on the share price and creating possibilities for raising low cost Capital. It is imperative that we develop and implement good governance practices in order to provide impetus to economic growth.
Instead, it happened rather organically as a result of market forces in an open system. China has been gradually moving in this direction, but the process of opening up has its challenges. Two of these are worth pointing out. The first is managing the volatility in capital flows that can be associated with a more open capital account.