Improving Global Frameworks for Corporate Regulation: An Australian Perspective

Through most of the latter half of the 20th century, forums for economic cooperation among nations were primarily focused on removing artificial barriers to free trade and investment across borders. With the growing recognition that the opportunities created by globalisation, particularly liberalisation of capital markets, carry significant risk, the agenda of organisations pursuing international economic development is increasingly directed at improving domestic standards of business regulation in areas such as corporate governance, insolvency frameworks and financial systems. This article describes some efforts to improve the global corporate regulatory landscape in which the Australian Treasury has been involved, and makes some observations about the merit of engaging in such activities in light of Australia's international trade and investment relationships. It concludes that although there are significant challenges ahead, the potential benefits from improving corporate regulatory systems warrant Australia's ongoing involvement.