Paris, 29 February - Investors and lenders are using their financial muscle to demand high standards of corporate governance in what has become a market-based global movement against corruption, Ira Millstein, a leading business expert in this field asserted today.

Speaking at a conference of business and government experts at the International Chamber of Commerce, Mr Millstein said the movement was no longer being driven mainly by public policy makers, academics or consultants.

"We are seeing real evidence that confirms that investors and lenders have gotten the message and are using their capital to demand good governance."

ICC called the conference to examine the implications for business of the OECD Principles of Corporate Governance and the OECD Anti-Bribery Convention that came into force in February 1999.

Mr Millstein said that in making decisions whether to invest in a particular company or region, capital providers are now more intently considering such factors as adequacy of disclosure, minority shareholder rights, board structure and process, as well as corruption, cronyism and bribery.

The American lawyer said that a joint OECD/World Bank investor task force with investors representing over $3 trillion of assets concluded at its first meeting that organizations that create emerging market indexes should consider corporate governance as a part of their index.

Another group, the Russell 20-20 of 20 major pension funds and 20 major money managers, was selecting countries to study and evaluate on issues of governance among other matters.

"These investors will be heard… Because of their sheer size, these funds need a balanced porfolio and must diversify their investments - which mea ns investing in a wide variety of securities - both domestic and international."

Mr Millstein is a senior partner of Weil, Gotshal and Manges LLP, where he practises in the areas of antitrust, government regulation, corporate law and corporate governance. He is Chairman of the Joint OECD-World Bank Private Sector Advisory Group on Corporate Governance.