Independence is essential if boards are to function efficiently and effectively. They must be autonomous and independent in their conduct of duties and be free from political interference. Political interference strongly impedes board professionalism. Without a transparent and well-defined selection process, board members are likely to be chosen on the basis of political allegiance rather than business acumen. Many OECD countries legally specify clear qualification requirements. Australia, New Zealand and Sweden have put in place a structured, skill-based nomination process, making sure that competency is the ultimate selection criterion. Although in some countries the law provides for competitive selection of board members, pressures to make the process political rather than merit-based are likely to remain, thereby compromising board independence. Without clarity and discipline, the power of boards is weakened from both ends. Management loyal to the sector ministry may be unduly quick to bypass the board. Alternatively, a sector ministry may want to deal directly with the management or duplicate the functions of the board. To avoid such temptations,
