2017 Annual Report

Welcome

Democracy is a unique form of government which provides the long-term conditions that protect the rights and freedoms of all citizens, ensures that governments can be successful if they’re accountable for their performance, and encourages all citizens, and especially the business community, to participate in the political process. However, democracy can be untidy and often misunderstood. Although it is intended to encourage compromise through social and political give- and- take, it is vulnerable to governance gridlock or one-party capture – both of which, in different ways, diminish or distort governmental effectiveness and individual liberty. Consequently, democracy must be nurtured, and it certainly should not be taken for granted.

Over the last several years we’ve seen the rise of “illiberal democracies” and the simultaneous growth of the dangerous misperception that democracy doesn’t work, that market economies are failing, and that violent extremism is an acceptable path to a better social condition. When we look more closely at this phenomenon we discover that the real villains are standing right before us: weak governance and anemic economies. And, the causes of these conditions are clear, proven, and known to nearly everyone. They include corruption, flawed elections, limited educational opportunities, misguided regulation and a reliance upon fake economic solutions, all of which lead directly to a growing inequality between the rich and poor, men and women, and different ethnic and religious groups and geographic regions.

Although it is widely recognized that market capitalism and global trade have substantially reduced worldwide poverty, hunger, infant mortality and more, too many citizens believe that new economic and other opportunities are not being shared equitably and the benefits are only for a few. Worse still, these conditions – real and mis-perceived – are all-too-frequently addressed through violence and social upheaval . . . which literally and figuratively is the smoking gun of democratic deterioration.

So, how do we avoid this unintended consequence of the most magnificent form of government ever conceived? We begin by reminding ourselves that the secret to a successful society is a strong relationship between business, government, and civil society – what is known as democratic governance. Not one of these segments of society alone can create a country that is both economically healthy and socially stable. Government, business, and civil society are co-dependent; they need each other in the same way that sick patients need a mix of well-trained physicians, effective medications, and a willingness to follow a doctors’ advice.

Because the private sector and civil society have answers to problems that governments are trying to solve, CIPE actively supports local business associations, think tanks and other non-profit partners and urges them to work as closely with government as possible. We do not
build roads or stadiums or provide free medicine or low-cost loans. We bring the ingenuity and innovations of the global business community. We introduce lessons learned from countries all over the world. We foster solutions to problems that cripple societies everywhere: inadequate governance, inequality, corruption, and failed economic models.

The men and women of CIPE are storm chasers who every day, all over the world, step into the vortex of political and economic upheaval with the single objective to help societies deliver a desirable quality of life for all citizens. We learned long ago that sustainable prosperity is the only real antidote for extremism, underdevelopment, and social discontent, and that prosperity can only be realized by countries that embrace democratic governance and free market capitalism. None of this is easy, but it’s worth the effort, because we all have an obligation to make things better.