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    July 2008
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  • “Education Reform in Bhutan: Meeting the Employment Challenge”

    Bhutan, a small country wedged between China and India, has made great strides over the past 45 years toward transforming itself from an isolated kingdom into a fledgling modern democracy. The country has progressed in terms of economic and political development, but one significant area still lagging behind is the education system.

    In his Feature Service article, Kinley Rinchen, Planning Officer in the Office of the Vice Chancellor at the Royal University of Bhutan and an honorable mention winner in CIPE’s youth essay competition, traces the development of Bhutan’s education system and analyzes its current challenges. He emphasizes that more reforms are necessary to make the country’s education system able to better meet the needs of students and employers. As the Bhutanese economy grows, it needs well-educated and skilled labor in order to make this growth sustainable.

    “Education Reform in Bhutan: Meeting the Employment Challenge” was entered in the “Educational Reform and Employment” category and notes that due to inadequate education, many of Bhutan’s graduates have only limited skills that are insufficient for finding suitable employment in a modern marketplace. Instead of striving to acquire the necessary private sector skills, many young people prefer to wait for government employment. In practice, however, that translates into prolonged unemployment since the public sector cannot possibly accommodate all job seekers.

    Appropriate education system and curriculum reforms could change that. If young people are equipped with critical thinking, creativity, innovation, and leadership skills in the course of their education, they can succeed in the job market.

    Article at a Glance

    • Bhutan’s current education system does not meet the needs of students and employers, only contributing to growing youth unemployment.
    • Most Bhutanese students tend to see education as a way to obtain jobs in the public sector, which cannot accommodate them all.
    • School curricula should emphasize more skills-based training as well as critical thinking, creativity, innovation, communication, and leadership skills sought after by private sector employers.

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    posted by Anna Nadgrodkiewicz on July 18th, 2008
    Posted in Asia, Feature Service articles | No Comments »


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    Responsiveness and accountability must go hand in hand

    As China prepares to host the Olympics next month, the communist leadership tries to do everything in its power to cultivate the image of an orderly and well-governed nation it wants the world to see. But the outbursts of anger directed at public officials continue. In two recent incidents, more than 30,000 people rioted in Guizhou province over an alleged cover-up of a teenage girls’ death, and after a migrant worker was allegedly beaten by the police in Zhejiang province, hundreds of other workers attacked a police local station.

    While the government’s response to social discontent so far has mostly consisted of heavy-handed practices, Chinese leaders are trying to project a new approach. Recently, the government has told local leaders to be on alert to public grievances and find ways to resolve them.

      The order is the most recent in a series of calls reflecting the government’s apparent concern over rising social inequality, rampant corruption and the weak legal system. The latest order to resolve conflicts made no mention of specific instructions on how to do so and appeared to follow an all too common trend whereby the government strives to appear responsive without exposing the party to direct criticism or making officials more accountable to the public.

    Therein lies the government’s problem. By definition, it cannot be more responsive to its people without greater transparency and accountability. If the lack of transparency continues to fuel covering up for blunders and negligence of public officials, how can truly improved responsiveness be achieved? If the lack of accountability makes mass protests the only available tool for exposing corruption and abuse, how can the Chinese people possibly feel that the government takes responsiveness seriously?

    The state-run China Daily paper said that the latest “unprecedented move … shows the central leadership is paying more attention to public complaints.” But is it really? Calling for greater responsiveness that is not accompanied by greater transparency or accountability can’t be much more than a short-lived publicity stunt.

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    posted by Anna Nadgrodkiewicz on July 17th, 2008
    Posted in Asia | No Comments »


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    A Chocolate Double Helix

    Several of us from CIPE are in Ghana this week, so in their honor I dedicate my first post to chocolate. Seventy percent of the world’s cocoa comes from Western Africa, according to the World Cocoa Foundation, and Ghana is second only to Cote d’Ivoire among cocoa exporting countries. Cocoa accounts for roughly a third of Ghana’s GDP, and like most countries in Africa, Ghana’s 23 million people are largely rural (56 percent of its labor force).

    Ninety-nine percent of Ghana’s cocoa farms are between two and three hectares - about the size of three football fields. Farmers typically intercrop cocoa with other goods such as corn, spices or plantains to help provide shade for young cocoa trees and food for the farmer’s family. Harvesting is labor-intensive; pods are cut, split open and pulp removed by hand, because no machines have been developed that can handle all these tasks without damaging too many of the fragile cocoa beans inside the pods. Afterward, the beans ferment surrounded by pulp while wrapped in leaves for about a week and then lay out in the sun for another five to 12 days to dry.

    The annual global market value of cocoa is $5.1 billion. Cocoa is nearly impossible to grow outside the tropics, making it a major export for the large number of developing economies in that region of the globe. It’s their comparative advantage, so when it comes to the private sector in Africa, rural development is crucial. That’s why it’s good news that a project has been announced to map out the DNA of the cacao tree, to help improve yields and pest resistance, among other goals. Best of all, the information will be in the public domain, as it is compiled. That’s good news for Ghana’s development plans, and chocolate lovers.

    But in order for this scientific advance to be translated into on-the-ground improvements in cocoa farming, active involvement of the local private sector is essential. Technological progress is one of the key elements of any country’s sustained economic growth and development. That is why it is important that Ghana’s farmers are able to take advantage of this new research and apply it to their production. Equally important is that technological progress should be accompanied by policy and institutional improvements that make it easier for farm businesses to function. When technology and markets work in tandem, the outcomes – like in the case of enhanced cocoa bean production – can be really sweet.

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    posted by Oscar Abello on July 16th, 2008
    Posted in Africa | 1 Comment »


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    The test of Mongolian democracy

    Since 1990, Mongolia has been widely held as an example of a developing country that, despite the odds, managed to accomplish a peaceful transition to democracy after seven decades of communist one-party rule. But is Mongolia’s democratic transition complete? The recent unrest following an election dispute calls the progress made into question and warrants a closer look at the health of Mongolian democracy.

    After the losing party’s accusations of electoral fraud – disputed by international election observers – scores of rioters (many intoxicated) attacked the headquarters of the winning party and the neighboring national art gallery. The ensuing mayhem resulted in five deaths, hundreds of arrests, and more than 1,000 priceless pieces of art destroyed or missing. But to many Mongolians the government’s reaction was as disturbing as the riots themselves: declaring a four-day state of emergency and shutting down independent TV and radio broadcasting went against the core principles of the country’s democratic transition.

    What happened? Although a political conflict turned out to be the igniting spark, the deeper reason for this show of popular discontent is economic and has to do with the quality of governance. The NYT comments,

      Though many Mongolians say the riot was a criminal act, the anger most likely bubbled up from economic frustrations. Inflation has soared to 26 percent, Mongolians complain about corruption, and officials disagree on control of mining rights to the country’s immense mineral wealth. (…) “Poverty and corruption are eating away at our democracy,” said Tsedevdamba Oyungerel, a Stanford-educated politician who ran for Parliament but lost.

    Read the rest of this entry »

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    posted by Anna Nadgrodkiewicz on July 15th, 2008
    Posted in Eurasia | No Comments »


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    New voices on CIPE’s YouTube channel

    Two new videos featuring CIPE partners have been added to our YouTube channel. The first one is an interview with Selima Ahmad, President of the Bangladesh Women’s Chamber of Commerce and Industry (BWCCI). In this interview, she talks about the creation of the Chamber and the importance of its work for empowering Bangladeshi women entrepreneurs and strengthening democratic institutions.

    You need to a flashplayer enabled browser to view this YouTube video

    The second video features Marcela Prieto, Executive Director for the Instituto de Ciencia Politica (ICP) in Colombia and editor of Perspectiva Magazine. She talks about the meaning of democracy and its necessary elements beyond elections. She also addresses current challenges to democracy in Latin America and around the world and the link between democratic and market-oriented reforms.

    You need to a flashplayer enabled browser to view this YouTube video

    You can view this and other CIPE videos here: http://www.youtube.com/user/cipeforum

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    posted by Anna Nadgrodkiewicz on July 14th, 2008
    Posted in Global | No Comments »


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    What Capitalism?

    Still wonder how Russian oligarchs made their money? Well, now that Roman Abramovich is talking in a court of law there should be little doubts whether accusations of corruption and cronyism are true. More here on how the ability to work with criminal groups and access the government were the defining features of Russia’s big business in the 1990s, not innovation, creativity, and entrepreneurship.

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    posted by Aleksandr Shkolnikov on July 11th, 2008
    Posted in Global | No Comments »


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    Moving Bureaucracy

    A story in the current Economist captures so much that’s maddening about bureaucratic hassles facing small business. In one story from Poland (which, it must be said, has made much progress in many areas, though clearly still more to be done) a small business owner wishing to change location must go through a minimum of 7 steps involving as many government offices, multiple forms at each, and several weeks of processing between each step. None of it simple, none automated, none online.

    Larger businesses, of course, go through the same hassles. They typically have people to deal with it, though, but then that cost is passed along in the price of their goods. Small businesses don’t have such staff, so their time spent on these bureaucratic excesses directly takes away from time spent on basic business issues such as customer care and product manufacturing — directly affecting their growth potential and job offerings.

    There are many ways to positively change this scenario. First and foremost, “streamlining” means taking out unnecessary steps. Why must the business contract with its accountant be formally amended and notarized? A simple notification or forwarding address suffices in other places. After a true streamlining minimizes the steps to those most needed, then determine how those steps can be combined, for example by having a single notification for multiple districts. Finally, simplify the access that citizens have to accomplish the needed steps. Oftentimes, this means moving to an online system or at least a single window system. Just skipping to online processes without the streamlining, however, continues the confusion and doesn’t represent a major step forward.

    If it’s all so simple, why isn’t it done more often? As usual, look for the incentives and disincentives for change. Bureaucrats rarely have any incentive to cede what is perceived as their sphere of control. Notaries love processes that require lots of stamps. As do the stampmakers, of course. Figuring out who sees themselves as giving up something in the change is just as important as understanding where the drive for change comes from. Together, these help plot the course for successfully advocating real systemic change. It may seem to be about business and economics, but ultimately it’s about the politics of getting things done.

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    posted by Jean Rogers on July 10th, 2008
    Posted in Global | No Comments »


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    The Business of Raiding

    In the 1990s, Russian companies would - at best - ignore calls for combating corruption; at worst - they would reward and facilitate it.  They had their reasons - mainly that when the Soviet Union collapsed corruption became a way to get things done, to keep deals moving while state institutions lay in ruins.  But as corruption settled in, it became more of a problem than a solution.

    Enter the new hybrid of Russian corruption - corporate raiding.  To simplify, it is a way for people with connections to state institutions to take ownership of companies for a fraction of their real price; or some times for free.

    How the process works is explained wonderfully in this article by the Moscow Times.  Importantly, the author notes how raiding continues to proliferate despite presidential calls to stop:

    Since taking office, Medvedev has ordered the introduction of anti-corruption measures to protect small and medium-size businesses, and at the end of June, Kremlin chief of staff Sergei Naryshkin submitted a plan for tackling the problem to the president.

    Despite the talk and early measures in the anti-corruption campaign, raiders appear to be continuing their criminal activities undisturbed, especially in the regions, where businesses are more at the mercy of the local authorities than in Moscow.

    Another proof that corruption is not a problem of individuals - its a systematic problem.  Calls to stop - even at the highest levels of government - will be largely ineffective without comprehensive measures to reform the institutional climate within which corruption takes place.  In other words, if opportunities are there for people to use their political influence to take over businesses, they will use those opportunities regardless of what the president says.

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    posted by Aleksandr Shkolnikov on July 9th, 2008
    Posted in Eurasia | No Comments »


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    Debating the Future of Reform in MENA

    With inflation and political backtracking competing with trends of economic growth in the Middle East and North Africa, the link between economic and political reform has increasingly come under scrutiny in the region.  It was a prevailing theme in the recent roundtable that CIPE held for key partners from Algeria, Egypt, Iraq, Jordan, Lebanon, Morocco, Tunisia, Turkey, and Yemen in Hammamet, Tunisia.

    Leading private sector organizations from around the region shared successful reform approaches, focusing on entrepreneurship, advocacy, public-private dialogue, and corporate governance.  Many of these programs underscore the need for institutions that promote better economic policies and expand growth dividends across a broader segment of society. 

    It was interesting to see partners not only share their experiences but also discuss broader questions of democracy and economic challenges confronting the region.  It was especially striking to be able to openly discuss democratic values and reform in the highly regulated environment of Tunisia, highlighting again how economic growth concerns provide a unique opportunity to engage civil society and the public sector on larger questions of political and institutional change. Read the rest of this entry »

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    posted by Shirin Sahani on July 8th, 2008
    Posted in Middle East and North Africa | No Comments »


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    Where oil wealth rises, democracy declines

    Freedom House has just released the country reports from the latest edition of its annual Freedom in the World survey, as well as Nations in Transit report – a comprehensive annual study of reform in the former Communist states of Europe and Eurasia.

    According to the findings, the year 2007 was marked by a notable setback for global freedom and one of the regions where it was most pronounced is former Soviet Union. One of the key findings of the Nations in Transit report is that as oil and natural gas revenues surge in Russia and Central Asia, democratic institutions are more and more in trouble. The erosion of democratic governance has occurred not just in electoral practices, but also in the areas of civil society, independent media, and judicial independence.

    The reason for that decline is growing reliance on natural resource exports. It erodes the institutions of democratic governance because massive inflows of export revenue go directly into the state’s coffers with little or no accountability and oversight. Not surprisingly, that generates corruption and cronyism undermining both democratic governance and free markets. Freedom House Director of Studies, Christopher Walker, comments:

      “The resource curse is taking root. The growing authoritarianism in oil and natural gas-rich countries such as Russia, Kazakhstan and Azerbaijan is severely restricting the ability of democratic institutions to operate.”

    This negative correlation between petroleum wealth and democracy is certainly not new, with the oil-rich and non-democratic Middle East being the prime example. But rising prices of oil and gas on the global markets add to the problem and allow authoritarian rule to thrive – or tighten – where the governments are in a possession of sufficient natural wealth to rest their power upon it.

    As oil and gas prices continue to climb, all three post-Soviet resource-rich countries mentioned earlier received a “downward trend” assessment of their political rights and civil liberties. This was also the case in Freedom House’s rating a year ago and unfortunately this year may not be the last one when such trends continue.

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    posted by Anna Nadgrodkiewicz on July 2nd, 2008
    Posted in Eurasia, Global | No Comments »


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    Does democracy help or hurt economic growth?

    The question of whether democracy helps or hinders economic growth is a hotly debated one today. In a recent Foreign Policy article, Professor Yasheng Huang of MIT addresses this issue in the Asian context. The most obvious case study that comes to mind is the China-India comparison that supposedly gives the former an authoritarian edge of fast economic growth. Many believe that…

      Democracies are peaceful, representative—and terrible at boosting an economy. Or at least that’s the conventional wisdom in Asia, where for years growth in India’s sprawling democracy has been humbled by China’s efficient, state-led boom. But India’s newfound economic success flips that notion on its head. Could it be that democracy is good for growth after all? If so, China better watch its back.

    Indeed, for decades India had only 2 to 3 percent annual “Hindu rate” of growth. But that has changed. Once the democratic Indian government embarked upon implementing market-oriented reforms, the country achieved “East Asian rate” of 8 to 9 percent a year. What has changed? Above all, India was successful in improving governance and raising the quality of its democracy. And while China remains authoritarian, its economic success to a large degree is similarly attributable to liberalizing political and economic reforms – partial and incomplete as they may be. Professor Huang explains:

      From an economic perspective, it is not the static state of a political system that matters, but how it has evolved. The growth India enjoys today sped up in the 1990s as the country privatized TV stations, introduced political decentralization, and improved governance. And contrary to the conventional wisdom, India stagnated historically not because it was a democracy, but because, in the 1970s and 1980s, it was less democratic than it appeared.

      The cumulative effect of [Indira] Gandhi’s actions [as prime minister during much of the period from 1966 to 1984] is that the Indian political system, though still retaining some essential features of a democracy, became unaccountable, corrupt, and unhinged from the normal bench marks voters use to assess their leaders. (…) The economic consequences of this period of illiberalism were long lasting.

    Read the rest of this entry »

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    posted by Anna Nadgrodkiewicz on June 30th, 2008
    Posted in Asia, Global | No Comments »


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    Governance Matters

    The new report Governance Matters VII: Governance Indicators for 1996-2007, authored by Daniel Kaufmann, Aart Kraay, and Massimo Mastruzzi, has just been released. It contains the updated and expanded set of Worldwide Governance Indicators (WGI) for 212 countries and territories. The current publication is the seventh such report in an ongoing research series and it measures six dimensions of governance: Voice and Accountability, Political Stability and Absence of Violence/Terrorism, Government Effectiveness, Regulatory Quality, Rule of Law, and Control of Corruption.

    The authors define governance as:

      …the traditions and institutions by which authority in a country is exercised. This includes the process by which governments are selected, monitored and replaced; the capacity of the government to effectively formulate and implement sound policies; and the respect of citizens and the state for the institutions that govern economic and social interactions among them.

    Key highlights of this new study demonstrate:

    • The power of measuring governance, drawing on the reports of thousands of stakeholders worldwide
    • That good governance is not the sole preserve of rich countries, and, conversely, that some developed countries also exhibit governance challenges
    • That even in the relatively short period of less than a decade reforming countries in many corners of the world do make progress in improving governance and curbing corruption

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    posted by Anna Nadgrodkiewicz on June 26th, 2008
    Posted in Global | No Comments »


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    Women Leadership in Pakistan – A Change in the Making

    The challenges to increasing female participation in mainstream economic activity, and the creation of leadership within women entrepreneurs, are manifold. These challenges range from social taboos; conservative lobbies; lack of access to education, information, and finance to discriminatory behaviors by male counterparts, severely inhibiting the ability of women to develop leadership skills and to participate in the policymaking process. Yet another complexity is the non-existent gender focused institutions such as women chambers, which generally act as facilitators in networking, mentorship, and learning opportunities.

    In Pakistan, the low literacy rate, especially for girls, is alarming. That is compounded by a high dropout rate from schools. According to the Population Census the current female literacy stands at 36%. Astonishingly, starting at 33% enrolment at the primary school, only 6.59% enroll at the high school level, reducing further to 1.2% at the University Degree level! This reduces the chances of females emerging in the leadership role both in the political structure as well as entrepreneurs and senior executives.

    Pakistan is a country of 160 million people, more than half of the population’s gender is female. It is widely recognized that although female participation in the paid labor force is increasing, it is still at a low level. According to Federal Bureau of Statistics, Pakistan’s labor force survey, only 0.3% employers are female. 

    Nevertheless, Pakistan is slowly developing women leadership. Earlier this year, Dr. Fehmida Mirza of Pakistan People’s Party was elected the first woman speaker of the National Assembly. Recently, Ms. Nasrin Haq became the first woman to head the Karachi Port Trust (KPT) as its chief executive. She is the first civilian as KPT chief in 18 years.

    Moreover, in November 2007 yet another history was written when Pakistan’s premier business association, The Overseas Chamber of Commerce & Industry, appointed its first ever women CEO Unjela Siddiqi. Followed by that, in January 2008, Pakistan Software Houses Association (P@SHA) appointed Jehan Ara as the first paid woman CEO. Notably, Jehan Area was previously elected as President of P@SHA for two consecutive terms.

    Since the beginning of its program in Pakistan, CIPE has been advocating to bring professional and independent CEOs to business associations. This paradigm shift from the male monopoly of running business associations to the appointment of two women CEOs shows a shift in the mind-set. Although bringing the same approach in business associations throughout Pakistan is still a challenge, nevertheless, the positive vibes are now being felt.

    Recognizing the importance of the appointment of women CEOs, CIPE interviewed both ladies to understand what the acceptability was within the membership and how challenging the job has been.  The videos are available on YouTube:

    Unjela Siddiqi - First woman CEO of a business association in Pakistan 
    Jehan Ara - First woman president of a business association in Pakistan

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    posted by Hammad Siddiqui on June 24th, 2008
    Posted in South Asia | No Comments »


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    Senegal’s Generation of Concrete

      Dakar. From the air, this sprawling city looks like a metropolis on the move, a buzzing quadrilateral jutting into the Atlantic. Cars speed along a supple, newly reconstructed four-lane highway that hugs the rugged coastline. Cranes dot the seaside, building luxury hotels and conference centers, as investors from Dubai revamp the city’s port, hoping to transform it into a high-tech regional hub.

      But on the ground the picture shifts. Jobless young men line the new highways, trying to scratch out a living by selling phone cards, cashews and Chinese-made calculators to passers-by. The port is full of imported food that is increasingly out of reach for most Senegalese. Dakar will soon have a glut of five-star hotel rooms, but rising rents have pushed the city’s poor and even middle-class residents into filthy, flood-prone slums.

    A growing sense of malaise is in the air as the benefits of the eye-catching infrastructure investments fail to reach the poor. President Abdoulaye Wade is determined to transform Dakar into West Africa’s mini-Dubai with the stated goal of benefiting young Senegalese he calls the “Generation of Concrete.” But his expensive undertakings have so far failed to truly make it the Generation of Concrete Change. In fact,

      A Gallup survey completed here last year found that only 29 percent of respondents said they had a job, down from 35 percent the previous year. Most telling, 56 percent of those surveyed said they would leave Senegal permanently if they could.

    Senegal needs urgent reforms that could change that, incorporate the country’s vast informal sector into the formal economy, and make the Senegalese political system more responsive to the needs of its citizens, especially those underprivileged ones. Read the rest of this entry »

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    posted by Anna Nadgrodkiewicz on June 19th, 2008
    Posted in Africa | No Comments »


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    Controlling the Media? Tried it Before…

    Belarus has been flying under the radar lately, but reforms are not standing still.  Following a secret ballot, the parliament passed a new legislation in the first reading that will give the goverment greater control over media.   

    Civil society has several issues with the law as its been written up, but primarily it is that the law gives the government the right to shut down a media outlet after the first warning - one mistake and your are out! 

    Others have complained that the law would also apply to online media - and the Internet is the only place in Belarus where alternative voices are heard.  The explanation is simple

    However, Liliya Ananich, first deputy information minister, said in May that her ministry favored a registration requirement for online media outlets, as “there is a problem of disinformation flows” from abroad. According to Ananich, such a problem has been successfully tackled by China, “which has cut off access to its territory for such sites.”

    The law also gives the government a right to punish those media outlets that distribute false information that causes damage to the public.  This is something the government has already addressed in the past (for example by passing a law that includes criminal prosecution of discrediting the country).

    The problem of course is that in a weak rule of law climate who is to say what is a false piece of information and how can you dispute accusations?

    In many emerging markets, new rules to control the media are sometimes well-reasoned, but the implementation of those laws more often than not has a political context (i.e. punishing the opposition rather than ensuring freedom of information).  Figuring out how to beef up voluntary ethical standards within media may be an alternative to restricting laws and regulations.  An alternative that I doubt the government of Belarus will consider…

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    posted by Aleksandr Shkolnikov on June 18th, 2008
    Posted in Eurasia | No Comments »


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    Engaging the Private Sector in Post-Conflict Reconstruction

    I recently had the privilege of being on a panel at the United States Institute of Peace on “Promoting Business and Peace in Conflict-Affected Countries.” Let me share with you the summary points of my presentation there. Although security and humanitarian needs naturally predominate in the early months of reconstruction, it is never too early to start listening to the voices of local businesspeople. The private sector matters because it creates jobs, crosses ethnic and political boundaries, and sustains civil society. Listening to the private sector’s views is essential to building a framework of governance, markets, and sound economic policies that will support development and sustainable peace. Economic solutions that do not incorporate these views will be neglecting both economic needs as well as the governance need for popular feedback and accountability in policymaking.

    My conclusions:

    • Listen to the local business community – give them ownership and accountability.
    • Build the organizational capacity of business associations and think tanks. Treat them as partners and let them learn by doing.
    • Plan for long-term institutional development.
    • Promote dialogue on economic policy to create a market system that works for all segments of society.
    • Foster entrepreneurship to create jobs and opportunity.

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    posted by Kim Bettcher on June 16th, 2008
    Posted in Global | No Comments »


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    Just say ‘Nyet!’ - Corruption in Russia

    In yesterday’s International Herald Tribune, Brook Horowitz (executive director of the Russian office of International Business Leaders Forum) penned a very interesting article  - Just say ‘Nyet!’ - about Russia’s new President Dmitri Medvedev’s first decree as president to to create and chair an anti-corruption committee.  It has caused quite a stir in a country that has been persitently dropping in Transparency International’s Corruption Perception Index.  Horowitz notes:

    Largely unnoticed, many Russian companies are beginning to do something about corruption even before new legislation is put into place. They are starting by getting their own houses in order. They are strengthening corporate governance by creating clearer separation of board and management competencies and responsibilities, introducing International Financial Reporting Standards (IFRS), greater transparency of accounts and disclosure of shareholders, and nominating independent directors to the board.

    CIPE and our partners in the Russian business community have been advocating for these types of reforms for a some time.  The Russian Institute of Directors, for example, has been very active in developing human capital needed to ensure effective boards of directors.  We’ve worked on the other fronts as well.

    Just this past week CIPE Partner the Saratov Region Coalition of Business Associations scored a major victory in the fight against corruption. All 42 municipalities of the Saratov region have adopted the anti-corruption municipal program developed by the Saratov coalition. The Saratov Chamber of Commerce and Industry has helped train experts to analyze municipal legislation for corruption potential. The effort aims to reduce corruption throughout the region by the elimination of “holes” in legislative and statutory acts that encouraged the growth of corruption. The municipal programs are a result of an October 2007 CIPE workshop that trained legal experts in the methodology of examining statutory acts.

    It’s great to see that our work at the regional level is trickling up to the federal government.  It will take time to see how effectively these reforms are followed, but let’s hope for the best!  Click here to learn more about the work CIPE is doing in Russia.

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    posted by Dan O'Maley on June 13th, 2008
    Posted in Eurasia | No Comments »


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    The Power of Democracy

    What is democracy and why is striving toward it important? Carl Gershman, President of the National Endowment for Democracy (NED), answers this question by talking about the challenges and opportunities for democratic development around the world today. He discusses the work of the NED and the importance of supporting democratic reformers wherever they are.

    In many countries, advocating for democracy can still be a very risky endeavor for local reformers. Yet they do not give up and often are willing to risk their lives in the process. That unbreakable human spirit remains at the heart of the power of democracy.

    You can view this and other CIPE videos here: http://www.youtube.com/user/cipeforum

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    posted by Anna Nadgrodkiewicz on June 10th, 2008
    Posted in Global | No Comments »


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    Unlocking Africa’s potential

    How can Africa unlock its economic potential? This was the key question of the recent 18th World Economic Forum on Africa, which took place in Cape Town and was attended by nearly 900 business, government and civil society leaders from 50 countries. Two themes clearly emerged as crucial for realizing the continent’s potential: the need to improve the quality of political leadership and the need to harness the power of the private sector for development.

    Participants agreed that many of the roadblocks to Africa’s development have to do with the tendency of governments to be protectionist, interventionist, and perpetuating over-regulation – often in the name of defending the poor but rarely with the result of improving their lot. Meanwhile, more than 80% of poverty reduction in Africa in the past 30 years is directly attributable to economic growth delivered by the private sector, not governments, and often in spite of harmful policies of those governments.

    In order to capitalize on the opportunities ahead, Africa must address the quality of its political institutions precisely because they have a direct impact on economic institutions. Emphasis must also be placed on education as a necessary precondition for having better future leadership – and policies – as well as more capable and competitive workforce. Forum participants concluded:

      The private sector is poised to play a growing role to help Africa become more competitive and forge international alliances that extend beyond the customary handouts that have long characterized the region’s relationship with rich countries.

    Tony Elumelu, Chief Executive Officer of the United Bank for Africa, Nigeria, added:

      “We need to realize that nobody is going to develop Africa except us. To fix Africa we need partnerships. I would like to call on African businesses to build the readiness needed to compete in the world. Externally people will realize that Africa is a good destination for investment and we need to be prepared.”

    Now the challenge is to translate these great resolutions into action and change on the ground.

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    posted by Anna Nadgrodkiewicz on June 9th, 2008
    Posted in Global | No Comments »


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    Developing a Youth Policy in Pakistan… with the Input of Youth

    What should be included in Pakistan’s National Youth Policy? And who should have input into how the policy is written? The answer to the second question is easy – young people themselves should have the opportunity to make recommendations for incorporation into such a policy before it is passed. But, that almost did not happen – a draft National Youth Policy for Pakistan was written by the previous government and was set to be passed without any input from stakeholders.

    However, the outgoing government ran out of time to approve the policy, which presented a unique opportunity to facilitate dialogue between the new government and youth. Earlier this week, CIPE, the Islamabad Chamber of Commerce and Industry (ICCI), and the Ministry of Youth Affairs held a conference in Islamabad on the draft policy – the first-ever opportunity for youth in Pakistan to provide feedback directly to policymakers.

    The drive of Pakistan’s youth to play an active role in the reform process was evident. To attend the conference, participants traveled to Islamabad from all areas of Pakistan, including Lahore, Mardan, Multan, and Peshawar, just one day after a fatal bombing in t