Case Study: Public-Private Dialogue in Senegal

A public-private dialogue session with Senegalese President Macky Sall.

A public-private dialogue session with Senegalese President Macky Sall.

The private sector is a key actor in efforts to promote economic growth, reform the business climate, and strengthen democratic policymaking worldwide. Businesses possess the know-how to analyze economic conditions and identify obstacles and opportunities for growth, while governments have the means to pass business-friendly legislation.

From a democratic point of view, a vibrant private sector contribution to dialogue expands participation in policymaking and civic engagement in governance, improves the quality of business representation, and supplements the performance of democratic institutions.

The latest case study from the forthcoming publication Strategies for Policy Reform discusses CIPE’s experience assisting the advancement of policy dialogue in Senegal that supports market-oriented reforms and private sector development.

As Senegal’s largest, most representative and well-organized business association, l’Union Nationale des Commerçants et Industriels du Senegal (UNACOIS) has played a key role in the country’s policymaking process by engaging the government in public private dialogue. At regional and cross-regional dialogue sessions jointly organized by UNACOIS and CIPE, UNACOIS members identified the nation’s complex tax code and high tax rates for SME operators as a major cause of informality in the SME sector. With CIPE support, UNACOIS developed an evidence-based policy paper on tax reform, held public-private dialogue meetings with relevant stakeholders, and presented these recommendations to government officials.

Read about UNACOIS’s successes in reforming the Senegalese Tax Code, establishing a mechanism for regular, ongoing public-private dialogue, and reducing informality here.

Teodora Mihaylova is Research Coordinator at CIPE.

Does Democracy Still Matter?

Once among the poorest countries in the world, South Korea has grown into one of the richest since transitioning to democracy in the late 1980s.

Once among the poorest countries in the world, South Korea has grown into one of the richest since transitioning to democracy in the late 1980s after a series of popular uprisings.

In his June 1982 Westminster Address , which laid the groundwork for the creation of CIPE and the National Endowment for Democracy (NED), President Ronald Reagan established an emerging role for the U.S. as a leader in supporting democracy around the world:

 “It is time that we committed ourselves as a nation- in both the public and private sectors- to assisting democratic development…The objective I propose is quite simple to state: to foster the infrastructure of democracy-the system of a free press, unions, political parties, universities- which allows a people to choose their own way, to develop their own culture, to reconcile their own differences through peaceful means.”

Today that role is being questioned. At an October 20, 2014 conference hosted by the Kennan and Foreign Policy Research Institutes, academics and policymakers from around the world convened to dissect the question “Does Democracy Matter?”

Panelists and participants acknowledged a notable – and unprecedented – cynicism about democracy support: its track record, current viability, and future prospects. Worse yet, this cynicism among scholars, politicians, and practitioners in the U.S. and Europe is coupled with disillusion in nascent or would-be democracies from Central Europe to the Middle East to Latin America. Keynote speaker Larry Diamond reminded the audience that, in direct contrast to the 1990s, the last ten years have seen more countries increasing in authoritarianism than countries making democratic gains.

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Getting Creative about Saying “No!” to Corruption in Lebanon

Graffiti art produced at LTA-LABN’s public rally held in the Beirut Souks, September 12, 2014.

Graffiti art produced at LTA-LABN’s public rally held in the Beirut Souks, September 12, 2014.

CIPE partner the Lebanese Transparency Association (LTA) recently wrapped up a banner month in its fight against corruption in Lebanon. CIPE’s partnership with LTA dates back over ten years, and since 2012 CIPE has been supporting LTA through a grant from the U.S. Department of State’s Middle East Partnership Initiative (MEPI) to strengthen the rule of law in Lebanon. Our approach has been not only to raise public awareness, but also to empower citizens to exercise their rights. This effort has been consolidated primarily through the Lebanese Advocacy and Legal Advice Center (LALAC) and the Lebanese Anti-Bribery Network (LABN), both of which are housed and managed by LTA.

LALAC operates centers in Beirut, Bekaa, and Nabatieh, which are staffed by attorneys and legal assistants who field complaints of corruption from citizens across Lebanon. Through LALAC, citizens can report corruption by calling the LALAC hotline, writing a letter or e-mail, or visiting one of three centers in person.

LALAC Legal Advisor Carol Sabty, LTA Grassroots Manager Said Issa, and the author (center) discuss LALAC’s capabilities in the fight against corruption during an outreach session with citizens in Kfardebian, Lebanon.

LALAC Legal Advisor Carol Sabty, LTA Grassroots Manager Said Issa, and the author (center) discuss LALAC’s capabilities in the fight against corruption during an outreach session with citizens in Kfardebian, Lebanon.

Since CIPE’s direct support for LALAC began approximately one year ago, LALAC has achieved an unprecedented level of activity. A total of 453 complaints have been made during that time, 277 of which directly relate to corruption. In 224 cases, LALAC has provided citizens (“clients”) with legal advice on the process of vindicating their rights (short of providing representation in court) and sought resolution with cognizant public institutions.

If LALAC were a law firm, it would be doing a brisk business. But LALAC doesn’t bill its clients. It exists to empower the victims of corruption as champions for reform and to hold public officials accountable. LALAC has already worked directly with more than 15 public institutions to achieve resolution of individual cases and achieved some notable successes. Moreover, LALAC is negotiating memorandums of understanding (MOUs) with numerous public sector entities to cooperate in resolving complaints of corruption – remarkable progress in a country where openly talking about corruption was taboo not long ago.

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The Role of Business Associations in Democracy

Network members attending the meeting in Abidjan.

Members of a CIPE-supported business association network attend a meeting in Abidjan.

Business associations contribute immensely to economic growth, development, peace, and prosperity.  They play a key role in building inclusive entrepreneurship ecosystems and can bolster the ability of firms of all sizes to grow and create jobs.

Business associations are integral to the democratic process, as they represent the entrepreneurial interests of the middle class, thereby making them essential vehicles for popular participation in a democratic society.

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“FCPA Professor” Discusses Corruption Law’s Enforcement

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Known as “The FCPA Professor” for his highly trafficked blog, Southern Illinois University Law Professor Mike Koehler spoke in Washington, DC on October 2, 2014 about what he sees as flaws in the way FCPA enforcement is carried out.

In his latest book, The Foreign Corrupt Practices Act in a New Era, Koehler dissects recent developments and trends related to the U.S. Foreign Corrupt Practices Act (FCPA) and its enforcement. Although often a critic of FCPA prosecutions, Koehler maintains that the law itself is sound and apt – even for today’s globalized corporate environment.

He submits, however, that a gap exists between the text of the FCPA statute and current DOJ and SEC enforcement. Koehler ties this gap to the large number of corporate actions, which almost always lead to out-of-court settlements, as opposed to actions against individuals which would require greater judicial review.

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Harnessing Markets to Reduce Extreme Poverty

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When “3 billion people on the planet making less than $3 a day, [are] effectively cut out of society, we are missing the opportunity of all those people to be our musicians, our Einsteins, and our professors- it is really all of us that lose.”

In an event on harnessing the power of markets to tackle global poverty, American Enterprise Institute President Arthur Brooks and Acumen founder and CEO Jacqueline Novogratz highlighted the role markets can play in enabling the poor to participate fully in society.

By treating the poor “as assets to society,” rather than liabilities, “we’re going to enliven their capital and that will also give them earned success and dignity,” said Brooks. Novogratz’s philosophy is to do just that – by investing in the poor through so-called “patient capital.”

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Assessing the Business Environment and Entrepreneurial Ecosystem in Egypt and Tunisia

Members of Tunisia's business community share their concerns at a March 2014 policy roundtable.

Members of Tunisia’s business community share their concerns at a March 2014 policy roundtable.

We know that North African economies urgently need economic reforms, opportunities for youth, and greater economic inclusion. But what do we know about where the opportunities lie and – just as important – what are the greatest barriers that obstruct the growth of businesses?

A few salient insights emerged from a recent survey of 131 Egyptian and 100 Tunisian entrepreneurs and business owners, which was conducted by the Center on Development, Democracy, and the Rule of Law at Stanford in cooperation with CIPE. Many of the findings will come as no surprise — the business environment and entrepreneurial ecosystems have room to improve in both countries, and political uncertainty puts a drag on business. One major, policy-relevant finding is the need to address disparities in access to opportunity.

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