Kenya’s Optimistic Future: Visiting a KnowHow Mentee in Nairobi

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Gregg Talley is the CEO and President of Talley Management Group. He is serving as a mentor to Small and Medium Entrepreneurial Resource Centre in Kenya through CIPE’s Knowhow Mentorship program. 

I have the good fortune of traveling to Kenya annually to see friends and family. But now, thanks to CIPE, I have another great reason to visit. I met with the CEO and founder of my KnowHow Mentorship mentee association, the Small and Medium Entrepreneurial Resource Centre (SMERC), June Gathoni, in Nairobi on my trip this March.

We all know the value of face to face meetings and this proved itself again to be true for us. While we had many productive calls and have been able to deliver on the value of the mentorship, the ability to sit together and discuss our lives, challenges and plans for the future proved invaluable to us both. We now have a personal connection that will remain well beyond the life of this mentorship program.

Like any small to midsize program, June has A LOT going on and has to balance management of the day to day with the bigger picture role she has for the future growth and sustainability of the organization. Luckily, SMERC is completely aligned with the KENYA 2030 Plan envisioned by the national government.

Even better, SMERC has “sandals on the ground” in the counties where much of the devolution of government programing and spending is being focused. We have been working on how June and SMERC can raise their visibility within academia, the corporate sector, and government in Kenya.

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Losing Steam: Scorecard Shows Slow Progress on Pakistan Economic Policies

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In 2013, Pakistan experienced its first peaceful transition between two elected, democratic governments. In another first, several parties, including the winning PML-N, produced a concrete manifesto outlining their planned economic policies. But citizens have no mechanism to regularly track what governments are doing towards achieving their election promises.

With CIPE support, the Policy Research Institute of Market Economy (PRIME), an independent economic think tank, has been monitoring progress on the government’s economic manifesto via a carefully designed scorecard. The results show that while the new government has made some progress, implementation of its election promises remains slow.

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Ukraine Small Businesses Unite to Call for Policy Reforms

Minister of Economic Development Pavlo Sheremeta (left) with CIPE Deputy Director Andrew Wilson (center) and László Kállay, SME expert and Professor at Corvinus University of Budapest (right).

Minister of Economic Development Pavlo Sheremeta (left) with CIPE Deputy Director Andrew Wilson (center) and László Kállay, SME expert and Professor at Corvinus University of Budapest (right).

In the weeks following the so-called “EuroMaidan” protests in Kyiv that led to the installation of an interim government and the scheduling of early presidential elections, attention in Ukraine began to turn to the need for urgent measures to jump-start the economy, as well as for a comprehensive set of policy reforms in the medium- to longer-term to get the country on track.

With stagnant growth, large fiscal deficits, and the likelihood that international assistance from the IMF will be predicated on a set of austerity measures, many analysts believe that the only way to stimulate Ukraine’s economy is to support the growth of the small and medium-sized enterprise (SME) sector, which represents just a small fraction of the country’s economy in comparison to the countries of Europe which Ukraine aspires to join.

To help articulate just what changes are needed, and to ensure that that the SME sector has a voice in the policy reform discussion, a group of Ukrainian business associations representing SMEs and leading think tanks organized a national forum to discuss a coordinated strategy for reform on April 8-9 with support from CIPE.

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Singapore, Democracy, and Economic Development

Jasper WongBy Jasper Wong, honorable mention in the CIPE 2013 Blog Competition. Read the rest of the winning entries here.

In this decade, perhaps the defining story of global significance is the rise of China in the global economy as it displaces Japan to become the world’s second biggest economy. It is no coincidence then that the prevailing view that democracy should go hand-in-hand with development was seriously challenged at the time as China’s economic success overshadowed U.S. culpability in the Global Financial Crisis (some say, Western Financial Crisis),  which saw the “largest and sharpest drop in economic activity of the modern era.”

Yet China’s development wasn’t the first to challenge the link between economic and political freedom, as it sits fittingly in the context of East Asia’s developmental trajectory, most exemplified by the phenomenon of the Four Asian Tigers during the 1970s and 1980s. Similarly, the accompanying story to their remarkable growth was the political environment in which growth took place under authoritarian leaders like Park Chung Hee and Lee Kuan Yew.

While South Korea and Taiwan have gained strides in being more democratic, Singapore appears to be stuck in limbo, classified as a “hybrid regime” and  ranked at 81st position, well below countries like Indonesia and Malaysia in the latest 2012 Democracy Index published by the EIU.

In global surveys, Singapore has consistently ranked top in governance as its zero-tolerance for corruption, coupled with meritocratic efficiency, are the usual suspects in explanation. Yet ironically, recent times have not bode well for the ruling party of the Singapore government, having just emerged from the latest election with its lowest support ever since independence (60.14 percent of total votes) and facing an increasingly critical electorate.

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The Energy Source of the Future

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“Scientists have discovered an enormous energy source for the world…located in the poorest countries in the world,” announced  Center for Strategic and International Studies (CSIS) President John Hamre recently. “If we tap it, this energy source will double or triple GDP growth in those countries.”

The resource Hamre was discussing is not a fossil fuel like coal or oil and is not a new form of renewable energy.  His remarks were a reference to the 1.8 billion young people in the world between the ages of 10 and 24.  This youth population is the largest the world has ever seen and their contributions to society have drastic implications for the development of emerging markets and fragile states.  If youth become productive civic and economic participants in their communities, the benefits are immense. However, when young people are forced to the fringes of society and do not have sufficient opportunities to participate in society the consequences can be devastating.

In order to help policy, society, and business leaders better understand how to ensure that young people are best positioned to be drivers of growth and development, CSIS recently developed the Global Youth Wellbeing Index in partnership with the International Youth Foundation and Hilton Worldwide.

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Democracy and Economic Freedom in Venezuela

Recent developments concerning property rights violations and popular riots in Venezuela remind us that democratic and economic development is not always a gradual forward-looking process but instead is characterized by periods of progress as well as setbacks. Separation of powers, property rights, the rule of law, the respect of human rights and the rights of minorities are essential components of a functioning democratic and free market system.

Reflecting on the challenging situation in Venezuela and the business community’s experience of threats to private property rights, Jorge Roig, President of the Venezuelan Federation of Chambers of Commerce FEDECAMARAS, was invited by the Free Enterprise and Democracy Network to share his views in the latest Economic Reform Feature Service article

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“This Land Not for Sale”: the Importance of Digitizing Property Records in Kenya

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By David Owiro. This post originally appeared on IEA Kenya’s blog.

If you have ever taken a walk around the major towns in Kenya you will come across warning notices and signboards announcing to the world that “this plot/land is not for sale” or that “this property is not for sale.” Also, if you are a keen reader of the daily newspapers you will come across, in the back pages, notices announcing “caveat emptor or buyer beware” on some parcels of land. These are often put up by individuals seeking to enforce their property rights by deterring members of the public who are likely to be defrauded by unscrupulous groups or individuals.

And now, the National Land Commission, which is the body mandated by the constitution of Kenya to hold public land in trust, has also began placing adverts warning members of the public against buying land without carrying out background searches or relying on certificates of titles.

The reason all this is happening is that people have taken advantage of the previously weak property rights regime that allowed for exploitation and manipulation of official land and property records in order to defraud unsuspecting members of the public.

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