CIPE Development Blog

Who do you think is better equipped to handle your retirement needs?  Governments? The private sector? Your own self?

According to HSBC’s global survey of more than 20,000 people on aging, pensions, and citizens’ confidence in governments providing comfortable retirement

three quarters of all those questioned said they did not trust their government to look after them in old age and expected to have to look elsewhere to fund their retirement.

Some interesting stats and facts in the full report, including a statement that

A larger proportion [of the global population] will be totally unprotected in retirement and these live mainly in Eastern Europe, Asia, Africa and Latin America. They are likely to be both men and women, in poor health, with a poor source of working life income and more reliant on families and communities for support.

It seems like citizens don’t expect governments to meet their expectations of comfortable retirement:

…across the majority of economies, the proportion who think that their government will bear most of the financial cost of supporting them in retirement is far smaller than those who believe that they should.

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posted by Aleksandr Shkolnikov on May 16th, 2008
Posted in Global | No Comments »

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WorldPublicOpinion.org has just released an interesting study. The poll of over 17,500 respondents was conducted in 19 nations around the world and examined attitudes toward democracy. The polled nations included China, India, the U.S., Indonesia, Nigeria, and Russia – as well as Argentina, Azerbaijan, Britain, Egypt, France, Iran, Jordan, Mexico, Poland, South Korea, Turkey, Ukraine, and the Palestinian Territories.

The key finding is that in all polled nations the majorities agree with the core democratic principle enshrined in the Universal Declaration of Human Rights (Art. 21) that “the will of the people should be the basis for the authority of government.” Yet what Steven Kull, director of WorldPublicOpinion.org, calls the objective features of democracy such as elections are not enough to create public trust in the government. Subjective features of democracy, such as perception that the government is responsive to its citizens, matter as much. The most substantive complaint visible across the board in this poll was precisely the low level of democratic responsiveness, testifying to the fact that the crucial part of democratic governance is how and to what extent citizens are given a voice in day-to-day policymaking.

The mean perceived level of how much influence the will of the people has on their government is well below the preferred level of how much influence it should have in every nation polled (4.5 vs. 8.0 on a 0-10 scale).

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

(1 votes, average: 5 out of 5)

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On May 7th I attended an event sponsored by the U.S. – Ukraine Business Council here in Washington D.C. that featured an impressive gathering of legal professionals discussing the investment climate in Ukraine.  Each presenter offered a slightly different take on the current situation in Ukraine, but they all seemed to agree on several key issues:

1. International investors continue to flood Ukraine with capital despite the risks.  The continued high pace of investment is due to extremely high returns on investment.
2. Substantial reforms need to be implemented to improve the independence of the legal system and to the protect property rights of investors/owners.
3. Ukraine’s entry into the WTO should pressure the government to revisit some current legislation on investment.
4. The private sector and NGOs have provided the Ukrainian government with detailed analyses of reforms needed to improve the overall business climate.

I did notice a definite lack of consensus among the panelists on just how to enact these reforms and improve the business climate.  Providing Ukraine with detailed analysis and recommendations is great, but without government action everything remains “business as usual”.  I came away from the meeting feeling that if the private sector does not gather itself together soon and advocate for real change it will remain hopelessly divided in a semi-transparent and corrupt system.  Ukraine’s private sector is now sufficiently sophisticated to play on the world stage, but they first need to get their own house in order. 

CIPE’s partner in Ukraine, the Ukrainian Center for International Integration, has produced a series of short videos on the subjects of Ukrainian small and medium sized businesses and their place in the world market.  Ukrainian businesses and international investors need to unite to advocate on behalf of reform that will be beneficial for business.  Corrupt officials and semi-transparent legal structures do not provide jobs, income and infrastructure for the people of Ukraine; it is time for the private sector to make its case. 

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posted by Eric Hontz on May 13th, 2008
Posted in Eurasia | No Comments »

(2 votes, average: 5 out of 5)

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Thinking about supporting Cuba’s quest for democracy, economic freedoms, and human rights?  Well, you can do so on May 21st - the official Cuba Solidarity Day! Visit the website for examples of programs you can conduct in support of Cuba’s democracy on this day.  Even more details are available in this factsheet.

Countries and civil society groups worldwide have an opportunity to join Cuban democracy leaders and non-governmental organizations in commemorating May 21 as of a “Day of Solidarity with the Cuban People”. Democracy leaders and non-governmental organizations plan to demonstrate their support for human rights on the island during mid-May when Cubans across the island traditionally commemorate Cuban patriots who have suffered at the hands of the regime for the cause of freedom and human rights, including the anniversary of the death of Pedro Luis Boitel, a poet-activist who died on May 25, 1972 at age 39 while on a
hunger strike in Cuba’s “Castle of the Prince” prison. The people of Cuba need to know that they have worldwide solidarity and support for their efforts to achieve genuine political and economic freedom in Cuba.

You can use a google maps tool to see what others are doing and share info about your events if you are planning any.

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posted by Aleksandr Shkolnikov on May 13th, 2008
Posted in Global, Latin America and the Caribbean | No Comments »

(1 votes, average: 5 out of 5)

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Not only the government in Burma is under criticism for failing to inform citizens about the coming storm, apparently its newspapers last week showed the Prime Minister handing out…electronics(!!!)

But despite the obvious suffering, massive devastation and pressing need for urgent action, the Burmese authorities were continuing to insist yesterday that everything was under control. On the front page of the New Light of Myanmar – a state-run government publication – was a picture of the Prime Minister, Thein Sein, handing over 20 television sets and 10 DVD players as part of the “relief” operation.

The sad part is that…

…[t]his, in a region where there has been no electricity since the 130mph storm struck.

The national TV has also been showing images of boxes with aid from other countries marked with top general’s names. 

“We have already seen regional commanders putting their names on the side of aid shipments from Asia, saying this was a gift from them, and then distributing it in their region,” said Mark Farmaner, director of Burma Campaign UK, which campaigns for human rights and democracy in the country.

And although the government is slowly accepting aid, it insists on distributing it itself, not allowing anyone else to do it.

So the propaganda machine may succeed in making it seem like things are not too bad and that the government is the one successfully driving the relief effort without much help from outside.  Or it may not. If the history has taught us anything, is that sweeping your problems under the carpet does not work - sooner or later you’ll have to face them.  As the situation gets more pressing, I wonder if the images of “generals parading though neat refugee tentsites” will continue to cut it for the citizens.

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posted by Aleksandr Shkolnikov on May 12th, 2008
Posted in Asia, South Asia | No Comments »

(1 votes, average: 5 out of 5)

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With oil prices sky high and some predictions that they will continue to grow to as much as $200 over the next 6 months or more - one might think that oil producing countries are celebrating.  Higher demand for resources - higher profits!  Right?

Well, it seems like some can’t really keep up,

In the past, non-OPEC producers like Russia, Mexico and Norway have increased production to meet demand.  But these nations have struggled to keep production at the levels of recent years.  Norway’s production, for example, has decreased by twenty-five percent since two thousand one. 

Russia, at one point the largest oil producer, has not been able to sustain its production levels and has seen its output decline over the past six months.  One of the reasons behind this, according to the Economist, is quite simple and predictable — a poor business climate:

“Tax is the major impediment,” says Ms Redman. The government levies an export duty of 65% at prices over $25 a barrel. Add to that various corporate, payroll and production taxes, oilmen complain, and the state creams off as much as 92% of profits. Executives at TNK-BP have argued that rising costs across the oil industry will make many investments in Russia unprofitable unless the tax regime is changed. As it is, TNK-BP accounts for a fifth of BP’s production, but only a tenth of its profits.

Someone may argue that its simply a good strategy - keep production limited to sustain high prices.  It doesn’t make sense, however, if one takes into the account just how dependent the Russian economy is on oil and other natural resources.

The share of oil and gas in Russia’s gross domestic product has more than doubled since 1999 and now stands at above 30%, according to the Institute of Economic Analysis, a think-tank. Oil and gas account for 50% of Russian budget revenues and 65% of its exports.

Perhaps the declining production is signaling a new era in Russia.  The country has reached its natural resource potential in generating growth and now faces a dilemma - put in place real reforms to spur growth in other sectors or remain tied to oil and gas. The incentives to change the business climate are there.  The promises are there too.  Its time for the new old leader to act.

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

(2 votes, average: 4.5 out of 5)

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I often hear about the need for giving developing countries a break on intellectual property rights.  As the argument goes - if they can’t afford the goods or services protected by patents, etc. they shouldn’t have to deal with paying high prices.  Some go even further and suggest that IPR actually hurts development prospects by making key resources unavailable to the poor (such as medicines). 

And its not just words - there are concrete actions.  Take Brazil, for example — the country chose to ignore IPR and produce a generic version of an AIDS drug.  And Brazil is not the only one, there are others.

Franklin Cudjoe, a civil society leader from Ghana, however, thinks that the poor only stand to lose from anti-patent crusades.  To begin with he notes that:

For starters, the drugs needed in the developing world aren’t patent protected. A 2004 study published in the journal Health Affairs showed that less than 2 percent of the 319 prescription drugs on the WHO’s Model List of Essential Medicines are actually under patent.

The point of the article is that its not the problem of patents that the poor face - its the problem of infrastructure:

What patients in the Third World need aren’t patent-busting bureaucrats, but more roads, doctors, hospitals, nutritious food, and good sanitation. When roads are in disrepair, it can be particularly difficult to reach rural populations, where disease burden is highest. In places with no electricity, temperature-sensitive pills often go bad before anyone can benefit from them.

And another problem:

Poor patent enforcement also gives rise to potentially harmful copycats. The generic pharmaceuticals manufactured in the developing world often don’t comply with international safety regulations. Low-quality and counterfeit drugs are common. The WHO estimates that 10 percent of the world’s drugs are counterfeit. Patent-theft is making the problem worse. Read the rest of this entry »

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posted by Aleksandr Shkolnikov on May 8th, 2008
Posted in Africa, Global | No Comments »

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Yesterday’s NY Times article provides an interesting perspective on the relationship between democracy, oil revenues, and development on the case of Kuwait.  As the story goes, in Kuwait, a public opinion that democracy has hampered the country’s development is becoming more widespread.  The reason?  Well, it seems like the country is lagging behind its as well oil-rich neighbors who shun democracy in favor of monarchies.

For example,

Many Kuwaitis also complain about government neglect of public hospitals and schools. Problems with the power grid caused brownouts last summer…Although parts of Kuwait City were rebuilt after the Iraqi invasion of 1990, much of it looks faded and tatty, a striking contrast with the gleaming hyper-modernity of Dubai, Abu Dhabi and Qatar.
 

But it may be too little reform (or too little democracy) rather too much of it that is the root of the problem.  For example, one source of frustration with the Parliament has been

the failure to reform Kuwait’s state-controlled economy. After the 2006 elections, many Kuwaitis were hoping for changes to cumbersome government rules that allow land to be allocated for business projects. Instead, the effort was blocked in Parliament. The slow pace of efforts to privatize the national airline and parts of the oil sector has also caused disappointment.

Ending on the upbeat note, however, the article points out that despite challenges “retreat from democratic values seems unlikely” in Kuwait.

Still, the point raised is rather valid - do authoritarian governments, not necessarily a subject to debates and opinion-exchange in the policymaking process, perform better in development projects when resources are abound by bypassing political deliberations and making swift decisions on investment, infrastructure development, etc.? Read the rest of this entry »

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posted by Aleksandr Shkolnikov on May 7th, 2008
Posted in Global, Middle East and North Africa | No Comments »

(2 votes, average: 5 out of 5)

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With the price of oil at its record highs, it can be hard to imagine that key exporters thereof, six countries of the Gulf Cooperation Council (Bahrain, Kuwait, Qatar, Oman, Saudi Arabia, and United Arab Emirates) may currently be facing economic problems of any kind. The signs of prosperity seems to be all around as gleaming towers rise in the middle of the desert and guests arrive by helicopter at the world’s only seven-star hotel, Dubai’s sail-shaped Burj al-Arab. And yet not all is well.

A somewhat unexpected addition to the region’s stunning architecture is a… diabetes center in Abu Dhabi. Nearly one-fifth of the UAE’s native population now suffers from diabetes and the statistics are not much better in the rest of the GCC. A result of more sedentary lifestyle and unhealthy diet? Certainly. But, as the Economist points out, the diabetes problem can also be a useful metaphor for how…

The region’s economies are struggling to absorb petrodollars, accumulating like glucose in the bloodstream. The risk they face is the economic equivalent of renal failure: inflation, a hollowing-out of the non-oil sector, and a young, growing workforce in chronic need of outside labor to supplement it.

Last year the GCC countries earned a total of $381 billion from oil exports, plus another $26 billion from gas. This accounts for over a half of their economies with the combined GDP of $800 billion. But at the same time inflation sped up, which – coupled with the global boom in commodity prices – is making construction materials, real estate, and food more and more expensive. Read the rest of this entry »

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posted by Anna Nadgrodkiewicz on May 5th, 2008
Posted in Middle East and North Africa | No Comments »

(4 votes, average: 5 out of 5)

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The recent edition of the Foreign Policy magazine (subscription required) delves into the issue of democracy and happiness. Namely, it explores why the common wisdom that democratic nations are happy nations may not always be true. The article gives an example of the former Soviet bloc countries where according to sociological research national happiness has not increased – or even in some cases decreased – despite the advent of elections.

The World Values Survey, for instance, for years now has been asking the question “Overall, how happy are you with your life these days?” to people around the world. One clear trend that emerged from this research is that happy countries tend to be wealthy and stable democracies. But it’s not enough for a country to be a democracy in order to automatically become happy and prosperous.

The article goes on to consider cultural predispositions for “readiness” for democracy. But what does “democracy” mean exactly? If we define democracy very narrowly in terms of elections, it is certainly not a sufficient criterion for predicting happiness. Notwithstanding the fact that in many countries such as those of the former Soviet bloc elections may be far from free and fair, even legitimately conducted voting in itself is not necessarily a good forecaster for a sustained rise in aggregate happiness.

If social participation is limited only to periodical casting of a ballot, if the government between elections remains unresponsive and has little accountability to the public, if the decision-makers fail to create policies conducive to economic growth – democracy has not succeeded. Electoral democracy has to be translated into responsible, transparent, and participatory democratic governance in order for the population to experience tangible improvements in their lives and feel happier.

In the absence of civil liberties and political rights beyond just voting, democracy cannot flourish. Similarly, the market economy cannot prosper in the absence of economic freedoms that are intertwined with these political rights and liberties. In other words, democracy – and happiness – go beyond just popular representation. Democracy must deliver outputs and policies that respond to real public needs in order to make a meaningful difference in people’s lives. And no cultural predispositions exist for that.

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

(3 votes, average: 5 out of 5)

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In a recent article published in the Journal of Democracy, Richard Joseph analyzes what he calls “frontier Africa” – the continent in flux where political and economic life “features an interplay of risk, reward, and uncertainty.” The 1990s created important openings for political and economic freedoms in many African countries. But most of these countries remain vulnerable “frontier” markets and democracies at best.

Joseph focuses in particular on one key weakness of African democracies that undermines not only political stability, but also sustained growth: the overwhelming power of the executive. Despite the introduction of formal elections, many African democracies persist in the old ways of seeing the government as a way of getting rich. Newly elected leaders tend to move toward accumulating more power and influence with the end result not much different from the personal rule of their authoritarian predecessors. If democracy is to be nothing more than a sanctioned way of appropriating public resources, the chances of building truly democratic governance and functioning markets remain slim. Joseph comments:

Still unresolved in Africa is the contest between personal rule (typified by the “Big Man” syndrome) and institutions based on the rule of law. The Kenyan electoral tragedy showed, once again, how readily the scales can be tipped between these competing principles of governance. (…) Few African leaders, even in electoral democracies, govern today as committed democrats. Some, such as President Abdoulaye Wade of Senegal, spent many years in opposition sharply criticizing incumbents as undemocratic, only to behave nepotistically and autocratically once they themselves gained power.

How can those entrenched tendencies be changed? The key lies in improving state performance, better governance, and institution-building that would include public at large in the democratic decision-making process between the elections.

The most daunting frontier still to be crossed in much of postcolonial Africa is the creation and maintenance of institutions that will uphold transparency and the rule of law. Democracy will not flourish in Africa until public institutions perform their most fundamental duties [provide basic public goods] in a reasonably efficient and predictable manner. (…) Assessments of democracy’s prospects in Africa should attend more closely to democracy as more than just a set of rules for managing power struggles among elites. In the context of the great material deprivation of the masses of the people, democracy is an avenue by which their legitimate aspirations for a better future can be expressed and claims for redress made.

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posted by Anna Nadgrodkiewicz on April 29th, 2008
Posted in Africa | No Comments »

(4 votes, average: 5 out of 5)

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Hamid Karzai’s presidency seems to be failing, and some polls show that his support is flagging. Karzai is perceived to be ineffective in reducing corruption weak on the Taliban, and making moves that question his democratic credentials. Several Afghans I spoke to in Kabul believe that the Taliban attack against a military parade on April 27 marked a turning point in public opinion against Karzai as he made the culturally unacceptable decision to flee the scene rather than lead his security forces. The result was a chaotic scene and there is much talk here in Kabul about firing those high officials in charge of security. The Taliban have claimed that they purposely spared Karzai’s life, and this would appear to be true as a sniper could have easily killed the president from the vantage point of the attack. This was a propaganda coup for the Taliban and seems to be having a negative impact on morale in the country, while generating anger against the president.

Karzai’s ineffectiveness in dealing with corruption and the Taliban has been well established in the minds of too many Afghans. Meanwhile, recent trends against democracy (initiating and supporting bans on media content, and attempting to shut down Tolo TV, which has been critical of his government), recent statements against NATO’s conduct in the war, and conciliatory moves towards the Taliban are disturbing. Many believe he is losing support from Britain and the US as well.

With all this discontent many are wondering who could replace Karzai in a Fall 2009 election bid. The names that carry weight as potential presidential contenders at the moment are former US ambassador Khalilzad and Ali Ahmad Jalali. These two are close allies and it is unlikely that they would run against each other. Jalali seems like the more likely candidate as Khalilzad says he is not interested in the position. Jalali is an Afghan American, currently a professor at the National Defense University and former VOA journalist. He has a strong reputation for his work as a top military planner with the Mujahedin and an honest and effective Interior Minister of Afghanistan from January 2003 to September 2005. He is a member of the Ghilzai Pashtun tribe, which may give him greater legitimacy to negotiate with the Taliban than the Karzais, who are Durrani Pashtuns. Taliban leadership has been made up largely of Ghilzai Pashtuns.

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posted by Kipp Efinger on April 28th, 2008
Posted in Asia, Middle East and North Africa, South Asia | No Comments »

(4 votes, average: 4.5 out of 5)

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When the Kenyan President Mwai Kibaki and opposition leader Raila Odinga reached a power-sharing agreement after dramatic weeks of violence, the world breathed a collective sigh of relief. A coalition government was finally formed following protracted horse-trading to divvy up the key ministerial portfolios.

The outcome is indeed a Grand Coalition, but not necessarily in the best sense of a national unity government. While certainly this peace-securing agreement was an important step in Kenya’s recovery from the post-election turmoil, the grandest feature of the newly formed government is its very size. Kenya’s old cabinet had 17 members. The new one has… 40 – plus 50 assistant ministers. The new ministries were established or carved out of the existing ones in order to secure the balance of power between Kibaki and Odinga loyalists. But regardless of the rationale, these numbers are simply staggering!

First, how can this bloated government hope to get things done? The logistics of coordinating between so many ministers seem nearly unworkable. Second, the cost of supporting this behemoth bureaucracy is crushing. As the Economist notes, nearly half of Parliament’s members now have some ministerial position, which comes with extra salary, security expenses, cars, etc. What’s the total tab? An estimated $1 billion a year, or about one-eight of the expected government revenue!

And finally, this anything-but-lean government is likely to exacerbate Kenya’s corruption problems. If nothing else, mismanagement and resource misallocation seem unavoidable given the overlapping competencies of so many ministers and little in a way of checks and balances.

Mr. Odinga defended his new government saying, “Don’t look at the size of this cabinet, look at its products.” Now his great challenge is to prove to the Kenyan people, 60 percent of whom live on less than a dollar a day, that the Grand Coalition is capable of delivering equally sizable reforms.

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posted by Anna Nadgrodkiewicz on April 23rd, 2008
Posted in Africa | 2 Comments »

(2 votes, average: 5 out of 5)

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Be sure to read Anne Applebaum’s Op-Ed in today’s Washington Post. The article reminds us of Radio Free Europe and that its mission is as important today as ever. Operating in 21 countries and 28 languages RFE provides an important, and often the only, source of independent journalism in countries around the world.

Independent sources of information are crucial to the establishment of democracy and the protection of rights. People cannot voice their opinions, stand up for their rights, and advocate for their interests if they are denied access to information about their society. RFE provides journalists their only opportunity to broadcast news in their countries. RFE journalists are primarily locals, many of whom are living and working in their native country. These journalists are often risking their lives to cover stories that would otherwise go unreported.

CIPE shares RFE mission of ensuring that people around the world have access to independent, reliable information. Several CIPE staff have participated in RFE radio programs. In addition, CIPE has conducted training programs for economic journalists in more than 25 countries. These programs increase the knowledge and skills of local journalists to more effectively report on local economic and business issues. CIPE believes strongly that democracy cannot succeed if the people are denied independent access to information.

I hope a lot of people ready Applebaum’s story and find ways to support Radio Free Europe. Programs like RFE cost very little, yet have an incredible impact on the people of the countries in which it broadcasts. It would be a shame if this program continues to lose funding.

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posted by Tim Wallace on April 22nd, 2008
Posted in Global | No Comments »

(2 votes, average: 5 out of 5)

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In Tunisia recently for a workshop with business journalists on corporate governance issues, I witnessed a generational divide that gives me hope.  The key moment in the training came in a debate between an older journalist writing for a state-owned newspaper and younger journalists writing for web-based economic journals about the role of the media in investigative reporting on corporate behavior.   The state-owned newspaper journalist challenged why reporters should dig their noses in private businesses if there is nothing wrong.  The others protested, saying they must be active in their reporting in order to uncover failures before they become scandals.  The split in their views was clear, and I was encouraged by the younger clan who want to shape a new culture that values good governance and the rights of all stakeholders.   Now, if only the government would stop blocking YouTube and checking e-mail messages…..

Later in the day, I asked several participants about the most pressing economic issue facing Tunisia today.   One answered the rising costs of oil, then explained that the government stabilizes the price of oil so international increases don’t affect them directly.  But, he added, there is still a cost since the government has less money for other development projects that would benefit the country.  I thought the Tunisians must be very lucky not to feel the food squeeze as much as its neighbors in Egypt or Ethiopia, where bread riots have been on the rise.   Tunisia seems to be weathering this storm, but can subsidies for oil continue on an ongoing basis?   I asked if rising unemployment and the lack of good jobs was an issue, and they just replied with a shrug.   It’s hard to believe that these economic realities aren’t felt, but perhaps it reflects their desire not to air dirty laundry.

Later that night, sitting with our two trainers for this workshop—a Pakistani journalist and a Tunisian professor—one posed the question: “What are you most proud of in your country”?  The Tunisian answered women’s rights and a high level education.  The Pakistani answered the impact of protests and complaints by the public to affect change in a tangible way.   I said the drive for achievement and a spirit of ingenuity and entrepreneurship.  I thought the answer from the Tunisian was interesting indeed; the tradeoff between political freedoms and social development seems to satisfy many people here.  There are others, however, who long for the air of freedom and say as much in not-so-subtle comments whispered under their breath. 

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posted by Danya Greenfield on April 21st, 2008
Posted in Middle East and North Africa | No Comments »

(5 votes, average: 4.8 out of 5)

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In projects that CIPE funds, my job is to look for impact. The major question I like to ask my colleagues is, “What are we trying to achieve?” Working in the development world, you see different projects, and when you assess them, you see which ones succeeded and which ones didn’t. This morning I read an article from by Homi Kharas and Abdul Malik of Brookings Institution, “Short Term Fixes for Development Assistance”

The authors refer to the new Global Monitoring Report of the World Bank and the IMF that states “that the world is failing well short of the global development goals set for 2015.” The report and author’s interpretation of it is that the system development assistance is failing the poor. The authors further go into details on why aid is failing in the development countries, referring to such reasons as the lack of monitoring and accountability resulting in corruption, poor planning, and execution of projects. Of particular interest is the lack of vision and achievable goals, which usually results in project failures.

Project evaluation conducted independently presents transparency; gives a clear picture of what works and what doesn’t; and actually gives a better view of how to make aid more useful. Countries that receive the aid are being blamed for poor accountability, but this is exactly where we need monitoring and evaluation. Evaluation will monitor our own performance and assess our own capabilities, and lead us to monitoring the performance of donor receivers, and how their actions result in positive outcomes for the countries that receive the aid. If evaluations were put in the beginning of designing the project activities, there would be fewer problems with how aid is being spent.

CIPE has a rich tradition of conducting evaluations to document the measurable impact and results of efforts to foster democratic and economic reforms where they are most needed throughout the world. To record the impact, it has been very important for CIPE staff to develop projects that ensure high quality evaluations. An important part of CIPE’s project design is to follow SMART objectives (Specific, Measurable, Achievable, Results - oriented, and Time-limited) as well as consider such factors as addressing country conditions in each evaluation and compliance with donor requirements. CIPE’s evaluation unit continues to improve its mechanisms in order to enhance CIPE’s efforts to bring about democratic and economic reforms in a wide range of political and economic systems and diverse cultures.

Check out CIPE’s Annual Report 2007 for recent examples of CIPE impact worldwide.

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posted by Nigina Malikova on April 17th, 2008
Posted in Global | No Comments »

(4 votes, average: 4.25 out of 5)

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Congratulations to Nepal on their successful elections. The elections mark the end of the monarchy in Nepal, and hopefully of the violence of the last decade as well. In what is being reported as largely free and fair elections, the people of Nepal have finally won the right to voice their opinions.

Despite this success, I am troubled by the outcome. Early reports indicate an overwhelming victory for the Maoists, likely securing a majority of seats in the new parliament; the same Maoists who have terrorized Nepal for the last decade through violence and intimidation. Such an outcome was predicted by no one, including the Maoists who repeatedly threatened to boycott the elections.

The days and weeks ahead will begin to shed light on the future of democracy in Nepal. For many, the success of the Maoists is baffling. Answers are hard to come by, but popular theories suggest the vote was more a dismissal of the traditional parties failed policies than a vote of support for the Maoists. Also suggested is the possibility that people voted for the Maoists as a form of appeasement to end the violence that has disrupted the lives of the Nepalese.

I believe the concern over the election of the Maoists is misplaced. Democracy is not so much about outcome as it is process. Democracy establishes the rules and allows the people to determine their fate. Bestowing power to the people takes a great leap of faith. We should support the Nepalese people and honor their vote. We may be uneasy about the outcome, but we should maintain our faith in the democratic system. After all, the best aspect of a democracy is that, if you are unhappy with the outcome, there is always another election around the corner.

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posted by Tim Wallace on April 16th, 2008
Posted in South Asia | 4 Comments »

(2 votes, average: 4.5 out of 5)

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A corrupt bureaucrat can seem like a cozy business partner to entrepreneurs in developing countries. When an entrepreneur develops a corrupt relationship with a bureaucrat, that business can flourish as sharing profits with the bureaucrat result in a sudden onslaught of administrative pressures that eventually force the competing businesses out of the market.

As comfortable as this may seem to the entrepreneur that benefits from the relationship, eventually (s)he will realize that the unholy transaction was actually a bite of forbidden fruit and now a snake is sitting in his/her lap, studying the business’ weaknesses, waiting for the perfect moment to turn that “business partnership” into a means of extortion. Once the bureaucrat knows a business’ weaknesses, he/she wields all the power in the relationship. Suddenly, you and the other business are bidding on bribes to maintain the corrupt partnership or vanquish the competitor, or those free lunches to that friendly tax inspector have grown into free lunches for him and 10 of his friends, and there is nothing you can do about it. Or is there?

Russian experts on corruption like Dina Krylova from the Union of Business Associations (OPORA) and former Yeltsin advisor Georgy Satarov from the Indem Foundation point out that minimizing corrupt relationships is a far better way to build a business, even in a notoriously corrupt environment, even if that business has already started a corrupt relationship. In “Business without Corruption: an Action Guide,” they describe all kinds of ways to protect against extortion such as using tape recorders, getting support from clients or other businesses, finding the right people to send letters to, and keeping inventory of documents given to inspectors.

An even more effective means of fighting corruption is collective action, as we’ve seen in many instances in Russia, where associations and chambers of commerce are strengthening and becoming effective civil society actors; an odd paradox given the way in which NGOs have all but disappeared off the political map. To revisit an old cliché, collective action against corruption is like a rising tide that raises all ships. Through collective action, businesses can collectively refuse to be cornered by dangerous relationships and they can also come up with collective solutions against a growing wave of corruption that threatens to drown out the SME sector.

For example, as government pressure to engage in “corporate social responsibility” takes on an extortionate flavor, businesses have made their community development contributions through local chambers of commerce or associations, thereby maximizing transparency and remaining in the government’s favor, all the while doing good for the community. In another example, a real estate association hired a staff legal expert to help members whenever corruption issues arise, thereby keeping the realtors’ clear of extortion and building trust from the community that realtors are real professionals. All of these examples come from the guidebook, “Business without Corruption: an Action Guide,” which was written by CIPE partners, with support from CIPE and USAID. Click here for a link to the guide.

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posted by Kipp Efinger on April 15th, 2008
Posted in Eastern Europe, Eurasia | No Comments »

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A few weeks ago I had a pleasure of attending a workshop for journalists from East Africa organized by IREN - a Kenyan free market think tank.  Such events are usually held in Kenya, but due to the violence in the country journalists from Uganda, Zambia, Zimbabwe, Rwanda, South Africa, Tanzania, and Kenya gathered in Tanzania this time around.

The workshop focused primarily on the role of journalists in spurring development in Africa - whether its democratic reforms, addressing poverty, or dealing with policy issues.  Although nearly 30 participants did not always agree with each other (I did enjoy the debates) - they all had one thing on common: their commitment to highlighting Africa’s problems, figuring out domestic solutions, making democracy work, and staying true to their profession despite the inherent risks involved.

What are those risks?

Ask Robert Mukombozi.  For his reporting on what’s going on in Rwanda, he has been declared a persona non grata and given just five minutes to leave the country.

In his email, Mukombozi said:

I have not been allowed to go back to my house to pick anything and as of now my house has been taken over by security personnel.  Reason? Nothing has been given…

What did he do? Read the rest of this entry »

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posted by Aleksandr Shkolnikov on April 14th, 2008
Posted in Africa | No Comments »