Author Archives: Anna Kompanek

Democratic and Economic Development in the Digital Era

In the last decade, new information and communications technologies (ICTs) have become less expensive and more accessible for people around the world. According to the International Telecommunications Union, more than 3 billion people (nearly 47 percent of all the people on earth) now use the internet. Likewise, by the end of 2016, the total number of mobile broadband subscription was expected to reach 3.6 billion. This growing global usage of ICT has made it easier for citizens and organizations to access information and share data, conduct business online, and virtually network with others. Rapid technological advances, in turn, are poised to have a profound impact on democratic and economic development around the world.

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Transformational Leadership Wanted

Recipients of the Jose Egardo Campos Collaborative Leadership Awards at the Global Leadership Forum

In today’s world of polarized politics, divisions within societies struggling with the history of divisions feel particularly deep. Countries emerging from conflict, such as Colombia or South Sudan, are striving to make progress toward non-violence and reconciliation. Even in peaceful, mature democracies, the public discourse has become more partisan and polarized than ever. As countries look for transformative leadership to overcome divisions, they struggle with building effective coalitions that could overcome differences and find consensus in key areas.

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Private Sector in Ukraine Makes Strides Toward Curbing Corruption

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When one thinks about Ukraine in the context of corruption, the picture typically does not look rosy. The headlines about corrupt oligarchs and continued graft easily come to mind – including recent revelations about the riches disclosed by top officials in their asset declarations. This wealth stands in stark contrast with the financial condition of most ordinary Ukrainians, causing public outcry. Not surprisingly, Ukraine was ranked 130th out of 167 in the latest Transparency International’s Corruption Perceptions Index.

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A Seat in the Limousine

From Left: CIPE Chair Greg Lebedev, with discussion moderator Andrew Wilson, and speakers Alicia Phillips Mandaville, Chris Maloney, and Beth Tritter at the Democracy and Governance event on September 15, 2016.

From Left: CIPE Chair Greg Lebedev, with discussion moderator Andrew Wilson, and speakers Alicia Phillips Mandaville, Chris Maloney, and Beth Tritter at the Democracy and Governance event on September 15, 2016.

Democratic governance and development go hand in hand. Transparency and the rule of law provided by well-functioning democracies create favorable business environments where firms of all sectors and sizes can thrive. In turn, inclusive economic growth lifts populations out of poverty and strengthens public expectations of accountability. To celebrate the International Day of Democracy, CIPE and the Millennium Challenge Corporation (MCC) held a joint event on September 15, titled “Democracy and Governance: Key Foundations to Sustainable Development.”

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Global Development Needs Grassroots Activation

President Obama addresses the White House Summit on Global Development (Photo: VOA)

President Obama addresses the White House Summit on Global Development (Photo: VOA)

Looking back at the global development efforts over the last few years, one theme tends to reoccur: too many reforms are owned by the elites and civil society leaders in the capital with too little engagement at the grassroots. This common disconnect was raised at the White House Summit on Global Development, and it looms large over future initiatives of the international community.

At a session devoted to transparency, accountability, and open government Ambassador Samantha Power, U.S. Permanent Representative to the United Nations, talked about how crucial these factors are to unlocking economic development and fulfilling Goal 16 – the enabler – of the Sustainable Development Goals (SDGs). She also highlighted the importance of multi-stakeholder partnerships such as Open Government Partnership (OGP) for advancing this approach and providing a hook that civil societies in countries around the world have been able to latch on to for reforms.

A global growth of demand for accountability and transparency, fueled by the rise of communication technology, is definitely a reason for optimism. At the same time, serious problems persist. Rakesh Rajani, Director of Democratic Participation and Governance at Ford Foundation, emphasized that despite progress and path ahead charted by initiatives such as SDGs and OGP serious challenges remain when it comes to authoritarian backlash and reversals of democratic culture. Even in established democracies such as India non-profit organizations increasingly come under undue pressure. As governments in many countries are clamping down on civic space, international efforts to counteract such trends do not resonate sufficiently with citizens on the ground.

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Boosting Integrity in Global Trade

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2016 OECD Integrity Forum

This post originally appeared on the Corporate Compliance Trends blog.

Mutually beneficial exchange of goods and services is at the heart of David Ricardo’s comparative advantage argument and Adam Smith’s The Wealth of Nations. Over the centuries, such exchange through commerce has connected countries around the globe through a web of economic links and lifted millions out of poverty. In the modern era, international agreements under the World Trade Organization (WTO) have done much to lower tariffs and increase trade. However, in many countries, non-tariff barriers continue to impede growth and development. Lack of integrity in border control and customs administration is one such key barrier.

As estimated by the World Customs Organization (WCO), the loss of revenue among its 180 member countries caused by customs-related corruption is at least USD 2 billion in customs revenue each year. India and Russia alone are losing USD 334 million and USD 223 million, respectively. Beyond monetary losses, lack of integrity in customs also presents big risks for global value chains and security concerns when it comes to criminal activity and illicit trade.

Given this global significance, combatting corruption at the border was an important topic of the 2016 OECD Integrity Forum in Paris conducted under the theme “Fighting the Hidden Tariff: Global Trade without Corruption.” Angel Gurría, Secretary-General of the OECD, made a powerful case for trade with integrity in his opening remarks:

“Integrity is not just a moral issue; it’s also about making our economies more productive, our public sectors more efficient, our societies and our economies more inclusive. It’s about restoring trust, not just trust in government, but trust in public institutions, regulators, banks, and corporations.”

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How Kenya’s Private Sector is Addressing the “Supply Side” of Corruption

Photo: Citizen Digital

Photo: Citizen Digital

A recent report by Kenya’s Ethics and Anti-Corruption Commission (EACC) paints a rather grim picture of the extent of corruption in Kenya. In the top 10 counties by average bribe size, bribes range from KSH 80,000 (about $800 US) to about KSH 6,000 ($60 US) — in a country where the average monthly wage is just $76. Situations where bribes are most commonly solicited include obtaining basic services such as medical attention or a national identity card. Not surprisingly, Transparency International puts Kenya at 139th out of 168 countries in its latest corruption ranking.

Even a cursory review of Kenyan daily news coverage shows that corruption at all levels (from county to national) and in all its forms (from bribes to graft) is a major issue of concern for the country. Many commentators express frustration at the extent of the problem and the dearth of constructive solutions. Against that background, CIPE and its partner organization, the Kenya Association of Manufacturers (KAM), are working to help change Kenya’s corruption-tainted narrative and provide the private sector with tools to proactively build integrity into business operations.

To that end, CIPE, KAM, and Global Compact Network Kenya (GCNK), where KAM serves as the secretariat, created a joint training program for Kenyan companies on anti-corruption compliance. The training is based on CIPE’s Anti-Corruption Compliance: A Guide for Mid-Sized Companies in Emerging Markets and was adapted to the unique needs and concerns of local businesses. As KAM’s Chairman Pradeep Paunrana put it, “You cannot clap with one hand, it takes two people to make a corrupt deal.” Through this initiative, Kenya’s private sector is taking responsibility for holding itself to a higher standard and disrupting the “supply side” of corruption.

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