Author Archives: Guest

Five Lessons from CEOs at the Corporate Citizenship Conference

ccc

By Mark Horoszowski

Earlier this month at the U.S. Chamber Foundation’s Corporate Citizenship Conference, CEOs from diverse organizations gathered for a Plenary Panel titled “Lessons From the Top”. The CEOs represented a variety of industries and include the YWCA (non-profit), United Nations Foundation, and two socially-minded for-profits: Starfish Media Group and Reserveage

These are their five lessons:

Read More…

Mongolia Must Improve Its Institutions to Avoid the Resource Curse

mongolia-mine

By Dash Enkhbayar

The West tends to illustrate Mongolia as an “example of a developing country that, despite the odds, managed to accomplish a peaceful transition to democracy.” However, simply achieving an electoral democracy does not complete a country’s democratic transition. Recent years have shed light on the major institutional flaws that still exists in the country’s public and private sectors.

Sandwiched between China and Russia, Mongolia has been attracting significant attention for the past couple of years due to its rapid economic growth and burgeoning mining sector. It recorded the world’s fastest GDP growth rate in 2011 at 17 percent, which put Mongolia in the international spotlight for investment opportunities.

But corruption, poor governance, and unstable government regulations threaten Mongolia’s economic potential. In 2013, due to unfriendly investment laws such as the Strategic Entities Foreign Investment Law, foreign direct investment (FDI) in Mongolia plummeted by 48 percent, which effectively scared away many investors interested in the nation. Mongolia is, in fact, not a model democracy that it seeks to invoke. Instead, the last few years have demonstrated that unless Mongolia seriously starts tackling its institutional weakness it may succumb to the “resource curse,” in which a country with an abundance of natural resources experiences poor economic growth and a worsening political climate.

Read More…

Moving Beyond the Bi-Polar View of Doing Business in Africa

New buildings in Gabarone, the capital of Botswana -- one of the most developed and fastest-growing economies in sub-Saharan Africa.

Gabarone is the capital of Botswana — one of the most developed and fastest-growing economies in sub-Saharan Africa.

By Naledi Modisaatsone

Economic improvements and a wealth of opportunities for business in Africa have led to an increased focus on the continent. Over the past three years Ernst & Young’s Africa attractiveness reports have highlighted the continent’s steady rise. Their research provides some quantitative substance to the growing perception that African markets offer an exciting growth and investment opportunity.

Africa’s growth prospects differ not only country by country but also sector by sector. For example, agriculture is Africa’s largest economic sector, representing 15 percent of the continent’s total GDP, or more than $100 billion annually. It is highly concentrated, with Egypt and Nigeria alone accounting for one-third of total agricultural output and the top ten countries generating 75 percent.

Africa’s banking sector has also grown rapidly in the last decade. Sub-Saharan Africa has become a substantial player in emerging-market banking, with total 2008 assets of $669 billion, while North Africa’s asset base has grown substantially, to $497 billion. Africa’s banking assets thus compare favorably with those in other emerging markets, such as Russia (with $995 billion).

However, the Ernst & Young reports also highlight a lingering perception gap between companies already doing business on the continent and those with no business presence there. The respondents with an established business presence in Africa are more positive about the continent’s prospects and rank Africa as the most attractive regional investment destination in the world today. They view it as an exciting, dynamic, high-growth market. In stark contrast, respondents that have not yet invested are negative and rank Africa as the least attractive regional investment destination in the world.

The African business community should spend some time on this issue at the US-Africa Business Forum. It is their responsibility to debunk the myths that some external investors have about operating a successful business in Africa. These business leaders are successfully embracing Africa’s uncertainty, complexity and volatility, understanding that these are common challenges across most emerging markets.

They are actively balancing the three tensions that all companies face in doing business in emerging markets: long-term versus short-term focus, profit-taking versus sustainable growth, and managing the whole versus optimizing the parts. Most importantly, their companies are establishing strong competitive positions in key markets and are poised to benefit from the continued growth anticipated over the next decade.

Read More…

U.S. Companies Should Not Overlook Opportunities in Sub-Saharan Africa

A growing textile industry is among the drivers of Ghana's rapid economic growth in recent years. (Photo: Wall Street Journal.)

A growing textile industry is among the drivers of Ghana’s rapid economic growth in recent years. (Photo: Wall Street Journal.)

By Chris Braddock

Next week the U.S.-Africa Leaders Summit will bring approximately 50 heads of state to Washington, DC, for the purpose of discussing trade and investment in Africa and highlighting America’s commitment to the continent. During a recent trip in the region, I spent quite a bit of time thinking about this topic.

Over the past four months I was busy traveling in sub-Saharan Africa (SSA), meeting with businesses and academics and researching the business opportunities in five different countries. As part of this trip I had the opportunity to meet with several CIPE partners and consultants who, as representatives of the private sector, were able to speak about the enabling environment and some of the challenges and opportunities of businesses working in SSA.

Most countries in SSA have historically been seen as too unstable, too small a market, or too risky for U.S. companies to explore opportunities, so there are few American companies operating in the region. The perception of SSA for many is based on the plethora of negative stories presented by the media, but this is merely a small and decreasingly significant part of the SSA story. Growth rates are high, people are optimistic with larger disposable incomes, and foreign direct investment is flowing in larger quantities, particularly from Asia. U.S. firms are starting to get left behind.

Read More…

Broadband Internet Access and Development in Latin America and the Caribbean

internet_peru

By Gustavo Guerrero

While broadband internet has become an essential business tool, it has been slow to arrive in the areas that need the benefits of development the most – namely rural regions of developing countries. Though there has been some growth over the years, there is still a long way to go. Recognizing this, the Inter-American Development Bank (IDB) released a report showing the effect of broadband internet on the economies of Latin American and Caribbean countries, outlining how countries can improve their telecommunications infrastructure.

Nationwide high-speed internet access is something that many in the developed world take for granted. However, in the developing world there is a different story. In Nigeria, low broadband penetration has been cited as hindering the development of e-commerce in Africa’s largest economy. Similar examples are present all across the developing world.  The potential for growth is there, waiting, but it cannot be realized until broadband penetration and speed are improved.

Having a web presence is now almost a prerequisite for becoming a successful business.  The specific type of web presence can range from simply listing basic business contact information and operating hours, to having an online sales portal. Being online offers many benefits with very few, if any drawbacks. While most businesses in the developed world have adapted to this new environment, businesses in many parts of the world lack basic internet access that would allow them to grow and thrive.

The report, Socioeconomic Impact of Broadband in Latin American and Caribbean Countries, consists of two major components which aim to promote broadband internet connection in the region.  The first is an econometric model for LAC countries which helps determine how increases to broadband penetration could affect their GDP.  The second is a set of recommendations designed to help governments best improve their infrastructure.

Read More…

Living Democracy

Democracy is about more than just formal institutions.

Democracy is about more than just formal institutions. (Photo: Wikimedia Commons)

Narayan Adhikari is a CIPE-Atlas Corps Think Tank LINKS Fellow at the Accountability Lab

Living in the U.S. for the past six months has been a thrilling experience for me. I have lived in a social entrepreneurship-themed group house, traveled to different cities, gone hiking at Sky Meadows Park, attended events/conferences, and made countless friends. I also interacted with local Nepalese communities and enjoyed festivals and happy hours. Although living in Washington DC has proven itself quite expensive compared to Kathmandu, I have been able to live within my means as a fellow. DC is a very lively and cultural city, and I appreciate that there is always so much going on. After living here for six months I am amazed by the many things I haven’t yet discovered.

Working directly with my friends and colleagues at my host organization, Accountability Lab, in DC, and being a part of the OpenGov Hub (OGH) has been remarkable. OGH, a community of independent organizations working the transparency field, is a great place for collaboration, networking, and learning. As a Think Tank LINKS fellow, I have had access to valuable opportunities and space to expand my knowledge. The monthly webinars and meetings with CIPE and Atlas Corps fellows were especially rewarding and really added value to our learning experience.

While it is always hard to focus on one experience when you have so many things to talk about, I am focusing on my experience with democracy. My quest for knowledge about the true meaning of democracy continued until I was not able to find a solid answer within myself. Often, in countries where democracy is in transition or a far off hope, citizens have difficulty understanding it and are often confused about the difference between democracy in theory and democracy in daily living.

My question was very simple: I wanted to see how people from developed nations like the U.S. live their daily lives in a democratic society without being abstract or theoretical. In theory, democracy is about human rights, freedom of information, freedom of association, and the rule of law. Although what it is written in textbooks and literature is true, all of these concepts cannot exist without smaller fundamental elements of society associated with culture, values, and norms at the individual level.

Read More…

The Unrealized Potential of Volunteerism in Pakistan

pakistan-earthquake

Fayyaz Bhidal is a CIPE-Atlas Corps Think Tank LINKS Fellow at the Atlantic Council

Saturday, October 8, 2005 was an unfortunate day in the history of Pakistan. The entire country was ravaged by an earthquake that registered 7.6 magnitude on the Richter scale. The tremor devastated the entire Kashmir region, razing almost every building to the ground. It also damaged large parts of Khyber Pakhtunkhwa and Baluchistan provinces and caused a high rise housing tower to collapse in Islamabad. The loss, both human and material, was colossal. The death toll surpassed 100,000, and 3.5 million people were displaced. The injured were numerous and everywhere.

This earthquake in Pakistan, just like earthquakes anywhere else in the developing world, caught disaster response institutions off guard. They were unprepared, lacked the essential rescue equipment, training, and resources. On top of that, road and rail networks were no longer usable without major repairs.

In the face of this massive catastrophe, when the state institutions were stuck in a state of panic, the responsibility fell to common people to take it upon themselves to do whatever they could to save their brethren pinned under the rubble and debris. Their efforts rescued over 138,000 injured stuck under collapsed buildings, and saved many more women, children, and elders who lost their families in the calamity. Had it not been for their efforts, most of the injured would have died by the time government rescue teams reached them after a delay of 78 hours.

Attending a panel on ‘Disaster Protection through Preparation’ at the Points of Light Conference in Atlanta, and learning about the role volunteers played in Nashville in saving people and properties during the 2010 floods, and later on helping the city clean up and recover, I could not help but think about the role volunteers played during the 2005 earthquake in Pakistan. They not only helped minimize the damage and sped up rescue, recovery, and rehabilitation efforts, they also left the affected communities more united and self-reliant.

Read More…