This post originally appeared on CIPE’s Corporate Compliance Trends blog.
As the world’s multinational companies seek profits in new, high-risk markets, they inevitably start depending on local businesses – third parties – to operate. Such partnerships bring with them both the promise of mutual growth and, for the multinational, responsibility for the behavior of its new local partner. That’s because aggressively applied laws such as the U.S. Foreign Corrupt Practices Act (FCPA) hold the multinationals responsible for third parties’ behavior.
Of the estimated 106 companies currently under investigation for FCPA-related violations, a significant number of them are related to suspected third party wrongdoing – assuming that past settlements made public are a reliable guide. So, how to reduce the corruption risks presented by doing business with third parties in developing countries where bribery is an accepted practice? CIPE is working on finding answers. So, too, is one of the world’s leading risk management firms, SAI Global, which recently presented a webinar and offered a few tips on how to construct an anti-corruption training program for third parties.
Youth around the world are agents of change. They are political and economic leaders and participants in their communities, and have many thoughts on how to shape their nation’s future.
As part of celebrating such individuals on International Youth Day, two recent CIPE-Atlas Corps Think Tank LINKS alumni – Fayyaz Yaseen from Pakistan and Iryna Fedets from Ukraine – analyzed two issues young people care about in their communities: youth unemployment and anti-corruption. In this week’s Economic Reform Feature Service articles, the two authors explore how to bring about democratic and economic reform changes in their respective countries.
Yesterday was the first day of the inaugural U.S.-Africa Leaders Summit in Washington, DC. Representatives from CIPE’s partners in Africa – including association and chamber leaders from CIPE’s KnowHow mentorship program – in addition to 200 other government, private sector, and civil society leaders from Africa attended the summit’s Civil Society Forum.
With seven of the world’s fastest growing economies and a fast-rising middle-class, no one can doubt the potential for economic prosperity in Africa. What’s questionable, however, is how African nations will achieve this prosperity. And the answer should be through inclusive democracies. Global initiatives like the Open Government Partnerships are already building momentum towards open governments that empower citizens in Africa.
Moreover, as Secretary Kerry and Vice President Biden noted in their remarks yesterday, sustainable economic growth can only come from accountable and transparent societies that address corruption. For more African nations to take advantage of opportunities and accelerate growth, governments, civil society, and the business community must confront corruption.
This is where CIPE’s partners in Africa can come into play. Situated in between the private sector and government, business associations and chambers of commerce can best represent the private sector to improve governance and eliminate corrupt practices that impede market development. The Kenya Association of Manufacturers, for instance, partnered with CIPE and Global Integrity to engage relevant stakeholders in developing recommendations for the local governments to improve service delivery and minimize corruption.
It will be interesting to see what happens next after these high-level business, government, and civil society leaders return to their home countries. Certainly, going beyond rhetoric will be a requirement to systematically tackle corruption and help countries meet their potential.
Maiko Nakagaki is a Program Officer for Global Programs at CIPE.
How can young people go beyond protesting on the streets to demand for change? For the past two years CIPE and Atlas Corps have supported energetic advocates from Ukraine, Libya, Egypt, and other countries in transition to become effective policy-leaders in their communities through the Think Tank LINKS Fellowship program. And we’re inviting young researchers from around the world again to apply to this opportunity to gain new leadership and research skills!
Think Tank LINKS Fellows will shadow researchers and experts at leading U.S. think tanks for 6 months (January to July 2015), and will gain valuable insights and skills to improve their advocacy and leadership skills.
This is a fantastic opportunity that you don’t want to miss!
Watch the promotional video about the fellowship to learn more, or read about fellows’ experiences on CIPE’s blog.
The deadline is August 15, 2014 so don’t wait until the last minute to apply!
In every country, sound laws are a key foundation of democratic governance and economic development. Crafting such laws, however, is only part of the path to success. The other half is making sure that the laws are properly implemented – which is often more challenging.
When laws and regulations are not properly adopted, such discrepancy creates an implementation gap – the difference between laws on the books and how they function in practice. This gap can have negative consequences for democratic governance and the economic prospects of countries and communities. Failing to fully implement laws undermines the credibility of government officials, fuels corruption, and presents serious challenges for business, which in turn hampers economic growth.
To help better understand why implementation gaps happen and how they can be addressed, CIPE and Global Integrity published Improving Public Governance: Closing the Implementation Gap Between Law and Practice. This guidebook offers starting points for identifying implementation gaps in various laws and regulations, asking why these laws and regulations are not fully adopted or practiced.
Based on the suggestions from the guidebook, the Center for the Implementation of Public Policies Promoting Equity and Growth (CIPPEC) researched whether Argentina’s access to information law is implemented by public entities, particularly by state-owned enterprise. The latest Economic Reform Feature Service article summarizes CIPPEC’s key findings from the research and policy reform suggestions needed to overcome the implementation gap.
Maiko Nakagaki is a Program Officer for Global Programs at CIPE.
LCPS President Sami Atallah (second from left) presenting at a roundtable discussion on decentralization draft law in Beirut on April 16, 2014.
Municipalities are an important engine for economic and social development at the local level. City, town, and village governments are closer to their constituencies, and thus have a better understanding of citizens’ needs and concerns. Despite their importance, Lebanon’s central government only allocates 6 percent of its budget for local governments, while most countries spend on average around 27 percent.
While the idea of decentralization was first introduced in Lebanon with the 1989 Taif Accord, which ended the country’s brutal civil war, no government has successfully introduced or passed a decentralization law. But this is finally changing. CIPE’s partner, the Lebanese Center for Policy Studies (LCPS), is addressing the challenge of local governance at a crucial moment in the nation’s history.
P@SHA workshop with Jawwad Ahmed Farid (center) and Karachi School for Business & Leadership students.
What are the necessary steps to take an idea from conception into a commercial reality? How do you strategize and pitch a business idea to a potential investor? How do you select good talent and put together a team? According to CIPE partner Pakistan Software Houses Association for IT & ITES (P@SHA), young aspiring entrepreneurs in Pakistan are full of questions like these.
Entrepreneurs are desperately needed for Pakistan’s future. The country currently faces two significant challenges: a youth bulge and a slow growth.
Today, youth under the age of 30 make up an astonishing two-thirds of the total population. Coupled with this is a slow economy—Pakistan is experiencing limited GDP growth—and the business community and the public sector simply cannot provide enough jobs for employable youth. As a way to address these issues, P@SHA led an eight-month youth entrepreneurship program targeting university students in the technology field.