Category Archives: Asia

China and Pakistan’s All-Weather Friendship

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Huma Sattar is a CIPE-Atlas Corps Think Tank LINKS Fellow at the Heritage Foundation. This post originally appeared at The Diplomat.

Much to the befuddlement of the rest of the world – and as ironic as it is – Communist China and Islamic Pakistan are fast friends. It’s all hail to China in Pakistan and as other partnerships wither and die, these two countries continue to devote energy to strengthening their relationship. China has historically come to Pakistan’s rescue with economic, political, military and nuclear assistance and perhaps what was once a relationship founded on a mutual disillusionment with India has moved toward one with more aspirational intentions on both sides.

It would appear that Pakistan has been the greater beneficiary of this friendship – from military to economic assistance, China has stood by Pakistan, but is the friendship really that sustainable? Andrew Small from the German Marshall Fund certainly seems to think so. An Asia expert, Small recently published a book examining what he calls the unusual nature of the secretive relationship between China and Pakistan and argues that it is much more promising than Pakistan’s erratic ties with the U.S. And indeed, history supports this. On a visit to Pakistan earlier this year, China’s Foreign Minister Wang Yi assured Islamabad that China and Pakistan were in sync on all matters and have an “iron-clad” understanding between them, one that has taken years to hone and fortify.

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Improving Local Level Governance in the Philippines

The Philippine National Police have used the Performance Governance System to improve governance.

Efficient, transparent and accountable governance continues to be a major driving force behind reform movements around the world. In partnership with the Center for International Private Enterprise (CIPE), the Institute for Solidarity in Asia (ISA) has implemented the Performance Governance System (PGS) initiative in the Philippines. The Performance Governance System is a highly rigorous accreditation program that requires participating organizations to reform and strengthen their governance practices with the goal of improving organizational performance, financial transparency and political accountability.

The recently published case study from Strategies for Policy Reform describes the Performance Governance System in detail. ISA has subsequently shared three case studies that illustrate how the adoption of the Performance Governance system has improved public governance in Talisay city, the Philippine National Police, and the Philippine Army.

Teodora Mihaylova is Research Coordinator at CIPE.

Developing the Association Executive Profession: The PCAAE Experience

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By Octavio B. Peralta, Founding Chairman, PCAAE

During the launch event of the Philippine Council for the Advancement of Association Executives (PCAAE) in Manila on November 20, 2013 which I presided, I asked the over 200 attending delegates by show of hands who among them use the title, “Association Executive” when filling up the space for profession in official forms and documents. Only one did!

The Association Executive (AE) profession in North America and Europe is widely-known and well-recognized but unfortunately not in many developing countries, including in Asia and the Pacific, with the exception of developed Australia and New Zealand. This also true in my country, the Philippines, where my organization, the Association of Development Financing in Asia and the Pacific (ADFIAP), is headquartered.

I have been an AE for over 23 years now (and counting) and did not have the benefit of a formal education on association management, which was non-existent in my country. I did learn somehow to cope by learning on the job and it helped that I joined the American Society of Association Executives (ASAE).

My own experience, and what I have witnessed in associations that have struggled to stay relevant and sustainable, have led me to found, with a few colleagues, the Philippine Council for the Advancement of Association Executives (PCAAE).

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Womenomics and Abenomics

By Tyler Makepeace

At the 2014 World Economic Forum in Davos, Switzerland, Prime Minister Shinzo Abe of Japan expounded on his program for economic reform, known as Abenomics. The plan consists of three “arrows”: monetary easing, fiscal stimulus, and structural reforms. Structural reforms, the third arrow, have been the most difficult to implement, among them increasing the economic opportunities for women in Japan. As Abe noted during his speech “the female labor force in Japan is the most under-utilized resource. Japan must become a place where women shine.” Abe later stated a firm goal to have women in 30 percent of “leading positions” in Japan by 2020, however the method by which this goal will be realized is anything but clear.

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A New, Entrepreneurial Growth Model for South Korea

Korea's rapid economic ascent over the past few decades was powered by huge conglomerates like Samsung.

Korea’s rapid economic ascent over the past few decades was powered by huge conglomerates like Samsung. Now the country is aiming to encourage more startups and entrepreneurs.

By Tyler Makepeace

The Republic of Korea is one of the greatest economic development success stories in history — going from one of poorest countries in the world and a major aid recipient to a high-income country and a major aid donor in just a single generation. Both the head of the World Bank and the United Nations claim Korea as their birthplace.

The “Miracle on the Han River” which led to Korea’s stunning economic growth was based on an export-oriented industrialization model, similar to that of Japan, Taiwan, and later China. However, this model of fast growth has now run its course, and for Korea to continue onto the next stage of economic development it will require a different model for economic growth based on an innovative society.

In response to this need, President Park Geun-hye announced in her 2013 inaugural speech the beginning of the “Second Miracle on the Han River” through a new policy called the Creative Economy. This initiative seeks to create a supportive ecosystem for entrepreneurs and SMEs, especially in the tech sector, in order to boost job creation and pursue greater economic democratization within the country.

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Could Rana Plaza Help Make Labor Standards a Corruption Issue?

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In recent years, the private sector has been increasingly responsive to supply chain issues. This is a result of two distinct forces – one related to corruption, and the other related to issues such as human trafficking and child and other labor issues. While the focus on corruption has largely resulted from legislation such as the FCPA and UKBA, interest in labor-related supply chain issues has often been spurred by NGOs, public pressure, and the media.

However, investigations resulting from the Rana Plaza garment factory collapse may change that. On April 24, 2013, over 1,130 people were killed in the building collapse while many employees were making clothing for western companies. While the accident and the resulting public outcry drove some companies to sign accords promising to establish fire and building safety programs, other companies did nothing.

In July of this year, the Bangladesh Anti-Corruption Agency filed charges against 18 people in connection with the disaster, finding that they “grossly breached the building code.” Although bribery may have played a role in the accident — municipal workers were held liable for giving Rana permission to build more floors on top of the existing structure, although they had no authority to do so — the commission’s decision makes no mention of bribery or corruption. Instead, they hold private sector actors accountable directly on the basis of violating local building codes.

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Case Studies: Advancing Anti-Corruption Efforts in Armenia and Thailand

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Corruption is a systemic problem that plagues many transitional countries across the world, rooted in weak rule of law and lack of private property rights. Not only does corruption erode trust in public institutions, such practices also hinder economic growth and weaken democratic governance.

The corruption challenge can be addressed by building responsive institutions that offer basic assurances of private property rights and ensure law and order. CIPE programs address the root causes of corruption through a multi-pronged approach. CIPE programs mobilize the private sector to raise anti-corruption standards and advocate for reforms; streamline regulations and reduce implementation gaps to limit opportunities for corruption; improve corporate governance to strengthen firm-level integrity; facilitate collective action to level the playing field and coordinate company efforts; and equip small and medium-sized enterprises to resist bribery and meet the requirements of global value chains.

Two recent case studies, described below, show these CIPE approaches in action.

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