Category Archives: Eurasia

The Moldovan National Business Agenda Goes to the Regions

A national business agenda (NBA) is a powerful tool and platform for business people to engage in a proactive dialogue with policy-makers on issues affecting the private sector in a given country. Developing an NBA requires the private sector to collaborate to identify issues that constrain business activity, offer proposals and solutions to address the issues, and present them in an open and transparent manner to public officials. This private-sector led approach has been instrumental in advancing economic reform agendas in countries around the world.

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Supporting Small Business in Ukraine

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More than a year after the EuroMaidan protests took the world by surprise, Ukraine’s political and economic struggles continue. Developments in the country since the new government came to power highlight the ongoing challenges of systemic overhaul following an exciting, rapid transition. These challenges clearly illustrate the link between democratic development and economic reform, so central to CIPE’s work. Accomplishing the tasks facing Ukraine, from combating corruption, to reducing the barriers to doing business, to creating space for public-private dialogue, will be no easy feat.

The success of Ukraine’s economic and democratic development largely depends on ensuring the success of the country’s small and medium-sized enterprises (SMEs). The entrepreneurial and flexible nature of SMEs makes them integral to achieving a number of the country’s goals: economic diversification; closer integration with Europe; building an adaptable economy; stimulating job growth; and boosting productivity.

Ukraine thus seeks to emulate the ways in which SMEs have helped make the U.S. economy among the world’s most successful. Boosting SMEs will require both giving the business community – and SMEs in particular – a seat at the policymaking table, and providing these firms with extensive support and training. CIPE’s partners are playing an important role in both of these processes.

CIPE’s primary focus in Ukraine has been to reduce policy barriers to business through cross-regional advocacy. Since opening the Kyiv office in 2010, CIPE has developed an extensive network of partner business associations and chambers of commerce across the country that work to represent and support Ukraine’s citizens through the work that they do.

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How Mentorships Support Women Entrepreneurs

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Children’s book and toys that were developed as a result of Association of Business Women in Serbia’s mentorship program.

 

Fear of failure. Lack of confidence. Aversion to risk. These are some of the biggest hurdles that one faces when starting a business. Around the world, these challenges are often far more pronounced for women entrepreneurs. The Global Entrepreneurship Monitor 2012 Women’s Report noted that one of the top reasons why there are significantly fewer female entrepreneurs than male entrepreneurs is because women simply believe they are incapable of launching their own businesses.

What can be done to reverse such beliefs?

One answer is fostering a network among women in business through mentorships.

The Association of Business Women in Serbia (ABW) and Red de Empresarias de Nicaragua (REN) both saw a pattern in their countries: women are reluctant to start businesses because they lack role models and the right skillsets to pursue entrepreneurship. To fill this gap, CIPE is supporting both organizations to empower and support aspiring or new women entrepreneurs in Serbia and Nicaragua.

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Can Ukraine Stamp Out its Corruption Culture?

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Ukraine’s “Euromaidan” protests were driven by activists fed up with corruption. Can the new government turn things around?

When it comes to opportunity for anti-corruption reform on a massive scale, few countries have ever been as ripe for change as Ukraine today. Western countries and the International Monetary Fund are pushing hard for transparency and clean government. They enjoy unprecedented leverage over Ukraine’s political and economic elites, who need billions in loans to stave off economic ruin. Ukraine’s populace, which took to the streets a year ago to oust a president reviled for his flamboyant corruption, is maddened at the lack of a single, high-profile corruption prosecution since then. Investors, once attracted to Ukraine by a highly educated workforce, cheap industrial assets, and some of the world’s most fertile farmland, have made it clear that corruption is a deal breaker.

Freshly elected Ukrainian leaders committed to reform and European integration are taking seemingly drastic steps on the anti-corruption front. In October, they passed an impressive package of laws that provide the framework to investigate, prosecute and imprison wrongdoers. Just as important, the new laws require the training and monitoring of the tens of thousands of public servants – from traffic cops to school principals to MPs – who collectively represent the “demand side” of Ukraine’s corruption equation.

To implement these new laws and flesh out the details, Ukraine’s elected leaders are turning to technocrats from countries counted as anti-corruption success stories – mostly Georgia and Lithuania. They are laboring away this winter in various ministries and in the Presidential Administration, trying to figure out how to train and empower the men and women who, in the face of a decades-old corruption culture and vastly outnumbered by colleagues benefiting from the status quo, will be the shock troops of anti-corruption reform. Taken together, these are impressive, ambitious moves in a country of 45 million, by far the largest state in the post-Soviet space to attempt such a housecleaning.

All this was on display last week during a fact-finding mission by CIPE’s lead anti-corruption expert in Ukraine, Drago Kos, who also serves as the chairman of the Working Group on Bribery of the Organisation of Economic Cooperation and Development. Kos, a plainspoken man who began his career in the Slovenian police force, spent a week in Kyiv, building rapport and sharing opinions with the Ukrainians at the forefront of the anti-corruption effort.

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Building a Network of Women Entrepreneurs in Serbia

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By Olivera Popović

While the global economic crisis in 2008 affected many countries worldwide, the shock to Serbia’s society and economy was magnified due to the ongoing transition processes there. For the past fifty years, women in Serbia were most often employed in the public sector as part of Yugoslavia’s socialist planned economy. In the past two decades, the transition from socialism to liberal capitalism and an open market economy has initiated changes in approaches to work and ultimately led to a greater presence of women in business.

In making this transition, women face an uphill battle – in gaining greater access to capital, technology, networks, and acquiring the knowledge to start and grow their businesses. On top of those challenges, the social and economic landscape is characterized by poor labor market outcomes, a high youth unemployment rate, and large long-term unemployment. According to the Regional Cooperation Council (2013), the country’s per capita GDP is currently only 38 percent of the EU average.

Data from the International Labour Organization (ILO) shows that the overall unemployment rate in Serbia is 23.9 percent, with almost 25 of women unemployed. Youth unemployment is remarkably high (51 percent) and even more astonishing, 57 percent of young women are out of work. Equally important, universities in Serbia do not foster enough entrepreneurial spirit among students. Consequentially, students fail to fully consider entrepreneurship as a viable career option.

Recognizing this need for support to aspiring and established women entrepreneurs in a complex economic situation, the Association of Business Women in Serbia (ABW) created “Inspiring Women Entrepreneurship,” a project to strengthen the leadership and entrepreneurial capacity of young women in Serbia.

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The Fall of the Wall: A Moment of Reflection

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This weekend the world celebrated 25 years since the fall of the Berlin Wall — the physical symbol of a divided continent. The Berlin Wall created artificial boundaries between societies, scarring Europe’s economic and political development for generations. The Iron Curtain defined where freedom ended and repression began. 

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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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