Category Archives: Latin America and the Caribbean

Training Political Parties for Democracy

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A new Congress is inaugurated in Colombia.

Strong and well-functioning political parties are an essential component to any thriving democracy.  Political parties link citizens and their governments, represent the interests of constituents, and influence economic policymaking. In any political system, a party’s capacity to influence policy determines its success, so party platforms are instrumental for parties to participate effectively in the discussion and implementation of policies.  The party platform outlines a set of policy alternatives that the party seeks to implement.  The economic component of a party platform is crucial to create and implement policies that deliver economic growth and opportunities to people.

The ideas presented in political party’s economic platform will influence the operation of businesses and shape national economic policy. These platforms are not static documents as they continually evolve and respond to the challenges a country faces at a particular moment in time.  Successful political parties will be ready to revise and adapt the economic component of their platforms to changing economic conditions. Training political parties to not only develop solid economic platforms but to revise and respond to ever changing economic conditions is an important initiative in the efforts to support thriving market oriented democracies.

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Case Studies on Democratic Reform in Yemen and Paraguay

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Democracy is a process of governance most often based on compromise, grounded in broad-based inclusiveness of differing viewpoints and the representation of diverse constituency interests. While free and fair elections are certainly one of the most recognizable hallmarks of the democratic process, a vibrant dialogue between political candidates preceding an election makes a vitally important contribution to the quality of governance.

Candidate debates serve multiple purposes. First, debates inform the electorate of the issues being considered. Second, televised debates offer an opportunity for voters to form an opinion and differentiate between candidates based on the substance of their policy positions. Third, debates promote transparency and improve the quality of democratic governance as candidates are able to directly express their views to the electorate, engage with their colleagues, and elevate certain issues over others in the national consciousness. Similarly, input from the private sector and civil society in the formulation of economic and social policy is another characteristic of a vibrant democracy as broad-based participation in the policymaking process ensures that proposed legislation represents the interests of all constituents.

CIPE possesses over thirty years of experience in strengthening democracy worldwide and promoting market oriented reforms in various country contexts. In the forthcoming publication Strategies for Policy Reform, two case studies from Paraguay and Yemen represent distinct approaches to ensuring that democracy delivers economic and political freedoms to citizens. 

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Focus on Youth Entrepreneurship in Peru and Nepal

CIPE recently published two new case studies on youth entrepreneurship programs in Peru and Nepal. Learn more about the dynamic young entrepreneurs who make these programs a success below.

Anil Parajuli

Nepal

parajuliAnil Parajuli attended the 11th Arthalaya program in early 2011 when he was pursuing his Bachelor’s in Development studies. After attending Arthalaya, he started a honey farm named “The Busy Bee” in a suburban town south of Kathmandu. He produces organic honey and sells it to selected clientele in Kathmandu. Anil says “It was Arthalaya that taught me it is important to get started and any small exchange that is based on voluntary exchange and value addition is a big contribution to the overall development of a society.” Arthalaya inspired him to continue his education in entrepreneurship by pursuing a MBA in Entrepreneurship at Kings College. He plans to open a resort near his honey farm once he graduates.

Antonella Romero Jimenez

Ica, Peru

EmprendeAhora ignited the entrepreneurial spark in Antonella Romero Jimenez when she was a participant in 2010. Hailing from the Ica region of Peru, Antonella had not previously given much thought to starting her own business, claiming that in her region “there had never been a program that promoted entrepreneurship among youth.” During the EmprendeAhora educational program, Antonella learned how to create her own business plan and afterward decided to open two cafes called “Káva – Café Peruano” at two universities in the Ica region. Antonella understands the impact entrepreneurship has on her country, saying “it fosters economic development and generates employment for myself and others in my region. Káva itself provides jobs for 12 people – all young women between the ages of 19 and 22.

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Broadband Internet Access and Development in Latin America and the Caribbean

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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.

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Why Free Enterprise Matters for Democracy in Venezuela

By Gustavo Guerrero and Laura Boyette

The economic and political climate in Venezuela today has grown to crisis levels as the government consolidates power and limits the freedoms of entrepreneurs and the private sector through harmful legislation and the nationalization of private businesses. In the face of these challenges, the Federation of Chambers and Associations of Commerce and Production (FEDECAMARAS) continues working hard to advocate for policies that will grow the Venezuelan economy and provide more opportunities to young entrepreneurs, both of which are essential to creating a brighter future for Venezuela. In May Jorge Roig, President of FEDECAMARAS, sat down for an interview with CIPE and discussed the role of the private sector and its advocates in Venezuela.

Roig stressed the importance of cooperation between business, society, and government, saying that without engaging these groups in dialogue, substantive change will not occur. In recent years, the Chávez and Maduro governments have depicted the private sector and organizations such as FEDECAMARAS as the source of Venezuela’s economic problems, claiming they have political aspirations. However, Roig defined the role of FEDECAMARAS very clearly – not to be a political power, but rather to influence it on behalf of entrepreneurs. Furthermore, organizations such as FEDECAMARAS not only protect free enterprise, but also support democratic values and act in the best interests of the society as a whole.

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Implementation Gaps and Public Information in Argentina

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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.

No Laughing Matter: Press Freedom in Latin America Takes a Hit

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“Police and prosecutors search the home of Fernando Villavicencio and take documentation of corruption.” – Cartoon by Xavier Bonilla, published in El Universo on December 28, 2013.

Read about CIPE’s 2014 Global Editorial Cartoon Competition.

In recent years, Latin America has seen an overall shift away from media independence and freedom of the press — only one in 50 Latin Americans live in free media environments, according to Freedom House, even though the majority of Latin American countries are still democracies. The biggest drop — 15 points in the last five years — was in Ecuador, a clear illustration of the problems that can occur when democratically elected leaders curtail media freedom.

After Rafael Correa took office on a wave of populist charisma in 2007, the Ecuadorian media began to realize that they needed to watch themselves due to various acts against independent media that alleged corruption in the Correa family or the Correa administration. These attacks against press freedom were formally legalized with the Organic Law on Communications, passed in 2012 without open debate in the National Assembly or among civil society.

This law, which Correa lauded as a step toward the democratization of media and a strengthening of freedom of expression as it broke up a near-monopoly of news sources owned by a single family, also opened the door to greater state intervention in the media.

The major concern for media outlets is that many aspects of the law were left ambiguous, allowing for broad interpretation and arbitrary application. For instance, Article 26 of the law prohibits “media lynching” and allows public officials being investigated for corruption by the media to sue the journalist or the newspaper doing the investigating. Article 71 of the law defines information as a “public good” equal to water quality and electricity, and therefore subject to increased regulation by the state.

The most recent case of the Correa administration battling perceived defamation in the media is that of Xavier Bonilla, a political cartoonist known by the pen name Bonil.

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