Category Archives: Global

An Agenda to “Do Development Differently”

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Successful implementation of the post-2015 development agenda requires some important behavior changes and a commitment to “do development differently” by the various stakeholders pledging to reach this ambitious set of goals. What does that involve exactly?

In this month’s Economic Reform Feature Service article, James Michel, a renowned expert in international development cooperation and a senior adviser to CSIS, discusses the ambitious post-2015 Sustainable Development Goals (SDGs). The article is a continuation of Michel’s earlier work on shaping the new development agenda and it is based on a research paper recently published by the Center for Strategic and International Studies (CSIS).

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Carrots Before Sticks: Celebrating International Anti-Corruption Day with Successful Anti-Corruption Approaches

On Wednesday the world celebrated the International Anti-Corruption Day, designated in 2003 by the United Nations (UN) General Assembly when it adopted the UN Convention against Corruption. Recognizing the importance of fighting corruption in that way was a major step in a growing global effort to remove the taboo around addressing corruption in the international discourse on development. Indeed, the new expectation of governments and businesses alike is to face corruption head on everywhere it cripples democracies and markets.

This year’s theme for the International Anti-Corruption Day is breaking the corruption chain. CIPE’s work with private sector organizations in countries around the world reflects precisely that objective. In many environments where corruption has become entrenched, is very hard for an individual or a company to stand up against abuses such as bribery or extortion. Furthermore, it is hard for businesses to make a credible commitment to integrity without sufficient knowledge on how to build proper management systems to prevent corruption in daily operations. These limitations can be overcome through better anti-corruption compliance and collective action. These private sector-led approaches have the power to break corruption chains and make a real difference.

Earlier this year my colleague Frank Brown and I presented CIPE’s experiences from Russia, Kenya, Ukraine, and Thailand at the Society of Corporate Compliance and Ethics Institute in Las Vegas. To celebrate the International Anti-Corruption Day, we captured key takeaways from our presentation in CIPE’s latest Economic Reform Feature Service article:

Article at a glance:

  • Corruption is primarily an institutional issue and combating it requires proactively preventing corrupt practices through supply- and demand-side reforms.
  • Collective action and anti-corruption compliance are practical approaches that reform-minded businesses can use to build a critical mass of companies committed to operating with integrity.

Companies in emerging markets can greatly benefit from improving their anti-corruption practices, which makes them more attractive business partners in global value chains.

Read the whole article here.

Anna Kompanek is Director for Multiregional Programs at CIPE.

Sustainable Development through the Open Government Partnership? Yes, with the Private Sector

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When the Open Government Partnership chose the theme of Openness for All: Enabling Sustainable Development for the 2015 Global Summit in Mexico City, it signaled more than a healthy interest in the Sustainable Development Goals recently proclaimed in New York. OGP was expressing the value of openness as a means to progress on issues that matter to citizens, in addition to achieving openness for its own sake.

As United Nations Development Programme Administrator Helen Clark noted at the summit opening, “transparent, accountable, and responsive institutions and governance” are key to achieving progress across the Sustainable Development Goals.”

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How Can Economic Reforms Contribute to Democratic Renewal?

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The 8th Assembly of the World Movement for Democracy, in Seoul, Korea, focused on ways to renew democracy, prevent backsliding, and sustain democratic transitions. In line with this theme, CIPE organized a workshop for participants to share experiences in balancing economic and political reform priorities and engaging civil society to drive reforms.

The speakers focused on two of the four dimensions in the Steering Committee’s “Call for Democratic Renewal”: the need to prepare civil society to protect fragile new democracies and the need to restore the credibility of mature democracies. They also stressed the need for two-way international engagement.

Across the world, poor governance and an overbearing state have presented themselves in the form of land grabbing and weak property rights; the denial of opportunities to women, local communities, and small businesses; and the suppression of efforts to build civil society. Specific challenges cited include efforts to deprive women of their rights in Cambodia, Bangladesh, and Morocco; unbalanced economic reforms that neglected political reforms in the Middle East; and restrictions on independent civil society organizations including business associations in Vietnam and China.

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Keeping the Economy on the Radar, Even in the Hardest Times

A new job category in Aleppo -- "the crosser" who ferries good across the border under dangerous conditions. (Photo: Syrian Economic Forum)

A new job category in Aleppo — “the crosser” who ferries good across the border under dangerous conditions. (Photo: Syrian Economic Forum)

In Beirut during Lebanon’s civil war, people continued to go to school and attend theater performances. One woman once told me how, to get to her university, she would take a taxi to the line between East and West Beirut, dash to the other side behind overturned trash dumpsters to avoid snipers, and then catch another ride to university — always with a change of clothing in case she could not get home again for a while.

Not every war sees people able to defiantly and bravely continue school and go to the theater, but the story underscores an important point left out of most news reports: conflict is not a permanent state…even during conflict.

Media reports show the most bullet-ridden, shell resounding, civilian-fleeing dramatic moments, but even in situations of all-out war, pockets of fighting revolve and front lines move. Whenever there is a lull in violence, civilians generally try to make life go on as much as they can, however they can. And that includes the economy. Farmers will return to their fields and factories will resume operation as often as possible, and people will buy, sell, and barter what they need to survive. And yes, sometimes they even study for exams by candle in hallways lined with mattresses during shelling (another story I once heard from another Lebanese).

Recently, a group of CIPE staff with experience in conflict-affected settings formed a task force to do some more thinking about CIPE’s own projects in conflict-affected areas. We found it interesting that we work with local groups in areas that range from unstable to war-torn, but that we rarely think of them as “conflict projects” per se. So we started throwing around a lot of questions: is it worth even thinking of our projects through a conflict lens ? (Short answer: yes.) What is our approach to conflict and is it unique? What are the various ways CIPE has either reacted programmatically to conflict, or designed programs to be conflict sensitive?

We’re still thinking, but we have started to articulate what we think we know (more on that at the end of this post). So here it goes…

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Fighting Kleptocracy

The world -- including global financial centers -- needs to come together to fight kleptocracy. (Photo: Wikimedia Commons)

The world — including global financial centers — needs to come together to fight kleptocracy. (Photo: Wikimedia Commons)

Corruption is often thought of as an individual problem where a corrupt official abuses his or her government position for personal gain. But what happens when an entire government, or the ruling class of an entire country, is engaged in corruption? When corruption becomes systematic and institutionalized, the damage is much greater – and the tools to fight it increasingly require international cooperation.

Two weeks ago the World Movement for Democracy held its eighth international conference in Seoul, Korea. Discussions of the corrosive effect corruption have on democratic renewal abounded throughout the conference. However, a discussion on kleptocracy chaired by the National Endowment for Democracy’s Carl Gershman brought out the enormous scale of illicit cash flows from kleptocratic governments, and the direct influence they can have on enabling authoritarian push-back was made clear. Presenters on the panel highlighted the need for both international coordination on efforts to improve investigation, journalism, and the tracking of money flows, and also support for in-country efforts to strengthen local watchdogs and activists.

From the CIPE perspective, we offered a strategy based on the old adage “follow the money”: to contend with and reduce capital flows from illicit gains we need to understand how such funds are siphoned off, how they move around the world, and what institutional responses we can promote to slow and stop them. Kleptocrats often use a mixture of state and private institutions to steal money, and then establish complex networks of shell companies and other fronts to launder funds. They then use global financial institutions to move “clean” money into markets where it can be securely invested.  A comprehensive strategy is needed to combat this complex crime at all levels.

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Global Entrepreneurship Week Q&A with Karen Kerrigan

kerrigan_karenKaren Kerrigan is the president & CEO of the Small Business & Entrepreneurship Council and a board member and former chair of CIPE. For more than twenty years Kerrigan’s leadership, advocacy and training work has helped foster U.S. entrepreneurship and global small business growth.She regularly testifies before the U.S. Congress on the key issues impacting entrepreneurs and the economy, and has been appointed to numerous federal advisory boards including the National Women’s Business Council, the U.S.-Iraq Business Dialog, the U.S. Treasury’s Taxpayer Advisory Panel, and the National Advisory Committee for Labor Provisions of U.S. Free Trade Agreements. Kerrigan regularly engages with the President’s cabinet and key advisors, and has participated in several White House economic summits, scores of events hosted by the U.S. SBA, U.S. Treasury Department and other federal government agencies and departments.  She has written hundreds of Op-Eds and newspaper columns, and regularly appears on national television and talk radio programs.

Medhawi Giri interviewed Kerrigan for CIPE.

How did you get started in the path to entrepreneurship and what motivated you initially?

My path to entrepreneurship was a journey. Before starting out on my own, I had a variety of career experiences that helped me build critical skills that are necessary for successful entrepreneurship.  These skills and experiences provided me with confidence and know-how.  The motivation to start my own business came about when several factors aligned.  I saw a need in the marketplace. I had a desire to work on my own terms and innovate and create with fewer restrictions. In addition, I wanted financial independence. Of course, I was passionate about my idea and business opportunity and felt confident in my ability to execute. The bottom line is I wanted more freedom, and entrepreneurship allowed for that.

When you were getting started, how difficult was it to bring your idea to life and to make a business out of it?

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