Tag Archives: advocacy

So You Want to Be a Think Tank Superstar?

Posted on 31 January, 2012 by | Comments Off

Alicia Sepúlveda, chief economist and project manager. (Photo: CEDICE)

“In life, everyone chooses the role they want to play, and I chose the role of an economist who believes in freedom…Freedom is a precious treasure, that some say is only valued when it’s lost. Nevertheless, happen what may happen, I want to remember that I fought with the Generation of Knowledge for a free society.” This is what motivates Alicia Sepúlveda to get out the door every day and head to her job as the chief economist and project manager at the Center for the Dissemination of Economic Knowledge (CEDICE), a CIPE partner which was recently ranked the 9th best think tank in Central and South America .

Last week, the University of Pennsylvania’s Think Tanks and Civil Societies Program released the 2011 Global Go-To Think Tank Rankings, in which experts rated more than 5,000 think tanks from around the world in 30 different categories. Venezuela-based CEDICE also came in at 17th in the world in terms of impact on public policy — the only Latin American think tank on that list. Another CIPE partner, the Center for the Implementation of Public Policies Promoting Equity and Growth (CIPPEC) in Argentina, was ranked the fifth best in Central and South America.

Passionate, dedicated staff like Sepúlveda are just one ingredient for top think tanks, which play an important, if often undervalued, role in democratic societies. Successful think tanks not only foster informed, democratic debate of public policies, but also serve to bridge gaps between lawmakers, civil society, and the general public.

These gaps include the  “Operational Gap,” referring to policymakers’ lack of access to tools or information necessary to respond to contemporary challenges and issues. In countries where policymakers don’t have access to reliable research or data, it is hard to make rational policies that are good for the country.

Effective think tanks also help to close the “Participatory Gap,” which arises from the self-perceived exclusion of individuals and private organizations from the policy-making process – that is, the situation where people choose not to participate in policy debates because they do not think they will be heard.

Successful think tanks coordinate policy discussions among civil society and provide a vital voice to economic constituencies. In fact, think tanks can be among the only sources of reliable economic information and data, especially in emerging market countries. Although think tanks represent just one aspect of a vibrant civil society, in many ways they have become the most influential voice of civil society in global policymaking, and can often act as a barometer of the state of a given country’s civil society.

Think tanks can play an important role even in countries where freedom of speech and political participation are limited. For example, the fact that a think tank like CEDICE can operate and impact public policy in a place that is ranked 96th out of 165 countries in democratic freedoms (according to the Economist’s Democracy Index 2010) shows remarkable hope for democracy in Venezuela.

CIPE and CEDICE have worked together since 1995 on projects that have varied in scope from training journalists on economic reporting to employing cost-benefit analysis to evaluate economic legislation and provide informed policy analysis for the public and legislators. Legislators frequently use CEDICE’s analysis in their presentations in the National Assembly, and CEDICE is the most-quoted NGO in the Venezuelan media. The Go-To Think Tank rankings show that CEDICE’s work, with CIPE support, is paying off.

The success CEDICE strives for does not happen overnight. In order to excel at advocacy, a think tank like CEDICE must conduct thorough, objective research, and be able to make their analysis easily consumable. It also requires constant effort from people like Alicia Sepúlveda who truly believe in the organization’s mission.

Even after a full day of economic analysis, phone calls and meetings with legislators, writing press releases, coordinating events, and more, Sepúlveda is not always ready to leave when the day is over. That’s what fighting for a cause you believe in – to promote liberty, entrepreneurship, and free enterprise – looks like. That is the precious treasure she, CEDICE, and CIPE, are working together to protect.

Comments Off

Posted in Latin America and the Caribbean

Tagged , ,

Helping Business Find Its Voice in the Former Soviet Union

Posted on 19 December, 2011 by | Comments Off

The Association for Foreign Investment and Cooperation in Armenia. (Photo: CIPE Partner)

Small business owners in the west Russian city of Primorsk faced a serious threat. A corrupt land privatization auction resulted in many local entrepreneurs losing their leases, which would force the closure of 2,000 businesses and the loss of many more jobs. Individual business owners had little chance of successfully standing up to the powerful interests who had arranged the sale.

After the Fall: 20 Years of Post-Soviet Reform

Fortunately, they didn’t need to act alone: a coalition of 11 local chambers of commerce and business associations representing 1,200 businesses was ready to fight for their rights. The coalition, which had organized as part of a long-term, USAID-funded CIPE program to organize small and medium businesses against corrupt practices in Russia, launched a large-scale publicity campaign, which led to criminal charges being filed against several individuals involved in the corrupt deal and the return of leases to business owners whose businesses were in jeopardy.

The case of the Primorsk coalition is just one example of how CIPE has assisted the private sector throughout the post-Soviet world to take an active role in the policymaking process by forming networks and coalitions of organizations dedicated to advancing democratic governance and market-oriented economic reform. These coalitions are able to identify issues which are of common concern to all business sectors, bring them to the attention of policymakers, and advocate for the implementation of needed reforms.

Throughout the former Soviet Union, coalitions have succeeded in bringing about reforms that have made it easier to open businesses, create jobs, and attract foreign investment while demonstrating the benefits the democratic process can deliver for ordinary citizens.

In Moldova, a network of business associations and chambers adopt an annual National Business Agenda (PDF), outlining the reforms the business community believes most important to improving the country’s economic situation. Following the onset of the global economic crisis, the government swiftly adopted many NBA proposals, including creation of a “one-stop-shop” for business registration and abolishing mandatory capital requirements for start-ups, making it easier to open a business.

In addition to individual legislative successes, many coalitions have established themselves as key drivers of policy is their countries, engaging in ongoing dialogue with public officials. Armenia’s Business Advocacy Network has created an unprecedented deepening of dialogue between the public and private sectors, resulting in the creation in 2011 of a permanent SME Council to ensure that legislation and regulation supports, rather than harms, the creation and growth of small business.

In Russia, the advocacy efforts of local coalitions led to the passage of legislation allowing independent organizations such as business associations to become accredited to review draft laws to determine whether they have the potential to facilitate corruption. And in Kyrgyzstan, members of the National Alliance of Business Associations – a local CIPE-supported coalition – hold seats on 13 newly-established Public Supervisory Councils, through which they add the voice of business to an ongoing dialogue between civil society and state officials.

While efforts such as these unquestionably benefit entrepreneurs by bringing about market-oriented economic reforms, the positive impact of these coalitions is not limited to small business owners. By bringing about reform through civic activism, these coalitions support the development of democratic institutions and processes and demonstrate to everyone the potential of democratic governance to expand opportunities and improve lives.

This post is part of a series on the fall of the Soviet Union, the 20 years of reforms that followed, and the challenges that lie ahead.

Read all of the blogs in this series:

20 Years of Corruption

Democracy in Ukraine: 20 Years Later

Helping Business Find its Voice in the Former Soviet Union

Entrepreneurial Development in Russia

Democracy and the role of the Private Sector

Twenty Years After the USSR, Still Waiting for Freedom

Comments Off

Posted in Eurasia

Tagged , , , , ,

Moldova’s Business Community Puts Democracy into Action

Posted on 30 November, 2011 by | Comments Off
2011 NBA conference

Moldovan Business Associations present the 2012-2013 National Business Agenda to government. (Source: IDSI)

Last week, more than 30 business associations and chambers of commerce from across Moldova presented to the government their priorities for reform outlined in the third National Business Agenda for 2012-2013. The more than 70 participants included representatives of the NBA network and its coordinating council, government officials, media, civil society, and donor organizations. The conference was attended by the Minister of Finance, Veaceslav Negruta, the Head of the Parliamentary Committee on Economy, Budget and Finance, Veaceslav Ionita, the Economic Adviser of the Prime Minister, Constanta Popescu-Mereacre, and the Head of Entrepreneurship Department at the Ministry of Economy, Cezar Ilias.

Representatives of the coordinating council presented two key priorities: reforming tax collection and customs administration. While speaking about these two problem areas, they focused mostly on explaining their 13 proposals that included specific solutions, among which were the following:
• preparation of an official interpretation of the Tax Code to eliminate arbitrary interpretation by various officials;
• clarification of specific functions of state agencies in charge of inspecting business activities;
• increasing transparency of and providing access to information in regards to all import-export transactions by publishing all customs requirements and regulations on the website of the Customs Service;
• simplification of import-export procedures through official amendments to the Customs Code rather than through internal documents that are not accessible to business; and
• creation of a one-stop shop for all customs processing.

At the same time, the conference discussions were centered on reviewing the results of the proposals from 2010 NBA which also focused on the tax and customs reform. Out of 17 proposals, two are already being implemented, three are partially implemented, while the remaining 12 proposals are still to be adopted and implemented.

To prepare the new proposals and monitor the implementation of the 2010 NBA proposals, the NBA network created separate working groups that the Institute for Development and Social Initiatives, CIPE’s partner in this program, helped facilitate and provide technical and analytical support for. What is interesting is that the working group on monitoring the 2010 NBA proposals was the most active working group with the most members (about 12) from various associations. This shows that the private sector is much more eager to see what happens with their proposals and ensure that relevant government agencies respond to their proposals and implement the proposed changes.

Igor Crapivca, head of the Business Club “Timpul” and one of the members of the network’s coordinating council, said that the private sector provides significantly higher contributions to the national budget then the inflows from the International Monetary Fund and the World Bank; therefore, the government needs to listen to the views of its business community. Since the business sector is the largest taxpayer, the government needs to provide a sound climate for economic activities. The head of the Parliamentary Committee for Economy, Budget and Finance, Viaceslav Ionita, said that starting in December 2011 the Parliament will introduce an information system through which the parliament will be able to communicate directly with the business community in regards to the economic legislation under discussion. The head of Entrepreneurship Department at the Ministry of Economy, Cezar Ilias, mentioned that at the end of December his Ministry will create a working group in charge of communication with the business community. Tatiana Lariusin, IDIS’s Senior Economist who is coordinating the NBA program together with CIPE, said that the dialogue between business and government needs to be continuous and transparent, not in the corridors of the parliament or government buildings that can be detrimental to both.

The last session of the conference focused on next steps for the NBA network and how to make the public-private dialogue more effective. The conclusions were that the network needs to disseminate more information about the working groups’ activities and the process the private sectors goes through to prepare and monitor the NBAs. When the proposals are put forward to government, the network also needs to explain the process behind the NBA proposals: how the network consulted with their business members from various associations across the country, how they conducted the analysis of the priorities, and what the discussion process was to come to consensus on the proposals and solutions. The representatives of the NBA network also agreed to launch a media campaign to ensure that there is broad public support and understanding of the reform proposals under the NBA process.

Comments Off

Posted in Eastern Europe, Global

Tagged , , , , , ,

From Business Advocacy to Bed & Breakfasts…

Posted on 11 November, 2011 by | Comments Off

Matluba Uljabaeva and Valeria Klitsounova presenting at a CIPE-Eurasia Foundation roundtable in Washington D.C. Photo: Ariel Perkins/Eurasia Foundation

Navigating the intricacies of Eurasia’s business climate is a daunting task. The recent global economic crisis casts an environment of economic uncertainty, especially for the region’s small and medium enterprises (SMEs). Matluba Uljabaeva and Valeria Klitsounova, this year’s Eurasia Foundation Bill Maynes Fellows, have proved to be great examples of how entrepreneurs can advocate for reform and overcome the odds.

Uljabaeva and Klitsounova have successfully started businesses and organizations in Belarus and Tajikistan. They have also advocated before legislative bodies with other SME owners and community organizers to improve the business climate there. Their stories provide a glimpse into successful efforts in bringing about change in Eurasia’s challenging business environments.

Matluba Uljabaeva is the the Chairwoman of the National Association of Small and Medium Business of Tajikistan (NASMB), the current national leader for the promotion of small business development in Tajikistan. She has worked closely with the Government of Tajikistan, international development agencies, and regional business associations in promoting the interests of SMEs in the country. By working together, Matluba Uljabaeva and her partners were able to advocate for a significant reduction in tax rates in 2008 – a great victory for the SME community. Also, with the help of the Eurasia Foundation of Central Asia, Matluba helped establish the American Chamber of Commerce in Tajikistan, an organization that tirelessly continues to promote SMEs in the country.

Valeria Klitsounova is the Chairwoman of Country Escape: The Association for Rural and Ecotourism in Belarus. For nearly 15 years she has advocated for SMEs in Belarus by trying to develop agrotourism in the Belarusian countryside. In working with the rural SME owners, Dr. Klitsounova has helped to bring about sustainable long term economic solutions that have led to a countrywide phenomenon of growing village-run Bed & Breakfasts. Belarusian Bed & Breakfasts now attract thousands of tourists yearly, not only from Belarus but also from neighboring Russia, Poland and Lithuania. More importantly, her advocacy efforts were instrumental in passing national legislation simplifying the operating environment for small businesses in Belarus.

Looking at the economic climate around the world and the political situations in their own countries, Eurasia’s SME owners may ask, what lies ahead? While many challenges still exist, the SME community through organized advocacy can lay the groundwork for overcoming them, even in countries where it does not seem possible at a first sight.

Comments Off

Posted in Eastern Europe

Tagged , ,

Do you have a story to tell?

Posted on 19 October, 2011 by | Comments Off

(photo source: http://www.mrisakson.com/10th-grade-english/in-class-writing-prompts/)

Young people around the world are pushing for change.

In Bhutan, a young democracy that was once the world’s most reclusive kingdom, youth are beginning to assert their voices. A group of young people recently spearheaded a social media campaign challenging the ruling conservative elites about a new anti-smoking law that has jailed over 50 people for simply possessing tobacco. Speaking against the government was unimaginable even a few years ago in Bhutan, but the younger generation is embracing their new democratic rights.

In the Arab world where democratic transition was once unthinkable, young people played an important role throughout the Middle East and North Africa to oust their corrupt, autocratic rulers. As the Arab Spring progresses, youth will undeniably have a role as countries begin to embark on their new democratic paths.

Do young people in your country have similar stories to tell? If so, CIPE wants to know! We invite youth (aged 18 – 30) from around the world to share their ideas on democratic and economic development.  There’s less than one month left to tell us, so don’t wait until the last minute to enter the essay contest! The deadline is November 14th, 2011 and you can submit your essay here.

Comments Off

Posted in Global

Tagged , , , , ,

Advocating for Energy Reforms in Pakistan

Posted on 18 October, 2011 by | 3 Comments

Pakistan's private sector seeks to diversify the country's energy supply. Pictured is a diesel power plant in Pakistan. Photo: http://www.power-technology.com/

Pakistan’s inability to generate enough energy is one of the key reasons for slow economic growth in the country. Pakistan generates around 10-12,000 megawatts per day, which is not enough to meet the demand for over 20,000 megawatts. Circular debt and lack of investment in power plants have prevented the country from meeting its energy demands, leaving business, industry, and regular citizens to suffer.

In fact, regular power outages ranging anywhere from 4 to 12 hours a day are becoming a norm. There have been protests across the country, some resulting in violence and deaths.

Pakistan’s business associations estimated earlier this year that the ongoing energy crisis may lead to 1.6 million job losses. Refusing to stand back and watch the economy suffer, they launched an advocacy effort to reform the energy sector and attract the needed investment to increase power generation.

As a result of continued pressure from business associations, in April this year President Zardari formed a taskforce to look into power sector reforms in the country. After months of work, last week the National Assembly of Pakistan finally passed a law to facilitate investment in the power sector. According to the law:

There is also a shift in emphasis from thermal to hydel and coal-based power generation, and private investors are already showing interest in undertaking such projects. For this purpose, PPIB [Private Power & Infrastructure Board] will be required to play a more proactive role in power sector, which is being transformed into a competitive power market in Pakistan.There is growing realisation in power sector of Pakistan that for the envisioned objectives to promote, encourage and facilitate private investment in private power sector and for that matter to implement the Power Policy, a permanent statutory body must be created to fill in the current legal and administrative vacuum that is bringing about various technical, legal and administrative issues.

For the past several years, CIPE has brought chambers of commerce together at an annual presidents’ conference to get the business community to coalesce around a common set of issues and become a voice for reform in Pakistan. This year’s meeting ended with a declaration on much needed reforms in the energy sector, which are beginning to bear fruit with a passage of a new investment law.

→ 3 Comments

Posted in South Asia

Tagged , , ,

The many voices of the Arab private sector

Posted on 12 October, 2011 by | Comments Off

Members of the Iraqi Business Council, a diverse private sector coalition, meet to discuss policy issues. (photo: CIPE)

As we mark the passing of eight months since the start of the historic Arab Spring in Sidi Bouzid, to many people in the region the term “private sector” invokes the image of a group of indistinguishable wealthy oligarchs connected to the state, not Mohammed Bouazizi, the struggling vegetable vendor whose self-immolation literally sparked the riots that toppled leaders across the region and continues to do so.

This skewed view leads one to believe the private sector is a monolith, and that when it pushes for something, it pushes in one direction with all its weight. That view, however, overlooks the fact that the private sector is a diverse segment of society with many different players and opinions.

I was reminded of this at a recent meeting in Iraq. The meeting included members of Iraq’s manufacturing sectors and Iraqi merchants making their living importing and selling foreign goods. The topic was customs fees that the Iraqi government levies on imports, and the participants wanted to reach a consensus so that they could effectively advocate policy to public officials.

The importers spoke first. “Deregulate. Facilitate the entry of goods. Allow Iraqis to benefit from affordable products,” they cried out. Anybody who caught those sound bites might have concluded that the Iraqi private sector opposes all import duties.

“Competition must be fair,” the manufacturers retorted. “If foreign governments insist on subsidizing their goods in order to flood our markets, our government must prevent the people from drowning.” According to this perspective, the private sector has shifted its stance and become an advocate for protective tariffs.

Back-and-forth the argument swung as these business leaders tried to weld their diametrically opposed views together to form a consensus. In the end, they could only agree that keeping tariffs on raw materials low would benefit them all. Beyond that, consensus on this issue remained impossible.

The implementation of customs duties is not a superficial wedge issue. Nor are Iraqi business leaders the first in history to be pitted against each other by it. In reality, the private sector, like the society it reflects, rarely achieves anything approaching unanimous consensus.

The futility of private sector consensus does not mean that businessmen and women should avoid advocating policy, however. While policies can create winners and losers, they do not do so in the same proportions. Only when the many diverse elements of the private sector effectively engage their officials to make their needs known can the government implement policy that positively impacts society on the whole.

Too long has the Arab private sector’s channel of communication to its governments been limited to its well connected sliver. For the recent uprisings to succeed in delivering better lives to citizens across Arab nations, the private sector in all its diversity – from big manufacturers and merchants to the vegetable and fruit sellers peddling their produce on carts – will have to effectively assess its needs and communicate them to policymakers. As countries across the Arab world transition to democracy, policymakers must take those needs into account.

Comments Off

Posted in Middle East and North Africa

Tagged , ,