By Dash Enkhbayar
The West tends to illustrate Mongolia as an “example of a developing country that, despite the odds, managed to accomplish a peaceful transition to democracy.” However, simply achieving an electoral democracy does not complete a country’s democratic transition. Recent years have shed light on the major institutional flaws that still exists in the country’s public and private sectors.
Sandwiched between China and Russia, Mongolia has been attracting significant attention for the past couple of years due to its rapid economic growth and burgeoning mining sector. It recorded the world’s fastest GDP growth rate in 2011 at 17 percent, which put Mongolia in the international spotlight for investment opportunities.
But corruption, poor governance, and unstable government regulations threaten Mongolia’s economic potential. In 2013, due to unfriendly investment laws such as the Strategic Entities Foreign Investment Law, foreign direct investment (FDI) in Mongolia plummeted by 48 percent, which effectively scared away many investors interested in the nation. Mongolia is, in fact, not a model democracy that it seeks to invoke. Instead, the last few years have demonstrated that unless Mongolia seriously starts tackling its institutional weakness it may succumb to the “resource curse,” in which a country with an abundance of natural resources experiences poor economic growth and a worsening political climate.
The United Nations Universal Declaration of Human Rights states that “Everyone has the right to own property [and] no one shall be arbitrarily deprived of his property.” In Burma, a country in the early stages of its emergence from a half century of military rule and central economic planning, property rights violations could threaten democracy itself.
Burma lacks many institutions necessary for a market-oriented democracy, such as a reliable court system, dependable electricity, and accessible financial services. The country’s physical infrastructure is also woefully inadequate. Paramount among these issues is rampant corruption and terrible public governance – issues that manifest in the “land-grabbing epidemic” which is sparking protest and civic unrest.
Read the rest of this article at the Thomson Reuters blog.
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 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
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.
Youth around the world are agents of change. They are political and economic leaders and participants in their communities, and have many thoughts on how to shape their nation’s future.
As part of celebrating such individuals on International Youth Day, two recent CIPE-Atlas Corps Think Tank LINKS alumni – Fayyaz Yaseen from Pakistan and Iryna Fedets from Ukraine – analyzed two issues young people care about in their communities: youth unemployment and anti-corruption. In this week’s Economic Reform Feature Service articles, the two authors explore how to bring about democratic and economic reform changes in their respective countries.
On April 7, 2012, entrepreneur and longtime women’s right activist Joyce Banda became Malawi’s first female president – and only second on the African continent – after the sudden death of President Bingu wa Mutharika propelled her from the vice presidency to the country’s highest office. In 2014, she placed 40th on the Forbes list of 100 Women Who Lead the World.
What path led her to that meteoric rise and how did she manage to capitalize on her strengths as a woman leader to both overcome personal challenges and face the challenges in front of her country? Last week I had the pleasure of sitting down with Dr. Banda for a candid interview where she talked about her story and its lessons for aspiring women leaders in Africa and around the world.
Before entering politics in 1999 to run for Parliament, Banda started a number of successful businesses and in 1990 founded the National Association of Business Women (NABW). With CIPE support, the organization grew to more than 15,000 members and made an important difference in the lives of women entrepreneurs in Malawi.
What inspired her to become active in business and then in politics? “In 1981, I walked out on an abusive marriage and looking back it became very clear to me that what had gone wrong is that I hadn’t been economically empowered. So I decided to set myself on a path that would ensure that abuse doesn’t happen again,” she said.
Despite its lingering problems, South Africa’s transition from apartheid to democracy provides many valuable lessons.
This week’s U.S.-Africa Leaders Summit focuses on the topic of “Investing in the Next Generation.” The summit aims to explore issues of economic inclusiveness, democratic development and “creating an enabling environment for the next generation.”
This discussion is especially pertinent in the aftermath of the global financial crisis of 2008, when many in developing countries have begun to lose faith in the wisdom of democratic governance and market-based economic reforms. The rise of Chinese and Russian authoritarianism coupled with robust economic growth in those countries provides a seemingly plausible alternative for lifting millions out of poverty while still allowing autocrats to retain a tight grasp on power.
The Centre for Development and Enterprise (CDE), a South African think tank and CIPE partner, examined the post-apartheid experience of South Africa’s transition to market economy and a vibrant democracy in a recently released report entitled “South Africa and the Pursuit of Inclusive Growth.”
As part of a larger initiative known as the “Democracy Consensus”, CDE’s research shows that democracy is a viable path not only for fostering inclusive economic growth in the short- to medium-term, but also laying the foundations for sound institutions that lead to long-term stability and prosperity.