Tag Archives: democracy

Carrying Crude Oil to Newcastle: The Resource Curse Strikes Again in Nigeria

Source: Newswire NGR

Source: Newswire NGR

By Otito Greg-Obi

On May 20th, 2015 the lights went out in Nigeria, Africa’s biggest oil producer. Nigeria suffers from a phenomenon known as the curse of oil which is a subset of a larger issue known as the resource curse. The idea behind the curse of oil is that countries with large oil reserves cannot seem to manage revenues in a way that benefits the majority of the population economically and socially. Some of the symptoms of the curse of oil include lack of economic diversification, revenue volatility, inability to provide public goods and services, corruption, government inefficiency and the Dutch Disease.

As soon as the massive fuel shortage in Nigeria struck, numerous businesses and banks shut down. Power outages also affected common households because neighborhoods are typically powered by individually owned generators due to inconsistent provision of public utilities. As soon as licensed gas stations closed down, black market vendors looking to make a quick Naira (Nigeria’s currency) began selling low quality oil at exorbitant prices. The shortage exemplifies the curse of oil by revealing an inability to provide a crucial public good. Furthermore, the shortage unveils the existence of corruption in black market practices.

Oil importers shut down operations claiming that the government owed them $2 billion. Nigeria’s Minister of Finance Okonjo-Iweala countered that importers misrepresented the debt in an attempt to recover lost revenue from the recent decrease in value of the Naira due to global declining oil prices. The global decrease of oil prices is a perfect example of the volatility that comes with the curse of oil and how it can complicate economic transactions between the governments and oil corporations.

Fortunately, oil suppliers and distributors eventually met with the government for negotiations that put an end to the crisis. The specifics of the negotiations have not been revealed but it appears that the crisis has been averted for now. But as global oil prices continue to decline, economic shocks are imminent. What will the government do to thwart the curse of oil?

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Feature Service Highlight: Ronald Coase’s Views on the Conduct of Economics

Mary Shirley delivering her speech at  the "The Next Generation of Discovery: Research and Policy Change Inspired by Ronald Coase" conference in March 2015.

Mary Shirley delivering her speech at the “The Next Generation of Discovery: Research and Policy Change Inspired by Ronald Coase” conference in March 2015.

Ronald Coase would often say that if Darwin were to come back to earth today, he would be amazed at how much biology has progressed since The Origin of Species. Whereas if Adam Smith came back today and looked at economics, he would be amazed at how little has changed since he wrote The Wealth of Nations.

– Mary Shirley, President of the Ronald Coase Institute

CIPE’s latest Economic Reform Feature Service article features President of the Ronald Coase Institute Mary Shirley’s speech delivered at a conference co-hosted by the Ronald Coase Institute and CIPE on the topic “The Next Generation of Discovery: Research and Policy Change Inspired by Ronald Coase.” The conference, which was held in March this year, honored Ronald Coase – one of the most influential economists of the 20th century – and celebrated his important contributions to the field of economics. 

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CIPE Launches First Annual Photo Competition

Photo: © 2011 Swapping aid for trade in northern Uganda, Pete Lewis/UK Department for International Development

Photo: © 2011 Swapping aid for trade in northern Uganda, Pete Lewis/UK Department for International Development

“There is one thing the photograph must contain, the humanity of the moment.” – Robert Frank

Show us your best story-telling photo

Do you like to tell stories through photography? Then show us your best work! The first annual Center for International Private Enterprise (CIPE) Photo Competition is now open for submissions.

Open to participants of all ages, including student, amateur, and professional photographers, the inaugural photo competition will focus on the theme of Entrepreneurship.

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The New Middle East: An Uncertain Future

Map of Middle East Region

By Bahaa Eddin Al Dahoudi, CIPE-Atlas Corps Think Tank LINKS Fellow

What future awaits the Middle East? This question remains pivotal following the outbreak of the Arab revolutions four years ago. It keeps popping up as regional developments arise, especially with the decline of democracy and presence of revolutionary forces in many Arab countries. The region’s resort to military tools is increasing due to the rise of terrorism, violence, and political polarization, a decline of charismatic leaders, and a lack of support for institutional structures and democratic transitions. In a Middle East where “there is no winner,” two vital questions emerge: Is the Arab revolution the reason behind the chaos and collapses? And, what are the future scenarios for this inflamed region?

I would argue that the Arab revolution is not the reason behind the current chaos. Knowing the history of revolutions, it can be understood that the development of a revolution is subject to consecutive waves of ups and downs. Resistance from old patterns against new revolutionary movements seeking a change are to be expected. In other words, what happened in the Arab world was historic but also unavoidable. Regimes that refused to change and reform – and instead accepted the equation of corruption and the status quo— had to fall one day. If it hadn’t happened in 2011, it would have happened another time. Thus, it is not beneficial to simply look back at the past and remember the good old days. Instead, one must look to the future and start preparing for what will come next. Thus, the real question we must ask is: What future awaits us in the Middle East?

What future awaits the Middle East? It is a region where Syria has collapsed, Iraq and Yemen are divided, Libya is shattered, and Egypt and the Gulf countries face huge security, economic, and political challenges. What future awaits countries where oil is the main determinant of the principles and rules of political games? All while international statistics say the region is witnessing explosions in population, rising unemployment rates, and declining quality of health and education services.

Are we about to witness an Islamic Middle East ruled under a Caliphate model? Will there be a democratic Middle East where people will again revolt against dictatorship in hope of creating a change? Or will the Middle East become a sectarian region filled with disputes, conflicts, and divided small states?

There are many outstanding questions and no one can definitively predict the outcomes. Undoubtedly, the years to come will carry more ambiguity in the political, socioeconomic, and cultural spheres in that region. In the meantime, we can continue to support freedom of speech of the people with the hope that the ultimate outcomes reflect the choices of the people of this region.

CIPE-Atlas Corps Think Tank LINKS Fellowship brings talented young professionals with strong research backgrounds to shadow researchers and experts at leading U.S. think tanks for six months. Bahaa Eddin Al Dahoudi is serving at Project on Middle East Democracy (POMED).

CIPE Pakistan Releases 2014 Activities Report

Pakistan Compliance Photo

Shell Pakistan procurement manager Mehnaz J. Mohajir speaking at a CIPE compliance training event in Karachi in October 2014.

The Center for International Private Enterprise (CIPE) has been working in Pakistan for the past eight years encouraging private sector-driven economic reform and increasing the role of the private sector in the country’s democratic process.

CIPE’s Pakistan office just released its 2014 Pakistan Activities Report, which profiles an array of innovative programs that encourage private sector inclusion in the policy-making process. Highlights include:

  • CIPE partner the Policy Research Institute of the Market Economy (PRIME), an Islamabad-based think tank, developed three “scorecards” that track how well the government has implemented its economic reform agenda. The reports are available at http://govpolicyscorecard.com.pk/. These reports show that the government has made little progress toward implementing the reforms promised in its election manifesto.
  • CIPE Pakistan began a new program this year that mobilizes the private sector as a leading force in reducing bribery, extortion, and other forms of corruption. CIPE organized activities with its partner the Overseas Investor Chamber of Commerce and Industry (OICCI) to highlight the anti-corruption and corporate compliance issues faced by mid-sized firms seeking to enter global supply chains, and provided training and tools to help these companies develop anti-corruption programs in their organizations.
  • CIPE, its partners, and other organizations continued to organize activities to promote the culture of entrepreneurship in Pakistan. CIPE, in association with the Islamabad Chamber of Commerce & Industry, organized a conference titled “How corruption hampers entrepreneurship?” Students from various universities participated in the discussions and developed a greater understanding of the importance of combating the corrupt practices that hinder business activity in the country.
  • Four key chambers from Karachi, Islamabad, Gujranwala and Faisalabad organized the annual “All Pakistan Chambers President Conference.” This event provided the business community with the opportunity to discuss the government’s performance on economic reforms and share their concerns over the lack of progress in a number of areas.
  • CIPE held workshops and seminars with women chambers to help them build their membership, strengthen their internal governance processes, and improve their management capacity.
  • CIPE continued to work with partners such as the Institute of Chartered Accountants of Pakistan (ICAP), Securities and Exchange Commission of Pakistan (SECP), the World Bank, and International Finance Corporation (IFC) to press for the implementation of the Rules of Corporate Governance for Public Sector Companies, and to highlight how corporate governance can strengthen family-owned companies.

In 2015, CIPE Pakistan, through the support of its partners and with valuable guidance from its Project Advisory Committee, will continue to serve and strengthen democracy through private sector driven market-oriented reforms.

Read the full 2014 Pakistan Activities Report here.

Emad Sohail is Senior Program Officer for CIPE Pakistan.

A Way Forward for a Viable Syria

From left to right: Abdulwahab Alkebsi, Ayman Tabba, Ellen Laipson, and Geneive Abdo discussing the role  of private sector and civil society democrats in reshaping Syria and countering extremism.

From left to right: Abdulwahab Alkebsi, Ayman Tabba, Ellen Laipson, and Geneive Abdo discussing the role of private sector and civil society democrats in reshaping Syria and countering extremism.

“We hear a lot about Syria— we hear the narrative of the Syrian government, we hear the narrative of ISIS, we hear the narrative of some of the opposition groups, but we don’t usually hear from the private sector, about what’s going on.”  

With this introduction, CIPE Regional Director for the Middle East and North Africa Abdulwahab Alkebsi opened a panel discussion on May 21 co-hosted by CIPE and the Stimson Center entitled “A Way Forward for a Viable Syria: An Insider Perspective from the Private Sector and Civil Society.” The panel featured Chairman on CIPE partner, the Syrian Economic Forum (SEF) Ayman Tabbaa, President and Chief Executive Officer of the Stimon Center Ellen Laipson, and Middle East Fellow at the Stimson Center Geneive Abdo. The panelists discussed the role of democrats from the private sector and civil society in reshaping Syria and countering extremism.

Tabbaa spoke of SEF’s role as the first independent economic think tank in Syria working to change the trajectory of the conflict and rebuild a better Syria for the future. “We have to go back to the roots of this conflict,” he told the audience. Under the regime of Bashar Al Assad, citizens are oppressed and disenfranchised— they lack opportunity for meaningful political and economic participation. But after four years of war, people are wondering what it means to be a Syrian anymore. It is crucial, in this context, to redefine the social contract and the relationship between the citizen and state. As a think tank, SEF is playing a leading role in doing so.

“…after four years of war, people are wondering what it means to be a Syrian anymore.”

Syrians are looking for democratic alternatives to the forces tearing the country apart. Every day we see news about atrocities and violence in Syria. Much of the media focuses on sectarian violence and ISIS-created mayhem. But, even with the chaos and human suffering, Tabbaa offered signs of hope through examples of SEF’s work during the conflict.

He spoke about the recent memorandum of understanding (MOU) that SEF signed with the Ministry in Local Administration of the Syrian Interim Government (SIG). SEF has a network of liaisons inside Syria who provide the SIG and Local Councils with economic data, analysis, and recommendations. Providing this on-the-ground information to decision-makers supports improvement of local governance and enhances the democratic legitimacy of the Councils

Another SEF project helps Syrian youth develop solutions to the challenges in their communities through civic education. SEF has provided 600 young Syrian high school graduates with training in entrepreneurship, leadership, and civic skills. The course offers an alternative to the regime’s propaganda and the empty promises of extremist ideology.

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Five Leading Women Entrepreneurs in South Asia

south-asia-women

This post is Part 2 in a series. Read Part 1 here.

In the emerging democracies of South Asia, the majority of women are blocked from full economic and civil participation by a range of both formal and informal obstacles, including laws and regulations, and cultural and societal norms. While there is no shortage of aid programs for women in the region, CIPE recognized that limited attention was being paid to reforming the broader economic and political institutions that are skewed against women – by improving the business environment so that women-owned businesses can thrive.

Last week, CIPE launched a blog series exploring the connection between women’s economic empowerment and democracy in South Asia. The series, inspired by CIPE’s panel at a March 2015 conference in Delhi, tells the stories of five key members of CIPE’s network of South Asian women’s chambers and associations, and explores the crucial role that women’s empowerment plays in strengthening democracy and furthering economic growth.

Women face great difficulties in obtaining finance; their right to own property (and as such, its use as collateral) is often restricted; and at times their very access to marketplaces is constrained. CIPE launched a program to address these issues by strengthening women’s chambers of commerce and business associations, building a network of such organizations from Sri Lanka, Pakistan, India, Nepal, and Bangladesh.

Over the last two years, CIPE has brought the network together several times to exchange information and best practices, and to establish links between weaker and stronger organizations. CIPE provided training on governance, financial and staff management, communications, and membership development. CIPE has lately begun to fund small advocacy programs carried out by these organizations. Across the board, their successes have been awe-inspiring.

Key members of each organization were invited to speak about their lives and their organizations at the Delhi conference. Read more about each of these five remarkable women below.

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