Tag Archives: economic growth

The Trillion-Dollar Question: Financing the Sustainable Development Goals

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After years of consultation, discussion, and debate, the sustainable development goals (SDGs) that will guide development efforts for the foreseeable future are close to becoming a reality — meaning a global commitment to end poverty in all its forms everywhere and eliminating extreme poverty entirely by 2030. But one crucial question remains: how to pay for it all?

The Financing for Development (FfD) conference met in Addis Ababa, Ethiopia earlier this month to try to reach an agreement on the right mix of development aid, taxes, loans, trade, and private investment to pay for the ambitious agenda set out in the SDGs, building on the failures and successes of the previous Monterrey Consensus and Doha Declaration.

Following the FfD conference, the Center for International Private Enterprise’s (CIPE) convened a panel of experts to reflect on the new SDG financing framework and outline important steps leading up to the summit in September where 193 heads of state will converge to ratify the goals.

Hosted by CIPE Executive Director John D. Sullivan, the panel featured Trevor Davies of KPMG, Christopher Jurgens of the United States Agency for International Development (USAID), Louise Kantrow of the International Chamber of Commerce (ICC), Kamran M. Khan of Millennium Challenge Corporation (MCC), and Sarah Thorn of Walmart.

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Community and Political Actors Present ‘Ideas for Rebuilding Nepal’ to the Government

On April 25, a devastating earthquake of 7.8 magnitude rocked the central region of Nepal, claiming over 8000 lives, injuring thousands, and leaving another 2.8 million people homeless. The government of Nepal has been posed with one of its biggest disaster-related challenges in recent history. Despite the looming challenges that remain, a window of opportunity has emerged for Nepal to mobilize the energy and enthusiasm of its citizens for a better, more prosperous country. The fabric of Nepali society—which exemplifies cooperation, tolerance, and compassion— has been on clear display in the voluntary efforts of various non-governmental organizations (NGOs), civil society groups, and individuals alike. This energy marks a new beginning for Nepali society and politics.

In June, CIPE Nepal partner, Samriddhi, the Prosperity Foundation (Samriddhi) held a two day conference under its Nepal Leaders’ Circle initiative. Nepal Leaders’ Circle is a platform for reform-minded politicians to deliberate policies affecting the country. The conference, held at the Nepal Administrative Staff College in Lalitpur, brought together key actors from Nepal’s government, NGOs, community based organizations (CBOs), and private sector. These individuals have been on the ground in both the immediate relief and reconstruction efforts. The purpose of the conference was to share a common platform to discuss respective ideas to rebuild Nepal.

The conference addressed two primary themes: institutional mechanisms for disaster preparedness and management and the journey ahead in reviving Nepal’s economy, financing reconstruction, and promoting growth. Over the course of two days, 11 sessions with 63 expert speakers were held, with over 800 individuals from more than 100 organizations.

The two-day conference was a major success and was well covered in the local media. The private sector’s innovation and entrepreneurship was highlighted as a key mechanism for rebuilding the country’s economy. Participants emphasized the use of locally available wisdom, knowledge, and resources while incorporating globally available lessons on post-earthquake management.

The conference highlighted certain characteristics of the reconstruction plan that will particularly focus on economic revival and growth. They are as follows:

  • A focus on micro, small, and medium enterprises that form the backbone of Nepali economy;
  • A strategy for involving the private sector in the overall reconstruction process and increasing private sector investment;
  • A policy initiative that understands and responds to the realities and demands of communities and incorporates a holistic approach to the geological, socio-cultural, and economic realities of the affected areas;
  • Creation of space for innovation and experimentation; and
  • Fast track decision-making and better governance.

While challenges remain for Nepal’s economic reconstruction, it is clear that this is a turning point in the socio-economic history of the country. If its citizens are able to institutionalize reforms, especially those targeting economic growth and disaster preparedness, the country will be able to recover and revive its emerging economy.

Medhawi Giri is the Program Assistant for South Asia at CIPE. 

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 Democratic Alternative from the South

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Each year on September 15, the UN observes the International Day of Democracy to celebrate efforts to promote and consolidate democracy around the world.  Despite these efforts however, the realization of consolidated democracy continues to be a struggle for many reformers.  This year, the UN has chosen a theme of “Engaging Young People in Democracy” and acknowledges that “study after study show declining faith among young people…with declining levels of participation.”  Compounding this declining faith in democracy is a rising ideological competitor in the form of economically successful authoritarian regimes.

As much as young people are recognized as dreamers and agents of change, these characterizations tend to be the result of youth wanting to see an improvement in their quality of life.  In emerging countries such improvements are often delivered through economic growth, and in cases such as China and Singapore youth populations can honestly say their standard of living has gotten better year after year.  These examples can lead youth to become disillusioned with democracy, especially at a time when the world’s major democracies are suffering the aftereffects of a major financial crisis. Meanwhile, in the developing world, kickstarting growth in democratic regimes often takes time due to a need to build consensus and develop proper policies.

Quality of life, however, is not measurable only in terms of indicators such as income levels, consumption, and GDP — though almost all of the world’s most prosperous countries are democracies.  Other, arguably more important aspects such as human rights, liberty, and freedom are also vital components.  Since 2012, CIPE has been part of a consortium seeking to analyze the development paths of three emerging democracies (India, Brazil, and South Africa) in order to create an argument in support of democratic development.

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Moving Beyond the Bi-Polar View of Doing Business in Africa

New buildings in Gabarone, the capital of Botswana -- one of the most developed and fastest-growing economies in sub-Saharan Africa.

Gabarone is the capital of Botswana — one of the most developed and fastest-growing economies in sub-Saharan Africa.

By Naledi Modisaatsone

Economic improvements and a wealth of opportunities for business in Africa have led to an increased focus on the continent. Over the past three years Ernst & Young’s Africa attractiveness reports have highlighted the continent’s steady rise. Their research provides some quantitative substance to the growing perception that African markets offer an exciting growth and investment opportunity.

Africa’s growth prospects differ not only country by country but also sector by sector. For example, agriculture is Africa’s largest economic sector, representing 15 percent of the continent’s total GDP, or more than $100 billion annually. It is highly concentrated, with Egypt and Nigeria alone accounting for one-third of total agricultural output and the top ten countries generating 75 percent.

Africa’s banking sector has also grown rapidly in the last decade. Sub-Saharan Africa has become a substantial player in emerging-market banking, with total 2008 assets of $669 billion, while North Africa’s asset base has grown substantially, to $497 billion. Africa’s banking assets thus compare favorably with those in other emerging markets, such as Russia (with $995 billion).

However, the Ernst & Young reports also highlight a lingering perception gap between companies already doing business on the continent and those with no business presence there. The respondents with an established business presence in Africa are more positive about the continent’s prospects and rank Africa as the most attractive regional investment destination in the world today. They view it as an exciting, dynamic, high-growth market. In stark contrast, respondents that have not yet invested are negative and rank Africa as the least attractive regional investment destination in the world.

The African business community should spend some time on this issue at the US-Africa Business Forum. It is their responsibility to debunk the myths that some external investors have about operating a successful business in Africa. These business leaders are successfully embracing Africa’s uncertainty, complexity and volatility, understanding that these are common challenges across most emerging markets.

They are actively balancing the three tensions that all companies face in doing business in emerging markets: long-term versus short-term focus, profit-taking versus sustainable growth, and managing the whole versus optimizing the parts. Most importantly, their companies are establishing strong competitive positions in key markets and are poised to benefit from the continued growth anticipated over the next decade.

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U.S. Companies Should Not Overlook Opportunities in Sub-Saharan Africa

A growing textile industry is among the drivers of Ghana's rapid economic growth in recent years. (Photo: Wall Street Journal.)

A growing textile industry is among the drivers of Ghana’s rapid economic growth in recent years. (Photo: Wall Street Journal.)

By Chris Braddock

Next week the U.S.-Africa Leaders Summit will bring approximately 50 heads of state to Washington, DC, for the purpose of discussing trade and investment in Africa and highlighting America’s commitment to the continent. During a recent trip in the region, I spent quite a bit of time thinking about this topic.

Over the past four months I was busy traveling in sub-Saharan Africa (SSA), meeting with businesses and academics and researching the business opportunities in five different countries. As part of this trip I had the opportunity to meet with several CIPE partners and consultants who, as representatives of the private sector, were able to speak about the enabling environment and some of the challenges and opportunities of businesses working in SSA.

Most countries in SSA have historically been seen as too unstable, too small a market, or too risky for U.S. companies to explore opportunities, so there are few American companies operating in the region. The perception of SSA for many is based on the plethora of negative stories presented by the media, but this is merely a small and decreasingly significant part of the SSA story. Growth rates are high, people are optimistic with larger disposable incomes, and foreign direct investment is flowing in larger quantities, particularly from Asia. U.S. firms are starting to get left behind.

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