Tag Archives: economic reform

Ukrainian Businesses Should Use the Momentum to Speak Up

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By Iryna Fedets

In Kyiv and in other cities across Ukraine, small and medium-sized businesses were a driving force in the recent protests that resulted in the ouster of former President Viktor Yanukovich and the formation of a new Cabinet of Ministers. Entrepreneurs personally participated in the pro-European Union movement, both on the streets and in financing the demonstrations and providing food and medical supplies.

According to a poll conducted in early February 2014, business owners made up about 17 percent of the protesters, although business owners only make up 4 percent of Ukraine’s overall population. Following the 2008 recession, the former government imposed changes in the regulatory and tax structure that increased corruption and raised the burdens on small business, which helped draw them to the streets.

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Nepal Moves Forward on Reform Agenda

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Last month more than 1,000 people gathered for the 2014 Nepal Economic Summit,a  historic event hat brought attention to the challenges and opportunities to Nepal’s economic development.

More than 30 international speakers participated in the event including government officials, key ministers, business leaders, and civil society representatives. USAID Administrator Rajiv Shah also attended the event and gave some closing remarks.

CIPE partner Samriddhi, the Prosperity Foundation was the knowledge partner of the event  and has been working closely with the government and stakeholders in formulating the reform agendas over the last two years, preparing discussion papers on key issues such as agriculture, energy, and tourism, outlining major challenges and making recommendations. The papers build on Samriddhi’s Nepal Economic Growth Agenda, launched in 2012. Samriddhi’s economic research has become an important source of independent policy analysis in Nepal.

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An Interview with Andrzej Arendarski on Poland’s Transition to Democracy

The fall of the Berlin Wall marked the end of the bipolar international order that had dominated since the Second World War. In 1989 Eastern European countries gained the freedom to chart their own future and adopt political and economic institutions based on democratic governance and the free market economic system. In the twenty five years of transition, most states in the region have become full-fledged members of the European Union and achieved significant development milestones in their integration in Western institutions.

Reflecting on the transitional experience of Poland, Dr. Andrzej Arendarski, co-founder and president of the Polish Chamber of Commerce, was invited by the Free Enterprise and Democracy Network to share his recollections in the latest issue of CIPE’s Economic Reform Feature Service article.

Dr. Arendarksi explains the important role the Solidarity trade union played during the Polish transition to democracy and reflects on the significance of reducing barriers and regulations to promote the operation of business and encourage entrepreneurship. He describes democracy as more than a political system, “as a process in which nationals learn to be responsible for their choices,” a set of institutions and a state with free media.

To learn more about lessons emerging from the Polish transition to democracy applicable to reforms in other countries, read the article here.

Teodora Mihaylova is a Research Assistant at CIPE.

Strengthening Public-Private Dialogue for Sustainable Business

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Participants at the Frankfurt workshop.

Effective legal and regulatory reforms are key to improving governance and creating an entrepreneurship ecosystem conducive to economic growth and shared prosperity. Yet in many countries passing and implementing new laws and regulations remains a top-down process that receives little input from stakeholders who are directly affected.

All too often such reforms, even if they appear promising, remain on paper only since they lack broader ownership and support. In order to make the reform process more transparent, accountable, and fruitful, governments need to involve various segments of the society in the reform process. That involvement is particularly crucial when it comes to private sector organizations given that they represent the broader business community – the backbone of economic growth.

This crucial multi-stakeholder engagement process of public-private dialogue (PPD) was the topic of the recent 7th PPD Global Workshop in Frankfurt, Germany, co-organized by the World Bank Institute (WBI), the German Federal Ministry for Economic Cooperation and Development (BMZ), and the German Society for International Cooperation (GIZ).

The workshop gathered 145 participants from 41 countries, including the donor community, government representatives, and the private sector. It focused on key issues in designing, conducting, and evaluating PPDs, with experiences and approaches on what works shared among the participants. CIPE and several of its current and past partner organizations from Bangladesh, Ethiopia, and Senegal took part in this exciting event.

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Advancing Private Sector Participation in Iraq

CIPE partner the Iraqi Businessmen Union leads a public-private dialogue session in Baghdad, Iraq.

CIPE partner the Iraqi Businessmen Union leads a public-private dialogue session in Baghdad, Iraq.

The Iraqi private sector continues to pursue steps towards building a modern market economy. Over recent decades, Iraq’s institutions supporting the economy became highly centralized as authoritarian rule sought to enhance state economic and political control. In Iraq today, government officials and the business community recognize the need to transform the economy into a modern, market-economy, capable of providing jobs and opportunity to all citizens. Achieving this goal, however, has proven to be a slow and arduous process.

Since 2003 CIPE has supported the Iraqi business community in its efforts to participate more effectively in the country’s economic transition. CIPE has partnered with business associations and civil society to develop provincial and regional business agendas and draft policy papers that increase the information available on issues inhibiting private sector growth.

To supplement the efforts of CIPE’s local partners, CIPE commissioned surveys to measure the views of Iraqi businesses, most of which are small sole-proprietorships, towards the prevailing economic conditions, factors affecting business growth, and a host of other key policy and economic issues.

In this week’s Economic Reform Feature Service Article, Program Officer Jenna Mace presents key results from CIPE’s most recent Iraqi Business Survey. The article includes a discussion of trends in the costs of corruption and opportunities for women, as well as the business community’s views of economic conditions.

Read the entire article here.

John Zanikos is Assistant Program Officer for the Middle East & North Africa at CIPE.

Business Community Unites on Pakistan Budget Proposal

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“In a rare show of strength, top representatives of all the country’s chambers of commerce and industry gathered in Karachi and asked the government to revamp the tax collection system if it wants to increase revenue collection in the country.”Express Tribune

For the past five years, CIPE Pakistan has been supporting the All-Pakistan Chamber Presidents’ Conference organized by Rawalpindi Chamber of Commerce & Industry. This conference has provided the business community an opportunity to assemble and a platform to advocate for policy reforms in the country with one voice.

Following in the footsteps this conference, Pakistan’s largest chamber, the Karachi Chamber of Commerce & Industry, organized a Chamber Presidents’ Conference focusing on bringing together leading chambers to submit a joint proposal for the forthcoming federal budget.

Considering the fact that Pakistan has one of the lowest tax to GDP ratios, which results in the government falling short of revenue and burdening those who already pay heavy taxes, participants of this conference remained focused on a single-point agenda “to work with government on increasing tax collection and reducing dependence on IMF loans.”

Zubair Motiwala, Co-President of the Pakistan-Afghanistan Chamber of Commerce & Industry said, “Our successive governments have followed a policy of divide and rule. But now that we are united here on one platform, no government can ignore us anymore.”

The conference was attended by the presidents of more than 18 chambers including those from Faisalabad, Lahore, Multan, Islamabad, Rawalpindi, Khyber Pakhtunkhwa, Gilgit Baltistan, Lasbela, Sukkur, and other cities and regions.

This was the first time that leading chambers have agreed to develop a unified budget proposal at least two months ahead of budget preparation. The proposal will be finalized at the next meeting, which will be hosted by Faisalabad Chamber of Commerce & Industry in April of this year.

The business community showed its determination to keep advocating for policy reforms to encourage economic revival in the country. Speaking at the occasion, Dr. Shimail Daud, President of the Rawalpindi Chamber of Commerce and Industry, said;

“The unnecessary power of the bureaucracy should be curtailed for the good of the country’s economy. The business community from all four provinces of the country is working together for the most implementable and serious budget proposals and this time it will definitely bring results.”

Moin Fudda is Country Director for CIPE Pakistan.

To Harness Africa’s Demographic Dividend – Invest in People!

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Naledi Modisaatsone is a CIPE-Atlas Corps Think Tank LINKS Fellow at the Urban Institute.

The demographic dividend is the accelerated economic growth that may result from a rapid decline in a country’s fertility and the subsequent change in the population age structure.

According to the latest UN population projections, Africa will have two billion people by 2040, with the share of 12-to-24-year-olds growing from 18 percent to 28 percent. The increment in size of this age cohort in Africa will be parallel to a decline in the same age group in every other region of the world. This anticipated rapid growth of the labor force possesses serious development challenges, as well as opportunities. The rising question is: how should Africa best prepare in order to benefit from the demographic change in the coming generation?

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