Tag Archives: economic reform

A Trinity of Trade: Africa soon to Launch TFTA

Map of TFTA

By Otito Greg-Obi

Recently, African heads of state gathered together in Egypt to sign the Tripartite Free Trade Area agreement (TFTA) which will join the forces of the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), and the Southern African Development Community (SADC).

Free trade is crucial to global economies because it reduces tariff barriers which in turn results in trade creation. The benefits of trade for developing nations in general are numerous. To name a few: first and foremost, trade allows for specialization meaning countries can build a comparative advantage by focusing on producing goods with low opportunity costs. Secondly, trade encourages healthy competition which incentivizes businesses to increase efficiency and cut costs. Lastly, trade can reduce dependence on existing markets and stabilize countries affected by seasonal changes in markets.

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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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Are Remittances Really Remiss?

Remittances in Somalia

By Otito Greg-Obi

It is a popular opinion in the international development community that remittances – money transferred by a foreign worker back to someone in his or her home country – can have a negative effect on economic growth because recipients tend to spend cash flows on day-to-day subsistence. However, research shows that the opposite is true. A study on the effect of remittances on growth in Africa reveals that remittances seem to have an overall positive effect on Gross Domestic Product (GDP). When compared to foreign aid and Foreign Direct Investment (FDI), a 10 percent increase in remittances leads to a 0.3 percent increase in the GDP per capita income.

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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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Economic Inclusion: Leveraging Markets and Entrepreneurship to Extend Opportunity

fs-inclusionBurgeoning youth populations across the developing world emphasize the importance of achieving sustainable economic growth and providing widespread employment opportunities. Economic inclusion refers to equality of opportunity for all members of society to participate in the economic life of their country as employers, entrepreneurs, consumers and citizens — and the private sector is a central partner in fostering economic growth.

CIPE’s latest Economic Reform Feature Service article outlines strategies to build a more inclusive entrepreneurial ecosystem by engaging traditionally under-represented groups in economic and political life. The article focuses on approaches to promote entrepreneurship opportunities among women and youth as well as informal sector operators. The article also illustrates successful approaches employed in CIPE projects around the world. Read the full article here.

Teodora Mihaylova is Research Coordinator at CIPE.

The Moldovan National Business Agenda Goes to the Regions

A national business agenda (NBA) is a powerful tool and platform for business people to engage in a proactive dialogue with policy-makers on issues affecting the private sector in a given country. Developing an NBA requires the private sector to collaborate to identify issues that constrain business activity, offer proposals and solutions to address the issues, and present them in an open and transparent manner to public officials. This private-sector led approach has been instrumental in advancing economic reform agendas in countries around the world.

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