Tag Archives: private sector

What is the Role of the Private Sector in Open Government?

By Dr. Jong-Sung Hwang

ogp-logo

The Open Government Partnership has become a leading force for advancing transparency and civic engagement in 63 countries. It was founded on a strong partnership between governments and civil society organizations. Recognizing the implications of open governance for economic and democratic development, CIPE has helped to establish an independent Council for Engaging the Private Sector in the Open Government Partnership. The Council is a joint initiative coordinated by the National Information Society Agency of Korea, Microsoft, and the Center for International Private Enterprise. CIPE’s Andrew Wilson, Deputy Director for Strategic Planning, is co-chair. The Council welcomes input from private sector and other stakeholders on the future of engagement in open governance.

Dr. Jong-Sung Hwang, Head of the Korea Big Data Center at the National Information Society Agency, introduces this exciting initiative on the Open Government Partnership blog.

Open government is not a new concept. According to Wikipedia, the idea that government should be open to public scrutiny and responsive to public opinion dates back at least to the time of the Enlightenment. For decades now, the emergence of Freedom of Information legislation and  e-government initiatives have propelled a trend toward building transparent, accountable, and responsive governments.

However, open government has acquired new meaning in the 21st century, facilitated by the development of information technology. Whereas open government in the past meant access to information inside government, it now means not only access but also active sharing of information and collaborative governance between government and civil society. The distinction is that access is a one-directional relationship in which the government side opens up. In contrast, sharing implies bi- or multi-directional relationships and requires opening up and engagement by all sides.

The new version of open government, which aims for shared governance, can be named as open government 2.0. As Tim O’Reilly, advocate of Gov 2.0, puts it, open government 2.0 seeks to “redefine the relationship between citizens and government officials, engaging the citizen as a full participant rather than an observer. Citizens are not passive consumers of government services anymore. Instead, they are actively engaged in producing and delivering government services and sharing the results.

CONTINUE READING

Europe’s Corruption Challenges Examined

In this 2011 file photo, a billboard is shown on the Rue Belliard in the European district of Brussels THOMSON REUTERS FOUNDATION/Maria Sanchez-Marin

In this 2011 file photo, a billboard is shown on the Rue Belliard in the European district of Brussels THOMSON REUTERS FOUNDATION/Maria Sanchez-Marin

This post originally appeared on the Thomson Reuters TrustLaw blog.

The European Union (EU) is taking a hard look at corruption in its midst, having recently published its first-ever corruption monitoring report. The results are striking: the estimated cost of corruption in the EU’s 28 member states equals €120 billion, a figure nearing the EU’s annual budget.

A sense of corruption problems in Europe has been pervasive in the news. In Spain, Princess Cristina and her husband have been embroiled in a case centered on the alleged embezzlement of €6 million in public funds. In the Czech Republic, Prime Minister Petr Necas resigned after a scandal involving illegal surveillance andgraft. He has been recently charged with bribery for offering state posts to former opposition members in return for them leaving office. In Italy, former premier Silvio Berlusconi is back in court (again) on charges of giving a €3million bribe to an opposition politician to switch sides. And the Romanian Parliament voted to exempt top politicians from corruption liability.

CONTINUE READING

The Next Emerging Market: Women

Web

Today I attended the U.S. Chamber of Commerce Foundation and the UN Office for Partnerships sponsored event, Turning Inspiration into Action: Next Steps for the Private Sector to Empower Women Globally. This annual forum — now in its fourth year — brought together over 100 leaders from nonprofit, government, multilateral, and the private sector committed to the economic empowerment of women worldwide.

Given that many nations are still struggling with sluggish or no economic growth, it is timely for countries around the world to develop sustainable, inclusive economies to maximize their growth potential. And the key ingredient for achieving this is integrating women into the equation. As Carolyn Buck Luce from Imaginal Labs LLC highlighted in the opening remarks at the event, “the next emerging market is women. Over one billion women globally will enter the workforce in the next five years, and they will mostly come from developing nations.”

To capitalize on this immense opportunity, here were some actionable plans that were discussed by the panelists at the forum:

CONTINUE READING

The Private Sector’s Vested Interest in Citizen Security

Armed security at a Walmart store in Costa Rica, (Photo: La Nacion)

Armed security at a Walmart store in Costa Rica, (Photo: La Nacion)

Security is a fact of life that many of us in the developed world take for granted. I feel fairly confident that I can go about my life on a daily basis with nearly zero contact with crime or violence. Thanks to that security, I feel confident enough to shop, go out to eat, and generally spend time outside of my home and workplace, adding to the local economy. Thanks to this security, my city is growing and developing and life is generally getting better for most people, despite the recent economic recession. Imagine if that were not the case.

At the second level of Maslow’s Hierarchy of Needs lies safety – the security of body, employment, resources, morality, family, health and property. Intuitively we know that our basic needs must be met before we can endeavor to improve our self, our livelihood, our families, or our communities. Without the feeling of safety, people are less able to act freely in a market – to buy products, start businesses, or invest – limiting a country’s potential for development.

It is with this logic that a recent United Nations Human Development Report argues in favor of increasing measures in citizen security in the Latin America region. In this region more than 100,000 homicides are registered per year. The World Health Organization considers these levels epidemic and they are much higher than most other regions of the world today. The report’s authors state, “The level of insecurity many experience impedes human development.”

CONTINUE READING

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.

Corruption as a Tax on Private Sector Growth

Karim Rathor, Pakistan

Corruption is one of the biggest challenges facing the developing world: it has a corrosive effect on democratic governance, undermines public trust, and wastes scarce resources. Crucially, corruption also represents a destructive tax on the private sector that hampers economic growth and development prospects.

A new paper by  the Center for Strategic and International Studies’ (CSIS) Project on Prosperity and Development, The Costs of Corruption: Strategies for Ending a Tax on Private-sector Growthestimates that narrowly-defined private sector corruption in 105 developing countries amounts to over $500 billion, 3.7 times the amount of official development assistance in 2011. While businesses are often blamed for corruption, and in particular bribery, the paper recognizes that corruption has both supply and demand sides, and that while businesses may contribute to corruption, they are also victims of it. As such, business must be a part of successful solutions to the corruption problem.

This is the point that CIPE constantly emphasizes – and applies – in its work around the world. In fact, the report cites numerous examples of CIPE’s successful anti-corruption programs, including collective action among leading companies in Thailand, legal reforms to guarantee disclosure of procurement contracts in Egypt, work on corporate governance and SME policy advocacy in Russia, improving public procurement transparency and governance in Kosovo, streamlining Armenia’s tax code, and strengthening property rights and supporting legal institutions in Kenya.

CONTINUE READING

The Private Sector and the Future of Venezuela

Venezuela's President Maduro talks to supporters during a meeting at Plaza Bolivar in Caracas

By Aurelio Concheso

December’s local election results are in for Venezuela, and the opposition can rightly claim that it not only retained major urban areas such as Greater Caracas, Maracaibo and Merida, but regained others it had lost such as Valencia, Barquisimeto, and San Cristobal. In addition they made inroads in “Chavista cities” such as Chavez´s own home town of Barinas and Diosdado Cabello’s home town of Maturin. Moreover, despite how the Electoral College blatantly manipulated the way results were broadcast, in the overall national vote tally the opposition candidates beat out the government’s by 51 to 49 percent.

On the minus side for the opposition, former presidential candidate Henrique Capriles tried to bill the contest as a referendum on President Maduro, but this didn´t pan out either from the perspective of voter turnout (only about 58.5 percent vs. over 80 percent in the April presidential election) or the difference in total vote.

What we are left with moving forward is a political environment that continues to be polarized. During the two months previous to the election, the government made private business the culprit for inflation and scarcities of goods, while simultaneously taking steps that practically insure higher inflation, perhaps hyperinflation in 2014.

CONTINUE READING