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- This article summarizes the main barriers to entry and growth as experienced by entrepreneurs and business owners in Egypt and Tunisia, and looks at regional differences within each country, differences between formal and informal enterprises, and differences by gender of business owners.
- Top barriers to growth in 2013 were reported to be political instability and public disorder, administrative inefficiency, and restrained access to finance. Even among formal businesses, informal mechanisms often compensate for the absence of effective state institutions and the rule of law.
- Administrative reforms and deeper investments in infrastructure and human capital are needed to build the business-friendly ecosystem needed to generate jobs, grow the economy, and create opportunities for all citizens
China’s introduction of economic reforms in 1978 gave the private sector greater control over the economy, but under an official state ideology that severely restricted citizens from organizing or participating in the policy-making process, any business associations that existed then were most likely adjuncts of the government with no accountability to their membership. In recent years, though, private business associations have begun to develop at the local level in cities all over China as the result of the government’s need to reduce spending combined with the desire of private entrepreneurs to translate their newly created wealth into an enhanced role in the policy-making process. These newly formed voluntary membership associations enjoy financial independence and focus on networking, information dissemination, and business facilitation, but they also provide members with access to government officials, thereby creating a forum for a public-private dialogue. Though hesitant to confront the government as differences of opinion on policy matters are uncovered, associations will have to transition into policy advocates or risk losing membership.Read more...
Neoclassical economics fails to explain how countries can achieve economic growth because it was designed to talk about how well-developed markets work, but many countries have a fundamental problem in that their markets are not well-developed. Economic development depends on getting the right economic and political institutions in place that provide incentives for people to be productive. The most important of these institutions are well-defined property rights and a legal system that will enforce contracts and agreements. Because institutions represent local beliefs, values, history, and conditions, successful reforms must employ local knowledge.Read more...
Despite the liberalizing reforms of the past decade, the countries of Latin America have failed to secure stable political systems and sustainable, open economies. The region seems unable to break out of a pattern in which it veers between dictatorships and nascent democracies, lacking the core elements of prosperity: a functioning, impartial judicial system, property rights, and full rights for women and the region’s impoverished majorities. The reason for this instability lies in Latin America’s institutions – the moral and behavioral rules that guide citizens’ actions. The paradigm of underdevelopment includes ideas handed down through Latin Americans’ early education that include a fatalistic attitude toward politics and economics that bars one generation after another from honestly evaluating and resolving the intransigent state of Latin American development. Well-trained teachers represent the first option for transforming this paradigm into a paradigm of progress. In addition, the media, politicians, and other opinion leaders must band together to push for a broad public discussion of this issue in Latin America.Read more...
Современный деловой мир испытывает острую потребность в новом организующем принципе, который бы учитывал новые формы экономического роста, проливал свет на механизмы, доселе скрытые, и расширял круг рядовых участников экономического процесса. « Гражданской экономике» требуются институты, подобные тем, которые необходимы для создания сильного гражданского общества. В этом новом обществе владельцы предприятий, подотчетные миллионам своих акционеров и вкладчиков, посредством ответственного управления ведут компании к стабильности и процветанию. Аналогично гражданскому обществу, гражданская экономика одновременно создается ответственным руководством и обеспечивает ответственное руководство. Главная задача здесь – создание институтов, которые совместят в себе свободную торговлю и ответственность и оказались жизнеспособными в условиях стремительной глобализации.Read more...
China has enjoyed two decades of successful economic modernization which have given the government a possible foundation for popular legitimacy based on results – not ideology. But political reform is necessary to continue this process even further. The government should allow for the circulation of positive, constructive ideas, but the people have a responsibility to avoid flooding the vehicles of public discourse with simple complaints. The process of democratization in China will take decades, but slow progress is acceptable so long as it does not stop.Read more...
- Democratic Governance
- Access to Information
- Combating Corruption
- Business Association Development
- Corporate Governance
- Legal & Regulatory Reform
- Informal Sector & Property Rights
- Corporate Citizenship (CSR)
- South Asia
- Middle East & North Africa
- Latin America & the Caribbean
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CIPE welcomes articles submitted by readers. Most articles run between 3-7 pages (1000-3000 words), but all submissions relevant to CIPE's mission of building accountable, democratic institutions through market-oriented reform will be considered based on merit. Economic Reform Feature Service articles are primarily geared toward an international, non-academic community of businesspeople, economic reformers, and policy-makers. Specific policy recommendations and articles based on direct experience are encouraged. In addition to articles, we are willing to adapt suitable lectures, speeches, research notes, and academic papers.
Articles should be sent to: firstname.lastname@example.org.