In the seven years since the Soviet Union folded, the New Independent States (NIS) have worked to promote open economies and democratic reform. These countries have met with varying degrees of success.
With the intent of comparing the successes and failures of the NIS states and the key lessons that they have learned since the USSR's collapse, CIPE and the Economic Development Institute of the World Bank recently co-sponsored a highly successful conference entitled "Seven Years After the Break-Up: A Regional Conference for the NIS." Held on September 14-16 in Moscow, the event included more than 60 representatives from 16 countries, including some 35 business associations and think tanks that receive funding from CIPE.
Taking place just days after Russia's Parliament approved the appointment of Yevgeny Primakov as Prime Minister, and in the midst of the gravest economic crisis since the fall of the Soviet Union, the CIPE/EDI conference examined the rise of crony capitalism in the region, the dangers it poses to democracy, and the importance of open capital markets.
The first two days of the conference were devoted to economic reform issues affecting the region, while the third day consisted of a workshop designed to enhance the capabilities and relevance of think tanks in the area.
Since the break-up of the Soviet Union, CIPE has provided more than 40 grants to the NIS nations. The conference in Moscow offered the first opportunity for current CIPE partners and former grantees to compare notes and discuss mutual challenges and solutions.
John Bohn, CIPE's newly elected Chairman, urged policymakers at the conference to establish free and fair institutions that "provide a mechanism for equal application of rights and obligations, a fair and honest judiciary to enforce the rights of individuals, both between themselves and against the government, and the recognition that it is individual energy that produces wealth at the end of the day."
Dr. Gayle P.W. Jackson, a member of the CIPE Board of Directors, served as a keynote speaker at the conference. She encouraged participants to study the characteristics of typical "growth economies," including such features as strong competition, broad-based education and research, clearly defined property rights, reliable enforcement of the law, and the ability of individuals to learn by trial and error. Jackson quoted from Ronald Coase, who worked with Nobel Prize winning economist Douglass North as pioneers of institutional economics. She noted, "The level transaction costs depend on the institutions of a country, its legal system, its political system, its culture....This is why we must include the influence of these institutions in our study of the workings of an economic system."
The conference touched on such wide-ranging issues as accountability and transparency, land reform, privatization and the gap between rich and poor, and the need to involve all parts of society in democratic reform. Special emphasis was placed on the role of public policy research centers (think tanks), business associations, and non-governmental organizations (NGOs) in advocating for reforms, building coalitions, and mobilizing grass roots support within civil society.
John Sullivan, Executive Director of CIPE, stressed the value of coalitions in advocacy efforts. He suggested that supporting coalitions — even though other members may have different approaches, interests and constituents — is crucial to building widespread support as long as all members of the coalition agree on the same basic principles. He concluded, "That's what's at the heart of a coalition — agree on what you can agree on and maximize your leverage in society by using those agreements."
The full texts of presentations made at the joint World Bank / CIPE conference can be found at CIPE's Web site at www.cipe.org.