Investment decisions today are being made by specialists scrutinizing tickertapes in New York, London, and Tokyo, 365 days a year, 24 hours a day. Gone are the days when political regimes governed trade and disputes could be worked out by telephone calls between heads of state. This change in the relationship between economic and political regimes has increased the importance of financial markets, fiscal policy, and, in the case of emerging markets, privatization and structured reform.
Economic development is now viewed as a determinant of trade and political security. Thomas Friedman, the New York Times columnist, first highlighted the notion that there has never been a war between two countries that are both home to a McDonald's franchise. In my opinion, this is because business in those countries has fully integrated into society and from there into the global market. As a result, goals have become more economic in focus.
In this context, this eminent fact has made the work that CIPE does all the more important. CIPE programs are essential in this "new world," particularly in emerging markets, where trade is no longer dominated by traditional political regimes. CIPE's global programs work to foster an environment conducive for business growth and to promote attendant economic prosperity. The decline in influence of political regimes has created an opportunity for democracy and democratic ideals to take hold, and CIPE's timing and focus are critical.
Last summer, I participated in one of CIPE's business association management training programs for Egyptian organization leaders. I saw firsthand how this program trained local executives to strengthen their organizations, provide instruction on global standards, and work in tandem with other organizations as a catalyst to increase overall market transparency and privatization.
Emerging markets are in constant competition for investment. As a result, each must work to make its commercial environment a place where businesses can thrive. Each must institute policies that support reform and create positive economic indicators.
Businesses benefit from becoming fully integrated into the global market. Through its work with business associations, think tanks and others CIPE is helping to lay the foundation for integrating business more fully into the world market. Transparent markets, ethics, and sound business practices have become important equalizers among countries and are necessary for business to take hold and thrive. In this regard, CIPE's programs continue to support initiatives to develop market-oriented economies that are founded on both democratic principles and ethical standards.
A variety of think tanks and public policy institutes throughout the
world are working to encourage markets and democracy. Both Heritage and CIPE
are proud to work with these outstanding institutions and to support their
efforts.
Senator Robert W. Kasten, Jr.
President, Kasten & Co.