Background and Overview
South Asia, comprising Afghanistan, Pakistan, India, Nepal, Bhutan,
Bangladesh, and Sri Lanka, represents a myriad of governance structures
and economic practices. From the inaccessible mountain kingdom of Bhutan
to the civil-war torn island of Sri Lanka, each country presents its own
challenges for CIPE. India, an established democracy with a booming economy,
faces fewer difficulties than its neighbors.
Afghanistan is still faced with the challenges of post-conflict
reconstruction and democratic consolidation. The Karzai administration
must continue down a democratic path to ensure the growth of a free market
in Afghanistan. CIPE continues to support Afghan chambers of commerce,
which have made considerable progress in establishing public-private dialogue
and demand-driven programs for the business community.
Pakistan is perhaps the most challenging country in the region. It is a
country deeply troubled by inequality, violence, corruption, and poor
education, stemming largely from a lack of viable democratic institutions.
This is widely the case within the public sector, but equally evident in the
private sector. The chambers of commerce and business associations struggle
to find ways to participate in the policymaking process while functioning
under onerous legal restrictions. Corporate governance appears in a variety
of guises, but has yet to penetrate most businesses. Recently, the government
has indicated an interest in reforming some of the trouble areas in Pakistan’s
economy, a hopeful sign of widespread change throughout the country.
Like Pakistan, Bangladesh, Sri Lanka, and Nepal face challenges resulting
from internal struggles and terrorist activities. Nepal is also faced with
the trials and tribulations of transitioning from a monarchy to a democracy
and balancing a tenuous coalition government. Elections scheduled for late
2006 are approaching in Bangladesh, which suffers from the political quagmire
caused by the inability of the two main parties to work together. Sri Lanka
must cope with an ongoing civil war in addition to rebuilding its economy after
the deadly tsunami of late 2004.
CIPE’s work in South Asia focuses on building business association capacity,
developing the role of business in public policymaking, instilling the values of
corporate governance, reducing corruption, and improving access to economic information.
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