CIPE Launches New Corrosive and Constructive Capital Initiative to Strengthen Democracy in Emerging Markets

05.17.2021 | Press Releases | CIPE

WASHINGTON, D.C. (May 17, 2021)  The Center for International Private Enterprise (CIPE) is announcing the next phase of its Corrosive and Constructive Capital Initiative, with the debut of a new website and resources.

The project serves several goals:

  • Highlight evidence, tools, and methods that governments, businesses, and citizens in emerging economies can use to neutralize the harmful effects of Corrosive Capital foreign investments,
  • Attract Constructive Capital, and
  • Join a worldwide network of individuals and organizations committed to markets and democracy.

“The new website for this Initiative will be a crucial part of our global efforts. It will feature CIPE’s latest research, serve as a connection point between CIPE experts and local stakeholders on matters of Corrosive and Constructive Capital, and will provide the latest information on upcoming programs and events,” said CIPE Executive Director Andrew Wilson.

CIPE defines “Corrosive Capital” as international financing to countries that lacks transparency, accountability, and market orientation. It often flows from authoritarian regimes into new and transitioning democracies, in many cases widening corruption and undermining efforts to support more inclusive economies. CIPE uses the term “Constructive Capital” to describe transparent, accountable, and market-oriented investments.

To address the threats associated with Corrosive Capital, CIPE supports programs tailored to various contexts and countries. It empowers local stakeholders to advance democratic and market-oriented principles and institutions. The new website can be found here.

Corrosive Capital serves as a threat because it can exploit and exacerbate governance gaps to influence economic and political developments in recipient countries. CIPE and its partners promote accountability, transparency, and support for resilient markets that generate economic growth and greater opportunity. The CIPE Corrosive and Constructive Capital Initiative website is expected to become a definitive source for supporting the push for good governance and Constructive Capital globally.

CIPE is the global NGO affiliated with the U.S. Chamber of Commerce that operates in some of the most challenging parts of the world. Currently supporting more than 200 programs in over 80 countries, CIPE’s on-the-ground activities are aimed at helping develop sustainable private sectors, maintaining viable market economies, and supporting democracy.