Eastern Europe has seen the rise of free market and democratic ideals in recent years, leading to the advance of more open economic governance since the early 1990s. In Ukraine, President Zelensky has carried on the reforms initially implemented by his predecessor following the Revolution of Dignity in 2014. This has included continued judicial and institutional reform, a modern anti-corruption framework, and more business-oriented economic initiatives. In Moldova, citizens elected their first female President in 2020, the anti-corruption-oriented leader Maia Sandu. She has worked to implement pro-Western policies to fight corruption, strengthen democratic institutions, and modernize the economy, further orienting the country towards the Euro-Atlantic community.
These advancements though have not been without challenges, setbacks, and international interference. While the economic effects of the COVID-19 pandemic were a challenge, Russia’s full-scale invasion of Ukraine in February 2022 sent shockwaves across the region. The war has significantly impacted not only Ukraine, but the wider region. Through this, Ukraine has defended its independence, demonstrating its extreme fortitude and resilience in the face of heightened aggression, while striving to implement more democratic and market-oriented norms and ideals. Neighboring Ukraine, Moldova has also been a target of Russia, albeit only through disinformation, anti-government protests, and coercive threats. Its government has fought back as it looks to weaken Russian influence within its borders. In both countries, citizens and civil society have also continued to advocate for strengthening small and medium-sized businesses (SMEs) and elevate their voice in political and societal discourse. Despite these challenges, both Ukraine and Moldova have proven steadfast in their fight to push back against Russian aggression and become members of the West. A testament to these efforts is the announcement by the European Union (EU) to permit both countries to start discussions on the EU accession process.
Brief Description
Since 2006, CIPE’s work in Moldova has strengthened the private sector’s capacity, enhanced public-private dialogue, and deepened the understanding of corrosive capital and its effects on the Moldovan economy. Actively involved in Moldova, CIPE collaborates with various local stakeholders to promote economic growth, good governance, and ethical business practices. Through strategic partnerships and initiatives, CIPE aims to empower SMEs and women entrepreneurs while advocating for fair regulatory policies and combating corruption.
CIPE has been engaged in Ukraine for nearly three decades, establishing an office in Kyiv in 2010. CIPE’s local team supports a network of over 200 business associations and chambers of commerce across Ukraine, representing over 40,000 SMEs. CIPE’s core partners are the National Business Coalition (NBC), the Ukrainian Business Council (UBC), the National SME Platform, and the Union of Ukrainian Entrepreneurs (SUP). CIPE is a member of RISE Ukraine, a coalition of Ukrainian and international organizations working to promote integrity, sustainability, and efficiency within Ukraine’s recovery and reconstruction process.
CIPE’S Strategy and Priorities in the Region
- Business Advocacy: Ensuring that the private sector is engaged in the upcoming reconstruction efforts in Ukraine through input on priorities, access to finance, and policy advocacy. Fostering collaboration within the private sector to develop and advocate for fair regulatory policy reforms. Supporting private sector advocacy for urgent reforms and policy changes reflecting the needs of SMEs in Moldova and Ukraine.
- Policy Advocacy – Supporting business leaders in advocating for reforms and policy initiatives in accordance with EU requirements.
- Association Capacity – Improving access to mentorship and expertise on capacity building for business membership associations, as well as providing guidance to young entrepreneurs.
- Business Integrity and Anti-Corruption: Helping to reduce corruption, increase transparency and accountability, and strengthen business compliance practices. Enhancing the contribution of the private sector in fostering SME growth while promoting standards of good governance, accountable foreign investments, international trade, and ethical business practices.
- Workforce Development and Labor Market: Ensuring Ukrainians have the knowledge and technical skills needed now and as the country moves towards EU accession. The focus is on internally displaced persons (IDPs), veterans, and creating opportunities that encourage displaced Ukrainians to return.
- Women’s Economic Empowerment: Empowering Ukrainian women and business leaders to play a full, active role in deciding how Ukraine responds to current challenges and builds for a prosperous, peaceful future. In Moldova, the focus is on strengthening women’s economic empowerment by advocating for inclusive policy reforms and promoting gender-inclusive representation in private-public dialogues. A further focus is on building the capacity of Moldovan women’s business associations to address systemic gender-related barriers and campaigning for gender-equitable reforms.
- Trade Facilitation and Market Access: Working with the government of Ukraine and the private sector to increase revenues and decrease hurdles to cross-border movement of goods.
- Investment and Economic Security: Supporting efforts to align the regulatory framework according to the EU acquis, while also providing support in establishing the best mechanisms to screen incoming investments and ensure that it does not undermine democratic institutions and the national interests of both Moldova and Ukraine.
Current Work
In Moldova
CIPE works with the Associations of Enterprises in the Meat Processing Industry (PIIPC) to foster increased collaboration within the private sector through collective action initiatives. The focus is on developing and advocating for fair regulatory policy reforms related to the agricultural sector, such as advocating for the Single Tax, Value Added Tax (VAT) on agri-food products.
Additionally, CIPE supports Alliance of Small and Medium-sized Enterprises (AIM) with enhancing the contribution of the private sector in fostering SME growth and promoting standards of good governance and ethical business practices. This collaboration extends to fostering cross-regional partnerships with fellow associations and experts from the EU and Ukraine. To achieve this, AIM is developing the White Book on SMEs and will organize the 1st SMEs national conference, titled “Empower Locals”. AIM also engages in policy advocacy through collective action initiatives to create equitable regulatory policy reforms.
CIPE and the Light Industry Employers Association (APIUS) aim to bolster Moldova’s Textile, Apparel, Footwear, and Leather Goods (TAFL) industry. APIUS, with CIPE’s support, plans to develop a White Paper on the industry’s current state, focusing on Moldova’s economic development and integration into the European market. Additionally, legislative advocacy based on the White Paper’s findings will target specific gaps in laws affecting the TAFL industry, aiming to engage government authorities and advocate for necessary amendments. Through these efforts, they aspire to foster sustainable growth, innovation, and global competitiveness in Moldova’s TAFL industry.
Furthermore, CIPE partners with Association of Female Entrepreneurs from Moldova (AFAM) to strengthen women’s economic empowerment by developing inclusive policy reforms and promoting gender-inclusive representation in private-public dialogues. AFAM engages with the Secretariat of the Alliance for Women’s Economic Empowerment in Moldova on policy advocacy initiatives and arranges networking gatherings and online educational events to empower women entrepreneurs and enhance their access to finance.
Lastly CIPE collaborates with the Centre for the Analysis and Prevention of Corruption (CAPC) to strengthen the integrity of SMEs by implementing Anti-Bribery Management Systems according to ISO 37001 standards. CAPC conducts training sessions to empower SMEs and cultivate a business environment characterized by elevated ethical standards and a robust stance against corruption.
In Ukraine
Since the start of the war in February 2022, CIPE plays an instrumental role in supporting its partners to elevate their voice in advocating for their role in Ukraine’s recovery and reconstruction process through effective public-private dialogue.
Through the Economic Expert Platform (EEP), the CIPE-facilitated National Business Coalition (NBC) and the Ukrainian Business Council (UBC) are supported in developing unified positions on policy initiatives and economic reforms that are currently being debated. This permits Ukraine’s private sector to effectively engage in discourse on measures that are needed to create a business environment conducive to the economic resilience of the country and its EU accession process. For instance, the NBC and UBC have successfully encouraged legislative reforms in Verkhovna Rada (Ukrainian National Parliament), addressing critical issues such as reforming the Bureau of Economic Security (BES), reforming the Tax and Customs Services, and eliminating the discretion of officials in their interaction with the private sector.
As a member of RISE Ukraine, CIPE contributes to ongoing recovery and reconstruction discussions by emphasizing transparent and accountable modernization initiatives and strengthening the role of Ukrainian companies in the recovery process. CIPE’s support also extends to capacity-building programs like the Corporate Governance Professional Association (CGPA), which provides training on corporate governance to Ukrainian SMEs and state-owned enterprises (SOEs). Further, CIPE partners with the Ukrainian Network of Integrity and Compliance (UNIC) to provide anti-corruption and compliance training to the private sector. Through these partnerships, CIPE empowers private sector leaders to drive conversation surrounding corruption and business integrity, creating change and resilience amidst a myriad wartime challenges.
In addition, CIPE works to empower women business leaders and entrepreneurs to effectively engage in Ukraine’s reconstruction process and enhance their capacity to operate in the marketplace. For instance, CIPE is currently partnering with the Institute of Partnership and Sustainable Development (IPSD) to provide offline and online education with guidance and mentorship to enhance small business creation and development.
More recently, CIPE partnered with the Centre for Economic Strategy (CES) to identify and close governance gaps that allow corrosive capital inflows into certain sectors of Ukraine’s economy.
Overall, CIPE’s comprehensive efforts in Ukraine exemplify its commitment to fostering resilience, supporting post-conflict recovery, combatting corruption, and advancing democratic values. By empowering the private sector and facilitating dialogue among stakeholders, CIPE plays a crucial role in Ukraine’s ongoing journey towards stability and prosperity, even amidst the impact of the war.
Past Successes
CIPE has been active in the Eastern Europe region for nearly 30 years. Some recent highlights of CIPE’s work in the region include:
In Moldova
- Organized the 1st Leadership Academy for Development program with Stanford University, training over 35 government officials on reform design and implementation.
- Supported the Alliance of Small and Medium-sized Enterprises (AIM) in growing its membership, develop the Code of Ethics for SMEs, and advocating for policy initiatives, with 2% endorsed by the Moldovan Parliament in 2023 and 40% of the AIM Legislative Agenda receiving official government endorsement.
- Established the Alliance for Women’s Economic Empowerment, comprising 12 women’s civil society organizations and business associations focused on addressing barriers to women’s economic empowerment.
- Supported American Chamber of Commerce of Moldova in establishing its Ethics and Compliance Club, which trains members on corporate governance and investment policy advocacy.
- Analyzed trust levels in state institutions by the business community and assessed the impact of regional crises, such as the war in Ukraine, with local partners.
In Ukraine
- Played a pivotal role in advocating for legislative changes, with 10 pieces of legislation successfully advocated for by the UBC and NBC being adopted.
- Unified the voice of Ukrainian business on key economic reform initiatives through CIPE’s core partners and the EEP, such as a national business agenda, the reform of the Bureau of Economic Security, the reform of the tax revenue system, and related institutional reforms related to EU accession and Ukraine’s economic resilience.
- Strengthened a robust network of business associations and chambers of commerce, which encompasses over 200 business associations and chambers of commerce across Ukraine. This network represents a collective voice for more than 40,000 SMEs in the region. Notable among CIPE’s core partners are the NBC, which unites over 90 associations, the UBC consisting of 112 associations, the National SME Platform uniting nearly 80 business organizations, and SUP, boasting a membership of over 1,000 SMEs.
- Contributed to the efficacy and voice of RISE Ukraine, a coalition promoting integrity, sustainability, and efficiency in Ukraine’s recovery and reconstruction process.
- Trained government officials and private sector members in public-private dialogue, anti-corruption, and compliance through various programs and initiatives.
- In partnership with Stanford University’s Center on Democracy, Development, and the Rule of Law, and the Ukrainian Catholic University launched the Leadership Academy for Development in Ukraine (LADU) in 2016. Since then, CIPE conducted 7 LAD programs for promising mid-level government officials, private sector practitioners, and civil society leaders, adding 4 case studies to the LAD portfolio and providing an open-ended platform for networking and knowledge-sharing among the 225 members of the LADU alumni network.
CIPE’s efforts in Moldova and Ukraine reflect a commitment to fostering democratic governance, economic growth, and ethical business practices in Eastern Europe. Through strategic partnerships and targeted initiatives, CIPE continues to play a pivotal role in shaping the region’s future.
Contacts
- Brian Lee, Program Director, Eastern Europe
- Anastasia Vepkhvadze, Associate Program Officer
- Onorina Soric, Program Officer
- Elena Ratoi, Program Officer, WE-Champs
- Oksana Oleinikova, Ukraine Country Director
- Natalia Zhuhay, Senior Program Officer
- Nataliia Renova, Finance Officer
- Yelyzaveta Aleksiiuk, Program Coordinator
- Tetiana Narchynska, Monitoring & Evaluations Specialist
- Iryna Kryvoruchko, Program Associate
- Luke Ellis, Program Associate