CENTER FOR INTERNATIONAL PRIVATE ENTERPRISE
ANNUAL REPORT 2010
CIPE ANNUAL REPORT 2010
TABLE OF CONTENTS
WELCOME & HIGHLIGHTS
CIPE BOARD OF DIRECTORS
H E L PI N G BU I L D D E M O C R AC Y T H AT D E L I V E R S
ASIA & SOUTH ASIA
The Center for International Private Enterprise (CIPE) strengthens democracy around the globe through private enterprise and market-oriented reform. CIPE is one of the four core institutes of the National Endowment for Democracy and an affiliate of the U.S. Chamber of Commerce. Since 1983, CIPE has worked with business leaders, policymakers, and journalists to build the civic institutions vital to a democratic society. CIPEâ€™s key program areas include anti-corruption, advocacy, business associations, corporate governance, democratic governance, access to information, the informal sector and property rights, and women and youth. CIPE programs are supported by the National Endowment for Democracy, the U.S. Agency for International Development, the Middle East Partnership Initiative, and the U.S. Embassy in Iraq Office for Private Sector Development.
L AT I N A M E R I C A
F I N A N C I A L D ATA
FROM THE CHAIRMAN AND THE PRESIDENT
Creating and integrating the institutions of democracy
and the systems that facilitate a free market is a major challenge for nations emerging from authoritarian rule. The Center for International Private Enterprise (CIPE) has helped the proponents of reform meet this challenge in the developing and former communist worlds for over two decades. CIPE has worked with its partners to clear the way for entrepreneurial activity, bringing structure and predictability to economic transactions, and encouraging the risk taking that fuels growth and prosperity. CIPE’s mission is at the heart of the development mission. The organization has successfully targeted the informal economy that so saps the life blood of nations trying mightily to combat poverty while simultaneously building enduring institutions and rule-of-law systems. CIPE has been part of contemporary history in new democratic nations around the world.
It has been said that building market democracies is a journey, not a destination. If so, [Strategies for Policy Reform, Volume 2] is a road map, a highly useful manual for the architects of successful societies.
J. Brian Atwood Chairman, Development Assistance Committee , Organisation for Economic Co-operation and Development
As we write this letter, the unpredictable winds of change are sweeping through the Middle East. Not unlike the time after the fall of the Berlin Wall over 20 years ago, that empowered millions of citizens to call for representative democracies and take an active role in their formation, CIPE finds itself at another moment of great opportunity. Then as now, CIPE’s global mission – to strengthen democracy through market-oriented reform – holds true. Our partners in the Middle East and throughout the world are poised and prepared to provide thoughtful input and guidance to the transformation of their own countries and economies, and are embracing the opportunities and responsibilities of democracy. This worldwide movement away from autocratic control, crony-capitalism, and state-driven economies and towards transparency, accountability, fairness, and free enterprise echoes the transformation of other new democracies. To aid these initiatives, CIPE works to empower local organizations
GREGORI LEBEDEV CIPE CHAIRMAN Senior Advisor The Robertson Foundation
to exert their leadership in order to change – politically and economically – the environments in which they live and work. CIPE calls this Democracy that Delivers, and it is the single unifying theme of all our work. Since its founding in 1983, CIPE has teamed with nearly 500 partners – business associations, think tanks, journalists, academics, and a variety of private sector groups – in more than 100 countries where there is both a need and an opportunity for market reform. CIPE brings international best practices, lessons learned, unique intellectual resources, and successful methodologies from across the world to its partner network. And, CIPE’s engagement encourages local ownership and responsibility, thereby ensuring that its work is relevant to those who will ultimately benefit. With resources and approaches refined over 27 years of successful programs and partnerships, addressing such topics as advocacy, anti-corruption, corporate governance, entrepreneurship, and rule of law, CIPE is well-positioned to continue
THOMAS J. DONOHUE CIPE PRESIDENT President and CEO U.S. Chamber of Commerce
helping its partners build the public institutions crucial to successful democracies. Now more than ever – there is much to be done. We are pleased to present CIPE’s programs for 2010 and to report on the hard work and accomplishments of our many global partners. With the ongoing support of the National Endowment for Democracy, the U.S. Agency for International Development, the Middle East Partnership Initiative, the U.S. Chamber of Commerce, and others, CIPE and its partners have been and will remain committed to building market institutions that provide opportunities for sustainable economic growth and the development of democracy around the world.
2010 HIGHLIGHTS Throughout 2010, CIPE worked across the globe to support democratic reform and developing market economies. This report highlights our partners, their successes and achievements, and the exceptional nature of their work. AFRICA
CIPE partners with the Private Enterprise Foundation (PEF) in Ghana to provide advocacy support to more than 100 farmer-based associations in four districts in northern Ghana. With CIPE and PEF support, these associations have strengthened advocacy skills and dialogue with local government officials, providing better access to community development programs.
ASIA & SOUTH ASIA
The Institute for Solidarity in Asia works to reform and build the capacities of local governments across the Philippines and emphasizes that delivery of government services is an important part of democratic growth. In 2010, the city of Iloilo increased local tax collection rates and reduced the time required to process business licenses by 85 percent. This healthier economic environment contributed to an expected quadrupling of the city’s manufacturing output.
EUROPE & EURASIA
With support from the Association for Foreign Investment and Cooperation in Armenia, a coalition of Armenian business associations successfully advocated for new legislation on state support for small and medium-sized enterprises (SMEs). The new law will ensure that government resources intended to promote small enterprises are allocated appropriately, demonstrating that private sector advocacy is an important voice in the democratic process. In Russia, CIPE partner OPORA (Union of Business Associations of Russia) successfully advocated for a significant change in the way companies bid on federal, regional, and local government contracts. Russia’s Federal Statistical Agency estimates that the change will help free up approximately $50 million in SME capital.
L AT I N A M E R I C A & T H E C A R I B B E A N
The Paraguayan Foundation for Cooperation and Development has been building an entrepreneurial culture by introducing entrepreneurship education in public schools in Paraguay. Over 1,600 young people have already benefited from this program.
MIDDLE EAST & NORTH AFRICA
CIPE’s work with partners in Lebanon was integral to encourage and support the establishment of a Good Governance Unit within the Lebanese Prime Minister’s office. This unit stresses public-private dialogue and works with a wide range of civil society organizations on anti-corruption and governance issues within the public administration.
CIPE’s 2010 youth essay competition attracted more than 600 entries from 81 countries with essays on issues of women’s empowerment, democracy that delivers, and the linkages between entrepreneurship and development. CIPE published and shared the winning essays with its extensive global network. Several essays have been published by local media around the world.
CIPE AREAS OF WORK
D E M O C R AT I C GOVERNANCE CIPE works to create and strengthen institutions of accountability and increase public participation in reform.
LEGAL & R E G U L ATO RY R E F O R M CIPE encourages the private sector to identify laws and regulations that hinder business activity and make reform recommendations.
C O M B AT I N G CORRUPTION With the private sector leading the way, CIPE seeks to improve governance mechanisms and standards and make a link between cultural norms and the rule of law.
ACCESS TO I N F O R M AT I O N CIPE works with local partners to achieve greater transparency in government and an unrestricted voice for reformers.
BU S I N E S S A S S O C I AT I O N DEVELOPMENT CIPE supports grassroots participation of private sector organizations by providing support and technical assistance.
WOMEN & YOUTH CIPE supports women and youth through entrepreneurship and management programs.
C O R P O R AT E GOVERNANCE CIPE initiates and supports programs to educate private sector leaders and the public on fairness, accountability, responsibility, and transparency.
INFORMAL SECTOR & PROPERTY RIGHTS CIPE and its partners support the democratic voice and participation of the informal sector, reforming business registration procedures, and strengthening private property rights.
CIPE OBJECTIVES • Foster institutions necessary to establish and sustain market-oriented democracies. • Increase private sector participation in the democratic process. • Increase support for and understanding of the freedoms, rights, and responsibilities essential to market-oriented democracies among government officials, businesspeople, media, and the public. • Improve governance through transparency and accountability in the public and private sectors. • Strengthen freedom of association and private, voluntary business organizations. • Promote an entrepreneurial culture and an understanding of how markets work. • Expand access to information necessary for sound entrepreneurial and policy decisions.
BOARD OF DIRECTORS Gregori Lebedev CIPE Chairman Senior Advisor The Robertson Foundation Grant D. Aldonas Principal Split Rock International Stanton D. Anderson Senior Counsel to the President and CEO U.S. Chamber of Commerce Managing Director Campaign for Free Enterprise Ambassador Barbara Barrett President and CEO Triple Creek Ranch Karan Bhatia Vice President and Senior Counsel for International Law and Policy General Electric Company Myron A. Brilliant Senior Vice President for International Affairs U.S. Chamber of Commerce Harry Clark Managing Partner Stanwich Group, LLC Senior Counselor Brunswick Group Peter M. Cleveland Vice President, Legal and Corporate Affairs Intel Lynda Y. de la Vi単a, Ph.D. Dean of the College of Business University of Texas at San Antonio Thomas J. Donohue President and CEO U.S. Chamber of Commerce Joseph Ha, Ph.D. Michael J. Hershman President and CEO The Fairfax Group
Ambassador Richard N. Holwill Vice President of Public Policy Alticor, Inc. Karen Kerrigan President & CEO Small Business & Entrepreneurship Council Elliot Schrage Vice President of Communications and Public Policy Facebook, Inc. Rob Shepardson Founding Partner SS+K John H. Stout Chair, Corporate Governance and Investigations Group Fredrikson & Byron, P.A. John D. Sullivan, Ph.D. Executive Director Center for International Private Enterprise Sandra Taylor President and CEO Sustainable Business International, LLC Hildy Teegen, Ph.D. Dean of the Moore School of Business University of South Carolina
Mary Ann Gooden Terrell Associate Judge Superior Court of the District of Columbia
Phillip N. Truluck Executive Vice President and COO The Heritage Foundation George J. Vojta Chairman and CEO Westchester Group LLC Rosa Whitaker President and CEO The Whitaker Group
51 COUNTRIES 122 PARTNERS 165 PROJECTS
Functional democracies deliver tangible benefits for all segments of the population and ensure the protection of basic freedoms and human rights. Their effectiveness and durability are not defined by passing a single law or strengthening a regulation; functional democracies involve strong, transparent processes and institutions for holding elections, making policy decisions, developing laws and regulations, and ensuring accountability. Appropriate and consistent governance ensures that political systems are responsive to the needs and concerns of a country’s citizens, and that electoral promises translate into real action and outcomes.
CIPE nurtures private enterprise throughout the developing constituency most eager for democratic and • By working with the business community to
CIPE operates at the intersection of democratic and
Venezuela, and from Iraq to Pakistan, engaging
market reforms. By including the business community
business in policy reform, removing barriers to
in the reform process, CIPE helps put real economic
participation for historically underrepresented groups,
solutions in the hands of decision-makers. In partnering
strengthening governance processes, building the
with associations, think tanks, media groups, and other
capacity of civil society, improving the quality of
civil society organizations CIPE brings a wealth of
economic legislation, and reducing corruption.
knowledge from 27 years of experience conducting 1,300 reform programs in more than 100 countries
CIPE forms partnerships with local organizations and
around the world. CIPE provides technical expertise,
develops programs that have local ownership. In
helps build capacity for business associations and
developing a program strategy, CIPE focuses on the root
chambers of commerce, and helps strengthen private
causes of the key problems that countries face (including
sector advocacy. It has been at the forefront of key
corruption, lack of jobs, and poor functioning of public
reform initiatives from Egypt to Russia, from China to
services) and works to remedy the underlying causes.
and post-Soviet world by creating partnerships with the market reforms – ordinary, grassroots entrepreneurs.
Hernando de Soto
• By improving governance in towns across the
reduce corruption in Russia, CIPE is both
Philippines, CIPE is strengthening democracy
improving the economic competitiveness of small
on the local level and creating a more solid
firms and helping improve transparency in public
foundation for economic development
• In Yemen, the CIPE-sponsored documentary film
R AC I E S T H AT D E L I V E R
• By engaging students in Afghanistan through
HELPING BUILD DEMOC
By focusing on institutional reforms, these programs can achieve a much greater impact than by addressing singular or special interest concerns. At the very core, democracies and market economies are closely linked. Basic human and
Destructive Beast addresses corruption’s damage to
entrepreneurship and civics courses, CIPE
the economic, political, and social fabric of Yemeni
is providing the next generation of Afghans
economic rights are indivisible – whether one is talking about freedom of associations,
society. Government agencies in Yemen are using
with alternatives to state employment and is
rule of law, property rights, or freedom of expression. These rights are necessary both for
the film and its concrete policy recommendations
strengthening their belief in and understanding
to train officials on efforts to reduce corruption.
democracies to function and for market economies to take root and thrive.
AFRICA S T R AT E G I C OV E RV I EW For more than 20 years, CIPE’s efforts in Africa have helped build the capacity of business membership associations and strengthen the private sector as a voice for democratic reform and economic growth. In 2010, CIPE partnered with organizations in Nigeria to facilitate unprecedented public-private dialogue opportunities at the state level, bringing increased government attention to the issues of multiple taxation and security. In Kenya, CIPE supported efforts to build coalitions of private sector associations and to advocate for regulatory reforms to local government. In addition, CIPE worked to provide stakeholder input into legislation that will assist the micro and small enterprise sector. In 2011, CIPE will continue to work with its partners across Sub-Saharan Africa to build relationships between the public and private sectors, strengthen the capacity of business associations, empower women and youth entrepreneurs, and increase access to information. Leveraging democratic openings, CIPE will help business associations advocate for government policies that improve the business environment and create more democratic societies across Africa.
2010 PARTNERS AND PROJECTS Regional Expanding Africa’s Network for Reform Harambe Entrepreneur Alliance Engaging Africa’s Next Generation of Leaders Cote d’Ivoire Strengthening the Voice of the Informal Sector Ethiopia Empowering Grassroots Associations Mekelle Chamber of Commerce and Sectoral Associations Voice of the Mekelle Chamber
Private Enterprise Foundation Empowering Farmer-Based Organization Fostering Effective Public-Private Dialogue Kenya Kenya Association of Manufacturers Building Local Voices for Reform Promoting Local Governance Reform Kenya Gatsby Trust Strengthening the Voice of Kenya’s Micro and Small-scale Entrepreneurs Liberia
Alternative Paths to Prosperity
Institute of Economic Affairs Public-Private Dialogue for West African States
Empowering Private Sector Organizations
Nigeria Strengthening the Voice of Business in the North Central Zone Enugu Chamber of Commerce, Industry, Mines, and Agriculture Regional Business Agendas Jos Business School Enhancing the Capacity of Parliamentarians, Phase I Manufacturers Association of Nigeria Fostering Private Sector Participation in Policymaking through Tax Reform National Association of Nigerian Traders Fostering Effective Public-Private Dialogue
Nigerian Association of Small and Medium Enterprises Strengthening the Voice of Micro, Small, and Medium Enterprise Zambia Institute of Directors of Zambia Strengthening Corporate Governance in Small Enterprise Zimbabwe Building the Private Sector Voice for Reform Engaging Women Entrepreneurs
I M P ROV I N G D E L I V E RY O F G OV E R N M E N T S E RV I C E S AT T H E L O C A L L E V E L
Throughout 2010, CIPE supported the Kenya Association of Manufacturers (KAM) to build regional business coalitions throughout Kenya to strengthen grassroots political participation. In accordance with the 2010 constitution, Kenya is moving towards a decentralized form of government. Decision-making authority concerning economic policy, taxation, and services will transfer to cities and counties across the country. KAM brought together municipal governments and 29 private sector associations representing businesses in the major cities of Eldoret, Kisumu, Mombasa, and Nakuru to solve local problems and improve government delivery of services. For the first time, a common set of priority issues united private sector associations and government representatives in dialogue. Through private meetings and public roundtables, the private sector and government now actively participate in the democratic process. In 2011, the coalition will continue to work with government on improving service delivery and advocating for reforms at local and regional levels.
THE COALITIONS’ WORK BROUGHT A B O U T T H E F O L L OW I N G C H A N G E S I N 2 0 1 0 : • Eldoret, Kisumu, Mombasa, and Nakuru municipal governments reduced the number of unscheduled public health inspections of business properties. This has been a source of friction as the inspectors were accused of levying fines and accepting bribes. • The municipal governments of Eldoret, Kisumu, Mombasa, and Nakuru reviewed security concerns presented by the coalitions and made improvements in the policing of business areas and the removal of illegal structures.
ADDRESSING SECURITY CONCERNS TO FOSTER SUCCESSFUL BUSINESSES
An insecure business environment was cited as the Enugu State business community’s primary concern. Over the past five years, southeastern Nigeria has experienced a significant increase in kidnappings and armed robberies, notably on public roads used for travel and trade. To address this growing threat, the Enugu Coalition of Business and Professional Associations (ECOBPA), led by the Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA), conducted an advocacy campaign in the spring and summer of 2010 to improve the security situation. The campaign was directed toward the Enugu State Governor and the National Inspector General of Police to address how the escalating threat of kidnappings and armed robberies is negatively affecting business in the southeastern region. As part of the advocacy campaign, ECOBPA
ECOBPA’s advocacy team on security also met with Nigerian National Inspector General of Police Ogbonnaya Onovo to provide detailed recommendations from the private sector on how to improve security in the region and to address the state of bribery at government road stations. These visits received significant media coverage. Onovo reflected business community concerns, emphasizing that “The issue of bribery among police officers has reached an alarming level, especially as the roadblocks are now being mounted for bribe collection. I will soon remove the roadblocks because the objective for which they were introduced has been defeated.”
P RO G R A M A DVO C AC Y E F F O RTS I N N I G E R I A I N C L U D E T H E S E R E S U LT S : • Police roadblocks on a critical trade route, which are often used more for collecting bribes than enforcing security, decreased from 65 to 15 stops on a critical trade route 100km long between Onitsha and Enugu. As of July 2010, over 1,000 businesses in southeastern Nigeria are now able to move their goods more efficiently and securely and at a lower price.
• In Mombasa and Eldoret, the municipal council made changes that resulted in improvements in garbage collection and traffic congestion, because of advocacy coalition work. Consistent sanitation services and improved transportation help local businesses improve services for customers. • The business coalitions worked with governments on prioritizing road repairs. The government repaired four major transportation routes in Mombasa and Nakuru after several roundtable discussions.
held a two-day Security Summit in May 2010 that drew 300 participants from seven states in Nigeria’s south and southeast regions.
Enugu Chamber of Commerce Director General Emeka Okereke speaks about his experiences in Nigeria’s southeastern region.
• Police patrols have increased, thereby reducing the possibility of robberies of businesses and kidnappings of prominent businessmen.
ASIA & SOUTH ASIA S T R AT E G I C OV E RV I EW CIPEâ€™s 2010 strategy in Asia and South Asia focused on grassroots efforts to improve democratic and economic conditions, including strengthening the capacity of chambers of commerce and business associations, engaging with young people on democratic values and market ideas, and facilitating civil society input in the policymaking processes. CIPE worked with organizations across the region to implement this strategy. Despite the challenges of working in Asia and South Asia, there have been encouraging changes in the growing role that women play in local economies, and the way that chambers and associations are better able to represent their members. Going forward in 2011, CIPE will continue to build on these successes, encouraging organizations to take a greater role in policy advocacy, and strengthening governance in both the public and private sectors.
2010 PARTNERS AND PROJECTS Regional A Regional Conference on Sustainable Democracy Strengthening Corporate Governance in Asia Pakistan-Afghanistan Chamber of Commerce, Stakeholder Workshop Bangladesh Bangladesh Women Chamber of Commerce and Industry Promoting Womenâ€™s Entrepreneurship through Advocacy
Institute for Corporate Directors Improving Corporate Governance in Philippine Firms
Improving the Regulatory Environment for Business Associations
Institute for Solidarity in Asia Improving Public Governance at the Local Level
Strengthening Business Association Advocacy
Mongolian National Chamber of Commerce and Industry Strengthening Business Advocacy
Indonesia Business Links Promoting Business Ethics and Reducing Corruption
Advocacy for Democratization
Indonesian Institute of Corporate Directors Improving Corporate Governance in Publicly Listed Firms
Business Association Development
Encouraging Free and Open Dialogue on Policy Reform
Asian Institute of Management Combating Corruption in the Private Sector
Improving Local Governance and Organizing Policy Debate Forums
Nepal Nepal Press Institute Developing Economic Reporting Skills in Rural Journalists
Pakistan Informing the Democratic Dialogue Sri Lanka Pathfinder Foundation Economic Reform After the War Legal Advisory Service Thailand Institute of Directors Private Sector Approaches to Anti-corruption Vietnam Business Association Development
Samriddhi, The Prosperity Foundation Empowering Youth through Entrepreneurship
T A K I N G T H E L E A D I N P R I VAT E S E C T O R APPROACHES TO ANTI-CORRUPTION
CIPE’s work with the Thai Institute of Directors (IOD) cultivates private sector support for anti-corruption strategies. Shortly after its launch in 2010, this joint project successfully translated the growing interest in collective action into a viable private sector campaign. IOD developed an initial “business ethics declaration” containing broad themes: fighting corruption, promoting ethics, and raising employee and competitor awareness. Declaration signers commit to implement anti-corruption policies and compliance programs within a common framework and to provide business conduct guidance to managers and employees. Companies pledge to disclose and share their internal policies and experiences, even with competitors, to help disseminate and promote best practices. Notably, these companies agree to support the development of a certifying body to ensure continued compliance. In a country where public perceptions of corruption helped trigger nationcrippling chaos on several occasions in recent years, this joint partnership is making invaluable contributions to Thailand’s democratic development. Collective action is no longer an abstract concept in Thailand – it is an actual movement within the business community to attack corruption. Looking forward, CIPE’s work in 2011 will help IOD design the details of the commitment.
T H E I N S T I T U T E O F D I R E C T O R S ’ W O R K R E S U LT E D I N A N I N C R E A S E D U N D E R S TA N D I N G O F B U S I N E S S E T H I C S : • In his remarks at the opening ceremony of the November 2010 International Anti-Corruption Conference, Prime Minister Abhisit publicly lauded IOD’s initiative “as a viable approach to promote fair competition” and its potential to “provide tangible business incentives” for firms to eschew corrupt practices. • More than 40 companies have signed a business ethics pledge. Many of Thailand’s most prominent firms have pledged to support this initiative.
Comissioner of Thailand’s National Anti-Corruption Commission Professor Pakdee Pothisiri spoke at the Collective Action Coalition’s November 2010 National Conference in Bangkok.
PA K I S TA N S T R E N G T H E N I N G B U S I N E S S E S A N D A S S O C I AT I O N S
(From left) CIPE Pakistan Senior Program Manager Hammad Siddiqui, Executive Director John D. Sullivan, and Dawood Group Chairman Hussain Dawood celebrate the launch of the Responsible Business Guide.
CIPE’s efforts in Pakistan are part of a long-term strategy in the region, focused on strengthening corporate governance, building the capacity of chambers of commerce and business associations through technical assistance and small grants, and enhancing the skills of journalists to report on economic issues. In 2010, over 50 chambers and associations from around the country took part in various CIPE training programs. Increasingly, CIPE has begun to explore ways to bring these organizations together to articulate a shared vision of reforms needed for the private sector to flourish.
C I P E ’ S W O R K I N P A K I S T A N I N 2 0 1 0 R E S U LT E D I N T H E F O L L OW I N G A C C O M P L I S H M E N T S : • A CIPE-organized conference of chamber presidents resulted in the “Burbun Declaration,” a 16-point document representing the first time that chamber leaders laid out a joint advocacy agenda. One key point blocks the unilateral imposition of a national value added tax, addressing the business community’s concerns that the value added tax could lead to both corruption and inflation. • A new program in youth entrepreneurship, Aisha Ka Karobar, was launched in Lahore, Karachi, and Sukkher in partnership with the Citizens Foundation, a local non-governmental organization that works with disadvantaged youth. The program was modeled in part after CIPE’s successful Tashabos program in Afghanistan, which provides the education necessary for young entrepreneurs to start new enterprises and contribute to economic growth.
• In 2010, CIPE partnered with the Responsible Business Initiative and the Association of Certified Chartered Accounts to debut a new tool to encourage greater transparency, accountability, and integrity in Pakistan’s companies – the Responsible Business Guide: A Toolkit for Winning Companies. This document will serve as a blueprint to encourage greater understanding of corporate citizenship. • Approximately 2,000 members have joined eight women’s chambers of commerce. Additionally, women now sit on the boards of regional chambers of commerce across the country, thanks to the reformed trade organization ordinance that CIPE helped to pass in 2008. In 2010 alone, CIPE has contributed to the establishment of three new women’s chambers of commerce in Mardan, Peshawar, and Quetta.
EUROPE & EURASIA S T R AT E G I C OV E RV I EW Throughout Europe and Eurasia, CIPE helped business organizations to develop important skills in advocacy and build networks to promote crucial reforms. CIPE continued to partner with several regional coalitions in Russia to enable businesses to resist extortion and create a legislative framework to reduce opportunities for corruption. CIPE worked with local think tanks to increase citizens’ understanding of issues such as rule of law, transparency, and corporate governance and to counter authoritarian trends in Eurasia by empowering the business community to lead economic and political reform efforts. CIPE also developed a core group of local experts in the Balkans and Caucasus who support business organizations in improving their ability to participate in the policy process. In 2011, CIPE will support private sector participation in strengthening democratic processes in Europe and Eurasia by partnering with business organizations and think tanks to promote economic reform, strengthen the business environment, and fight corruption. CIPE will work with regional partners to strengthen the advocacy and organizational capacities of local business support organizations, improve the quality of debate and build stronger consensus among civil society groups, and promote democratic ideals and entrepreneurship among youth.
2010 PARTNERS AND PROJECTS Regional
Improving Access to Information
Entrepreneurship Development Foundation Implementing the National Business Agenda through an Advocacy Campaign
Bishkek Business Club Business Leadership for Constitutional and Economic Reform
Twenty Years after the Fall of the Berlin Wall – Lessons Learned and the Future of Reform Training of Trainers in the Balkans-Caucasus Strengthening Business Support Organizations Armenia The Association for Foreign Investment and Cooperation Strengthening the Network of Business Associations
Belarus Analytical Center “Strategy,” Institute for Privatization Management, and Minsk Union of Entrepreneurs and Employers Business Advocacy in Belarus Kazakhstan Shanyrak Reducing the Informal Sector and Strengthening Property Rights
Strengthening Coalition-led Business Advocacy Kyrgyz Stock Exchange Press Club Strengthening Understanding of Market Concepts Moldova Institute for Development and Social Initiatives Advocating for the National Business Agenda
Strengthening Moldova’s Reform Network Montenegro Center for Entrepreneurship and Economic Development Strengthening Montenegro’s Economy through a Public-Private Dialogue Russia Building Capacities and Professional Skills of Business Associations Building Public Dialogue on Administrative Barriers to Business Development
Small and Medium-sized Enterprise Policy Advocacy
Promoting Entrepreneurship in the North Caucasus
Fighting Corruption in Ukraine, Phase One: Building the Capacity of Business Associations
Vladikavkaz Institute of Management Developing the Entrepreneurial and Leadership Skills of Youth in the North Caucasus
Property and Freedom Institute Strengthening Business Associations’ Capacity as a Watchdog over International Commitments
International Institute of Business Improving Governance in the Small and Medium-sized Enterprise Sector
Serbian Association of Managers Strengthening the Voice of Small Business
Turkmenistan Union of Economists Recreating the Middle Class
A DVO C AC Y E F F O RTS I N A CHALLENGING ENVIRONMENT
In 2010 the Belarusian business community galvanized quickly in a challenging business environment to advocate for market-oriented economic reform and improvement in the entrepreneurial climate. One of the main drivers of advocacy in the country, the Belarusian Confederation of Entrepreneurship, which was founded as a coalition of pro-reform business organizations, expanded its membership by nearly 70 percent in 2010. Additionally, more than 20,000 owners of small and medium-sized enterprises (SMEs) united for the fifth consecutive year to adopt a National Business Platform (NBP) representing the business community’s unified vision for reform. The NBP-2010 outlined 117 concrete recommendations in five key areas: strengthening property rights, reducing red tape for entrepreneurship, simplifying taxation and licensing procedures, improving competitiveness, and increasing transparency in governance. These areas reflect the priorities of the independent business community in steering Belarus toward economic reform and democratic governance.
A D V O C A C Y E F F O R T S I N 2 0 1 0 R E S U LT E D I N T H E S E L E G I S L AT I V E C H A N G E S : •
Presidential Decree #450 (September 2010), “On Licensing Economic Activities,” simplifies licensing in areas that affect 48 percent of SMEs and 88 percent of individual entrepreneurs in Belarus. This change is estimated to save businesses approximately $70 million annually in costs associated with the government’s licensing requirements.
which liberalizes pricing and reduces taxes in the automobile services industry. The amendment creates incentives for working in the official economy, which will help formalize the work of 8,000 informal entrepreneurs operating in the automotive industry. •
Law of the Republic of Belarus #148-3 (July 2010), “On SME and Entrepreneurship Support,” clarifies the category of small and medium-sized businesses. This will improve transparency for SME operations and enhance dialogue between government and business. In April 2010 the Ministry of Economy passed an amendment to the regulations on “Instructions for Shaping Prices and Tariffs for Vehicle Technical Services and Repairs,”
Presidential Decree #49 (September 2010), “On Some Issues of Expenditures for Representation Purposes,” eases restrictions on service industries such as hotel and hospitality services, food services, and transportation. This decree is expected to reduce corporate income tax for SMEs by up to $20 million and encourage informal SMEs to enter the official economy.
I N N O VAT I V E A N T I - C O R R U P T I O N APPROACH MAKES INROADS
Preventing corruption begins with improving legislation. Poorly drafted or inconsistent laws are subject to interpretation by officials; such bureaucratic discretion often gives rise to corruption. This issue is particularly important in Russia, with overlapping layers of federal, regional, and local laws. In 2010, the Saratov Chamber of Commerce and Industry (CCI) and CIPE developed an innovative approach to anti-corruption by improving implementation of Russian federal law at the local and regional levels. This approach reinforces the private sector’s importance in reducing corruption. The effort is part of the eight-year “Small and Medium-sized Enterprise (SME) Policy Advocacy” project funded by the U.S. Agency for International Development, which has helped build 17 regional coalitions consisting of 230 business associations and other professional organizations, representing more than 20,000 firms throughout Russia. The Saratov CCI taught seven other regional coalitions to use this approach and CIPE supported the analysis of laws and development of recommendations to reduce corruption. The coalitions unveiled the results of their work in September 2010 at a Russian Federation Chamber of Commerce and Industry conference in Moscow, attended by 65 government officials, academics, and legal experts. The Saratov CCI built this methodology on the basis of its previous efforts, endorsed by the Russian Federation Chamber, to evaluate individual draft laws for their “corruption potential.” Sixteen local chambers have already been officially accredited to use that earlier approach to conduct such expert examinations.
T H E S A R AT O V C H A M B E R O F C O M M E R C E A N D I N D U S T R Y ’ S E F F O R T S R E S U LT E D I N T H E F O L L O W I N G : •
The methodology contains a number of innovative features, such as a rigorous legal analysis with an in-depth survey of lawyers and entrepreneurs; concrete, actionable recommendations to improve local and regional laws; and a roadmap for advocacy by business associations. Saratov CCI published findings, including survey results and flow charts that show, step-by-step, the stages at which applicants for government permits
interact with the approval process. By identifying the steps in the process where corruption is most likely, business associations can advocate for effective legal and regulatory reform. •
Authorities in both the Smolensk and Saratov regions pledged to adopt the methodology, working with local chambers of commerce to review laws in search of contradictions.
L AT I N A M E R I C A
& THE CARIBBEAN
S T R AT E G I C OV E RV I EW Many Latin American and Caribbean countries have experienced the dismantling of democratic institutions and increased political polarization over the last decade. In 2010, CIPE’s programs in the region addressed key democratic challenges by working with partners to create and maintain successful policy dialogue with governments in Argentina, Colombia, Nicaragua, and Paraguay. CIPE efforts led to economic policy reform and public-private dialogue that enabled major changes in legislation and removed restrictions on property rights. CIPE has been working throughout Latin America with youth to help them understand the importance of democracy and a market economy and to acquire the skills necessary for becoming successful leaders and entrepreneurs in their communities. In 2011, CIPE will focus on strengthening and improving the private sector’s engagement in the democratic process, as well as improving the quality of policy debate in countries that are facing key elections in 2011 including Argentina, Guatemala, Nicaragua, and Peru.
2010 PARTNERS AND PROJECTS Regional Strengthening Business Associations in Latin America Strengthening Corporate Governance in Latin America Political Science Institute Perspectiva Magazine: Promoting Reform in Latin America Argentina Center for the Implementation of Public Policies Promoting Equity and Growth Strengthening Institutions and Advocacy for Fiscal Reform Center for Financial Stability Furthering Good Corporate Governance Practices
Improving Transparency in Public Pension Fund Management
Promoting Reform in Cuba Mexico
Foundation for Development in Democracy Building a Strategic Public-Private Partnership
Milenio Foundation Promoting Economic Freedom and Citizenship Colombia Confecámaras Creating Incentives for Corporate Governance Standards Fedesarrollo Advisory to Key Political and Judicial Actors on Economic Reform Initiatives Promoting a Reform Agenda
Center for Excellence in Corporate Governance Strengthening Corporate Governance in Mexico Nicaragua Superior Council for Private Enterprise Promoting Democracy through a National Business Agenda Panama National Council of Private Enterprise Promoting a Public-Private Partnership in Panama
Private Sector Economic Forum: Building a Reform Agenda in Paraguay Paraguayan Foundation for Cooperation and Development Strengthening Democracy through Entrepreneurship Education Peru
Instituto Invertir Promoting Leadership and Democratic Values Among Youth Venezuela Center for the Dissemination of Economic Knowledge Promoting Democratic Dialogue through a Legislative and Economic Analysis Program Venezuelan Confederation of Industries Enhancing Democratic Practices in Venezuelan Companies
Institute for Liberty and Democracy Strengthening Free Market and Democratic Practices in the Peruvian Amazon
INVESTING IN PERU’S FUTURE
Peru has enjoyed one of the highest economic growth rates in the region in recent years, but many citizens remain marginalized and unable to share in the benefits of that growth. Many constituents in regions outside the capital area feel excluded from the benefits of a growing economy. To encourage positive views of business, entrepreneurship, and democracy, CIPE partnered with Instituto Invertir to train students throughout the poorest regions of Peru – from the southern highlands to the northern Peruvian Amazon – in entrepreneurial and leadership skills through the EmprendeAhora youth program. In 2010, EmprendeAhora program educated 130 rural entrepreneurs on leadership, business plans, market economics, and democracy. Many of these students have launched successful businesses based on plans developed during the course. The alumni network component is an innovative part of this program and encourages students to disseminate knowledge in their cities and neighborhoods through forums, presentations, and workshops after graduation.
Candidates, including current President Juan Manuel Santos (center) discuss economic issues at one of three presidential debates in Barranquilla, Colombia.
P R E S I D E N T I A L D E B AT E S O P E N D I S C U S S I O N ON ECONOMIC POLICY
CIPE worked with the Foundation for Higher Education and Development (Fedesarrollo) to press decision makers to move beyond general discussions to actual platforms during the 2010 election period. Fedesarrollo, one of Colombia’s leading think tanks, organized three debates on key economic issues with presidential and vice-presidential candidates, providing an opportunity to present clear and detailed policy plans for their future administrations.
THE 2010 E MPRENDEA HORA PROGRAM A C C O M P L I S H E D T H E F O L L OW I N G : •
In 2010, EmprendeAhora trained 130 entrepreneurs on leadership, business plans, market economics, and democracy. These students developed 40 new business plans for businesses in their local communities.
Since the program’s inception in 2008, EmprendeAhora has produced 430 graduates who have launched 38 new viable businesses from plans developed during the program. Program graduates have completed more than 100 hours of training. Ten thousand high school, university, and technical school students have been trained by EmprendeAhora alumni. In addition to serving Peruvian communities, EmprendeAhora is encouraging participation in the democratic process.
In 2010, more than 2,700 high school and university students acquired new skills by participating in 25 workshops organized by EmprendeAhora alumni in 23 cities all over the country.
F E D E S A R R O L L O ’ S W O R K R E S U LT E D I N T H E F O L L OW I N G A C C O M P L I S H M E N T S :
Fedesarrollo’s policy papers on tax reform, labor markets, and infrastructure policy provided the foundation for discussion in advance of the three televised presidential debates.
Several debate topics have become priorities in the government of new President Juan Manuel Santos; since his inauguration, some of Fedesarrollo’s recommended reforms have become law in areas such as youth employment and natural resource management.
President Santos used Fedesarrollo’s recommendations to eliminate tax advantages from capital investment and the gradual elimination of Colombia’s financial transaction tax. This represents an important step in the constructive dialogue between government and nongovernmental policy organizations.
Students in the EmprendeAhora entrepreneurship training program participate in a class exercise.
M I D D L E E A S T & N O RT H
S T R AT E G I C OV E RV I EW CIPE’s programs in 2010 in the Middle East and North Africa (MENA) region effectively advanced key
In 2011, CIPE will continue to broaden and deepen the space for democratic and market
priorities to support the expansion of democratic governance: launching anti-corruption initiatives
reform in the Middle East and North Africa region through initiatives to fight corruption,
in Lebanon, Yemen, and Egypt; advancing corporate governance and corporate citizenship in Yemen,
promote corporate citizenship, strengthen corporate governance, and expand opportunities for
Bahrain, Tunisia, Algeria, and Lebanon; strengthening civic and entrepreneurial culture; and expanding
civic and economic participation, particularly among women and youth.
access to information through online and print publications. CIPE achieved notable accomplishments including production of an anti-corruption film in Yemen that is already being used as an educational tool in passport and civil registration agencies, establishment of the multi-stakeholder Lebanese AntiBribery Network that positions the business community as part of the solution in fighting corruption, and issuance of the Guidelines for Corporate Governance in Yemen and the Code of Corporate Governance in the Kingdom of Bahrain. In Tunisia, the CIPE-supported Center for Corporate Governance used its guidelines of corporate governance to train boards of directors and other stakeholders in governance principles.
2010 PARTNERS AND PROJECTS Regional Advancing Democratic Reforms by Enhancing Online Outreach Advancing Democratic Reforms by Improving Access to Information Building the Case for Corporate Governance Fostering Cultures of Good Governance in Bahrain, Tunisia, and Yemen Improving Access to Information to Advance Reforms Afghanistan Increasing Institutional Capacity and Access to Information Pakistan-Afghanistan Chamber of Commerce, Stakeholder Workshop Algeria Empowering Grassroots Private Sector Associations
Strengthening the Voice of Business Cercle d’Action et de Réflexion autour de l’Entreprise Promoting Good Governance Practices in Algerian Businesses Egypt Combating Corruption and Promoting Transparency Democratic Governance and Responsible Citizenship Empowering Egyptian Citizens to Engage in Public Policy and Fight Corruption Egyptian Junior Business Association Upgrading the National Business Agenda Federation of Economic Development Associations
Empowering Small Business to Participate in Policy Reform Iraq Building Capacity of Provincial Investment Commissions in Iraq Building Constituencies for Reform Jordan Al Quds Center for Political Studies Engagement of Political Parties in Economic Reform Young Entrepreneurs Association Advocacy for Small and Medium-sized Enterprise Policy Reform Public Advocacy Lebanon Development of People and Nature Association Expanding Entrepreneurship Education to the National Level
Lebanese Transparency Association Building Capacity for Corporate Governance Implementation Building Capacity to Prevent Corruption Morocco Empowering Grassroots Private Sector Organizations Palestinian Territories Business Women Forum Advancing Advocacy Capacity for Palestinian Businesswomen Building Advocacy Capacity for Palestinian Women Entrepreneurs Center for Private Sector Development Establishing Governance Codes and Standards for the Private Sector Expanding Corporate Governance Culture throughout the Palestinian Private Sector
Israeli-Palestinian Business Forum Advocacy Capacity for Palestinian Commercial Code Reform Tunisia L’Institut Arabe des Chefs d’Entreprises Reinforcing Good Governance in the Private Sector Reinforcing Good Governance in Limited Liability Companies Turkey Corporate Governance Association of Turkey Establishing Governance Guidelines for Business
Expanding Awareness of Corporate Governance Yemen Changing Perceptions on Corruption Democracy School Empowering Youth to Combat Corruption Human Rights Training and Information Center Combating Corruption Media Women Forum Improving Access to Information and Analysis on Reform Political Development Forum Economic Platform Building
A F G H A N I S TA N
C O M B AT I N G C O R R U P T I O N A N D I M P ROV I N G T R A N S PA R E N C Y
S U P P O RT I N G R E F O R M E F F O RTS AC RO S S T H E S PE C T RU M CIPE is working in Afghanistan to build a thriving entrepreneurial culture and encourage a broader debate on democratic and economic policy issues. CIPE works with a broad spectrum of stakeholders in Afghanistan – from high school students to members of parliament – to help build institutions that give citizens a voice in their country’s development. In 2011, CIPE and a coalition of Afghan business associations are partnering to develop a National Business Agenda that will take a grassroots approach in identifying major obstacles to commerce and economic growth as well as proposing specific policy recommendations for addressing those obstacles.
C I P E ’ S A F G H A N I S TA N W O R K I N C L U D E D T H E S E H I G H L I G H T S : •
Tashabos, CIPE’s high-school entrepreneurship program, expanded to include a 12th grade curriculum in 2010. In total, 33,000 students – more than half of which are girls – at 44 schools in Bamyan, Kabul, Nangahar, and Parwan provinces gained valuable entrepreneurship skills. In May 2010, CIPE released a survey of 738 Afghan businesses from six of the country’s largest cities – Herat, Jalalabad, Kabul, Kandahar, Khost, and Mazar-e-Sharif – which measured business leader opinions. The survey found that security, corruption, and lack of electricity were the top three concerns of the business communities in these six cities. In 2010, CIPE conducted more than 10 training sessions for members and senior legislative aides of the Afghan National Assembly and an additional 24 training programs on market economics and democratic governance for 258 members of Provincial Councils across Afghanistan. Topics included good democratic governance, market economics, combating corruption, budgeting and financial management, taxation, trade and globalization, and the informal economy.
Corruption remained at the forefront of public debate in 2010, with the support of CIPE’s ongoing anti-corruption program sponsored by the U.S. Agency for International Development. In January 2010, CIPE released survey findings of the Egyptian public’s experience with and opinion of corruption, based on a nationally-representative sample of the Egyptian population. In July 2010, CIPE released four papers produced under the guidance of CIPE’s anti-corruption advisory council composed of Egyption business leaders. These papers cover the implications of the government decentralization process on corruption, the importance of access to information, reform of the bureaucracy, and reform of the government procurement process, and include concrete recommendations for policy changes.
A N T I - C O R R U P T I O N W O R K I N E G Y P T R E S U LT E D I N T H E F O L L OW I N G A C C O M P L I S H M E N T S : •
The survey results and policy papers broke the barrier of publically discussing corruption in Egypt, or even acknowledging its existence.
The four policy papers were the first direct, public effort to address corruption in Egypt by an independent group of prominent Egyptian business associations, civil society organizations, multinational corporations, political parties, academic institutions, and media outlets.
The corruption survey was highlighted in several issues of Al Masry Al Youm, Egypt’s largest independent newspaper. Additionally, a widely-read article by Saad Hagrass, managing editor of the influential business daily Al Alam Al Youm, analyzed the survey results and created a wider space for public discussion about corruption issues that continued in the media for nearly a month after the original article went to press.
In July 2010, CIPE and Al Masry Al Youm organized a four-day forum titled “Promoting Transparency and Combating Corruption in Egypt.” The forum gathered 50 participants representing leaders of business associations, writers, academics, and think tanks. Afghanistan Supreme Court Justice Mohammad Omar Babrakzai listens to participants at a corruption roundtable. He noted,“This roundtable is a major achievement; the Supreme Court of Afghanistan supports such initiatives and will stand behind the recommendations made today.”
In August 2010, CIPE’s anti-corruption conference in Kabul drew over 100 individuals from 21 provinces. This conference was the culmination of a series of roundtables. Participants issued a communiqué outlining a set of 16 policy recommendations and calling on the government to enact immediately a set of comprehensive anti-corruption laws.
MENA REGIONAL I M P R O V I N G C O R P O R AT E GOVERNANCE ACROSS THE REGION
A D V O C A C Y I M P A C T AT T H E L O C A L L E V E L In post-conflict environments, strong economies are crucial in supporting nascent democracies. As Iraq struggles to emerge from conflict and rebuild its economic system, effective reform-centered dialogue involving the private sector is critically important. Local policymakers and private sector representatives in Iraq are undertaking unprecedented economic reform advocacy efforts in Anbar, Basrah, and Najaf provinces and the Kurdish region. Business leaders from diverse industries and policymakers are using the CIPEsponsored regional and Provincial Business Agendas (PBAs) as a foundation for dialogue on major challenges and solutions to economic growth. The challenges and solutions that are part of the PBAs and the regional Kurdistan Business Agenda (KBA), were presented to local policymakers in early 2010. The agendas introduce a fundamental shift in perception and practice in Iraq, from a centralized approach where the national government decides and makes changes to local regulations to one where private sector representatives engage with the local government to create a more market-oriented legislative environment. These types of partnerships between the public and private sector have paved the way for developing the business environment in Iraq’s provinces at the local level.
A DVO C AC Y E F F O RTS I N I R AQ L E D TO T H E F O L L OW I N G C H A N G E S I N 2 0 1 0 : •
In Anbar Province, policymakers have pledged to change laws the private sector indentifies that hinder economic growth. At a CIPE sponsored event in October 2010, a Provincial Council representative implored the private sector to “tell us what needs to be changed [in the law] and we will change it. That is our job.” This attitude is new to the province and directly countered old sentiments that local policymakers cannot change laws without national approval.
In the Kurdish Region, electricity coverage rates have increased from 40 to 53 percent because of reductions in rates and increases in investment led by the private sector.
As a result of KBA recommendations, the Kurdistan government financed the region’s Agricultural Bank at $100 million in 2009. Farmers can access capital and land productivity has increased. Wheat production in 2010 increased from 180 kilos per dunum (a unit of land), to 240 kilos per dunum.
Advocating for government reform is one thing, accomplishing reform on the ground in each unique circumstance is another. Stimulating and encouraging the relevant public and private parties and organizations is the requisite bottoms up approach requiring study, care, and patience. Ira Millstein, Senior Associate Dean for Corporate Governance Yale School of Management
C O R P O R AT E G O V E R N A N C E E F F O R T S I N 2 0 1 0 R E S U LT E D I N T H E F O L L O W I N G : •
In Basrah province, the Basrah Provincial Investment Commission has revisited their internal structure in response to private sector grievances that their response time to potential investors is not thorough. •
In 2010, CIPE has emphasized corporate governance as a focal point for the business community in the Middle East and North Africa region, not only to advance competitiveness by demonstrating accountability, but also to help build democratic institutions by participating in policy debate and reform. CIPE and its local partners in Bahrain, Yemen, and Tunisia have helped bring about concrete change to enhance the values of transparency, accountability, fairness, and responsibility — the core pillars of corporate governance and democratic participation.
In Yemen, CIPE and the Yemeni Businessmen Club created a task force with representatives from the business community, government, the media, and academia to strengthen corporate governance in the country – an unprecedented form of public-private cooperation in Yemen. With support from CIPE and utilizing expertise from other CIPE partners in the region, the task force created the first-ever Guidelines for Corporate Governance that were launched in March 2010. The Guidelines are already being used as a model for several family-owned companies in their efforts to address family governance and succession issues and business owners have requested assistance from task force members to help them draft company-specific guidelines. In Bahrain, CIPE played a key role in building momentum for finalizing and launching the
Code of Corporate Governance in the Kingdom of Bahrain with the National Steering Committee on Corporate Governance in March 2010. The code is motivating companies to improve their governance practices in order to comply with new requirements that will enhance disclosure and democracy. •
In Tunisia, CIPE and the Institut Arabe des Chefs d’Entreprises advanced democratic values by utilizing the CIPE-supported Tunisian Center for Corporate Governance to train boards of directors and other stakeholders in governance principles. The training workshops are based on the Guidelines for Corporate Governance Best Practices, developed by CIPE and IACE in 2008, which encourages a business environment based on greater transparency and accountability.
GLOBAL PROGRAMS S T R AT E G I C OV E RV I EW CIPE’s Global and Knowledge Management programs are designed to develop cross-cutting themes and projects that provide new insights, capture lessons learned from CIPE’s work, share information across regional departments and among CIPE partners, and develop new areas of expertise to shape worldwide debates on the interdependence of democracy and market reform. Global and Knowledge Management programs serve as a crucial resource for CIPE partners and staff while gathering and disseminating valuable institutional knowledge. Global programs and resources bolster CIPE’s overall activities while expanding international outreach and understanding on reform issues. These programs focus on a variety of areas, including anti-corruption, corporate governance, business association development, access to information,
E X PA N D I N G O P P O RT U N I T I E S F O R YOUTH AROUND THE GLOBE In many countries, youth constitute the majority of the population yet remain excluded from full participation in the political and economic spheres for a number of reasons: lack of employment, lack of representation in government structures, cultural and legal barriers, and a lack of capacity. CIPE’s programs in 2010 sought to engage youth in the economic, political, and social fabric of their countries, providing them with opportunities to voice their views on reform, expanding educational opportunities, engaging them in civil society organizations, and creating jobs.
women’s empowerment, and youth engagement. In 2010, CIPE’s Global programs focused on promoting transparency, disseminating information, and highlighting the important role of youth in democratic reform. In 2011, through its Global programs CIPE will place a special focus on women’s empowerment, developing new programs with women’s organizations on reducing barriers to participation in economic, political, and civic spheres.
2010 PROJECTS AND PARTICIPANTS Partners:
Projects: A Model Course on Economic Journalism Advancing the Role of Women in Politics, Economics, and Civil Society CIPE 25-Year Evaluation Engaging Young Leaders in Democracy Forum on Economic Freedom Improving the Quality of Democracy and Economic Growth
Strengthening Property Market Institutions for Small Businesses Supporting Women’s Organizations Through Responsible Corporate Citizenship
The Association for Foreign Investment and Cooperation Institute of Economic Affairs Institute for Solidarity in Asia
Supporting Young Leaders
University Course on International Development
World Chambers Congress 2009
Social Accountability International
Proética and Transparency Transparency International - USA
Political Dynamics of Economic Reform
Promoting Transparency in Public Procurement
Unirule Institute of Economics
CIPE’S YOUTH PROGRAMS IN 2010 INCLUDE THESE HIGHLIGHTS: •
CIPE’s ChamberL.I.N.K.S. (Leaders, Innovators, and Knowledge Sharing) program provides an opportunity for talented young professionals from chambers of commerce and business associations to gain valuable leadership skills by engaging with staff and members of host chambers in the United States.
• CIPE co-authored a new report on global corporate citizenship that highlights how good corporate citizenship can be an integral part of business strategy and operations and help improve the business climate in countries around the world. •
During November and December 2010, six young professionals traveled from Bangladesh, Brazil, Russia, Sierra Leone, Sri Lanka, and Tanzania to shadow senior staff members at local chambers in Troy, MI; Denver, CO; Cheyenne, WY; Indianapolis, IN; and Fort Mitchell, KY. These young professionals are able to bring home innovative ideas and techniques to help their chambers increase their roles as advocates for the private sector.
Seeking to expand educational opportunities, CIPE implemented a virtual course on international development for more than 100 students from 43 countries around the world through the Development Institute platform. The course provides opportunities for students to learn more about democracies, markets, civil society, and key development themes such as entrepreneurship, anti-corruption, and governance.
United Nations Global Compact World Chambers Federation
F I N A N C I A L D ATA
K N OW L E D G E MANAGEMENT S H A R I N G L E S S O N S O N W H AT W O R K S The knowledge management initiative shares lessons, strategies, and case studies among CIPE’s partner network and a diverse range of governance reform leaders. In October 2010, CIPE released Strategies for Policy Reform, Volume 2: Engaging Entrepreneurs in Democratic Governance. This collection of 15 new case studies reveals how local reformers, in partnership with CIPE, have transformed their countries to enhance democratic governance and the business climate. Strategies for Policy Reform, Volume 2 was distributed to more than 20,000 contacts globally. It has been shared by leading development and policy organizations such as the Aspen Institute, the Heritage Foundation, and the U.S. Agency for International Development, as well as the CIPE partner network. CIPE further developed resources that capture lessons in think tank development and advocacy, as well as a toolkit on public-private dialogue.
This volume distills from CIPE’s experience key practical lessons on how to implement reform on the ground, and will be invaluable to development practitioners everywhere.
Francis Fukuyama, Olivier Nomellini Senior Fellow at the Freeman Spogli Institute for International Studies, Stanford University
REGIONAL DISTRIBUTION OF FUNDS
• Since its publication in October 2010, Strategies for Policy Reform, Volume 2 has been viewed more than 5,100 times on the CIPE website. • Recent uses of Strategies for Policy Reform, Volume 1 include preparation for an advocacy campaign by the Kurdistan Economic Development Organization in Iraq, and development of a new private sector policy by the Millennium Challenge Corporation.
FUNDING SOURCES CIPE receives funds from the National Endowment for Democracy (NED), the U.S. Agency for International Development (USAID), and the U.S. Department of State to develop, implement, and evaluate programs in partnership with local organizations, think tanks, and business organizations. CIPE provides management assistance, practical experience, and financial support to these types of organizations to strengthen their expertise while accomplishing key development goals. CIPE’s staff of regional and technical experts provides ongoing guidance and technical assistance. CIPE gratefully acknowledges support from the Ewing Marion Kauffman Foundation and the Intel Corporation. 35
F I N A N C I A L D ATA M ATC H I N G F U N D S F O R N E D PA RT N E R S H I P G R A N TS
C I P E S TA F F
Nearly all partnership projects funded through CIPE include matching funds to facilitate the program’s implementation. This allows CIPE to leverage the funds provided by the National Endowment for Democracy (NED) with funds from partner organizations to maximize efforts to strengthen democracy and market-driven reform.
THOMAS J. DONOHUE, President
CIPE’s grants to partners are used to advance policy advocacy, business services, educational programs, and other development goals. Most grants include communication and advocacy components to build policymakers’ support for reform. Grants range from full-scale programs with national business associations and think tanks to integrated small grants that reach grassroots organizations throughout a county.
MYRON A. BRILLIANT, Vice President JOHN D. SULLIVAN, PH.D., Executive Director STEVEN B. ROGERS, Deputy Director, Operations
L AT I N A M E R I C A & THE CARIBBEAN
John Zemko, Regional Director Martin Friedl, Program Officer Stephanie Buck, Program Assistant
JEAN ROGERS, Deputy Director, Programs
Abdulwahab Alkebsi, Regional Director Lars Benson, Senior Program Officer Kelly Spence, Program Officer Julie Mancuso, Assistant Program Officer Erica Poff, Program Assistant
For a complete list of partners and projects, please visit our website at www.cipe.org.
John Callebaut, Regional Director John Morrell, Program Officer Catherine Tai, Assistant Program Officer
CENTRAL & EASTERN EUROPE, EURASIA Andrew Wilson, Regional Director Elena Suhir, Program Officer Natalia Otel Belan, Program Officer Frank Brown, Program Officer Ryan Foster, Assistant Program Officer Daniel Waggoner, Program Assistant Joanna Swirszcz, Program Assistant
Regional Office in Romania
Camelia Bulat, Program Director Carmen Stanila, Deputy Director Paula Anastasiade, Program Assistant
Alexander Raevsky, Deputy Director Natalia Titova, Program Officer Natalia Dymova, Activity Manager
MIDDLE EAST & N O RT H A F R I C A
Abdulwahab Alkebsi, Regional Director Gregory Simpson, Senior Program Officer Danya Greenfield, Program Officer Maura O’Brien-Ali, Program Officer Babak Yektafar, Program Officer Amy Thornberry, Program Officer Pamela O. Beecroft, Program Officer Ahmed Gutan, Program Coordinator Jonathan Apikian, Assistant Program Officer Brenton Ruth, Assistant Program Officer Ali Ayadi, Program Assistant Marie Principe, Program Assistant Phillip Briggs, Program Assistant Dorothy Smith, Program Assistant Dina Abi-Rached, Program Assistant
Randa Al-Zoghbi, Program Director Maha Hashem, Senior Program Coordinator Tarek Yousef, Communication and Information Officer Suzan Hashem, Program Officer Hazem Samy, Communication and Publication Specialist Seif El Khawanky, Junior Program Officer Ahmed Abol Azm, Finance Officer Farah Ismail, Program Assistant
Iraq Office Muna Zalzala, Country Program Manager
USE OF FUNDS
as percentage of 2010 cash flow ($20.1 million)
as percentage of 2010 program costs ($16.1 million)
Nataliya Balandina, Head of Representative Office Dmytro Naydin, Program Officer
Andrew Wilson, Regional Director Marc Schleifer, Program Officer Tim Wallace, Assistant Program Officer
K N OW L E D G E MANAGEMENT
Kim Bettcher, Ph.D., Knowledge Management Officer Anna Weber, Research Assistant
Mohammed Nasib, Country Director Mohammad Naim, Program Director Lailuma Social, Program Manager Edris Telyar, Finance Manager Ahmad Masoud, Communications Officer Mohammad Ibrahim Hassan, Program Officer Matiullah Murad, Trainer Roya Refaiy, Administrative Assistant
PROGRAM C O O R D I N AT I O N U N I T
Gregg Willhauck, Director
Moin Fudda, Country Director Hammad Siddiqui, Senior Program Manager Huzaifa Shabbir Hussain, Assistant Program Manager Mohammad Yasir, Accounts & Administration Officer Emad Sohail, Program Coordinator
Oksana Yoon, Program Officer Michael Hendrix, Program Assistant
CONGRESSIONAL & G O V E R N M E N T R E L AT I O N S GRANTS
Tabitha Wilson Forde, Grants Manager Shaza Elmahdi, Grants Assistant
E VA L UAT I O N
Joel Scanlon, Policy Studies Officer
GLOBAL PROGRAMS Aleksandr Shkolnikov, Ph.D., Director for Policy Reform Anna Nadgrodkiewicz, Program Officer James Liddell, Program Officer Jorge Godoy, Program Officer Oscar Abello, Program Coordinator Lauren Citrome, Program Assistant
C O M M U N I C AT I O N S
Caroline L. Scullin, Communications Director Julia Kindle, Publications Manager Sarah Gerrity, Editorial/Communications Assistant
Mark J. Schultz, Operations Manager Lascelles Haylett, Finance Manager Abdelaziz Ali, Finance Officer Zoya Ionova, Finance Officer Claris Tetu-Atagwe, Finance Assistant
HUMAN RESOURCES Tamara Noel, Human Resources Manager
A D M I N I S T R AT I O N
Syldeline D. Bunting-Graden, Executive Assistant
Center for International Private Enterprise 1155 15th Street NW, Suite 700 | Washington, DC 20005 www.cipe.org | firstname.lastname@example.org