Democracy That Delivers Through Better Governance

Posted on the 25 August 2015 by Center For International Private Enterprise @CIPEglobal

Major global trends are changing the way we approach international assistance and policy reform. Private sector-led growth has produced enormous opportunities, even as market freedom and access to opportunity remain uneven. Political upheaval has raised hopes for democratic freedoms, yet freedom too often is undermined by poor governance.

Governance reforms must adjust to these shifting circumstances. As a rule, effective reforms tap the power of free markets and the strength of citizen engagement. Each country requires distinctive sets of solutions that reflect local capabilities and needs. These solutions take shape through policy coalitions forged by local partners. Often, they benefit from international experience in convening dialog and mobilizing support.

Strategies for Policy Reform illustrates CIPE’s approach to improving governance in cooperation with local entrepreneurial leaders. This international case collection shares program experiences and results achieved across CIPE’s four focus areas: Enterprise Ecosystems, Business Advocacy, Democratic Governance, and Anti-corruption & Ethics.

CIPE enterprise ecosystem programs improve the operating environment for business by building the institutions of a market economy, reducing barriers to doing business, and promoting an inclusive entrepreneurial culture that provides opportunities for all citizens.

In Bangladesh, CIPE partnered with the Bangladesh Women’s Chamber of Commerce and Industry (BWCCI) to expand economic opportunities for women and facilitate their involvement in the policymaking process. BWCCI developed a Women’s National Business Agenda with thirty recommendations to improve the  environment for women entrepreneurs. Achievements include increased landing to women-owned businesses, including collateral-free loans at a reduced interest rate.

The CIPE business advocacy programs empower business associations, chambers of commerce, and think tanks to advocate for economic reform and engage in policy dialog with the government.

For instance, CIPE has helped foster a better business environment in Nigeria through public-private dialog initiatives in seven states. CIPE’s work has built the capacity of coalitions of business and professional associations, which represent 130 business and trade associations and more than a million individual entrepreneurs.

Democratic governance promote better decision making and higher-quality regulatory solutions through open, participatory policy processes.

In Paraguay, CIPE partnered with the Development in Democracy Foundation to organize the first-ever televised presidential debates. The four leading candidates presented their policy agendas to the electorate. Over 3.4 million people tuned in to watch and 72 percent of viewers surveyed said they were hearing the candidates’ policy proposals for the first time.

Finally, CIPE anti-corruption and ethics programs improve integrity standards, advocate policies that limit opportunities for corruption, and design institutional reforms that level the playing field.

The Thai Institute of Directors (IOD), with guidance from CIPE, has built a coalition of Thailand’s largest businesses and most influential business associations united in their commitment to tackle the “supply side” of corruption. Coalition members sign the Collective Action Against Corruption Declaration and take tangible, measurable steps to proactively reduce corruption risks. IOD estimates that the coalition’s member companies now represent nearly 20 percent of the Thai economy and more than one million employees.

Strategies for Policy Reform: Case studies in achieving democracy that delivers through better governance offers a diverse set of approaches to engage policymakers, civil society and the private sector in tackling economic reform priorities and strengthening democratic governance. Read the full set of case studies here.

Teodora Mihaylova is a Research Coordinator at CIPE.