Since 1983, CIPE has worked with business leaders, policymakers, think tanks, entrepreneurs, and journalists to build the civic institutions vital to a democratic society. CIPE was founded on the idea that economic freedom and political freedom are inextricably intertwined. And, that functioning democracies require opportunities for the public to participate regularly in the policy process, not only during elections. They also require a private sector that is capable and willing to participate in the democratic policy process. And, possibly most important, governments must be transparent, accessible, and accountable to the governed.

Time and again, CIPE has been privileged to partner with organizations at the leading edge of democratic reform. CIPE has worked in all kinds of political and social environments – from post-Communist countries fashioning participatory democracies for the first time to Middle Eastern countries founding and empowering advocacy groups. CIPE’s partners affirm again and again the interdependence of a stable and vibrant market economy and a robust democracy.

CIPE has supported or conducted more than 1,100 programs in over 100 countries and the center section of this publication highlights some of CIPE’s invaluable partners from its more than two decades of global service. At CIPE’s 25th anniversary celebration on Capitol Hill in October, Peruvian economist Hernando de Soto, founder of CIPE’s first partner the Institute for Liberty and Democracy, received an award named for him in celebration of his extraordinary efforts toward economic freedom in Peru and throughout the world. The next day, CIPE’s “Democracy that Delivers” conference gathered nearly 300 development experts and economic thought leaders – like Larry Diamond, Ira Millstein, and Dr. Anne-Marie Slaughter – to extend and expand the discussion of the essential linkages between free markets and resilient democracies. CIPE partners from Kenya, the Philippines, and Pakistan brought their unique ground-level perspective to the event, and video of the entire program was streamed live to our partners in Egypt. Speeches and materials from the conference can be found at www.democracythatdelivers.com.

CIPE and its partners have been and remain committed to building free market institutions that provide opportunities for sustainable growth and development around the world. We are pleased to present this report on the work and accomplishments of CIPE and its partners in 2009, and we are grateful for the ongoing support of the National Endowment for Democracy, the United States Agency for International Development, the Middle East Partnership Initiative, the U.S. Embassy in Iraq’s Office for Private Sector Development, the U.S. Chamber of Commerce, and our many friends around the world.

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Throughout 2009, CIPE worked across the globe to support reformers fighting for democracy and market economies. This report highlights our partners, their success and achievements, and the exceptional impact of their work.

AFRICA

A new executive order in Liberia protects the rights of whistleblowers who disclose information about corruption.

ASIA

In Bangladesh, the first-ever Women’s National Business Agenda was launched, providing the government with specific recommendations to improve the operating environment for women entrepreneurs.

CENTRAL AND EASTERN EUROPE

A new law on domestic trade in Montenegro changed the requirements to obtain a business license and reduced the number of steps in the process from 15 to 1. This lowers barriers to doing business for 80 percent of Montenegrin companies.

EURASIA

In Russia, two new national anti-corruption laws establish a procedure that allows independent organizations to review draft laws, closing loopholes for corruption.

LATIN AMERICA AND THE CARIBBEAN

For the first time in Nicaragua, the government, private sector, and labor unions reached a consensus on a minimum wage increase. The modest nature of the increase will help save more than 20,000 jobs in the free trade sector, which generates the largest amount of formal employment in the country.

MIDDLE EAST AND NORTH AFRICA

Efforts to improve corporate governance across the Middle East and North Africa resulted in two unprecedented accomplishments: the development of a corporate governance code in the Palestinian Territories and the launch of the Center for Corporate Governance in Tunisia.

GLOBAL PROGRAMS

CIPE’s 2009 youth essay competition attracted ideas on entrepreneurship, education, and democratic policymaking from 650 young people in 106 countries including Belarus, Colombia, Eritrea, Pakistan, and Uzbekistan.

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CIPE’s unique approach to designing programs helps to advance its mission of strengthening democracy through private enterprise and market-oriented reform and to engage the private sector and civil society more broadly in revitalizing democratic governance. In each part of the world, CIPE’s programs focus on creating opportunities for private sector organizations to engage in policy advocacy and on increasing support for the principles of democratic market systems.

CIPE’s programs in 2009 approached governance reform from a variety of directions. Efforts to establish transparency and accountability were most evident in anti-corruption projects, such as in Egypt and Russia, or in corporate governance projects, as in the Philippines. Numerous projects established mechanisms for improved dialogue and input in policymaking, as seen in China, Kenya, Nicaragua, and Paraguay. Working to expand grassroots participation in the policy process, CIPE amplified the effectiveness of a small business federation in Egypt and chambers of commerce for women in Bangladesh and Pakistan.

Although they share a common set of objectives, these projects necessarily take a variety of forms as they continually innovate and adapt to local circumstances. CIPE recognizes that democratic development and effective market reforms must be locally driven. CIPE therefore builds local priorities and knowledge into its regional strategies and individual project designs. Typically, project concepts emerge from local partners who take the initiative in implementing projects while benefiting from CIPE’s shared breadth of international experience.

CIPE concentrates on institutional changes that create a supportive environment for democracy and markets and that have the potential to benefit a broad constituency. CIPE board and staff think strategically about how to match regional needs with opportunities for reform. They factor in the governance and business environment, the state of political and economic freedom, openings to catalyze institutional change, and the capabilities of the private sector. Before being implemented, each project idea is examined to ensure that it is consistent with CIPE’s organizational objectives, is a strategic priority for the region in question, and has the possibility to contribute to sustainable reform.

In 2009, the global economic crisis became a driving force behind new ways of looking at democratic reform. Although it has affected all countries around the world, the crisis has been particularly damaging in countries that relied on high commodity prices, short-term economic calculations, populist social policies, and shallow governance structures. The crisis brought to the forefront the issue of democratic resiliency and raised questions among many about the viability of free market democracies in comparison with authoritarian systems that perpetuated their own brand of capitalism. In this context, CIPE pressed for an intensified focus on the quality of institutions that underlie governance and growth.

Institutions of governance strongly condition a country’s prospects for both sustainable growth and high-quality democracy. In particular, democratic channels of feedback and accountability aid the flow of information from private sector constituencies to policymakers, thus promoting the development of true market systems. Accountability and open dialogue, democracies – rather than authoritarian regimes – are most likely to arrive at sustainable policies appropriate to local needs. This is the essence of democracy that delivers.

The projects featured in this report illustrate highlights of the overall program that demonstrate distinctive successes as well as CIPE’s long-term investment in the ability of the private sector to actively shape civil society, democratic dialogue, and policies for sustainable growth.

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DEMOCRATIC GOVERNANCE

CIPE works to create and strengthen institutions of accountability and increase public participation in reform.

COMBATING 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.

BUSINESS ASSOCIATION DEVELOPMENT

CIPE supports grassroots participation of private sector organizations by providing support and technical assistance.

CORPORATE GOVERNANCE

CIPE initiates and supports programs to educate private sector leaders and the public on fairness, accountability, responsibility, and transparency.

LEGAL AND REGULATORY REFORM

CIPE encourages the private sector to identify laws and regulations that hinder business activity and make reform recommendations.

ACCESS TO INFORMATION

CIPE works with local partners to achieve greater transparency in government and an unrestricted voice for reformers.

WOMEN AND YOUTH

CIPE supports women and youth through entrepreneurship and management programs.

INFORMAL SECTOR AND 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.

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