Asia

Center for International Private Enterprise

1155 15th Street NW, Suite 700
Washington, DC 20005
ph: (202) 721-9200
fax: (202) 721-9250
cipe@cipe.org

2009 ASIA PARTNERS AND PROJECTS

CHINA

Encouraging the Development of an Active Civil Society

Encouraging Free and Open Dialogue on Policy Reform

Improving Public Governance at the Local Level

BANGLADESH

Bangladesh Women Chamber of Commerce and Industry
Promoting Women Entrepreneurship through Advocacy

BURMA

Educating Burmese Entrepreneurs and Civil Society on Democracy and Market Reforms

INDONESIA

Strengthening business Association Advocacy

Indonesia Business Links
Managing Ethical Dilemmas and Reducing Corruption
Promoting Business Ethics and Reducing Corruption

Indonesian Institute of Corporate Directors
Improving Corporate Governance

MONGOLIA

Mongolian National Chamber of Commerce and Industry
Strengthening Business Advocacy

NEPAL

Advocacy and Associations

Nepal Press Institute
Developing Economic Reporting Skills in Rural Journalists

Samriddhi, the Prosperity Foundation
Youth Empowerment for Entrepreneurship and Economic Freedom
Youth Empowerment through Entrepreneurship

SRI LANKA

Pathfinder Foundation
Legislative Advisory Service

PAKISTAN

Agreement for Holding Corporate Governance Workshops

Improving Corporate Governance in Family-Owned Firms

Informing the Democratic Dialogue

Promoting Democratic Values in the Business Community by Strengthening Associations

PHILIPPINES

Strengthening Business Association Advocacy

Institute for Corporate Directors
Improving Corporate Governance in Philippine Firms

Institute for Solidarity in Asia
Improving Public Governance at the Local Level

VietNam

Business Association Development

Regional

Strengthening Corporate Governance in Asia

A Regional Conference on Sustainable Democracy

Strategic Overview

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In 2009, CIPE faced a broad variety of challenges in Asia, with some countries showing encouraging signs of democratic consolidation and others demonstrating the fragility of their democratic institutions. One of CIPE’s key efforts was a program with local partners in China to provide a safe space for public discussion on democratic and economic policy reform. Additionally, CIPE Pakistan partnered with a wide variety of chambers of commerce, business associations, and civil society groups to strengthen advocacy skills through workshops and capacity building. CIPE promoted awareness of issues related to corruption and public governance in Indonesia and the Philippines. In Bangladesh, Burma, Mongolia, Nepal, and Sri Lanka, CIPE focused on strengthening the ability of business and civil sector groups to make their voices heard in the policymaking process through effective advocacy strategies.

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More than 150 women business leaders attended the “Women Leadership Conference” in Lahore, Pakistan, sharing experiences on their leadership roles as democratic activists in civil society.

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PAKISTAN | LEADING PRIVATE SECTOR REFORM

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Sheherbano Burki of Nur Concepts (top) leads a session on characteristics of leadership at the “Women’s Leadership Conference.” Another participant reads the Pakistan activities report, which documents CIPE Pakistan’s work with business associations, women entrepreneurs, youth, economic journalists, and corporate directors.

CIPE Pakistan’s work in 2009 focused on strengthening chambers and associations, emphasizing the importance of corporate governance, and developing a corps of reliable and informed economic and business journalists. Through a growing network of partners and programs, CIPE Pakistan has been building local capacity and supporting efforts to bring the government and the business community together in working relationships. By helping the business community improve institutional operations and advocate for legal reforms, CIPE Pakistan has helped to create a more competitive environment for chambers of commerce and business associations. In 2009, CIPE Pakistan hosted more than 40 events on association development, corporate governance, economic journalism, and women’s economic participation.

CIPE Pakistan’s work to augment grassroots-driven reform efforts brought about these accomplishments:

  • A key tax exemption for venture capital firms that fund information technology (IT) businesses was extended an additional six years – through 2014. This exemption is expected to incentivize a total of $2.8 billion in financing for the IT sector between 2008 and 2014.
  • Regulatory changes allowed for the registration of 11 new venture capital and private equity companies, five of which are foreign. Capital investment through private equity firms is projected to increase more than $2 billion by the end of 2011, even in the face of the global recession.
  • CIPE’s previous participation in reforming the Trade Organisations Ordinance led to the first opportunity for women in Pakistan to form independent chambers of commerce. Three new women’s chambers of commerce officially registered in 2009 in addition to the two that registered in 2008.
  • The Islamabad Chamber of Commerce and Industry members altered its board composition to require that 25 percent of elected board members are under the age of 30. The move towards younger leadership reflects CIPE Pakistan’s efforts to highlight the importance of engaging young leaders for future growth.

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PHILIPPINES | IMPROVING PUBLIC GOVERNANCE AT THE LOCAL LEVEL

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International organizations often note that the Philippines suffer from some of the worst corrupt practices in the world. Corruption at the local government level is especially disruptive to smaller firms and community groups, even though it may attract fewer headlines than national government scandals. The Institute for Solidarity in Asia’s (ISA) performance governance system (PGS) is an effective transparency and accountability tool for more than 40 local governments across the Philippines. When a city adopts the system, officials work through broad-based community consultation to design specific public policy goals, an action plan to accomplish them, and performance metrics by which to measure progress. As a sign of improved democratic participation, community groups and business associations are now an established part of the local policymaking process. This, in turn, strengthens the incentives of public officials to improve transparency, foster economic growth, and improve the quality and reliability of public services. In 2009, CIPE supported ISA’s work to implement the PGS in municipal-level governments and to expand the system to national public agencies.

ISA’s efforts to implement the PGS resulted in these changes:

  • For the first time, seven national public agencies enrolled in the PGS and three are ready to begin.
  • The implementation of the PGS in the city of San Fernando resulted in:
    • With the city government as a more viable business partner, the total value of public projects funded through public-private partnerships has increased from 19 million Philippine pesos (PhP) to nearly 150 million PhP. This increase boosted the city’s locally generated revenue and contributed to the doubling of city spending on elementary education.
    • The length of time required to register a business fell from two weeks in 2005 to two hours in 2009.
  • In rural Calbayog, property tax collection rose from the city’s historical average of 10 percent of total property value to nearly 70 percent in 2009.
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Ambassador Caesar Bautista (left), former Philippine Ambassador to the United Kingdom and long-time ISA fellow, welcomes private sector leaders as new members of the ISA Society of Fellows.

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BANGLADESH | EMPOWERING WOMEN ENTREPRENEURS

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BWCCI President Selima Ahmad (left) presents the mayor of Rajshahi, Bangladesh with a copy of the WNBA.

Women entrepreneurs in Bangladesh suffer from many barriers to entry when starting a business: cultural and social taboos, regulatory obstacles, and a lack of institutional capacity to advocate effectively for change. Without a voice in the democratic process, they are often excluded from reform efforts. In 2009, the Bangladesh Women Chamber of Commerce and Industry (BWCCI) grew as a strong advocate for women entrepreneurs – membership increased more than 17 percent, adding 300 members for a total of 2,000. BWCCI also worked to give women across the country a voice by launching the Women’s National Business Agenda (WNBA) and advocating for the specific policy priorities it identifies. The WNBA, developed by a BWCCI-led coalition, focuses specifically on social, capacity- based, and fiscal barriers to women entering the marketplace. Altogether, the WNBA offers more than 20 specific suggestions on democratic and economic reforms that will create a women-friendly business environment in Bangladesh.

BWCCI’s efforts to affect policy change at both the local and national level resulted in the following:

  • The first-ever Women’s National Business Agenda in Bangladesh was launched, offering recommendations to improve the operating environment for women entrepreneurs.
  • Bangladesh President Zillur Rahman and Minister of Industry Dilip Barua committed to establishing an economic zone with regulatory incentives for business development, modernizing the Bangladesh Small and Cottage Industries Corporation product design education center, and founding a special bank to provide loans at a 2 percent interest rate for women-owned small and medium-sized enterprises – all to reduce the barriers to women entering the market.
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BWCCI members from Dhaka and around Bangladesh work together to set the agenda for an upcoming meeting of the WNBA coalition.

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NEPAL | SUPPORTING TOMORROW’S LEADERS

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The future success of economic and democratic freedom in Nepal depends on a strong and vibrant youth voice for reform and active participation from young people in the private sector. Samriddhi, The Prosperity Foundation is helping university-aged students develop their knowledge of democratic and economic reform. Through five workshops for 120 young people in 2009, Samriddhi introduced concepts of economic freedom and free market principles, advocacy, and civic leadership. The workshops, or “Arthalayas,” also helped the participants understand the path toward creating and running their own businesses. Students heard from local entrepreneurs and business leaders and simulated running their own businesses. Samriddhi’s work to educate young people about market economies, efficient governance, transparency, and running a business is helping them discover and define the roles that they can play to further economic and democratic growth in Nepal.

Samriddhi’s work with youth in Nepal has resulted in a number of accomplishments:

  • Pre- and post-workshop assessments of all participants showed a 35 percent increase in knowledge and a 13 percent positive change of opinion about market economies, advocacy, and entrepreneurship after the Arthalayas.
  • Based on his new-found knowledge and skills, a graduate of the first Arthalaya and a sub-editor for the business magazine The Boss successfully proposed a completely new focus for one upcoming issue of the magazine: entrepreneurship promotion.
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A student participant at an Arthalaya workshop. She and her peers practiced running their own businesses and shared ideas about market economic principles, entrepreneurship, and advocacy.

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Partner Spotlight
INDONESIA | INDONESIA BUSINESS LINKS

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FUTURE OF REFORM

In 2010, CIPE will continue to raise awareness of the effects of corruption and the necessity of public and corporate governance reforms in Indonesia, the Philippines, and Thailand. CIPE’s upcoming focus in Bangladesh, Mongolia, Nepal, Sri Lanka, and Vietnam will strengthen business and civil sector organizations’ capacity to advocate effectively in the policymaking process. Additional regional priorities will include opening political space in closed political systems; facilitating open and honest dialogue among citizens, firms and civil society groups; and encouraging broader economic participation from disempowered groups like women and youth.

Much of Indonesia’s post-independence history has been defined by large-scale corruption at the highest levels of government and collusion between political elites and industrial conglomerates. This reliance on fraud and unethical business practices has impeded democratic consolidation and sustainable economic growth. CIPE partner Indonesia Business Links (IBL) – a leading independent, non-partisan think tank – has been tackling some of the many problems associated with corruption in Indonesia by promoting awareness of corporate governance concepts and ethical business practices. To push back against the culture of corruption in Indonesia, IBL conducts increasingly popular training workshops on business ethics and management for companies in more than 15 cities across Indonesia.

Although the majority of IBL’s training efforts have been directed at small and medium-sized enterprises, 2009 was an important year of expansion to some of the largest corporations in the country. IBL held a series of workshops on business ethics and anti-corruption with the senior management of the largest state-owned energy company in Indonesia, Pertamina, as well as with the senior management of Pertamina’s network of suppliers and vendors. Participants learned about corporate social responsibility and business ethics, with a particular focus on procurement and facilitation payments. Pertamina has subsequently incorporated IBL’s training programs into its new corporate compliance program, “Pertamina Clean.” Other large companies, such as the water services company Palyja, have reached out to IBL to request training programs for their management and employers. By reducing the likelihood that businesses and citizens will rely on fraud and informal practices, IBL is contributing to the democratic consolidation underway in Indonesia.

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An interview and discussion on IBL’s radio program, Fighting Corruption is the Solution for the Country.

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© 2010
Center for International Private Enterprise

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. Since 1983, CIPE has worked with business leaders, policymakers, and journalists to build the civic institutions vital to a democratic society. CIPE’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, and the U.S. Department of State, including the Middle East Partnership Initiative and the U.S. Embassy in Iraq Office for Private Sector Development.

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Center for International Private Enterprise

2009 Annual Report