The countries of the Middle East and North Africa suffer from weak civil, political, and economic institutions. A culture of dependence on the state has led to tepid political opposition, fragmented civil society, and the lack of a culture of entrepreneurship. governance has been characterized by the rule of the powerful rather than by the rule of law, resulting in rampant corruption, a lack of transparency, and a dearth of information available to the public. Throughout 2009, CIPE engaged business associations, reformers inside and outside of the government, broadcast and print media, think tanks, and other reform-oriented non-governmental organizations. CIPE helped to launch the first corporate governance center and raised awareness about corporate governance issues in Tunisia. CIPE’s work in Egypt engaged economic journalists and brought attention to the plight of informal sector entrepreneurs and the widespread problem of corruption. In Afghanistan, CIPE worked with men and women members of parliament and educated high school students on economic principles.

Ghada Abdel Hafez, an investigative reporter at the Al Masry Al Youm newspaper, speaks at a CIPE Egypt conference on economic and investigative journalism.

close

In Tunisia, corporate governance has emerged as a way for business leaders to support the rule of law, lead efforts to combat corruption and bribery, and assist in creating a healthy and sustainable political and economic climate. For the past four years, CIPE has partnered with L’Institut Arabe des Chefs d’Entreprises (IACE) to develop private sector support for implementing corporate governance practices. IACE’s broad-based efforts have led to greater public awareness of good governance practices as well as more productive public-private dialogue to strengthen compliance mechanisms and advance institutional reform.

At the launch of the Tunisian Center for Corporate governance, participants listen to presentations by the governor of the Tunisian Central Bank Taoufik Baccar and CIPE board member John Stout.

close

Entrenched corruption in Egypt has had a long-term, corrosive effect on the economy and society. Working to raise awareness of corruption and its consequences, CIPE and its partners are engaged in a comprehensive program of survey research, training programs, and technical assistance. In 2009, CIPE worked with the Egyptian Junior Business Association, the Federation of Economic Development Associations, Ahram Center for Political and Strategic Studies (ACPSS), and Al Masry Al Youm newspaper to increase the quality of information and awareness about corruption and its negative impact, build the capacity of local organizations for anti-corruption reform, and encourage ethical business practices. These anti-corruption efforts are guided by an advisory council of over 30 prominent Egyptian experts from the above-listed organizations, as well as other business associations, civil society organizations, multi-national corporations, political parties, and media outlets. CIPE’s anti-corruption work is driven and guided by Egyptians, making it unique among anti-corruption programs, which are usually driven from the outside in.

CIPE Executive Director John D. Sullivan (left), Chairman of Al-Ahram Foundation Abdel Moneim Said (center), and Egypt Minister of State for Administrative Development Dr. Ahmed Darwish (right) speak at the release of CIPE’s small and medium-sized enterprise corruption survey in Cairo.

close

Palestinian Prime Minister Salam Fayyad speaks at the launch of the first corporate governance code in the Palestinian Territories.

The creation of the first-ever Palestinian corporate governance code – launched by the Palestinian National Governance Committee and the Palestinian Corporate Governance Technical Task Force – demonstrates effective cooperation between the public and private sectors. Developed by CIPE partner the Center for Private Sector Development (CPSD) and the Palestinian Capital Market Authority, the code helps to improve economic opportunities and facilitate a better investment climate. The code has also raised awareness across multiple sectors about the importance of good governance. The development of the code, and its harmonization with the corporate governance code for Palestinian banks, marked an unprecedented multi- stakeholder effort toward good governance standards. These types of partnerships, rooted firmly in local ownership, will help guide the transition towards modern public and private governance and pave the way for two long overdue objectives for the Palestinian Territories: stronger democratic institutions and a more favorable investment climate.

close

Dr. Sami Al Araji (far left), chairman of the National Investment Commission, and Tami Saab Mosheraf (second from left), deputy chairman of the Salah ad Din PIC, meet with commissioners from the Salah ad Din PIC at a workshop in Jordan, “Marketing Your Province in the Global Investment Arena.”

Iraq’s tenuous security situation, the lack of a transparent business environment, and the bureaucratic complexity of local and regional business development have stymied foreign investment and internal private sector growth. In late 2007 through 2008, the Iraqi Government established 18 Provincial Investment Commissions (PICs) for each of Iraq’s provinces to bring in much-needed capital and improve the local business environment in each province. Throughout 2009, CIPE worked with PIC commissioners from across Iraq to equip them with the necessary tools to attract and facilitate provincial-level investment. CIPE taught organizational management, business environment analysis, provincial investment strategy development, marketing, and investment management. With their new knowledge, PIC members developed sophisticated websites, new marketing products, and attended international conventions on investment in Iraq. In addition, these courses and skills demonstrated how PIC commissioners could achieve investment promotion while adhering to their newly defined legal responsibilities and roles in relation to the National Investment Commission. CIPE’s work with the PIC commissioners improved their ability to identify new investment opportunities and grant new licenses, sparking the growth of business and capital investment in their regions.

close

A small group discusses and trades ideas at a CIPE workshop for business association trainers.

To address some of Afghanistan’s most crucial development challenges, CIPE is working to build a thriving entrepreneurial culture and encourage a broader debate on democratic and economic policy issues. In 2009, CIPE Afghanistan worked with legislators, business associations, and high school students and teachers to promote democratic and free market reforms. Through seminars on governance and economics for both men and women parliamentarians, CIPE worked to increase Afghan lawmakers’ capacity to engage in the legislative process. CIPE also worked with business associations to provide membership support assistance and workshops on advocacy, public relations, finance, budgeting, and staff development. CIPE continued to build its successful Tashabos high school entrepreneurship course, teaching basic market, business, and entrepreneurship principles to both girls and boys. CIPE’s broad stakeholder engagement in Afghanistan has helped to build the capacity for economic and political participation at many levels of society.

Students eagerly participate in a lesson on entrepreneurship as part of the Tashabos program.

close

One of the few truly grassroots business associations in the Middle East and North Africa region, the Federation of Economic Development Associations (FEDA) effectively mobilizes its members and serves as their voice for policy reform. In 2009, FEDA built on its previous advocacy successes in eliminating outdated Ministry of Industry and Trade decrees unfavorable to small and medium-sized enterprises (SMEs) by securing the elimination of an additional 422 decrees. The repeal of these regulations has yielded tremendous cost savings for Egyptian SMEs and represents a success for grassroots participation in policymaking in Egypt, influencing what had traditionally been a closed-door process.

FEDA also worked to bring attention to the plight of informal street vendors through research, awareness-raising, and policy advocacy. FEDA is striving to reform legislation and bring street vendors into the formal economy, providing them full legal status and the ability to be registered, regulated, and taxed. Street vendors would also have access to social services and protection from abusive officials – as well as obtain financial services such as credit. If enacted, these efforts could protect and enfranchise up to 5 million vendors in Egypt.

Since its founding in 2001, FEDA has become a country-wide umbrella organization of over 100 local business associations and civic organizations, which together encompass a membership of 30,000 SMEs throughout Egypt. Unlike the country’s large-scale enterprises, these businesses have very different interests and are without the resources to articulate their needs. Through FEDA, these SMEs have found a voice.

FEDA Chairman Foaud Thabet (center) listens attentively at a FEDA conference on the informal economy and Egypt’s street vendors.

close