2013 CIPE Annual Report_0

2013Annual ReportThe Center for International Private Enterprise (CIPE) strengthens democracy around the globe through privateenterprise and market-oriented reform. CIPE is one of the four core institutes of the National Endowment forDemocracy 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. CIPE’s key program areasinclude anti-corruption, advocacy, business associations, corporate governance, democratic governance, access toinformation, the informal sector and property rights, and women and youth. CIPE programs are supported by theNational Endowment for Democracy, the U.S. Agency for International Development, the U.S. Department of State,the Middle East Partnership Initiative, and the British High Commission Islamabad.© 2014 Center for International Private EnterpriseCIPE Annual Report 2013 3

From the Chair and the PresidentWELCOME30 Years ofDemocratic & Economic ReformGregori LebedevCIPE ChairSenior AdvisorThe RobertsonFoundationThomas J. DonohueCIPE PresidentPresident and CEOU.S. Chamberof CommerceRecent events around the world — in theMiddle East, Ukraine, and Southeast Asia —have shown that the thirst for democraticgovernance and free and transparent marketsremains an irresistible force for change,intrinsically bound to the quest for a betterlife. But these events have also demonstratedthat bridging the gap between the desirefor democracy and open markets and theirrealization is not a simple matter. As our friendand colleague Ambassador Mike Samuelspoints out, “Democracy is more than justelections; it includes leadership selectionand decision-making, participation, andsustainable institutions.” Simply said, it’s abouta government’s honest relationship with itspeople which more often than not has provento be an elusive reality.This is the challenge that the Center forInternational Private Enterprise (CIPE) hasundertaken. For 30 years, CIPE’s purposehas been to help people around the worldrealize the promise of economic freedom anddemocratic participation. And through thisthree decade journey, it has gained a realisticand nuanced appreciation of how best toaccomplish this task, developing a series ofinitiatives and tools — many highlighted in thisreport — that have proven their effectivenessagain and again.The work that CIPE does is by no meansglamorous, and outcomes are rarely immediate,but its essentiality is apparent every day. Drawingon the insights of business leaders, policymakers,think tanks, entrepreneurs, and journalists,CIPE works to build the capacity of local civicinstitutions to fight corruption, advocate formore transparent laws, support open electionsand advance economic reforms. CIPE’s approachis flexible and opportunity-driven. For example,in Kenya and Cambodia, two countries whereadministrative resources are being decentralized,CIPE helps develop coalitions to provideoversight and policy recommendations for localgovernments. In more industrialized nationslike Thailand and the Philippines, it cooperateswith groups that successfully promote higherstandards of corporate and public governance.For our 30 th anniversary year, CIPE focused onthe pivotal role that entrepreneurs can play inleveraging economic and democratic change.Our international conference hosted in Chicago,Democracy that Delivers for Entrepreneurs,attracted participants from around the world tohear about lessons learned and best practices,and the institutions that are needed to build andsustain a productive, inclusive entrepreneurialenvironment.This focus on international entrepreneurship isjust the latest in CIPE’s efforts, extended over30 years, to find ever better ways to build freemarket and democratic institutions that provideopportunities for sustainable growth anddevelopment. We are grateful for the ongoingsupport we have received first and foremostfrom the National Endowment for Democracy,as well as from the U.S. Department of State,the U.S. Agency for International Development,the Middle East Partnership Initiative, theGovernment of the United Kingdom, JPMorganChase, the Small Business and EntrepreneurshipCouncil, the U.S. Chamber of Commerce, andmany others. Together we have already made adifference … and together, in big and small ways,we will continue to improve the lives of millionsof people around the world.4 CIPE Annual Report 2013

2013 Annual ReportTABLE OF CONTENTS30 Years ofDemocratic & Economic ReformIntroduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Africa. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Asia. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10Eurasia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Democracy that Delivers for Entrepreneurs:Strengthening the Environment for EntrepreneursAround the World . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Latin America and the Caribbean . . . . . . . . . . . . . . . . . . 18Middle East and North Africa . . . . . . . . . . . . . . . . . . . . . 20South Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23Global . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26CIPE Partners and Projects . . . . . . . . . . . . . . . . . . . . . 28CIPE Areas of Work . . . . . . . . . . . . . . . . . . . . . . . . . . 32Financial Data. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Staff List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 356 CIPE Annual Report 2013

2013 Annual ReportINTRODUCTIONAround the world, tens of millions of men and women striveevery day to improve their lives through private enterprise.Over time, their individual accomplishments can add up towholesale economic and political transformation. But inorder for these businesspeople to create change, they needmore than ideas and energy. They need a level playing field,fair and inclusive markets, and clear rules of the game. Thisis where the work of the Center for International PrivateEnterprise (CIPE) begins, partnering with the private sectorto help build the infrastructure of market economies andencourage democratic reform.AfricaAcross Africa, CIPE and its partners are committed tobuilding democracies that support vibrant economies. Withthe continent’s prosperity tied to political and economicfreedom, the private sector must participate in thepolicymaking process, enhance economic opportunities,combat corruption, and strengthen democratic governance.CIPE empowers citizens and business leaders to promotedemocratic and market-oriented reform.AsiaAsia presents unique challenges in building democraticsocieties because it features many different cultures, religions,languages, and political systems. In countries that havefree elections, CIPE focuses on improving governance andfighting corruption. In authoritarian countries, CIPE worksto help citizens and private organizations participate inpolicy discussions and encourages governments to be moretransparent and accountable.EurasiaThe countries of Eastern Europe and Eurasia range fromthose seeking a more democratic, market-oriented pathto those in which democracy is struggling to take root. Inthe former, CIPE is helping to institutionalize public-privatedialogue and sustain sound public and corporate governance.In the latter, CIPE is helping build broad-based coalitionsaround wedge issues, opening space for productive dialoguewith government, the media, and the public.Latin America and the CaribbeanIn Latin America, CIPE strives to strengthen democracy incountries where it is under threat by promoting privatesector engagement in the policymaking process andsustaining well-regarded think tanks who can articulateimportant policy issues. The result is enhanced civil societyparticipation in the decisions governments make that benefitall citizens of the region.Middle EastCIPE is uniquely positioned to support democratic transitionsin the Middle East and empower key stakeholders toembrace their role in policy advocacy and building inclusivemarket economies. Despite difficulties that some countrieshave encountered in establishing democracy, CIPE continuesto develop channels for policy debates, expand the networksof market-oriented reformers, and share international bestpractices on institutional reform.South AsiaIn South Asia, formal democratic structures stand in starkcontrast to deep institutional flaws that both underminedemocratic consolidation and slow economic growth. CIPE’spartners are at the forefront of an effort to strengthen thoseinstitutions — a process that is paying dividends by givinggreater voice to women in business, pushing governments tobe more transparent, and generating dialogue and advocacyfor reform.GlobalCIPE’s Global and Knowledge Management programsdevelop cutting-edge tools and approaches for buildingdemocracies that deliver. CIPE fosters dialogue onentrepreneurship ecosystems, business advocacy, democraticgovernance, and anti-corruption. By strengthening businessvoices in emerging markets and equipping a worldwidenetwork of business and civic organizations with bestpractices in policy dialogue and capacity building, CIPEGlobal and Knowledge Management bolsters political andeconomic freedom around the world.The projects and partners featured in the 2013 AnnualReport represent only a few of the many committed,dedicated individuals and organizations who work tirelesslyto nurture democracies that deliver real results for citizensand market economies.CIPE Annual Report 2013 7

AfricaFEATURED PROJECTSCIPE Nigeria CountryDirector OmowumiGbadamosi inspectscarved mortarproducts from NorthCentral Nigeria.This type of microenterpriseexemplifiesthe entrepreneurialefforts representedby CIPE-supportedcoalitions of businessand professionalassociations inNigeria.Nigeria: Association of Nigerian Women BusinessNetworkStrengthening Coalitions of Business and ProfessionalAssociationsSince 2008, CIPE has strengthened the advocacy capacity of nearly 140business and professional associations, chambers of commerce, andwomen’s civil society groups. In Nigeria’s North Central Zone as well asEnugu State in the Southeast, CIPE has supported efforts to form statebasedcoalitions to improve the environment for private sector growthand make public officials more accountable. These coalitions haveissued policy papers, met with government officials, and campaignedfor change.FThe groups partnered withNasarawa State University to train 48entrepreneurs to produce an enhancedform of this staple.Kenya: Institute of Economic AffairsPromoting Transparency andAccountability in County GovernmentBudgetsKenya is moving political power from thecentral government to its 47 counties. Inresponse, CIPE and the Institute of EconomicAffairs (IEA) have trained 22 non-profitorganizations to improve their understandingof the county budget process, their abilityto monitor actual expenditures, and theircapacity to advocate for reform. Local groupsin nine counties formulated specific budgetrecommendations and presented them togovernment officials.FThe coalition in Mombasa Countyorganized stakeholder meetings forcitizens to express their views on budgetpriorities for agriculture, fisheries,and land reform and provided theseFOn the recommendation of the Plateau Coalition of Businessand Professional Associations (PLACOBPA), Plateau State’sCommissioner for Police doubled the number of police patrollingdensely populated business areas. PLACOBPA members havereported a 20 percent reduction in robberies and are now able tokeep their stores open two hours later, as greater security easedthe need for curfews.In 2013, CIPE began to move its reform efforts to the national level,supporting the development of the Association of Nigerian WomenBusiness Network (ANWBN). ANWBN currently has 17 associationmembers and advocates for the increased participation of womenentrepreneurs in the policymaking process.FFThe Association of Nigeria Market Women and Men (ANMWM)and ANWBN joined together to improve the value andmarketability of garri (a popular form of cassava).The groups convinced the Nasarawa government to allocate landin 31 development areas for the new strain of garri. These newvarieties will provide farmers with increased income and jobs.Participant Erick Bosire from the HealthRights Advocacy Forum (HERAF) at theCIPE-IEA workshop on coalition advocacyheld in Kenya from June 24-27, 20138 CIPE Annual Report 2013

AfricaFEATURED PROJECTSFFFrecommendations to the newly formedcounty government.Recognizing IEA’s expertise, the UasinGishu County government invited thelocal coalition to prepare a budgetanalysis and to present its findings at aroundtable meeting.Representatives of 18 businessassociations and professionalorganizations in Nakuru and NyeriCounties met with county executivesand elected officials and presentedrecommendations on budget prioritiesthat emphasized road infrastructure andenergy supply.Countywide coalitions in the formerWestern Kenya Province helpedcreate and train six new communitydevelopment committees.Presidential candidates prepare for the first presidentialdebate in Ghana in 2008, from left to right: Nana Akufo-Addo,Dr. Paa Kwesi Nduom, Professor John Atta Mills (who won theelection), Dr. Edward Mahama.Adequate funding for county governmentshas been an issue. IEA held a well-attendedand widely reported public forum that calledattention to the impasse on funding betweenthe Senate and the National Assembly. IEAand civil society organizations also called for agovernment evaluation of the youth enterprisefund, leading to a final budget allocation of$70 million after a parliamentary review.CIPE at 30: GhanaPromoting Peaceful,TransparentElections – 2008National think tanks can play a critical rolein economic reform and political transition.Having analyzed country policies, theycan provide specific recommendationsto encourage entrepreneurship, increaseeconomic growth, and promote effectivedemocratic governance.CIPE frequently supports the efforts of suchorganizations to stimulate greater dialogue andparticipation in the democratic process. A casein point is CIPE’s work with longtime partnerthe Institute of Economic Affairs Ghana (IEA)during Ghana’s 2008 election cycle.IEA facilitated the creation of a Code of Conduct for Political Parties,which all parties ratified. In addition, CIPE worked with IEA to organizeworkshops for local, regional, and national officials of the four majorpolitical parties on the importance of free market economies in ademocratic society. The representatives developed guidelines forpolitical transitions and issued a joint communiqué recommendingactions to be taken to ensure a peaceful transition of power followingthe elections.CIPE and IEA also organized and televised eight national debatescovering the presidential, vice-presidential, and parliamentary elections.The significant political parties participated. More than 10 millioncitizens viewed the debates on television, which were translated bythe media to all major local languages. Because of this exposure,comparative analyses of each of the parties’ manifestoes and theirpolicy positions dominated public life. After the second and finalpresidential debate, all four major candidates publicly pledged to runnonviolent campaigns.IEA presented the six parliamentary debates as town hall meetings,offering the electorate an opportunity to engage the candidates onissues of local concern. IEA facilitated greater civil society participationby soliciting questions before the debate began from nearly 70 civilsociety organizations. This process ensured that content reflectedregional priorities.The elected president John Atta Mills recognized IEA’s work in his firstState of the Union address. He also referenced its work by calling forelectoral finance reform.CIPE Annual Report 2013 9

AsiaFEATURED PROJECTSFFFThe coalition has already begunmonitoring local governmentprocurement, documenting irregularitiesand engaging in public-private dialogue.Silaka is helping small businessesparticipate in local government tendersin an effort to increase competition andaccountability.Silaka is also laying the groundwork forfuture public-awareness campaigns onthe importance of reliable public servicesand accountable local government.Thailand: Thai Institute of DirectorsPrivate Sector Collective Action GainsMomentum in Fight Against CorruptionSilaka representative raises awareness of the SPSL project inthe village of Trapaignrussey Commune, Kampongsvay Districton October 23, 2013. Ninety-eight citizens, including 81 women,participated in the event.Cambodia: SilakaFighting Corruption in Local GovernmentWhile Cambodian political power has been increasingly centralizedin the Office of the Prime Minister, the delivery of public serviceshas been delegated to local officials, many of whom are nowelected. Unfortunately, most local governments possess only limitedadministrative capacity and are ill-equipped to operate in an openmanner. This situation presents a threat to democratic developmentin a country with no democratic legacy. If the increased powers forlocal elected officials result only in a dramatic expansion of corruption,democracy could be seen as a sham. To help reduce the potential forcorruption, CIPE has developed an innovative program with Silaka,a Cambodian non-governmental organization (NGO), to promotegreater transparency in local government finances, increased civicinvolvement in local procurement, and more effective good governanceand advocacy. In just one year, Silaka and CIPE have made tremendousstrides:FTogether they assembled a coalition of local NGOs, smallbusinesses, and village representatives from around the countryand led a series of training programs to empower this coalition tofunction as an anti-corruption watchdog.CIPE’s ongoing partnership with the ThaiInstitute of Directors (IOD) has helped thecountry make substantial progress in reducingprivate-sector causes of corruption. Corruptionwas the justification that the military gavewhen overthrowing the elected government in2006 and that the Supreme Court offered indisbanding an elected government two yearslater. Today, allegations of corruption are majorcontributors to political unrest.Using financial support and technicalexpertise from CIPE, the IOD has recruiteda growing number of companies to jointhe Coalition Against Corruption. Coalitionmembers commit to preventing bribery bytheir employees, managers, and suppliers.The IOD offers advanced training programsto help corporate executives and complianceofficers develop effective corruption mitigationprograms and in 2013 launched a certificationprocess to verify whether member companiesare observing their commitments. This process— involving multistage evaluations as well assanctions — is as robust and comprehensive asany private sector anti-corruption effort in theworld:FThe coalition’s membership nowrepresents more than 50 percent of themarket capitalization of the entire StockExchange of Thailand.10 CIPE Annual Report 2013

AsiaFEATURED PROJECTSCIPE at 30: The PhilippinesStrengthening Governancein the PhilippinesIn The Spirit of Democracy, renowned democracy expert Larry Diamondexplains that “democracy means more than occasional elections,[rather] it provides an ongoing means for achieving accountabilityand responsiveness, and for making political leadership more broadlyrepresentative.” This is precisely what CIPE has achieved in thePhilippines through its ongoing work with Dr. Jesus P. Estanislao, formerPhilippine Secretary of Finance and globally recognized champion ofdemocratic governance. Estanislao leads the Institute for CorporateDirectors (ICD), which works to improve governance in the Philippineprivate sector, as well as the Institute for Solidarity in Asia (ISA), which isdedicated to public governance reform.ISA Chairman and Former Secretary of Financefor the Philippines Dr. Jesus P. Estanislaodescribes his experience with democratictransition in the Philippines at CIPE’s inauguralDemocracy that Delivers conference held inWashington, D.C. on October 27, 2009.FFThe IOD has recruited multinationalcompanies from a dozen differentcountries with operations in Thailand asmembers of the coalition.A 2013 survey of the Thai businesscommunity found that the percentageof companies that believe corruption“can be addressed in the near future”doubled since the 2010 launch of CIPE’spartnership with IOD. The percentagethat “definitely” want to be part of theinitiative against corruption quadrupledto 40 percent.CIPE’s long-term partnership with ICD has produced significant anddemonstrable improvements in corporate governance. The abilityof Philippine banks to weather financial crises and the increasinglyfavorable investment conditions in the country are tangible signs of thisimproved climate. The ICD’s annual Corporate Governance Scorecardreflects these positive developments. This index ranks companies onthe quality of their corporate governance and lists the hundreds ofcorporate directors who have attended professional training programsduring the year.CIPE’s work with ISA on public governance is also having atransformative impact. Initially ISA focused on local government,helping cities across the county overhaul their planning, budgeting, andadministrative processes to make them more transparent, participatory,and effective. ISA helped cities open their strategic planning process tolocal citizens and eliminate bureaucratic “stovepipes” that hamperedtheir implementation. These successes translated into remarkableimprovements in local services and standard of living. Followingthis success, ISA is now applying its reform methodology to centralgovernment agencies.CIPE Annual Report 2013 11

EurasiaFEATURED PROJECTSPresident of the Chamber of Commerce and Industry of theRepublic of Tatarstan Shamil Ageev, (left) and president of theAmerican Chamber of Commerce in Russia Andrew Somers,(middle) present a certificate to businessman Oleg GrigorevichSivakov, who signed on to the Chamber-sponsored Anti-Corruption Charter in Kazan, Russia on November 14, 2013.Russia: Regional Chambers of Commerce and IndustryPartnering with the Business Community to ImproveCompliance and Reduce CorruptionOne primary cause of corruption in Russia is not the absence of laws,but contradictions among federal, regional, and local laws, that arecompounded by poorly drafted or inconsistent laws. To address thisissue, CIPE has long worked with chambers of commerce and businessassociations to improve potentially problematic laws as they are drafted,examine gaps and weaknesses created by overlapping jurisdictions, andadvocate for legal reforms that clarify the operating environment forbusiness.In 2013, CIPE adopted a new approach, launching an initiative withregional chambers of commerce to train their staff to serve as anticorruptionresources to their member companies. The goal is to boostinvestment by bringing companies in Russian Special Economic Zonesinto compliance with anti-corruption standards now expected of allparticipants in global value chains:FFFTo begin the project, CIPE organized atraining seminar in Saratov for 31 legalspecialists from 12 chambers in Lipetsk,Novorossiysk, Samara, Tatarstan, andTyumen. The training seminar includedsessions on advocacy methods, techniquesto analyze draft legislation for corruptionpotential, and the accreditation process foranti-corruption experts.More than 70 entrepreneurs, anticorruptioncompliance experts fromRussian and international firms, lawenforcement officers, and chamberof commerce officials attended aconference supported by CIPE at theTatarstan Chamber in Kazan. Its topic:“Boosting Investment through ImprovedCompliance.”After this conference, a number ofcompliance specialists from leadingcompanies joined CIPE’s ComplianceAdvisory Board, which consults on theRussian training curriculum and providesoverall strategic direction for futureprograms.Ukraine: Regional Chambers ofCommerce and IndustryStrengthening the Voice of the BusinessCommunitySince the country’s independence, Ukraine’schambers of commerce and business associationshave faced challenges to effectively representtheir members’ interests to the governmentand articulate a shared national vision forpro-business reforms. In response, CIPE joineda wide range of chambers and associations inlaunching a program to build their capacityfor budgeting, financial management,communications, and advocacy. After providingthese diverse organizations with a sharedconceptual framework and a common toolsetto address the challenges their members face,CIPE’s partners began to seek a consensusaround policy change. By 2013, these chambersand associations have become a more effectivenational voice for reform, coordinating activitiesand seeking additional partners in civil society.12 CIPE Annual Report 2013

EurasiaFEATURED PROJECTSAmong other initiatives:FFFCIPE held a two-day forum on“Strengthening the Capacity andDevelopment Initiatives of BusinessAssociations in Ukraine” with theUkrainian Chamber of Commerceand Industry, as well as the NaumannFoundation. Attended by 120participants, the forum included sessionson effective management of businessassociations, membership retention,financial management, and cooperativeprogramming between businessassociations. Participants included 28 CIPEprogram alumni from across Ukraine andthe leaders of 18 regional chambers.With small grants from CIPE, fivepartner associations began interregionaladvocacy work on issues that includedsimplifying the regulatory environmentfor entrepreneurs, reducing corruption inprivatization, and streamlining regulatorypractices.In 2013, interest in CIPE’s trainingprogram for business associationexecutives reached an all-time high, atestament to its perceived value. Therewere nearly two applicants for each openspot.Graduates of CIPE’s training program forbusiness association executives, “StrengtheningCapacity of Business Associations in Ukraine,”display their certificates on the final day oftraining on April 25, 2013. From left to right:Oleksandr Borodynia (Kyiv), Elvira Faizullina(Kyiv), Vlad Bodnievych (Donetsk).CIPE at 30: RussiaAdvocacy for Reform to SupportSmall Business – 2002-2012CIPE began its work in Russia in 1989. In 2002, CIPE launched theUSAID-funded Small and Medium-Sized Enterprise (SME) PolicyAdvocacy project, which helped foster 17 regional coalitions ofchambers and associations. In all, these coalitions included 225organizations, representing nearly 19,000 firms with an estimated2.1 million employees. CIPE supported them with advocacy andcommunications skills training and helped them grow their membership,increasing their leverage.At the regional level, these coalitions conducted more than 220advocacy campaigns leading to 140 legislative changes. At the nationallevel, CIPE’s partners conducted 89 advocacy campaigns producing25 federal legislative changes. In addition, participating chambers andassociations protected an estimated 5,000 firms annually from arbitrarybureaucratic interference, thanks to tools such as legal aid hotlinesand information resources. This program marked the first time thatsustained public-private dialogue on economic issues occurred at thelocal level in Russia.The policy changes that these partners spearheaded produced thefollowing representative results:FFFFFThe Smolensk Coalition advocated that the tax rate applied toSMEs using the so-called “simplified” tax system be lowered. Thetax burden on over 13,000 small businesses was reduced from 15to 5 percent.The Kirov Coalition worked with the local prosecutor’s office tolimit the practice of refusing to grant plots of land for retail tradekiosks. Nine hundred kiosks and 2,700 jobs were saved.The Krasnodar Coalition advocated against a mayoral decree inSochi that would have dismantled 400 temporary retail locationsemploying 1,150 people. More than 300 sales outlets — and atotal of 800 jobs — were saved.In the Primorsk region, local officials used vague criteria todecide which SMEs could purchase their business premises frommunicipalities. Thanks to the efforts of the Primorsk Coalition,the government introduced objective criteria for approvingsuch applications. This change greatly expanded the number ofbusinesses eligible to apply for the program and led to a sharpincrease in approved applicants.The Volgograd Coalition advocated for amendments to theregional tax law on imputed income that reduced tax rates paidby small business in service industries.CIPE Annual Report 2013 13

CIPE’s April 2013 conference, Democracy thatDelivers for Entrepreneurs (DTDE), broughtmore than 100 participants from around theworld to Chicago to identify lessons learned,best practices, and institutions neededto build and sustain productive, inclusiveentrepreneurship ecosystems.DTDE provided a wealth of peer-learningand networking opportunities for theparticipants. CIPE kicked off the conferencewith a welcome event at 1871, theChicagoland Entrepreneurial Center’s hubfor startups. To highlight the pioneeringwork of its partners, CIPE presented RobinSitoula, executive director of Samriddhi,the Prosperity Foundation, with the CIPELeading Practices Award for developingnovel and easily replicable approaches toeducating entrepreneurs in Nepal. CIPE alsopresented Chandrima Padmanabhan withan award for her winning submission to theCIPE Youth Essay Competition. Her essayabout India sheds light on the importance ofentrepreneurship to promoting a competitivebusiness environment as well as strongdemocratic governance.Chairman of the Midwest for JPMorganChase Glenn Tilton opened the discussionsat the Chase Tower by arguing that ifcommunities wish to succeed in fosteringentrepreneurship they must “look for thedevelopment of hospitable ecosystems thatdrive innovation, creativity, as well as themarkets of opportunity.” CIPE’s long-timepartner and President of the Institute forLiberty and Democracy in Peru, Hernandode Soto, further emphasized the importanceof institutions to entrepreneurship, notingthat “what institutions do is allow you toget value — thoughts, trust, and the will tocome together. And that’s why I think it’s socontinued on page 17CIPE Best Practices award winner Robin Sitoula of Samriddhi, TheProsperity Foundation and CIPE Youth Essay Competition winnerChandrima Padmanabhan.Panelists discuss the type of environment necessary forentrepreneurs to thrive. From left to right: CIPE Deputy DirectorJean Rogers, co-founder of Transparency International MichaelHershman, Woodrow Wilson Center scholar Amy Wilkinson, andDirector-Treasurer of Transparency Venezuela Aurelio Concheso.14 CIPE Annual Report 2013

Strengthening the Environment forEntrepreneurship Around the WorldWoodrow Wilson Center scholar Amy Wilkinsondescribes the necessary preconditions forconstructing an entrepreneurship ecosystem.Chairman of the Midwest for JPMorgan Chase Glenn Tiltongives a welcoming keynote address on the importance of theinstitutional environment for entrepreneurs.CIPE partner and President of the Instituto Libertad yDemocracia (ILD) Hernando de Soto gives a keynoteaddress.CIPE Board Vice Chair Karen Kerrigan moderatesa panel on policy solutions and advocacy asmethods of fostering entrepreneurship.CIPE Annual Report 2013 15

SRAM Corporation Executive Vice President Frederick K. W. Dayand founder and President of Breakaway Technologies Betsy Shieldsdiscuss their personal entrepreneurial success stories.P@SHA President Jehan Ara and ChiefExecutive of the Kenya Associationof Manufacturers Betty Maina discusstechniques that small and medium-sizedenterprises can use to participate inpolicymaking.JPMorgan Chase Managing Director Laura Anderson, FormerSecretary of Finance for the Philippines Dr. Jesus P. Estanislao, CIPECommunications Director Caroline Scullin, CIPE Deputy DirectorJean Rogers, and CEO of Agrogate Egypt Osama Mourad at theconference welcome event at 1871.Kevin Willer of i2a Fund moderates a panelon investment in entrepreneurial initiatives.16 CIPE Annual Report 2013

Strengthening the Environment forEntrepreneurship Around the Worldcontinued from page 14important that entrepreneurship be backedby the appropriate institutions.”These opening remarks set the stagefor the conference to begin work inearnest. Successful local and internationalentrepreneurs, policy experts, local, state,and federal government representatives,academics, and CIPE partners from Egypt,Kenya, Lebanon, Nepal, Nigeria, Pakistan,Peru, the Philippines, and Venezuela sharedtheir knowledge and experiences on suchcrucial topics as education, access to finance,the role of mentors, and the importance ofthe regulatory environment.The impact of the conference lastedlong after the participants left Chicago.Encouraged by discussions at the conference,CIPE partner Samriddhi successfully adopteda crowdfunding model to supplement itsfunding. Another long-time CIPE partner, Dr.Jesus P. Estanislao, recipient of the Hernandode Soto Award for Democracy, appliedlessons learned in Chicago about improvinglocal governance to his work with Philippinemunicipalities. Other initiatives that resultedfrom the event included expanded activitiesduring the 2013 Global EntrepreneurshipWeek by CIPE partners in Pakistan, Lebanon,and Nepal, as well as interest in establishingan entrepreneurship hub in Pakistan similarto Chicagoland Entrepreneurial Center’s1871 facility.Conference materials available onlinecontinue to stimulate creative thinkingabout entrepreneurship. To date, nearly15,000 people have downloaded relatedCIPE articles, watched presentation videos,or read blog posts about the conference.Drawing on the discussions that took place,CIPE also developed and published a specialreport titled “Creating the Environment forEntrepreneurial Success,” thanks to supportfrom the Smith Richardson Foundation.On April 9, as part of the Democracy that Delivers forEntrepreneurs conference in Chicago, IL, CIPE awardedDr. Jesus P. Estanislao with its second Hernando de SotoAward for Democracy, presented by Hernando de Soto.The award recognizes Estanislao’s lifelongcontributions to democracy and economic freedomthrough his work improving governance in the publicand private sectors in the Philippines and his leadershipin guiding the country through the early years of itstransition to democracy as Secretary of Finance underPresident Corazon Aquino. Estanislao currently servesas Chairman of the Institute of Corporate Directors andthe Institute for Solidarity in Asia.The Hernando de Soto Award for Democracy celebratesextraordinary achievements in furthering economicfreedom, embodying the idea that democracy andeconomic freedom are interdependent. The award wasfirst given in 2009 to Hernando de Soto, CIPE’s firstpartner, for his contributions to understanding thenature of the informal sector and property rights inPeru and in countries around the world.From left to right: CIPE partner and President of the InstitutoLibertad y Democracia (ILD) Hernando de Soto; Former Secretaryof Finance for the Philippines and Hernando de Soto Award forDemocracy recipient Dr. Jesus P. Estanislao; CIPE Board Vice ChairKaren Kerrigan; CIPE Executive Director John D. Sullivan.CIPE Annual Report 2013 17

Latin America and the CaribbeanFEATURED PROJECTSGuatemala: National Economic Research CenterFostering Institutional Reform in GuatemalaIn Guatemala, weak democratic institutions limit the government’sability to develop and implement sound policies that deliver sustainableresults. Guatemala now lags behind much of the region in education,security, and economic performance. In 2013, CIPE partnered with theNational Economic Research Center (CIEN) to design and implementinstitutional reforms that improve the government’s ability to deliverservices to Guatemalans and put the country back on a competitivepath:FFF“Five in 5,” a CIENledgroup of youthorganizations promotingthe discussion of adevelopment agenda,finalized its proposals forimproving the quality ofeducation in Guatemalaat an event outside theMinistry of Education onJune 25, 2013.CIEN forged an unprecedented coalition — including threegovernment ministries (Economy, Education, and Culture), theTechnical Institute for Training and Productivity, and municipalleaders — to open two successful alternative youth educationcenters in Villa Canales and Villa Nueva. These two municipalitiesare among the most affected by violent crime in Guatemala.CIEN helped build greater consensus for change. It developed andpresented 14 position papers to journalists, policymakers, andthe general public, launched a completely remodeled website,and adopted social media to educate Guatemalans and promotegreater discussion of policies that promote long-term democraticand economic development. Through the media, these policypositions reached millions of Guatemalans.CIEN worked with the Ministry of Interior to eliminate excessivecosts and inefficiencies in procurement and bidding. It helped theministry identify potential savings of $21million and set a target of saving roughly$10.5 million in fiscal year 2013.Paraguay: Development inDemocracy FoundationInitiating a National Dialogue onPublic PolicyBecause strong patronage machines dominateParaguayan politics, there has been littleopportunity for public policy debates inelectoral campaigns. During Paraguay’s2013 campaign cycle, CIPE worked withthe Development in Democracy Foundation(DENDE) to identify what Paraguayanvoters were interested in knowing aboutthe economic proposals of the presidentialcandidates:FFFDENDE conducted a first-of-its-kindnationwide cell phone survey, gathering3,450 citizen responses to questions onthe economy and society and translatingthe responses into policy priorities.DENDE organized two presidentialdebates that were broadcast livenationwide on all seven public televisionstations and one cable channel, as wellas on 500 commercial and communityradio stations.More than 3.4 million Paraguayansviewed or listened to the presidentialdebates, and 71 percent of thosesurveyed said they were hearing thecandidates’ economic policy proposalsfor the first time. Nearly 400,000 votersconsidered changing their votes afterhearing the proposals.Candidates in Paraguay’s 2013 presidential election debatein an event organized by DENDE. From left to right: EfraínAlegre of the Paraguay Alegre Alliance, Miguel Carrizosa ofthe Patria Querida party, Mario Ferreiro of the Avanza Paísparty, and President Horacio Cartes of the Colorado Party.The panelists are Soledad Nuñez (from the NGO Techo),businessman Beltran Macchi, current Justice DepartmentMinister Sheila Abet, and Yan Speranza (from FundaciónMoises Bertoni). The moderator is Cristian Nielsen.18 CIPE Annual Report 2013

Latin America and the CaribbeanFEATURED PROJECTSCIPE at 30: PeruSetting the Stagefor Prosperity– 1984-2013This year marks the 30th anniversary ofCIPE’s first partnership — and one of itsmost successful — with Hernando de Sotoand his Institute for Liberty and Democracy(ILD) in Peru. For 30 years, CIPE and ILD havecombined forces to advocate for a modernmarket economy, removal of barriers thatimpede the formation and functioning ofbusinesses, and a robust rule of law. In Peru,successive governments have supportedfundamental ILD priorities and haveimplemented such important reforms asreducing the time needed to legally register abusiness from 300 days to less than one day.This change cut the cost of registration from$1,200 to $174 and led to the formalizationof more than 300,000 small businessesemploying more than half a million people.work, policymakers around the world — and especially in developingcountries, where the informal sector produces the bulk of economicactivity — understand the importance of making it simple to register abusiness and secure one’s property rights. In addition, the link betweeneconomic reform and democratic governance is now firmly integratedinto the work of major development organizations like the World Bank— which tracks impediments to business formation and formalizationthrough its widely-used Doing Business indicators.When combined with record commodityprices, the 200 reforms that ILD initiatedproduced exceptional economic results. Peru’seconomy grew more than that of any otherLatin American or Caribbean country from2000 to 2011. In recent years CIPE has alsosupported ILD’s work to strengthen free marketand democratic practices in the PeruvianAmazon, developing proposals to promotehigher participation by indigenous peoples inthe decision-making process.ILD’s efforts have not been confined toPeru. Over the past three decades, ILD hasprovided services to dozens of governmentsand implemented projects in every region ofthe world — most recently in the post-ArabSpring countries of the Middle East andNorth Africa. Thanks to de Soto’s pioneeringThe commercial district of Belén is located on the edge of Iquitos,where ILD trained 45 indigenous women entrepreneurs onbusiness planning, property rights, freedom of association, andbasic association governance.CIPE Annual Report 2013 19

Middle East and North AfricaFEATURED PROJECTSreform. These essential studies — the mostcomprehensive to date — pinpoint legal,regulatory, and policy deficiencies and offerspecific short-, medium-, and long-termsolutions. By identifying responsibilities forcarrying out these recommendations amongpolicymakers, the Syrian business community,and international constituencies, SEF took afirst step in developing an economic roadmapfor Syria’s future.Jordan: Young EntrepreneursAssociationMobilizing the Private Sector around aSmall and Medium Business AgendaCIPE and SEF staff with participants in SEF’sconference in Gaziantep, Turkey on the economicrevitalization of Syria in December 2013.Syria: Syrian Economic ForumDeveloping the Economic Foundation for Syrian Reliefand RecoveryAfter three years of conflict, the Syrian economy is in shambles, andthe business community is in a state of shock. To promote effectiveeconomic relief and lay the groundwork for eventual recovery, CIPEsupports the Syrian Economic Forum (SEF) — an independent thinktank founded by owners of small and medium-sized enterprises (SMEs)across Syria. SEF is dedicated to a free, pluralistic, and independentSyria grounded in a strong, inclusive economy. It has served as a crucialsource of fact-based analysis and economic policy for the democraticSyrian opposition:FFFAfter conducting a field survey in northern Syria, SEF produceda landmark damage and needs assessment of SMEs, detailingthe condition of factories and establishing priorities for relief andrecovery.SEF presented the assessment to leading members of theopposition, business leaders, and diplomats at a major conferencein Gaziantep, Turkey.From its Gaziantep headquarters, SEF has developed closerelationships with the Syrian business community, oppositionleadership, and other pro-democracy activists.SEF published five studies on high-priority sectors of the Syrian economywhere the conflict has intensified the need for relief, recovery, andThe Young Entrepreneurs Association (YEA)is a vibrant civil organization dedicated toimproving the environment for entrepreneursin Jordan and enhancing their globalcompetitiveness. YEA developed a Small andMedium Business Agenda (SMBA) as a wayto unify Jordan’s community of small andmedium-sized enterprises and mobilize it toseek reform through public-private dialogue.Following extensive stakeholder consultation,YEA convened a meeting of private sectorrepresentatives to prioritize the SMBA anddevelop specific, actionable legislative andregulatory reform proposals. Conducted withCIPE support, this work will form the basis fora YEA-led advocacy campaign:FFThe Jordan Enterprise DevelopmentCorporation endorsed the SMBA as thebasis for small business policy reformand the government’s emerging NationalStrategy for SME Development.In the process of consulting withstakeholders on the SMBA, YEA becamethe first local civil society organizationto conduct a well-organized, methodicalgrassroots outreach effort with theprivate sector across every governorateof Jordan. By reaching out to historicallydisenfranchised groups in underservedparts of the country, YEA has generatedan unprecedented level of excitementand engagement by local businessesin promoting a truly national reforminitiative.20 CIPE Annual Report 2013

Middle East and North AfricaFEATURED PROJECTSIraq: Assembly of Al-Inbithaqfor Development and EconomicDevelopmentAdvancing Reform with ProvincialBusiness AgendasSince 2008 CIPE has supported the ProvincialBusiness Agenda (PBA) process in Iraq, asystematic approach that has proven highlyeffective in engaging the private sector toidentify and advocate for economic reformwith government officials and legislatures.In 2012, the Assembly of Al-Inbithaq forDevelopment and Economic Development,Executive Director of the Assembly of Al-Inbithaq forDevelopment and Economic Development Maher MahmoodNasser discusses provincial issues following an advocacyroundtable for the Wasit Provincial Business Agenda.with CIPE assistance, spearheaded the creation of a PBA for WasitProvince, part of Iraq’s agricultural heartland and an important domestictransport corridor. Having mobilized support for the PBA, Al-Inbithaqled an advocacy campaign in 2013 to familiarize the Wasit provincialgovernment with PBA priorities and encourage it to implement neededreforms:Young Entrepreneurs Association (YEA)Chair Lina Hundaileh launches the SMEcommunity priorities for reform in remarksdelivered at YEA’s CIPE-supportedconference in Amman, Jordan.FFFThanks to the efforts of Al-Inbithaq, the Wasit Ministry ofIrrigation built earthen dams to protect crops from rains andfloods. It also opened a center to distribute more productiveseeds to local farmers and established fertilizer delivery centers,reducing transportation costs for Wasit farmers.Al-Inbithaq was invited to serve on the Wasit Planning andDevelopment Council and on a committee that the local Ministryof Science and Technology created to take a systematic approachto attracting investment.The Agricultural Directorate in Wasit raised relevant issues withthe Ministry of Agriculture in Baghdad, and a private investor ineducational institutions in Wasit organized a Civic Dialogue Forumin Baghdad to further promote PBA priorities. The Iraqi Ministryof Trade Inspector General praised the PBA and called for morecoordination among officials to implement the recommendations.CIPE Annual Report 2013 21

Middle East and North AfricaFEATURED PROJECTSCIPE at 30: EgyptGiving Voice to EgyptianPrivate Sector Associations– 1993-2013Since 1993, CIPE has encouraged the Egyptian private sector toparticipate in the democratic process, working with them to promotegovernmental and corporate transparency and to create conditionsfavorable to grassroots entrepreneurship. Throughout these programs,CIPE worked closely with the country’s first non-governmental,voluntary business associations, most notably the Federation ofEconomic Development Associations (FEDA), to strengthen theircapacity to advocate for reforms that truly broaden economicopportunity for Egyptians.In partnership with these associations, CIPE has played an activerole in raising awareness among Egyptian businesses about thenecessity of incorporating such values as disclosure, transparency, andaccountability into the governance of their enterprises. As part of thiseffort, CIPE worked hand in hand with the Arab Linguistic Institute todevelop the first term in Arabic for corporate governance: hawkamatash-sharikat.Additionally, a CIPE-initiated Egyptian corporategovernance code has served as a model for companies in Egypt andthroughout the Arab world.CIPE has also worked with its non-profit partners to build localcapacity for anti-corruption reform. A CIPE-supported effort toenshrine transparency and accountability in Egypt’s constitutionresulted in the inclusion of several importantprovisions on freedom of information in boththe 2012 and 2013 constitutions.CIPE has also worked with its non-profitcounterparts to remove barriers toentrepreneurship. CIPE and its partners havepursued a series of improvements to theregulatory environment, removing protectionistmeasures implemented under Egypt’scommand economy, and broadening accessto capital, including leading the effort tofound NILEX, Egypt’s stock exchange for smallbusinesses.By strengthening voluntary businessassociations, CIPE has promoted transparentand accountable corporate governance,raised awareness of alternatives to corruption,and encouraged entrepreneurship. In theseways, CIPE has fostered the ideal of an open,democratic government that supports theinstitutions of a free-market economy.Street vendors fromBeni Suef, Egypt, offerfeedback on a draftlaw governing streetvendors at a meetingheld by CIPE partnerthe Federation ofEconomic DevelopmentAssociations in May 2011.22 CIPE Annual Report 2013

South AsiaFEATURED PROJECTSNepal: Samriddhi, the ProsperityFoundationAdvancing Economic Policy DialogueCIPE and its long-term partner Samriddhi, theProsperity Foundation, launched the NepalEconomic Growth Agenda (NEGA) in 2012,which details policy recommendations forfive economic sectors: agriculture, education,hydropower, infrastructure, and tourism. In2013, Samriddhi followed up with a reporton crosscutting policy issues that affect thosesectors: state-owned enterprise reform,competitiveness, foreign direct investment,industrial relations, contract enforcement, andimproving the business climate. Samriddhi’sdetailed research and recommendations haveestablished the organization as Nepal’s leadingsource of expert, independent analysis —filling a critical gap — and created widespreadsupport for several of the proposed reforms.Samriddhi’s work has already producedgovernment action in a number of areas:FFFFSamriddhi prepared a list of budgetrecommendations for each of thefive sectors in NEGA. The final officialbudget document included a dozenpoints that closely reflect Samriddhirecommendations.The government acted on a NEGArecommendation to allocate 1.45 billionrupees ($14.5 million) to commercializeagriculture and trade by improvingagriculture production, processing, andmarketing.To improve tourism, Samriddhirecommended opening additionalmountain peaks for climbers; thegovernment recently agreed to open 23.The government also allocated funds todevelop tourist infrastructure in severalremote areas of the country, covering allfive development regions.The government formally adoptedSamriddhi’s recommendation that itcomplete transmission lines for six majorhydropower projects by 2018.Former finance minister from UCPN(M) Barsha Man Punspeaking at “Econ-ity,” a policy dialogue organized bySamriddhi, the Prosperity Foundation and the Society ofEconomic Journalists-Nepal held on October 6th, 2013 inKathmandu. The panel also included former finance ministersand the president of the Federations of Nepalese Chambers ofCommerce and Industry Suraj Vaidya.Afghanistan: Supporting Provincial CouncilsStrengthening Democratic DialogueAmong its initiatives in Afghanistan, CIPE assists the country’s provincialcouncils in building support for market economics and democraticgovernance. This year, CIPE conducted seminars for councils in 15 ofthe country’s 34 provinces on topics including corruption, democraticgovernance, business advocacy, and the informal economy. CIPE alsosupported the creation of working groups — composed of members ofthe provincial councils, local government officials, and business leaders— to address issues affecting local businesses and the economy:FIn addition to removing corrupt officials in the CustomsDepartment and stopping corruption in road construction, theNangarhar Provincial Council intervened in the bidding process ona major logistics contract for dorms at Nangarhar University. TheProvincial Council’s participation ensured a fair and transparentbidding process, resulting in savings of 11 million Afs ($200,000)over the previous year’s contract.CIPE Annual Report 2013 23

South AsiaFEATURED PROJECTSFFThe Kunduz Provincial Council worked with the provincialadministration to move forward on a stalled plan to establish acommercial township in Sherkhan Bandar at the Afghanistan-Tajikistan border. Council members are now working to establishan industrial park. They have completed administrative andtechnical plans and secured the necessary land.The Laghman Provincial Council focused its efforts on truckdrivers who bribe officials to allow them to travel on the highwaybetween Jalalabad and Kabul with overweight trucks, whichis banned as it damages the road. Members of the provincialcouncil raised the issue with the weigh station employees andurged consistent enforcement.Pakistan: Rawalpindi Chamber, Peshawar Women’sChamber of CommerceStrengthening the Role of Business in Democratic DialogueCIPE has long supported the active and transparent participation of thebusiness community in formulating policy, partnering with chambersof commerce, think tanks, women’s business organizations, and keystakeholders affected by weak corporate governance in state-ownedenterprises (SOEs). Among this year’s highlights were the following:FFFIn the run-up to the 2013 elections, thecountry’s political parties presented theireconomic platforms at the RawalpindiChamber’s annual conference. Thismarked the first time that Pakistan’sparties campaigned on specific policyideas. The business community is nowmonitoring the winners’ progress inimplementing these promises.The Peshawar Women’s Chamber ofCommerce in Khyber Pakhtunkhwaprovince (KPK) formed four stakeholdergroups, which together developed aset of recommendations that werepresented to the KPK government andits governor in July 2013. Executivecommittee members of the PeshawarWomen’s Chamber secured positions onseveral government initiative groups.The State Bank of Pakistan created afocus group to look at financial productsfor women.Panelists at the “Corporate Governance in Public Sector Enterprises” event on September 24, 2013 in Islamabadfrom right to left: Head of ACCA Pakistan Arif Masud Mirza, Chairman of the Technical Committee of Task Force onCorporate Governance Syed Asad Ali Shah, Project Officer Mohsin Ali Chaudhry, Chairman of the Pakistan Instituteof Corporate Governance M. Abdullah Yusuf, and Director General of the Ministry of Finance Economic Reform UnitDr. Khaqan Najeeb.24 CIPE Annual Report 2013

South AsiaFEATURED PROJECTSFFThe Women’s Commission in KPK,dormant since 2009, was reactivated tolook at laws, regulations, and policiesthat make it difficult for women toparticipate in the economic, social, andpolitical spheres.CIPE played a key role in conveningstakeholders who successfully advocatedfor the implementation of corporategovernance rules in Pakistan’s SOEs.More than 30 such key enterprises willnow have professional CEOs appointedby their boards, rather than chosen by agovernment committee.CIPE at 30: BangladeshPromoting theSustainability ofWomen’s BusinessAdvocacy – 2006-2012In 2006, CIPE began working with theBangladesh Women’s Chamber of Commerceand Industry (BWCCI) on a long-termcampaign to improve economic opportunitiesfor women. CIPE invests in the organization’sinstitutional development as well as itsadvocacy activities. The goal is to ensurethat BWCCI will be a lasting, self-sustainingprofessional organization, capable ofeffectively advancing policy reform.CIPE designed and conducted an extensiveseries of training programs for theBWCCI board and staff, which has had atransformative effect. The organization hasgrown from 300 members to more than 2,500,with branches in key areas across the country.It now earns enough from dues and otherrevenues to cover its operating costs and hasbeen able to set aside sufficient cash reservesto function without donor support.CIPE assisted BWCCI as it launched aWomen’s National Business Agenda(WNBA), which contained 30 concretepolicy recommendations. Once the WNBABWCCI members from Dhaka and other parts of Bangladeshwork together to set the agenda for a meeting of the WNBAcoalition in 2009.was complete, CIPE helped BWCCI develop strategies to facilitateits implementation. These efforts were instrumental in producingchange:F The country’s central bank, The Bangladesh Bank, issued acircular instructing all commercial banks and non-bank financialinstitutions to increase lending to women entrepreneurs.F The $23 million in loans disbursed to more than 3,000 womenentrepreneurs helped create an estimated 20,000 new jobs.F The proportion of women entrepreneurs receiving bank loansincreased to 50 percent in 2011, from 19 percent in 2007.F Sixty-five percent of banks have now dedicated desks forwomen borrowers, helping move women from microfinance tolarger loans from commercial banks.F To encourage entrepreneurship, the country’s Small andMedium Enterprise Foundation started training programsfor women on subjects including marketing, beauty parlormanagement, and fashion design.CIPE-supported initiatives have helped BWCCI to raise its profilesignificantly. It was named a member of the National Council forIndustrial Development, which includes enterprises across Bangladesh.Three of BWCCI’s officers have recently been appointed as directorsat major banks in Bangladesh, which will further enhance women’spresence in the financial sector.CIPE Annual Report 2013 25

GlobalFEATURED PROJECTSFFMaksim Karliuk from the BelarusianInstitute for Strategic Studies suggesteda new editorial system to his seniormanagers, including peer reviews ofresearch papers.At POPULI, a Bolivian think tank, SergioDaga helped shape the organization’sstrategic plan and redesigned theobjectives of his economic policydepartment to emphasize accountabilityand metrics.The fellowship enriched not just theparticipants and their home institutions butalso the host think tanks. As AmbassadorTerry Miller, director of the Center forInternational Trade and Economics at theHeritage Foundation, said, “We expected ourfellow to make a significant contribution toour understanding of Latin American politicaland economic issues. What we did not expectwas for him to become a leading advocatethroughout the region for economic freedom.”Think Tank LINKS Fellows meet with CIPE Deputy DirectorJean Rogers at the Fellowship kick-off event hosted at theDepartment of State (clockwise, from top left): Maksim Karliuk,Sergio Daga, and Sally Roshdy.Think Tank LINKS FellowshipEmpowering the Next Generation of Think Tank LeadersCIPE partnered with Atlas Corps to launch the Think Tank LINKS(Leaders, Innovators, and Knowledge Sharing) Fellowship for youngresearchers from developing countries. The fellowship funds a six-monthplacement at leading U.S. think tanks, where fellows gain professionaland leadership skills to bolster the research and policy advocacy work oftheir home institutions.Property Markets ScorecardBetter Property Rights and MoreCompetitive MarketsIn 2013, CIPE made extensive use of theInternational Property Markets Scorecard,produced through its partnership with theInternational Real Property Foundation.The scorecard is a tool for mapping andevaluating the institutional components ofproperty markets, such as property rights andappropriate regulations. CIPE worked closelywith local partners using the scorecard toidentify opportunities for reform and launchadvocacy campaigns to address these issues:The inaugural 2013 class brought fellows from Belarus, Bolivia, Egypt,and Syria to three think tanks in Washington, DC: the Cato Institute,the Heritage Foundation, and the Project on Middle East Democracy. Asmembers of established research teams, the fellows gained knowledgeof best practices in research as well as think tank management. Inaddition, they learned to share and communicate their policy ideasthrough blogs, articles, and media appearances. Upon returning, thefellows helped streamline their home think tank operations.FUniversal Access to Competitiveness andTrade — an affiliate of the PhilippineChamber of Commerce & Industry (PCCI)— facilitated faster computerizationof provincial land records and betterinter-agency coordination of servicesfor land administration and access tocredit. PCCI also signed a memorandumof understanding with the Departmentof Trade and Industry to streamline suchcooperation nationally.26 CIPE Annual Report 2013

GlobalFEATURED PROJECTSFFFFIn China, the Unirule Institute ofEconomics provided policy analysis andrecommendations on insecure land-userights in fast-growing cities, fosteringa more informed public discussion andsupplying fact-based arguments forreform.A campaign organized by theAssociation for Foreign Investment andCooperation led to more simplifiedprocedures for renting commercialproperty in Armenia. These changeslowered rental costs and improvedtenant protections.The Institute of Economic Affairs andthe Institution of Surveyors of Kenyaprovided input on proposed land laws,published a guidebook on propertytransactions, and organized workshopsto help small businesses better protecttheir property rights.CIPE created a website to share thescorecard’s findings and increaseawareness of the need for betterproperty rights and markets.CIPE at 30: Corporate GovernanceThe Key to TransparentBusinesses and Markets– 1991-2013Effective, ethical corporate governance is vitalto the integrity of business operations, but itssignificance extends beyond the boardroom.It strengthens both the rule of law anddemocratic governance. Weak corporategovernance, in turn, is linked to financialcollapse, low levels of investment, persistentcorruption, and weak property rights.CIPE has made improving corporategovernance one of its key priorities. It wasan early supporter of the global movementfor corporate governance standards, and in2004 helped the OECD revise its Principles ofCorporate Governance. CIPE has since workedto enhance education and tools for improvingcorporate governance standards:FFFFFwww.PropertyMarketsScorecard.comIn Egypt, CIPE helped draft the first national code of corporategovernance in Arabic and supported the process which createdthe Arabic phrase for corporate governance — hawkamatash-sharikat.CIPE worked with the Institute of Corporate Directors to create acorporate governance scorecard, which companies listed on thePhilippine Stock Exchange are required to use.CIPE’s work with the Russian Institute of Directors and theRussian Federal Commission for Securities Markets led to thedevelopment of Russia’s Corporate Governance Code, which ismandatory for all listed companies.Working with the Pakistan Institute of Corporate Governance andthe Institute of Chartered Accountants of Pakistan, CIPE helpedpublish the Corporate Governance Guide for Family-OwnedCompanies.With CIPE support, the Institute of Directors of Zambia developeda corporate governance code for SMEs, which was endorsed bythe Lusaka Stock Exchange.CIPE’s efforts to improve corporate governance in emerging markets arehelping the fight against corruption. With the growth of global valuechains, local suppliers and distributors must abide by the same goodgovernance and anti-corruption standards as large corporations — or elserisk losing business. CIPE is committed to helping companies of all sizesunderstand and apply global best practices and, in doing so, improvedemocratic governance and the business environment in their countries.CIPE Annual Report 2013 27

CIPEPROJECTSPartner ProjectsAFRICAETHIOPIAEthiopia Chamber of Commerceand Sectoral AssociationsStrengthening the Capacity ofBusiness AssociationsGHANAInstitute of Economic AffairsStrengthening the Voice of Ghana’sCivil Society in PolicymakingKENYAInstitute of Economic AffairsEmpowering Civil Society to Advocatefor Budget ReformsPromoting Transparency andAccountability in CountyGovernment BudgetsKenya Association ofManufacturersPromoting Local Governance ReformKenya National Alliance of StreetVendors and Informal TradersStrengthening the Voice of Micro andSmall-Scale EntrepreneursKenya Private Sector AllianceEnhancing Private Sector Participationin Constitutional ImplementationNIGERIALagos Chamber of Commerceand IndustryCombatting Corruption in PublicSector Regulatory AgenciesSENEGALUnion Nationale desCommerçants et Industriels duSenegalEmpowering Small and MediumEnterprises for ReformUGANDAKitara Heritage DevelopmentAgencyFostering Grassroots Private SectorParticipation in Uganda’s EnergyPolicyZIMBABWEZimbabwe National Chamber ofCommerceBuilding the Capacity of WomenBusiness Organizations to Advocatefor Public Policy ReformASIACAMBODIASilakaReducing Corruption in LocalGovernmentCambodian Federation ofEmployers and BusinessAssociationsStrengthening Private BusinessAssociationsCHINAEnabling Free and Open Debate inChinaProtecting Rural Women’s PropertyRightsImproving Local Governance andPromoting Public Policy DialogueProtecting Rural Property RightsImproving Transparency in LocalGovernmentsINDONESIAStrengthening Business AssociationGovernancePAPUA NEW GUINEAStrengthening Women’s EconomicEmpowerment through a WomenledChamber of CommercePHILIPPINESInstitute of Corporate DirectorsImproving Corporate Governance inPhilippine FirmsInstitute for Solidarity in AsiaImproving Public Governance in thePhilippinesTHAILANDThai Institute of DirectorsPrivate Sector Approaches toAnti-CorruptionEURASIAALBANIAAlbanian Center for EconomicResearchBuilding an Effective Public-PrivateDialogueAZERBAIJANEntrepreneurship DevelopmentFoundationBuilding Dialogue on EconomicReformFostering Youth Leadership onEconomic ReformKOSOVORiinvest Institute forDevelopment ResearchEnhancing Transparency andAccountability in Public ProcurementStrengthening Public Procurement andGovernanceKYRGYZSTANAssociation of MicrofinanceInstitutionsBusiness Leadership for ConstitutionalEconomic Reform28 CIPE Annual Report 2013

CIPEPROJECTSCorporate Governance SchoolStrengthening Corporate Governancein KyrgyzstanDevelopment Policy InstituteStrengthening Understanding ofEconomic IssuesMOLDOVAInstitute for Development andSocial InitiativesStrengthening Moldova’s ReformNetworkSERBIACenter for Liberal-DemocraticStudiesSerbian Association of ManagersStrengthening the Voice of BusinessTURKMENISTANUnion of EconomistsFostering EntrepreneurshipLATIN AMERICA ANDTHE CARIBBEANARGENTINACenter for the Implementationof Public PoliciesPromoting Equity and GrowthA Social Media Approach to YouthEngagementBOLIVIAConfederation of PrivateBusinesspeople of BoliviaDeveloping a Legislative Analysis Unitin the Bolivian Private Sector IIDeveloping a Legislative Analysis Unitin the Bolivian Private Sector IIIFundación MilenioCultivating an Informed DemocracyPOPULI Public Policies forLiberty & Fundación MilenioCultivating Policy Institutes to TackleKey Democratic and EconomicChallengesCOLOMBIAPolitical Science InstituteRegional Dialogue on DemocracyECUADOREcuadorian Institute of PoliticalEconomyEncouraging Youth Leadership,Democratic Values, andEntrepreneurshipGUATEMALANational Economic ResearchCenterFostering Institutional Reform inGuatemalaMEXICOThe Center of Research forDevelopmentDeveloping Public Policy Dialogue inMexicoPARAGUAYThe Foundation forDevelopment in DemocracyInitiating a National Dialogue on PublicPolicyPERUInstituto InvertirEmprendeAhora: Democracy,Entrepreneurship, and YouthLeadershipVENEZUELACenter for the Dissemination ofEconomic KnowledgeEnhancing Democratic Dialoguethrough Legislative and EconomicAnalysisMULTIREGIONALPARTNER PROJECTSCentre for Development andEnterpriseIdentifying Lessons in DemocraticDevelopment from EmergingEconomiesDemocracy Consensus Phase II:Synthesizing Lessons in DemocraticDevelopmentGLOBAL PROJECTSCreating the Environment forEntrepreneurial SuccessSmith Richardson FoundationEmpowering Women GloballyForum on Economic FreedomImproving DemocraticGovernance on the Local LevelAssessing Public-PrivateDialogue on TradeInternational Trade CentreKnowledge ManagementStrengthening Entrepreneurshipthrough Democratic InstitutionsStrengthening Property MarketInstitutions for Small Businesses:Phase IISupporting Young Think TankLeaders in Public Policy ReformsSupporting YouthEntrepreneurship andLeadershipCIPE Annual Report 2013 29

CIPEPROJECTSSupporting Youth Advocacy andLeadershipSupporting BusinessAssociations throughResponsible CorporateCitizenshipResources for Strengthening theCapacity of Reformers to BuildMarket-Oriented DemocraciesStrengthening Anti-CorruptionPractices in Global Value ChainsMIDDLE EAST ANDNORTH AFRICAREGIONALCenter for Democracy,Development, and the Ruleof Law at Stanford University& l’Institut arabe des chefsd’entreprisesEngaging MENA EntrepreneursALGERIACercle d’action et de réflexionautour de l’entreprisePrivate Sector Advocacy to IncreaseAlgerian Citizens’ Economic andCivic InclusionEGYPTFederation of EconomicDevelopment AssociationsExpanding Participation andOpportunity through Small andMedium-sized Enterprise PolicyReformJORDANYoung EntrepreneursAssociationAdvocacy for SME Policy ReformLEBANONDevelopment for People andNature AssociationExpanding Entrepreneurship Educationto the National LevelLebanese TransparencyAssociationStrengthening the Role of Law inLebanon through Rights EducationLebanese Center for PolicyStudiesEnhancing Democracy throughPublic-Private DialoguePALESTINIAN TERRITORIESPalestine Governance InstituteExpanding Corporate GovernanceCulture throughout the PalestinianPrivate SectorSYRIASyrian Economic ForumEmpowering the Business Communityto Engage in a Changing SyriaTUNISIAL’Institut arabe des chefsd’entreprisesEconomic Platform Developmentfor Political Parties and CapacityBuilding for Private Sector PoliticalDevelopmentYEMENHuman Rights Informationand Training Center, PoliticalDevelopment Forum, andStudies & EconomicMedia CenterSupporting Democratic Reformthrough Private Sector AdvocacyHuman Rights Information andTraining CenterDemocracy that Delivers throughEconomic and Political ReformEmpowering Citizens throughIncreased Economic EngagementPolitical Development ForumEnhancing Private Sector Participationin Constitutional TransitionEconomic Reform Platform BuildingStudies & Economic MediaCenterStrengthening the Voice of thePrivate SectorYouth Leadership DevelopmentFoundationSupporting Entrepreneurship and CivicEngagementSOUTH ASIAPAKISTAN AND AFGHANISTANPakistan-Afghanistan JointChamber of Commerce andIndustryNEPALSamriddhi, the ProsperityFoundationNepal Economic Growth AgendaStrengthening Democracy throughPolicy Advocacy30 CIPE Annual Report 2013

CIPEPROJECTSCapacity-Buildingand Training ProjectsAFRICACOTE D’IVOIREStrengthening the Voice of Small andMedium Enterprises for ReformLIBERIAEnhancing Public-Private DialogueMAURITANIAEmpowering Private SectorOrganizationsNIGERIAEnhancing the Participation ofNigerian Business Women inPolicy-MakingStrengthening the Voice of Businessin the North Central ZoneASIANo CIPE-led projectsEURASIARUSSIAFighting Corruption throughLegal ReformUKRAINEBuilding Advocacy MomentumLATIN AMERICA ANDTHE CARIBBEANStrengthening Business Associations inLatin AmericaMIDDLE EAST ANDNORTH AFRICABAHRAINAddressing Conflict throughEntrepreneurship and PrivateSector EngagementEGYPTFostering Dialogue on the Economy inDemocratic TransitionCombating Corruption & PromotingTransparencyIRAQAdvancing Private Sector Participationin Public PolicyLIBYAAdvocating a Private Sector Vision forLibya’s Democratic ReformsSAUDI ARABIAIncreasing Citizen Engagement withSaudi Chamber of CommerceSYRIAPreparing for Entrepreneurship inPost-Conflict SyriaTUNISIABuilding the Capacity of BusinessAssociations to Play an Active Rolein the Country’s DemocracyStrengthening Tunisia’s Political Partiesand Democratic TransitionSOUTH ASIAREGIONALBuilding a Regional Network ofWomen’s Business OrganizationsAFGHANISTANIncreasing Institutional Capacity andAccess to InformationPAKISTANPromoting Economic Reform throughBusiness AdvocacyPromoting Policy Reform throughBusiness AdvocacyCIPE Annual Report 2013 31

CIPEAREAS OF WORKCorporate Governance: CIPE works to build systemsof corporate governance, without which neither marketsnor democratic governance can prosper. CIPE initiates andsupports programs to reform laws and institutions, buildsupport for business ethics, and raise public awareness ofthe need for effective corporate governance practices.Legal and Regulatory Reform: CIPE’s National BusinessAgenda approach encourages the private sector to identifylaws and regulations that hinder business activity and offersrecommendations to remove barriers and improve theclimate for entrepreneurship.30 Years ofDemocratic & Economic ReformDemocratic Governance: CIPE works to createand strengthen institutions of accountability, increasepublic participation in government, reform governmentagencies, and strengthen judicial systems.Access to Information: CIPE works with local partnersto achieve greater transparency in government, anunrestricted voice for reformers, and a greater publicunderstanding of democratic, market-oriented principles.Combating Corruption: CIPE seeks to reformambiguous legal systems, implement standards forgovernment agencies, make a link between cultural normsand rule of law, and improve governance mechanisms.Business Association Development: CIPE supportsfreedom of association and grassroots participationof private sector organizations by providing executivemanagement courses and educational materials,assistance on advocacy strategies and organizationgovernance, and support for market-oriented memberservices.Women’s Issues: CIPE works to remove institutionaland cultural barriers to women’s participation in society.We view women’s empowerment through the prism ofbuilding linkages between educational, political, civic, andeconomic empowerment, where civil society organizations— especially women’s business associations — become aleading force to remove barriers and empower women toshape the future of their own countries.Youth: CIPE focuses on building skills throughentrepreneurship and management programs andsupporting associations that provide networking, services,and forums for young leaders.Informal Sector and Property Rights: CIPE and itspartners bridge the gap between the informal sector andthe formal economy by supporting the democratic voiceand participation of the informal sector, reforming businessregistration procedures, and strengthening private propertyrights.Entrepreneurship: CIPE’s programs around the worldhelp entrepreneurs to become a driving force for reform,by working together and making their voices heard in thepolicymaking process through business associations andchambers of commerce.32 CIPE Annual Report 2013

2013 Annual ReportFINANCIALSCIPE 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 partnershipwith local organizations, think tanks, and business organizations. CIPE provides management assistance, practicalexperience, and financial support to these types of organizations to strengthen their expertise while accomplishingkey development goals. CIPE’s staff of experts provides ongoing guidance and technical assistance.Funding SourcesPercent of all funds receivedNational Endowment for DemocracyUSAID6.4 U.S. Department of State4.8 British High Commission & Other1.5 CIPE Management & Private3.3 Field Office OverheadIndirectPolicy Advocacy &Knowledge Management74.2 14.8$18,556,843total expenditures in 2013Use of FundsPercent of all expenditures19 19 20.9 36.3Professional &Organizational DevelopmentPartnership ProgramsThrough diverse media and forums,CIPE fosters understanding of theideas and principles of democratic,market-oriented reform.Training and technical assistanceto enhance the capacity ofprivate sector organizations andimpart skills related to advocacyand CIPE program themes.Responding to proposals from local organizations,CIPE provides management assistance, practicalexperience, and financial support in the form ofgrants to strengthen expertise whileaccomplishing key development goals.Nearly all partnership projects funded through CIPE includematching funds to facilitate the program’s implementation. Thisallows CIPE to leverage the funds provided by the NED withfunds from partner organizations to maximize efforts tostrengthen democracy and market-driven reform.CIPE’s grants to partners are used to advance policy advocacy,business services, educational programs, and other developmentgoals. Most grants include communications and advocacycomponents to build policymakers’ support for reform. Grantsrange from full-scale programs with national business associationsand think tanks to integrated small grants that reachgrassroots organizations throughout a country. For a list ofprojects and partners, please visit our website at www.cipe.org.MatchingFunds33%Subgrant Payments67%CIPE Annual Report 2013 33

2013 Annual ReportFINANCIALSWHERE CIPE WORKS Business Association Development Legal & Regulatory ReformDemocratic Governance Women & Youth Access to InformationAnti-Corruption Corporate Governance Informal Sector & Property RightsTotal Program Expenditures by RegionLatin America & the CaribbeanMultiregionalField Office OverheadAfricaEurasia & Eastern EuropeAsia & South Asiaincludes AfghanistanMiddle East & North Africa0 $1 $2 $3 $4 $5million USD34 CIPE Annual Report 2013

2013 Annual ReportSTAFF LISTThomas J. Donohue PresidentMyron Brilliant Vice PresidentJohn D. Sullivan Executive DirectorSteven B. Rogers Deputy Director OperationsAndrew Wilson Deputy Director Programs and StrategicPlanningAfricaAbdulwahab Alkebsi Regional DirectorLars Benson Senior Program OfficerJulie Craig Program OfficerErica Poff Program OfficerHenry LaGue Program AssistantMiddle East and North AfricaAbdulwahab Alkebsi Regional DirectorGregory Simpson Deputy Regional DirectorBabak Yektafar Program OfficerPamela Beecroft Program OfficerStephen Rosenlund Program OfficerAli Ayadi Program OfficerJenna Mace Program OfficerJohn Zanikos Assistant Program OfficerBrandon Nickerson Program AssistantMatthew Godwin Program AssistantRogan Motis Program AssistantMargaret Bohlander Program AssistantRichard Chen Program AssistantPeako Jenkins Program AssistantAsiaJohn Callebaut Regional DirectorJohn Morrell Senior Program OfficerMichelle Chen Program AssistantEurasiaMarc Schleifer Regional DirectorNatalia Otel Belan Program OfficerFrank Brown Program OfficerRachel Grossman Assistant Program OfficerDavid Mack Assistant Program OfficerEmiliya Bagirova Program AssistantApril Snedeker Program AssistantAlexander Raevsky Head of OfficeNatalia Titova Program OfficerNataliya Balandina Head of OfficeZoia Tsybrova Project Manage rLatin America and the CaribbeanJohn Zemko Regional DirectorBrenton Ruth Program OfficerClaudia Hasbun Program CoordinatorLaura Boyette Program AssistantRanda Al Zoghbi Country DirectorLobna Afify Program OfficerMaha Hashem Senior Program CoordinatorTarek Youssef Information & Communication SpecialistAhmed Abol Azm Finance OfficerSeif El Khawanky Junior Program OfficerHazem Sami Information and Communication AssistantMohammed A. Mohammed AliCountry DirectorSouth AsiaMarc Schleifer Regional DirectorGregg Willhauck Program OfficerJennifer Anderson Program OfficerTimothy Wallace Assistant Program OfficerMohammad Nasib Country DirectorMohammad Naim Program DirectorLailuma Social Program ManagerSayed Muhibullah Hashmi Operations OfficerMohammad Ibrahim Hassan Program OfficerMatiullah Murad TrainerMoin Fudda Country DirectorHammad Siddiqui Deputy Country DirectorHuzaifa Shabbir Hussain Assistant Program ManagerMohammad Yasir Senior Finance and AdministrativeOfficerEmad Sohail Senior Program OfficerCIPE Annual Report 2013 35

2013 Annual ReportSTAFF LISTGlobal ProgramsAnna Nadgrodkiewicz Director Multiregional ProgramsMaiko Nakagaki Program OfficerFrank Stroker Assistant Program Officer GlobalCommunicationsCaroline L. Scullin Communications DirectorJonathan Custer Social Media CoordinatorAnna Dawson Editorial Communications AssistantKnowledge ManagementKim Bettcher, Ph.D. Senior Knowledge ManagerTeodora Mihaylova Research AssistantProgram Coordination UnitOksana Yoon Senior Program OfficerKristen Sutara Executive Assistant Programs and PCUCongressional and Government RelationsGregg Willhauck DirectorFinance, Grants and EvaluationMark Schultz Operations ManagerLascelles Haylett ControllerTabitha Wilson Grants ManagerViktoria Shalaginova Regional Finance OfficerTerrie Moody Information Management OfficerClaris Tetu-Atagwe Junior AccountantShaza Elmahdi Grants AssistantHuman ResourcesTamara Noel Human Resources ManagerAdministrationSyldeline Decker Bunting-Graden Executive AssistantPaulette Houston Executive AssistantRita Williams Office Coordinator36 CIPE Annual Report 2013

30 Years ofDemocratic & Economic ReformPrinted on recycled paper using vegetable-based inks and 100% wind power.

30 Years ofDemocratic & Economic ReformCenter for International Private Enterprise1155 15th Street NW, Suite 700 n Washington, DC 20005www.cipe.org n info@cipe.org38 CIPE Annual Report 2013